FRESNO, Calif., Nov. 10, 2016 /PRNewswire/ -- S&W Seed
Company (Nasdaq: SANW) today announced financial results
for the first quarter of fiscal year 2017 ended September 30, 2016.
First Quarter Financial Highlights:
- Revenue of $12,250,000, compared
to $12,255,000 in the first quarter
of fiscal 2016;
- Gross profit margins of 15.9% during the first quarter of
fiscal 2017, compared to gross profit margins of 16.1% in the first
quarter of fiscal 2016;
- GAAP net loss of $(3.2) million,
compared to a net loss of $(1.9)
million in the first quarter of fiscal 2016;
- Adjusted non-GAAP net loss (see Table A) of $(1.6) million, compared to adjusted non-GAAP net
loss of $(1.7) million in the first
quarter of fiscal 2016;
- GAAP EPS of $(0.19) per diluted
share for the first quarter of fiscal 2017, compared to a loss of
$(0.14) per diluted share in the
first quarter of fiscal 2016;
- Adjusted Non-GAAP EPS (see Table A) for the first quarter of
fiscal 2017 of $(0.09) per diluted
share, compared to $(0.12) per
diluted share in the first quarter of fiscal 2016;
- Adjusted EBITDA (see Table B) of $(971,000), compared to $(605,000) in the first quarter of fiscal 2016;
and
- Convertible debt balance as of November
9, 2016 was $2.1 million.
Outlook:
Based on the evaluation of information currently available to
management, for the fiscal year ending June
30, 2017, S&W continues to expect record annual revenue
of approximately $100 million, which
would reflect an increase of approximately 4% over fiscal 2016.
Management Discussion
Mark Grewal, president and chief
executive officer of S&W Seed Company, commented, "The first
quarter of our fiscal year is seasonally our lowest sales volume
quarter of the year, but our busiest production period as we work
with our contracted grower base to finalize the North American
harvests which will set the stage for the remainder of the fiscal
year. Our production team did an outstanding job securing a 15%
increase in acreage dedicated to seed production. With nearly 90%
of the North American harvest complete, we are expecting a global
increase of contracted seed production for calendar year 2016 of
more than 20%. This improvement in contracted seed inventory will
help us to drive organic revenue growth in fiscal 2017, replenish
our depleted inventory levels, and minimize the need to purchase
higher cost inventory from the spot market to meet the needs of our
customers."
Matthew Szot, chief financial
officer of S&W Seed Company, commented, "Revenues for the first
quarter came in consistent with our expectations. Gross
margins were lower during the first quarter due to the product mix
sold which consisted of a higher concentration of lower-margin
non-proprietary seed. With improved contracted seed acreage,
decreases in our seed production costs, and expectations for
relatively stable market pricing, we continue to believe fiscal
2017 will show improvements in organic revenues and gross margins.
Additionally, we remain committed to strengthening our balance
sheet and retiring the remaining balance of our convertible debt,
with only $2.1 million remaining
outstanding today. We have retired nearly $25 million of convertible debt over the last 23
months demonstrating our ability to execute on our strategic
initiatives and continue to drive value for our shareholders."
Mr. Grewal concluded, "As diets in developing countries continue
to evolve to include higher protein levels, we expect that the
demand for alfalfa will continue to expand. S&W maintains a
leadership position in this global crop with advanced product
offerings, a large and diversified production base, worldwide
distribution into more than 30 countries, and R&D
collaborations that are looking to bring next generation traits to
the marketplace. While we look to take advantage of this leadership
position in alfalfa for years to come, we are also focused on
leveraging the infrastructure we have built to expand into
complimentary product offerings, including our recent entry into
the hybrid sorghum and sunflower seed markets. With a tremendous
team in place to drive growth, efficiencies and innovation, I look
forward to a strong fiscal 2017."
Quarterly Results
For the first quarter of fiscal year 2017, revenue was
$12,250,000, compared to $12,255,000 in the first quarter of fiscal
2016.
Gross profit margins during the first quarter of fiscal 2017
were 15.9%, compared to gross profit margins of 16.1% in the first
quarter of fiscal 2016. Consistent with expectations for the
quarter, sales mix consisted primarily of non-proprietary, lower
margin, non-dormant varieties. As product mix shifts to higher
levels of proprietary seed for the remainder of the year, the
Company continues to anticipate gross profit margins over the
course of fiscal 2017 to improve over fiscal 2016.
Selling, general and administrative (SG&A) expenses of
$2.5 million, as well as total
operating expenses of $4.0 million,
remained flat during the first quarter of fiscal 2017 compared to
the first quarter of the prior year.
Adjusted EBITDA (see Table B) for the first quarter of fiscal
2017 was $(971,000) compared to
Adjusted EBITDA of $(605,000) in the
first quarter of fiscal 2016.
GAAP net loss for the first quarter of fiscal 2017 was
$(3.2) million, or $(0.19) per basic and diluted share, compared to
a GAAP net loss of $(1.9) million, or
$(0.14) per basic and diluted share,
in the first quarter of fiscal 2016.
Adjusted non-GAAP net loss (see Table A) for the first quarter
of fiscal 2017, excluding various items (change in derivative
warrant liabilities, change in contingent consideration obligation,
loss on equity method investment, and interest expense -
amortization of debt discount), was $(1.6)
million, or $(0.09) per basic
and diluted share. Adjusted non-GAAP net loss (see Table A) for the
first quarter of fiscal 2016, excluding various items (losses
incurred on farming of non-seed crops, change in derivative warrant
liabilities, change in contingent consideration obligation, loss on
equity method investment, and interest expense - amortization of
debt discount) was $(1.7) million, or
$(0.12) per basic and diluted
share.
Conference Call
S&W Seed Company has scheduled a conference call for today,
Thursday, November 10, 2016, at
4:30 pm ET (1:30 pm PT) to review the quarterly 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 # 10095662. 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"), the
Company has provided the following non-GAAP financial measures in
this release and the accompanying tables: adjusted gross
profit margin, adjusted EBITDA, adjusted non-GAAP net income (loss)
and adjusted earnings (loss) per share. S&W uses these non-GAAP
financial measures internally to facilitate period-to-period
comparisons and analysis of its operating performance and liquidity
and believes they are useful to investors as a supplement to GAAP
measures in analyzing, trending and benchmarking the performance
and value of the Company's 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 these measures
where applicable to the most applicable financial measures under
GAAP, see Tables A, and B included in the tables accompanying
this release.
In order to calculate these non-GAAP financial measures, the
Company makes targeted adjustments to certain GAAP financial line
items found on its Consolidated Statement of Operations, backing
out non-recurring or unique items or items that the Company
believes otherwise distort the underlying results and trends of the
ongoing business. The Company has excluded the following items from
one or more of our non-GAAP financial measures for the periods
presented:
Cost of revenue. We exclude a portion of cost of
revenue representing losses incurred in connection with the farming
of various non-seed crops. These amounts are non-recurring and
unrelated to our core performance during any particular period, and
therefore, 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.
Changes in derivative warrant liabilities. Change
in derivative warrant liabilities are related to the change in fair
value of the warrants issued in conjunction with our Convertible
Debentures issued in December 2014.
These amounts are non-cash gains and/or losses, 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.
Changes in contingent consideration obligations.
Change in contingent consideration obligations is related to the
change in fair value of the contingent consideration potentially
owed to DuPont Pioneer and the sellers of SVG Genetics as a result
of the previously announced acquisitions. These amounts are
non-cash gains and/or losses, 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.
Loss on equity method investment. Losses from our
equity method investment are related to our portion of losses
incurred from our joint venture in Argentina. These amounts are unrelated to our
core performance during any particular period, and therefore, 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 issuance costs are related to our
Convertible Debentures and warrants issued in December 2014. 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 profit margin is a non-GAAP financial
measure that we have calculated by excluding losses incurred in
connection with the farming of various non-seed crops. These
amounts are unrelated to our core performance during any particular
period, and therefore, 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.
Adjusted net income (loss) and non-GAAP earnings (loss) per
share. We define non-GAAP net income (loss) as net income
(loss) less losses incurred on farming of non-seed crops, change in
derivative warrant liabilities, change in contingent consideration
obligation, interest expense - amortization of debt discount, and
loss on equity method investment. However, in order to provide a
complete picture of our recurring core business operating results,
we also exclude from non-GAAP net income (loss) the tax effects of
these adjustments. We used an effective tax rate that we believe
would be applied had our income approximated the non-GAAP net
income (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 is a non-GAAP financial measure that we
define as GAAP net income (loss), adjusted to exclude losses
incurred in connection with the farming of various non-seed crops,
depreciation and amortization, non-cash stock-based compensation,
foreign currency (gain) loss, change in derivative warrant
liabilities, change in contingent consideration obligation,
interest expense – amortization of debt discount, interest expense
– convertible debt and other, loss on equity method investment, and
provision (benefit) for income taxes. We believe that the use of
adjusted EBITDA is useful to investors and other users of the
Company's 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.
About S&W Seed Company
Founded in 1980,
S&W Seed Company is a global agricultural company,
headquartered in Fresno,
California. The Company's vision is to be the world's
preferred proprietary seed company by supplying a range of forage
and specialty crop products to support the growing global demand
for animal proteins and healthier consumer diets. The Company is
the global leader in alfalfa seed, with unrivaled research and
development, production and distribution capabilities. S&W's
capabilities span the world's alfalfa seed production regions, with
operations in the United
States, Australia, and Canada, and S&W sells its
seed products in more than 30 countries around the globe. The
company is also a provider of proprietary hybrid sorghum and
sunflower seed germplasm, and 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, statements concerning expected revenue, gross profit
margins and adjusted EBITDA for the fiscal year ending June 30, 2017, anticipated increases in
contracted seed production and stable market pricing, optimization
and diversification of our business, decreased production costs,
the ability to pay down our convertible debt, and the strength of
the alfalfa seed market. 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
risks that actual results may differ materially from those
projected in the forward-looking statements as a result of various
factors and other risks identified in our filings 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.
Company
Contact:
|
Investor
Contact:
|
Matthew Szot, Chief
Financial Officer
|
Joe Dorame, Robert
Blum, Joe Diaz
|
S&W Seed
Company
|
Lytham Partners,
LLC
|
Phone: (559)
884-2535
|
Phone: (602)
889-9700
|
www.swseedco.com
|
sanw@lythampartners.com
|
|
www.lythampartners.com
|
Table
A
|
|
S&W SEED
COMPANY
|
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NON-GAAP
|
|
NON-GAAP
|
|
|
|
|
NON-GAAP
|
|
NON-GAAP
|
|
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
|
|
GAAP
|
|
Adjustments
|
|
Adjusted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenue
|
|
$
|
12,249,573
|
|
-
|
$
|
12,249,573
|
|
$
|
12,254,912
|
|
-
|
$
|
12,254,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
|
10,306,310
|
|
-
|
|
10,306,310
|
|
|
10,280,031
|
|
(259,566)
|
|
10,020,465
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross
profit
|
|
|
1,943,263
|
|
-
|
|
1,943,263
|
|
|
1,974,881
|
|
259,566
|
|
2,234,447
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling, general and
administrative expenses
|
|
|
2,455,203
|
|
-
|
|
2,455,203
|
|
|
2,473,977
|
|
-
|
|
2,473,977
|
Research and
development expenses
|
|
|
741,541
|
|
-
|
|
741,541
|
|
|
690,373
|
|
-
|
|
690,373
|
Depreciation and
amortization
|
|
|
834,697
|
|
-
|
|
834,697
|
|
|
788,796
|
|
-
|
|
788,796
|
Disposal of property,
plant and equipment loss (gain)
|
|
|
-
|
|
-
|
|
-
|
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating
expenses
|
|
|
4,031,441
|
|
-
|
|
4,031,441
|
|
|
3,953,146
|
|
-
|
|
3,953,146
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss from
operations
|
|
|
(2,088,178)
|
|
-
|
|
(2,088,178)
|
|
|
(1,978,265)
|
|
259,566
|
|
(1,718,699)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
expense
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign currency
(gain) loss
|
|
|
(3,646)
|
|
-
|
|
(3,646)
|
|
|
83,346
|
|
-
|
|
83,346
|
Change in derivative
warrant liabilities
|
|
|
1,127,700
|
|
(1,127,700)
|
|
-
|
|
|
(539,000)
|
|
539,000
|
|
-
|
Change in contingent
consideration obligations
|
|
|
107,081
|
|
(107,081)
|
|
-
|
|
|
(95,284)
|
|
95,284
|
|
-
|
Loss on equity method
investment
|
|
|
49,249
|
|
(49,249)
|
|
-
|
|
|
94,362
|
|
(94,362)
|
|
-
|
Interest expense -
amortization of debt discount
|
|
|
599,458
|
|
(599,458)
|
|
-
|
|
|
906,252
|
|
(906,252)
|
|
-
|
Interest expense -
convertible debt and other
|
|
|
352,542
|
|
-
|
|
352,542
|
|
|
696,235
|
|
-
|
|
696,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
|
(4,320,562)
|
|
1,883,488
|
|
(2,437,074)
|
|
|
(3,124,176)
|
|
625,896
|
|
(2,498,280)
|
Benefit from income
taxes
|
|
|
(1,103,408)
|
|
244,096
|
|
(859,312)
|
|
|
(1,249,943)
|
|
410,789
|
|
(839,154)
|
Net loss
|
|
$
|
(3,217,154)
|
|
1,639,392
|
$
|
(1,577,762)
|
|
$
|
(1,874,233)
|
|
215,107
|
$
|
(1,659,126)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net loss per common
share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.19)
|
|
|
$
|
(0.09)
|
|
$
|
(0.14)
|
|
|
$
|
(0.12)
|
Diluted
|
|
$
|
(0.19)
|
|
|
$
|
(0.09)
|
|
$
|
(0.14)
|
|
|
$
|
(0.12)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
number of common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
17,117,041
|
|
|
|
17,117,041
|
|
|
13,463,353
|
|
|
|
13,463,353
|
Diluted
|
|
|
17,117,041
|
|
|
|
17,117,041
|
|
|
13,463,353
|
|
|
|
13,463,353
|
Table
B
|
|
S&W SEED
COMPANY
|
ITEMIZED
RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED
EBITDA
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2015
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,217,154)
|
|
$
|
(1,874,233)
|
|
|
|
|
|
|
|
Non-recurring cost of
revenue charges
|
|
|
-
|
|
|
259,566
|
|
|
|
|
|
|
|
Non-cash stock based
compensation
|
|
|
282,425
|
|
|
324,561
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
834,697
|
|
|
788,796
|
|
|
|
|
|
|
|
Foreign currency
(gain) loss
|
|
|
(3,646)
|
|
|
83,346
|
|
|
|
|
|
|
|
Change in derivative
warrant liabilities
|
|
|
1,127,700
|
|
|
(539,000)
|
|
|
|
|
|
|
|
Change in contingent
consideration obligations
|
|
|
107,081
|
|
|
(95,284)
|
|
|
|
|
|
|
|
Loss on equity method
investment
|
|
|
49,249
|
|
|
94,362
|
|
|
|
|
|
|
|
Interest expense -
amortization of debt discount
|
|
|
599,458
|
|
|
906,252
|
|
|
|
|
|
|
|
Interest expense -
convertible debt and other
|
|
|
352,542
|
|
|
696,235
|
|
|
|
|
|
|
|
Benefit from income
taxes
|
|
|
(1,103,408)
|
|
|
(1,249,943)
|
|
|
|
|
|
|
|
Non-GAAP Adjusted
EBITDA
|
|
$
|
(971,056)
|
|
$
|
(605,342)
|
S&W SEED
COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
|
June
30,
|
|
|
|
2016
|
|
|
2016
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
5,264,654
|
|
$
|
6,904,500
|
Accounts receivable,
net
|
|
|
27,646,573
|
|
|
27,619,599
|
Inventories,
net
|
|
|
49,569,515
|
|
|
21,846,130
|
Prepaid expenses and
other current assets
|
|
|
1,274,871
|
|
|
1,218,280
|
TOTAL CURRENT
ASSETS
|
|
|
83,755,613
|
|
|
57,588,509
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
12,591,294
|
|
|
12,600,106
|
Intangibles,
net
|
|
|
36,527,365
|
|
|
37,006,802
|
Goodwill
|
|
|
10,292,265
|
|
|
10,292,265
|
Deferred tax
assets
|
|
|
8,450,033
|
|
|
7,279,923
|
Other
assets
|
|
|
2,188,131
|
|
|
2,237,380
|
TOTAL
ASSETS
|
|
$
|
153,804,701
|
|
$
|
127,004,985
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CURRENT
LIABILITIES
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
37,795,148
|
|
$
|
14,303,877
|
Accounts payable -
related parties
|
|
|
3,239,728
|
|
|
396,027
|
Deferred
revenue
|
|
|
11,103,617
|
|
|
509,857
|
Accrued expenses and
other current liabilities
|
|
|
2,110,979
|
|
|
2,385,160
|
Lines of
credit
|
|
|
10,168,347
|
|
|
16,687,473
|
Current portion of
long-term debt
|
|
|
286,122
|
|
|
275,094
|
Current portion of
convertible debt, net
|
|
|
3,214,192
|
|
|
6,840,608
|
TOTAL CURRENT
LIABILITIES
|
|
|
67,918,133
|
|
|
41,398,096
|
|
|
|
|
|
|
|
Contingent
consideration obligations
|
|
|
2,375,497
|
|
|
2,268,416
|
Long-term debt, less
current portion
|
|
|
11,125,238
|
|
|
11,114,333
|
Derivative warrant
liabilities
|
|
|
5,481,800
|
|
|
4,354,100
|
Other non-current
liabilities
|
|
|
91,930
|
|
|
108,596
|
|
|
|
|
|
|
|
TOTAL
LIABILITIES
|
|
|
86,992,598
|
|
|
59,243,541
|
|
|
|
|
|
|
|
STOCKHOLDERS'
EQUITY
|
|
|
|
|
|
|
Preferred stock,
$0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding
|
|
|
-
|
|
|
-
|
Common stock, $0.001
par value; 50,000,000 shares authorized; 17,492,618 issued and 17,467,618 outstanding at
September 30, 2016; 17,086,111
issued and 17,061,111 outstanding at June 30, 2016;
|
|
|
17,493
|
|
|
17,086
|
Treasury stock, at
cost, 25,000 shares
|
|
|
(134,196)
|
|
|
(134,196)
|
Additional paid-in
capital
|
|
|
80,344,704
|
|
|
78,282,461
|
Accumulated
deficit
|
|
|
(7,831,398)
|
|
|
(4,614,244)
|
Accumulated other
comprehensive loss
|
|
|
(5,584,500)
|
|
|
(5,789,663)
|
TOTAL STOCKHOLDERS'
EQUITY
|
|
|
66,812,103
|
|
|
67,761,444
|
TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
$
|
153,804,701
|
|
$
|
127,004,985
|
S&W SEED
COMPANY
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
|
September
30,
|
|
|
|
2016
|
|
|
2015
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
|
|
Net loss
|
|
$
|
(3,217,154)
|
|
$
|
(1,874,233)
|
Adjustments to reconcile net loss to net cash
provided
|
|
|
|
|
|
|
by operating
activities
|
|
|
|
|
|
|
Stock-based compensation
|
|
|
282,425
|
|
|
324,561
|
Change in allowance for doubtful accounts
|
|
|
-
|
|
|
(1,000)
|
Depreciation and amortization
|
|
|
834,697
|
|
|
788,796
|
Change in deferred tax asset
|
|
|
(1,170,110)
|
|
|
(1,450,117)
|
Change in foreign exchange
contracts
|
|
|
(23,841)
|
|
|
586,431
|
Change in derivative warrant
liabilities
|
|
|
1,127,700
|
|
|
(539,000)
|
Change in contingent
consideration obligations
|
|
|
107,081
|
|
|
(95,284)
|
Amortization of debt discount
|
|
|
599,458
|
|
|
906,252
|
Loss on equity method
investment
|
|
|
49,249
|
|
|
94,362
|
Changes in operating assets and liabilities, net:
|
|
|
|
|
|
|
Accounts receivable
|
|
|
211,471
|
|
|
118,389
|
Inventories
|
|
|
(27,521,148)
|
|
|
(21,482,850)
|
Prepaid expenses and other current assets
|
|
|
(58,342)
|
|
|
(311,159)
|
Other non-current assets
|
|
|
-
|
|
|
(140,568)
|
Accounts payable
|
|
|
23,223,125
|
|
|
17,681,243
|
Accounts payable - related parties
|
|
|
2,843,701
|
|
|
2,789,651
|
Deferred revenue
|
|
|
10,593,608
|
|
|
14,096,618
|
Accrued expenses and other current liabilities
|
|
|
(263,877)
|
|
|
(472,841)
|
Other non-current liabilities
|
|
|
(18,054)
|
|
|
(45,219)
|
Net cash provided by operating activities
|
|
|
7,599,989
|
|
|
10,974,032
|
|
|
|
|
|
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
(212,680)
|
|
|
(247,067)
|
Additions to internal use software
|
|
|
(76,540)
|
|
|
(110,326)
|
Net cash used in investing activities
|
|
|
(289,220)
|
|
|
(357,393)
|
|
|
|
|
|
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
|
|
Taxes paid related to net share settlements of stock-based
compensation awards
|
|
|
(24,737)
|
|
|
(23,302)
|
Borrowings and repayments on lines of credit, net
|
|
|
(6,634,833)
|
|
|
(3,414,683)
|
Borrowings of long-term debt
|
|
|
25,536
|
|
|
85,368
|
Repayments of long-term debt
|
|
|
(34,451)
|
|
|
(2,223)
|
Repayments of convertible debt
|
|
|
(2,416,503)
|
|
|
(2,141,675)
|
Net cash used in financing activities
|
|
|
(9,084,988)
|
|
|
(5,496,515)
|
|
|
|
|
|
|
|
EFFECT OF EXCHANGE
RATE CHANGES ON CASH
|
|
|
134,373
|
|
|
(276,262)
|
|
|
|
|
|
|
|
NET (DECREASE)
INCREASE IN CASH AND CASH EQUIVALENTS
|
|
|
(1,639,846)
|
|
|
4,843,862
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, beginning of the period
|
|
|
6,904,500
|
|
|
3,535,458
|
|
|
|
|
|
|
|
CASH AND CASH
EQUIVALENTS, end of period
|
|
$
|
5,264,654
|
|
$
|
8,379,320
|
Logo - http://photos.prnewswire.com/prnh/20160124/325263LOGO
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/sw-announces-results-for-the-first-quarter-of-fiscal-2017-300360843.html
SOURCE S&W Seed Company