Farmmi(US:FAMI)2025-08-01 20:06Financial Performance - Revenues for the six months ended March 31, 2025, were $16.14 million, a decrease of 55.7% from $36.44 million in the same period of 2024[11]. - Gross profit for the six months ended March 31, 2025, was $814,574, down 62.0% from $2.15 million in the prior year[11]. - Net loss attributable to Farmmi, Inc. for the six months ended March 31, 2025, was $44,016, compared to a net income of $630,492 in the same period of 2024[11]. - The company reported a comprehensive loss of $4.70 million for the six months ended March 31, 2025, compared to a comprehensive income of $1.43 million in the same period of 2024[11]. - For the six months ended March 31, 2025, the net loss was $251,658, compared to a net income of $630,492 for the same period in 2024, indicating a significant decline in performance[18]. - Basic earnings per share for the six months ended March 31, 2025, was $(0.04), a decrease from $1.20 in 2024[61]. - Total revenue for the six months ended March 31, 2025, was $16,144,309, a decrease of 56% compared to $36,443,887 for the same period in 2024[142]. Assets and Liabilities - Total assets increased to $230.43 million as of March 31, 2025, compared to $186.73 million as of September 30, 2024, representing a growth of 23.4%[6]. - Total current liabilities increased significantly to $58.57 million as of March 31, 2025, from $10.51 million as of September 30, 2024[7]. - Total shareholders' equity decreased to $166.23 million as of March 31, 2025, from $170.02 million as of September 30, 2024, a decline of 2.3%[8]. - The company experienced a significant change in accounts receivable, with a net decrease of $8,418,637[18]. - As of March 31, 2025, accounts receivable amounted to $4,645,440, a significant decrease from $32,763,352 as of September 30, 2024[93]. - The allowance for doubtful accounts was $8,801 as of March 31, 2025, compared to approximately $302,914 as of September 30, 2024[93]. - Total liabilities of disposed entities were $1,349,339 as of March 31, 2025, compared to $529,144 in the previous period[151]. Cash Flow and Investments - Cash and cash equivalents rose to $890,336 as of March 31, 2025, compared to $486,522 as of September 30, 2024, marking an increase of 83.1%[6]. - Cash flows from operating activities provided $14,569,967, a substantial improvement compared to a cash outflow of $14,901,185 in the prior year[18]. - The total cash at the end of the period was $890,336, down from $1,124,449 at the end of the previous year[19]. - The company made a long-term investment purchase of $15,000,000 during the period[18]. - Long-term investments increased to $106,047,950 as of March 31, 2025, compared to $7,032,573 as of September 30, 2024[109]. - The company incurred an equity investment loss of $431,180 for the six months ended March 31, 2025[112]. - The company plans to acquire a 45% equity stake in Ewayforest Group Limited for a total purchase price of approximately $99,676,733, with payments structured over several months[111]. Expenses and Costs - The company experienced a significant increase in interest expense, which rose to $231,704 for the six months ended March 31, 2025, compared to $1.32 million in the same period of 2024[11]. - The company incurred interest expenses of $184,176, a decrease from $1,113,582 in the previous year[18]. - Total shipping and handling expenses for the six months ended March 31, 2025, were $47,352, up from $40,101 for the same period in 2024, indicating an increase of approximately 18.1%[71]. - The Company reported a depreciation expense of $8,863, up from $5,572 in the previous year[18]. - The Company reported a net loss of $163,632 for the six months ended September 30, 2025, compared to a net income of $60,683 in the prior year[152]. Revenue Sources - Revenue from Shiitake mushrooms was $6,668,963, down from $9,806,605 in the previous year, while Mu Er revenue decreased from $7,329,253 to $5,255,756[142]. - Revenue from logistic services was $3,407,535, a new revenue stream not present in the previous year[142]. - The PRC accounted for $12,736,774 of total revenue, significantly down from $36,443,887 in the prior year, while the United States contributed $3,407,535[142]. Agreements and Contracts - The company signed a framework cooperation agreement with Zhongjin Boda for the purchase of agricultural products, valid for two years, as of August 5, 2023[97]. - The company also signed a two-year agricultural product framework agreement with Ningbo Runcai on August 25, 2023, focusing on red dates and corn[98]. - An agreement was signed to divest 100% interest in Farmmi Food and Farmmi Supply Chain for a total cash consideration of RMB20,000 ($2,754)[26]. Shareholder Information - The weighted average number of ordinary shares increased to 1,077,719 for the six months ended March 31, 2025, compared to 527,569 in the same period of 2024[12]. - The Company consolidated its ordinary shares at a ratio of one-for-twelve, reducing the number of shares from 500,000,000 to 41,666,667[125]. - For the six months ended March 31, 2025, 1,202,189 ordinary shares were issued for the redemption of $338,009 of the note[126]. Tax and Regulatory Matters - The Company is subject to a value-added tax (VAT) rate of 9% or 13% based on the new Chinese tax law, which may impact revenue recognition[73]. - The Company had no disputes with PRC tax authorities during the reporting periods, and no tax penalties were incurred[73]. Risk Factors - The Company does not carry business interruption or product liability insurance, increasing potential risks for investors[81]. - The Company is currently evaluating the impact of new accounting standards issued by the FASB, which may affect future disclosures[85].