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S&W Seed Company (SANW+0.19%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a decrease in revenue to $5,076,898 from $8,261,308 in the same quarter the previous year, attributed to a reduction in Double Team grain sorghum sales and non-dormant alfalfa sales in the Middle East North Africa region.
Cost of revenue for the quarter was $3,194,376, representing 62.9% of sales, compared to 57.2% in the same quarter of the previous year. The increase in cost ratio is due to fewer sales of high-margin products.
The company reported a gross profit of $1,882,522 for the quarter, compared to $3,532,755 in the previous year, with the decline attributed to reduced sales.
Selling, general, and administrative expenses increased to $4,687,826 from $4,242,906, primarily due to transaction expenses related to the voluntary administration process of S&W Australia.
Net loss from continuing operations for the quarter was $6,253,571, compared to a net loss of $3,758,189 in the previous year. This increase in net loss is due to reduced revenue and increased operating expenses.
The filing also details the voluntary administration process of S&W Australia, resulting in a gain of $4,592,714 from the disposal of the subsidiary.
Cash provided by operating activities was $5,359,175, while cash used in investing and financing activities was $155,747 and $4,102,246, respectively.
S&W Seed Company had a working capital of $1,000,000 as of December 31, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also includes information on the new Credit and Security Agreement with ABL OPCO LLC, providing a senior secured credit facility of up to $25 million.
S&W Seed Company continues to focus on expanding sales of its proprietary and traited products, including the Double Team sorghum solution, and is exploring strategic alternatives to enhance shareholder value.
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 February 13, 2025. To report an error, please email earnings@qz.com.