S&W Seed pany(SANW) - 2025 Q2 - Quarterly Results

Revenue Performance - Revenue for Q2 fiscal 2025 was $5.1 million, a 38.5% decrease compared to$ 8.3 million in Q2 fiscal 2024[9] - Revenue for the three months ended December 31, 2024, was $5,076,898, a decrease of 38.5% compared to$ 8,261,308 for the same period in 2023[38] - S&W expects fiscal 2025 revenue to range from $34.5 million to$ 38.0 million, including approximately $4.1 million of international sales in Q1 fiscal 2025[16] Profitability and Loss - Gross profit margin for Q2 fiscal 2025 was 37.1%, down from 42.8% in Q2 fiscal 2024, primarily due to decreased sales of high-margin products[10] - Net loss from continuing operations was ($ 6.3) million, or ( $2.73) per share, compared to a loss of ($ 3.8) million, or ( $1.66) per share in Q2 fiscal 2024[13] - Adjusted EBITDA for Q2 fiscal 2025 was ($ 2.9) million, worsening from ( $1.1) million in Q2 fiscal 2024[15] - Net loss attributable to S&W Seed Company for the six months ended December 31, 2024, was$ 17,890,583, compared to a net loss of $12,418,481 in 2023, representing a 43.9% increase in loss[38] - The company reported a net loss per share from continuing operations of$ 5.46 for the six months ended December 31, 2024, compared to $3.81 in 2023[38] - Non-GAAP adjusted net loss for the six months ended December 31, 2024, was$ 9,623,047, compared to $6,574,749 for the same period in 2023, representing an increase of approximately 46%[44] Operating Expenses - GAAP operating expenses were$ 6.2 million in Q2 fiscal 2025, up from $5.7 million in Q2 fiscal 2024[11] - Operating expenses for the six months ended December 31, 2024, were$ 11,796,731, slightly up from $11,453,963 in the same period of 2023, reflecting an increase of about 3%[43] - Research and development expenses for the six months ended December 31, 2024, were$ 1,574,406, compared to $1,502,483 in 2023, reflecting a 4.8% increase[38] Strategic Initiatives - S&W is exploring various strategic alternatives to enhance shareholder value, including potential mergers or recapitalization[8] - The company is exploring various strategic alternatives, including potential transactions or outcomes from divesting its Australian subsidiary[35] Financial Position - Total current assets decreased from$ 63,374,490 as of June 30, 2024, to $34,198,471 as of December 31, 2024, representing a decline of approximately 46%[40] - Total liabilities decreased from$ 75,694,416 as of June 30, 2024, to $38,330,024 as of December 31, 2024, a reduction of about 49%[40] - Total stockholders' equity decreased from$ 39,262,360 as of June 30, 2024, to $28,963,859 as of December 31, 2024, a decline of about 26%[40] Cash Flow - The company experienced a net cash provided by operating activities of$ 3,924,258 for the six months ended December 31, 2024, compared to $1,436,824 for the same period in 2023, an increase of approximately 173%[42] - Cash and cash equivalents increased to$ 1,393,200 at the end of the period from $286,508 at the beginning, marking a significant increase of approximately 386%[42] Other Financial Metrics - Non-GAAP adjusted EBITDA for the six months ended December 31, 2024, was$ (5,997,141), an increase in loss from $(2,796,305) in the same period of 2023[45] - Interest expense for the three months ended December 31, 2024, was$ 830,235, up from $712,290 in the same period of 2023[45] - Depreciation and amortization for the six months ended December 31, 2024, totaled$ 1,510,804, compared to $1,625,385 in the same period of 2023[45] - Non-recurring transaction costs for the three months ended December 31, 2024, were$ 601,442, significantly higher than $48,551 in the same period of 2023[45] - Equity in loss of equity method investee (Vision Bioenergy) for the six months ended December 31, 2024, was$ 1,571,775, compared to $1,354,012 in the same period of 2023[45] - Foreign currency loss for the six months ended December 31, 2024, was$ 8,739, compared to a gain of $(24,557) in the same period of 2023[45]