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• Revenue: $9.5 million for Q3, compared to $9.4 million in Q3 of last year.

• America's Sorghum Revenue: $7.1 million, compared to $7 million last year.

• Double Team Revenue: $3.3 million, compared to $3.4 million last year.

• America's Forages Revenue: $1.5 million, compared to $1.2 million last year.

• Gross Margin: 37.7% for Q3, compared to 24.6% in last year's Q3.

• Operating Expenses: $4.3 million for Q3, compared to $5.5 million last year.

• Adjusted Operating Expenses: $3.5 million for Q3, compared to $4.7 million last year.

• Adjusted EBITDA: Positive $244,000 for Q3, compared to $2.2 million in last year's Q3.

• Full Year Revenue Expectation: Revised to $29 to $31 million, down from $34.5 to $38 million previously.

• Adjusted EBITDA Expectation: Negative $8.5 to $7 million for the fiscal year.

• Inventory Balance: $16.9 million, down from $22.6 million at the end of June last year.

• Warning! GuruFocus has detected 8 Warning Signs with SANW.

Release Date: May 15, 2025

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• S&W Seed Co (NASDAQ:SANW) reported its first positive adjusted EBITDA quarter in many years, indicating improved financial performance.

• The company successfully completed the VA process in Australia, releasing it from inter-company obligations and a $15 million Australian guarantee.

• S&W Seed Co (NASDAQ:SANW) implemented cost-saving initiatives, resulting in improved gross margins, reduced operating expenses, and better inventory management.

• The company is focused on high-margin products like the Double Team Sorghum Solutions and Prussic acid-free sorghum, which are gaining market share.

• S&W Seed Co (NASDAQ:SANW) secured a $25 million working capital facility, enhancing its financial flexibility and supporting its strategic initiatives.

Negative Points

• The imposition of tariffs on US sorghum exports to China has disrupted the market, leading to increased inventories and lower farm gate prices.

• The company revised its full-year revenue expectations downward due to the impact of tariffs, with a significant impact on high-margin product sales.

• S&W Seed Co (NASDAQ:SANW) expects a negative adjusted EBITDA for the fiscal year, reflecting the financial strain from the tariff situation.

• The uncertainty in the sorghum market due to tariffs has affected the company's strategic review process and potential interest from parties.

• The company faces challenges in expanding its international market presence due to the time required for trait integration and herbicide registration.