LONGMONT, Colo., Sept. 27,
2023 /PRNewswire/ -- S&W Seed Company (Nasdaq:
SANW) today announced financial results for the fiscal year ended
June 30, 2023.
Financial Highlights
- Revenue for fiscal 2023 was $73.5
million, a 3.0% increase compared to fiscal 2022. Double
Team™ sorghum revenue was $6.5
million in fiscal 2023, compared to $2.4 million in fiscal 2022.
- GAAP gross profit margin for fiscal 2023 was 19.8%, a strong
improvement from 8.9% in fiscal 2022, reflective of the Company's
execution on its gross margin expansion initiatives, including the
revenue growth in its high margin Double Team sorghum
solutions.
- Operating expenses decreased by $6.7
million for fiscal 2023 to $32.5
million compared to $39.2
million for fiscal 2022, as the Company worked to align its
cost structure to support its key centers of value.
- GAAP net income was $14.4
million, or $0.34 per basic
and diluted share, for fiscal 2023 compared to a GAAP net loss of
$(36.4) million, or $(0.93) per basic and diluted share, for fiscal
2022. The Company experienced a gain on the sale of a business
interest of $38.2 million related to
the establishment of a partnership with Equilon Enterprises LLC
(dba Shell Oil Products US, or Shell).
- Adjusted EBITDA (see Table B) improved by $14.3 million to $(9.3)
million for fiscal 2023 compared to $(23.6) million for fiscal 2022, primarily driven
by gross margin expansion and cost structure alignment in addition
to the recognition of the U.S. Federal Employee Retention
Credit.
Recent Highlights
- In February 2023, S&W entered
into a partnership with Shell to develop and produce sustainable
biofuel feedstocks. Refer to the Shell Partnership section
below for further information.
- In May 2023, S&W announced
that its Board of Directors, or Board, is evaluating potential
avenues to unlock what the Company sees as unrecognized value in
its international operations, which are headquartered within the
Company's Australian subsidiary.
- In July 2023, seed industry
veteran Mark Herrmann was appointed
as Chief Executive Officer, or CEO, following the planned
retirement of its previous CEO, Mark
Wong, who remains on the Board.
Management Discussion
"S&W successfully executed on a number of strategic
initiatives in fiscal 2023 to unlock value and position the Company
for success going forward, including the successful launch of the
Company's high value Double Team sorghum solutions, gross margin
expansion, operating expense optimization and the establishment of
a biofuels partnership with Shell," commented S&W's recently
appointed CEO, Mark Herrmann. "The
result was a $14.3 million
improvement in Adjusted EBITDA and an improved balance sheet that
we believe will help us to execute on our strategic plans going
forward."
"Since taking over as CEO in July, we have moved quickly to
define our business strategies to optimize results centered around
best-in-class operational effectiveness of our broader sorghum
technology program and forage operations. Grower adoption of our
Double Team grain sorghum solution continues to rapidly accelerate
since we launched the product in fiscal 2022, having captured an
estimated 6% of the total U.S. grain sorghum acres during fiscal
2023, and expectations of an estimated 10% acre share in fiscal
2024. With the continued expansion of Double Team
planned for forage sorghum products in addition to grain sorghum in
fiscal 2024, and a growing sorghum technology pipeline that
includes stackable traits for prussic acid-free and insect
tolerance in the years to come, I believe S&W is in a highly
unique position to potentially be the leading technology provider
in this important global crop," Herrmann expanded.
"Further, we have implemented a new series of operational
initiatives to drive the business towards profitability in the
near-term. This includes improved life cycle management to reduce
obsolescence costs, as well as having a positive impact on working
capital management; the rationalization of certain low margin
forage product lines and seed treatments; suspension of our stevia
development program; and a seed manufacturing cost reduction plan
to improve operational efficiencies and align with best-in-class
standards. Every organizational decision we make is expected to be
data driven to ensure it will have a positive impact on our
customers and shareholders going forward," Herrmann concluded.
Shell Partnership
On February 7, 2023, S&W
announced the execution of an agreement to establish a partnership
with Shell for the purpose of developing novel plant genetics for
oilseed cover crops as feedstocks for biofuel production. The
partnership company, named Vision Bioenergy Oilseeds LLC, or Vision
Bioenergy, is 66% owned by Shell and 34% owned by S&W. The
partnership intends to develop Camelina ("Camelina sativa")
and other oilseed species from which oil and meal can be extracted
for future processing into animal feed, biofuels, and other
bioproducts. The partnership expects to carry out initial grain
production in late calendar year 2023.
S&W contributed its expertise in seed research, technology,
production, and processing to the partnership, including its seed
processing and research facilities in Nampa, Idaho, and certain key personnel.
At closing, Shell paid $7.0
million to S&W and also paid $6.9
million to retire in full the principal, accrued interest
and related settlement costs of the promissory note with Rooster
Capital, LLC, which was secured by a priority security interest in
the property, plant and fixtures located at the Nampa facilities. In February 2024, Shell will be required to pay an
additional $6.0 million to S&W,
subject to adjustment in certain circumstances. Shell also
contributed $13.2 million to Vision
Bioenergy, and is required to make an additional $12.0 million cash contribution to the
partnership in February 2024. These
capital contributions are expected to fund Vision Bioenergy's
operations for a few years. S&W also received a one-time
purchase option, exercisable at any time on or before the fifth
anniversary of the closing of the partnership transaction to
purchase an additional 6% membership interest from Shell for a
purchase price ranging between $7.1
million and $12.0 million.
Upon the achievement of certain specified milestones, S&W is
eligible to receive up to an additional aggregate 10% interest in
Vision Bioenergy from Shell.
International Operations Update
In May 2023, S&W announced
that its Board is evaluating potential avenues to unlock what the
Company sees as unrecognized value in its international operations,
which are headquartered within the Company's Australian
subsidiary. S&W has retained Bell Potter Securities
Limited as its financial advisor and to assist the Board in its
evaluation. As part of the process, the Board expects to review a
full range of potential alternatives, which may include an
IPO/Australian public listing of S&W International, or a
merger, reverse merger or other business combination or strategic
transaction involving the Company's international operations – any
of which would be expected to help improve strategic focus, enhance
financial transparency, and better enable stakeholders to value
separate components of the Company's businesses independently.
The Company cautions that there can be no assurance the Board's
evaluation will result in a completed transaction, or any assurance
as to its outcome or timing. S&W expects that the Board's
evaluation will be completed in the second half of the 2023
calendar year. It does not intend to disclose any developments
related to the process unless and until S&W executes a
definitive agreement for a particular transaction, or the Board
otherwise determines that further disclosure is appropriate or
required.
Management Transition
Effective July 1, 2023, seed
industry veteran Mark Herrmann was
appointed as CEO following the planned retirement of its previous
CEO, Mark Wong. Wong continues to
serve as a member of S&W's Board. Herrmann has more than 35
years of experience in the seed industry, including as the CEO of
AgReliant Genetics LLC, the 3rd largest North American Seed Corn
company and leader in Soybeans and other supporting crops,
headquartered in Westfield,
Indiana from January 2016 to
July 2020. From 1999 to 2016,
Herrmann held various positions at Monsanto Company and its
subsidiaries, including as Vice President North America Vegetable
Seed, Vice President US Technology Development and Licensing,
President of Corn States LLC, Director Eastern US, and Director
Monsanto US Seed and Trait Business. Herrmann joined the Monsanto
Company through the acquisition of DEKALB Genetics Corporation in 1998, where he
began his career in the seed business in 1984 with leadership roles
in sales, sales management, marketing and product management.
Financial Results
Total revenue for fiscal 2023 was $73.5
million, compared to total revenue for fiscal 2022 of
$71.4 million. The $2.1 million increase in revenue was primarily
due to a $4.0 million increase in
Double Team sorghum sales in the U.S. domestic market, a
$4.0 million increase in non-dormant
alfalfa sales in the Middle
East/North Africa, or MENA,
region as a tightening in the global supply of non-dormant alfalfa
drove up market prices, and a $3.8
million increase in non-dormant alfalfa and grain sorghum
sales in Latin America, or LATAM,
which also benefited from the tightening in the global supply of
non-dormant alfalfa as well as having an increase in grain sorghum
acres being planted due to cropping rotations, partially offset by
a $4.3 million decrease in Australian
domestic pasture sales due to flooding in key planting regions that
lowered sales in the first half of fiscal 2023, a $3.0 million decrease in revenue in the
Asia region due to logistical
delays in international shipping and COVID-related impacts in
China during the prior year that
affected distributor demand, a $1.7
million decrease in U.S. domestic alfalfa revenue due to a
decline in demand, and a $1.0 million
decrease in non-Double Team sorghum revenue.
GAAP gross margins for fiscal 2023 were 19.8%, compared to GAAP
gross margins of 8.9% in fiscal 2022. The improvement in GAAP gross
margins was primarily driven by the increased sales of the
Company's higher margin Double Team sorghum solution in
North America in addition to
improved (reduced) non-cash inventory write-downs due to better
inventory life-cycle management. Inventory write-downs during
fiscal 2023 were $2.8 million
compared to $6.4 million in fiscal
2022, when we experienced a higher level of certain inventory lots
that had deteriorated in quality and germination rates.
GAAP operating expenses for fiscal 2023 were $32.5 million, compared to $39.2 million in fiscal 2022. The $6.7 million decrease in operating expenses for
fiscal 2023 was attributed to a $2.5
million decrease in research and development expenses, a
$2.0 million decrease in selling,
general and administrative expenses, largely from a decrease in
payroll and other employee compensation related expenses as a
result of management's cost reduction efforts, a $1.5 million decrease from a goodwill impairment
charge recognized in fiscal 2022, and a $0.7
million decrease in depreciation and amortization. The
overall decrease is a result of the Company's focus on aligning its
cost structure to support its key centers of value.
Adjusted operating expenses (see Table A1) for fiscal 2023 were
$26.4 million, compared to
$32.0 million in fiscal 2022.
The $5.6 million decrease in adjusted
operating expenses for fiscal 2023 was attributed to a $2.5 million decrease in research and development
expenses, a $2.0 million decrease in
selling, general and administrative expenses, largely from a
decrease in payroll and other employee compensation related
expenses as a result of management's cost reduction efforts, and a
$1.1 million decrease from
non-recurring transaction costs.
GAAP net income for fiscal 2023 was $14.4
million, or $0.34 per basic
and diluted share, compared to GAAP net loss of $(36.4) million, or $(0.93) per basic and diluted share, for fiscal
2022.
Adjusted net loss (see Table A2) for fiscal 2023 was
$(18.5) million, or $(0.43) per basic and diluted share, excluding
interest expense - amortization of debt discount, other finance
expenses, non-recurring transaction costs, dividends accrued for
participating securities and accretion, gain on sale of business
interest, and equity in loss of equity method investee (Vision
Bioenergy), net of tax. Adjusted net loss for fiscal 2022,
excluding goodwill impairment charges, interest expense -
amortization of debt discount, the change in contingent
consideration obligation, non-recurring transaction costs, and
dividends accrued for participating securities and accretion was
$(34.7) million, or $(0.89) per basic and diluted share.
Adjusted EBITDA (see Table B) for fiscal 2023 was $(9.3) million, compared to adjusted EBITDA of
$(23.6) million for fiscal 2022.
Fiscal 2024 Guidance
S&W expects fiscal 2024 revenue to be within a range of
$76 to $82
million, representing an expected increase of 3% to 12%
compared to fiscal 2023 revenue of $73.5
million. Revenue from the Company's Double Team sorghum
solutions is expected to be $11.5 to
$14.0 million, representing an
increase of 77% to 115% compared to fiscal 2023. Adjusted EBITDA is
expected to be in the range of $(7.5)
million to $(4.0) million for
fiscal 2024, compared to adjusted EBITDA of $(9.3) million in fiscal 2023.
As the partnership with Shell is accounted for as an equity
method investment, it is not expected to have a material impact on
S&W's full-year financial results for fiscal 2024.
Conference Call
S&W Seed Company has scheduled a conference call for
Wednesday, September 27, 2023, at
11:00am ET (8:00am PT) to review these results. Interested
parties can access the conference call by dialing (844) 861-5498 or
(412) 317-6580 or can listen via a live Internet webcast, which is
available in the Investor Relations section of the Company's
website at http://www.swseedco.com/investors. A teleconference
replay of the call will be available for seven days at (877)
344-7529 or (412) 317-0088, confirmation #1861963. A webcast replay
will be available in the Investor Relations section of the
Company's website at http://www.swseedco.com/investors for 30
days.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with
accounting principles generally accepted in the United States of America ("GAAP"), we have
provided the following non-GAAP financial measures in this release
and the accompanying tables: adjusted EBITDA; adjusted operating
expenses; as well as adjusted net loss and adjusted net loss per
share. We use these non-GAAP financial measures internally to
facilitate period-to-period comparisons and analysis of our
operating performance and liquidity, and believe they are useful to
investors as a supplement to GAAP measures in analyzing, trending
and benchmarking the performance and value of our business.
However, these measures are not intended to be a substitute for
those reported in accordance with GAAP. These measures may be
different from non-GAAP financial measures used by other companies,
even when similar terms are used to identify such measures.
For reconciliations of historical non-GAAP financial measures to
the most comparable financial measures under GAAP, see Tables A1,
A2, and B accompanying this release. We have not reconciled our
guidance for adjusted EBITDA for fiscal 2024 to net income (loss)
because the reconciling line items that impact net income (loss),
including interest expense, non-cash stock-based compensation, and
foreign currency (gain) loss, among others, are uncertain or out of
our control and cannot be reasonably predicted. The actual amount
of these items during fiscal 2024 will have a significant impact on
net income (loss). Accordingly, a reconciliation of this non-GAAP
measure to its most directly comparable GAAP measure is not
available without unreasonable efforts.
In order to calculate these non-GAAP financial measures, we make
targeted adjustments to certain GAAP financial line items found on
our Consolidated Statement of Operations, backing out non-recurring
or unique items or items that we believe otherwise distort the
underlying results and trends of the ongoing business. We have
excluded the following items from one or more of our non-GAAP
financial measures for the periods presented:
Selling, general and administrative expenses; operating
expenses. We exclude from operating expenses a portion of
SG&A expense related to depreciation and amortization, non-cash
stock-based compensation, other finance expenses, and non-recurring
transaction costs. Other finance expenses represents the costs
incurred when S&W was pursuing other lenders (prior to
continuing with CIBC), which were written off in March 2023. These amounts are unrelated to our
core performance. We exclude non-recurring transaction costs from
our SG&A expense and total operating expenses to provide
investors a method to compare our operating results to prior
periods and to peer companies, as such amounts can vary
significantly based on the frequency of acquisitions and the
magnitude of acquisition expenses.
Gain on disposal of intangible assets. The gain is the
result of our transfer of certain intellectual property rights
under a license agreement to Trigall Australia as part of our
equity investment in the partnership. This is a unique item
unrelated to our core performance during any particular period. We
believe it is useful to exclude these amounts in order to better
understand our business performance and allow investors to compare
our results with peer companies.
Goodwill Impairment. The goodwill impairment charge
relates to the full impairment of our goodwill and was a result of
a decline in the market valuation of our common shares during the
fourth quarter of 2022. This amount was a non-cash charge and is
unrelated to our core performance during any particular period. We
believe it is useful to exclude these amounts in order to better
understand our business performance and allow investors to compare
our results with peer companies.
Change in contingent consideration obligation. The change
in contingent consideration obligation represents our estimated
change in the value of contingent earn-out related to the
February 2020 acquisition of Pasture
Genetics. These amounts are non-cash and are unrelated to our core
performance during any particular period. We believe it is useful
to exclude these amounts in order to better understand our business
performance and allow investors to compare our results with peer
companies.
Foreign currency loss. The foreign currency loss
represents fluctuations from changes in exchange rates that
are uncertain or out of our control and cannot be reasonably
predicted. We believe it is useful to exclude this amount in order
to better understand our business performance and allow investors
to compare our results with peer companies.
Interest expense – amortization of debt discount.
Amortization of debt discount and debt issuance costs are primarily
related to our working capital lines of credit and term loans.
These amounts are non-cash charges and are unrelated to our core
performance during any particular period. We believe it is useful
to exclude these amounts in order to better understand our business
performance and allow investors to compare our results with peer
companies.
Dividends accrued for participating securities and
accretion. Dividends accrued for participating securities and
accretion relates to dividends accrued for the Series B convertible
preferred stock and the accretion for the discount related to the
warrants issued in conjunction with the Series B convertible
preferred stock. We believe it is useful to exclude these amounts
in order to better understand our business performance and allow
investors to compare our results with peer companies.
Gain on sale of business interest. The gain on the sale
of business interest relates to the gain S&W recognized from
the Vision Bioenergy transaction, for which we have a 34%
membership interest. We believe it is useful to exclude this amount
in order to better understand our business performance and allow
investors to compare our results with peer companies.
Gain on sale of equity investment. The gain on the sale
of equity investment represents the stock sale from our Bioceres
investment. We believe it is useful to exclude this amount in order
to better understand our business performance and allow investors
to compare our results with peer companies.
Equity in loss of equity method investee (Vision Bioenergy),
net of tax. This loss represents S&W's percentage of
Vision Bioenergy's loss for the year ended June 30, 2023, as it has significant influence in
the Company. We believe it is useful to exclude this amount in
order to better understand our business performance and allow
investors to compare our results with peer companies.
Descriptions of the non-GAAP financial measures included in this
release and the accompanying tables are as follows:
Adjusted Operating Expenses. We define adjusted operating
expenses as GAAP operating expenses, adjusted to exclude
depreciation and amortization, loss on disposal of property, plant
and equipment, and one-time expenses related to our two partnership
transactions. We believe that the use of adjusted operating
expenses is useful to investors and other users of our financial
statements in evaluating our operating performance because it
provides a method to compare our operating results to prior periods
and to peer companies after making adjustments for depreciation and
amortization and amounts that are not expected to recur.
Adjusted net loss and loss per share. We define adjusted
net loss as net loss attributable to S&W Seed Company less
interest expense – amortization of debt discount, other finance
expenses, non-recurring transaction costs, change in contingent
consideration obligation, dividends accrued for participating
securities and accretion, gain on sale of business interest and
equity in loss of equity method investee (Vision Bioenergy), net of
tax. We believe that these non-GAAP financial measures provide
useful supplemental information for evaluating our operating
performance.
Adjusted EBITDA. We define adjusted EBITDA as GAAP net
loss, adjusted to exclude interest expense, net, interest expense –
amortization of debt discount, other finance expenses, provision
for (benefit from) income taxes, depreciation and amortization,
non-recurring transaction costs, non-cash stock-based compensation,
foreign currency loss, gain on disposal of intangible assets, gain
on sale of business interest, gain on sale of equity investment,
equity in loss of equity method investee (Vision Bioenergy), net of
tax, change in contingent consideration obligation, and dividends
accrued for participating securities and accretion. We believe that
the use of adjusted EBITDA is useful to investors and other users
of our financial statements in evaluating our operating performance
because it provides them with an additional tool to compare
business performance across companies and across periods. We use
adjusted EBITDA in conjunction with traditional GAAP operating
performance measures as part of our overall assessment of our
performance, for planning purposes, including the preparation of
our annual operating budget, to evaluate the effectiveness of our
business strategies and to communicate with our board of directors
concerning our financial performance. Management does not place
undue reliance on adjusted EBITDA as its only measure of operating
performance. Adjusted EBITDA should not be considered as a
substitute for other measures of financial performance reported in
accordance with GAAP.
Financial Tables
For a complete press release including financial tables, please
view online at:
https://swseedco.com/investors/press-releases/.
About S&W Seed Company
Founded in 1980, S&W
Seed Company is a global multi-crop, middle-market agricultural
company headquartered in Longmont,
Colorado. S&W's vision is to be the world's preferred
proprietary seed company which supplies a range of sorghum, forage
and specialty crop products that supports the growing global demand
for animal proteins and healthier consumer diets. S&W is a
global leader in proprietary alfalfa and sorghum seeds with
significant research and development, production and distribution
capabilities. S&W also has a commercial presence in pasture and
sunflower seeds, and through a partnership, is focused on
sustainable biofuel feedstocks primarily within camelina. For more
information, please visit www.swseedco.com.
Safe Harbor Statement
This release contains
"forward-looking statements" within the meaning of Section 27A of
the Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended and such
forward-looking statements are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
"Forward-looking statements" describe future expectations, plans,
results, or strategies and are generally preceded by words such as
"ability," "believe," "may," "future," "plan," "should" or
"expects." Forward-looking statements in this release include, but
are not limited to: our guidance on revenue and adjusted EBITDA for
the fiscal year ending June 30, 2024;
the expected timing of initial grain production by the partnership;
the anticipated impact of the partnership on our business and
future prospects, including our financial outlook going forward;
the ability of Shell's cash contributions to the partnership
company to fund the partnership's operations for a few years; our
plans for the advancement of our business strategy; our expected
increases in sorghum acre share in fiscal 2024; our success in
developing stackable traits for prussic acid-free and insect
tolerance in our sorghum products and in becoming a leading
technology provider in sorghum; the success of our operational
initiatives to drive the business towards profitability; and the
outcome and timing of our evaluation of potential avenues to unlock
what we see as unrecognized value in our international operations.
You are cautioned that such statements are subject to a multitude
of risks and uncertainties that could cause future circumstances,
events, or results to differ materially from those projected in the
forward-looking statements, including risks and uncertainties
related to: market adoption of products designed to
support the energy transition and customer demand for the
partnership's products; the effects of unexpected weather and
geopolitical and macroeconomic events, such as global inflation,
bank failures, supply chain disruptions, uncertain market
conditions, the armed conflict in Sudan, and the ongoing military conflict
between Russia and Ukraine and related sanctions, on our business
and operations as well as those of the partnership, and the extent
to which they disrupt the local and global economies, as well as
our business and the businesses of the partnership, our customers,
distributors and suppliers; sufficiency of the partnership's cash
and access to capital in order to develop its business; the
sufficiency of our cash and access to capital in order to meet our
liquidity needs, including our ability to pay our growers as our
payment obligations come due; our need to comply with the financial
covenants included in our loan agreements, refinance certain of our
credit facilities and raise additional capital in the future and
our ability to continue as a "going concern"; our potential
transactions under negotiation may not result in consummated
transactions; changes in market conditions, including any
unexpected decline in commodity prices, may harm our results of
operations and revenue outlook; our proprietary seed trait
technology products, including Double Team™, may not yield their
anticipated benefits, including with respect to their impact on
revenues and gross margins; changes in the competitive
landscape and the introduction of competitive products may
negatively impact our results of operations; demand for our Double
Team™ sorghum solution may not be as strong as expected; our
business strategic initiatives may not achieve the expected
results; previously experienced logistical challenges in shipping
and transportation of our products may become amplified, delaying
our ability to recognize revenue and decreasing our gross margins;
we may be unable to achieve our efforts to drive growth, improve
gross margins and reduce operating expenses; the inherent
uncertainty and significant judgments and assumptions underlying
our financial guidance for fiscal 2024; and the risks associated
with our ability to successfully optimize and commercialize our
business. These and other risks are identified in our filings with
the Securities and Exchange Commission, including, without
limitation, our Annual Report on Form 10-K for the year ended
June 30, 2023 and in other filings
subsequently made by us with the Securities and Exchange
Commission. All forward-looking statements contained in this press
release speak only as of the date on which they were made and are
based on management's assumptions and estimates as of such date. We
do not undertake any obligation to publicly update any
forward-looking statements, whether as a result of the receipt of
new information, the occurrence of future events or
otherwise.
S & W SEED
COMPANY
|
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
Year
Ended
|
|
|
|
June
30.
|
|
|
|
June
30,
|
|
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
|
|
2022
|
|
Revenue
|
|
$
|
23,055,316
|
|
|
$
|
20,004,331
|
|
|
|
$
|
73,521,291
|
|
|
$
|
71,354,298
|
|
Cost of
revenue
|
|
|
20,201,509
|
|
|
|
21,141,616
|
|
|
|
|
58,983,210
|
|
|
|
64,999,136
|
|
Gross profit
|
|
|
2,853,807
|
|
|
|
(1,137,285)
|
|
|
|
|
14,538,081
|
|
|
|
6,355,162
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
5,141,568
|
|
|
|
6,209,945
|
|
|
|
|
22,430,687
|
|
|
|
24,470,730
|
|
Research and
development expenses
|
|
|
1,010,881
|
|
|
|
1,700,470
|
|
|
|
|
5,237,772
|
|
|
|
7,710,642
|
|
Depreciation and
amortization
|
|
|
1,071,265
|
|
|
|
1,375,767
|
|
|
|
|
4,768,809
|
|
|
|
5,460,321
|
|
Disposal of property,
plant and equipment loss (gain)
|
|
|
11,422
|
|
|
|
(45,045)
|
|
|
|
|
44,335
|
|
|
|
(31,088)
|
|
Goodwill impairment
charges
|
|
|
—
|
|
|
|
1,548,324
|
|
|
|
|
—
|
|
|
|
1,548,324
|
|
Total operating
expenses
|
|
|
7,235,136
|
|
|
|
10,789,461
|
|
|
|
|
32,481,603
|
|
|
|
39,158,929
|
|
Loss from
operations
|
|
|
(4,381,329)
|
|
|
|
(11,926,746)
|
|
|
|
|
(17,943,522)
|
|
|
|
(32,803,767)
|
|
Other (income)
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
loss
|
|
|
160,267
|
|
|
|
209,950
|
|
|
|
|
859,696
|
|
|
|
777,913
|
|
Government grant
income
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(1,444,044)
|
|
|
|
—
|
|
Gain on disposal of
intangible assets
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(1,796,252)
|
|
|
|
—
|
|
Gain on sale of
business interest
|
|
|
156,404
|
|
|
|
—
|
|
|
|
|
(38,167,102)
|
|
|
|
—
|
|
Gain on sale of equity
investment
|
|
|
—
|
|
|
|
—
|
|
|
|
|
(32,030)
|
|
|
|
(68,967)
|
|
Change in contingent
consideration obligation
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
(714,429)
|
|
Interest expense -
amortization of debt discount
|
|
|
416,341
|
|
|
|
238,306
|
|
|
|
|
1,975,938
|
|
|
|
898,497
|
|
Interest expense -
convertible debt and other
|
|
|
1,141,528
|
|
|
|
598,183
|
|
|
|
|
4,184,067
|
|
|
|
2,333,575
|
|
Other (income)
expense
|
|
|
(45,528)
|
|
|
|
(107,527)
|
|
|
|
|
1,552,154
|
|
|
|
(121,273)
|
|
Income (loss) before
income taxes
|
|
|
(6,210,341)
|
|
|
|
(12,865,658)
|
|
|
|
|
14,924,051
|
|
|
|
(35,909,083)
|
|
Provision for (benefit
from) income taxes
|
|
|
120,438
|
|
|
|
(1,213)
|
|
|
|
|
(763,639)
|
|
|
|
413,423
|
|
Income (loss) before
equity in net earnings of affiliates
|
|
|
(6,330,779)
|
|
|
|
(12,864,445)
|
|
|
|
|
15,687,690
|
|
|
|
(36,322,506)
|
|
Equity in loss of
equity method investees, net of tax
|
|
|
841,637
|
|
|
|
—
|
|
|
|
|
1,252,330
|
|
|
|
—
|
|
Net income
(loss)
|
|
|
(7,172,416)
|
|
|
|
(12,864,445)
|
|
|
|
|
14,435,360
|
|
|
|
(36,322,506)
|
|
(Loss) income
attributable to noncontrolling interests
|
|
|
41,924
|
|
|
|
30,905
|
|
|
|
|
25,282
|
|
|
|
72,844
|
|
Net income (loss)
attributable to S&W Seed Company
|
|
$
|
(7,214,340)
|
|
|
$
|
(12,895,350)
|
|
|
|
$
|
14,410,078
|
|
|
$
|
(36,395,350)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Calculation of net
income (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to S&W Seed Company
|
|
$
|
(7,214,340)
|
|
|
$
|
(12,895,350)
|
|
|
|
$
|
14,410,078
|
|
|
$
|
(36,395,350)
|
|
Dividends accrued for
participating securities and accretion
|
|
|
(120,070)
|
|
|
|
(113,103)
|
|
|
|
|
(469,329)
|
|
|
|
(166,298)
|
|
Net income (loss)
attributable to common shareholders
|
|
$
|
(7,334,410)
|
|
|
$
|
(13,008,453)
|
|
|
|
$
|
13,940,749
|
|
|
$
|
(36,561,648)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
attributable to S&W Seed Company per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.17)
|
|
|
$
|
(0.31)
|
|
|
|
$
|
0.34
|
|
|
$
|
(0.93)
|
|
Diluted
|
|
$
|
(0.17)
|
|
|
$
|
(0.31)
|
|
|
|
$
|
0.34
|
|
|
$
|
(0.93)
|
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
42,968,218
|
|
|
|
41,821,784
|
|
|
|
|
42,752,759
|
|
|
|
39,133,681
|
|
Diluted
|
|
|
43,121,498
|
|
|
|
41,821,784
|
|
|
|
|
42,935,551
|
|
|
|
39,133,681
|
|
TABLE
A1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&W SEED
COMPANY
|
ITEMIZED
RECONCILIATION BETWEEN OPERATING EXPENSES AND NON-GAAP ADJUSTED
OPERATING EXPENSES
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
|
Year Ended June
30,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
|
|
2022
|
|
|
Operating
expenses
|
|
$
|
7,235,136
|
|
|
$
|
10,789,461
|
|
|
|
$
|
32,481,603
|
|
|
$
|
39,158,929
|
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
(1,071,265)
|
|
|
|
(1,375,767)
|
|
|
|
|
(4,768,809)
|
|
|
|
(5,460,321)
|
|
|
Non-recurring transaction costs
|
|
|
(274,434)
|
|
|
|
(138,489)
|
|
|
|
|
(1,240,274)
|
|
|
|
(138,489)
|
|
|
Goodwill impairment
|
|
|
—
|
|
|
|
(1,548,324)
|
|
|
|
|
—
|
|
|
|
(1,548,324)
|
|
|
Loss
(gain) on disposal of property, plant and equipment
|
|
|
(11,422)
|
|
|
|
45,045
|
|
|
|
|
(44,335)
|
|
|
|
31,088
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
operating expenses
|
|
$
|
5,878,015
|
|
|
$
|
7,771,926
|
|
|
|
$
|
26,428,185
|
|
|
$
|
32,042,883
|
|
|
TABLE
A2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&W SEED
COMPANY
|
ITEMIZED
RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED NET INCOME
(LOSS)
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
|
Year Ended June
30,
|
|
|
|
|
2023
|
|
|
2022
|
|
|
|
2023
|
|
|
2022
|
|
|
Net income (loss)
attributable to S&W Seed Company
|
|
$
|
(7,214,340)
|
|
|
$
|
(12,895,350)
|
|
|
|
$
|
14,410,078
|
|
|
$
|
(36,395,350)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
charges
|
|
|
—
|
|
|
|
1,548,324
|
|
|
|
|
—
|
|
|
|
1,548,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense -
amortization of debt discount
|
|
|
416,341
|
|
|
|
238,306
|
|
|
|
|
1,975,938
|
|
|
|
898,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other finance
expenses
|
|
|
—
|
|
|
|
—
|
|
|
|
|
1,458,168
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring
transaction costs
|
|
|
274,434
|
|
|
|
138,489
|
|
|
|
|
1,240,274
|
|
|
|
138,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in contingent
consideration obligation
|
|
|
—
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
(714,429)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends accrued for
participating securities and accretion
|
|
|
(120,070)
|
|
|
|
(113,103)
|
|
|
|
|
(469,329)
|
|
|
|
(166,298)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
business interest
|
|
|
156,404
|
|
|
|
—
|
|
|
|
|
(38,167,102)
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss of
equity method investee (Vision Bioenergy), net of tax
|
|
|
765,808
|
|
|
|
—
|
|
|
|
|
1,089,346
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net
income (loss)
|
|
$
|
(5,721,423)
|
|
|
$
|
(11,083,334)
|
|
|
|
$
|
(18,462,627)
|
|
|
$
|
(34,690,767)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net
income (loss) attributable to
S&W Seed Company per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.13)
|
|
|
$
|
(0.27)
|
|
|
|
$
|
(0.43)
|
|
|
$
|
(0.89)
|
|
|
Diluted
|
|
$
|
(0.13)
|
|
|
$
|
(0.27)
|
|
|
|
$
|
(0.43)
|
|
|
$
|
(0.89)
|
|
|
Weighted average number
of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
42,968,218
|
|
|
|
41,821,784
|
|
|
|
|
42,752,759
|
|
|
|
39,133,681
|
|
|
Diluted
|
|
|
43,121,498
|
|
|
|
41,821,784
|
|
|
|
|
42,935,551
|
|
|
|
39,133,681
|
|
|
TABLE
B
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S&W SEED
COMPANY
|
|
|
ITEMIZED
RECONCILIATION BETWEEN NET INCOME (LOSS) AND NON-GAAP ADJUSTED
EBITDA
|
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
|
|
|
June
30.
|
|
June
30,
|
|
|
|
|
|
2023
|
|
|
|
2022
|
|
|
|
2023
|
|
|
|
2022
|
|
|
Net income (loss)
attributable to S&W Seed Company
|
|
$
|
|
(7,214,340)
|
|
|
$
|
|
(12,895,350)
|
|
|
$
|
|
14,410,078
|
|
|
$
|
|
(36,395,350)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense,
net
|
|
|
|
1,141,528
|
|
|
|
|
490,656
|
|
|
|
|
4,184,067
|
|
|
|
|
2,212,302
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense -
amortization of debt discount
|
|
|
|
416,341
|
|
|
|
|
238,306
|
|
|
|
|
1,975,938
|
|
|
|
|
898,497
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other finance expenses
(Other expense)
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
1,458,168
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision for (benefit
from) income taxes
|
|
|
|
120,438
|
|
|
|
|
(1,213)
|
|
|
|
|
(763,639)
|
|
|
|
|
413,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
|
1,071,265
|
|
|
|
|
1,375,767
|
|
|
|
|
4,768,809
|
|
|
|
|
5,460,321
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Goodwill impairment
charges
|
|
|
|
—
|
|
|
|
|
1,548,324
|
|
|
|
|
—
|
|
|
|
|
1,548,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-recurring
transaction costs
|
|
|
|
274,434
|
|
|
|
|
138,489
|
|
|
|
|
1,240,274
|
|
|
|
|
138,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-cash stock-based
compensation
|
|
|
|
549,522
|
|
|
|
|
445,372
|
|
|
|
|
1,932,416
|
|
|
|
|
2,267,180
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
loss
|
|
|
|
160,267
|
|
|
|
|
209,950
|
|
|
|
|
859,696
|
|
|
|
|
777,913
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on disposal of
intangible assets
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(1,796,252)
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of
business interest
|
|
|
|
156,404
|
|
|
|
|
—
|
|
|
|
|
(38,167,102)
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale of equity
investment
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(32,030)
|
|
|
|
|
(68,967)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity in loss of
equity method investee (Vision Bioenergy), net of tax
|
|
|
|
765,808
|
|
|
|
|
—
|
|
|
|
|
1,089,346
|
|
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in contingent
consideration obligation
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
—
|
|
|
|
|
(714,429)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends accrued for
participating securities and accretion
|
|
|
|
(120,070)
|
|
|
|
|
(113,103)
|
|
|
|
|
(469,329)
|
|
|
|
|
(166,298)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted
EBITDA
|
|
$
|
|
(2,678,403)
|
|
|
$
|
|
(8,562,802)
|
|
|
$
|
|
(9,309,561)
|
|
|
$
|
|
(23,628,595)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
S & W SEED
COMPANY
|
|
CONSOLIDATED BALANCE
SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As of June
30,
|
|
|
|
|
2023
|
|
|
|
2022
|
|
ASSETS
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
|
3,398,793
|
|
|
$
|
|
2,056,508
|
|
Accounts receivable,
net
|
|
|
|
24,622,727
|
|
|
|
|
19,051,236
|
|
Notes receivable,
net
|
|
|
|
6,846,897
|
|
|
|
|
—
|
|
Inventories,
net
|
|
|
|
45,098,268
|
|
|
|
|
54,515,894
|
|
Prepaid expenses and
other current assets
|
|
|
|
4,099,027
|
|
|
|
|
1,605,987
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
84,065,712
|
|
|
|
|
77,229,625
|
|
Property, plant and
equipment, net
|
|
|
|
10,082,168
|
|
|
|
|
16,871,669
|
|
Intellectual property,
net
|
|
|
|
21,650,534
|
|
|
|
|
23,035,925
|
|
Other Intangibles,
net
|
|
|
|
8,082,325
|
|
|
|
|
11,059,902
|
|
Right of use asset -
operating leases
|
|
|
|
2,983,303
|
|
|
|
|
4,094,253
|
|
Equity method
investments
|
|
|
|
23,059,705
|
|
|
|
|
367,970
|
|
Other assets
|
|
|
|
2,066,081
|
|
|
|
|
1,128,507
|
|
TOTAL
ASSETS
|
|
$
|
|
151,989,828
|
|
|
$
|
|
133,787,851
|
|
LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
|
13,312,180
|
|
|
$
|
|
15,901,116
|
|
Deferred
revenue
|
|
|
|
464,707
|
|
|
|
|
605,960
|
|
Accrued expenses and
other current liabilities
|
|
|
|
8,804,456
|
|
|
|
|
10,788,740
|
|
Current portion of
working capital lines of credit, net
|
|
|
|
44,900,779
|
|
|
|
|
12,678,897
|
|
Current portion of
long-term debt, net
|
|
|
|
3,808,761
|
|
|
|
|
8,316,783
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
71,290,883
|
|
|
|
|
48,291,496
|
|
Long-term working
capital lines of credit, less current portion
|
|
|
|
—
|
|
|
|
|
21,703,286
|
|
Long-term debt, net,
less current portion
|
|
|
|
4,499,334
|
|
|
|
|
3,992,540
|
|
Other non-current
liabilities
|
|
|
|
2,102,030
|
|
|
|
|
3,587,041
|
|
TOTAL
LIABILITIES
|
|
|
|
77,892,247
|
|
|
|
|
77,574,363
|
|
MEZZANINE
EQUITY
|
|
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value; 3,323 shares authorized; 1,695 issued and
outstanding at June 30, 2023 and June 30, 2022
|
|
|
|
5,274,148
|
|
|
|
|
4,804,819
|
|
TOTAL MEZZANINE
EQUITY
|
|
|
|
5,274,148
|
|
|
|
|
4,804,819
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value; 75,000,000 shares authorized; 43,004,011 issued
and 42,979,011 outstanding at June 30, 2023; 42,608,758 issued and
42,583,758
outstanding at June 30, 2022
|
|
|
|
43,004
|
|
|
|
|
42,609
|
|
Treasury stock, at
cost, 25,000 shares
|
|
|
|
(134,196)
|
|
|
|
|
(134,196)
|
|
Additional paid-in
capital
|
|
|
|
167,768,104
|
|
|
|
|
163,892,575
|
|
Accumulated
deficit
|
|
|
|
(91,932,808)
|
|
|
|
|
(105,873,557)
|
|
Accumulated other
comprehensive loss
|
|
|
|
(6,987,791)
|
|
|
|
|
(6,560,600)
|
|
Noncontrolling
interests
|
|
|
|
67,120
|
|
|
|
|
41,838
|
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
|
68,823,433
|
|
|
|
|
51,408,669
|
|
TOTAL LIABILITIES,
MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY
|
|
$
|
|
151,989,828
|
|
|
$
|
|
133,787,851
|
|
S & W SEED
COMPANY
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended June
30,
|
|
|
|
|
2023
|
|
|
|
2022
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
|
14,435,360
|
|
|
$
|
|
(36,322,506)
|
|
Adjustments to
reconcile net loss from operating activities to net cash used in
operating activities:
|
|
|
|
|
|
|
|
|
Stock-based
compensation
|
|
|
|
1,932,416
|
|
|
|
|
2,267,180
|
|
Allowance for doubtful
accounts
|
|
|
|
11,659
|
|
|
|
|
216,466
|
|
Inventory
write-down
|
|
|
|
2,778,414
|
|
|
|
|
6,365,542
|
|
Depreciation and
amortization
|
|
|
|
4,768,809
|
|
|
|
|
5,460,321
|
|
Loss on disposal of
property, plant and equipment
|
|
|
|
44,335
|
|
|
|
|
(31,088)
|
|
Gain on disposal of
intangible assets
|
|
|
|
(1,796,252)
|
|
|
|
|
—
|
|
Gain on sale of
business interest
|
|
|
|
(38,167,102)
|
|
|
|
|
—
|
|
Gain on sale of equity
investment
|
|
|
|
(32,030)
|
|
|
|
|
—
|
|
Equity in loss of
equity method investees, net of tax
|
|
|
|
1,252,330
|
|
|
|
|
—
|
|
Government grant
income
|
|
|
|
(1,444,044)
|
|
|
|
|
—
|
|
Change in deferred tax
provision
|
|
|
|
(806,479)
|
|
|
|
|
78,954
|
|
Change in foreign
exchange contracts
|
|
|
|
(63,889)
|
|
|
|
|
971,386
|
|
Foreign currency
transactions
|
|
|
|
46,283
|
|
|
|
|
—
|
|
Change in contingent
consideration obligation
|
|
|
|
—
|
|
|
|
|
(714,429)
|
|
Amortization of debt
discount
|
|
|
|
1,975,938
|
|
|
|
|
898,497
|
|
Accretion of note
receivable
|
|
|
|
(99,763)
|
|
|
|
|
—
|
|
Changes in:
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
|
|
|
(5,840,310)
|
|
|
|
|
(422,335)
|
|
Inventories
|
|
|
|
5,755,856
|
|
|
|
|
688,903
|
|
Prepaid expenses and
other current assets
|
|
|
|
84,605
|
|
|
|
|
(104,442)
|
|
Other non-current
asset
|
|
|
|
(27,950)
|
|
|
|
|
(137,320)
|
|
Accounts
payable
|
|
|
|
(2,151,619)
|
|
|
|
|
977,036
|
|
Deferred
revenue
|
|
|
|
(139,826)
|
|
|
|
|
223,586
|
|
Accrued expenses and
other current liabilities
|
|
|
|
(1,344,945)
|
|
|
|
|
1,226,353
|
|
Other non-current
liabilities
|
|
|
|
(149,946)
|
|
|
|
|
(15,243)
|
|
Net cash used in
operating activities
|
|
|
|
(18,978,150)
|
|
|
|
|
(18,373,139)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
|
|
Proceeds from sale of
business interest
|
|
|
|
7,000,000
|
|
|
|
|
—
|
|
Proceeds from
partnership transaction
|
|
|
|
2,000,000
|
|
|
|
|
—
|
|
Proceeds from disposal
of property, plant and equipment
|
|
|
|
1,417
|
|
|
|
|
200,605
|
|
Net proceeds from sale
of equity investment
|
|
|
|
400,000
|
|
|
|
|
988,504
|
|
Additions to property,
plant and equipment
|
|
|
|
(856,716)
|
|
|
|
|
(2,098,535)
|
|
Capital contributions
to partnerships
|
|
|
|
(172,917)
|
|
|
|
|
—
|
|
Net cash provided by
(used in) investing activities
|
|
|
|
8,371,784
|
|
|
|
|
(909,426)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
|
|
Net proceeds from sale
of common stock
|
|
|
|
128,778
|
|
|
|
|
11,777,690
|
|
Issuance of common
stock for cash upon exercise of stock options
|
|
|
|
1,994
|
|
|
|
|
—
|
|
Net proceeds from sale
of Series B convertible preferred stock
|
|
|
|
—
|
|
|
|
|
5,000,250
|
|
Taxes paid related to
net share settlements of stock-based compensation awards
|
|
|
|
(82,165)
|
|
|
|
|
(192,545)
|
|
Borrowings and
repayments on lines of credit, net
|
|
|
|
9,857,653
|
|
|
|
|
1,770,219
|
|
Borrowings of long-term
debt
|
|
|
|
4,208,460
|
|
|
|
|
868,372
|
|
Repayments of long-term
debt
|
|
|
|
(1,743,514)
|
|
|
|
|
(1,392,533)
|
|
Debt issuance
costs
|
|
|
|
(421,538)
|
|
|
|
|
(692,779)
|
|
Net cash provided by
financing activities
|
|
|
|
11,949,668
|
|
|
|
|
17,138,674
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
|
|
(1,017)
|
|
|
|
|
672,462
|
|
NET DECREASE IN CASH
& CASH EQUIVALENTS
|
|
|
|
1,342,285
|
|
|
|
|
(1,471,429)
|
|
CASH AND CASH
EQUIVALENTS, beginning of the period
|
|
|
|
2,056,508
|
|
|
|
|
3,527,937
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
|
$
|
|
3,398,793
|
|
|
$
|
|
2,056,508
|
|
Company
Contact:
|
Investor Contact:
|
Mark Herrmann,
Chief Executive Officer
|
Robert Blum
|
S&W Seed Company
|
Lytham Partners, LLC
|
Phone: (720) 593-3570
|
Phone: (602) 889-9700
|
www.swseedco.com
|
sanw@lythampartners.com
|
|
www.lythampartners.com
|
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SOURCE S&W Seed Company