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S&W Seed Company (SANW-1.90%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports a decrease in revenue to $8,309,476 from $10,757,347 in the same quarter the previous year, primarily due to reduced sales in the Middle East and North Africa region and decreased sorghum sales in Mexico.
Cost of revenue was $6,973,108, representing 84% of sales, compared to 75% in the same quarter of the previous year, leading to a decrease in gross profit to $1,336,368.
Operating expenses totaled $5,569,946, a slight decrease from $5,717,194 in the previous year, with reductions in stock-based compensation and other operating expenses.
The company reported a net loss from continuing operations of $6,235,227, compared to $5,025,030 in the previous year, and a net loss from discontinued operations of $9,994,499, primarily due to the deconsolidation of S&W Australia.
Interest expense decreased to $761,879 from $948,728, attributed to lower outstanding loan amounts.
S&W Seed Company has been impacted by global geopolitical and macroeconomic events, including the import ban on alfalfa seed in Saudi Arabia and the ongoing military conflict between Russia and Ukraine.
The company is actively evaluating financing and strategic alternatives to address its liquidity needs and has amended its loan agreements with CIBC (CM-0.17%) and MFP Partners, L.P. to extend maturity dates and adjust loan commitments.
S&W Seed Company underwent a reverse stock split at a ratio of 1-for-19, effective October 17, 2024, to comply with Nasdaq (NDAQ+0.84%) listing requirements.
The company continues to focus on its strategic growth opportunities, including the development of new sorghum products and expanding its licensing model for private label customers.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the S&W Seed Company quarterly 10-Q report dated November 26, 2024. To report an error, please email earnings@qz.com.