S&W Announces Fiscal 2022 Financial Results
S&W Seed Company (Nasdaq: SANW) reported fiscal year 2022 results, revealing a Core Revenue of $71.4 million, a 2.1% increase from $69.9 million in fiscal 2021. However, total revenue fell to $71.4 million from $84.0 million the previous year. The company faced a GAAP net loss of $(36.4) million, up from $(19.2) million in fiscal 2021. Looking ahead, S&W anticipates fiscal 2023 revenue between $80 to $92 million, indicating a potential growth of 12% to 29%. The gross margin decreased to 8.9% compared to 16.3% in the prior year, attributed to rising operating expenses and inventory write-downs.
- Core Revenue increased by 2.1% to $71.4 million driven by alfalfa sales in the Middle East.
- Fiscal 2023 revenue guidance projected between $80 to $92 million, an increase of 12% to 29%.
- Total revenue decreased from $84.0 million to $71.4 million year-over-year.
- GAAP net loss rose dramatically to $(36.4) million from $(19.2) million in fiscal 2021.
- GAAP gross margins decreased to 8.9% from 16.3% due to higher operating expenses.
LONGMONT, Colo., Sept. 28, 2022 /PRNewswire/ -- S&W Seed Company (Nasdaq: SANW) today announced financial results for the fiscal year ended June 30, 2022.
"We remain focused on developing the key centers of value we outlined last quarter, while moving to align our cost structure to support those key centers and assessing potential value-generating transactions to drive the business towards profitability," commented Mark Wong, President & CEO of S&W Seed Company. "We continue to see strong adoption of our lead value driver Double Team™, a next generation non-GMO herbicide tolerant sorghum solution. We are maximizing our production capabilities to meet the strong farmer demand, with an expectation of significant step-ups in high-margin revenue attributable to Double Team™ during fiscal 2023 and the years to come."
"We continue to encounter logistical and operational challenges within our international forage business which again has resulted in the delay of shipments at the end of our fiscal year due to the lack of shipping containers. We continue to take proactive actions to remedy the situation, however certain macro forces remain outside our control given the tight timelines between harvest and shipment at the end of June. We believe the market for our products remains strong and expect to capture in the first quarter of fiscal 2023 the vast majority of any sales that were unable to be shipped last fiscal year."
"In connection with the strategic review we announced last quarter, we have begun executing on our detailed plan to reduce annual operating expenses by approximately
Core Revenue (which we define as total revenue, excluding product revenue attributable to Pioneer) for fiscal 2022 was
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.
Total revenue for fiscal 2022 was
GAAP gross margins during fiscal 2022 were
GAAP operating expenses for fiscal 2022 were
GAAP net loss for fiscal 2022 was
Adjusted net loss (see Table A2) for fiscal 2022 was
Adjusted EBITDA (see Table B) for fiscal 2022 was
S&W expects fiscal 2023 revenue to be within a range of
S&W Seed Company has scheduled a conference call for Wednesday, September 28, 2022, 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 seven days at (877) 344-7529 or (412) 317-0088, confirmation #1060912. 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.
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-1, A-2 and B accompanying this release. We have not reconciled our guidance for adjusted EBITDA for fiscal 2023 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 2023 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 non-recurring transaction expenses related to acquisitions. Such as 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.
Goodwill impairment charges. 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.
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.
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 goodwill impairment charge, interest expense – amortization of debt discount, change in contingent consideration obligation, dividends accrued for participating securities and accretion and non-recurring transaction costs. 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, interest expense – amortization of debt discount, provision for (benefit from) income taxes, depreciation and amortization, goodwill impairment charges, non-recurring transaction costs from SG&A, non-cash stock-based compensation, foreign currency (gain) loss, change in contingent consideration obligation, dividends accrued for participating securities and accretion and gain on sale of marketable securities. 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.
For a complete press release including financial tables, please view online at: https://swseedco.com/investors/press-releases/
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.
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," "should" or "expected." Forward-looking statements in this release include, but are not limited to: our expectation regarding increases in high-margin revenue attributable to Double Team™ during fiscal 2023 and future years; our expectation to capture in the first quarter of fiscal 2023 the vast majority of any sales that were unable to be shipped in fiscal 2022 due to logistical and operational challenges; our ability to complete a deal for our wheat operations in Australia; our ability to unlock value within our U.S. forage operations; the enablement of value creation and our ability to drive the business towards profitability; our guidance on revenue and adjusted EBITDA for the fiscal year ending June 30, 2023; 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 risks and uncertainties related to: the continued effects of the COVID-19 pandemic on our business and operations; 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; 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; 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 | Year Ended | ||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||
Revenue | $ | 20,004,331 | $ | 22,765,623 | $ | 71,354,298 | $ | 84,049,036 | |||||||||||
Cost of revenue | 21,141,616 | 19,078,447 | 64,999,136 | 70,372,139 | |||||||||||||||
Gross (loss) profit | (1,137,285) | 3,687,176 | 6,355,162 | 13,676,897 | |||||||||||||||
Operating expenses | |||||||||||||||||||
Selling, general and administrative expenses | 6,209,945 | 5,465,178 | 24,470,730 | 21,867,529 | |||||||||||||||
Research and development expenses | 1,700,470 | 2,031,891 | 7,710,642 | 8,515,786 | |||||||||||||||
Depreciation and amortization | 1,375,767 | 1,342,805 | 5,460,321 | 5,469,581 | |||||||||||||||
Gain on disposal of property, plant and equipment | (45,045) | (553,323) | (31,088) | (1,906,738) | |||||||||||||||
Goodwill impairment charges | 1,548,324 | — | 1,548,324 | — | |||||||||||||||
Total operating expenses | 10,789,461 | 8,286,551 | 39,158,929 | 33,946,158 | |||||||||||||||
Loss from operations | (11,926,746) | (4,599,375) | (32,803,767) | (20,269,261) | |||||||||||||||
Other (income) expense | |||||||||||||||||||
Foreign currency loss (gain) | 209,950 | (77,509) | 777,913 | (94,214) | |||||||||||||||
Change in contingent consideration obligation | — | (3,768,812) | (714,429) | (4,016,904) | |||||||||||||||
Interest expense - amortization of debt discount | 238,306 | 187,913 | 898,497 | 689,514 | |||||||||||||||
Interest expense | 490,656 | 546,379 | 2,212,302 | 2,283,215 | |||||||||||||||
Gain on sale of marketable security | — | — | (68,967) | — | |||||||||||||||
Loss before income taxes | (12,865,658) | (1,487,346) | (35,909,083) | (19,130,872) | |||||||||||||||
(Benefit from) provision for income taxes | (1,213) | 188,962 | 413,423 | (24,358) | |||||||||||||||
Net loss | (12,864,445) | (1,676,308) | (36,322,506) | (19,106,514) | |||||||||||||||
Net income attributable to noncontrolling interests | 30,905 | 8,155 | 72,844 | 64,453 | |||||||||||||||
Net loss attributable to S&W Seed Company | $ | (12,895,350) | $ | (1,684,463) | $ | (36,395,350) | $ | (19,170,967) | |||||||||||
Calculation of net loss for loss per share: | |||||||||||||||||||
Net loss attributable to S&W Seed Company | $ | (12,895,350) | $ | (1,684,463) | $ | (36,395,350) | $ | (19,170,967) | |||||||||||
Dividends accrued for participating securities and | (113,103) | - | (166,298) | - | |||||||||||||||
Net loss attributable to common shareholders | $ | (13,008,453) | $ | (1,684,463) | $ | (36,561,648) | $ | (19,170,967) | |||||||||||
Net loss attributable to S&W Seed Company per common | |||||||||||||||||||
Basic | $ | (0.31) | $ | (0.05) | $ | (0.93) | $ | (0.55) | |||||||||||
Diluted | $ | (0.31) | $ | (0.05) | $ | (0.93) | $ | (0.55) | |||||||||||
Weighted average number of common shares outstanding: | |||||||||||||||||||
Basic | 41,821,784 | 36,440,732 | 39,133,681 | 34,590,883 | |||||||||||||||
Diluted | 41,821,784 | 36,440,732 | 39,133,681 | 34,590,883 | |||||||||||||||
TABLE A1 | ||||||||||||||||||
S&W SEED COMPANY | ||||||||||||||||||
ITEMIZED RECONCILIATION BETWEEN GROSS PROFIT AND NON-GAAP ADJUSTED GROSS PROFIT | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||
Gross (loss) profit | $ | (1,137,285) | $ | 3,687,176 | $ | 6,355,162 | $ | 13,676,897 | ||||||||||
Inventory write-downs | 4,488,313 | 162,956 | 6,365,542 | 1,416,029 | ||||||||||||||
Non-GAAP adjusted gross profit | $ | 3,351,028 | $ | 3,850,132 | $ | 12,720,704 | $ | 15,092,926 | ||||||||||
Non-GAAP adjusted gross margin | 16.8 | % | 16.9 | % | 17.8 | % | 18.0 | % | ||||||||||
TABLE A2 | ||||||||||||||||||
S&W SEED COMPANY | ||||||||||||||||||
ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED NET LOSS | ||||||||||||||||||
(UNAUDITED) | ||||||||||||||||||
Three Months Ended June 30, | Year Ended June 30, | |||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||
Net loss attributable to S&W Seed | $ | (12,895,350) | $ | (1,684,463) | $ | (36,395,350) | $ | (19,170,967) | ||||||||||
Goodwill impairment charges | 1,548,324 | — | 1,548,324 | — | ||||||||||||||
Interest expense - amortization of debt | 238,306 | 187,913 | 898,497 | 689,514 | ||||||||||||||
Non-recurring transaction costs | — | — | — | 20,000 | ||||||||||||||
Change in contingent consideration | — | (3,768,812) | (714,429) | (4,016,904) | ||||||||||||||
Dividends accrued for participating | (113,103) | — | (166,298) | — | ||||||||||||||
Non-GAAP adjusted net loss | $ | (11,221,823) | $ | (5,265,362) | $ | (34,829,256) | $ | (22,478,357) | ||||||||||
Non-GAAP adjusted net loss attributable | ||||||||||||||||||
Basic | $ | (0.27) | $ | (0.14) | $ | (0.89) | $ | (0.65) | ||||||||||
Diluted | $ | (0.27) | $ | (0.14) | $ | (0.89) | $ | (0.65) | ||||||||||
Weighted average number of common | ||||||||||||||||||
Basic | 41,821,784 | 36,440,732 | 39,133,681 | 34,590,883 | ||||||||||||||
Diluted | 41,821,784 | 36,440,732 | 39,133,681 | 34,590,883 | ||||||||||||||
TABLE A3 | |||||||||||||||||||||
S&W SEED COMPANY | |||||||||||||||||||||
ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED EBITDA | |||||||||||||||||||||
(UNAUDITED) | |||||||||||||||||||||
Three Months Ended | Year Ended | ||||||||||||||||||||
June 30 | June 30 | ||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||
Net loss attributable to S&W Seed Company | $ | (12,895,350) | $ | (1,684,463) | $ | (36,395,350) | $ | (19,170,967) | |||||||||||||
Interest expense | 490,656 | 546,379 | 2,212,302 | 2,283,215 | |||||||||||||||||
Interest expense - amortization of debt discount | 238,306 | 187,913 | 898,497 | 689,514 | |||||||||||||||||
(Benefit from) provision for income taxes | (1,213) | 188,962 | 413,423 | (24,358) | |||||||||||||||||
Depreciation and amortization | 1,375,767 | 1,342,805 | 5,460,321 | 5,469,581 | |||||||||||||||||
Goodwill impairment charges | 1,548,324 | — | 1,548,324 | — | |||||||||||||||||
Non-recurring transaction costs | — | — | — | 20,000 | |||||||||||||||||
Non-cash stock-based compensation | 445,372 | 462,914 | 2,267,180 | 1,766,353 | |||||||||||||||||
Foreign currency loss (gain) | 209,950 | (77,509) | 777,913 | (94,214) | |||||||||||||||||
Change in contingent consideration obligation | — | (3,768,812) | (714,429) | (4,016,904) | |||||||||||||||||
Dividends accrued for participating securities and accretion | (113,103) | — | (166,298) | — | |||||||||||||||||
Gain on sale of marketable securities | — | — | (68,967) | — | |||||||||||||||||
Non-GAAP adjusted EBITDA | $ | (8,701,291) | $ | (2,801,811) | $ | (23,767,084) | $ | (13,077,780) | |||||||||||||
S&W SEED COMPANY | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(UNAUDITED) | ||||||||||
June 30, | June 30, | |||||||||
2022 | 2021 | |||||||||
ASSETS | ||||||||||
CURRENT ASSETS | ||||||||||
Cash and cash equivalents | $ | 2,056,508 | $ | 3,527,937 | ||||||
Accounts receivable, net | 19,051,236 | 19,389,213 | ||||||||
Inventories, net | 54,515,894 | 63,395,256 | ||||||||
Prepaid expenses and other current assets | 1,605,987 | 1,555,530 | ||||||||
TOTAL CURRENT ASSETS | 77,229,625 | 87,867,936 | ||||||||
Property, plant and equipment, net | 16,871,669 | 17,740,974 | ||||||||
Intangibles, net | 34,095,827 | 37,130,942 | ||||||||
Goodwill | — | 1,651,634 | ||||||||
Other assets | 5,590,730 | 7,079,490 | ||||||||
TOTAL ASSETS | $ | 133,787,851 | $ | 151,470,976 | ||||||
LIABILITIES, SERIES B CONVERTIBLE PREFERRED STOCK AND | ||||||||||
CURRENT LIABILITIES | ||||||||||
Accounts payable | $ | 15,901,116 | $ | 15,947,918 | ||||||
Deferred revenue | 605,960 | 385,328 | ||||||||
Accrued expenses and other current liabilities | 10,788,740 | 9,134,869 | ||||||||
Current portion of working capital lines of credit, net | 12,678,897 | 33,946,565 | ||||||||
Current portion of long-term debt, net | 8,316,783 | 1,681,166 | ||||||||
TOTAL CURRENT LIABILITIES | 48,291,496 | 61,095,846 | ||||||||
Long-term working capital lines of credit, less current portion | 21,703,286 | — | ||||||||
Long-term debt, net, less current portion | 3,992,540 | 11,590,500 | ||||||||
Contingent consideration obligation | — | 741,552 | ||||||||
Other non-current liabilities | 3,587,041 | 3,649,885 | ||||||||
TOTAL LIABILITIES | 77,574,363 | 77,077,783 | ||||||||
SERIES B CONVERTIBLE PREFERRED STOCK | ||||||||||
Preferred stock, 1,695 shares issued and outstanding at June 30, 2022; none issued and outstanding at June 30, 2021 | 4,804,819 | — | ||||||||
TOTAL SERIES B CONVERTIBLE PREFERRED STOCK | 4,804,819 | — | ||||||||
STOCKHOLDERS' EQUITY | . | |||||||||
Common stock, 42,608,758 issued and 42,583,758 outstanding at June 30, 2022; 36,772,983 issued and 36,747,983 outstanding at June 30, 2021; | 42,609 | 36,773 | ||||||||
Treasury stock, at cost, 25,000 shares | (134,196) | (134,196) | ||||||||
Additional paid-in capital | 163,892,575 | 149,684,357 | ||||||||
Accumulated deficit | (105,873,557) | (69,311,909) | ||||||||
Accumulated other comprehensive loss | (6,560,600) | (5,850,826) | ||||||||
Noncontrolling interests | 41,838 | (31,006) | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 51,408,669 | 74,393,193 | ||||||||
TOTAL LIABILITIES, SERIES B CONVERTIBLE PREFERRED | $ | 133,787,851 | $ | 151,470,976 | ||||||
S&W SEED COMPANY | ||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||
(UNAUDITED) | ||||||||||
Year Ended June 30, | ||||||||||
2022 | 2021 | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net loss | $ | (36,322,506) | $ | (19,106,514) | ||||||
Adjustments to reconcile net loss from operating activities to net | ||||||||||
cash used in operating activities: | ||||||||||
Stock-based compensation | 2,267,180 | 1,766,353 | ||||||||
Change in allowance for doubtful accounts | 216,466 | (235,201) | ||||||||
Inventory write-down | 6,365,542 | 1,416,029 | ||||||||
Depreciation and amortization | 5,460,321 | 5,469,581 | ||||||||
Loss (gain) on disposal of property, plant and equipment | (31,088) | (1,906,738) | ||||||||
Change in deferred tax provision | 78,954 | — | ||||||||
Change in foreign exchange contracts | 971,386 | 79,403 | ||||||||
Change in contingent consideration obligation | (714,429) | (4,016,904) | ||||||||
Amortization of debt discount | 898,497 | 689,514 | ||||||||
Changes in: | - | |||||||||
Accounts receivable | (422,335) | 504,021 | ||||||||
Inventories | 688,903 | 648,448 | ||||||||
Prepaid expenses and other current assets | (104,442) | (120,030) | ||||||||
Other non-current asset | (137,320) | 54,259 | ||||||||
Accounts payable | 977,036 | 7,265,195 | ||||||||
Deferred revenue | 223,586 | (5,786,697) | ||||||||
Accrued expenses and other current liabilities | 1,226,353 | (964,282) | ||||||||
Other non-current liabilities | (15,243) | 22,521 | ||||||||
Net cash used in operating activities | (18,373,139) | (14,221,042) | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Additions to property, plant and equipment | (2,098,535) | (1,079,880) | ||||||||
Proceeds from disposal of property, plant and equipment | 200,605 | 782,645 | ||||||||
Net proceeds from the sale of marketable securities | 988,504 | — | ||||||||
Proceeds from sale of assets held for sale | — | 2,771,480 | ||||||||
Acquisition of germplasm | — | (8,499) | ||||||||
Net cash (used in) provided by investing activities | (909,426) | 2,465,746 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Net proceeds from sale of common stock | 11,777,690 | 10,223,311 | ||||||||
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 | (192,545) | (111,532) | ||||||||
Borrowings and repayments on lines of credit, net | 1,770,219 | 4,954,687 | ||||||||
Borrowings of long-term | 868,372 | 385,636 | ||||||||
Capital contribution from minority shareholder of subsidiary | — | 25,000 | ||||||||
Debt issuance costs | (692,779) | (196,952) | ||||||||
Repayments of long-term debt | (1,392,533) | (4,387,465) | ||||||||
Net cash provided by financing activities | 17,138,674 | 10,892,685 | ||||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 672,462 | 267,454 | ||||||||
NET DECREASE IN CASH & CASH EQUIVALENTS | (1,471,429) | (595,157) | ||||||||
CASH AND CASH EQUIVALENTS, beginning of the period | 3,527,937 | 4,123,094 | ||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 2,056,508 | $ | 3,527,937 | ||||||
Company Contact: | Investor Contact: | |
Betsy Horton, Chief Financial Officer | Robert Blum | |
S&W Seed Company | Lytham Partners, LLC | |
Phone: (720) 593-3570 | Phone: (602) 889-9700 | |
sanw@lythampartners.com | ||
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SOURCE S&W Seed Company
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