ribt20220630

ribt20220630_10q.htm

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒	QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2022

☐	TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number 001-36245

RiceBran Technologies

(Exact Name of Registrant as Specified in its Charter)

California

(State or other jurisdiction of

incorporation or organization)

87-0673375

(I.R.S. Employer Identification No.)

25420 Kuykendahl Rd., Suite B300

Tomball, TX

(Address of Principal Executive Offices)

77375

(Zip Code)

(281) 675-2421

(Registrant’s telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report

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

Title of each class		Trading symbol		Name of each exchange on which registered
Common Stock, no par value per share		RIBT		The NASDAQ Capital Market

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. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). 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, or an emerging company. See the definitions of “large accelerated filer”, “accelerated filer”, “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐	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 in Rule l2b-2 of the Exchange Act). Yes ☐ No ☒

As of August 11, 2022, there were 52,310,304 shares of common stock outstanding.

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RiceBran Technologies

Index

Form 10-Q

PART I. FINANCIAL INFORMATION			Page
	Item 1.	Financial Statements (Unaudited)	3
		Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 30, 2022 and 2021	3
		Condensed Consolidated Balance Sheets as of June 30, 2022, and December 31, 2021	4
		Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30, 2022 and 2021	5
		Notes to Unaudited Condensed Consolidated Financial Statements	6
	Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	16
	Item 3.	Quantitative and Qualitative Disclosures About Market Risk	17
	Item 4.	Controls and Procedures	18
PART II. OTHER INFORMATION
	Item 1.	Legal Proceedings	18
	Item 1A.	Risk Factors	18
	Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	18
	Item 3.	Defaults Upon Senior Securities	18
	Item 4.	Mine Safety Disclosures	18
	Item 5.	Other Information	18
	Item 6.	Exhibits	19
Signatures			20

Cautionary Note about Forward-Looking Statements

This quarterly report on Form 10-Q contains “forward-looking statements.” All statements other than statements of historical fact are “forward-looking statements” for purposes of federal and state securities laws, including, but not limited to, any projections of earnings, revenue, liquidity or other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements concerning proposed new services, products or developments; any statements regarding future economic conditions or performance; any statements of belief; and any statements of assumptions underlying any of the foregoing. Forward-looking statements may include the words “may,” “could,” “will,” “estimate,” “intend,” “continue,” “believe,” “expect” or “anticipate” or other similar words. The forward-looking statements contained herein reflect our current views with respect to future events and are subject to certain risks, uncertainties and assumptions. Actual results may differ materially from those projected in such forward-looking statements due to a number of factors, risks and uncertainties, including the factors that may affect future results set forth in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the year ended December 31, 2021. We disclaim any obligation to update any forward-looking statements as a result of developments occurring after the date of this quarterly report.

Unless the context requires otherwise, references to “we,” “us,” “our” and “the Company” refer to RiceBran Technologies and its consolidated subsidiaries.

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PART I. FINANCIAL INFORMATION

Item 1. Financial Statements.

RiceBran Technologies

Condensed Consolidated Statements of Operations

(Unaudited) (in thousands, except share and per share amounts)

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021

Revenues	$	10,190		$	7,574		$	20,749		$	16,179
Cost of goods sold		10,667			7,421			20,724			15,354
Gross profit (loss)		(477	)		153			25			825
Selling, general and administrative expenses		1,708			1,933			3,400			3,674
Loss (gain) on involuntary conversion of property and equipment		(147	)		(1	)		(147	)		6
Operating loss		(2,038	)		(1,779	)		(3,228	)		(2,855	)
Interest income		1			-			2			1
Interest expense		(118	)		(120	)		(244	)		(232	)
Change in fair value of derivative warrant liability		(417	)		-			(588	)		-
Gain on extinguishment of PPP loan		-			-			-			1,792
Other expense		(38	)		(24	)		(72	)		(37	)
Other income		1			-			5			-
Loss before income taxes		(2,609	)		(1,923	)		(4,125	)		(1,331	)
Income tax expense		(12	)		-			(12	)		(1	)
Net loss	$	(2,621	)	$	(1,923	)	$	(4,137	)	$	(1,332	)

Loss per common share:
Basic	$	(0.05	)	$	(0.04	)	$	(0.08	)	$	(0.03	)
Diluted	$	(0.05	)	$	(0.04	)	$	(0.08	)	$	(0.03	)

Weighted average number of shares outstanding:
Basic		52,861,638			45,864,385			52,696,717			45,749,785
Diluted		52,861,638			45,864,385			52,696,717			45,749,785

See Notes to Unaudited Condensed Consolidated Financial Statements

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RiceBran Technologies

Condensed Consolidated Balance Sheets

(Unaudited) (in thousands, except share amounts)

	June 30,			December 31,
	2022			2021
ASSETS
Current assets:
Cash and cash equivalents	$	5,124		$	5,825
Accounts receivable, net of allowance for doubtful accounts of $136 and $18		4,038			4,136
Inventories		2,312			2,444
Other current assets		1,227			810
Total current assets		12,701			13,215
Property and equipment, net		14,815			15,444
Operating lease right-of-use assets		1,956			2,127
Intangible assets		446			527
Total assets	$	29,918		$	31,313

LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable	$	1,368		$	826
Commodities payable		1,712			1,702
Accrued salary, wages and benefits		743			787
Accrued expenses		737			683
Operating lease liabilities, current portion		407			382
Due under bank line of credit		1,800			-
Due under factoring agreement		3,165			3,379
Due under insurance premium finance agreements		530			128
Finance lease liabilities, current portion		86			86
Long-term debt, current portion		1,251			1,183
Total current liabilities		11,799			9,156
Operating lease liabilities, less current portion		1,705			1,948
Finance lease liabilities, less current portion		109			100
Long-term debt, less current portion		708			1,356
Derivative warrant liability		846			258
Total liabilities		15,167			12,818
Commitments and contingencies
Shareholders' equity:
Preferred stock, 20,000,000 shares authorized: Series G, convertible, 3,000 shares authorized, stated value $150, 150 shares, issued and outstanding		75			75
Common stock, no par value, 150,000,000 shares authorized, 52,310,304 shares and 51,589,674 shares, issued and outstanding		326,672			326,279
Accumulated deficit		(311,996	)		(307,859	)
Total shareholders' equity		14,751			18,495
Total liabilities and shareholders' equity	$	29,918		$	31,313

See Notes to Unaudited Condensed Consolidated Financial Statements

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RiceBran Technologies

Condensed Consolidated Statements of Cash Flows

(Unaudited) (in thousands)

	Six Months Ended June 30,
	2022			2021
Cash flow from operating activities:
Net loss	$	(4,137	)	$	(1,332	)
Adjustments to reconcile net loss to net cash used in operating activities
Depreciation		1,046			1,219
Amortization		81			102
Stock and share-based compensation		393			548
Change in fair value derivative warrant liability		588			-
Loss (gain) on involuntary conversion of property and equipment		(147	)		6
Gain on extinguishment of PPP loan		-			(1,792	)
Provision for bad debts		118			-
Other		(32	)		15
Changes in operating assets and liabilities:
Accounts receivable		(20	)		262
Inventories		132			42
Accounts payable and accrued expenses		647			197
Commodities payable		10			44
Other		(417	)		(727	)
Net cash used in operating activities		(1,738	)		(1,416	)
Cash flows from investing activities:
Purchases of property and equipment		(421	)		(540	)
Proceeds from insurance on involuntary conversion		109			263
Net cash used in investing activities		(312	)		(277	)
Cash flows from financing activities:
Advances on factoring agreement		18,173			15,660
Payments on factoring agreement		(18,387	)		(15,685	)
Advances on bank line of credit		1,800			-
Advances on insurance premium finance agreements		794			962
Payments on insurance premium finance agreements		(392	)		(332	)
Payments on long-term debt and finance lease liabilities		(639	)		(336	)
Proceeds from common stock warrant exercises		-			171
Net cash provided by financing activities		1,349			440
Net change in cash and cash equivalents	$	(701	)	$	(1,253	)

Cash and cash equivalents, beginning of period	$	5,825		$	5,263
Cash and cash equivalents, end of period		5,124			4,010
Net change in cash and cash equivalents	$	(701	)	$	(1,253	)

Supplemental disclosures:
Cash paid for interest	$	229		$	179
Cash paid for income taxes	$	19		$	16

See Notes to Unaudited Condensed Consolidated Financial Statements

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RiceBran Technologies
Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 1. BASIS OF PRESENTATION

In the opinion of management, the accompanying unaudited condensed consolidated financial statements (interim financial statements) of RiceBran Technologies and its subsidiaries were prepared in accordance with accounting principles generally accepted in the United States of America (GAAP) and the rules and regulations of the Securities and Exchange Commission (the SEC) for reporting on Form 10-Q; therefore, they do not include all of the information and notes required by GAAP for complete financial statements. The interim financial statements contain all adjustments necessary to present fairly the interim results of operations, financial position and cash flows for the periods presented of a normal and recurring nature necessary to present fairly the interim results of operations, financial position and cash flows for the periods presented.

These interim financial statements should be read in conjunction with the consolidated audited financial statements and notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2021, which included all disclosures required by generally accepted accounting principles.

The results reported in these interim financial statements are not necessarily indicative of the results to be expected for the full fiscal year, or any other future period, and have been prepared based on the realization of assets and the satisfaction of liabilities in the normal course of business.

NOTE 2. BUSINESS

We are a specialty ingredient company focused on the development, production, and marketing of products derived from traditional and ancient small grains. We create and produce products utilizing proprietary processes to deliver improved nutrition, ease of use, and extended shelf-life, while addressing consumer demand for all natural, non-GMO and organic products. We believe our products can become valuable alternatives to traditional food ingredients.

Notably, we apply our proprietary technologies to convert raw rice bran into stabilized rice bran (SRB), and high value-added derivative products including: RiBalance, a rice bran nutritional package derived from SRB; RiSolubles, a nutritious, carbohydrate and lipid rich fraction of RiBalance; RiFiber, a fiber rich insoluble derivative of RiBalance and ProRyza, a rice bran protein-based product; and a variety of other valuable derivatives extracted from these core products.

In granular form, SRB is a food additive used in products for human and animal consumption. We believe SRB has certain qualities that make it more attractive than additives based on the by-products of other agricultural commodities, such as corn, soybeans, wheat, and yeast. Our SRB products and SRB derivatives support the production of healthy, natural, hypoallergenic, gluten free, and non-genetically modified ingredients and supplements for use in meats, baked goods, cereals, coatings, health foods, and high-end animal nutrition. Our target customers are food and animal nutrition manufacturers, wholesalers and retailers, both domestically and internationally.

We manufacture and distribute SRB from four locations: two facilities located within supplier-owned rice mills in Arbuckle and West Sacramento, California; one company-owned facility in Mermentau, Louisiana; and our own rice mill in Wynne, Arkansas. At our Dillon, Montana facility, we produce SRB-based products and derivatives through proprietary processes. Our rice mill in Wynne, Arkansas (Golden Ridge) supplies grades U.S. No. 1 and No. 2 premium long and medium white rice, and our grain processing facility in East Grand Forks, Minnesota (MGI) mills a variety of traditional, and ancient, small grains. Given the integrated nature of these facilities, we have one reporting unit and one operating segment, specialty ingredients.

NOTE 3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Recent accounting standards not yet adopted

The following discusses the accounting standard(s) not yet adopted that will, or are expected to, result in a significant change in practice and/or have a significant financial impact on our financial position, results of operations or cash flows.

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RiceBran Technologies
Notes to Unaudited Condensed Consolidated Financial Statements

In June 2016, the Financial Accounting Standards Board (FASB) issued guidance ASU No. 2016-13 Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments which changes the accounting for credit losses for certain instruments, including trade receivables, from an incurred loss method to a current expected loss method. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The guidance, and subsequent guidance related to the topic, is effective for our annual and interim periods beginning in 2023 and must be adopted on a modified retrospective approach through cumulative-effect adjustment to retained earnings as of January 1, 2023. Based on the nature of our current receivables and our credit loss history, we do not expect the adoption of the guidance to have a significant impact on our results of operations, financial position, or cash flows.

NOTE 4. CASH AND CASH EQUIVALENTS

As of June 30, 2022, we have $2.7 million of cash and cash equivalents invested in a money market fund with net assets invested in U.S. Dollar denominated money market securities of domestic and foreign issuers, U.S. Government securities and repurchase agreements. We consider all liquid investments with original maturities of three months or less at the time of purchase to be cash equivalents.

We have cash on deposit in excess of federally insured limits at a bank. We do not believe that maintaining substantially all such assets with the bank or investing in a liquid mutual fund represent material risks.

NOTE 5. ACCOUNTS RECEIVABLE AND REVENUES

Amounts billed and due from our customers are classified as accounts receivable on our consolidated balance sheets and require payment on a short-term basis. Invoices are generally issued at the point control transfers and substantially all of our invoices are due within 30 days or less, however certain customers have terms of up to 120 days. For substantially all of our contracts, control of the ordered product(s) transfers at our location. Periodically, we require payment prior to the point in time we recognize revenue. Amounts received from customers prior to revenue recognition on a contract are contract liabilities, are classified as customer prepayments liability on our consolidated balance sheets and are typically applied to an invoice within 30 days of the prepayment. Revenues in the three and six months ended June 30, 2022 and 2021, include $0.1 million, or less, in unearned revenue as of the end of the prior year.

Our accounts receivable potentially subject us to significant concentrations of credit risk. Revenues and accounts receivable from significant customers (customers with revenue or accounts receivable in excess of 10% of consolidated totals) are stated below as a percent of consolidated totals.

	Customer
	A			B			C
% of revenues, three months ended June 30, 2022		13	%		10	%		1	%
% of revenues, three months ended June 30, 2021		6	%		15	%		15	%

% of revenues, six months ended June 30, 2022		12	%		10	%		3	%
% of revenues, six months ended June 30, 2021		6	%		12	%		11	%

% of accounts receivable, as of June 30, 2022		8	%		9	%		1	%
% of accounts receivable, as of December 31, 2021		15	%		8	%		9	%

The following table presents revenues by geographic area shipped to (in thousands).

	Three Months Ended June 30				Six Months Ended June 30
	2022		2021		2022		2021
United States	$	9,912	$	7,221	$	20,158	$	15,417
Other countries		278		353		591		762
Revenues	$	10,190	$	7,574	$	20,749	$	16,179

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RiceBran Technologies
Notes to Unaudited Condensed Consolidated Financial Statements

NOTE 6. PROPERTY AND EQUIPMENT

The following table details the components of property and equipment (amounts in thousands).

	June 30,		December 31
	2022		2021		Estimated Useful Lives
Land	$	730	$	730
Furniture and fixtures		259		265	5	-	10 years
Plant		10,082		10,457	20	-	40 years, or life of lease
Computer and software		450		452	3	-	5 years
Leasehold improvements		1,838		1,828	4	-	15 years, or life of lease
Machinery and equipment		15,266		15,115	5	-	15 years
Property and equipment, cost		28,625		28,847
Less accumulated depreciation		13,810		13,403
Property and equipment, net	$	14,815	$	15,444

Amounts payable for property and equipment included in accounts payable totaled $0.1 million at June 30, 2022, and $0.2 million at December 31, 2021. Assets which had not yet been placed in service, included in property and equipment, totaled $0.8 million at June 30, 2022, and $0.9 million at December 31, 2021.

NOTE 7. LEASES

The components of lease expense and cash flows from leases (in thousands) follow.

	Three Months Ended June 30,				Six Months Ended June 30,
	2022		2021		2022		2021
Finance lease cost:
Amortization of right-of use assets, included in cost of goods sold	$	19	$	22	$	39	$	43
Interest on lease liabilities		3		3		5		6
Operating lease cost, included in selling, general and administrative expenses:
Fixed leases cost		129		128		258		257
Variable lease cost		40		37		86		75
Short-term lease cost		14		-		21		-
Total lease cost	$	205	$	190	$	409	$	381

Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from finance leases	$	3	$	3	$	5	$	6
Operating cash flows from operating leases	$	129	$	128	$	258	$	257
Financing cash flows from finance leases	$	22	$	24	$	46	$	50

As of June 30, 2022, variable lease payments do not depend on a rate or index. As of June 30, 2022, and December 31, 2021, property and equipment, net, includes $0.3 million and $0.2 million of finance lease right-of-use-assets, with an original cost of $0.5 million. During the three months and six months ended June 30, 2022, we financed the purchase of $0.1 million of property and equipment in noncash finance lease transactions. During the three months and six months ended June 30, 2021, we financed the purchase of less than $0.1 million of property and equipment in noncash finance lease transactions.

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RiceBran Technologies
Notes to Unaudited Condensed Consolidated Financial Statements

As of June 30, 2022, we do not believe it is certain that we will exercise any renewal options. The remaining terms of our leases and the discount rates used in the calculation of our lease liabilities as of June 30, 2022, follows.

	Operating Leases			Finance Leases
Remaining leases terms (in years)	1.3	-	10.7	0.3	-	4.9
Weighted average remaining lease terms (in years)			5.8			3.0
Discount rates	6.3%	-	9.0%	2.8%	-	9.0%
Weighted average discount rate			7.8%			5.9%

Maturities of lease liabilities as of June 30, 2022, follows (in thousands).

	Operating			Finance
	Leases			Leases
2022 (six months ended December 31, 2022)	$	244		$	74
2023		528			79
2024		429			38
2025		439			23
2026		451			20
Thereafter		578			5
Total lease payments		2,669			239
Amounts representing interest		(557	)		(44	)
Present value of lease obligations	$	2,112		$	195

NOTE 8. DEBT

We finance certain amounts owed for annual insurance premiums under financing agreements. As of June 30, 2022, amounts due under insurance premium financing agreements are due in monthly installments of principal and interest through March 2023, at interest rates of 3.5% to 3.9% per year.

We borrow under a factoring agreement with a lender, which provides a $7.0 million credit facility. We may only borrow to the extent we have qualifying accounts receivable as defined in the agreement. The facility had an initial two-year term and automatically renews for successive annual periods, unless proper termination notice is given. The facility term has automatically extended to October 2022. We paid a $0.2 million facility fee upon inception of the agreement which amortized to interest expense on a straight-line basis over the two years ending in October 2021. We incur recurring fees under the agreement, including a funding fee of 0.5% above the prime rate, in no event to be less than 5.5%, on any advances and a service fee on average net funds borrowed. The lender has the right to demand repayment of the advances at any time. The lender has a security interest in personal property assets.

Additional information related to our factoring obligation follows.

	Three Months Ended June 30,						Six Months Ended June 30,
	2022			2021			2022			2021
Average borrowings outstanding (in thousands)	$	3,131		$	1,564		$	2,977		$	1,223
Amortization of debt issuance costs (in thousands)	$	-		$	23		$	-		$	45
Interest paid, as a percentage of average outstanding borrowings		1.5	%		1.6	%		1.4	%		3.4	%
Fees paid, as a percentage of average outstanding borrowings		0.9	%		1.5	%		1.2	%		2.9	%

As of June 30, 2022, we had $1.8 million outstanding under a line of credit with a bank. The borrowing is secured by our cash on deposit with the bank and bears interest at prime (4.8% at June 30, 2022). There are no stipulated repayment terms for the line as long as we maintain sufficient cash collateral. Our borrowings under the line of credit averaged $0.1 million in the three months ended June 30, 2022, and less than $0.1 million for the six months ended June 30, 2022.

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RiceBran Technologies
Notes to Unaudited Condensed Consolidated Financial Statements

Long-term debt consists of the following (in thousands).

	June 30,		December 31,
	2022		2021
Mortgage promissory note - Originally dated July 2020 and modified in December 2021. As modified, interest accrues at an annual rate which is the greater of 7.0% above the lender's prime rate and 10.3% (11.8% at June 30, 2022) payable in monthly installments through December 2023. Net of $17 debt issuance costs at June 30, 2022.	$	1,906	$	2,469
Face amount $2.5 million. Interest accrued at the effective discount rate 11.5%. Secured by certain real property in Wynn, Arkansas.
Equipment note - Dated May 2021. Original principal $46. Due in monthly installments through June 2025.
Interest accrues at the effective discount rate of 3.6% per year.		28		33
Equipment note - Dated December 2019. Original principal $40. Due in monthly installments through December 2024.
Interest accrues at the effective discount rate of 9.3% per year.		22		26
Equipment notes - Initially recorded in November 2018, in an acquisition, at the present value of future payments using a discount rate of 4.8% per year. Due in monthly installments through August 2022.		3		11
Total long term debt, net	$	1,959	$	2,539

Future principal maturities of long-term debt outstanding as of June 30, 2022, follow (in thousands).

2022 (six months ended December 31, 2022)	$	620
2023		1,332
2024		19
2025		5
Principal maturities		1,976
Debt issuance costs		(17	)
Total long term debt, net	$	1,959

NOTE 9. EQUITY, SHARE-BASED COMPENSATION AND WARRANTS

A summary of equity activity follows (in thousands, except share amounts).

	Shares
	Preferred				Preferred		Common		Accumulated
	Series G		Common		Stock		Stock		Deficit			Equity
Balance, December 31, 2021		150		51,589,674	$	75	$	326,279	$	(307,859	)	$	18,495
Common stock awards under equity incentive plans		-		224,751		-		241		-			241
Common stock issued to vendor		-		6,000		-		5		-			5
Net income		-		-		-		-		(1,516	)		(1,516	)
Balance, March 31, 2022		150		51,820,425		75		326,525		(309,375	)		17,225
Common stock awards under equity incentive plans		-		483,879		-		146		-			146
Common stock issued to vendor		-		6,000		-		1		-			1
Net loss		-		-		-		-		(2,621	)		(2,621	)
Balance, June 30, 2022		150		52,310,304	$	75	$	326,672	$	(311,996	)	$	14,751

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RiceBran Technologies
Notes to Unaudited Condensed Consolidated Financial Statements

	Shares
	Preferred				Preferred		Common			Accumulated
	Series G		Common		Stock		Stock			Deficit			Equity
Balance, December 31, 2020		225		45,238,087	$	112	$	322,218		$	(298,910	)	$	23,420
Common stock awards under equity incentive plans		-		29,943		-		250			-			250
Common stock issued to vendor		-		6,000		-		3			-			3
Other		-		-		-		(3	)		-			(3	)
Net income		-		-		-		-			591			591
Balance, March 31, 2021		225		45,274,030		112		322,468			(298,319	)		24,261
Common stock awards under equity incentive plans		-		29,643		-		290			-			290
Common stock issued to vendor		-		6,000		-		5			-			5
Exercise of common stock warrants		-		177,936		-		171			-			171
Other		-		-		-		3			-			3
Net loss		-		-		-		-			(1,923	)		(1,923	)
Balance, June 30, 2021		225		45,487,609	$	112	$	322,937		$	(300,242	)	$	22,807

Share-based compensation by type of award follows (in thousands).

	Three Months Ended
	June 30, 2022		March 31, 2022
Stock options	$	21	$	29
Restricted stock units		125		212
Compensation expense related to common stock awards issued under equity incentive plan	$	146	$	241

In the three months ended June 30, 2022, holders forfeited options for the purchase of up to 44,547 shares of common stock (average $2.14 per share exercise price, average 6.8 years remaining life). In the three months ended March 31, 2022, holders forfeited options for the purchase of up to 9,703 shares of common stock (average $1.85 per share exercise price, average 7.7 years remaining life).

In the three months ended March 31, 2022, warrants for the purchase of up to 6,142,980 shares of common stock ($0.96 per share exercise price) expired.

Summaries of nonvested and vested restricted stock unit (RSU) activity follow.

	Number of RSUs			Unrecognized Stock Compensation (in thousands)			Weighted Average Expense Period (Years)
Nonvested at December 31, 2021		1,266,033		$	(658	)		0.9
Granted		370,000			(153	)		2.0
Forfeited		(10,000	)		7			0.7
Vested with Service		(224,751	)		-			0.0
Expensed		-			212
Nonvested at March 31, 2022		1,401,282			(592	)		0.9
Impact of Modification:
Before modification		(114,680	)		125
After modification		114,680			(60	)
Forfeited		(94,535	)		55			0.0
Vested with Service		(344,040	)		-			0.0
Expensed		-			125
Nonvested at June 30, 2022		962,707		$	(347	)		0.9

Table of Contents

RiceBran Technologies
Notes to Unaudited Condensed Consolidated Financial Statements

	Number of RSUs
Vested at December 31, 2021		865,052
Vested with Service		224,751
Issued at Vesting		(224,751	)
Vested at March 31, 2022		865,052
Vested with Service		344,040
Issued at Termination of Service		(483,879	)
Vested at June 30, 2022		725,213

Each RSU represents a contingent right to receive one share of common stock. The RSUs granted in the first three months of 2022 vest within two years of the grant. As of June 30, 2022, issuance of 725,213 shares of common stock subject to the vested RSUs is deferred to the date the holder is no longer providing service to our company.

In April 2022, we modified 114,680 RSUs held by resigning directors such that the awards vested on the date of their termination of service. Prior to the modification, the unvested RSUs would have been forfeited on the date of the resignations. As a result of the modifications, we adjusted cumulative expense on the RSUs to equal the fair value of the awards on the date of the April 28, 2022, modification ($0.52 per unit), in accordance with applicable accounting guidance.

In the three months ended June 30, 2022, we issued a total of

SEC Form 10-Q filed by RiceBran Technologies