Company: S&W Seed Company
Ticker: Nasdaq: SANW
Sector: Industrials
Investor Contact: Robert Blum

S&W Announces Fiscal 2020 Financial Results

Conference call to be conducted on Wednesday, September 23, 2020 at 11:00 am ET

LONGMONT, Colo., Sept. 23, 2020 — S&W Seed Company (Nasdaq: SANW) today announced financial results for fiscal year ended June 30, 2020.

“I am extremely pleased that we delivered Core Revenue growth of 58%, or 27% when excluding revenue from recently acquired Pasture Genetics, during fiscal 2020 which reflects the strategic transformation we have made in our operations to become a multi-crop agricultural company with enhanced focus in the United States and Australia,” commented Mark Wong, President & CEO of S&W Seed Company. “Further, we made important and purposeful investments in our sales and marketing function to become a more customer-centric organization. We also made investments in our research and development functions to enhance our trait development, such as our herbicide tolerance trait for sorghum, which we believe has the potential to revolutionize the sorghum market in the same way other weed control technologies have enhanced yields for crops such as corn, soybeans and cotton. We believe we are even better-positioned to continue driving strong Core Revenue growth in fiscal 2021.”

Financial Results

Core Revenue (which we define as total revenue, excluding product revenue attributable to Pioneer) for fiscal 2020 was $59.9 million, compared to Core Revenue for fiscal 2019 of $37.9 million, an increase of approximately 58%. Included in Core Revenue for fiscal 2020 was $11.8 million pertaining to a partial year contribution from Pasture Genetics, which the Company acquired on February 24, 2020. Excluding contributions from Pasture Genetics, Core Revenue growth was 27% for fiscal 2020 compared to the prior year.

As announced in May 2019, S&W entered into a termination agreement and an alfalfa license agreement with Pioneer Hi-Bred International, a subsidiary of Corteva Agriscience, to replace its prior alfalfa distribution agreement with Pioneer. Due to these agreements with Pioneer, S&W discloses Core Revenue as a metric to track performance of its business on a go-forward basis. Other than the contribution from Pasture Genetics, the increase in Core Revenue for fiscal 2020 can be attributed to an increase in alfalfa sales in Saudi Arabia and sorghum sales in the United States as well as growth in Pakistan, Europe and South Africa.

Total revenue for fiscal 2020 was $79.6 million, compared to total revenue for fiscal 2019 of $109.7 million. Prior year revenue was comprised of $75.5 million of total product revenue and $34.2 million in licensing revenue. For fiscal 2020, S&W recorded product revenue from Pioneer of $19.7 million under the new agreements, compared to $37.6 million in fiscal 2019. The Company also recorded $11.8 million in revenue during fiscal 2020 attributable to Pasture Genetics.

GAAP gross margins during fiscal 2020 were 18.8% compared to GAAP gross margins of 37.1% in fiscal 2019. Adjusted gross margins, excluding the impact of inventory write-downs (see Table A1) were 21.7% in fiscal 2020 compared to adjusted gross margins of 20.3% in fiscal 2019 (excluding the impact of inventory write-downs and licensing revenue from Pioneer). The increase in adjusted gross margins for the year ended June 30, 2020 is primarily driven by improved gross margins in alfalfa. Adjusted gross margins reflect inventory write-downs of $2.3 million and $8.8 million in fiscal 2020 and 2019 respectively, and the recognition of $34.2 million of license revenue in fiscal 2019 pertaining to Pioneer.

GAAP operating expenses for fiscal 2020 were $33.7 million, compared to $45.7 million in fiscal 2019. Adjusted operating expenses, excluding transaction costs and goodwill and intangible asset impairment charges (see Table A2), were $32.9 million in fiscal 2020, compared to $26.4 million in fiscal 2019. The increase in adjusted operating expenses for fiscal 2020 can be attributed to additional expenses from the newly acquired Pasture Genetics operations, and additional investments in S&W’s sales and marketing and research and development functions.

GAAP net loss for fiscal 2020 was $(19.7) million, or $(0.59) per basic and diluted share, compared to GAAP net loss of $(9.3) million, or $(0.31) per basic and diluted share, in fiscal 2019. The change in net loss is primarily attributable to the recognition of $34.2 million of license revenue in fiscal 2019 pertaining to Pioneer.

Adjusted non-GAAP net loss (see Table A3) for fiscal 2020 was $(18.4) million, or $(0.55) per basic and diluted share, excluding transaction costs, change in estimated value of assets held for sale, change in contingent consideration, loss on extinguishment of debt and interest expense – amortization of debt discount. Adjusted non-GAAP net income (see Table A3) for fiscal 2019, excluding transaction costs, goodwill impairment charges, intangible asset impairment charges, reduction of anticipated loss on sub-lease land, change in estimated value of assets held for sale, loss on extinguishment of debt and interest expense – amortization of debt discount, was $11.7 million, or $0.39 per basic and diluted share. The change in Adjusted non-GAAP net income (loss) is primarily attributable to the recognition of $34.2 million of license revenue in fiscal 2019 pertaining to Pioneer.

Adjusted EBITDA (see Table B) for fiscal 2020 was $(9.7) million, compared to adjusted EBITDA of $19.2 million in fiscal 2019. The change in Adjusted EBITDA is primarily attributable to the recognition of $34.2 million of license revenue in fiscal 2019 pertaining to Pioneer.

Fiscal 2021 Revenue Guidance

S&W expects Core Revenue for fiscal 2021 to be within a range of $73 to $79 million, representing an expected increase of 22% to 32% compared to fiscal 2020 Core Revenue of $59.9 million.

Including contributions from Pioneer, S&W continues to expect total revenue for fiscal 2021 to be within a range of $88 to $94 million.

Conference Call

S&W Seed Company has scheduled a conference call for Wednesday, September 23, 2020, at 11:00 am ET (8:00 am PT) to review these 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 #10147935. 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”), we have provided the following non-GAAP financial measures in this release and the accompanying tables: adjusted EBITDA; adjusted non-GAAP operating expenses; adjusted non-GAAP gross margins; adjusted non-GAAP net income (loss); and adjusted earnings (loss) per share. We use these non-GAAP financial measures internally to facilitate period-to-period comparisons and analysis of our operating performance and liquidity, and believe they are useful to investors as a supplement to GAAP measures in analyzing, trending and benchmarking the performance and value of our 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 historical non-GAAP financial measures to the most comparable financial measures under GAAP, see Tables A and B accompanying this release.

In order to calculate these non-GAAP financial measures, we make targeted adjustments to certain GAAP financial line items found on our Consolidated Statement of Operations, backing out non-recurring or unique items or items that we believe otherwise distort the underlying results and trends of the ongoing business. We have excluded the following items from one or more of our non-GAAP financial measures for the periods presented:

Selling, general and administrative expenses; operating expenses. We exclude from operating expenses a portion of SG&A expense related to non-recurring transaction expenses related to acquisitions. Such acquisition-related expenses include non-recurring transaction fees, due diligence costs and other direct costs associated with our acquisitions. These amounts are unrelated to our core performance during any particular period and are impacted by the timing of the acquisition. We exclude acquisition-related expenses from our SG&A expense and total operating expenses to provide investors a method to compare our operating results to prior periods and to peer companies, as such amounts can vary significantly based on the frequency of acquisitions and the magnitude of acquisition expenses.

Goodwill impairment charges. The Goodwill impairment charge relates to the full impairment of our goodwill and was a result of the termination of the distribution agreement with Pioneer. This amount was a non-cash charge and is 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.

Intangible asset impairment charges. The intangible asset impairment charge was a result of the termination of the distribution agreement with Pioneer. This amount was a non-cash charge and is 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.

Change in estimated value of assets held for sale. The change in estimated value of assets held for sale represents our estimated change in the value of certain properties held for sale. These amounts are non-cash 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.

Change in contingent consideration obligation. The change in contingent consideration obligation represents our estimated change in the value of contingent earn-out related to the February 2020 acquisition of Pasture Genetics. These amounts are non-cash gains, 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 extinguishment of debt. Loss on extinguishment of debt represents the unamortized debt issuance costs related to our terminated KeyBank credit agreement. These amounts are non-cash 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.

Reduction of anticipated loss on sub-lease land. The reduction of anticipated loss on sub-lease land represents a change in estimate of the reserve for the difference between our lease-obligations and our expected sub-lease income on certain land. We exclude this amount as it is a non-recurring income / charge and is unrelated to our core performance during any particular period, and therefore, we believe it is useful to exclude this amount 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 debt issuance costs are primarily related to our working capital lines of credit and term loans. 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 margins. We define adjusted gross margins as gross margins, adjusted to exclude the impact of inventory write-downs and licensing revenue from Pioneer. We believe that the use of adjusted gross margins is useful to investors and other users of our financial statements in evaluating our operating performance because it provides a method to compare our operating results to prior periods and to peer companies after making adjustments for items that are expected to be non-recurring.

Adjusted operating expenses. We define adjusted operating expenses as operating expenses, adjusted to exclude non-recurring transaction costs from SG&A. We believe that the use of adjusted operating expenses is useful to investors and other users of our financial statements in evaluating our operating performance because non-recurring transaction costs are unrelated to our core performance during any particular period and are impacted by the timing of our acquisitions. We believe this provides investors with a method to compare our operating results to prior periods and to peer companies, as such amounts can vary significantly based on the frequency of acquisitions and the magnitude of acquisition expenses.

Adjusted net loss and non-GAAP loss per share. We define non-GAAP net loss as net loss less non-recurring transaction charges, change in estimated value of assets held for sale, change in contingent consideration, loss on extinguishment of debt, reduction of anticipated loss on sub-lease land and interest expense – amortization of debt discount. However, in order to provide a complete picture of our recurring core business operating results, we also exclude from non-GAAP net 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 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. We define Adjusted EBITDA as GAAP net loss, adjusted to exclude non-recurring transaction costs, depreciation and amortization, non-cash stock-based compensation, foreign currency (gain) loss, change in estimated value of assets held for sale, change in contingent consideration, loss on extinguishment of debt, reduction of anticipated loss on sub-lease land, interest expense – amortization of debt discount, interest expense, and provision for income taxes. We believe that the use of adjusted EBITDA is useful to investors and other users of our 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 Longmont, Colorado. S&W’s vision is to be the world’s preferred proprietary seed company which supplies a range of forage and specialty crop products that supports the growing global demand for animal proteins and healthier consumer diets. S&W is a global leader in proprietary alfalfa and sorghum seeds, with significant research and development, production and distribution capabilities. S&W’s product portfolio also includes hybrid sunflower and wheat and the company 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: anticipated benefits of our trait development efforts; the results of our investments in research and development and sales and marketing; anticipated revenue growth in fiscal 2021 and revenue outlook for 2021; and statements regarding the advancement of our strategic plans. 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 future acquisitions may not yield the anticipated benefits; sales during the high-volume selling season may be lower than expected; the realignment of our organization across geographic lines and to benefit from a multi-crop portfolio may not meet our expectations; our strategic initiatives may not achieve the expected results; global pandemics and other health crises, such as COVID-19, may negatively impact our operations and financial results; and the risks associated with our ability to successfully optimize and commercialize our business. These and other risks are identified in our filings with the Securities and Exchange Commission, including, without limitation, our Annual Report on Form 10-K for the year ended June 30, 2019 and in other filings subsequently made by the Company 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

Robert Blum

S&W Seed Company

Lytham Partners, LLC

Phone: (720) 506-1164

Phone: (602) 889-9700

www.swseedco.com

sanw@lythampartners.com

sanw@lythampartners.com

S&W SEED COMPANY

CONSOLIDATED STATEMENTS OF OPERATIONS

(UNAUDITED)

Three Months Ended June 30,

Years Ended June 30,

2020

2019

2020

2019

Revenue

Product and other

$ 25,864,756

$ 12,629,779

$ 79,582,198

$ 75,507,078

Licensing

34,215,433

34,215,433

Total revenue

25,864,756

46,845,212

79,582,198

109,722,511

Cost of revenue

Product and other

22,620,497

21,071,558

64,647,936

69,014,490

Total cost of revenue

22,620,497

21,071,558

64,647,936

69,014,490

Gross profit

3,244,259

25,773,654

14,934,262

40,708,021

Operating expenses

Selling, general and administrative expenses

5,684,186

5,645,521

21,348,092

17,486,071

Research and development expenses

2,035,040

2,082,478

7,336,754

6,272,758

Depreciation and amortization

1,416,229

1,066,775

5,036,464

4,128,546

(Gain) loss on disposal of property, plant and equipment

(2,505)

7,798

(23,299)

(86,222)

Goodwill impairment

11,865,811

11,865,811

Intangible asset impairment charges

6,034,792

6,034,792

Total operating expenses

9,132,950

26,703,175

33,698,011

45,701,756

Loss from operations

(5,888,691)

(929,521)

(18,763,749)

(4,993,735)

Other (income) expense

Foreign currency loss (gain)

31,221

(45,829)

98,620

(99,467)

Reduction of anticipated loss on sub-lease land

(141,373)

Change in estimated value of assets held for sale

1,521,855

92,931

1,521,855

Change in contingent consideration

(302,139)

(302,139)

Government grant income

(1,958,600)

(1,958,600)

Loss on extinguishment of debt

140,638

Interest expense – amortization of debt discount

161,114

102,093

555,049

340,847

Interest expense

588,202

828,700

1,970,882

2,886,077

Loss before income taxes

(4,408,489)

(3,336,340)

(19,361,130)

(9,501,674)

Provision for income taxes

368,744

(70,869)

385,968

(148,747)

Net loss

$ (4,777,233)

$ (3,265,471)

$ (19,747,098)

$ (9,352,927)

Net loss attributed to noncontrolling interests

24,996

(47,256)

(72,774)

(47,685)

Net loss attributable to S&W Seed Company

$ (4,802,229)

$ (3,218,215)

$ (19,674,324)

$ (9,305,242)

Net loss attributable to S&W Seed Company per common share:

Basic

$ (0.14)

$ (0.10)

$ (0.59)

$ (0.31)

Diluted

$ (0.14)

$ (0.10)

$ (0.59)

$ (0.31)

Weighted average number of common shares outstanding:

Basic

33,423,894

33,278,218

33,348,263

30,102,158

Diluted

33,423,894

33,278,218

33,348,263

30,102,158

TABLE A1

S&W SEED COMPANY

ITEMIZED RECONCILIATION BETWEEN GROSS PROFIT AND NON-GAAP ADJUSTED GROSS PROFIT

(UNAUDITED)

Three Months Ended June 30,

Years Ended June 30,

2020

2019

2020

2019

Gross profit

$ 3,244,259

$ 25,773,654

$ 14,934,262

$ 40,708,021

License revenue

(34,215,433)

(34,215,433)

Inventory write-downs

868,673

8,822,103

2,347,824

8,822,103

Non-GAAP Adjusted Gross Profit

$ 4,112,932

$ 380,324

$ 17,282,086

$ 15,314,691

Non-GAAP Adjusted Gross Margin

15.9%

3.0%

21.7%

20.3%

TABLE A2

S&W SEED COMPANY

ITEMIZED RECONCILIATION BETWEEN OPERATING EXPENSES AND NON-GAAP ADJUSTED OPERATING EXPENSES

(UNAUDITED)

Three Months Ended June 30,

Years Ended June 30,

2020

2019

2020

2019

Operating expenses

$ 9,132,950

$ 26,703,175

$ 33,698,011

$ 45,701,756

Non-recurring transaction costs

(207,447)

(53,823)

(792,993)

(1,196,476)

Restructuring charges

(202,243)

(202,243)

Goodwill impairment charges

(11,865,811)

(11,865,811)

Intangible asset impairment charges

(6,034,792)

(6,034,792)

Non-GAAP Adjusted Operating Expenses

$ 8,925,503

$ 8,546,506

$ 32,905,018

$ 26,402,434

TABLE A3

S&W SEED COMPANY

ITEMIZED RECONCILIATION BETWEEN NET LOSS AND NON-GAAP ADJUSTED NET LOSS

(UNAUDITED)

Three Months Ended June 30,

Years Ended June 30,

2020

2019

2020

2019

Net Loss attributable to S&W Seed Company

$ (4,802,229)

$ (3,218,215)

$ (19,674,324)

$ (9,305,242)

Non-recurring transaction costs

207,447

53,823

792,993

1,196,476

Restructuring charges

202,243

202,243

Goodwill impairment charges

11,865,811

11,865,811

Intangible asset impairment charges

6,034,792

6,034,792

Reduction of anticipated loss on sub-lease land

(141,373)

Change in estimated value of assets held for sale

1,521,855

92,931

1,521,855

Change in contingent consideration

(302,139)

(302,139)

Loss on extinguishment of debt

140,638

Interest expense – amortization of debt discount

161,114

102,093

555,049

340,847

Non-GAAP Adjusted Net Loss

$ (4,735,807)

$ 16,562,402

$ (18,394,852)

$ 11,715,409

Non-GAAP Adjusted Net loss attributable to S&W Seed Company per common share:

Basic

$ (0.14)

$ 0.50

$ (0.55)

$ 0.39

Diluted

$ (0.14)

$ 0.50

$ (0.55)

$ 0.39

Weighted average number of common shares outstanding:

Basic

33,423,894

33,278,218

33,348,263

30,102,158

Diluted

33,423,894

33,278,218

33,348,263

30,102,158

TABLE B

S&W SEED COMPANY

ITEMIZED RECONCILIATION BETWEEN NET INCOME (LOSS) AND NON-GAAP ADJUSTED EBITDA

Three Months Ended

Years Ended

June 30,

June 30,

2020

2019

2020

2019

Net loss attributable to S&W Seed Company

$

(4,802,229)

$

(3,218,215)

$

(19,674,324)

$

(9,305,242)

Non-recurring transaction costs

207,447

53,823

792,993

1,196,476

Restructuring charges

202,243

202,243

Non-cash stock based compensation

373,760

160,976

1,167,951

694,610

Depreciation and amortization

1,416,229

1,066,775

5,036,464

4,128,546

Goodwill impairment charges

11,865,811

11,865,811

Intangible asset impairment charges

6,034,792

6,034,792

Foreign currency loss (gain)

31,221

(45,829)

98,620

(99,467)

Change in estimated value of assets held for sale

1,521,855

92,931

1,521,855

Change in contingent consideration

(302,139)

(302,139)

Loss on extinguishment of debt

140,638

Reduction of anticipated loss on sub-lease land

(141,373)

Interest expense – amortization of debt discount

161,114

102,093

555,049

340,847

Interest expense

588,202

828,700

1,970,882

2,886,077

Provision for income taxes

368,744

(70,869)

385,968

(148,747)

Non-GAAP Adjusted EBITDA

$

(1,957,651)

$

18,502,155

$

(9,734,967)

$

19,176,428

S&W SEED COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

ASSETS

June 30, 2020

June 30, 2019

CURRENT ASSETS

Cash and cash equivalents

$ 4,123,094

$ 3,431,802

Accounts receivable, net

19,023,098

13,380,464

Inventories, net

63,882,938

71,295,520

Prepaid expenses and other current assets

1,374,677

1,687,490

Assets held for sale

1,850,000

TOTAL CURRENT ASSETS

88,403,807

91,645,276

Property, plant and equipment, net

20,494,312

20,634,949

Intangibles, net

38,784,058

32,714,484

Goodwill

1,508,675

Other assets

6,764,781

1,369,560

TOTAL ASSETS

$ 155,955,633

$ 146,364,269

LIABILITIES AND STOCKHOLDERS’ EQUITY

CURRENT LIABILITIES

Accounts payable

$ 8,045,694

$ 6,930,829

Deferred revenue

6,171,904

9,054,549

Accrued expenses and other current liabilities

9,618,892

6,073,110

Lines of credit, net

26,983,264

10,755,548

Current portion of long-term debt, net

1,780,522

1,113,502

TOTAL CURRENT LIABILITIES

52,600,276

33,927,538

Long-term debt, net, less current portion

14,328,823

12,158,095

Contingent consideration obligation

4,263,503

Other non-current liabilities

3,427,054

280,424

TOTAL LIABILITIES

74,619,656

46,366,057

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;
33,457,861 issued and 33,432,861 outstanding at June 30, 2020;
33,303,218 issued and 33,278,218 outstanding at June 30, 2019;

33,458

33,303

Treasury stock, at cost, 25,000 shares

(134,196)

(134,196)

Additional paid-in capital

137,809,540

136,751,875

Accumulated deficit

(50,140,942)

(30,466,618)

Accumulated other comprehensive loss

(6,111,424)

(6,138,467)

Noncontrolling interests

(120,459)

(47,685)

TOTAL STOCKHOLDERS’ EQUITY

81,335,977

99,998,212

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY

$ 155,955,633

$ 146,364,269

S&W SEED COMPANY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)

Years Ended June 30,

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES

Net loss

$ (19,747,098)

$ (9,352,927)

Adjustments to reconcile net loss from operating activities to net cash (used in) provided by operating activities

Stock-based compensation

1,167,951

694,610

Change in allowance for doubtful accounts

(255,000)

996,461

Inventory write-down

2,344,800

8,822,103

Depreciation and amortization

5,036,464

4,128,546

Gain on disposal of property, plant and equipment

(23,299)

(86,222)

Goodwill impairment charges

11,865,811

Intangible asset impairment charges

6,034,792

Change in deferred tax provision

(270,083)

Change in foreign exchange contracts

(7,615)

(52,778)

Change in contingent consideration obligation

(302,139)

Change in estimated value of assets held for sale

92,931

1,521,855

Amortization of debt discount

555,049

340,847

Loss on debt extinguishment

140,638

Reduction of anticipated loss on sub-lease land

(141,373)

Changes in:

Accounts receivable

(1,819,625)

307,209

Inventories

11,083,296

(13,331,376)

Prepaid expenses and other current assets

412,526

(413,751)

Other non-current asset

(96,398)

203,132

Accounts payable

(2,879,541)

(830,718)

Deferred revenue

(2,882,359)

8,069,734

Accrued expenses and other current liabilities

2,125,503

3,114,523

Other non-current liabilities

(709,711)

(324,564)

Net cash (used in) provided by operating activities

(5,763,627)

21,295,831

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment

(1,972,231)

(735,316)

Proceeds from disposal of property, plant and equipment

34,410

567,492

Proceeds from sale of assets held for sale

1,757,069

Additions to internal use software

(43,000)

Acquisition of business, net of cash acquired

(7,472,618)

(26,354,951)

Acquisition of wheat assets

(2,633,000)

Net cash used in investing activities

(10,286,370)

(26,565,775)

CASH FLOWS FROM FINANCING ACTIVITIES

Net proceeds from sale of common stock

4,927,682

Net proceeds from sale of preferred stock

22,373,842

Taxes paid related to net share settlements of stock-based compensation awards

(110,132)

(39,314)

Borrowings and repayments on lines of credit, net

16,819,564

(21,289,159)

Borrowings of long-term debt

3,865,780

2,359,431

Debt issuance costs

(907,392)

(411,315)

Repayments of long-term debt

(2,618,121)

(3,290,242)

Net cash provided by financing activities

17,049,699

4,630,925

EFFECT OF EXCHANGE RATE CHANGES ON CASH

(308,410)

(250,073)

NET INCREASE (DECREASE) IN CASH & CASH EQUIVALENTS

691,292

(889,092)

CASH AND CASH EQUIVALENTS, beginning of the period

$ 3,431,802

$ 4,320,894

CASH AND CASH EQUIVALENTS, end of period

$ 4,123,094

$ 3,431,802

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/sw-announces-fiscal-2020-financial-results-301136177.html

SOURCE S&W Seed Company

Skip to content