Mon, Aug 19, 10:02 AM (148 days ago)
For the quarter ending June 30, 2024, Lendway, Inc. reported a net revenue of $16,780,000, primarily from the acquisition of Bloomia, marking a significant increase from previous periods. However, the company incurred a net loss of $745,000, attributed to heightened sales, general, and administrative expenses totaling $4,095,000, largely due to acquisition integration costs. The gross profit margin was 23.7%, indicating effective cost management despite increased operational costs. Cash flow analysis revealed a net cash decrease of $14,356,000, driven by significant investing activities related to the Bloomia acquisition, totaling $34,643,000. Financing activities provided $15,268,000, predominantly from a new credit agreement. The company’s current liabilities increased sharply, reflecting the financial leverage utilized for the acquisition, with total assets ballooning to $95,898,000. Looking ahead, Lendway has shifted its strategic focus solely on agricultural investments after discontinuing its non-bank lending operations, which may stabilize future financial performance. Overall, while the company faces uncertainties due to integration costs and increased debt, the acquisition of Bloomia positions it for potential growth in the agricultural sector.