Company Quick10K Filing
Quick10K
Agrofresh Solutions
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$1.56 51 $80
10-Q 2019-06-30 Quarter: 2019-06-30
10-Q 2019-03-31 Quarter: 2019-03-31
10-K 2018-12-31 Annual: 2018-12-31
10-Q 2018-09-30 Quarter: 2018-09-30
10-Q 2018-06-30 Quarter: 2018-06-30
10-Q 2018-03-31 Quarter: 2018-03-31
10-K 2017-12-31 Annual: 2017-12-31
10-Q 2017-09-30 Quarter: 2017-09-30
10-Q 2017-06-30 Quarter: 2017-06-30
10-Q 2017-03-31 Quarter: 2017-03-31
10-K 2016-12-31 Annual: 2016-12-31
10-Q 2016-09-30 Quarter: 2016-09-30
10-Q 2016-06-30 Quarter: 2016-06-30
10-Q 2016-03-31 Quarter: 2016-03-31
10-K 2015-12-31 Annual: 2015-12-31
10-Q 2015-09-30 Quarter: 2015-09-30
10-Q 2015-06-30 Quarter: 2015-06-30
10-Q 2015-03-31 Quarter: 2015-03-31
10-K 2014-12-31 Annual: 2014-12-31
10-Q 2014-09-30 Quarter: 2014-09-30
10-Q 2014-06-30 Quarter: 2014-06-30
10-Q 2014-03-31 Quarter: 2014-03-31
10-K 2013-12-31 Annual: 2013-12-31
8-K 2019-10-14 Other Events, Exhibits
8-K 2019-08-30 Officers, Exhibits
8-K 2019-08-08 Earnings, Exhibits
8-K 2019-06-05 Officers, Shareholder Vote, Exhibits
8-K 2019-03-31 Earnings, Exhibits
8-K 2019-02-01 Enter Agreement, Other Events, Exhibits
8-K 2018-12-31 Earnings, Exhibits
8-K 2018-11-07 Earnings, Exhibits
8-K 2018-10-22 Officers, Exhibits
8-K 2018-10-01 Regulation FD, Exhibits
8-K 2018-08-30 Officers, Other Events, Exhibits
8-K 2018-08-09 Earnings, Exhibits
8-K 2018-06-07 Shareholder Vote
8-K 2018-03-14 Earnings, Exhibits
8-K 2018-02-23 Officers
8-K 2018-01-18
FICO Fair Isaac 10,157
ETSY Etsy 6,439
RBA Ritchie Bros Auctioneers 4,314
BID Sotheby's 2,685
EXLS Exlservice Holdings 2,358
RECN Resources Connection 527
INWK Innerworkings 233
MMDM Modern Media Acquisition 122
NFC New Frontier 0
MFAC Megalith Financial Acquisition 0
AGFS 2019-06-30
Part I - Financial Information
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part Ii- Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. Defaults Upon Senior Securities
Item 4. Mine Safety Disclosures
Item 5. Other Information
Item 6. Exhibits
EX-31.1 agfs063019q2exhibit311.htm
EX-31.2 agfs063019q2exhibit312.htm
EX-32.1 agfs063019q2exhibit321.htm

Agrofresh Solutions Earnings 2019-06-30

AGFS 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2019
or
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number: 001-36316
AgroFresh Solutions, Inc.
(Exact Name of Registrant as Specified in Its Charter)
Delaware46-4007249
(State or other jurisdiction of incorporation)(IRS Employer Identification Number)
One Washington Square
510-530 Walnut Street, Suite 1350
Philadelphia, PA 19106
(Address of principal executive offices)
(267) 317-9139
(Registrant’s telephone number, including area code)


Securities registered pursuant to Section 12(b) of the Act:

Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.0001 per shareAGFSThe Nasdaq Stock Market LLC
Warrants, each warrant exercisable for one share of Common Stock at an exercise price of $11.50AGFSWThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. x Yes ¨ No

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (Section 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). x Yes ¨ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check one):

Large accelerated filer ☐
Accelerated filer
x
Non-accelerated filer ¨
Smaller reporting company
Emerging growth company





If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes x No
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
The number of shares of common stock outstanding as of August 1, 2019 was 51,442,695.




Table of Contents
TABLE OF CONTENTS
Page

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PART I - FINANCIAL INFORMATION
AgroFresh Solutions, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share data)
 June 30,
2019
December 31,
2018
ASSETS  
Current Assets:
Cash and cash equivalents$35,866 $34,852 
Accounts receivable, net of allowance for doubtful accounts of $2,603 and $2,336, respectively49,054 67,942 
Inventories24,914 24,807 
Other current assets15,316 15,608 
Total current assets125,150 143,209 
Property and equipment, net14,453 13,289 
Goodwill6,322 6,670 
Intangible assets, net688,452 711,967 
Deferred income tax assets9,193 7,332 
Other assets23,218 16,820 
TOTAL ASSETS$866,788 $899,287 
LIABILITIES AND STOCKHOLDERS’ EQUITY  
Current Liabilities:
Accounts payable$11,528 $7,530 
Current portion of long-term debt5,860 6,419 
Income taxes payable4,331 4,815 
Accrued expenses and other current liabilities41,646 45,340 
Total current liabilities63,365 64,104 
Long-term debt399,272 400,309 
Other noncurrent liabilities39,607 32,066 
Deferred income tax liabilities23,110 30,232 
Total liabilities525,354 526,711 
Commitments and contingencies (see Note 19)
Stockholders’ equity:  
Common stock, par value $0.0001; 400,000,000 shares authorized, 51,620,770 and 51,071,573 shares issued and 50,959,389 and 50,410,192 outstanding at June 30, 2019 and December 31, 2018, respectively5 5 
Preferred stock; par value $0.0001, 1 share authorized and outstanding  
Treasury stock; par value $0.0001, 661,381 shares at June 30, 2019 and December 31, 2018, respectively(3,885)(3,885)
Additional paid-in capital537,259 535,819 
Accumulated deficit(173,677)(138,789)
Accumulated other comprehensive loss(26,473)(28,837)
Total AgroFresh stockholders’ equity333,229 364,313 
Non-controlling interest8,205 8,263 
Total stockholders' equity341,434 372,576 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY$866,788 $899,287 

 See accompanying notes to unaudited condensed consolidated financial statements.
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AgroFresh Solutions, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share data)

Three Months Ended
June 30, 2019
Three Months Ended
June 30, 2018
Six Months Ended
June 30, 2019
Six Months Ended
June 30, 2018
Net sales$21,183 $18,420 $60,123 $56,771 
Cost of sales (excluding amortization, shown separately below)6,289 5,402 17,624 16,248 
Gross profit14,894 13,018 42,499 40,523 
Research and development expenses3,257 3,733 7,154 6,802 
Selling, general, and administrative expenses16,148 15,609 32,046 31,920 
Amortization of intangibles11,766 11,402 23,382 22,341 
Impairment of long lived assets992  992  
Change in fair value of contingent consideration167 98 357 236 
Operating loss(17,436)(17,824)(21,432)(20,776)
Other (expense) income(26)538 (38)608 
(Loss) gain on foreign currency exchange(2,519)3,272 (2,938)5,203 
Interest expense, net(8,670)(8,763)(17,415)(17,118)
Loss before income taxes(28,651)(22,777)(41,823)(32,083)
Benefit for income taxes(6,290)(4,375)(6,877)(805)
Net loss including non-controlling interests$(22,361)$(18,402)(34,946)(31,278)
Less: Net income attributable to non-controlling interests(92)(18)(58)73 
Net loss attributable to AgroFresh Solutions, Inc$(22,269)$(18,384)(34,888)(31,351)
Net loss per share:
Basic$(0.45)$(0.37)$(0.70)$(0.63)
Diluted$(0.45)$(0.37)$(0.70)$(0.63)
Weighted average shares outstanding:  
Basic50,146,513 49,864,822 50,094,822 49,814,744 
Diluted50,146,513 49,864,822 50,094,822 49,814,744 
 
See accompanying notes to unaudited condensed consolidated financial statements.

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AgroFresh Solutions, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS
(Unaudited)
(In thousands)

Three Months Ended
June 30, 2019
Three Months Ended
June 30, 2018
Six Months Ended
June 30, 2019
Six Months Ended
June 30, 2018
Net loss$(22,361)(18,402)$(34,946)(31,278)
Other comprehensive (loss) income: 
Unrealized gain on hedging activity, net of tax of $238 and $832, respectively— 843 — 2,970 
Recognition of gain on hedging activity reclassified to net loss, net of tax of $78 and $157, respectively(278)— (556)— 
Foreign currency translation adjustments7,223 (16,064)2,920 (13,035)
Comprehensive loss$(15,416)$(33,623)$(32,582)$(41,343)
 
See accompanying notes to unaudited condensed consolidated financial statements.

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AgroFresh Solutions, Inc.
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY
(Unaudited)
(In thousands, except share and per share data)

Preferred StockCommon StockTreasury StockAdditional Paid-in CapitalAccumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Non-Controlling InterestTotal
Stockholders’
Equity
SharesAmountSharesAmountAmount
Balances, December 31, 20181 $ 51,071,573 $5 $(3,885)$535,819 $(138,789)$(28,837)$8,263 $372,576 
Stock-based compensation— — — — — 1,440 — — $— $1,440 
Issuance of stock, net of forfeitures— — 549,197 — — — — — $— $— 
Comprehensive (loss) gain— — — — — — (34,888)2,364 $(58)$(32,582)
Balances, June 30, 20191 $ 51,620,770 $5 $(3,885)$537,259 $(173,677)$(26,473)$8,205 $341,434 


Preferred StockCommon StockTreasury StockAdditional Paid-in CapitalAccumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Non-Controlling InterestTotal
Stockholders’
Equity
SharesAmountSharesAmountAmount
Balances, March 31, 20191 $ 51,425,734 $5 $(3,885)$536,407 $(151,408)$(33,418)$8,297 $355,998 
Stock-based compensation— — — — — 852 — — $— $852 
Issuance of stock, net of forfeitures— — 195,036 — — — — — $— $— 
Comprehensive (loss) gain— — — — — — (22,269)6,945 $(92)$(15,416)
Balances, June 30, 20191 $ 51,620,770 $5 $(3,885)$537,259 $(173,677)$(26,473)$8,205 $341,434 


Preferred StockCommon StockTreasury StockAdditional Paid-in CapitalAccumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Non-Controlling InterestTotal
Stockholders’
Equity
SharesAmountSharesAmountAmount
Balances, December 31, 20171 $ 51,002,234 $5 $(3,885)$533,015 $(108,729)$(12,769)$8,443 $416,080 
Stock-based compensation— — — — — 1,740 — — $— $1,740 
Issuance of stock, net of forfeitures— — 146,109 — — — — — $— $— 
Comprehensive (loss) gain— — — — — — (31,351)(10,065)$73 $(41,343)
Balances, June 30, 20181 $ 51,148,343 $5 $(3,885)$534,755 $(140,080)$(22,834)$8,516 $376,477 


Preferred StockCommon StockTreasury StockAdditional Paid-in CapitalAccumulated
Deficit
Accumulated
Other
Comprehensive
Loss
Non-Controlling InterestTotal
Stockholders’
Equity
SharesAmountSharesAmountAmount
Balances, March 31, 20181 $ 51,055,747 $5 $(3,885)$533,524 $(121,696)$(7,613)$8,534 $408,869 
Stock-based compensation— — — — — 1,231 — — — 1,231 
Issuance of stock, net of forfeitures— — 92,596 — — — — — — — 
Comprehensive (loss) gain— — — — — — (18,384)(15,221)(18)(33,623)
Balances, June 30, 20181 $ 51,148,343 $5 $(3,885)$534,755 $(140,080)$(22,834)$8,516 $376,477 


See accompanying notes to unaudited condensed consolidated financial statements.

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AgroFresh Solutions, Inc.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(Unaudited)
(in thousands)Six Months Ended
June 30, 2019
Six Months Ended
June 30, 2018
Cash flows from operating activities:
Net loss$(34,946)$(31,278)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization24,336 22,953 
Provision for bad debts309 182 
Stock-based compensation 1,440 1,900 
Pension expense 64 
Impairment of intangible assets992  
Amortization of deferred financing costs1,409 1,214 
Interest income on interest rate swap(713) 
Accretion of contingent consideration1,772 2,043 
Change in fair value of contingent consideration357 236 
Deferred income taxes(8,203)(506)
Loss on sales of property31  
Other 114 
Changes in operating assets and liabilities:
Accounts receivable21,393 27,340 
Inventories(1,138)(5,083)
Prepaid expenses and other current assets(832)(8,152)
Accounts payable4,791 (7,300)
Accrued expenses and other liabilities(3,739)(8,434)
Income taxes payable(457)(1,216)
Other assets and liabilities(675)2,098 
Net cash provided by (used in) operating activities6,127 (3,825)
Cash flows from investing activities:
Cash paid for property and equipment(3,269)(2,327)
Asset Acquisition (1,587)
Other investments(250) 
Net cash used in investing activities(3,519)(3,914)
Cash flows from financing activities:
Payment of Dow liabilities settlement (10,000)
Repayment of long-term debt(2,805)(3,330)
Net cash used in financing activities(2,805)(13,330)
Effect of exchange rate changes on cash and cash equivalents and restricted cash1,737 (1,688)
Net increase (decrease) in cash and cash equivalents and restricted cash1,540 (22,757)
Cash and cash equivalents and restricted cash, beginning of period$34,852 $64,533 
Cash and cash equivalents and restricted cash, end of period$36,392 $41,776 
Supplemental disclosures of cash flow information:
Cash paid for:
Cash paid for interest$10,255 $15,777 
Cash paid for income taxes$2,230 $4,245 
Supplemental schedule of non-cash investing and financing activities:
Accrued purchases of property and equipment$52 $ 
Right of use assets obtained in exchange for new lease liabilities$296 $ 
Reconciliation of cash and cash equivalents and restricted cash:
Cash and cash equivalents$35,866 $41,776 
Restricted cash within other current assets526 
Total cash and cash equivalents and restricted cash36,392 41,776 

See accompanying notes to unaudited condensed consolidated financial statements.
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AgroFresh Solutions, Inc.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Description of Business

AgroFresh Solutions, Inc. (the “Company”) is a global leader in delivering innovative food preservation and waste reduction solutions for fresh produce. The Company is empowering the food industry with Smarter FreshnessTM, a range of integrated solutions designed to help growers, packers and retailers improve produce freshness and quality while reducing waste. The Company’s solutions range from near-harvest with HarvistaTM and LandSpringTM, to its marquee SmartFreshTM Quality System, which includes SmartFreshTM, FreshCloudTM and ActiMistTM, working together to maintain the quality of stored produce. The Company has a controlling interest in Tecnidex Fruit Protection, S.A.U. (“Tecnidex”), a leading provider of post-harvest fungicides, waxes, and sanitizers for the citrus market. Additionally, the Company’s initial retail solution, RipeLockTM, optimizes banana ripening for the benefit of retailers and consumers. The Company has key products registered in over 50 countries, supports approximately 3,900 direct customers and services over 25,000 storage rooms globally.

The end markets that the Company serves are seasonal and are generally aligned with the seasonal growing patterns of the Company’s customers. For those customers growing, harvesting or storing apples, the Company’s primary market, the peak season in the southern hemisphere is the first and second quarters of each year, while the peak season in the northern hemisphere is the third and fourth quarters of each year. Within each half-year period (i.e., January through June for the southern hemisphere, and July through December for the northern hemisphere) the apple growing season has historically occurred during both quarters. A variety of factors, including weather, may affect the timing of the growing, harvesting and storing patterns of the Company’s customers and therefore shift the consumption of the Company’s services and products between the first and second quarters primarily in the southern hemisphere or between the third and fourth quarters primarily in the northern hemisphere.

The Company was originally incorporated as Boulevard Acquisition Corp. (“Boulevard”), a blank check company, in Delaware on October 24, 2013, and was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination. On July 31, 2015, the Company completed a Business Combination (refer to Note 3) and changed its name to AgroFresh Solutions, Inc. Prior to consummation of the Business Combination, the Company’s efforts were limited to organizational activities, its initial public offering and related financings, and the search for suitable business acquisition transactions.

2. Basis of Presentation and Summary of Significant Accounting Policies

The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission. These financial statements include all adjustments that are necessary for a fair presentation of the Company's condensed consolidated results of operations, financial condition and cash flows for the periods shown, including normal, recurring accruals and other items. The condensed consolidated results of operations for the interim periods presented are not necessarily indicative of results for the full year. For additional information, these condensed consolidated financial statements should be read in conjunction with the consolidated and combined financial
statements and notes included in the Company’s Annual Report filed on Form 10-K for the year ended December 31, 2018.

Adoption of Highly Inflationary Accounting in Argentina

GAAP requires the use of highly inflationary accounting for countries whose cumulative three-year inflation rate exceeds 100 percent. The Company has been closely monitoring the inflation data and currency volatility in Argentina, where there are multiple data sources for measuring and reporting inflation. In the second quarter of 2018, the Argentine peso rapidly devalued relative to the U.S. dollar, which along with increased inflation, indicated that the three-year cumulative inflation rate in that country exceeded 100 percent as of June 30, 2018. As a result, the Company has elected to adopt highly inflationary accounting as of July 1, 2018 for its subsidiary in Argentina. Under highly inflationary accounting, the functional currency of the Company's subsidiary in Argentina became the U.S. dollar, and its income statement and balance sheet will be measured in U.S. dollars using both current and historical rates of exchange. The effect of changes in exchange rates on Argentine peso-denominated monetary assets and liabilities will be reflected in earnings. As of June 30, 2019, the Company’s subsidiary in Argentina had a net asset position of $7.5 million. Net sales attributable to Argentina were approximately 11% of the Company’s consolidated net sales for each of the six months ended June 30, 2019 and 2018.




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Disaggregation of Revenue

The Company disaggregates revenue from contracts with customers into geographic region, product and timing of transfer of goods and services. The Company determined that disaggregating revenue into these categories achieves the disclosure objective of depicting how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.
Revenues for the three months ended June 30, 2019
(in thousands)
RegionNorth America
(1)
EMEA
(2)
Latin America
(3)
Asia Pacific (4)Total Revenue
Product
1-MCP based$1,191 $3,412 $6,385 $5,300 $16,288 
Fungicides, waxes, coatings, sanitizers 3,621 695  4,316 
Other*177 224 103 75 579 
$1,368 $7,257 $7,183 $5,375 $21,183 
Pattern of Revenue Recognition
Products transferred at a point in time$1,286 $7,062 $7,140 $5,314 $20,802 
Services transferred over time82 195 43 61 381 
$1,368 $7,257 $7,183 $5,375 $21,183 

Revenues for the three months ended June 30, 2018
(in thousands)
RegionNorth America
(1)
EMEA
(2)
Latin America
(3)
Asia Pacific (4)Total Revenue
Product
1-MCP based$691 $4,040 $4,432 $4,688 $13,851 
Fungicides, waxes, coatings, sanitizers 3,345   3,345 
Other*284 191 90 659 1,224 
$975 $7,576 $4,522 $5,347 $18,420 
Pattern of Revenue Recognition
Products transferred at a point in time$943 $7,516 $4,501 $4,688 $17,648 
Services transferred over time32 60 21 659 772 
$975 $7,576 $4,522 $5,347 $18,420 


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Revenues for the six months ended June 30, 2019
(in thousands)
RegionNorth America
(1)
EMEA
(2)
Latin America
(3)
Asia Pacific (4)Total Revenue
Product
1-MCP based$3,358 $9,587 $25,824 $9,620 $48,389 
Fungicides, waxes, coatings, sanitizers 8,508 1260  9,768 
Other*735 842 273 116 1,966 
$4,093 $18,937 $27,357 $9,736 $60,123 
Pattern of Revenue Recognition
Products transferred at a point in time$3,576 $18,136 $27,284 $9,642 $58,638 
Services transferred over time517 801 73 94 1,485 
$4,093 $18,937 $27,357 $9,736 $60,123 

Revenues for the six months ended June 30, 2018
(in thousands)
RegionNorth America
(1)
EMEA
(2)
Latin America
(3)
Asia Pacific (4)Total Revenue
Product
1-MCP based$2,587 $9,163 $25,379 $9,081 $46,210 
Fungicides, waxes, coatings, biocides 8,932   8,932 
Other*383 279 207 760 1,629 
$2,970 $18,374 $25,586 $9,841 $56,771 
Pattern of Revenue Recognition
Products and equipment transferred at a point in time$2,925 $18,311 $25,560 $9,081 $55,877 
Services transferred over time45 63 26 760 894 
$2,970 $18,374 $25,586 $9,841 $56,771 
*Other includes FreshCloud, technical services and sales-type leases related to Tecnidex.

———————————————————————————————
(1)         North America includes the United States and Canada.
(2)          EMEA includes Europe, the Middle East, and Africa.
(3)          Latin America includes Argentina, Brazil, Chile, Costa Rica, Colombia, Dominican Republic, Ecuador, Guatemala, Mexico, Peru, and Uruguay.
(4)          Asia Pacific includes Australia, China, India, Japan, New Zealand, the Philippines, South Korea, Taiwan, and Thailand.

Contract Assets and Liabilities

ASC 606 requires an entity to present a revenue contract as a contract asset when the entity performs its obligations under the contract by transferring goods or services to a customer before the customer pays consideration or before payment is due. ASC 606 also requires an entity to present a revenue contract as a contract liability in instances when a customer pays consideration, or an entity has a right to an amount of consideration that is unconditional (e.g. receivable), before the entity transfers a good or service to the customer. The following table presents changes in the Company’s contract assets and liabilities during the six months ended June 30, 2019 and the twelve months ended December 31, 2018:

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(in thousands)Balance at
January 1, 2019
AdditionsDeductionsBalance at,
June 30, 2019
Contract assets:
     Unbilled revenue$1,956 $5,619 $(5,720)$1,855 
Contract liabilities:     
     Deferred revenue$1,280 $790 $(1,814)$