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Published: 2022-02-10 00:00:00 ET
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EXHIBIT 99.1

 

S&W Announces Second Quarter Fiscal 2022 Financial Results

 

For Immediate Release

Company Contact:Investor Contact:

Betsy Horton, Chief Financial Officer Robert Blum

S&W Seed CompanyLytham Partners, LLC
Phone: (720) 593-3570Phone: (602) 889-9700
www.swseedco.comsanw@lythampartners.comwww.lythampartners.com

LONGMONT, Colorado – February 10, 2022 – S&W Seed Company (Nasdaq: SANW) today announced financial results for the second quarter of fiscal year 2022 ended December 31, 2021.

 

“We are gaining increased enthusiasm for the outlook of our Double Team sorghum trait technology solution, due to both the strong demand from farmers for the product and an increase in U.S. sorghum acres being planted during the most recent season,” commented Mark Wong, President & CEO of S&W Seed Company. “The USDA recently reported a 20% increase in U.S. sorghum acres planted this season over last season, which we believe is due to strong demand domestically and internationally for the water-smart, resilient climate crop. We believe the introduction of our unique non-GMO herbicide tolerant solution will continue to benefit the utilization of the crop in years to come. We are currently in the process of maximizing our seed production capabilities this upcoming season to meet the anticipated growing farmer demand.”

 

Wong continued, “The December ending quarter was characterized by our traditional seasonality, which saw the majority of sales consisting of lower margin international alfalfa seed sales. Operationally, we remain focused on preparing for the key upcoming selling season, which we expect will consist of sales of our high margin sorghum products in the U.S., while also restructuring key elements of the company to improve our financial results going forward. We look forward to the second half of fiscal 2022 as we remain on track to achieve our previously stated revenue expectations for the year and improve overall gross margins.”

 

Financial Results

Core Revenue (which we define as total revenue, excluding product revenue attributable to Pioneer) for the second quarter of fiscal 2022 was $12.6 million, compared to Core Revenue for the second quarter of fiscal 2021 of $11.0 million, an increase of $1.6 million or 14.5%. Due to continued logistical challenges, approximately $3.0 million of revenue that the Company originally expected to recognize in the second quarter of fiscal 2022 will instead be recognized in the third quarter of fiscal 2022.

As announced in May 2019, S&W entered into a termination agreement and an alfalfa license agreement with Pioneer Hi-Bred International, a subsidiary of Corteva Agriscience, to replace its prior alfalfa


distribution agreement with Pioneer. Due to these agreements with Pioneer, S&W discloses Core Revenue as a metric to track performance of its business for periods in which product revenue attributable to Pioneer is reflected. The increase in Core Revenue for the second quarter of fiscal 2022 can be primarily attributed to growth in the Middle East, Argentina and South Africa regions.

Total revenue for the second quarter of fiscal 2022 was $12.6 million, compared to total revenue for the second quarter of fiscal 2021 of $15.1 million. As of March 31, 2021, S&W had fully recorded all revenue from Pioneer under the May 2019 agreement. During the three months ended December 31, 2021 S&W recorded no sales to Pioneer, compared to $4.1 million for the three months ended December 31, 2020.

GAAP gross margins during the second quarter of fiscal 2022 were 13.1% compared to GAAP gross margins of 13.5% in the second quarter of fiscal 2021. Adjusted gross margins, excluding the impact of inventory write-downs (see Table A1), were 16.6% in the second quarter of fiscal 2022 compared to 13.8% in the second quarter of fiscal 2021.

GAAP operating expenses for the second quarter of fiscal 2022 were $10.6 million, compared to $9.4 million in the second quarter of fiscal 2021. The increase in operating expenses for the second quarter of fiscal 2021 can be attributed to $1.2 million increase in employee and severance related expenses.

GAAP net loss for the second quarter of fiscal 2022 was $(9.8) million, or $(0.25) per basic and diluted share, compared to GAAP net loss of $(8.5) million, or $(0.25) per basic and diluted share, in the second quarter of fiscal 2021.

Adjusted net loss (see Table A2) for the second quarter of fiscal 2022 was $(10.0) million, or $(0.26) per basic and diluted share, excluding change in contingent consideration obligation, and interest expense – amortization of debt discount. Adjusted net loss (see Table A2) for the second quarter of fiscal 2021, excluding change in contingent consideration obligation and interest expense – amortization of debt discount, was $(7.9) million, or $(0.23) per basic and diluted share.

Adjusted EBITDA (see Table B) for the second quarter of fiscal 2022 was $(6.5) million, compared to adjusted EBITDA of $(5.5) million in the second quarter of fiscal 2021.

Fiscal 2022 Revenue Guidance

S&W continues to expect fiscal 2022 Core Revenue and Total Revenue to be within a range of $80 to $85 million, representing an expected increase of 15% to 20% compared to fiscal 2021 Core Revenue of $69.8 million.

Conference Call

S&W Seed Company has scheduled a conference call for Thursday, February 10, 2021, at 11:00 am ET (8:00 am 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 three days at (877) 344-7529 or (412) 317-0088, confirmation #4299089. 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 gross margins; adjusted net loss; adjusted net loss per share; and adjusted EBITDA. 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 A and B accompanying this release.

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 non-recurring transaction expenses related to acquisitions. Such acquisition-related expenses include non-recurring transaction fees, due diligence costs and other direct costs associated with our acquisitions. These amounts are unrelated to our core performance during any particular period and are impacted by the timing of the acquisition. We exclude acquisition-related expenses 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.

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.

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.

Non-GAAP Tax Rate.  The estimated non-GAAP effective tax rate adjusts the tax effect to quantify the tax consequences of the excluded non-GAAP items.

Descriptions of the non-GAAP financial measures included in this release and the accompanying tables are as follows:

 

Adjusted gross margins.  We define adjusted gross margins as gross margins, adjusted to exclude the impact of inventory write-downs. We believe that the use of adjusted gross margins 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 amounts that can vary significantly from period to period.

Adjusted net loss and loss per share.  We define non-GAAP net loss as net loss less non-recurring transaction costs, change in contingent consideration obligation and interest expense - amortization of debt discount.  However, in order to provide a complete picture of our recurring core business operating results, we also exclude from non-GAAP net loss the tax effects of these adjustments. We used an estimated Non-GAAP Tax Rate that we believe would be applied had our income approximated the non-GAAP net loss for the presented periods. We caution investors that the tax effects of these adjustments are based on management's estimates. 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 non-recurring transaction costs from SG&A, depreciation and amortization, non-cash stock-based compensation, foreign currency (gain) loss, change in contingent consideration obligation, interest expense – amortization of debt discount, interest expense, and provision for income taxes. 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 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 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, sorghum and pasture seeds, with significant research and development, production and distribution capabilities. S&W’s product portfolio also includes hybrid sunflower and wheat and the company is utilizing its research and breeding expertise to develop and produce stevia, the all-natural, zero calorie sweetener for the food and beverage industry. 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 “may,” “future,” “plan” or “planned,” “will” or “should,” “expected,” “anticipates,” “draft,” “eventually” or “projected.” Forward-looking statements in this release include, but are not limited to: our belief regarding continued benefit our Double Team sorghum solution will have on increased sorghum acreage in future years; anticipated farmer demand for this sorghum solution; expected mix of sales in upcoming selling season; our guidance on Core Revenue and Total Revenue for the fiscal year ending June 30, 2022 as well as anticipated improvements in gross profits; and our plans for the advancement of our business strategy.  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: the effects of the COVID-19 pandemic on our business and operations; risks related to our need to raise additional capital in the future and our ability to continue as a “going concern”; 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 may not yield their anticipated benefits; 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 initially 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; 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, 2021 and in other filings subsequently made by the Company 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

(UNAUDITED)

 

 

 

Three Months Ended

 

 

Six Months Ended

 

 

 

 

 

December 31,

 

 

December 31,

 

 

 

 

 

2021

 

 

 

2020

 

 

2021

 

 

 

2020

 

 

 

Revenue

 

$

12,631,409

 

 

 

$

15,051,331

 

 

$

28,163,090

 

 

 

$

28,906,717

 

 

 

Cost of revenue

 

 

10,971,045

 

 

 

 

13,013,171

 

 

 

23,376,057

 

 

 

 

25,087,625

 

 

 

Gross profit

 

 

1,660,364

 

 

 

 

2,038,160

 

 

 

4,787,033

 

 

 

 

3,819,092

 

 

 

Operating expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

7,091,093

 

 

 

 

5,920,286

 

 

 

12,678,727

 

 

 

 

10,605,030

 

 

 

Research and development expenses

 

 

2,110,413

 

 

 

 

2,109,303

 

 

 

4,105,541

 

 

 

 

4,125,989

 

 

 

Depreciation and amortization

 

 

1,373,653

 

 

 

 

1,411,890

 

 

 

2,704,698

 

 

 

 

2,789,978

 

 

 

Gain on disposal of property, plant and equipment

 

 

(17,773

)

 

 

 

(41,068

)

 

 

(35,840

)

 

 

 

(42,068

)

 

 

Total operating expenses

 

 

10,557,386

 

 

 

 

9,400,411

 

 

 

19,453,126

 

 

 

 

17,478,929

 

 

 

Loss from operations

 

 

(8,897,022

)

 

 

 

(7,362,251

)

 

 

(14,666,093

)

 

 

 

(13,659,837

)

 

 

Other expense

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency gain

 

 

258,482

 

 

 

 

(203,770

)

 

 

421,028

 

 

 

 

(104,553

)

 

 

Change in contingent consideration obligation

 

 

(466,376

)

 

 

 

330,699

 

 

 

(528,630

)

 

 

 

435,519

 

 

 

Interest expense - amortization of debt discount

 

 

221,196

 

 

 

 

257,523

 

 

 

413,391

 

 

 

 

367,660

 

 

 

Interest expense

 

 

613,465

 

 

 

 

606,059

 

 

 

1,131,950

 

 

 

 

1,178,342

 

 

 

Loss before income taxes

 

 

(9,523,789

)

 

 

 

(8,352,762

)

 

 

(16,103,832

)

 

 

 

(15,536,805

)

 

 

Provision for income taxes

 

 

257,776

 

 

 

 

42,480

 

 

 

91,974

 

 

 

 

44,312

 

 

 

Net loss

 

$

(9,781,565

)

 

 

$

(8,395,242

)

 

$

(16,195,806

)

 

 

$

(15,581,117

)

 

 

Net income (loss) attributed to noncontrolling interests

 

 

13,537

 

 

 

 

71,210

 

 

 

(729

)

 

 

 

58,095

 

 

 

Net loss attributable to S&W Seed Company

 

$

(9,795,102

)

 

 

$

(8,466,452

)

 

$

(16,195,077

)

 

 

$

(15,639,212

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net loss attributable to S&W Seed Company per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.25

)

 

 

$

(0.25

)

 

$

(0.43

)

 

 

$

(0.47

)

 

 

Diluted

 

$

(0.25

)

 

 

$

(0.25

)

 

$

(0.43

)

 

 

$

(0.47

)

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

38,461,049

 

 

 

 

33,547,868

 

 

 

37,617,457

 

 

 

 

33,498,952

 

 

 

Diluted

 

 

38,461,049

 

 

 

 

33,547,868

 

 

 

37,617,457

 

 

 

 

33,498,952

 

 

 

 

 

 


 

 

 

 

TABLE A1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&W SEED COMPANY

ITEMIZED RECONCILIATION BETWEEN GROSS PROFIT AND NON-GAAP ADJUSTED GROSS PROFIT

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Six Months Ended       December 31,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Gross profit

 

$

1,660,364

 

 

$

2,038,160

 

 

$

4,787,033

 

 

$

3,819,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Inventory write-downs

 

 

435,035

 

 

 

37,251

 

 

 

742,035

 

 

 

945,748

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted gross profit

 

$

2,095,399

 

 

$

2,075,411

 

 

$

5,529,068

 

 

$

4,764,840

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted gross margin

 

 

16.6

%

 

 

13.8

%

 

 

19.6

%

 

 

16.5

%

 

 

 

TABLE A2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

S&W SEED COMPANY

ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED NET LOSS

(UNAUDITED)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended December 31,

 

 

Six Months Ended       December 31,

 

 

 

 

2021

 

 

2020

 

 

2021

 

 

2020

 

 

Net loss attributable to S&W Seed Company

 

$

(9,795,102

)

 

$

(8,466,452

)

 

$

(16,195,077

)

 

$

(15,639,212

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring transaction costs

 

 

-

 

 

 

-

 

 

 

-

 

 

 

20,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in contingent consideration obligation

 

 

(466,376

)

 

 

330,699

 

 

 

(528,630

)

 

 

435,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense - amortization of debt discount

 

 

221,196

 

 

 

257,523

 

 

 

413,391

 

 

 

367,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted net loss

 

$

(10,040,282

)

 

$

(7,878,230

)

 

$

(16,310,316

)

 

$

(14,816,033

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted net loss attributable to S&W Seed Company per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

(0.26

)

 

$

(0.23

)

 

$

(0.43

)

 

$

(0.44

)

 

Diluted

 

$

(0.26

)

 

$

(0.23

)

 

$

(0.43

)

 

$

(0.44

)

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

 

38,461,049

 

 

 

33,547,868

 

 

 

37,617,457

 

 

 

33,498,952

 

 

Diluted

 

 

38,461,049

 

 

 

33,547,868

 

 

 

37,617,457

 

 

 

33,498,952

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


TABLE B

 

S&W SEED COMPANY

ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED EBITDA

(UNAUDITED)

 

 

 

 

Three Months Ended

 

Six Months Ended

 

 

 

 

 

December 31

 

December 31

 

 

 

 

 

2021

 

 

2020

 

 

 

2021

 

 

 

2020

 

 

Net loss attributed to S&W Seed Company

 

$

 

(9,795,102

)

 

 

(8,466,452

)

 

$

 

(16,195,077

)

 

$

 

(15,639,212

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-recurring transaction costs

 

 

 

-

 

 

 

-

 

 

 

 

-

 

 

 

 

20,000

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash stock-based compensation

 

 

 

1,014,203

 

 

 

561,216

 

 

 

 

1,408,515

 

 

 

 

881,625

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

 

1,373,653

 

 

 

1,411,890

 

 

 

 

2,704,698

 

 

 

 

2,789,978

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency gain

 

 

 

258,482

 

 

 

(203,770

)

 

 

 

421,028

 

 

 

 

(104,553

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Change in contingent consideration obligation

 

 

 

(466,376

)

 

 

330,699

 

 

 

 

(528,630

)

 

 

 

435,519

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense - amortization of debt discount

 

 

 

221,196

 

 

 

257,523

 

 

 

 

413,391

 

 

 

 

367,660

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

 

613,465

 

 

 

606,059

 

 

 

 

1,131,950

 

 

 

 

1,178,342

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Provision for income taxes

 

 

 

257,776

 

 

 

42,480

 

 

 

 

91,973

 

 

 

 

44,312

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP adjusted EBITDA

 

$

 

(6,522,703

)

 

 

(5,460,355

)

 

$

 

(10,552,152

)

 

$

 

(10,026,329

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


S&W SEED COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

 

 

 

 

December 31,

 

 

 

June 30,

 

 

 

 

2021

 

 

 

2021

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

 

2,722,066

 

 

$

 

3,527,937

 

Accounts receivable, net

 

 

 

16,421,053

 

 

 

 

19,389,213

 

Inventories, net

 

 

 

67,700,645

 

 

 

 

63,395,256

 

Prepaid expenses and other current assets

 

 

 

1,361,838

 

 

 

 

1,555,530

 

TOTAL CURRENT ASSETS

 

 

 

88,205,602

 

 

 

 

87,867,936

 

Property, plant and equipment, net

 

 

 

17,677,729

 

 

 

 

17,740,974

 

Intangibles, net

 

 

 

35,671,019

 

 

 

 

37,130,942

 

Goodwill

 

 

 

1,599,649

 

 

 

 

1,651,634

 

Other assets

 

 

 

7,096,984

 

 

 

 

7,079,490

 

TOTAL ASSETS

 

$

 

150,250,983

 

 

$

 

151,470,976

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

 

 

 

 

 

Accounts payable

 

$

 

16,727,229

 

 

$

 

15,947,918

 

Deferred revenue

 

 

 

5,888,138

 

 

 

 

385,328

 

Accrued expenses and other current liabilities

 

 

 

8,691,302

 

 

 

 

9,134,869

 

Current portion of working capital lines of credit, net

 

 

 

15,153,160

 

 

 

 

33,946,565

 

Current portion of long-term debt, net

 

 

 

8,508,018

 

 

 

 

1,681,166

 

TOTAL CURRENT LIABILITIES

 

 

 

54,967,847

 

 

 

 

61,095,846

 

Long-term working capital lines of credit, less current portion

 

 

 

22,344,308

 

 

 

 

 

Long-term debt, net, less current portion

 

 

 

4,854,778

 

 

 

 

11,590,500

 

Contingent consideration obligation

 

 

 

183,002

 

 

 

 

741,552

 

Other non-current liabilities

 

 

 

3,740,519

 

 

 

 

3,649,885

 

TOTAL LIABILITIES

 

 

 

86,090,454

 

 

 

 

77,077,783

 

STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 shares authorized;

   no shares issued and outstanding

 

 

 

 

 

 

 

 

Common stock, $0.001 par value; 75,000,000 shares authorized;

   38,914,660 issued and 38,889,660 outstanding at December 31, 2021;

   36,772,983 issued and 36,747,983 outstanding at June 30, 2020;

 

 

 

38,915

 

 

 

 

36,773

 

Treasury stock, at cost, 25,000 shares

 

 

 

(134,196

)

 

 

 

(134,196

)

Additional paid-in capital

 

 

 

155,853,135

 

 

 

 

149,684,357

 

Accumulated deficit

 

 

 

(85,506,986

)

 

 

 

(69,311,909

)

Accumulated other comprehensive loss

 

 

 

(6,058,604

)

 

 

 

(5,850,826

)

Noncontrolling interests

 

 

 

(31,735

)

 

 

 

(31,006

)

TOTAL STOCKHOLDERS' EQUITY

 

 

 

64,160,529

 

 

 

 

74,393,193

 

TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY

 

$

 

150,250,983

 

 

$

 

151,470,976

 

 

 

 

 


S&W SEED COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

 

 

 

 

Six Months Ended                  December 31,

 

 

 

 

2021

 

 

 

2020

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

     Net loss

 

$

 

(16,195,806

)

 

$

 

(15,581,117

)

     Adjustments to reconcile net loss from operating activities to net

 

 

 

 

 

 

 

 

 

 

        cash used in operating activities

 

 

 

 

 

 

 

 

 

 

        Stock-based compensation

 

 

 

1,408,515

 

 

 

 

881,625

 

        Change in allowance for doubtful accounts

 

 

 

221,163

 

 

 

 

(32,180

)

        Inventory write-down

 

 

 

742,035

 

 

 

 

945,748

 

        Depreciation and amortization

 

 

 

2,704,698

 

 

 

 

2,789,978

 

        Gain on disposal of property, plant and equipment

 

 

 

(35,840

)

 

 

 

(42,068

)

        Change in foreign exchange contracts

 

 

 

239,713

 

 

 

 

(489,504

)

        Change in contingent consideration obligation

 

 

 

(528,630

)

 

 

 

435,519

 

        Amortization of debt discount

 

 

 

413,391

 

 

 

 

367,660

 

       Changes in:

 

 

 

-

 

 

 

 

-

 

           Accounts receivable

 

 

 

2,513,639

 

 

 

 

6,774,943

 

            Inventories

 

 

 

(5,741,778

)

 

 

 

(6,939,539

)

            Prepaid expenses and other current assets

 

 

 

170,844

 

 

 

 

(28,889

)

            Other non-current asset

 

 

 

(95,186

)

 

 

 

53,188

 

            Accounts payable

 

 

 

1,131,032

 

 

 

 

5,004,596

 

            Deferred revenue

 

 

 

5,504,147

 

 

 

 

721,595

 

            Accrued expenses and other current liabilities

 

 

 

(505,240

)

 

 

 

(2,507,353

)

            Other non-current liabilities

 

 

 

(12,521

)

 

 

 

(241,281

)

                Net cash used in operating activities

 

 

 

(8,065,824

)

 

 

 

(7,887,079

)

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

    Additions to property, plant and equipment

 

 

 

(1,227,368

)

 

 

 

(346,980

)

    Proceeds from disposal of property, plant and equipment

 

 

 

21,113

 

 

 

 

629,449

 

               Net cash (used in) provided by investing activities

 

 

 

(1,206,255

)

 

 

 

282,469

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

 

 

    Net proceeds from sale of common stock

 

 

 

4,920,693

 

 

 

 

1,385,926

 

Taxes paid related to net share settlements of stock-based compensation awards

 

 

 

(158,288

)

 

 

 

(47,686

)

Borrowings and repayments on lines of credit, net

 

 

 

3,911,452

 

 

 

 

6,045,840

 

Borrowings of long-term

 

 

 

875,683

 

 

 

 

-

 

Debt issuance costs

 

 

 

(112,084

)

 

 

 

(92,727

)

Repayments of long-term debt

 

 

 

(737,843

)

 

 

 

(1,462,798

)

               Net cash provided by financing activities

 

 

 

8,699,613

 

 

 

 

5,828,555

 

EFFECT OF EXCHANGE RATE CHANGES ON CASH

 

 

 

(233,405

)

 

 

 

579,040

 

NET DECREASE IN CASH & CASH EQUIVALENTS

 

 

 

(805,871

)

 

 

 

(1,197,015

)

CASH AND CASH EQUIVALENTS, beginning of the period

 

 

 

3,527,937

 

 

 

 

4,123,094

 

CASH AND CASH EQUIVALENTS, end of period

 

$

 

2,722,066

 

 

$

 

2,926,079