Financial Performance - Total revenues for the six months ended June 30, 2022, were $154,992,000, an increase of 28.1% compared to $120,985,000 for the same period in 2021[6]. - Gross profit for the six months ended June 30, 2022, was $15,111,000, a decrease of 6.2% from $16,116,000 in the prior year[6]. - Operating income decreased significantly to $415,000 for the six months ended June 30, 2022, compared to $5,246,000 in the same period of 2021[6]. - Net loss attributable to the company for the six months ended June 30, 2022, was $8,245,000, compared to a net loss of $249,000 in the prior year[6]. - Revenues for the six months ended June 30, 2022, were $154,992,000, an increase from $120,985,000 for the same period in 2021, representing a growth of approximately 28%[160]. - Gross profit decreased to $15,111,000 for the six months ended June 30, 2022, down from $16,116,000 in 2021, reflecting a decline of about 6.2%[160]. - Operating income significantly dropped to $415,000 in 2022 from $5,246,000 in 2021, indicating a decrease of approximately 92%[160]. - Net loss attributable to the Company was $8,245,000 for the six months ended June 30, 2022, compared to a net loss of $249,000 in 2021, marking an increase in loss of over 3200%[160]. - Comprehensive loss attributable to the Company was $14,131,000 for the six months ended June 30, 2022, compared to $441,000 in 2021, indicating a substantial increase in overall losses[160]. Assets and Liabilities - Total current assets increased to $171,743,000 as of June 30, 2022, from $117,548,000 as of December 31, 2021, reflecting a growth of 46%[4]. - Total liabilities rose to $283,416,000 as of June 30, 2022, compared to $252,250,000 as of December 31, 2021, indicating an increase of 12.4%[4]. - Cash and cash equivalents increased to $20,696,000 as of June 30, 2022, from $14,393,000 as of December 31, 2021, representing a growth of 43.8%[4]. - The company reported an accumulated deficit of $91,795 thousand as of June 30, 2022, compared to $83,550 thousand at December 31, 2021[40]. - Total liabilities increased to $283,416 thousand as of June 30, 2022, compared to $252,250 thousand as of December 31, 2021, an increase of approximately 12%[158]. - The company reported accrued expenses totaling $26,742,000 as of June 30, 2022, compared to $13,062,000 as of December 31, 2021, indicating a significant increase of approximately 104.5%[71]. Cash Flow and Financing - Net cash used in operating activities was $50,133,000, compared to $44,390,000 in the prior year[10]. - Cash and restricted cash at the end of the period increased to $36,296,000 from $26,804,000 year-over-year[10]. - Proceeds from financing activities amounted to $77,292, compared to $65,924 in the previous year, reflecting a 17.8% increase[164]. - Interest paid during the period was $5,288, significantly higher than $1,795 in the same period last year[164]. - The company has unsecured revolving credit agreements for working capital of up to $57,000,000 with interest rates ranging from 5.6% to 7.5%[73]. - The company has asset-based credit facilities for wheat inventories of up to $127,000,000, with interest rates ranging from 1.4% to 7.5% per annum[74]. Business Combinations and Acquisitions - The Business Combination involved the formation of a new holding company, Globis NV Merger Corp., which was re-domiciled as Forafric Global PLC, and the acquisition of 100% equity interests in FAHL from Lighthouse Capital Limited[16]. - The Company completed several acquisitions, including Moulins Sanabil SA, MDS Burkina, and MDS Mali, consolidating their financial statements from the date control was established[189][190][191]. - The Company acquired rights to exploit and invest in lands in Ivory Coast, Benin, and Guinea Bissau for a total amount of $1.7 million as part of its growth strategy in Western Africa[93]. - The acquisition of Moulins Sanabil SA included a 60% stake in a wheat milling business for a total cash consideration of $331, with total consideration paid amounting to $7.1 million[94][95]. - The Company completed the acquisition of MDS Burkina with a total cash consideration of $6.153 million, leading to total consideration paid of $15.215 million[102][105]. - The Company acquired a 70.35% stake in MDS Mali for a total cash consideration of $9.579 million, with total consideration paid amounting to $23.339 million[112][113]. Market and Operational Insights - Forafric Global PLC is a market leader in the milling industry in Morocco, offering a complete range of flour and semolina products[12]. - The Moroccan government provides subsidies based on the production of affordable flour, which are recorded as a credit against related costs in the consolidated statement of operations[28]. - The company has not experienced any shortages in raw materials despite a 35% decrease in the quantity of soft wheat available on the international market due to the ongoing war in Ukraine[141]. - The company has committed to obtaining at least 80% of its annual wheat requirements from Millcorp until March 31, 2023, with purchases totaling $126,065 for the six months ended June 30, 2022, compared to $90,302 in 2021, marking an increase of approximately 40%[141]. Accounting and Compliance - The accounting treatment for the Business Combination is a "reverse recapitalization," where FAHL is treated as the accounting acquirer, and the financial statements reflect the continuation of FAHL's financials[17]. - The Company is classified as an emerging growth company (EGC) under the JOBS Act, allowing it to delay the adoption of new accounting standards until they apply to private companies[39]. - The Company follows ASC 820 for fair value measurements, utilizing observable inputs to assess the fair value of financial assets and liabilities[185]. - The Company incurred significant transaction costs related to its Business Combination, allocated between equity and liability instruments[184].
Forafric PLC(AFRI) - 2022 Q4 - Annual Report