In This Story
Lendway Inc. (LDWY-5.87%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a net revenue of $6,628,000 for the three months ended September 30, 2024, primarily generated from its acquisition of Bloomia.
Gross profit for the quarter was reported at $1,440,000, representing 22% of net revenue. The gross margin percentage is typically higher in the first and second quarters due to increased sales during these periods.
Sales, general, and administrative expenses for the quarter were $2,791,000, reflecting an increase primarily due to the Bloomia acquisition.
The company reported an operating loss of $1,351,000 for the quarter. Interest expense for the quarter was $800,000, attributed to the debt incurred from the Bloomia acquisition.
Net loss from continuing operations was $1,458,000 for the quarter. Income from discontinued operations, net of tax, was $66,000, resulting from a reduction in the accrual for sales tax.
The company completed the acquisition of Bloomia on February 22, 2024, for a total consideration of $53,360,000, funded through a combination of debt and cash on hand.
Cash and cash equivalents decreased by $14,744,000 during the nine months ended September 30, 2024, primarily due to the acquisition of Bloomia.
The company entered into a Credit Agreement to finance the Bloomia acquisition, which includes an $18,000,000 term loan and a $6,000,000 revolving credit facility.
Lendway expects that cash from operations combined with available funds under its credit facilities will provide sufficient liquidity for its operations for at least the next 12 months.
The company has identified certain misstatements in its first and second quarter financial statements but concluded these were not material to the overall financial results.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Lendway Inc. quarterly 10-Q report dated November 19, 2024. To report an error, please email earnings@qz.com.