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Debt | 12 Months Ended
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Dec. 31, 2020
Debt [Abstract] |
Debt | 7. Debt The current terms and conditions of long-term debt outstanding at December 31, 2020 and 2019, are as follows:
|  | Interest ‎rate |  | Monthly ‎repayment |  | Maturity ‎date |  | 2020 |  | 2019
ACOA AIF grant |  | 0% |  | Royalties |  | — |  | $ | 2,253,595 |  | $ | 2,206,208
ACOA term loan#1 |  | 0% |  | C$3,120 |  | Feb 2027 |  |  | 181,203 |  |  | 184,583
ACOA term loan#2 |  | 0% |  | C$4,630 |  | Sept 2029 |  |  | 381,451 |  |  | 384,100
Kubota Canada Ltd |  | 0% |  | C$1,142 |  | Jan 2025 |  |  | 43,925 |  |  | 53,533
PEI Finance term loan |  | 4% |  | C$16,313 |  | Nov 2023 |  |  | 2,014,321 |  |  | 1,766,783
First Farmers Bank & Trust |  | 5.375% |  | $ 56,832 |  | Oct 2028 |  |  | 4,000,000 |  |  | —
Total debt |  |  |  |  |  |  |  | $ | 8,874,495 |  | $ | 4,595,207
less: debt issuance costs |  |  |  |  |  |  |  |  | (86,066) |  |  | —
less: current portion |  |  |  |  |  |  |  |  | (259,939) |  |  | (163,155)
Long-term debt |  |  |  |  |  |  |  | $ | 8,528,490 |  | $ | 4,432,052
Principal payments due on the long-term debt are as follows:
Year |  | AIF |  | ACOA |  | FPEI |  |  | Kubota |  |  | FFBT | Total
2021 |  |  |  | 72,977 |  | 76,915 |  |  | 10,757 |  |  | 116,675 | 277,324
2022 |  |  |  | 72,977 |  | 80,049 |  |  | 10,757 |  |  | 482,306 | 646,089
2023 |  |  |  | 72,977 |  | 1,857,357 |  |  | 10,757 |  |  | 509,256 | 2,450,347
2024 |  |  |  | 72,977 |  | — |  |  | 10,757 |  |  | 537,276 | 621,010
2025 |  |  |  | 72,977 |  | — |  |  | 897 |  |  | 567,735 | 641,609
Thereafter |  | 2,253,595 |  | 197,769 |  | — |  |  | — |  |  | 1,786,752 | 4,238,116
Total |  | 2,253,595 |  | 562,654 |  | 2,014,321 |  |  | 43,925 |  |  | 4,000,000 | 8,874,495
Atlantic Canada Opportunities Agency (“ACOA”) ACOA is a Canadian government agency that provides funding to support the development of businesses and promote employment in the Atlantic region of Canada. ACOA Atlantic Innovation Fund (“AIF”) Grant In January 2009, the Canadian Subsidiary was awarded an AIF grant from ACOA to provide a contribution towards the funding of a research and development project. Contributions under the grant were made through 2014 and no further funds are available. Amounts claimed by the Canadian Subsidiary must be repaid in the form of a 10% royalty on any products that are commercialized out of this research project until the loan is fully repaid. Revenue from the sale of AquAdvantage salmon are not subject to the royalty, and the Company does not expect to commercialize products that would be subject to the royalty in the next five years. ACOA term loans In February 2016, the Canadian Subsidiary executed an agreement with ACOA to partially finance the renovations to the Rollo Bay farm site. All available funding under the agreement was disbursed through May 2017, and no further amounts are available. The loan is being repaid over a period of nine year s. In November 2018, the Canadian Subsidiary executed a second agreement with ACOA to partially finance the renovations to the Rollo Bay site. All available funding under the agreement was disbursed through March 2019, and no further amounts are available. The loan term is nine year s with a zero percent interest rate. Repayments began in January 2020. In response to the COVID-19 pandemic, the Company was informed by Atlantic Canada Opportunities Agency (ACOA) on March 19, 2020, that all payments to the Canadian government would be deferred for three months, commencing April 1, 2020. On June 15, 2020, the Company was informed that payments would be deferred an additional three months, recommencing October 1, 2020. On October 14, 2020, the Company was informed that payments would continue to be deferred until further notice. Payments to ACOA resumed on January 1, 2021. Kubota Kubota is a manufacturer of power equipment for the construction, agriculture, commercial, and residential industries. In January 2018, the Canadian Subsidiary financed the purchase of equipment through a loan with Kubota. The total amount is being repaid in monthly installments. The loan is secured by the underlying equipment. Finance PEI (“FPEI”) FPEI is a corporation of the Ministry of Economic Development and Tourism for Prince Edward Island, Canada, and administers business financing programs for the provincial government. In August 2016, the Canadian Subsidiary obtained a loan from FPEI to partially finance the purchase of the assets of the former Atlantic Sea Smolt plant in Rollo Bay West on Prince Edward Island. In 2018, the Canadian Subsidiary obtained a new loan from FPEI, which incorporates the existing loan and provides C$2.0 million ($1.5 million) of additional funds. As of December 31, 2019, C$1.7 million ($1.3 million) had been drawn down. The final C$300 thousand ($230 thousand) was drawn down on April 23, 2020. Repayment commenced in 2019. The loan has an interest rate of 4% and is collateralized by a mortgage executed by the Canadian Subsidiary, which conveys a first security interest in all of its current and acquired assets. The loan is guaranteed by the Parent. On March 24, 2020, the Company was informed by FPEI that all payments would be deferred for three months due to the COVID-19 pandemic. Payments on the loan resumed on August 1, 2020. First Farmers Bank & Trust (“FFBT”) On July 31, 2020, the Company’s Indiana Subsidiary obtained a $4.0 million loan from First Farmers Bank and Trust. Net proceeds were $3.9 million after deducting $90 thousand in loan costs. The loan bears interest at a rate of 5.375% for the first five year s. On July 31, 2025, the interest rate resets to the then U.S. Treasury 5-year maturities rate plus 5% and remains fixed at that rate through maturity on October 1, 2028. The note requires interest only payments for the first 13 months, followed by monthly principal and interest payments of approximately $57 thousand through maturity. Proceeds from the loan may be used for the purpose of performing equipment upgrades, purchasing equipment and other improvements to the Indiana farm. The Company must comply with certain financial and non-financial covenants and at December 31, 2020, the Company was in compliance. The loan is also subject to certain prepayment penalties and is secured by the assets of the Indiana subsidiary and a guarantee by the Parent. The loan agreement requires the Company to maintain a $500 thousand minimum cash balance with the bank throughout the loan term. This amount is reflected as restricted cash on the balance sheet. Department of Fisheries and Oceans (“DFO”) DFO is a department of the government of Canada responsible for safeguarding its waters and managing its fisheries, oceans and freshwater resources. DFO supports economic growth in the marine and fisheries sectors, and innovation in areas such as aquaculture and biotechnology. In September 2020, the Canadian Subsidiary entered into a Contribution Agreement with DFO's Atlantic Fisheries Fund, whereby it is eligible to receive up to C$1.9 million ($1.4 million) to finance new equipment for its Rollo Bay farm. As of December 31, 2020, the Canadian Subsidiary had not drawn down any of the funds available under the agreement. Any borrowings under the agreement are interest free and monthly repayments of any borrowed amounts commence in March 2023, with maturity in September 2029. The Company recognized interest expense in 2020 of $152 thousand (2019: $62 thousand; 2018: $22 thousand) on its interest-bearing debt.

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- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
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