lmnr-20220131
false2022Q10001342423October 31http://www.limoneira.com/20220131#AgribusinessMemberhttp://www.limoneira.com/20220131#AgribusinessMemberhttp://www.limoneira.com/20220131#AgribusinessMemberhttp://www.limoneira.com/20220131#AgribusinessMemberP1Yhttp://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherAssetsNoncurrenthttp://fasb.org/us-gaap/2021-01-31#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#AccruedLiabilitiesCurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrenthttp://fasb.org/us-gaap/2021-01-31#OtherLiabilitiesNoncurrentP5YP2YP3YP5Y00013424232021-11-012022-01-3100013424232022-02-28xbrli:shares00013424232022-01-31iso4217:USD00013424232021-10-310001342423us-gaap:SeriesBPreferredStockMember2022-01-31iso4217:USDxbrli:shares0001342423us-gaap:SeriesBPreferredStockMember2021-10-310001342423us-gaap:SeriesBPreferredStockMember2020-11-012021-10-31xbrli:pure0001342423us-gaap:SeriesBPreferredStockMember2021-11-012022-01-310001342423lmnr:SeriesB2PreferredStockMember2021-10-310001342423lmnr:SeriesB2PreferredStockMember2022-01-310001342423lmnr:SeriesB2PreferredStockMember2021-11-012022-01-310001342423lmnr:SeriesB2PreferredStockMember2020-11-012021-10-310001342423lmnr:SeriesAJuniorParticipatingPreferredStockMember2022-01-310001342423lmnr:SeriesAJuniorParticipatingPreferredStockMember2021-10-3100013424232020-11-012021-01-310001342423us-gaap:CommonStockMember2021-10-310001342423us-gaap:AdditionalPaidInCapitalMember2021-10-310001342423us-gaap:RetainedEarningsMember2021-10-310001342423us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-10-310001342423us-gaap:TreasuryStockCommonMember2021-10-310001342423us-gaap:NoncontrollingInterestMember2021-10-310001342423us-gaap:RetainedEarningsMember2021-11-012022-01-310001342423us-gaap:RetainedEarningsMemberus-gaap:SeriesBPreferredStockMember2021-11-012022-01-310001342423us-gaap:RetainedEarningsMemberlmnr:SeriesB2PreferredStockMember2021-11-012022-01-310001342423us-gaap:CommonStockMember2021-11-012022-01-310001342423us-gaap:AdditionalPaidInCapitalMember2021-11-012022-01-310001342423us-gaap:NoncontrollingInterestMember2021-11-012022-01-310001342423us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-11-012022-01-310001342423us-gaap:CommonStockMember2022-01-310001342423us-gaap:AdditionalPaidInCapitalMember2022-01-310001342423us-gaap:RetainedEarningsMember2022-01-310001342423us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-310001342423us-gaap:TreasuryStockCommonMember2022-01-310001342423us-gaap:NoncontrollingInterestMember2022-01-310001342423us-gaap:CommonStockMember2020-10-310001342423us-gaap:AdditionalPaidInCapitalMember2020-10-310001342423us-gaap:RetainedEarningsMember2020-10-310001342423us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-10-310001342423us-gaap:TreasuryStockCommonMember2020-10-310001342423us-gaap:NoncontrollingInterestMember2020-10-3100013424232020-10-310001342423us-gaap:SeriesBPreferredStockMember2020-10-310001342423lmnr:SeriesB2PreferredStockMember2020-10-310001342423us-gaap:RetainedEarningsMember2020-11-012021-01-310001342423us-gaap:SeriesBPreferredStockMember2020-11-012021-01-310001342423us-gaap:RetainedEarningsMemberus-gaap:SeriesBPreferredStockMember2020-11-012021-01-310001342423lmnr:SeriesB2PreferredStockMember2020-11-012021-01-310001342423us-gaap:RetainedEarningsMemberlmnr:SeriesB2PreferredStockMember2020-11-012021-01-310001342423us-gaap:CommonStockMember2020-11-012021-01-310001342423us-gaap:AdditionalPaidInCapitalMember2020-11-012021-01-310001342423us-gaap:NoncontrollingInterestMember2020-11-012021-01-310001342423us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-11-012021-01-310001342423us-gaap:CommonStockMember2021-01-310001342423us-gaap:AdditionalPaidInCapitalMember2021-01-310001342423us-gaap:RetainedEarningsMember2021-01-310001342423us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-310001342423us-gaap:TreasuryStockCommonMember2021-01-310001342423us-gaap:NoncontrollingInterestMember2021-01-3100013424232021-01-310001342423us-gaap:SeriesBPreferredStockMember2021-01-310001342423lmnr:SeriesB2PreferredStockMember2021-01-310001342423us-gaap:AccumulatedTranslationAdjustmentMember2021-11-012022-01-310001342423us-gaap:AccumulatedTranslationAdjustmentMember2020-11-012021-01-310001342423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-11-012022-01-310001342423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-11-012021-01-310001342423us-gaap:AccumulatedTranslationAdjustmentMember2021-10-310001342423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-10-310001342423us-gaap:AccumulatedTranslationAdjustmentMember2022-01-310001342423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2022-01-310001342423us-gaap:AccumulatedTranslationAdjustmentMember2020-10-310001342423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-10-310001342423us-gaap:AccumulatedTranslationAdjustmentMember2021-01-310001342423us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-310001342423lmnr:FirstCustomerMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-11-012022-01-310001342423lmnr:SecondCustomerMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2021-11-012022-01-310001342423lmnr:FirstCustomerMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:SalesRevenueNetMember2020-11-012021-01-310001342423lmnr:FirstCustomerMemberus-gaap:CustomerConcentrationRiskMemberus-gaap:AccountsReceivableMember2021-11-012022-01-310001342423us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueProductLineMemberlmnr:LemonMember2021-11-012022-01-310001342423us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueProductLineMemberlmnr:LemonMember2020-11-012021-01-310001342423us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueProductLineMemberlmnr:LemonMemberlmnr:OneThirdPartyGrowerMember2021-11-012022-01-310001342423us-gaap:SupplierConcentrationRiskMemberus-gaap:SalesRevenueProductLineMemberlmnr:LemonMemberlmnr:OneThirdPartyGrowerMember2020-11-012021-01-310001342423lmnr:SanPabloSpAAndPanDeAzucarMembercountry:CL2021-11-012022-01-310001342423lmnr:SanPabloSpAAndPanDeAzucarMembercountry:CL2020-11-012021-01-310001342423lmnr:TrapaniFreshMembercountry:AR2021-11-012022-01-310001342423lmnr:TrapaniFreshMembercountry:AR2020-11-012021-01-310001342423lmnr:EastAreaIRetainedPropertyMember2022-01-310001342423lmnr:EastAreaIRetainedPropertyMember2021-10-310001342423lmnr:EastAreaTwoMember2022-01-310001342423lmnr:EastAreaTwoMember2021-10-310001342423lmnr:EastAreaOneAndTwoMember2005-10-31lmnr:propertyutr:acre0001342423lmnr:EastAreaOneMemberlmnr:LewisGroupOfCompaniesMember2015-11-100001342423srt:AffiliatedEntityMemberlmnr:LimoneiraLewisCommunityBuildersLLCBOrJointVentureMember2022-01-310001342423srt:AffiliatedEntityMemberlmnr:LimoneiraLewisCommunityBuildersLLCBOrJointVentureMember2021-10-310001342423lmnr:UnsecuredLineOfCreditLoanAgreementAndPromissoryNoteMemberlmnr:LimoneiraLewisCommunityBuildersLLCBOrJointVentureMember2018-01-310001342423lmnr:UnsecuredLineOfCreditLoanAgreementAndPromissoryNoteMemberlmnr:LimoneiraLewisCommunityBuildersLLCBOrJointVentureMemberus-gaap:LondonInterbankOfferedRateLIBORMember2018-01-012018-01-310001342423lmnr:UnsecuredLineOfCreditLoanAgreementAndPromissoryNoteMemberlmnr:LimoneiraLewisCommunityBuildersLLCBOrJointVentureMember2022-01-310001342423lmnr:UnsecuredLineOfCreditLoanAgreementAndPromissoryNoteMember2022-01-310001342423lmnr:LimoneiraLewisCommunityBuildersLLCBOrJointVentureMember2022-01-31lmnr:residentialUnit0001342423lmnr:SevillaMembersrt:ScenarioForecastMemberus-gaap:DisposalGroupNotDiscontinuedOperationsMember2022-07-310001342423lmnr:SevillaMembersrt:ScenarioForecastMemberus-gaap:DisposalGroupNotDiscontinuedOperationsMember2022-05-012022-07-310001342423lmnr:CentennialPropertyMember2017-12-310001342423lmnr:CentennialPropertyMember2017-12-012017-12-310001342423lmnr:CentennialPropertyMember2017-12-012021-10-310001342423lmnr:CentennialPropertyMember2021-11-012021-11-300001342423lmnr:CentennialPropertyMember2021-11-300001342423lmnr:CentennialPropertyMembersrt:ScenarioForecastMember2022-09-302022-09-300001342423lmnr:CentennialPropertyMember2022-01-310001342423lmnr:LimoneiraLewisCommunityBuildersLlcAgreementMember2022-01-310001342423lmnr:LimoneiraLewisCommunityBuildersLlcAgreementMember2021-10-310001342423lmnr:LimcoDelMarLimitedMember2022-01-310001342423lmnr:LimcoDelMarLimitedMember2021-10-310001342423lmnr:RosalesMember2022-01-310001342423lmnr:RosalesMember2021-10-310001342423lmnr:RomneyPropertyPartnershipMember2022-01-310001342423lmnr:RomneyPropertyPartnershipMember2021-10-310001342423lmnr:RosalesMemberlmnr:RosalesMember2022-01-310001342423lmnr:RosalesMemberlmnr:RosalesMember2021-10-310001342423us-gaap:TrademarksAndTradeNamesMember2022-01-310001342423us-gaap:TrademarksAndTradeNamesMember2021-11-012022-01-310001342423us-gaap:TrademarksAndTradeNamesMember2021-10-310001342423us-gaap:TrademarksAndTradeNamesMember2020-11-012021-10-310001342423us-gaap:CustomerRelationshipsMember2022-01-310001342423us-gaap:CustomerRelationshipsMember2021-11-012022-01-310001342423us-gaap:CustomerRelationshipsMember2021-10-310001342423us-gaap:CustomerRelationshipsMember2020-11-012021-10-310001342423us-gaap:NoncompeteAgreementsMember2022-01-310001342423us-gaap:NoncompeteAgreementsMember2021-11-012022-01-310001342423us-gaap:NoncompeteAgreementsMember2021-10-310001342423us-gaap:NoncompeteAgreementsMember2020-11-012021-10-310001342423us-gaap:UseRightsMember2022-01-310001342423us-gaap:UseRightsMember2021-10-310001342423lmnr:FarmCreditWestMasterLoanMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2022-01-310001342423lmnr:FarmCreditWestMasterLoanMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-11-012022-01-310001342423lmnr:FarmCreditWestMasterLoanMemberlmnr:NonrevolvingCreditFacilityMember2022-01-310001342423lmnr:FarmCreditWestMasterLoanMemberlmnr:NonrevolvingCreditFacilityMembersrt:ScenarioForecastMember2022-07-020001342423lmnr:FarmCreditWestMasterLoanMember2022-01-310001342423lmnr:FarmCreditWestMasterLoanMember2021-10-310001342423lmnr:FarmCreditWestTermLoanDueApril2023AndFebruary2043Member2022-01-310001342423lmnr:FarmCreditWestTermLoanDueApril2023AndFebruary2043Member2021-10-310001342423lmnr:FarmCreditWestTermLoanOneMember2022-01-310001342423lmnr:FarmCreditWestTermLoanOneMember2021-10-310001342423lmnr:FarmCreditWestTermLoanTwoMember2022-01-310001342423lmnr:FarmCreditWestTermLoanTwoMember2021-10-310001342423lmnr:FarmCreditWestTermLoanThreeMember2022-01-310001342423lmnr:FarmCreditWestTermLoanThreeMember2021-10-310001342423lmnr:FarmCreditWestTermLoanFourMember2022-01-310001342423lmnr:FarmCreditWestTermLoanFourMember2021-10-310001342423lmnr:FarmCreditWestTermLoanDueSept2026Member2022-01-310001342423lmnr:FarmCreditWestTermLoanDueSept2026Member2021-10-310001342423lmnr:BancoDeChileTermLoanMember2022-01-310001342423lmnr:BancoDeChileTermLoanMember2021-10-310001342423us-gaap:NotesPayableOtherPayablesMembersrt:MinimumMember2022-01-310001342423us-gaap:NotesPayableOtherPayablesMembersrt:MaximumMember2022-01-310001342423us-gaap:NotesPayableOtherPayablesMember2022-01-310001342423us-gaap:NotesPayableOtherPayablesMember2021-10-310001342423lmnr:BancoDeChileCOVID19LoansMember2022-01-310001342423lmnr:BancoDeChileCOVID19LoansMember2021-10-310001342423lmnr:BancoDeChileCOVID19LoanTwoMember2022-01-310001342423lmnr:BancoDeChileCOVID19LoanTwoMember2021-10-310001342423lmnr:FarmCreditWestMasterLoanMemberlmnr:RevolvingEquityLineofCreditMember2020-03-310001342423lmnr:RevolvingEquityLineofCreditMemberlmnr:FarmCreditWestLoanAgreementSecuredbyWindfallInvestorsLLCPropertyMember2020-03-012020-03-310001342423lmnr:FarmCreditWestMasterLoanMemberus-gaap:RevolvingCreditFacilityMember2022-01-310001342423lmnr:FarmCreditWestMasterLoanMemberlmnr:RevolvingEquityLineofCreditMember2022-01-310001342423lmnr:FarmCreditWestMasterLoanMemberus-gaap:RevolvingCreditFacilityMembersrt:MinimumMemberus-gaap:LondonInterbankOfferedRateLIBORMember2021-07-012021-07-010001342423lmnr:FarmCreditWestMasterLoanMemberus-gaap:RevolvingCreditFacilityMemberus-gaap:LondonInterbankOfferedRateLIBORMembersrt:MaximumMember2021-07-012021-07-010001342423lmnr:FarmCreditWestMasterLoanMemberlmnr:NonrevolvingCreditFacilityMembersrt:ScenarioForecastMember2022-07-010001342423lmnr:FarmCreditWestMasterLoanMemberlmnr:NonrevolvingCreditFacilityMember2021-11-012022-01-310001342423lmnr:FarmCreditWestMasterLoanMembersrt:ScenarioForecastMember2022-10-3100013424232021-12-310001342423lmnr:FarmCreditWestMember2022-01-312022-01-3100013424232020-12-310001342423lmnr:FarmCreditWestMember2021-01-312021-01-310001342423srt:MinimumMember2022-01-310001342423srt:MaximumMember2022-01-310001342423us-gaap:RestrictedStockMember2020-11-012021-01-310001342423lmnr:MutualWaterCompaniesMembersrt:AffiliatedEntityMember2022-01-310001342423lmnr:MutualWaterCompaniesMembersrt:AffiliatedEntityMember2021-10-310001342423lmnr:CooperativeAssociationMembersrt:AffiliatedEntityMember2022-01-310001342423lmnr:CooperativeAssociationMembersrt:AffiliatedEntityMember2021-10-310001342423srt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2022-01-310001342423srt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2021-10-310001342423lmnr:FGFTrapaniMembersrt:AffiliatedEntityMember2022-01-310001342423lmnr:FGFTrapaniMemberus-gaap:CoVenturerMember2022-01-310001342423lmnr:FGFTrapaniMemberus-gaap:CoVenturerMember2021-10-310001342423lmnr:ThirdPartyGrowersMembersrt:AffiliatedEntityMember2022-01-310001342423lmnr:ThirdPartyGrowersMembersrt:AffiliatedEntityMember2021-10-310001342423lmnr:AgribusinessMemberlmnr:EmployeeMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:EmployeeMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:AgribusinessMemberlmnr:EmployeeMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:EmployeeMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:AgribusinessMemberlmnr:MutualWaterCompaniesMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:MutualWaterCompaniesMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:AgribusinessMemberlmnr:MutualWaterCompaniesMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:MutualWaterCompaniesMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:AgribusinessMemberlmnr:CooperativeAssociationMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:CooperativeAssociationMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:AgribusinessMemberlmnr:CooperativeAssociationMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:CooperativeAssociationMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:AgribusinessMemberlmnr:CalavoGrowersIncMemberus-gaap:BeneficialOwnerMember2021-11-012022-01-310001342423lmnr:CalavoGrowersIncMemberus-gaap:BeneficialOwnerMember2021-11-012022-01-310001342423lmnr:AgribusinessMemberlmnr:CalavoGrowersIncMemberus-gaap:BeneficialOwnerMember2020-11-012021-01-310001342423lmnr:CalavoGrowersIncMemberus-gaap:BeneficialOwnerMember2020-11-012021-01-310001342423lmnr:AgribusinessMembersrt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2021-11-012022-01-310001342423srt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2021-11-012022-01-310001342423lmnr:AgribusinessMembersrt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2020-11-012021-01-310001342423srt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2020-11-012021-01-310001342423lmnr:AgribusinessMemberlmnr:ColoradoRiverGrowersMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:ColoradoRiverGrowersMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:AgribusinessMemberlmnr:ColoradoRiverGrowersMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:ColoradoRiverGrowersMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:AgribusinessMemberlmnr:YMIDDMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:YMIDDMembersrt:AffiliatedEntityMember2021-11-012022-01-310001342423lmnr:AgribusinessMemberlmnr:YMIDDMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:YMIDDMembersrt:AffiliatedEntityMember2020-11-012021-01-310001342423lmnr:AgribusinessMemberlmnr:FGFTrapaniMemberus-gaap:CoVenturerMember2021-11-012022-01-310001342423lmnr:FGFTrapaniMemberus-gaap:CoVenturerMember2021-11-012022-01-310001342423lmnr:AgribusinessMemberlmnr:FGFTrapaniMemberus-gaap:CoVenturerMember2020-11-012021-01-310001342423lmnr:FGFTrapaniMemberus-gaap:CoVenturerMember2020-11-012021-01-310001342423lmnr:EmployeeMembersrt:AffiliatedEntityMember2021-10-310001342423lmnr:EmployeeMembersrt:AffiliatedEntityMember2022-01-310001342423srt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2013-10-310001342423srt:AffiliatedEntityMemberlmnr:CadizRealEstateFennerValleyFarmsAndWaterAssetManagementMember2012-11-012013-10-310001342423lmnr:AffiliateOfWaterAssetManagementLLCMemberlmnr:LimoneiraCompanySeriesB2ConvertiblePreferredStockMember2022-01-310001342423us-gaap:StockCompensationPlanMember2021-11-012022-01-310001342423srt:ManagementMemberus-gaap:StockCompensationPlanMember2020-11-012021-10-310001342423srt:MinimumMembersrt:ExecutiveOfficerMemberus-gaap:StockCompensationPlanMember2021-11-012022-01-310001342423srt:ExecutiveOfficerMembersrt:MaximumMemberus-gaap:StockCompensationPlanMember2021-11-012022-01-310001342423srt:ExecutiveOfficerMemberus-gaap:StockCompensationPlanMember2021-12-012021-12-310001342423srt:ExecutiveOfficerMemberus-gaap:SubsequentEventMemberus-gaap:StockCompensationPlanMember2022-02-012022-02-010001342423srt:ExecutiveOfficerMemberus-gaap:StockCompensationPlanMember2021-11-012022-01-310001342423lmnr:NonemployeeDirectorsMemberus-gaap:StockCompensationPlanMember2021-01-012021-01-310001342423lmnr:NonemployeeDirectorsMemberus-gaap:StockCompensationPlanMember2020-11-012021-01-310001342423srt:ManagementMember2021-11-012022-01-310001342423srt:ManagementMember2020-11-012021-01-3100013424232020-11-012021-10-31lmnr:segment0001342423lmnr:OtherAgribusinessMemberlmnr:OrangesMember2021-11-012022-01-310001342423lmnr:OtherAgribusinessMemberlmnr:SpecialtyCitrusandOtherCropsMember2021-11-012022-01-310001342423lmnr:OtherAgribusinessMemberlmnr:OrangesMember2020-11-012021-01-310001342423lmnr:OtherAgribusinessMemberlmnr:SpecialtyCitrusandOtherCropsMember2020-11-012021-01-310001342423lmnr:FreshLemonsMember2021-11-012022-01-310001342423lmnr:LemonPackingMember2021-11-012022-01-310001342423lmnr:AvocadosMember2021-11-012022-01-310001342423lmnr:OtherAgribusinessMember2021-11-012022-01-310001342423lmnr:TotalAgriBusinessMember2021-11-012022-01-310001342423us-gaap:CorporateNonSegmentMember2021-11-012022-01-310001342423lmnr:FreshLemonsMemberus-gaap:IntersegmentEliminationMember2021-11-012022-01-310001342423lmnr:LemonPackingMemberus-gaap:IntersegmentEliminationMember2021-11-012022-01-310001342423us-gaap:IntersegmentEliminationMember2021-11-012022-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:FreshLemonsMember2021-11-012022-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:LemonPackingMember2021-11-012022-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:AvocadosMember2021-11-012022-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:OtherAgribusinessMember2021-11-012022-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:TotalAgriBusinessMember2021-11-012022-01-310001342423lmnr:FreshLemonsMember2020-11-012021-01-310001342423lmnr:LemonPackingMember2020-11-012021-01-310001342423lmnr:AvocadosMember2020-11-012021-01-310001342423lmnr:OtherAgribusinessMember2020-11-012021-01-310001342423lmnr:TotalAgriBusinessMember2020-11-012021-01-310001342423us-gaap:CorporateNonSegmentMember2020-11-012021-01-310001342423lmnr:FreshLemonsMemberus-gaap:IntersegmentEliminationMember2020-11-012021-01-310001342423lmnr:LemonPackingMemberus-gaap:IntersegmentEliminationMember2020-11-012021-01-310001342423us-gaap:IntersegmentEliminationMember2020-11-012021-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:FreshLemonsMember2020-11-012021-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:LemonPackingMember2020-11-012021-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:AvocadosMember2020-11-012021-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:OtherAgribusinessMember2020-11-012021-01-310001342423us-gaap:OperatingSegmentsMemberlmnr:TotalAgriBusinessMember2020-11-012021-01-31


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 JANUARY 31, 2022
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: 001-34755
LIMONEIRA COMPANY
(Exact name of registrant as specified in its charter)
Delaware77-0260692
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
1141 Cummings Road, Santa Paula, CA
93060
(Address of principal executive offices)(Zip code)

Registrant’s telephone number, including area code: (805525-5541 
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading SymbolName of Each Exchange of Which Registered
Common Stock, $0.01 par valueLMNR
The NASDAQ Stock Market LLC (NASDAQ Global Select 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, a smaller reporting company, or an emerging growth 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
Emerging growth company
Non-accelerated filer
Smaller reporting 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 12b-2 of the Exchange Act).      Yes      No

As of February 28, 2022, there were 17,672,320 shares outstanding of the registrant’s common stock.



LIMONEIRA COMPANY
TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION
  
Item 1.Financial Statements (Unaudited)
   
Consolidated Balance Sheets – January 31, 2022 and October 31, 2021
  
Consolidated Statements of Operations – three months ended January 31, 2022 and 2021
  
Consolidated Statements of Comprehensive Loss – three months ended January 31, 2022 and 2021
  
Consolidated Statements of Stockholders' Equity and Temporary Equity – three months ended January 31, 2022 and 2021
Consolidated Statements of Cash Flows – three months ended January 31, 2022 and 2021
  
Notes to Consolidated Financial Statements
  
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
   
SIGNATURES

2


CAUTIONARY NOTE ON FORWARD-LOOKING STATEMENTS
 
This Quarterly Report on Form 10-Q contains both historical and forward-looking statements. Forward-looking statements in this Quarterly Report on Form 10-Q are subject to a number of risks and uncertainties, some of which are beyond the Company’s control. The potential risks and uncertainties that could cause our actual financial condition, results of operations and future performance to differ materially from those expressed or implied in this quarterly report include:

negative impacts related to the COVID-19 pandemic and the effectiveness of our Company's responses to the pandemic;
changes in laws, regulations, rules, quotas, tariffs, and import laws;
adverse weather conditions, natural disasters and other adverse natural conditions, including freezes, rains, fires, winds and droughts that affect the production, transportation, storage, import and export of fresh produce;
market responses to industry volume pressures;
increased pressure from disease, insects and other pests;
disruption of water supplies or changes in water allocations;
product and raw materials supplies and pricing;
energy supply and pricing;
changes in interest rates;
availability of financing for development activities;
general economic conditions for residential and commercial real estate development;
political changes and economic crises;
international conflict;
acts of terrorism;
labor disruptions, strikes, shortages or work stoppages;
the impact of foreign exchange rate movements;
ability to maintain compliance with covenants under our loan agreements;
loss of important intellectual property rights; and
other factors disclosed in our public filings with the Securities and Exchange Commission (the "SEC").

These forward-looking statements involve risks and uncertainties that we have identified as having the potential to cause actual results to differ materially from those contemplated herein. We have described in Part I, Item 1A-“Risk Factors” in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021 additional factors that could cause our actual results to differ from our projections or estimates, especially relating to the COVID-19 pandemic.

Many of these risks and uncertainties are currently amplified by, and will continue to be amplified by, or in the future may be amplified by, the COVID-19 outbreak. It is not possible to predict or identify all such risks.

The Company’s actual results, performance, prospects or opportunities could differ materially from those expressed in or implied by the forward-looking statements. Additional risks of which the Company is not currently aware or which the Company currently deems immaterial could also cause the Company’s actual results to differ, including those discussed in the section entitled “Risk Factors” included in our Annual Report on Form 10-K for the fiscal year ended October 31, 2021. Although we believe the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance, or achievements. You should not place undue reliance on these forward-looking statements, which apply only as of the date of this Quarterly Report on Form 10-Q. Except as required by law, we undertake no obligation to update these forward-looking statements, even if our situation changes in the future.

All references to “we,” "us," “our,” “our Company,” "the Company" or "Limoneira" in this Quarterly Report on Form 10-Q mean Limoneira Company, a Delaware corporation, and its consolidated subsidiaries.

3


PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
LIMONEIRA COMPANY
CONSOLIDATED BALANCE SHEETS (UNAUDITED)
($ in thousands, except share amounts) 

 January 31, 2022October 31, 2021
Assets  
Current assets:  
Cash$816 $439 
Accounts receivable, net20,868 17,483 
Cultural costs4,846 7,500 
Prepaid expenses and other current assets12,848 10,709 
Receivables/other from related parties4,840 5,958 
Total current assets44,218 42,089 
Property, plant and equipment, net240,499 242,420 
Real estate development22,813 22,828 
Equity in investments64,123 64,072 
Goodwill1,528 1,527 
Intangible assets, net8,162 8,329 
Other assets12,579 11,011 
Total assets$393,922 $392,276 
Liabilities and Stockholders' Equity  
Current liabilities:  
Accounts payable$7,813 $8,963 
Growers and suppliers payable9,213 10,371 
Accrued liabilities7,370 6,542 
Payables to related parties7,811 6,976 
Current portion of long-term debt2,401 2,472 
Total current liabilities34,608 35,324 
Long-term liabilities:  
Long-term debt, less current portion142,148 130,353 
Deferred income taxes20,230 22,853 
Other long-term liabilities5,524 4,501 
Total liabilities202,510 193,031 
Commitments and contingencies (See Note 16)  
Series B Convertible Preferred Stock – $100.00 par value (50,000 shares authorized: 14,790 shares issued and outstanding at January 31, 2022 and October 31, 2021) (8.75% coupon rate)
1,479 1,479 
Series B-2 Convertible Preferred Stock – $100.00 par value (10,000 shares authorized: 9,300 shares issued and outstanding at January 31, 2022 and October 31, 2021) (4% dividend rate on liquidation value of $1,000 per share)
9,331 9,331 
Stockholders' Equity:  
Series A Junior Participating Preferred Stock – $0.01 par value (20,000 shares authorized: zero issued or outstanding at January 31, 2022 and October 31, 2021)
  
Common Stock – $0.01 par value (39,000,000 shares authorized: 17,951,015 and 17,936,377 shares issued and 17,700,038 and 17,685,400 shares outstanding at January 31, 2022 and October 31, 2021, respectively)
180 179 
Additional paid-in capital164,061 163,965 
Retained earnings13,581 21,552 
Accumulated other comprehensive loss(5,606)(5,733)
Treasury stock, at cost, 250,977 shares at January 31, 2022 and October 31, 2021
(3,493)(3,493)
Noncontrolling interest11,879 11,965 
Total stockholders' equity180,602 188,435 
Total liabilities and stockholders' equity$393,922 $392,276 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
4


LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
($ in thousands, except share amounts)

 Three Months Ended
January 31,
 20222021
Net revenues:
Agribusiness$38,083 $37,137 
Other operations1,191 1,138 
Total net revenues39,274 38,275 
Costs and expenses:
Agribusiness41,244 36,938 
Other operations1,074 1,082 
Gain on disposal of assets(85) 
Selling, general and administrative6,599 5,895 
Total costs and expenses48,832 43,915 
Operating loss(9,558)(5,640)
Other income:
Interest income21 43 
Interest expense, net of patronage dividends215 134 
Equity in earnings of investments, net51 366 
Other income (expense), net15 (6)
Total other income 302 537 
Loss before income tax benefit(9,256)(5,103)
Income tax benefit2,650 1,187 
Net loss(6,606)(3,916)
Net loss (income) attributable to noncontrolling interest88 (292)
Net loss attributable to Limoneira Company(6,518)(4,208)
Preferred dividends(125)(125)
Net loss attributable to common stock$(6,643)$(4,333)
Basic net loss per common share$(0.38)$(0.25)
Diluted net loss per common share$(0.38)$(0.25)
Weighted-average common shares outstanding-basic17,448,000 17,405,000 
Weighted-average common shares outstanding-diluted17,448,000 17,405,000 
  
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 


5


LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS (UNAUDITED)
(In thousands)

 Three Months Ended January 31,
 20222021
Net loss$(6,606)$(3,916)
Other comprehensive income, net of tax:
Foreign currency translation adjustments55 795 
Minimum pension liability adjustment, net of tax of $27 and $51 for the three months ended January 31, 2022 and 2021, respectively.
72 134 
Total other comprehensive income, net of tax127 929 
Comprehensive loss(6,479)(2,987)
Comprehensive loss (income) attributable to noncontrolling interest86 (331)
Comprehensive loss attributable to Limoneira Company$(6,393)$(3,318)
 
The accompanying notes are an integral part of these unaudited consolidated financial statements.
 

6


LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY AND TEMPORARY EQUITY
($ in thousands)

 Stockholders' Equity Temporary Equity
 Common StockAdditional
Paid-In
RetainedAccumulated
Other
Comprehensive
TreasuryNon- controllingTotalSeries B
Preferred
Series B-2
Preferred
 SharesAmountCapitalEarnings(Loss) IncomeStockInterestEquityStockStock
Balance at October 31, 202117,685,400 $179 $163,965 $21,552 $(5,733)$(3,493)$11,965 $188,435 $1,479 $9,331 
Dividends Common ($0.075 per share)
— — — (1,328)— — — (1,328)— — 
Dividends Series B ($2.19 per share)
— — — (32)— — — (32)— — 
Dividends Series B-2 ($10 per share)
— — — (93)— — — (93)— — 
Stock compensation70,000 1 996 — — — — 997 — — 
Exchange of common stock(55,362)— (900)— — — — (900)— — 
Net loss— — — (6,518)— — (88)(6,606)— — 
Other comprehensive income, net of tax— — — — 127 — 2 129 — — 
Balance at January 31, 202217,700,038$180 $164,061 $13,581 $(5,606)$(3,493)$11,879 $180,602 $1,479 $9,331 

Stockholders' Equity Temporary Equity
Common StockAdditional
Paid-In
RetainedAccumulated
Other
Comprehensive
TreasuryNon- controllingTotalSeries B
Preferred
Series B-2
Preferred
SharesAmountCapitalEarnings(Loss) IncomeStockInterestEquityStockStock
Balance at October 31, 202017,606,730 $179 $162,084 $30,797 $(7,548)$(3,493)$13,741 $195,760 $1,479 $9,331 
Dividends Common ($0.075 per share)
— — — (1,324)— — — (1,324)— — 
Dividends Series B ($2.19 per share)
— — — (32)— — — (32)— — 
Dividends Series B-2 $10 per share)
— — — (93)— — — (93)— — 
Stock compensation125,190 1 1,066 — — — — 1,067 — — 
Exchange of common stock(46,993)(1)(700)— — — — (701)— — 
Net (loss) income— — — (4,208)— — 292 (3,916)— — 
Other comprehensive income, net of tax— — — — 929 — 39 968 — — 
Balance at January 31, 202117,684,927$179 $162,450 $25,140 $(6,619)$(3,493)$14,072 $191,729 $1,479 $9,331 

The accompanying notes are an integral part of these unaudited consolidated financial statements.
7


LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
(In thousands)

 Three Months Ended
January 31,
 20222021
Operating activities  
Net loss$(6,606)$(3,916)
Adjustments to reconcile net loss to net cash used in operating activities:  
Depreciation and amortization2,480 2,501 
Gain on disposal of assets(85) 
Stock compensation expense997 1,066 
Non-cash lease expense152 121 
Equity in earnings of investments, net(51)(366)
Deferred income taxes(2,650)(1,187)
Other, net213 142 
Changes in operating assets and liabilities:  
Accounts receivable and receivables/other from related parties(2,188)(6,115)
Cultural costs2,654 2,918 
Prepaid expenses and other current assets(1,676)(255)
Income taxes receivable 4,963 
Other assets29 (54)
Accounts payable and growers and suppliers payable(2,666)(307)
Accrued liabilities and payables to related parties1,347 (1,116)
Other long-term liabilities(112)(185)
Net cash used in operating activities(8,162)(1,790)
Investing activities  
Capital expenditures(2,080)(3,415)
Net proceeds from sale of assets1,090  
Collection on loan and note receivable250 25 
Investments in mutual water companies and water rights (190)
Net cash used in investing activities(740)(3,580)
Financing activities  
Borrowings of long-term debt44,439 27,632 
Repayments of long-term debt(32,731)(18,798)
Principal paid on finance leases(69) 
Dividends paid – common(1,328)(1,324)
Dividends paid – preferred(125)(125)
Exchange of common stock(900)(700)
Net cash provided by financing activities9,286 6,685 
Effect of exchange rate changes on cash(7)25 
Net increase in cash377 1,340 
Cash at beginning of period439 501 
Cash at end of period$816 $1,841 
8


LIMONEIRA COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) (CONTINUED)
(In thousands)

 Three Months Ended
January 31,
 20222021
Supplemental disclosures of cash flow information  
Cash paid during the period for interest, net of amounts capitalized$618 $969 
Cash paid (received) during the period for income taxes, net$ $(4,997)
Non-cash investing and financing activities:  
Capital expenditures accrued but not paid at period-end$25 $ 
Accrued contribution obligation of investment in water company$450 $ 

The accompanying notes are an integral part of these unaudited consolidated financial statements.



9


LIMONEIRA COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

1. Organization and Basis of Presentation

Business

Limoneira Company (together with its consolidated subsidiaries, the “Company”) engages primarily in growing citrus and avocados, picking and hauling citrus, and packing, marketing and selling citrus. The Company is also engaged in residential rentals and other rental operations and real estate development activities.

The Company markets and sells citrus directly to food service, wholesale and retail customers throughout the United States, Canada, Asia, Europe and other international markets. The Company is a member of Sunkist Growers, Inc. (“Sunkist”), an agricultural marketing cooperative, and sells a portion of its oranges, specialty citrus and other crops to Sunkist-licensed and other third-party packinghouses.

Through fiscal year 2021, the Company sold the majority of its avocado production to Calavo Growers, Inc. (“Calavo”), a packing and marketing company listed on the NASDAQ Global Select Market under the symbol CVGW. In February 2022, the Company terminated its Avocado Marketing Agreement and the associated Letter Agreement Regarding Fruit Commitment with Calavo to pursue opportunities with other packing and marketing companies.

Basis of Presentation and Preparation

The accompanying unaudited interim consolidated financial statements include the accounts of the Company and the accounts of all the subsidiaries and investments in which the Company holds a controlling interest. Intercompany balances and transactions have been eliminated in consolidation. In the opinion of the Company, the unaudited interim consolidated financial statements reflect all adjustments, which are normal and recurring in nature, necessary for fair financial statement presentation. The preparation of these unaudited interim consolidated financial statements and accompanying notes in conformity with U.S. generally accepted accounting principles (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Certain information and footnote disclosures normally included in the annual consolidated financial statements have been condensed or omitted pursuant to the rules and regulations of the SEC. Because the consolidated financial statements do not include all of the information and notes required by GAAP for a complete set of consolidated financial statements, they should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s Annual Report on Form 10-K.

2. Summary of Significant Accounting Policies

Comprehensive Loss

Comprehensive loss represents all changes in a company’s net assets, except changes resulting from transactions with stockholders. Other comprehensive income or loss primarily includes foreign currency translation items and defined benefit pension items. Accumulated other comprehensive loss is reported as a component of the Company's stockholders' equity.

The following table summarizes other comprehensive income by component (in thousands):
Three Months Ended January 31,
 20222021
 Pre-tax AmountTax ExpenseNet AmountPre-tax AmountTax ExpenseNet Amount
Foreign currency translation adjustments$55 $ $55 $795 $ $795 
Minimum pension liability adjustments:
Other comprehensive gain before reclassifications99 (27)72 185 (51)134 
Other comprehensive income $154 $(27)$127 $980 $(51)$929 




10


LIMONEIRA COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
2. Summary of Significant Accounting Policies (continued)

Comprehensive Loss (continued)

The following table summarizes the changes in accumulated other comprehensive (loss) income by component (in thousands):

 Foreign Currency Translation (Loss) GainDefined Benefit Pension PlanAccumulated Other Comprehensive (Loss) Income
Balance at October 31, 2021$(3,754)$(1,979)$(5,733)
Other comprehensive income55 72 127 
Balance at January 31, 2022$(3,699)$(1,907)$(5,606)
 Foreign Currency Translation (Loss) GainDefined Benefit Pension PlanAccumulated Other Comprehensive (Loss) Income
Balance at October 31, 2020$(3,069)$(4,479)$(7,548)
Other comprehensive income795 134 929 
Balance at January 31, 2021$(2,274)$(4,345)$(6,619)
 
COVID-19 Pandemic

There is uncertainty around the breadth and duration of the Company's business disruptions related to the COVID-19 pandemic. The decline in demand for the Company's products beginning the second quarter of fiscal year 2020, which it believes was due to the COVID-19 pandemic, negatively impacted its sales and profitability for the last three quarters of fiscal year 2020, all of fiscal year 2021, and the first quarter of fiscal year 2022. The Company also expects COVID-19 to have some impact to its sales and profitability in future periods. The duration of these trends and the magnitude of such impacts are uncertain and therefore cannot be estimated at this time, as they are influenced by a number of factors, many of which are outside management’s control. The full impact of the COVID-19 pandemic on the Company's results of operations, financial condition, and liquidity, including its ability to comply with debt covenants, for fiscal year 2022 and beyond, is driven by estimates that contain uncertainties.

Recent Accounting Pronouncements

FASB ASU 2020-06, Debt—Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging—Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity

This amendment simplifies accounting for convertible instruments by removing major separation models currently required under GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (EPS) calculation in certain areas.

ASU 2020-06 is effective for public business entities that meet the definition of a SEC filer for fiscal years beginning after December 15, 2021, including interim periods within those fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2020. The Company adopted this ASU effective November 1, 2021 and the adoption did not have a material impact on its consolidated financial statements.

3. Concentrations and Geographic Information

Concentrations of credit risk with respect to revenues and trade receivable are limited due to a large, diverse customer base. Two individual customers represented 15% and 12% of revenue, respectively, for the three months ended January 31, 2022. One individual customer represented 23% of revenues for the three months ended January 31, 2021. One individual customer represented 12% of accounts receivable, net as of January 31, 2022. No individual customer represented more than 10% of accounts receivable, net as of October 31, 2021.

Lemons procured from third-party growers were 57% and 48% of the Company's lemon supply for the three months ended January 31, 2022 and 2021, respectively. One third-party grower was 20% and 26% of the lemon supply for the three months ended January 31, 2022 and 2021, respectively.
11


LIMONEIRA COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
3. Concentrations and Geographic Information (continued)

During the three months ended January 31, 2022 and 2021, the Company had approximately $208,000 and $1,027,000, respectively, of total sales in Chile by Fruticola Pan de Azucar S.A. ("PDA") and Agricola San Pablo SpA ("San Pablo"). During the three months ended January 31, 2022 and 2021, the Company had approximately $147,000 and $1,671,000, respectively, of total sales in Argentina by Trapani Fresh.

Aggregate foreign exchange transaction losses realized for our foreign subsidiaries were immaterial for the three months ended January 31, 2022 and 2021.

4. Prepaid Expenses and Other Current Assets

Prepaid expenses and other current assets consist of the following (in thousands): 
 January 31, 2022October 31, 2021
Prepaid supplies and insurance$3,401 $2,521 
Note receivable and related interest2,188 2,438 
Real estate development held for sale2,543 2,543 
Sales tax receivable502 909 
Lemon supplier advances and other4,214 2,298 
 $12,848 $10,709 

5. Real Estate Development

Real estate development assets are comprised primarily of land and land development costs and consist of the following (in thousands):
 January 31, 2022October 31, 2021
East Area I - Retained Property$13,343 $13,335 
East Area II9,470 9,493 
 $22,813 $22,828 

East Area I, Retained Property and East Area II

In fiscal year 2005, the Company began capitalizing the costs of two real estate development projects east of Santa Paula, California, for the development of 550 acres of land into residential units, commercial buildings and civic facilities. In November 2015 (the “Transaction Date”), the Company entered into a joint venture with The Lewis Group of Companies (“Lewis”) for the residential development of its East Area I real estate development project. To consummate the transaction, the Company formed Limoneira Lewis Community Builders, LLC (“LLCB”) as the development entity, contributed its East Area I property to LLCB and sold a 50% interest in LLCB to Lewis for $20,000,000.

The Company and LLCB also entered into a Retained Property Development Agreement on the Transaction Date (the "Retained Property Agreement"). Under the terms of the Retained Property Agreement, LLCB transferred certain contributed East Area I property, which is entitled for commercial development, back to the Company (the "Retained Property") and arranged for the design and construction of certain improvements to the Retained Property, subject to certain reimbursements by the Company. The balance in Retained Property and East Area II includes estimated costs incurred by and reimbursable to LLCB of $5,771,000 at January 31, 2022 and October 31, 2021, which is included in payables to related parties.

In January 2018, LLCB entered into a $45,000,000 unsecured Line of Credit Loan Agreement and Promissory Note (the “Loan”) with Bank of America, N.A. to fund early development activities. The Loan, as modified and extended, matures February 22, 2023. The interest rate on the Loan is LIBOR plus 2.85% and is payable monthly. The Loan contains certain customary default provisions and LLCB may prepay any amounts outstanding under the Loan without penalty. The joint venture had an outstanding balance of $4,900,000 as of January 31, 2022. The Loan has a one year extension option through February 22, 2024 subject to terms and conditions as defined in the agreement, with the maximum borrowing amount reduced to $35,000,000 during the extension period.

12


LIMONEIRA COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
5. Real Estate Development (continued)

East Area I, Retained Property and East Area II (continued)

In February 2018, the Company and certain principals from Lewis guaranteed the obligations under the Loan. The guarantee shall continue in effect until all of the Loan obligations are fully paid and the guarantors are jointly and severally liable for all Loan obligations in the event of default by LLCB. The $1,080,000 estimated value of the guarantee was recorded in the Company’s consolidated balance sheets and is included in other long-term liabilities with a corresponding value in equity in investments. Additionally, a Reimbursement Agreement was executed between the Lewis guarantors and the Company, which provides for unpaid liabilities of LLCB to be shared pro-rata by the Lewis guarantors and the Company in proportion to their percentage interest in the joint venture.

Through January 31, 2022, the joint venture has closed the sales of the initial residential lots representing 586 residential units.

Other Real Estate Development Projects

The remaining real estate development parcel within the Templeton Santa Barbara, LLC project is described as Sevilla. In fiscal year 2020, the Company entered into an agreement to sell its Sevilla property for $2,700,000, which is expected to close in the third quarter of fiscal year 2022. After transaction and other costs, the Company expects to receive cash proceeds of approximately $2,550,000 and recognize an immaterial gain upon closing. At January 31, 2022 and October 31, 2021, the $2,543,000 carrying value of the property was classified as held for sale and included in prepaid expenses and other current assets.

During December 2017, the Company sold its Centennial property with a net book value of $2,983,000 for $3,250,000. The Company received cash and a $3,000,000 promissory note secured by the property for the balance of the purchase. The promissory note was originally scheduled to mature in December 2019 but has been periodically extended with principal payments totaling $400,000 received through October 31, 2021. In November 2021, the promissory note was further extended to June 30, 2022 upon making a principal paydown of $250,000, which was paid in November 2021, and revising the interest rate to 4.00% per annum, with an option to further extend the maturity date of the promissory note to September 30, 2022 upon making an additional principal paydown of $250,000 by May 31, 2022. At January 31, 2022, the net carrying value of the note was $2,350,000 and classified in prepaid expenses and other current assets.

6. Equity in Investments

Equity in investments consist of the following (in thousands):
 
 January 31, 2022October 31, 2021
Limoneira Lewis Community Builders, LLC$60,216 $60,216 
Limco Del Mar, Ltd.2,131 1,997 
Rosales1,270 1,351 
Romney Property Partnership506 508 
 $64,123 $64,072 

Amounts due from Rosales were $669,000 and $1,570,000 at January 31, 2022 and October 31, 2021, respectively, and are included in receivables/other from related parties.

Unconsolidated Significant Subsidiary

In accordance with Rule 10-01(b)(1) of Regulation S-X, which applies to interim reports on Form 10-Q, the Company must determine if its equity method investees are considered “significant subsidiaries." In evaluating its investments, there are two tests utilized to determine if equity method investees are considered significant subsidiaries: the income test and the investment test. Summarized income statement information of an equity method investee is required in an interim report if either of the two tests exceed 20% in the interim periods presented. During the year-to-date interim periods for the three months ended January 31, 2022 and 2021, this threshold was not met for any of the Company's equity investments and thus summarized income statement information is not required in this Quarterly Report on Form 10-Q.

13


LIMONEIRA COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
7. Goodwill and Intangible Assets, Net

A summary of the change in the carrying amount of goodwill is as follows (in thousands):
Goodwill Carrying Amount
Balance at October 31, 2021$1,527 
Foreign currency translation adjustment1 
Balance at January 31, 2022$1,528 

Goodwill is tested for impairment on an annual basis or when an event or changes in circumstances indicate that its carrying value may not be recoverable. There have been no impairment charges recorded against goodwill as of January 31, 2022.

Intangible assets consisted of the following (in thousands):
January 31, 2022October 31, 2021
Gross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted Average Useful Life in YearsGross Carrying AmountAccumulated AmortizationNet Carrying AmountWeighted Average Useful Life in Years
Trade names and trademarks$2,108 (717)1,391 8$2,108 $(663)$1,445 8
Customer relationships4,037 (1,322)2,715 94,037 (1,209)2,828 9
Non-competition agreement 437 (36)401 8437 (22)415 8
Acquired water and mineral rights3,655 — 3,655 Indefinite3,641 — 3,641  Indefinite
$10,237 $(2,075)$8,162 $10,223 $(1,894)$8,329 

Amortization expense totaled $181,000 and $263,000 for the three months ended January 31, 2022 and 2021, respectively. Estimated future amortization expense of intangible assets as of January 31, 2022 is as follows (in thousands):

2022 (excluding the three months ended January 31, 2022)$543 
2023724 
2024716 
2025711 
2026711 
Thereafter1,102 
 $4,507 
8. Other Assets

Investments in Mutual Water Companies

The Company’s investments in various not-for-profit mutual water companies provide it with the right to receive a proportionate share of water from each of the not-for-profit mutual water companies that have been invested in and do not constitute voting shares and/or rights. As of January 31, 2022 and October 31, 2021, $6,454,000 and $5,994,000, respectively, were included in other assets.

9. Accrued Liabilities

Accrued liabilities consist of the following (in thousands):

 January 31, 2022October 31, 2021
Compensation$3,011 $2,112 
Property taxes202 676 
Operating expenses2,636 1,203 
Leases809 604 
Other712 1,947 
 $7,370 $6,542 
14


LIMONEIRA COMPANY
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
10. Long-Term Debt
Long-term debt is comprised of the following (in thousands):
 January 31, 2022October 31, 2021
Farm Credit West revolving and non-revolving lines of credit: the interest rate of the revolving line of credit is variable based on the one-month London Interbank Offered Rate (“LIBOR”), which was 0.10% at January 31, 2022, plus 1.85%. The interest rate for the $40.0 million outstanding balance of the non-revolving line of credit is fixed at 4.77% through July 1, 2022, 3.57% through July 1, 2025 and variable thereafter. Interest is payable monthly and the principal is due in full on July 1, 2026.
$113,845 $111,293 
Farm Credit West revolving equity line of credit: the interest rate is variable based on the Lender's variable interest rate plan, which was 2.50% at January 31, 2022. The loan is payable in interest-only monthly payments through April 2023 and monthly principal and interest payments thereafter, through February 2043.
9,930  
Farm Credit West term loan: Effective July 1, 2020, the interest rate was fixed at 2.48%. The loan is payable in quarterly installments through November 2022.
649 809 
Farm Credit West term loan: Effective July 1, 2020, the interest rate was fixed at 3.24%. The loan is payable in monthly installments through October 2035.
960 974 
Farm Credit West term loan: Effective July 1, 2020, the interest rate was fixed at 3.24%. The loan is payable in monthly installments through March 2036.
7,895 8,004 
Farm Credit West term loan: Effective July 1, 2020 the interest rate was fixed at 2.77% until July 1, 2025, becoming variable for the remainder of the loan. The loan is payable in monthly installments through March 2036.
5,809 5,892 
Farm Credit West term loan: Effective August 2, 2021, the interest rate was fixed at 3.19%. The loan is payable in monthly installments through September 2026.
2,358 2,475 
Banco de Chile term loan: the interest rate is fixed at 6.48%. The loan is payable in annual installments through January 2025.
791 1,011 
Note Payable: the interest rate ranges from 5.00% to 7.00% and was 6.50% at January 31, 2022. The loan includes interest only monthly payments and principal is due in February 2023.
1,435 1,435 
Banco de Chile COVID-19 loans: The interest rates are fixed at 3.48%. The loans are payable in monthly installments through September 2024.
379 411 
Banco de Chile COVID-19 loans: The interest rates are fixed at 3.48% and 4.26%. The loans are payable in monthly installments through September 2026.