Tue, May 14, 6:12 PM (73 days ago)
S&W Seed Company reported a net loss of $17.9 million for the nine months ended March 31, 2024, compared to a net income of $21.6 million in the same period of 2023, primarily due to a significant gain from the sale of a business interest in the prior year. Revenue decreased by 9.6% to $45.6 million, mainly due to lower sales in the Middle East and North Africa and Australia, partially offset by increased Double Team sorghum sales. Gross margin improved to 29.2% from 23.2%, driven by higher Double Team sorghum sales and cost savings in production. Operating expenses decreased by 7.1%, reflecting lower research and development costs and depreciation. The company faces liquidity challenges and is actively seeking additional financing and strategic alternatives. S&W Seed's debt facilities with CIBC and NAB contain covenants, and the company obtained waivers for non-compliance. Cash and cash equivalents were $171,009 as of March 31, 2024. The company anticipates that cash flow from operations, partnership payments, and existing debt facilities will meet its cash requirements over the next 12 months.