Company to host conference call and webcast today at
Financial Highlights
- Revenue for fiscal 2024 was
$60.4 million , a 17.8% decrease compared to fiscal 2023. Double Team™ sorghum revenue was$10.9 million in fiscal 2024 compared to$6.5 million in fiscal 2023. - Gross profit margin for fiscal 2024 was 26.2%, an improvement from 19.8% in fiscal 2023.
- Gross profit dollar for fiscal 2024 was
$15.8 million , an improvement of$1.3 million from$14.5 million in fiscal 2023. - GAAP net loss was
($30.1) million , or ($13.21 ) per basic and diluted share, for fiscal 2024 compared to GAAP net income of$14.4 million , or$6.40 per basic share and$6.38 per diluted share, for fiscal 2023. A$38.2 million gain was recognized in fiscal 2023 related to the formation of Vision Bioenergy Oilseeds LLC, or Vision Bioenergy, a biofuel production partnership withEquilon Enterprises LLC (dbaShell Oil Products US , or Shell). - Adjusted EBITDA (see Table B) was
($8.5) million for fiscal 2024 compared to($9.3) million for fiscal 2023. - Received
$6.0 million payment from Shell inFebruary 2024 as additional consideration related to the formation of Vision Bioenergy inFebruary 2023 . Received$1.0 million payment fromTrigall Genetics S.A. , or Trigall, inJanuary 2024 as additional consideration related to the sale of 80% interest inTrigall Australia Pty Ltd. , or Trigall Australia, a wheat development partnership, inDecember 2022 . Received additional$0.4 million from Trigall inMay 2024 for the sale of remaining 20% interest in Trigall Australia and assets used in the partnership.
Management Discussion
"Since taking over as CEO in
"While the
"As we look to the remainder of fiscal 2025, we are laser focused on the continued growth and expansion of our Double Team operations in the
Financial Results
Total revenue for fiscal 2024 was
Gross profit margin for fiscal 2024 was 26.2% compared to gross profit margin for fiscal 2023 of 19.8%. The improvement in gross profit margin was primarily driven by increased sales of higher margin Double Team sorghum and decreased sales of low margin sorghum forages and grasses. The 6.4 percentage point increase is attributed to increased sales of higher margin products including Double Team sorghum (6.3 percentage points) and improved focus on inventory management and reducing operational costs while increasing efficiencies in S&W's production facilities (3.9 percentage points), offset by decreased margin of non-dormant alfalfa driven by reduced demand in the MENA region (-3.4 percentage points) and lower volumes in the Australian domestic market (-0.4 percentage points).
GAAP operating expenses for fiscal 2024 were
Adjusted operating expenses (see Table A1) for fiscal 2024 were
GAAP net loss for fiscal 2024 was
Adjusted net loss (see Table A2) for fiscal 2024 was
Adjusted EBITDA (see Table B) for fiscal 2024 was
S&W Australia
S&W Australia's entry into
Nasdaq Listing
As previously announced, S&W received a letter from
Following a special meeting of stockholders, S&W's Board of Directors, or the Board, unanimously approved a reverse stock split of all issued and outstanding shares of the Company's common stock, at a ratio of 1-for-19, or the Reverse Stock Split. The Reverse Stock Split was implemented at
Fiscal 2025 Guidance
S&W anticipates providing a detailed financial outlook for fiscal 2025 in its first quarter fiscal 2025 financial results press release and related earnings call in
Conference Call
S&W has scheduled a conference call for
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.
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.
Gain on disposal of intangible assets. The gain is the result of S&W's transfer of certain intellectual property rights under a license agreement to Trigall Australia as part of its equity investment in the partnership in fiscal 2023. This is a unique item 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.
Impairment charges. The intangibles impairment charge relates to the impairment of the customer relationships intangible in
Foreign currency loss. The foreign currency loss 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.
Loss (gain) on sale of business interest. The loss (gain) on the sale of business interest relates to the (loss) gain S&W recognized from the Vision Bioenergy transaction, for which we have a 34% membership interest. 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.
Loss (gain) on sale of equity investment. The loss (gain) on the sale of equity investment represents the sale of S&W's remaining 20% interest in Trigall Australia and the sale from S&W's
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 years ended
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 on disposal of property, plant and equipment, non-recurring transaction costs, and impairment charges. 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) income attributable to S&W less interest expense – amortization of debt discount, non-recurring transaction costs, impairment charges, dividends accrued for participating securities and accretion, gain on sale of business interest, loss (gain) on sale of equity investment, 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) income attributable to S&W adjusted to exclude interest expense, net, interest expense – amortization of debt discount, benefit from income taxes, depreciation and amortization, non-recurring transaction costs, impairment charges, non-cash stock-based compensation, foreign currency loss, gain on sale of business interest, loss (gain) on sale of equity investment, gain on disposal of intangible assets, 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
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: the timing of the resolution of the
Company Contact:
Phone: (720) 593-3570
www.swseedco.com
Investor Contact:
Phone: (602) 889-9700
sanw@lythampartners.com
www.lythampartners.com
|
|
||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||
|
(UNAUDITED) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
|
|
|
Years Ended |
||||||||||
|
|
|
|
|
|
|
|
||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
|
2024 |
|
|
2023 |
||||
|
Revenue |
|
$ |
14,819,736 |
|
|
$ |
23,055,316 |
|
|
|
$ |
60,441,646 |
|
|
$ |
73,521,291 |
|
Cost of revenue (excluding depreciation and amortization) |
|
|
12,339,724 |
|
|
|
20,193,918 |
|
|
|
|
44,631,897 |
|
|
|
58,983,210 |
|
Gross profit |
|
|
2,480,012 |
|
|
|
2,861,398 |
|
|
|
|
15,809,749 |
|
|
|
14,538,081 |
|
Operating expenses |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling, general and administrative expenses |
|
|
4,410,084 |
|
|
|
5,144,445 |
|
|
|
|
21,725,874 |
|
|
|
22,430,687 |
|
Research and development expenses |
|
|
1,044,892 |
|
|
|
1,014,394 |
|
|
|
|
4,062,419 |
|
|
|
5,237,772 |
|
Depreciation and amortization |
|
|
1,067,176 |
|
|
|
1,071,265 |
|
|
|
|
4,288,449 |
|
|
|
4,768,809 |
|
(Gain) loss on disposal of property, plant and equipment |
|
|
(19,121) |
|
|
|
11,423 |
|
|
|
|
(109,746) |
|
|
|
44,335 |
|
Impairment charges |
|
|
3,531,010 |
|
|
|
— |
|
|
|
|
3,531,010 |
|
|
|
— |
|
Total operating expenses |
|
|
10,034,041 |
|
|
|
7,241,527 |
|
|
|
|
33,498,006 |
|
|
|
32,481,603 |
|
Loss from operations |
|
|
(7,554,029) |
|
|
|
(4,380,129) |
|
|
|
|
(17,688,257) |
|
|
|
(17,943,522) |
|
Other (income) expense |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Foreign currency loss |
|
|
50,165 |
|
|
|
162,189 |
|
|
|
|
1,213,732 |
|
|
|
859,696 |
|
Government grant income |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(1,444,044) |
|
Loss (gain) on sale of business interest |
|
|
— |
|
|
|
156,404 |
|
|
|
|
— |
|
|
|
(38,167,102) |
|
Gain on disposal of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
|
(1,796,252) |
|
Loss (gain) on sale of equity investment |
|
|
534,189 |
|
|
|
— |
|
|
|
|
534,189 |
|
|
|
(32,030) |
|
Interest expense - amortization of debt discount |
|
|
515,953 |
|
|
|
416,339 |
|
|
|
|
1,883,573 |
|
|
|
1,975,938 |
|
Interest expense, net |
|
|
1,380,668 |
|
|
|
1,142,483 |
|
|
|
|
5,520,991 |
|
|
|
4,184,067 |
|
Other (income) expenses |
|
|
8,301 |
|
|
|
56,098 |
|
|
|
|
(139,067) |
|
|
|
1,552,154 |
|
(Loss) income before income taxes |
|
|
(10,043,305) |
|
|
|
(6,313,642) |
|
|
|
|
(26,701,675) |
|
|
|
14,924,051 |
|
Provision for (benefit from) income taxes |
|
|
1,350,884 |
|
|
|
115,150 |
|
|
|
|
496,290 |
|
|
|
(763,639) |
|
(Loss) income before equity in net earnings of affiliates |
|
|
(11,394,189) |
|
|
|
(6,428,792) |
|
|
|
|
(27,197,965) |
|
|
|
15,687,690 |
|
Equity in loss of equity method investees, net of tax |
|
|
733,748 |
|
|
|
841,637 |
|
|
|
|
2,858,424 |
|
|
|
1,252,330 |
|
Net (loss) income |
|
|
(12,127,937) |
|
|
|
(7,270,429) |
|
|
|
|
(30,056,389) |
|
|
|
14,435,360 |
|
(Loss) income attributable to noncontrolling interests |
|
|
(15,981) |
|
|
|
41,924 |
|
|
|
|
(25,412) |
|
|
|
25,282 |
|
Net (loss) income attributable to |
|
$ |
(12,111,956) |
|
|
$ |
(7,312,353) |
|
|
|
$ |
(30,030,977) |
|
|
$ |
14,410,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Calculation of net (loss) income per share: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net (loss) income attributable to |
|
$ |
(12,111,956) |
|
|
$ |
(7,312,353) |
|
|
|
$ |
(30,030,977) |
|
|
$ |
14,410,078 |
|
Dividends accrued for participating securities and accretion |
|
|
(126,782) |
|
|
|
(120,070) |
|
|
|
|
(494,617) |
|
|
|
(469,329) |
|
Net (loss) income attributable to common shareholders |
|
$ |
(12,238,738) |
|
|
$ |
(7,432,423) |
|
|
|
$ |
(30,525,594) |
|
|
$ |
13,940,749 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net (loss) income attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
(5.31) |
|
|
$ |
(3.23) |
|
|
|
$ |
(13.21) |
|
|
$ |
6.40 |
|
Diluted |
|
$ |
(5.31) |
|
|
$ |
(3.22) |
|
|
|
$ |
(13.21) |
|
|
$ |
6.38 |
|
Weighted average number of common shares outstanding, |
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
2,281,258 |
|
|
|
2,261,486 |
|
|
|
|
2,273,112 |
|
|
|
2,250,146 |
|
Diluted |
|
|
2,281,258 |
|
|
|
2,269,553 |
|
|
|
|
2,273,112 |
|
|
|
2,259,766 |
|
TABLE A1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|||||||||||||||||
|
ITEMIZED RECONCILIATION BETWEEN OPERATING EXPENSES AND NON-GAAP ADJUSTED OPERATING EXPENSES |
|||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
|
|
Years Ended |
|
|
||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
||||
|
Operating expenses |
|
|
10,034,041 |
|
|
|
7,241,527 |
|
|
|
33,498,006 |
|
|
|
32,481,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Less: |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation and amortization |
|
|
(1,067,176) |
|
|
|
(1,071,265) |
|
|
|
(4,288,449) |
|
|
|
(4,768,809) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-recurring transaction costs |
|
|
(150,447) |
|
|
|
(274,434) |
|
|
|
(713,526) |
|
|
|
(1,240,274) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gain (loss) on disposal of property, plant and equipment |
|
|
19,121 |
|
|
|
(11,423) |
|
|
|
109,746 |
|
|
|
(44,335) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Impairment charges |
|
|
(3,531,010) |
|
|
|
- |
|
|
|
(3,531,010) |
|
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-GAAP adjusted operating expenses |
|
|
5,304,529 |
|
|
|
5,884,405 |
|
|
|
25,074,767 |
|
|
|
26,428,185 |
|
|
|
TABLE A2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|||||||||||||||||
|
ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED NET LOSS |
|||||||||||||||||
|
(UNAUDITED) |
|||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
Three Months Ended |
|
|
Years Ended |
|
|
||||||||||
|
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
|
||||
|
Net (loss) income attributable to |
|
$ |
(12,111,956) |
|
|
$ |
(7,312,353) |
|
|
$ |
(30,030,977) |
|
|
$ |
14,410,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Impairment charges |
|
|
3,531,010 |
|
|
|
— |
|
|
|
3,531,010 |
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense - amortization of debt discount |
|
|
515,953 |
|
|
|
416,339 |
|
|
|
1,883,573 |
|
|
|
1,975,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other finance expenses |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,458,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gain on disposal of intangible assets |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(1,796,252) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-recurring transaction costs |
|
|
150,447 |
|
|
|
274,434 |
|
|
|
713,526 |
|
|
|
1,240,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Dividends accrued for participating securities and accretion |
|
|
(126,782) |
|
|
|
(120,070) |
|
|
|
(494,617) |
|
|
|
(469,329) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss (gain) on sale of business interest |
|
|
— |
|
|
|
156,404 |
|
|
|
— |
|
|
|
(38,167,102) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss (gain) on sale of equity investment |
|
|
534,189 |
|
|
|
— |
|
|
|
534,189 |
|
|
|
(32,030) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Equity in loss of equity method investee (Vision |
|
|
771,647 |
|
|
|
323,538 |
|
|
|
2,613,277 |
|
|
|
1,089,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-GAAP adjusted net loss |
|
$ |
(6,735,492) |
|
|
$ |
(6,261,708) |
|
|
$ |
(21,250,019) |
|
|
$ |
(20,290,909) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-GAAP adjusted net loss attributable to |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
$ |
(2.95) |
|
|
$ |
(2.77) |
|
|
$ |
(9.35) |
|
|
$ |
(9.02) |
|
|
|
Diluted |
|
$ |
(2.95) |
|
|
$ |
(2.76) |
|
|
$ |
(9.35) |
|
|
$ |
(8.98) |
|
|
|
Weighted average number of common shares outstanding, |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Basic |
|
|
2,281,258 |
|
|
|
2,261,486 |
|
|
|
2,273,112 |
|
|
|
2,250,146 |
|
|
|
Diluted |
|
|
2,281,258 |
|
|
|
2,269,553 |
|
|
|
2,273,112 |
|
|
|
2,259,766 |
|
|
|
TABLE B |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
|||||||||||||||||||
|
ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED EBITDA |
|
|
|||||||||||||||||||
|
(UNAUDITED) |
|
|
|||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
|
|
Three Months Ended |
|
Years Ended |
|
|
||||||||||||||
|
|
|
|
|
|
|
|
|
||||||||||||||
|
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
||||
|
Net (loss) income attributable to |
|
$ |
|
(12,111,956) |
|
|
$ |
|
(7,312,353) |
|
|
$ |
|
(30,030,977) |
|
|
$ |
|
14,410,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense, net |
|
|
|
1,380,668 |
|
|
|
|
1,142,483 |
|
|
|
|
5,520,991 |
|
|
|
|
4,184,067 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Interest expense - amortization of debt discount |
|
|
|
515,953 |
|
|
|
|
416,339 |
|
|
|
|
1,883,573 |
|
|
|
|
1,975,938 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Other finance expenses |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
1,458,168 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Provision for (benefit from) income taxes |
|
|
|
1,350,884 |
|
|
|
|
115,150 |
|
|
|
|
496,290 |
|
|
|
|
(763,639) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Depreciation and amortization |
|
|
|
1,067,176 |
|
|
|
|
1,071,265 |
|
|
|
|
4,288,449 |
|
|
|
|
4,768,809 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Impairment charges |
|
|
|
3,531,010 |
|
|
|
|
— |
|
|
|
|
3,531,010 |
|
|
|
|
— |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-recurring transaction costs |
|
|
|
150,447 |
|
|
|
|
274,434 |
|
|
|
|
713,526 |
|
|
|
|
1,240,274 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-cash stock-based compensation |
|
|
|
253,708 |
|
|
|
|
549,522 |
|
|
|
|
1,232,938 |
|
|
|
|
1,932,415 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Foreign currency loss |
|
|
|
50,165 |
|
|
|
|
162,189 |
|
|
|
|
1,213,732 |
|
|
|
|
859,696 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Gain on disposal of intangible assets |
|
|
|
— |
|
|
|
|
— |
|
|
|
|
— |
|
|
|
|
(1,796,252) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss (gain) on sale of business |
|
|
|
— |
|
|
|
|
156,404 |
|
|
|
|
— |
|
|
|
|
(38,167,102) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Loss (gain) on sale of equity investments |
|
|
|
534,189 |
|
|
|
|
— |
|
|
|
|
534,189 |
|
|
|
|
(32,030) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Equity in loss of equity method investee (Vision |
|
|
|
771,647 |
|
|
|
|
765,808 |
|
|
|
|
2,613,277 |
|
|
|
|
1,089,346 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Dividends accrued for participating securities and |
|
|
|
(126,782) |
|
|
|
|
(120,070) |
|
|
|
|
(494,617) |
|
|
|
|
(469,329) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Non-GAAP adjusted EBITDA |
|
$ |
|
(2,632,891) |
|
|
$ |
|
(2,778,829) |
|
|
$ |
|
(8,497,619) |
|
|
$ |
|
(9,309,561) |
|
|
|
|
|
||||||||||
|
CONSOLIDATED BALANCE SHEETS |
|
||||||||||
|
(UNAUDITED) |
|
||||||||||
|
|
|
|
|
|
|
|
|
|
|
||
|
|
|
|
|
As of |
|
|
|
As of |
|
||
|
ASSETS |
|
|
|
|
|
|
|
|
|
||
|
CURRENT ASSETS |
|
|
|
|
|
|
|
|
|
||
|
Cash and cash equivalents |
|
|
$ |
|
294,014 |
|
|
$ |
|
3,398,793 |
|
|
Accounts receivable, net |
|
|
|
|
20,865,224 |
|
|
|
|
24,622,727 |
|
|
Notes receivable, net |
|
|
|
|
— |
|
|
|
|
6,846,897 |
|
|
Inventories, net |
|
|
|
|
38,107,103 |
|
|
|
|
45,098,268 |
|
|
Prepaid expenses and other current assets |
|
|
|
|
4,108,149 |
|
|
|
|
4,099,027 |
|
|
TOTAL CURRENT ASSETS |
|
|
|
|
63,374,490 |
|
|
|
|
84,065,712 |
|
|
Property, plant and equipment, net |
|
|
|
|
9,667,273 |
|
|
|
|
10,082,168 |
|
|
Intellectual property, net |
|
|
|
|
20,265,618 |
|
|
|
|
21,650,534 |
|
|
Other Intangibles, net |
|
|
|
|
3,783,389 |
|
|
|
|
8,082,325 |
|
|
Right of use asset - operating leases |
|
|
|
|
2,248,818 |
|
|
|
|
2,983,303 |
|
|
Equity method investments |
|
|
|
|
19,694,209 |
|
|
|
|
23,059,705 |
|
|
Other assets |
|
|
|
|
1,691,744 |
|
|
|
|
2,066,081 |
|
|
TOTAL ASSETS |
|
|
$ |
|
120,725,541 |
|
|
$ |
|
151,989,828 |
|
|
LIABILITIES, MEZZANINE EQUITY AND STOCKHOLDERS' |
|
|
|
|
|
|
|
|
|
||
|
CURRENT LIABILITIES |
|
|
|
|
|
|
|
|
|
||
|
Accounts payable |
|
|
$ |
|
13,491,826 |
|
|
$ |
|
13,312,180 |
|
|
Deferred revenue |
|
|
|
|
872,739 |
|
|
|
|
464,707 |
|
|
Accrued expenses and other current liabilities |
|
|
|
|
6,894,494 |
|
|
|
|
8,804,456 |
|
|
Current portion of working capital lines of credit, net |
|
|
|
|
43,724,157 |
|
|
|
|
44,900,779 |
|
|
Current portion of long-term debt, net |
|
|
|
|
4,259,108 |
|
|
|
|
3,808,761 |
|
|
TOTAL CURRENT LIABILITIES |
|
|
|
|
69,242,324 |
|
|
|
|
71,290,883 |
|
|
Long-term debt, net, less current portion |
|
|
|
|
4,873,236 |
|
|
|
|
4,499,334 |
|
|
Other non-current liabilities |
|
|
|
|
1,578,856 |
|
|
|
|
2,102,030 |
|
|
TOTAL LIABILITIES |
|
|
|
|
75,694,416 |
|
|
|
|
77,892,247 |
|
|
MEZZANINE EQUITY |
|
|
|
|
|
|
|
|
|
||
|
Preferred stock, |
|
|
|
|
5,768,765 |
|
|
|
|
5,274,148 |
|
|
TOTAL MEZZANINE EQUITY |
|
|
|
|
5,768,765 |
|
|
|
|
5,274,148 |
|
|
STOCKHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
||
|
Common stock, |
|
|
|
|
43,369 |
|
|
|
|
43,004 |
|
|
|
|
|
|
|
(134,196) |
|
|
|
|
(134,196) |
|
|
Additional paid-in capital |
|
|
|
|
168,807,072 |
|
|
|
|
167,768,104 |
|
|
Accumulated deficit |
|
|
|
|
(122,090,479) |
|
|
|
|
(91,932,808) |
|
|
Accumulated other comprehensive loss |
|
|
|
|
(7,405,114) |
|
|
|
|
(6,987,791) |
|
|
Noncontrolling interests |
|
|
|
|
41,708 |
|
|
|
|
67,120 |
|
|
TOTAL STOCKHOLDERS' EQUITY |
|
|
|
|
39,262,360 |
|
|
|
|
68,823,433 |
|
|
TOTAL LIABILITIES, MEZZANINE EQUITY AND |
|
|
$ |
|
120,725,541 |
|
|
$ |
|
151,989,828 |
|
|
|
|||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS |
|||||||||
|
(UNAUDITED) |
|||||||||
|
|
|
|
Years Ended |
||||||
|
|
|
|
2024 |
|
|
|
2023 |
||
|
CASH FLOWS FROM OPERATING ACTIVITIES |
|
|
|
|
|
|
|
||
|
Net (loss) income |
|
$ |
|
(30,056,389) |
|
|
$ |
|
14,435,360 |
|
Adjustments to reconcile net (loss) income from operating activities to net cash used in |
|
|
|
|
|
|
|
||
|
Stock-based compensation |
|
|
|
1,232,938 |
|
|
|
|
1,932,416 |
|
Provision for credit losses |
|
|
|
462,874 |
|
|
|
|
11,659 |
|
Inventory write-down |
|
|
|
1,964,632 |
|
|
|
|
2,778,414 |
|
Depreciation and amortization |
|
|
|
4,288,450 |
|
|
|
|
4,768,809 |
|
Impairment charges |
|
|
|
3,531,010 |
|
|
|
|
— |
|
(Gain) loss on disposal of property, plant and equipment |
|
|
|
(109,746) |
|
|
|
|
44,335 |
|
Gain on disposal of intangible assets |
|
|
|
— |
|
|
|
|
(1,796,252) |
|
Gain on sale of equity investment |
|
|
|
— |
|
|
|
|
(38,167,102) |
|
Loss (gain) on sale of equity investment |
|
|
|
534,189 |
|
|
|
|
(32,030) |
|
Equity in loss of equity method investees, net of tax |
|
|
|
2,858,424 |
|
|
|
|
1,252,330 |
|
Government grant income |
|
|
|
— |
|
|
|
|
(1,444,044) |
|
Change in deferred tax provision |
|
|
|
485,630 |
|
|
|
|
(806,479) |
|
Change in foreign exchange contracts |
|
|
|
(823,834) |
|
|
|
|
(63,889) |
|
Foreign currency transactions |
|
|
|
1,212,816 |
|
|
|
|
46,283 |
|
Amortization of debt discount |
|
|
|
1,883,573 |
|
|
|
|
1,975,938 |
|
Accretion of note receivable |
|
|
|
(153,110) |
|
|
|
|
(99,763) |
|
Changes in: |
|
|
|
|
|
|
|
||
|
Accounts receivable |
|
|
|
3,341,360 |
|
|
|
|
(5,840,310) |
|
Inventories |
|
|
|
5,132,472 |
|
|
|
|
5,755,856 |
|
Prepaid expenses and other current assets |
|
|
|
(1,112,299) |
|
|
|
|
84,605 |
|
Other non-current assets |
|
|
|
78,475 |
|
|
|
|
(27,950) |
|
Accounts payable |
|
|
|
99,359 |
|
|
|
|
(2,151,619) |
|
Deferred revenue |
|
|
|
401,859 |
|
|
|
|
(139,826) |
|
Accrued expenses and other current liabilities |
|
|
|
(842,663) |
|
|
|
|
(1,344,945) |
|
Other non-current liabilities |
|
|
|
(47,042) |
|
|
|
|
(149,946) |
|
Net cash used in operating activities |
|
|
|
(5,637,022) |
|
|
|
|
(18,978,150) |
|
CASH FLOWS FROM INVESTING ACTIVITIES |
|
|
|
|
|
|
|
||
|
Proceeds from sale of business interest |
|
|
|
6,000,000 |
|
|
|
|
7,000,000 |
|
Proceeds from partnership transaction |
|
|
|
1,000,000 |
|
|
|
|
2,000,000 |
|
Additions to property, plant and equipment |
|
|
|
(1,543,100) |
|
|
|
|
(856,716) |
|
Proceeds from disposal of property, plant and equipment |
|
|
|
458,878 |
|
|
|
|
1,417 |
|
Capital contributions to partnerships |
|
|
|
(147,239) |
|
|
|
|
(172,917) |
|
Net proceeds from sale of equity investment |
|
|
|
109,529 |
|
|
|
|
400,000 |
|
Net cash provided by investing activities |
|
|
|
5,878,068 |
|
|
|
|
8,371,784 |
|
CASH FLOWS FROM FINANCING ACTIVITIES |
|
|
|
|
|
|
|
||
|
Borrowings and repayments on lines of credit, net |
|
|
|
(2,658,002) |
|
|
|
|
9,857,653 |
|
Borrowings of long-term debt |
|
|
|
1,335,029 |
|
|
|
|
4,208,460 |
|
Repayments of long-term debt |
|
|
|
(1,219,788) |
|
|
|
|
(1,743,514) |
|
Debt issuance costs |
|
|
|
(605,177) |
|
|
|
|
(421,538) |
|
Cash paid related to stock issuance costs |
|
|
|
(165,812) |
|
|
|
|
— |
|
Net proceeds from sale of common stock |
|
|
|
— |
|
|
|
|
128,778 |
|
Issuance of common stock for cash upon exercise of stock options |
|
|
|
— |
|
|
|
|
1,994 |
|
Taxes paid related to net share settlements of stock-based compensation awards |
|
|
|
(32,658) |
|
|
|
|
(82,165) |
|
Net cash (used in) provided by financing activities |
|
|
|
(3,346,408) |
|
|
|
|
11,949,668 |
|
EFFECT OF EXCHANGE RATE CHANGES ON CASH |
|
|
|
583 |
|
|
|
|
(1,017) |
|
NET (DECREASE) INCREASE IN CASH & CASH EQUIVALENTS |
|
|
|
(3,104,779) |
|
|
|
|
1,342,285 |
|
CASH AND CASH EQUIVALENTS, beginning of the period |
|
|
|
3,398,793 |
|
|
|
|
2,056,508 |
|
CASH AND CASH EQUIVALENTS, end of period |
|
$ |
|
294,014 |
|
|
$ |
|
3,398,793 |
|
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION |
|
|
|
|
|
|
|
||
|
Cash paid during the period for: |
|
|
|
|
|
|
|
||
|
Interest |
|
$ |
|
5,488,517 |
|
|
$ |
|
4,380,703 |
|
Income taxes |
|
|
|
29,846 |
|
|
|
|
130 |
View original content to download multimedia:https://www.prnewswire.com/news-releases/sw-announces-fiscal-2024-financial-results-302293516.html
SOURCE
