S&W Announces Second Quarter Fiscal 2025 Financial Results
S&W Seed Company (Nasdaq: SANW) reported its financial results for Q2 Fiscal 2025, ending December 31, 2024. The company has refocused on its core Americas-based operations, driven by its Double Team sorghum solutions, following the completion of the Voluntary Administration process for S&W Australia.
Key financial highlights include:
- Revenue of $5.1 million, a 38.5% decrease from Q2 Fiscal 2024.
- Gross profit margin decreased to 37.1% from 42.8% in Q2 Fiscal 2024.
- GAAP operating expenses increased to $6.2 million from $5.7 million in Q2 Fiscal 2024.
- Net loss from continuing operations was ($6.3) million, or ($2.73) per share, compared to ($3.8) million, or ($1.66) per share, in Q2 Fiscal 2024.
- GAAP net loss was ($1.7) million, or ($0.72) per share, compared to ($6.5) million, or ($2.85) per share, in Q2 Fiscal 2024.
- Adjusted EBITDA was ($2.9) million, compared to ($1.1) million in Q2 Fiscal 2024.
The company closed a new $25.0 million credit facility and implemented an operating optimization plan to drive near-term profitability. S&W also commenced a process to explore strategic alternatives to enhance shareholder value.
For fiscal 2025, S&W expects revenue between $34.5 million and $38.0 million and adjusted EBITDA between ($5.0) million and ($3.0) million.
- Completed Voluntary Administration process for S&W Australia.
- Closed a new $25.0 million credit facility.
- Implemented an operating optimization plan to drive near-term profitability.
- Commenced a process to explore strategic alternatives to enhance shareholder value.
- Revenue decreased by 38.5% to $5.1 million compared to Q2 Fiscal 2024.
- Gross profit margin decreased to 37.1% from 42.8% in Q2 Fiscal 2024.
- GAAP operating expenses increased to $6.2 million from $5.7 million in Q2 Fiscal 2024.
- Net loss from continuing operations increased to ($6.3) million from ($3.8) million in Q2 Fiscal 2024.
- Adjusted EBITDA was ($2.9) million compared to ($1.1) million in Q2 Fiscal 2024.
Insights
The Q2 FY2025 results highlight S&W Seed's challenging transition period, marked by a substantial
The company's strategic repositioning deserves careful analysis. The completion of the Australian VA process and divestiture of international operations represents a fundamental shift toward a focused Americas-based business model. While this streamlining should improve operational efficiency, the
The new
Looking ahead, management's projection of positive adjusted EBITDA for January-June 2025 appears optimistic given current headwinds. The guidance of
The company's focus on high-margin Double Team sorghum solutions and camelina represents a strategic bet on differentiated technology in globally important crops. However, the success of this strategy will require careful management of the transition period and effective execution of the cost optimization initiatives to achieve sustainable profitability.
Operational Highlights
- Repositioned to exclusively focus on core
Americas -based operations, led by its high margin Double Team sorghum solutions, following the completion of Voluntary Administration, or VA, process pertaining to S&W Australia. - Closed new
$25.0 million - Implemented operating optimization plan to align cost structure to drive the business toward near-term profitability.
- Commenced a process to explore and evaluate various strategic alternatives that may be available in an effort to enhance shareholder value.
Financial Highlights
- Revenue for the second quarter of fiscal 2025 was
$5.1 million 38.5% decrease compared to the second quarter of fiscal 2024. - Gross profit margin for the second quarter of fiscal 2025 was
37.1% compared to42.8% in the second quarter of fiscal 2024. - GAAP operating expenses were
$6.2 million $5.7 million - Net loss from continuing operations was
( , or ($6.3) million $2.73 ( , or ($3.8) million $1.66 - GAAP net loss was
( , or ($1.7) million $0.72 ( , or ($6.5) million $2.85 - Adjusted EBITDA (see Table B) was
( for the second quarter of fiscal 2025 compared to$2.9) million ( for the second quarter of fiscal 2024.$1.1) million
Management Discussion
"Over the past few months, we have completed a number of important steps to reposition S&W for future success by exclusively focusing our operations on our core,
"Our outlook for the remainder of fiscal 2025 remains optimistic, with expectations that we will have positive adjusted EBITDA for the six-month period of January through June 2025. We look forward to the successful execution of our operating objectives in this important spring planting season as we look to drive continued value for S&W," Herrmann concluded.
S&W Australia
As previously reported, S&W Australia adopted a voluntary plan of administration on July 24, 2024, and on October 11, 2024, creditors of S&W Australia approved a proposed Deed of Company Arrangement, or DOCA, pursuant to which, among other things,
- a Business Transfer Agreement, which transferred certain intellectual property rights related to alfalfa and white clover seeds necessary for S&W Australia's continued operations, along with certain related inventory, to S&W Australia;
- a Transitional Services Deed, which provided certain services to S&W Australia on a temporary basis to support the transition of services from S&W to S&W Australia;
- a Deed of Settlement and Release with S&W Australia, releasing S&W from all its net intercompany liabilities and obligations owed to S&W Australia; and
- a Deed of Release of
U.S. Corporate Guarantee with National Australia Bank Limited, or NAB, releasing S&W from all liability under S&W Australia's finance agreement with NAB, which was guaranteed by S&W up to a maximum of AUD$15.0 million
Strategic Alternatives Review Process
On January 13, 2025, S&W announced that its board of directors commenced a process to explore and evaluate various strategic alternatives that may be available to S&W in an effort to enhance shareholder value. S&W expects to consider a broad range of potential opportunities, including, among others, a sale of S&W, a merger with another strategic partner, a recapitalization or continued execution of S&W's attractive long-term business plan. There are no assurances the review process will result in S&W pursuing any transaction or any other strategic outcome, nor is there a timetable for completion of this process.
Financial Results
Total revenue for the second quarter of fiscal 2025 was
Gross profit margin for the second quarter of fiscal 2025 was
GAAP operating expenses for the second quarter of fiscal 2025 were
Adjusted operating expenses (see Table A1) were
Net loss from continuing operations for the second quarter of fiscal 2025 was
Adjusted net loss (see Table A2) for the second quarter of fiscal 2025 was
Adjusted EBITDA (see Table B) for the second quarter of fiscal 2025 was
Fiscal 2025 Guidance
S&W expects fiscal 2025 revenue to be within a range of
Adjusted EBITDA is expected to be in the range of
Conference Call
S&W Seed Company has scheduled a conference call for Thursday, February 13, 2025, 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 S&W's website at http://www.swseedco.com/investors or https://app.webinar.net/23W4NbeRekL. A teleconference replay of the call will be available for seven days at (877) 344-7529 or (412) 317-0088, confirmation #3475164. A webcast replay will be available in the Investor Relations section of S&W's website at http://www.swseedco.com/investors or https://app.webinar.net/23W4NbeRekL for 30 days.
Non-GAAP Financial Measures
In addition to financial results reported in accordance with accounting principles generally accepted in
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 2025 to net loss because the reconciling line items that impact net loss, including interest expense, non-cash stock-based compensation, foreign currency loss (gain), and equity in loss of equity method investee (Vision Bioenergy), net of tax, among others, are uncertain or out of our control and cannot be reasonably predicted. The actual amount of these items during fiscal 2025 will have a significant impact on net 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, S&W makes targeted adjustments to certain GAAP financial line items found on its condensed consolidated statement of operations, backing out non-recurring or unique items that we believe otherwise distort the underlying results and trends of the ongoing business. S&W has excluded the following items from one or more of its non-GAAP financial measures for the periods presented:
Selling, general and administrative expenses; operating expenses. S&W excludes from operating expenses depreciation and amortization and a portion of SG&A expense related to non-recurring transaction costs and, for its adjusted EBITDA calculation, also non-cash stock-based compensation. S&W excludes non-recurring transaction costs from S&W's total operating expenses to provide investors a method to compare its operating results to prior periods and to peer companies, as such amounts can vary significantly based on the frequency of restructuring or acquisition events and the magnitude of restructuring or acquisition expenses.
Net income (loss) on discontinued operations: S&W excludes the net income (loss) on discontinued operations, as this is outside of the scope of normal operations and is related to the disposal and operations of S&W Australia, which is no longer applicable. S&W believes it is important to exclude this amount in order to better understand its business performance.
Foreign currency loss (gain). The foreign currency loss (gain) represents fluctuations from changes in exchange rates that are uncertain or out of S&W's control and cannot be reasonably predicted. S&W believes it is useful to exclude this amount in order to better understand its business performance and allow investors to compare its results with peer companies.
Interest expense – amortization of debt discount. Amortization of debt discount and debt issuance costs are primarily related to S&W's working capital lines of credit and term loans. These amounts are non-cash charges and are unrelated to its core performance during any particular period. S&W believes it is useful to exclude these amounts in order to better understand its business performance and allow investors to compare its results with peer companies.
Interest expense, net. Interest expense, net primary consists of interest incurred on S&W's working capital credit facilities, the MFP Loan, the AgAmerica loan, and equipment capital leases. S&W believes it is useful to exclude these amounts in order to better understand its business performance and allow investors to compare its 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. S&W believes it is useful to exclude these amounts in order to better understand its business performance and allow investors to compare its 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 three months ended December 31, 2024 and 2023, as it has significant influence in Vision Bioenergy. S&W believes it is useful to exclude these amounts in order to better understand its business performance and allow investors to compare its 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. S&W defines adjusted operating expenses as GAAP operating expenses adjusted to exclude depreciation and amortization, loss (gain) on disposal of property, plant and equipment, and non-recurring transaction costs. S&W believes that the use of adjusted operating expenses is useful to investors and other users of its financial statements in evaluating its operating performance because it provides a method to compare its 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. S&W defines adjusted net loss as net loss attributable to S&W less interest expense – amortization of debt discount, non-recurring transaction costs, dividends accrued for participating securities and accretion, and equity in loss of equity method investee (Vision Bioenergy), net of tax. S&W believes that these non-GAAP financial measures provide useful supplemental information for evaluating its operating performance.
Adjusted EBITDA. S&W defines adjusted EBITDA as net loss attributable to S&W adjusted to exclude net income (loss) from discontinued operations, interest expense, net, interest expense – amortization of debt discount, provision for (benefit from) income taxes, depreciation and amortization, non-recurring transaction costs, non-cash stock-based compensation, foreign currency loss (gain), equity in loss of equity method investee (Vision Bioenergy), net of tax, and dividends accrued for participating securities and accretion. S&W believes that the use of adjusted EBITDA is useful to investors and other users of its financial statements in evaluating its operating performance because it provides them with an additional tool to compare business performance across companies and across periods. S&W uses adjusted EBITDA in conjunction with traditional GAAP operating performance measures as part of its overall assessment of its performance, for planning purposes, including the preparation of its annual operating budget, to evaluate the effectiveness of its business strategies and to communicate with its Board concerning its 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 is a global multi-crop, middle-market agricultural company headquartered in
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," "intends" "should" or "expects." Forward-looking statements in this release include, but are not limited to: our success in growing and expanding our Double Team operations in the
Company Contact
Mark Herrmann, Chief Executive Officer
S&W Seed Company
Phone: (720) 593-3570
www.swseedco.com
Investor Contact
Robert Blum
Lytham Partners, LLC
Phone: (602) 889-9700
sanw@lythampartners.com
www.lythampartners.com
S & W SEED COMPANY | ||||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||
(UNAUDITED) | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Revenue | $ | 5,076,898 | $ | 8,261,308 | $ | 13,386,374 | $ | 19,018,655 | ||||||||
Cost of revenue | 3,194,376 | 4,728,553 | 10,167,483 | 12,759,573 | ||||||||||||
Gross profit | 1,882,522 | 3,532,755 | 3,218,891 | 6,259,082 | ||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 4,687,826 | 4,242,906 | 8,690,037 | 8,396,468 | ||||||||||||
Research and development expenses | 832,586 | 723,594 | 1,574,406 | 1,502,483 | ||||||||||||
Depreciation and amortization | 696,351 | 818,548 | 1,510,804 | 1,625,385 | ||||||||||||
Loss (gain) on disposal of property, plant and equipment | 10,022 | (48,281) | 21,484 | (70,373) | ||||||||||||
Total operating expenses | 6,226,785 | 5,736,767 | 11,796,731 | 11,453,963 | ||||||||||||
Loss from operations | (4,344,263) | (2,204,012) | (8,577,840) | (5,194,881) | ||||||||||||
Other expense (income): | ||||||||||||||||
Foreign currency loss (gain) | 814 | (25,145) | 8,739 | (24,557) | ||||||||||||
Interest expense - amortization of debt discount | 352,677 | 347,496 | 713,815 | 704,063 | ||||||||||||
Interest expense - convertible debt and other | 830,235 | 712,290 | 1,592,114 | 1,510,569 | ||||||||||||
Other expenses (income) | (864) | (59,336) | 21,823 | (96,896) | ||||||||||||
Loss before income taxes | (5,527,125) | (3,179,317) | (10,914,331) | (7,288,060) | ||||||||||||
Provision for (benefit from) income taxes | 1,551 | 1,833 | 2,692 | (10,460) | ||||||||||||
Loss before equity in net earnings of affiliates | (5,528,676) | (3,181,150) | (10,917,023) | (7,277,600) | ||||||||||||
Equity in loss of equity method investees, net of tax | 724,895 | 577,039 | 1,571,775 | 1,354,012 | ||||||||||||
Net loss from continuing operations | (6,253,571) | (3,758,189) | (12,488,798) | (8,631,612) | ||||||||||||
Net income (loss) from discontinued operations | 4,592,714 | (2,735,857) | (5,401,785) | (3,819,351) | ||||||||||||
Net loss | (1,660,857) | (6,494,046) | (17,890,583) | (12,450,963) | ||||||||||||
Loss attributable to noncontrolling interests | — | (25,194) | — | (32,482) | ||||||||||||
Net loss attributable to S&W Seed Company | $ | (1,660,857) | $ | (6,468,852) | $ | (17,890,583) | $ | (12,418,481) | ||||||||
Calculation of net loss per share: | ||||||||||||||||
Net loss attributable to S&W Seed Company | $ | (1,660,857) | $ | (6,468,852) | $ | (17,890,583) | $ | (12,418,481) | ||||||||
Dividends accrued for participating securities and accretion | (131,473) | (124,431) | (259,365) | (244,476) | ||||||||||||
Net loss attributable to common shareholders | $ | (1,792,330) | $ | (6,593,283) | $ | (18,149,948) | $ | (12,662,957) | ||||||||
Net loss per share from continuing operations, basic and diluted | $ | (2.73) | $ | (1.66) | $ | (5.46) | $ | (3.81) | ||||||||
Net income (loss) per share from discontinued operations, basic and diluted | $ | 2.00 | $ | (1.21) | $ | (2.36) | $ | (1.69) | ||||||||
Net loss attributable to S&W Seed Company per common share, basic and diluted | $ | (0.72) | $ | (2.85) | $ | (7.82) | $ | (5.48) | ||||||||
Net loss attributable to common shareholders per common share, basic and diluted | $ | (0.78) | $ | (2.91) | $ | (7.94) | $ | (5.59) | ||||||||
Weighted average number of common shares outstanding, basic and diluted | 2,291,746 | 2,267,971 | 2,287,328 | 2,265,807 | ||||||||||||
S & W SEED COMPANY | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(UNAUDITED) | ||||||||||
As of | As of | |||||||||
ASSETS | ||||||||||
CURRENT ASSETS | ||||||||||
Cash and cash equivalents | $ | 1,393,200 | $ | 286,508 | ||||||
Accounts receivable, net | 8,371,373 | 14,636,722 | ||||||||
Inventories, net | 21,021,310 | 22,628,343 | ||||||||
Prepaid expenses and other current assets | 3,412,588 | 3,431,226 | ||||||||
Current assets of discontinued operations | — | 22,391,691 | ||||||||
TOTAL CURRENT ASSETS | 34,198,471 | 63,374,490 | ||||||||
Property, plant and equipment, net | 5,732,484 | 6,127,198 | ||||||||
Intellectual property, net | 10,610,317 | 20,265,618 | ||||||||
Other Intangibles, net | 2,386,907 | 3,206,720 | ||||||||
Right of use asset - operating leases | 810,018 | 1,113,833 | ||||||||
Equity method investments | 18,122,435 | 19,694,209 | ||||||||
Other assets | 1,461,381 | 1,364,532 | ||||||||
Non-current assets of discontinued operations | — | 5,578,941 | ||||||||
TOTAL ASSETS | $ | 73,322,013 | $ | 120,725,541 | ||||||
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | ||||||||||
CURRENT LIABILITIES | ||||||||||
Accounts payable | $ | 9,459,408 | $ | 3,255,928 | ||||||
Deferred revenue | 4,545,199 | 832,283 | ||||||||
Accrued expenses and other current liabilities | 5,147,186 | 3,770,773 | ||||||||
Current portion of working capital lines of credit, net | 13,733,741 | 16,174,537 | ||||||||
Current portion of long-term debt, net | 267,848 | 315,304 | ||||||||
Current liabilities of discontinued operations | — | 44,893,499 | ||||||||
TOTAL CURRENT LIABILITIES | 33,153,382 | 69,242,324 | ||||||||
Long-term debt, net, less current portion | 4,591,207 | 4,721,849 | ||||||||
Other non-current liabilities | 585,435 | 800,620 | ||||||||
Non-current liabilities of discontinued operations | — | 929,623 | ||||||||
TOTAL LIABILITIES | 38,330,024 | 75,694,416 | ||||||||
MEZZANINE EQUITY | ||||||||||
Preferred stock, and outstanding at December 31, 2024 and June 30, 2024 | 6,028,130 | 5,768,765 | ||||||||
TOTAL MEZZANINE EQUITY | 6,028,130 | 5,768,765 | ||||||||
STOCKHOLDERS' EQUITY | ||||||||||
Common stock, issued and 2,139,203 outstanding at December 31, 2024; 2,282,704 issued and 2,281,388 outstanding at June 30, 2024 | 2,139 | 43,369 | ||||||||
Treasury stock, at cost, 1,316 shares at December 31, 2024 and June 30, 2024 | (134,196) | (134,196) | ||||||||
Additional paid-in capital | 169,334,593 | 168,807,072 | ||||||||
Accumulated deficit | (140,240,427) | (122,090,479) | ||||||||
Accumulated other comprehensive loss | (39,958) | (7,405,114) | ||||||||
Noncontrolling interests | 41,708 | 41,708 | ||||||||
TOTAL STOCKHOLDERS' EQUITY | 28,963,859 | 39,262,360 | ||||||||
TOTAL LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' EQUITY | $ | 73,322,013 | $ | 120,725,541 | ||||||
S & W SEED COMPANY | ||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(UNAUDITED) | ||||||||
Six Months Ended December 31, | ||||||||
2024 | 2023 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net loss | $ | (17,890,583) | $ | (12,450,963) | ||||
Loss from discontinued operations | (5,401,785) | (3,819,351) | ||||||
Loss from continuing operations | (12,488,798) | (8,631,612) | ||||||
Adjustments to reconcile net loss from operating activities to net loss | ||||||||
cash used in operating activities: | ||||||||
Stock-based compensation | 520,010 | 677,507 | ||||||
Provision for credit losses | 237,500 | 506,382 | ||||||
Inventory write-down | 294,548 | 679,266 | ||||||
Depreciation and amortization | 1,510,804 | 1,625,385 | ||||||
Loss (gain) on disposal of property, plant and equipment | 21,484 | (70,373) | ||||||
Equity in loss of equity method investees, net of tax | 1,571,775 | 1,354,012 | ||||||
Foreign currency transactions | 8,286 | (24,454) | ||||||
Amortization of debt discount | 713,815 | 704,063 | ||||||
Accretion of note receivable | — | (127,476) | ||||||
Changes in: | ||||||||
Accounts receivable | 6,023,133 | 3,589,426 | ||||||
Receivable from unconsolidated subsidiary | (358,790) | (681,050) | ||||||
Inventories | (4,628,393) | (4,263,483) | ||||||
Prepaid expenses and other current assets | 789,800 | 1,014,579 | ||||||
Other non-current assets | (258,909) | (3,266) | ||||||
Accounts payable | 6,219,965 | 2,355,799 | ||||||
Payable to unconsolidated subsidiary | 189,042 | (691,243) | ||||||
Deferred revenue | 3,712,916 | 5,047,740 | ||||||
Accrued expenses and other current liabilities | 1,277,937 | (1,214,967) | ||||||
Other non-current liabilities | 3,050 | 27,892 | ||||||
Net cash provided by operating activities from continuing operations | 5,359,175 | 1,874,127 | ||||||
Net cash used in operating activities from discontinuing operations | (1,434,917) | (437,303) | ||||||
Net cash provided by operating activities | 3,924,258 | 1,436,824 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Additions to property, plant and equipment | (195,047) | (234,404) | ||||||
Proceeds from disposal of property, plant and equipment | 39,300 | 136,589 | ||||||
Net cash used in investing activities from continuing operations | (155,747) | (97,815) | ||||||
Net cash provided by (used in) investing activities from discontinuing operations | 25,079 | (906,825) | ||||||
Net cash used in investing activities | (130,668) | (1,004,640) | ||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Borrowings and repayments on lines of credit, net | (2,545,453) | (4,037,200) | ||||||
Borrowings of long-term debt | — | 227,322 | ||||||
Repayments of long-term debt | (196,396) | (80,456) | ||||||
Payments of debt issuance costs | (1,326,678) | (41,323) | ||||||
Cash paid to purchase common stock | (30,000) | — | ||||||
Net proceeds from sale of common stock | — | (165,812) | ||||||
Taxes paid related to net share settlements of stock-based compensation awards | (3,719) | (26,825) | ||||||
Net cash used in financing activities from continuing operations | (4,102,246) | (4,124,294) | ||||||
Net cash provided by financing activities from discontinued operations | 1,409,838 | 1,374,582 | ||||||
Net cash used in financing activities | (2,692,408) | (2,749,712) | ||||||
EFFECT OF EXCHANGE RATE CHANGES ON CASH | 5,510 | 33,107 | ||||||
NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS | 1,106,692 | (2,284,421) | ||||||
CASH AND CASH EQUIVALENTS, beginning of the period | 286,508 | 3,398,793 | ||||||
CASH AND CASH EQUIVALENTS, end of period | $ | 1,393,200 | $ | 1,114,372 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
Cash paid during the period for: | ||||||||
Interest | $ | 1,520,044 | $ | 2,119,009 | ||||
Income taxes | 25 | 22,225 | ||||||
TABLE A1 | |||||||||||||||||
S&W SEED COMPANY | |||||||||||||||||
ITEMIZED RECONCILIATION BETWEEN OPERATING EXPENSES AND NON-GAAP ADJUSTED OPERATING EXPENSES | |||||||||||||||||
(UNAUDITED) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Operating expenses | $ | 6,226,785 | $ | 5,736,767 | $ | 11,796,731 | $ | 11,453,963 | |||||||||
Less: | |||||||||||||||||
Depreciation and amortization | (696,351) | (818,548) | (1,510,804) | (1,625,385) | |||||||||||||
Non-recurring transaction costs | (601,442) | (48,551) | (839,526) | (210,782) | |||||||||||||
Loss (gain) on disposal of property, plant and equipment | (10,022) | 48,281 | (21,484) | 70,373 | |||||||||||||
Non-GAAP adjusted operating expenses | $ | 4,918,970 | $ | 4,917,949 | $ | 9,424,917 | $ | 9,688,169 | |||||||||
TABLE A2 | |||||||||||||||||
S&W SEED COMPANY | |||||||||||||||||
ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED NET LOSS | |||||||||||||||||
(UNAUDITED) | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
2024 | 2023 | 2024 | 2023 | ||||||||||||||
Net loss attributable to S&W Seed Company | $ | (1,660,857) | $ | (6,468,852) | $ | (17,890,583) | $ | (12,418,481) | |||||||||
Net (income) loss from discontinued operations | (4,592,714) | 2,735,857 | 5,401,785 | 3,819,351 | |||||||||||||
Interest expense - amortization of debt discount | 352,677 | 347,496 | 713,815 | 704,063 | |||||||||||||
Non-recurring transaction costs | 601,442 | 48,551 | 839,526 | 210,782 | |||||||||||||
Dividends accrued for participating securities and accretion | (131,473) | (124,431) | (259,365) | (244,476) | |||||||||||||
Equity in loss of equity method investee (Vision Bioenergy), net of tax | 724,895 | 577,039 | 1,571,775 | 1,354,012 | |||||||||||||
Non-GAAP adjusted net loss | $ | (4,706,030) | $ | (2,884,340) | $ | (9,623,047) | $ | (6,574,749) | |||||||||
Non-GAAP adjusted net loss attributable to | $ | (2.05) | $ | (1.27) | $ | (4.21) | $ | (2.90) | |||||||||
Weighted average number of common shares outstanding, basic and diluted | 2,291,746 | 2,267,971 | 2,287,328 | 2,265,807 | |||||||||||||
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, | |||||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||||
Net loss attributable to S&W Seed Company | $ | (1,660,857) | $ | (6,468,852) | $ | (17,890,583) | $ | (12,418,481) | ||||||||||
Net (income) loss from discontinued operations | (4,592,714) | 2,735,857 | 5,401,785 | 3,819,351 | ||||||||||||||
Interest expense, net | 830,235 | 712,290 | 1,592,114 | 1,510,569 | ||||||||||||||
Interest expense - amortization of debt discount | 352,677 | 347,496 | 713,815 | 704,063 | ||||||||||||||
Provision for (benefit from) income taxes | 1,551 | 1,833 | 2,692 | (10,460) | ||||||||||||||
Depreciation and amortization | 696,351 | 818,548 | 1,510,804 | 1,625,385 | ||||||||||||||
Non-recurring transaction costs | 601,442 | 48,551 | 839,526 | 210,782 | ||||||||||||||
Non-cash stock-based compensation | 276,101 | 274,866 | 511,557 | 677,507 | ||||||||||||||
Foreign currency loss (gain) | 814 | (25,145) | 8,739 | (24,557) | ||||||||||||||
Equity in loss of equity method investee (Vision Bioenergy), net of tax | 724,895 | 577,039 | 1,571,775 | 1,354,012 | ||||||||||||||
Dividends accrued for participating securities and accretion | (131,473) | (124,431) | (259,365) | (244,476) | ||||||||||||||
Non-GAAP adjusted EBITDA | $ | (2,900,978) | $ | (1,101,948) | $ | (5,997,141) | $ | (2,796,305) | ||||||||||
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SOURCE S&W Seed Company
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