[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

S&W SEED COMPANY
(Exact name of ~~Registrant~~registrant as ~~Specified~~specified in its ~~Charter)~~charter)

Nevada	27-1275784
(State or ~~Other Jurisdiction~~other jurisdiction of ~~Incorporation~~incorporation or ~~Organization)~~organization)	(I.R.S. Employer Identification ~~Number)~~No.)

106 K Street, Suite 300, Sacramento, CA	95814
(Address of principal executive offices)	(Zip Code)

~~106 K Street, Suite 300~~
~~Sacramento, California 95814~~
~~(Address of Principal Executive Offices, including Zip Code)~~

(559) 884-2535
(Registrant's ~~Telephone Number,~~telephone number, including ~~Area Code)~~area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file reports), and (2) has been subject to such filing requirements for the past 90 days. x YES ¨ NO

Indicate by check mark whether the registrant has submitted electronically ~~and posted on its corporate Web site, if any,~~ every Interactive Data File required to be submitted ~~and posted~~ pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit ~~and post~~ such files). YES x NO ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act.

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). YES ¨ NO x

As of May 9, ~~2018, 24,342,806~~2019, 33,278,219 shares of the registrant's common stock were outstanding.

This Quarterly Report on Form 10-Q contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), which are subject to the "safe harbor" created by those sections. These forward-looking statements include but are not limited to, any statements concerning projections of revenue, margins, expenses, tax provisions, earnings, cash flows and other financial items; any statements of the plans, strategies and objectives of management for future operations; any statements regarding our ability to raise capital in the future; any statements concerning expected development, performance or market acceptance relating to our products or services or our ability to expand our grower or customer bases or to diversify our product offerings; any statements regarding future economic conditions or performance; any statements of expectation or belief; any statements regarding our ability to retain key employees; and any statements of assumptions underlying any of the foregoing. These forward-looking statements are often identified by the use of words such as, but not limited to, "anticipate," "believe," "can," "continue," "could," "designed," "estimate," "expect," "intend," "may," "plan," "potential," "project," "seek," "should," "target," "will," "would," and similar expressions or variations intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. We have based these forward-looking statements on our current expectations about future events. Such forward-looking statements are subject to risks, uncertainties and other important factors that could cause actual results and the timing of certain events to differ materially from future results expressed or implied by such forward-looking statements. Risks, uncertainties and assumptions include the following:

You are urged to carefully review the disclosures made concerning risks and uncertainties that may affect our business or operating results, which include, among others, those listed in Part I, Item 1A. "Risk Factors" of our Annual Report on Form 10-K, for the fiscal year ended June 30, ~~2017,~~2018, as updated in Part II, Item 1A. "Risks Factors" of this Quarterly Report on Form 10-Q.

Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, level of activity, performance or achievements. Many factors discussed in this Quarterly Report on Form 10-Q, some of which are beyond our control, will be important in determining our future performance. Consequently, these statements are inherently uncertain and actual results may differ materially from those that might be anticipated from the forward-looking statements. In light of these and other uncertainties, you should not regard the inclusion of a forward-looking statement in this Quarterly Report on Form 10-Q as a representation by us that our plans and objectives will be achieved, and you should not place undue reliance on such forward-looking statements. All forward-looking statements included herein are expressly qualified in their entirety by the cautionary statements contained or referred to in this section. Furthermore, such forward-looking statements represent our views as of, and speak only as of, the date of this Quarterly Report on Form 10-Q, and such statements should not be read to indicate that we have conducted an exhaustive inquiry into, or review of, all potentially available relevant information. We undertake no obligation to publicly update any forward-looking statements, or to update the reasons why actual results could differ materially from those anticipated in any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

When used in this Quarterly Report on Form 10-Q, the terms "we," "us," "our," "the Company," "S&W" and "S&W Seed" refer to S&W Seed Company and its subsidiaries or, as the context may require, S&W Seed Company only. Our fiscal year ends on June 30, and accordingly, the terms "fiscal ~~2018,~~2019," "fiscal ~~2017"~~2018" and "fiscal ~~2016"~~2017" in this Quarterly Report on Form 10-Q refer to the respective fiscal year ended June 30, 2019, 2018 ~~2017~~ and ~~2016,~~2017, respectively, with corresponding meanings to any fiscal year reference beyond such dates. Trademarks, service marks and trade names of other companies appearing in this report are the property of their respective holders.

		March 31,		June 30,		March 31,		June 30,
		2018		2017		2019		2018
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	2,988,392	$	745,001	$	2,883,499	$	4,320,894
Accounts receivable, net		14,589,886		23,239,325		12,773,565		13,861,932
Unbilled accounts receivable, net						4,258,450		-
Inventories, net		63,654,908		31,489,945		87,317,928		60,419,276
Prepaid expenses and other current assets		1,511,024		1,249,921		1,458,569		1,279,794
Assets held for sale						1,930,400		-
TOTAL CURRENT ASSETS		82,744,210		56,724,192		110,622,411		79,881,896

Property, plant and equipment, net		13,496,922		13,581,576		22,366,775		13,180,132
Intangibles, net		33,311,053		34,939,079		39,227,992		33,109,780
Goodwill		10,292,265		10,292,265		11,865,811		10,292,265
Other assets		1,303,489		1,563,176		1,317,963		1,303,135
TOTAL ASSETS	$	141,147,939	$	117,100,288	$	185,400,952	$	137,767,208

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable	$	12,384,239	$	7,157,745	$	14,323,176	$	5,935,454
Accounts payable - related parties		120,081		331,694
Deferred revenue		107,897		880,326		420,739		212,393
Accrued expenses and other current liabilities		3,146,874		2,733,718		3,839,348		3,114,799
Lines of credit, net		25,128,689		27,399,784		49,828,458		32,630,559
Current portion of contingent consideration obligation		-		2,500,000
Current portion of long-term debt, net		509,297		10,309,664		1,082,458		503,012
TOTAL CURRENT LIABILITIES		41,397,077		51,312,931		69,494,179		42,396,217

Long-term debt, net, less current portion		13,038,521		1,096,155		12,245,863		12,977,087
Derivative warrant liabilities		-		2,836,600
Other non-current liabilities		553,498		632,947		491,209		651,780

TOTAL LIABILITIES		54,989,096		55,878,633		82,231,251		56,025,084

STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 5,000,000 shares authorized;
no shares issued and outstanding		-		-
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding						-		-
Common stock, $0.001 par value; 50,000,000 shares authorized;
24,362,579 issued and 24,337,579 outstanding at March 31, 2018;
18,004,681 issued and 17,979,681 outstanding at June 30, 2017;		24,362		18,004
33,297,346 issued and 33,272,346 outstanding at March 31, 2019;
24,367,906 issued and 24,342,906 outstanding at June 30, 2018;						33,297		24,367
Treasury stock, at cost, 25,000 shares		(134,196)		(134,196)		(134,196)		(134,196)
Additional paid-in capital		108,663,983		83,312,518		136,599,137		108,803,991
Accumulated deficit		(16,875,228)		(16,436,286)		(27,248,401)		(21,161,376)
Accumulated other comprehensive loss		(5,520,078)		(5,538,385)		(6,079,707)		(5,790,662)
Noncontrolling interests						(429)		-
TOTAL STOCKHOLDERS' EQUITY		86,158,843		61,221,655		103,169,701		81,742,124
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	141,147,939	$	117,100,288	$	185,400,952	$	137,767,208

		Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
		March 31,				March 31,				March 31,				March 31,
		2018		2017		2018		2017		2019		2018		2019		2018
Revenue	$	22,949,170	$	21,012,243	$	54,193,682	$	57,487,560	$	18,176,166	$	22,949,170	$	62,877,299	$	54,193,682

Cost of revenue		16,303,436		15,208,896		40,540,193		44,520,476		13,388,470		16,303,436		47,942,933		40,540,193

Gross profit		6,645,734		5,803,347		13,653,489		12,967,084		4,787,696		6,645,734		14,934,366		13,653,489

Operating expenses
Selling, general and administrative expenses		2,676,166		2,720,131		8,037,202		7,767,530		4,610,471		2,676,166		11,840,547		8,037,202
Research and development expenses		1,065,323		714,512		2,662,404		2,204,625		1,824,613		1,065,323		4,190,280		2,662,404
Depreciation and amortization		838,585		798,559		2,597,818		2,475,710		1,171,057		838,585		3,061,771		2,597,818
Disposal of property, plant and equipment loss (gain)		-		7,766		(81,776)		7,630		(97,483)		-		(94,020)		(81,776)
Impairment charges		-		319,001		-		319,001

Total operating expenses		4,580,074		4,559,969		13,215,648		12,774,496		7,508,658		4,580,074		18,998,578		13,215,648

Income from operations		2,065,660		1,243,378		437,841		192,588
Income (loss) from operations										(2,720,962)		2,065,660		(4,064,212)		437,841

Other expense
Foreign currency (gain) loss		(27,939)		2,125		(5,908)		(4,358)		4,793		(27,939)		(53,638)		(5,908)
Change in derivative warrant liabilities		-		(1,009,901)		(431,300)		(841,400)		-		-		-		(431,300)
Change in contingent consideration obligations		-		(86,688)		-		77,675
Loss on equity method investment		-		95,591		-		144,841
Reduction of anticipated loss on sub-lease land										(141,373)		-		(141,373)		-
Interest expense - amortization of debt discount		51,185		150,875		118,284		1,131,994		103,362		51,185		238,754		118,284
Interest expense		512,892		300,627		1,244,515		948,211		758,669		512,892		2,057,377		1,244,515

Income (loss) before income taxes		1,529,522		1,790,749		(487,750)		(1,264,375)		(3,446,413)		1,529,522		(6,165,332)		(487,750)
Provision (benefit) for income taxes		(248,931)		463,509		(48,808)		(533,414)
Net income (loss)	$	1,778,453	$	1,327,240	$	(438,942)	$	(730,961)
Provision for income taxes										(82,411)		(248,931)		(77,878)		(48,808)
Net income (loss) including noncontrolling interests									$	(3,364,002)	$	1,778,453	$	(6,087,454)	$	(438,942)

Net income (loss) per common share:
Net loss attributed to noncontrolling interest										(22,102)		-		(429)		-
Net income (loss) attributed to S&W Seed Company									$	(3,341,900)	$	1,778,453	$	(6,087,025)	$	(438,942)

Net income (loss) attributed to S&W Seed Company per common share:
Basic	$	0.07	$	0.07	$	(0.02)	$	(0.04)	$	(0.10)	$	0.07	$	(0.21)	$	(0.02)
Diluted	$	0.07	$	0.02	$	(0.02)	$	(0.09)	$	(0.10)	$	0.07	$	(0.21)	$	(0.02)

Weighted average number of common shares outstanding:
Basic		24,335,821		17,963,598		21,861,038		17,630,906		33,267,258		24,335,821		29,043,493		21,861,038
Diluted		24,353,082		17,979,177		21,861,038		17,718,243		33,267,258		24,353,082		29,043,493		21,861,038

		Three Months Ended				Nine Months Ended				Three Months Ended				Nine Months Ended
		March 31,				March 31,				March 31,				March 31,
		2018		2017		2018		2017		2019		2018		2019		2018

Net income (loss)	$	1,778,453	$	1,327,240	$	(438,942)	$	(730,961)	$	(3,364,002)	$	1,778,453	$	(6,087,454)	$	(438,942)

Foreign currency translation adjustment, net of income taxes		(97,123)		454,319		18,307		210,701		36,576		(97,123)		(289,045)		18,307

Comprehensive income (loss)	$	1,681,330	$	1,781,559	$	(420,635)	$	(520,260)		(3,327,426)		1,681,330		(6,376,499)		(420,635)

Comprehensive loss attributable to noncontrolling interests										(22,102)		-		(429)		-
Comprehensive income (loss) attributable to S&W Seed Company									$	(3,305,324)	$	1,681,330	$	(6,376,070)	$	(420,635)

	Common Stock			Treasury Stock				Additional Paid-In		Accumulated		Accumulated Other Comprehensive		Total Stockholders'															Accumulated
	Shares		Amount	Shares		Amount		Capital		Deficit		Loss		Equity											Additional				Other
															Preferred Stock			Common Stock			Treasury Stock				Paid-In		Accumulated		Comprehensive		Noncontrolling		Total
Balance, June 30, 2016	17,086,111	$	17,086	(25,000)	$	(134,196)	$	78,282,461	$	(4,614,244)	$	(5,789,663)	$	67,761,444
															Shares		Amount	Shares		Amount	Shares		Amount		Capital		Deficit		Loss		Interests		Equity
Stock-based compensation - options, restricted stock, and RSUs	-		-	-		-		885,456		-		-		885,456
Net issuance to settle RSUs	56,954		57	-		-		(107,552)		-		-		(107,495)
Issuance of common stock upon conversion of principal and
interest of convertible debentures	684,321		684	-		-		3,160,588		-		-		3,161,272
Exercise of stock options, net of withholding taxes	161,781		162	-		-		601,921		-		-		602,083
Other comprehensive income	-		-	-		-		-		-		210,701		210,701
Net loss	-		-	-		-		-		(730,961)		-		(730,961)
Balance, March 31, 2017	17,989,167	$	17,989	(25,000)	$	(134,196)	$	82,822,874	$	(5,345,205)	$	(5,578,962)	$	71,782,500

Balance, June 30, 2017	18,004,681	$	18,004	(25,000)	$	(134,196)	$	83,312,518	$	(16,436,286)	$	(5,538,385)	$	61,221,655
Balance, December 31, 2017															-	$	-	24,353,300	$	24,353	(25,000)	$	(134,196)	$	108,568,030	$	(18,653,681)	$	(5,422,955)	$	-	$	84,381,551

Stock-based compensation - options, restricted stock, and RSUs	-		-	-		-		600,231		-		-		600,231	-		-	-		-	-		-		149,198		-		-		-		149,198
Net issuance to settle RSUs	97,898		98	-		-		(107,145)		-		-		(107,047)	-		-	9,279		9	-		-		6,632		-		-		-		6,641
Proceeds from sale of common stock, net of fees and expenses	6,260,000		6,260	-		-		22,453,079		-		-		22,459,339	-		-	-		-	-		-		(59,877)		-		-		-		(59,877)
Reclassification of warrants upon expiration of repricing provisions	-		-	-		-		2,405,300		-		-		2,405,300
Other comprehensive loss															-		-	-		-	-		-		-		-		(97,123)		-		(97,123)
Net income															-		-	-		-	-		-		-		1,778,453		-		-		1,778,453
Balance, March 31, 2018															-	$	-	24,362,579	$	24,362	(25,000)	$	(134,196)	$	108,663,983	$	(16,875,228)	$	(5,520,078)	$	-	$	86,158,843

Balance, December 31, 2018															-	$	-	33,246,141	$	33,246	(25,000)	$	(134,196)	$	136,495,216	$	(23,906,501)	$	(6,116,283)	$	21,673	$	106,393,155

Stock-based compensation - options, restricted stock, and RSUs															-		-	-		-	-		-		156,175		-		-		-		156,175
Net issuance to settle RSUs															-		-	51,205		51	-		-		(5,634)		-		-		-		(5,583)
Proceeds from sale of common stock, net of fees and expenses															-		-	-		-	-		-		(46,620)		-		-		-		(46,620)
Other comprehensive income	-		-	-		-		-		-		18,307		18,307	-		-	-		-	-		-		-		-		36,576		-		36,576
Net loss	-		-	-		-		-		(438,942)		-		(438,942)	-		-	-		-	-		-		-		(3,341,900)		-		(22,102)		(3,364,002)
Balance, March 31, 2018	24,362,579	$	24,362	(25,000)	$	(134,196)	$	108,663,983	$	(16,875,228)	$	(5,520,078)	$	86,158,843
Balance, March 31, 2019															-	$	-	33,297,346	$	33,297	(25,000)	$	(134,196)	$	136,599,137	$	(27,248,401)	$	(6,079,707)	$	(429)	$	103,169,701

		Nine Months Ended				Nine Months Ended
		March 31,				March 31,
		2018		2017		2019		2018
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(438,942)	$	(730,961)	$	(6,087,454)	$	(438,942)
Adjustments to reconcile net loss from operating activities to net
cash used in operating activities
Adjustments to reconcile net loss from operating activities to net cash used in operating activities
Stock-based compensation		600,231		885,456		533,633		600,231
Bad debt expense		20,547		99,640
Change in allowance for doubtful accounts						336,583		20,547
Depreciation and amortization		2,597,818		2,475,710		3,061,771		2,597,818
(Gain) loss on disposal of property, plant and equipment		(81,776)		7,630
Impairment charges		-		319,001
Change in deferred tax asset		-		(448,447)
Gain on disposal of property, plant and equipment						(94,020)		(81,776)
Change in foreign exchange contracts		192,360		50,522		(53,650)		192,360
Change in derivative warrant liabilities		(431,300)		(841,400)		-		(431,300)
Change in contingent consideration obligation		-		77,675
Amortization of debt discount		118,284		1,131,994
Loss on equity method investment		-		144,841
Reduction of anticipated loss on sub-lease land						(141,373)		-
�� Amortization of debt discount						238,754		118,284
Changes in:
Accounts receivable		8,663,419		4,481,129		1,584,152		8,663,419
Unbilled accounts receivable						(4,258,450)		-
Inventories		(32,191,993)		(15,972,829)		(20,442,220)		(32,191,993)
Prepaid expenses and other current assets		(461,883)		(245,248)		(177,526)		(461,883)
Other non-current asset		259,683		-		(15,608)		259,683
Accounts payable		5,236,255		(7,323,842)		6,569,031		5,236,255
Accounts payable - related parties		(216,449)		(318,428)		-		(216,449)
Deferred revenue		(561,615)		60,298		(564,204)		(561,615)
Accrued expenses and other current liabilities		396,478		(770,337)		853,767		396,478
Other non-current liabilities		(79,096)		(67,915)		(112,424)		(79,096)
Net cash used in operating activities		(16,377,979)		(16,985,511)		(18,769,238)		(16,377,979)

CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment		(1,062,406)		(1,624,493)		(836,983)		(1,062,406)
Additions to internal use software						(43,000)		-
Proceeds from disposal of property, plant and equipment		46,218		6,000		423,762		46,218
Additions to internal use software		-		(118,121)
Acquisition of business, net of cash acquired						(26,354,951)		-
Net cash used in investing activities		(1,016,188)		(1,736,614)		(26,811,172)		(1,016,188)

CASH FLOWS FROM FINANCING ACTIVITIES
Net proceeds from sale of common stock		22,459,339		-		4,927,682		22,459,339
Net proceeds from exercise of common stock options		-		602,083
Net proceeds from sale of preferred stock						22,373,842		-
Taxes paid related to net share settlements of stock-based compensation awards		(107,047)		(107,495)		(31,081)		(107,047)
Borrowings and repayments on lines of credit, net		(2,371,486)		19,325,988		17,768,886		(2,371,486)
Repayment of contingent consideration obligation		(2,500,000)		-
Payment of contingent consideration obligation						-		(2,500,000)
Borrowings of long-term debt		12,836,896		89,717		2,776,973		12,836,896
Debt issuance costs		(257,964)		-		(411,315)		(257,964)
Repayments of long-term debt		(10,470,302)		(209,454)		(3,075,170)		(10,470,302)
Repayments of convertible debt		-		(4,721,551)
Net cash provided by financing activities		19,589,436		14,979,288		44,329,817		19,589,436

EFFECT OF EXCHANGE RATE CHANGES ON CASH		48,122		158,996		(186,802)		48,122

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		2,243,391		(3,583,841)
NET (DECREASE) INCREASE IN CASH & CASH EQUIVALENTS						(1,437,395)		2,243,391

CASH AND CASH EQUIVALENTS, beginning of the period		745,001		6,904,500	$	4,320,894	$	745,001

CASH AND CASH EQUIVALENTS, end of period	$	2,988,392	$	3,320,659	$	2,883,499	$	2,988,392

SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION

Cash paid (received) during the period for:
Cash paid during the period for:
Interest	$	1,121,977	$	1,039,100	$	1,989,637	$	1,121,977
Income taxes		(118,224)		194,886		16,280		(118,224)

S&W Seed Company, a Nevada corporation (the "Company"), began as S&W Seed Company, a general partnership, in 1980 and was originally in the business of breeding, growing, processing and selling alfalfa seed. We then incorporated a corporation with the same name in Delaware in October 2009, which is the successor entity to Seed Holding, LLC, having purchased a majority interest in the general partnership between June 2008 and December 2009. Following the Company's initial public offering in May 2010, the Company purchased the remaining general partnership interests and became the sole owner of the general partnership's original business. Seed Holding, LLC remains a consolidated subsidiary of the Company.

In December 2011, the Company reincorporated in Nevada as a result of a statutory short-form merger of the Delaware corporation into its wholly-owned subsidiary, S&W Seed Company, a Nevada corporation.

On April 1, 2013, the Company, together with its wholly-owned subsidiary, S&W Holdings Australia Pty Ltd, an Australia corporation (f/k/a S&W Seed Australia Pty Ltd "S&W Holdings"), consummated an acquisition of all of the issued and outstanding shares of Seed Genetics International Pty Ltd, an Australia corporation ("SGI"), from SGI's shareholders. In April 2018, SGI changed its name to S&W Seed Company Australia Pty Ltd ("S&W Australia").

On September 19, 2018, the Company and AGT Foods Africa Proprietary Limited (AGT) formed a venture based in South Africa named SeedVision Proprietary Limited (SeedVision). SeedVision will leverage AGT's African-based production and processing facilities to produce S&W's hybrid sunflower, grain sorghum, and forage sorghum to be sold by SeedVision in the African continent, Middle East countries, and Europe.

Since its establishment, the Company, including its predecessor entities, has been principally engaged in breeding, growing, processing and selling agricultural ~~seeds, primarily alfalfa seed.~~seeds. The Company owns seed cleaning and processing facilities, which are located in Five Points, California, Nampa, Idaho, Dumas, Texas, New Deal, Texas and Keith, South Australia. The Company's seed products are primarily grown under contract by farmers. The Company began its stevia initiative in fiscal year 2010 and is currently focused on breeding improved varieties of stevia and developing marketing and distribution programs for its stevia products.

The Company has also been actively engaged in expansion initiatives through a combination of organic growth and strategic acquisitions, including in December 31, 2014, when the Company purchased certain alfalfa research and production facilities and conventional (non-GMO) alfalfa germplasm assets and assumed certain related liabilities ~~("the Pioneer~~(the "Pioneer Acquisition") of Pioneer Hi-Bred International, Inc. ("DuPont Pioneer").

The Asset Purchase and Sale Agreement for the Pioneer Acquisition previously contemplated that, subject to the satisfaction of certain conditions, the Company would acquire certain GMO germplasm varieties and other related assets from DuPont Pioneer for a purchase price of $7.0 million. The conditions for this additional acquisition were not satisfied by the required date, and DuPont Pioneer has informed the Company that it does not intend to extend the deadline or complete the transaction at this point in time. As a result, the Company does not expect to close the acquisition of DuPont Pioneer's GMO germplasm varieties and related assets in the previously disclosed structure or pay the $7,000,000 purchase price.

The Company has a long-term distribution agreement with DuPont Pioneer regarding conventional ~~(non GMO)~~(non-GMO) varieties, the term of which extends into 2024. The Company's production ~~and research agreements~~agreement with DuPont Pioneer (relating to GMO-traited varieties) ~~terminated~~terminates on ~~February 28, 2018. As a result, DuPont Pioneer's minimum purchase commitments from the Company will be reduced by approximately $6 million annually, commencing with the Company's Fiscal Year~~May 31, 2019. ~~However, the Company expects that the DuPont Pioneer distribution agreement will continue to be a significant source of the Company's annual revenue through December 2024.~~

The Company is in discussions with DuPont Pioneer regarding the orderly transition of activities previously conducted by the Company under the production and research agreements, as well as the possibility of certain ongoing commercial relationships between the parties relating to GMO-traited varieties, among other things.9

In May 2016, the Company acquired the assets and business of SV Genetics, a private Australian company specializing in the breeding and licensing of proprietary hybrid sorghum and sunflower seed germplasm, which represented the Company's initial effort to diversify its product portfolio beyond alfalfa seed and stevia.

In October 2018, the Company acquired substantially all of the assets of Chromatin, Inc., a U.S.-based sorghum genetics and seed company, as part of the Company's efforts to expand its penetration into the hybrid sorghum market.

The Company's operations span the world's ~~alfalfa~~ seed production regions with operations in the San Joaquin and Imperial Valleys of California, Texas, five other U.S. states, Australia, and three provinces in Canada, and the Company sells its seed products in more than 30 countries around the globe.

The ~~Company maintains its accounting records on an accrual basis in accordance with accounting principles generally accepted in the United States of America ("GAAP").~~

~~The~~ consolidated financial statements include the accounts of S&W Seed ~~Holding, LLC~~Company and its ~~other wholly-owned subsidiaries, S&W Holdings, which owns 100% of S&W Australia, and Stevia California, LLC.~~subsidiaries. All ~~significant~~ intercompany ~~balances~~accounts and transactions have been ~~eliminated.~~eliminated in consolidation. The consolidated financial statements were prepared in accordance with U.S. GAAP and include the assets, liabilities, revenue and expenses of all wholly-owned subsidiaries and majority-owned subsidiaries over which the Company's exercises control. Outside stockholders' interests in subsidiaries are shown on the condensed consolidated financial statements as Noncontrolling interests.

The Company owns 50.1% of SeedVision, which is a variable interest entity as defined in ASC 810-10,Consolidation,because no substantive equity contributions have been made to it, and SeedVision is being funded through advances, as needed, from its investors.The Company has concluded that it is the primary beneficiary of SeedVision because it has the power, through a tie-breaking vote on the board of directors, to direct the sales and marketing activities of SeedVision, which are considered to be the activities that have the greatest impact on the future economic performance of SeedVision.

Because the Company is its primary beneficiary, SeedVision's financial results are included in these financial statements.

The Company has prepared the accompanying consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") for interim financial reporting. These consolidated financial statements are unaudited and, in the Company's opinion, include all adjustments, consisting of normal recurring adjustments and accruals, necessary for a fair presentation of the Company's consolidated balance sheets, statements of operations, comprehensive income (loss), cash flows and stockholders' equity for the periods presented. Operating results for the periods presented are not necessarily indicative of the results to be expected for the full year ending June 30, ~~2018.~~2019. Certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted in accordance with the rules and regulations of the SEC. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes included in the Company's Annual Report on Form 10-K for the year ended June 30, ~~2017,~~2018, as filed with the SEC.

The preparation of financial statements in conformity with GAAP requires management to make certain estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Estimates are adjusted to reflect actual experience when necessary. Significant estimates and assumptions affect many items in the financial statements. These include allowance for doubtful trade receivables, inventory valuation, revenue recognition, asset impairments, provisions for income taxes, grower accruals (an estimate of amounts payable to farmers who grow seed for the Company), contingent consideration obligations, derivative liabilities, contingencies and litigation. Significant estimates and assumptions are also used to establish the fair value and useful lives of depreciable tangible and certain intangible assets, goodwill as well as valuing stock-based compensation. Actual results may differ from those estimates and assumptions, and such results may affect income, financial position or cash flows.

The Company's revenue is principally derived from the sale of ~~alfalfa~~ seed, the market for which is highly competitive. ~~The Company depends on a core group of significant customers.~~ One customer accounted for ~~82%~~44% and ~~77%~~82% of its revenue for the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. One customer accounted for ~~68%~~59% and ~~59%~~68% of its revenue for the nine months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively.

One customer accounted for ~~38%~~18% of the Company's accounts receivable at March 31, ~~2018. Two customers~~2019. One customer accounted for ~~52%~~35% of the Company's accounts receivable at June 30, ~~2017.~~2018.

In addition, the Company sells a substantial portion of its products to international customers. Sales to international markets represented ~~16%~~27% and ~~20%~~16% of revenue during the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. Sales to international markets represented ~~29%~~25% and ~~36%~~29% of revenue during the nine months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. The net book value of fixed assets located outside the United States was ~~20% and 19%~~11% of total assets at March 31, ~~2018 and~~2019. The net book value of fixed assets located outside the United States was 20% of total assets at June 30, ~~2017, respectively.~~2018. Cash balances located outside of the United States may not be insured and totaled ~~$334,603~~$300,293 and ~~$192,879~~$369,803 at March 31, ~~2018~~2019 and June 30, ~~2017,~~2018, respectively.

The Company translates its foreign operations' assets and liabilities denominated in foreign currencies into U.S. dollars at the current rates of exchange as of the balance sheet date and income and expense items at the average exchange rate for the reporting period. Translation adjustments resulting from exchange rate fluctuations are recorded in the cumulative translation account, a component of accumulated other comprehensive ~~income.~~income (loss). Gains or losses from foreign currency transactions are included in the consolidated statement of operations.

The Company ~~derives its revenue primarily from sale~~adopted the provisions of ~~seed and other crops and milling services.~~ ASC Topic 606,Revenue from ~~seed and other crop sales is recognized when risk and title to the product is transferred to the customer.~~

~~The Company recognizes revenue from milling services according to the terms~~Contracts with Customers("Topic 606") as of ~~the sales agreements and when delivery has occurred, performance is complete and pricing is fixed or determinable at the time of sale.~~

~~Additional conditions~~July 1, 2018. See Note 3 for recognition of revenue for all sales include the requirements that the collection of sales proceeds must be reasonably assured based on historical experience and current market conditions, the sales price is fixed and determinable and that there must be no further ~~performance obligations under the sale.~~discussion.

The Company records purchasing and receiving costs, inspection costs and warehousing costs in cost of revenue. When the Company is required to pay for outward freight and/or the costs incurred to deliver products to its customers, the costs are included in cost of revenue.

For financial statement presentation purposes, the Company considers time deposits, certificates of deposit and all highly liquid investments with original maturities of three months or less to be cash and cash equivalents. At times, cash and cash equivalents balances exceed amounts insured by the Federal Deposit Insurance Corporation.

The Company provides an allowance for doubtful trade receivables equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer's trade accounts receivable. The allowance for doubtful trade receivables was ~~$526,495~~$1,035,525 and $584,202 at March 31, ~~2018~~2019 and June 30, ~~2017.~~2018, respectively.

Inventories are stated at the lower of cost or net realizable value, and an inventory reserve permanently reduces the cost basis of inventory. Inventories are valued as follows: Actual cost is used to value raw materials such as packaging materials, as well as goods in process. Costs for substantially all finished goods, which include the cost of carryover crops from the previous year, are valued at actual cost. Actual cost for finished goods includes plant conditioning and packaging costs, direct labor and raw materials and manufacturing overhead costs based on normal capacity. The Company records abnormal amounts of idle facility expense, freight, handling costs and wasted material (spoilage) as current period charges and allocates fixed production overhead to the costs of finished goods based on the normal capacity of the production facilities.

The Company's subsidiary, S&W Australia, does not fix the final price for seed payable to its growers until the completion of a given year's sales cycle pursuant to its standard contract production agreement. S&W Australia records an estimated unit price; accordingly, inventory, cost of revenue and gross profits are based upon management's best estimate of the final purchase price to growers.

Inventory is periodically reviewed to determine if it is marketable, obsolete or impaired. Inventory that is determined to be obsolete or impaired is written off to expense at the time the impairment is identified. ~~Because the~~Inventory quality is a function of germination ~~rate, and therefore the quality, of~~percentage. Our experience has shown that our alfalfa seed ~~improves over the first year of~~quality tends to be stable under proper storage conditions; therefore, we do not view inventory obsolescence for alfalfa seed ~~is not~~as a material concern. Hybrid crops (sorghum and sunflower) seed quality may be affected by warehouse storage pests such as insects and rodents. The Company maintains a strict pest control program to mitigate risk and maximize hybrid seed quality.

The Company sells its inventory to distributors, dealers and directly to growers.

		March 31,		June 30,		March 31,		June 30,
		2018		2017		2019		2018
Raw materials and supplies	$	477,770	$	266,551	$	725,195	$	344,620
Work in progress		9,780,874		5,603,825		10,719,340		2,775,398
Finished goods		53,396,264		25,619,569		75,873,393		57,299,258
	$	63,654,908	$	31,489,945	$	87,317,928	$	60,419,276

Property, plant and equipment is depreciated using the straight-line method over the estimated useful life of the asset - periods of ~~5-28~~5-35 years for buildings, 3-20 years for machinery and equipment, and ~~3-5~~2-5 years for vehicles.

Intangible assets acquired in business acquisitions are reported at their initial fair value less accumulated amortization. Intangible assets are amortized using the straight-line method over the estimated useful life of the asset. Periods of 10-30 years for technology/IP/germplasm, ~~10-20~~5-20 years for customer relationships and trade names and 3-20 for other intangible assets. The weighted average estimated useful lives are 26 years for technology/IP/germplasm, 1817 years for customer relationships and 2018 years for trade names and 19 years for other intangible assets.

Goodwill originated from acquisitions of Imperial Valley Seeds, Inc. ("IVS") and SGI in fiscal year 2013, the acquisition of the alfalfa business from DuPont Pioneer in fiscal year 2015 and the acquisition of assets of SV Genetics in fiscal year 2016. Goodwill is assessed at least annually, or when certain triggering events occur, for impairment using fair value measurement techniques. These events could include a significant change in the business climate, legal factors, a decline in operating performance, competition, sale or disposition of a significant portion of the business, or other factors. The Company first assesses qualitative factors to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount, including goodwill. If management concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, management ~~conducts~~then develops a ~~two-step quantitative goodwill impairment test. The first step~~detailed estimate of the ~~goodwill impairment test is used~~reporting unit's fair value. The Company uses

market capitalization and an estimate of a control premium, as well as a discounted cash flow analysis to ~~identify potential impairment by comparing~~estimate the fair value of its one reporting unit. Management then compares the fair value of a reporting unit with its carrying amount, including goodwill. ~~The Company uses market capitalization to estimate the fair value of its one reporting unit.~~ If the fair value of a reporting unit exceeds its carrying amount, goodwill of the reporting unit is considered not ~~impaired, and the second step of the impairment test is unnecessary.~~impaired. If the carrying amount of a reporting unit exceeds its fair value, the second step of the goodwill impairment test is performed to measure the amount of impairment loss, if any. The second step of the goodwill impairment test compares the implied fair value of the reporting unit's goodwill with the carrying amount of that goodwill. If the carrying amount of the reporting unit's goodwill exceeds the implied fair value of that goodwill, an impairment loss is recognized in an amount equal to that excess. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination. That is, the fair value of the reporting unit is allocated to all of the assets and liabilities of that unit (including any unrecognized intangible assets) as if the reporting unit had been acquired in a business combination and the fair value of the reporting unit was the purchase price paid to acquire the reporting unit. The Company performed a ~~quantitative~~qualitative assessment of goodwill at ~~June 30, 2017~~March 31, 2019 and determined that goodwill was not impaired.

Investee companies that are not consolidated, but over which the Company exercises significant influence, are accounted for under the equity method of accounting. Whether or not the Company exercises significant influence with respect to an investee depends on an evaluation of several factors including, among others, representation on the investee company's board of directors and ownership level, which is generally a 20% to 50% interest in the voting securities of the investee company. Under the equity method of accounting, an investee company's accounts are not reflected within the Company's consolidated balance sheets and statements of operations; however, the Company's share of the earnings or losses of the investee company is reflected in the caption ~~``Loss~~"Loss on equity method ~~investment''~~investment" in the consolidated statements of operations. The Company's carrying value in an equity method investee company is included in the Company's consolidated balance sheets. When the Company's carrying value in an equity method investee company is reduced to zero, no further losses are recorded in the Company's consolidated financial statements unless the Company guaranteed obligations of the investee company or has committed additional funding. When the investee company subsequently reports income, the Company will not record its share of such income until it equals the amount of its share of losses not previously recognized.

Investee companies not accounted for under the consolidation or the equity method of accounting are accounted for under the cost method of accounting. Under this method, the Company's share of the earnings or losses of such investee companies is not included in the consolidated balance sheet or statement of operations. However, impairment charges are recognized in the consolidated statement of operations. If circumstances suggest that the value of the investee company has subsequently recovered, such recovery is not recorded.

The Company is engaged in ongoing research and development ("R&D") of proprietary seed and stevia varieties. All R&D costs must be charged to expense as incurred. Accordingly, internal R&D costs are expensed as incurred. Third-party R&D costs are expensed when the contracted work has been performed or as milestone results have been achieved. The costs associated with equipment or facilities acquired or constructed for R&D activities that have alternative future uses are capitalized and depreciated on a straight-line basis over the estimated useful life of the asset.

Deferred tax assets and liabilities are determined based on differences between the financial statement and tax basis of assets and liabilities, as well as a consideration of net operating loss and credit carry forwards, using enacted tax rates in effect for the period in which the differences are expected to impact taxable income. A valuation allowance is established, when necessary, to reduce deferred tax assets to the amount that is more likely than not to be realized. The Company's effective tax rate for the three and nine months ended March 31, 2019 and 2018 has been ~~effected~~affected by the valuation allowance on the Company's deferred tax assets.

Basic net income (loss) per common share ("EPS"), is calculated by dividing net income (loss) by the weighted average number of common shares outstanding during the period.

Diluted EPS is calculated by adjusting both the numerator (net income (loss)) and the denominator (weighted-average number of shares outstanding) for the dilutive effects of potentially dilutive securities, including convertible preferred stock, options, restricted stock awards, ~~convertible debt~~ and common stock warrants.

The calculation of Basic and Diluted EPS is shown in the table below. Classes of securities identified in the table with no adjustments in the calculation of Diluted EPS were determined to be antidilutive for the applicable periods.

		Three Months Ended				Nine Months Ended
		March 31,				March 31,
		2019		2018		2019		2018

Numerator:
Net income (loss) attributed to S&W Seed Company	$	(3,341,900)	$	1,778,453	$	(6,087,025)	$	(438,942)

Numerator for basis EPS		(3,341,900)		1,778,453		(6,087,025)		(438,942)

Effect of dilutive securities:
Warrants		-		-		-		-
		-		-		-		-

Numerator for diluted EPS	$	(3,341,900)	$	1,778,453	$	(6,087,025)	$	(438,942)

Denominator:
Denominator for basic EPS -
weighted-average shares		33,267,258		24,335,821		29,043,493		21,861,038

Effect of dilutive securities:
Employee stock options		-		-		-		-
Employee restricted stock units		-		17,261		-		-
Warrants		-		-		-		-
Dilutive potential common shares		-		17,261		-		-
Denominator for diluted EPS -
adjusted weighted average shares
and assumed conversions		33,267,258		24,335,821		29,043,493		21,861,038


Basic EPS	$	(0.10)	$	0.07	$	(0.21)	$	(0.02)
Diluted EPS	$	(0.10)	$	0.07	$	(0.21)	$	(0.02)

The Company evaluates its long-lived assets for impairment annually or more often if events and circumstances warrant. Events relating to recoverability may include significant unfavorable changes in business conditions, recurring losses or a forecasted inability to achieve break-even operating results over an extended period. The Company evaluates the recoverability of long-lived assets based upon forecasted undiscounted cash flows. Should impairment in value be indicated, the carrying value of long-lived assets will be adjusted, based on estimates of future discounted cash flows resulting from the use and ultimate disposition of the asset.

The Company's subsidiary, S&W Australia, is exposed to foreign currency exchange rate fluctuations in the normal course of its business, which the Company at times manages through the use of foreign currency forward contracts.

The Company has entered into certain derivative financial instruments (specifically foreign currency forward contracts), and accounts for these instruments in accordance with ASC Topic 815, "Derivatives and Hedging", which establishes accounting and reporting standards requiring that derivative instruments be recorded on the balance sheet as either an asset or liability measured at fair value. The Company's foreign currency contracts are not designated as hedging instruments under ASC 815; accordingly, changes in the fair value are recorded in current period earnings.

The Company reviews the terms of the common stock, preferred stock, warrants and convertible debt it issues to determine whether there are embedded derivative instruments, including embedded conversion options and redemption options, which are required to be bifurcated and accounted for separately as derivative financial instruments.

The Company discloses assets and liabilities that are recognized and measured at fair value, presented in a three-tier fair value hierarchy, as follows:

The assets acquired and liabilities assumed in the Chromatin acquisition were valued at fair value on a non-recurring basis as of October 25, 2018. No assets or liabilities were valued at fair value on a non-recurring basis as of March 31, ~~2018~~2019 or June 30, ~~2017.~~2018.

The carrying value of cash and cash equivalents, accounts payable, short-term and all long-term borrowings, as reflected in the consolidated balance sheets, approximate fair value because of the short-term maturity of these instruments or interest rates commensurate with market rates. There have been no changes in operations and/or credit characteristics since the date of issuance that could impact the relationship between interest rate and market rates. ~~The Company used a discounted cash flows approach to measure the fair value using Level 3 inputs.~~

Assets and liabilities that are recognized and measured at fair value on a recurring basis are categorized as follows:

During the nine months ended March 31, 2018, a change in derivative warrant liability of $431,300 was recorded in earnings. Upon expiration of the round-down pricing protection on December 31, 2017, the warrants were reclassified from derivative warrant liabilities to equity.17

During the nine months ended March 31, 2018, there was no change in the contingent consideration obligations. The DuPont contingent consideration was settled on December 1, 2017. Refer to Note 5 for further discussion.

~~In January 2017, the FASB issued~~The Company adopted Accounting Standards Update No. 2017-04,Simplifying the Test for Goodwill Impairment ("ASU 2017-04").effective July 1, 2018. This standard eliminates Step 2 from the goodwill impairment test. Instead, an entity should perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, not to exceed the total amount of goodwill allocated to the reporting unit. ~~ASU 2017-04 is effective for the Company beginning July 1, 2020. The adoption is not expected to have a material impact on the consolidated financial statements.~~

~~In August 2016, the FASB issued Accounting Standards Update No. 2016-15,~~ ~~Classification of Certain Cash Receipts and Cash Payments ("ASU 2016-15")~~. This standard addresses eight specific cash flow issues with the objective of reducing the existing diversity in practice. ASU 2016-15 is effective for the Company beginning July 1, 2018 and the Company is currently evaluating the impact that ASU 2016-15 will have on its consolidated financial statements.

~~In March 2016, the FASB issued Accounting Standards Update No. 2016-09,~~~~Improvements to Employee Share-Based Payment Accounting~~("ASU 2016-09"). This standard was issued as part of the FASB's Simplification Initiative that involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. Some of the areas for simplification apply only to nonpublic entities. For public business entities, ASU 2016-09 is effective for annual periods beginning after December 15, 2016 and interim periods within those annual periods. The method of adoption is dependent on the specific aspect of accounting addressed in this new guidance. Early adoption is permitted in any interim or annual period. The Company adopted ASU 2016-09 in the first quarter of the fiscal year ended June 30, 2018. The adoption did not have a material impact on the consolidated financial statements.

The Company adopted Topic 606 as of July 1, 2018. This ASC topic outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most previously existing revenue recognition guidance under U.S. GAAP. The core principle of Topic 606 is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services.

The Company adopted Topic 606 using the modified retrospective approach, in which the cumulative effect of applying the new standards to open contracts as of July 1, 2018 was to be recognized as a cumulative effect adjustment. The adoption did not result in a cumulative effect adjustment as of July 1, 2018.

The adoption of Topic 606 had a significant effect on the Company's accounting for its distribution and production agreements with Pioneer for the three and nine months ended March 31, 2019. There were no other changes in the Company's accounting as a result of the adoption of Topic 606.

The change in the accounting for the distribution and production agreements with Pioneer arises from the provisions of Topic 606 regarding the determination of whether a performance obligation is satisfied at a point in time or over time. Under those provisions, a performance obligation is considered to be satisfied over time if the company's performance creates an asset that the customer controls as the asset is created or enhanced; or the work to satisfy the performance obligation does not create an asset with alternative future use to the vendor and the customer has an obligation to pay for work completed. Under the agreements, Pioneer submits a demand plan to the Company in advance of the growing season specifying the amount of seed that it intends to order for the upcoming sales year. Once the demand plan is submitted, Pioneer cannot cancel or reduce the amount of seed that it is obligated to purchase under the agreements. In addition, the Company is not permitted to sell products produced for Pioneer under the agreements to other customers. Therefore, under Topic 606, the performance obligation is satisfied, and revenue is recognized, over time, as the Company takes delivery of, processes, and packages the seed.

The Company has concluded that cost is the best measure of progress under the Pioneer contracts because no other measure adequately reflects the value added to the product by each of the Company's major tasks - having the crop grown, processing, and packaging. As the Company contracts out the growing of seed to third parties, the vast majority of the Company's costs under these agreements are incurred, and therefore the vast majority of the revenue from such agreements is recognized, when the raw seed is purchased from the third-party contract growers. The rest of the costs are incurred, and therefore the rest of the revenue is recognized, as the Company processes and packages the product. Because revenue is recognized as costs are incurred, no inventory costs related to performance under the Pioneer contract are capitalized as inventory - instead, they are recognized as expenses as they are incurred.

Prior to the adoption of Topic 606, revenue related to the Pioneer agreement was recognized when seed was delivered to Pioneer. Costs incurred to purchase and process seed were capitalized as inventory until the product was delivered. As the Company adopted Topic 606 using the modified retrospective approach, figures for fiscal 2018 have not been adjusted and continue to reflect the prior accounting policies.

The change in accounting for the Pioneer contract did not result in a cumulative effect adjustment, because all seed produced for Pioneer in previous growing seasons had been delivered, and revenue recognized, prior to July 1, 2018, and no seed had been received prior to July 1, 2018 related to the current growing season. However, the change materially affected the amount of revenue and costs recognized during the three and nine months ended March 31, 2019. The effects of the new accounting for the Pioneer contracts on the Company's financial statements are shown below:

		March 31, 2019
						Balances Without
		As Reported		Adjustments		Adoption of ASC 606
ASSETS

CURRENT ASSETS
Cash and cash equivalents	$	2,883,499	$	-	$	2,883,499
Accounts receivable, net		12,773,565		-		12,773,565
Unbilled accounts receivable, net		4,258,450		(4,258,450)		-
Inventories, net		87,317,928		4,905,797		92,223,725
Prepaid expenses and other current assets		1,458,569		-		1,458,569
Assets held for sale		1,930,400		-		1,930,400
TOTAL CURRENT ASSETS		110,622,411		647,347		111,269,758

Property, plant and equipment, net		22,366,775		-		22,366,775
Intangibles, net		39,227,992		-		39,227,992
Goodwill		11,865,811		-		11,865,811
Other assets		1,317,963		-		1,317,963
TOTAL ASSETS	$	185,400,952	$	647,347	$	186,048,299

LIABILITIES AND STOCKHOLDERS' EQUITY

CURRENT LIABILITIES
Accounts payable	$	14,323,176	$	-	$	14,323,176
Deferred revenue		420,739		2,368,827		2,789,566
Accrued expenses and other current liabilities		3,839,348		(203,216)		3,636,132
Lines of credit, net		49,828,458		-		49,828,458
Current portion of long-term debt, net		1,082,458		-		1,082,458
TOTAL CURRENT LIABILITIES		69,494,179		2,165,611		71,659,790

Long-term debt, net, less current portion		12,245,863		-		12,245,863
Other non-current liabilities		491,209		(80,558)		410,651

TOTAL LIABILITIES		82,231,251		2,085,053		84,316,304

STOCKHOLDERS' EQUITY
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding		-		-		-
Common stock, $0.001 par value; 50,000,000 shares authorized;
33,297,346 issued and 33,272,346 outstanding at March 31, 2019;
24,367,906 issued and 24,342,906 outstanding at June 30, 2018;		33,297		-		33,297
Treasury stock, at cost, 25,000 shares		(134,196)		-		(134,196)
Additional paid-in capital		136,599,137		-		136,599,137
Accumulated deficit		(27,248,401)		(1,437,706)		(28,686,107)
Accumulated other comprehensive loss		(6,079,707)		-		(6,079,707)
Noncontrolling interest		(429)		-		(429)
TOTAL STOCKHOLDERS' EQUITY		103,169,701		(1,437,706)		101,731,995
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	185,400,952	$	647,347	$	186,048,299

Topic 606 also requires enhanced disclosures about the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. Those disclosures can also be found in Note 3.

In February 2016, the FASB issued Accounting Standards Update No. 2016-02:Leases("ASU 2016-02"). This standard amends various aspects of existing accounting guidance for leases, including the recognition of a right-of-use asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the statement of operations. This standard also introduces new disclosure requirements for leasing arrangements. For public business entities, ASU 2016-02 is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted. The new standard must be adopted using a modified retrospective approach, and provides for certain practical expedients. The Company is evaluating the impact of the adoption of ASU 2016-02 on its consolidated financial statements and related disclosures.

~~ASC Topic 606,~~~~Revenue from Contracts with Customers~~ ~~("Topic 606")~~,is mandatorily effective for the Company in the first quarter of its next fiscal year, which begins on July 1, 2018. This ASC topic outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most existing revenue recognition guidance under U.S. GAAP. The core principle of the guidance is that an entity should recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. Topic 606 also requires enhanced disclosures about the nature, amount, timing, and uncertainty of revenues and cash flows arising from contracts with customers. 20

The Company ~~has the option of adopting Topic 606 using either 1) a full retrospective approach, in which comparative periods presented would be adjusted to reflect~~adopted the provisions of Topic 606 ~~or 2) a modified retrospective approach, in which the cumulative effect of applying the new standards to open contracts~~ as of July 1, ~~2018 would be recognized as a cumulative effect adjustment.~~

2018. As the Company adopted Topic 606 using the modified retrospective approach, comparative figures have not been revised and are still reported under prior accounting standards.

The Company derives its revenue from 1) the sale of seed, 2) milling services and 3) research and development services.

¹Fiscal year 2019 information provided under ASC 605 to provide for comparison to fiscal year 2018.

Under the production and distribution agreements with Pioneer, the Company grows, processes, and delivers alfalfa seed for and to Pioneer. The Company has concluded that none of the individual activities performed under these contracts are distinct, as the customer is ~~evaluating~~contracting for processed and packaged product.

Pioneer submits a demand plan to the ~~impact~~Company in advance of the growing season specifying the amount of seed that it intends to order for the upcoming sales year. The Company is required to use commercially reasonable efforts to arrange for the requisite amount of seed to be grown and to process and package the product as provided for in the contract. Once the demand plan is submitted, Pioneer cannot cancel or reduce the amount of seed that it is obligated to purchase under the agreements. In addition, the Company is not permitted to sell products produced for Pioneer under the agreements to other customers. Therefore, as provided in Topic 606, the Company recognizes revenue from these agreements over time, as it incurs costs to fulfill its obligations.

To the extent the Company produces more product than Pioneer has specified in its demand plan, the Company must first offer such product to Pioneer. If Pioneer does not purchase such excess product, the Company may sell such product to other customers subject to certain limitations. Revenue from such excess product is recognized as other product revenue, as discussed below.

The agreements specify prices per finished unit which are adjusted each year, up or down, based on current market conditions, by a maximum of 4% per year. The prices for a given crop year are determined one year in advance of the beginning of the sales season.

The Company believes that cost is the best measure of progress under these contracts because no other measure adequately reflects the value added to the product by each of the Company's major tasks - having the crop grown, processing, and packaging. As the Company typically contracts out the growing of seed to third parties, the vast majority of the Company's costs under these agreements are incurred, and therefore the vast majority of the revenue from such agreements is recognized, when the raw seed is purchased from the third-party contract growers. The rest of the costs are incurred, and therefore the rest of the revenue is recognized, as the Company processes and packages the product. Prior to the adoption of Topic 606, ~~on its consolidated financial statements~~revenue from these agreements was recognized when risk and title to the product was transferred, which generally occurs upon shipment.

Revenue from other product sales is recognized at the point in time at which control of the product is transferred to the customer. Generally, this occurs upon shipment of the product. Pricing for such transactions is negotiated and determined at the time the contracts are signed. We have elected the practical expedient that allows us to account for shipping and handling activities as a fulfillment cost, and we accrue those costs when the related ~~disclosures.~~ revenue is recognized.

The Company has ~~identified~~certain contracts with customers that offer a ~~need~~limited right of return on certain branded products. The products must be in an unopened and undamaged state and must be resalable in the sole opinion of the Company to ~~potentially change~~qualify for refund. Returns are only accepted on product received by August 31^st of the ~~accounting~~current sales year. The Company uses the three-year historical returns percentage to estimate the refund liability and records a reduction of revenue in the period in which revenue is recognized.

Revenue from milling services, which are performed on the customer's product, is recognized as services are completed and the milled product is delivered to the customer.

Revenue from research and development services is recognized over time as the services are performed. R&D services are generally paid for in advance. In fiscal 2019, R&D revenue relates to a single contract in which the customer may decide annually whether to continue the arrangement. Revenue is recognized straight-line over time, as services are expected to be provided roughly evenly throughout the year.

Accounts receivable represent amounts that are payable to the Company by its customers subject only to the passage of time. Payment terms on invoices are generally 30 to 120 days. As the period between the transfer of goods and/or services to the customer and receipt of payment is less than one year, the Company does not separately account for a financing component in its contracts with customers.

Unbilled receivables represent contract assets that arise when the Company has partially performed under a contract, but is not yet able to invoice the customer until the Company has made additional progress. Unbilled receivables arise from the ~~Dupont~~distribution and production agreements with Pioneer ~~distribution agreement,~~for which ~~made up 68% of~~ the ~~Company's revenues~~Company recognizes revenue over time, as the Company bills for these arrangements upon product delivery, while revenue is recognized, as described above, as costs are incurred. Unbilled receivables may arise as much as three months before billing is expected to occur. Unbilled receivables are generally expected to be generated in the first and second fiscal quarters, and to be billed in the second, third and fourth fiscal quarters.

Losses on accounts receivable and unbilled receivables are recognized if and when it becomes probable that amounts will not be paid. These losses are reversed in subsequent periods if these amounts are paid. During the nine months ended March 31, ~~2018. If~~2019, the Company ~~determines that~~recognized bad debt expense of $336,583 associated with impaired accounts receivable.

Deferred revenue represents payments received from customers in advance of completion of the ~~accounting for this contract should change,~~Company's performance obligation.

Total estimated revenue remaining on uncompleted contracts is $86.1 million. This is comprised of $1.2 million remaining on the ~~result would be that revenue would~~Pioneer distribution and production agreements which is expected to be recognized ~~earlier than it currently is, because~~in fiscal 2019, and an estimated $84.9 million related to fiscal years 2020 - 2023 based on the ~~provisions~~minimum purchase requirements in the Pioneer distribution agreement.

On October 25, 2018, the Company completed the acquisition of ~~Topic 606 would require recognition during processing~~substantially all of the ~~seed, rather than upon delivery, which is~~assets of Chromatin, Inc. (together with certain of its subsidiaries and affiliates in receivership, "Chromatin"), as well as the ~~current accounting. However,~~assumption of certain contracts and limited specified liabilities of Chromatin, for an aggregate cash purchase price of approximately $26.5 million (the "Acquisition"), pursuant to the terms of its Asset Purchase Agreement, dated September 14, 2018, with Novo Advisors, solely in its capacity as the receiver for, and on behalf of, Chromatin ("Novo").

The acquisition expanded the Company's sorghum production capabilities, diversified its product offerings and provided access to new distribution channels.

The Acquisition has been accounted for as a business combination, and the Company valued and recorded all assets acquired and liabilities assumed at their estimated fair values on the date of the Acquisition.

The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date of October 25, 2018:

Management determined that one of the facilities acquired as part of the Chromatin acquisition would not be operated and is ~~still considering whether such~~being held for sale. The components of that facility are:

Management expects the sale to be completed within 12 months and plans to pay down a ~~change~~portion of the Company's short-term debt with the proceeds, accordingly, these held for sale assets are presented as current assets.

~~Although~~$947,015, with the ~~evaluation~~gross contractual amount totaling $2,164,476, less $1,217,461 expected to be uncollectible. The current liabilities assumed relate to inventory acquired in the acquisition as well as customer deposits. The excess of the purchase price over the fair value of the net assets acquired, amounting to $1,573,546, was recorded as goodwill on the consolidated balance sheet. The primary item that generated goodwill was the premium paid by the Company for the ability to control the acquired business, technology, and the distribution channels. Goodwill is not ~~yet complete,~~amortized for financial reporting purposes, but is amortized for tax purposes.

Management assigned fair values to the identifiable intangible assets through a combination of the relief from royalty method, the multi-period excess earnings method, and the replacement cost method. In-process research and development costs are being accounted for as an indefinite lived intangible asset subject to impairment testing until completion or abandonment of research and development efforts associated with the in-process projects. Upon successful completion of each project, the Company ~~has preliminarily concluded~~will make a determination about the then remaining useful life of the intangible asset and begin amortization.

The Company incurred acquisitions costs of $147,337 and $1,142,653 during the three and nine months ended March 31, 2019 that have been recorded in selling, general and administrative expenses on the ~~new standards will not result~~consolidated statement of operations. The results of the Chromatin acquisition are included in ~~changes to its~~our consolidated financial statements from the date of acquisition through March 31, 2019. The revenue ~~recognition policies~~and net loss (including transaction costs) of Chromatin operations included in our consolidated statements of operations were $6.7 million and $0.9 million, for the ~~rest~~period from October 25, 2018 through March 31, 2019.

The following unaudited pro forma financial information presents results as if the Acquisition occurred on July 1, 2017.

For purposes of ~~its customer contracts. If~~ the ~~Company concludes that~~pro forma disclosures above, the ~~accounting~~primary adjustments for the ~~Pioneer contract will be different under Topic 606, it will likely adopt~~nine months ended March 31, 2019 include: (i) the ~~new standard using~~elimination of acquisition charges of $1,142,653; (ii) amortization of acquired intangibles of $132,222; and (iii) depreciation of acquired property, plant and equipment of $358,273.

For purposes of the ~~full retrospective approach. If~~pro forma disclosures above, the ~~Company concludes that the accounting~~primary adjustments for the ~~Pioneer contract will not be affected, it is likely that the effects~~nine months ended March 31, 2018 include: (i) amortization of ~~adopting Topic 606 will be immaterial.~~ acquired intangibles of $297,500; and (ii) depreciation of acquired property, plant and equipment of $806,085.

The following table summarizes the activity of goodwill for the nine months ended March 31, ~~2018~~2019 and the year ended June 30, ~~2017,~~2018, respectively.

		Balance at						Balance at		Balance at						Balance at
		July 1, 2017		Additions		Amortization		March 31, 2018		July 1, 2018		Additions		Amortization		March 31, 2019
Trade name	$	1,244,306	$	-	$	(63,360)	$	1,180,946	$	1,159,826	$	150,000	$	(75,860)	$	1,233,966
Customer relationships		1,258,163		-		(75,906)		1,182,257		1,156,955		-		(75,906)		1,081,049
Non-compete		102,035		-		(37,815)		64,220		62,720		-		(25,662)		37,058
GI customer list		78,803		-		(5,373)		73,430		71,639		-		(5,373)		66,266
Supply agreement		1,153,415		-		(56,724)		1,096,691		1,077,783		-		(56,724)		1,021,059
Distribution agreement		6,728,753		-		(288,375)		6,440,378		6,344,253		-		(288,375)		6,055,878
Production agreement		111,670		-		(111,670)		-
Grower relationships		1,858,616		-		(79,056)		1,779,560		1,753,208		-		(79,056)		1,674,152
Intellectual property		21,725,539		-		(858,915)		20,866,624		20,873,393		7,200,000		(944,222)		27,129,171
In process research and development										-		380,000		(52,778)		327,222
Internal use software		677,779		-		(50,832)		626,947		610,003		43,000		(50,832)		602,171
	$	34,939,079	$	-	$	(1,628,026)	$	33,311,053	$	33,109,780	$	7,773,000	$	(1,654,788)	$	39,227,992

		Balance at						Balance at		Balance at						Balance at
		July 1, 2016		Additions		Amortization		June 30, 2017		July 1, 2017		Additions		Amortization		June 30, 2018
Trade name	$	1,328,786	$	-	$	(84,480)	$	1,244,306	$	1,244,306	$	-	$	(84,480)	$	1,159,826
Customer relationships		1,359,371		-		(101,208)		1,258,163		1,258,163		-		(101,208)		1,156,955
Non-compete		198,999		-		(96,964)		102,035		102,035		-		(39,315)		62,720
GI customer list		85,967		-		(7,164)		78,803		78,803		-		(7,164)		71,639
Supply agreement		1,229,047		-		(75,632)		1,153,415		1,153,415		-		(75,632)		1,077,783
Distribution agreement		7,113,253		-		(384,500)		6,728,753		6,728,753		-		(384,500)		6,344,253
Production agreement		335,002		-		(223,332)		111,670		111,670		-		(111,670)		-
Grower relationships		1,964,024		-		(105,408)		1,858,616		1,858,616		-��		(105,408)		1,753,208
Intellectual property		22,870,760		-		(1,145,221)		21,725,539		21,725,539		295,034		(1,147,180)		20,873,393
Internal use software		521,593		156,186		-		677,779		677,779		-		(67,776)		610,003
	$	37,006,802	$	156,186	$	(2,223,909)	$	34,939,079	$	34,939,079	$	295,034	$	(2,124,333)	$	33,109,780

Amortization expense totaled ~~$499,634~~$595,203 and ~~$555,977~~$499,634 for the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. Amortization expense totaled ~~$1,628,026~~$1,654,788 and ~~$1,667,932~~$1,628,026 for the nine months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. Estimated aggregate remaining amortization is as follows:

		March 31,		June 30,		March 31,		June 30,
		2018		2017		2019		2018

Land and improvements	$	2,083,687	$	2,223,674	$	2,534,021	$	2,068,742
Buildings and improvements		8,930,265		6,401,277		11,308,562		8,888,196
Machinery and equipment		5,718,765		5,435,542		12,489,581		5,731,293
Vehicles		1,159,636		1,005,455		1,895,083		1,130,276
Construction in progress		143,506		2,196,513		353,144		220,089
Total property, plant and equipment		18,035,859		17,262,461		28,580,391		18,038,596

Less: accumulated depreciation		(4,538,937)		(3,680,885)		(6,213,616)		(4,858,464)

Property, plant and equipment, net	$	13,496,922	$	13,581,576	$	22,366,775	$	13,180,132

Depreciation expense totaled ~~$338,951~~$575,854 and ~~$242,582~~$338,951 for the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. Depreciation expense totaled ~~$969,792~~$1,406,983 and ~~$807,778~~$969,792 for the nine months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively.

Total debt outstanding ~~excluding convertible debt addressed in Note 6, are~~is presented on the consolidated balance sheet as follows:

		March 31,		June 30,		March 31,		June 30,
		2018		2017		2019		2018
Working capital lines of credit
KeyBank	$	19,434,357	$	18,695,896	$	42,957,578	$	25,050,464
National Australia Bank Limited		5,838,320		8,703,888		7,287,592		7,697,040
Debt issuance costs		(143,988)		-		(416,712)		(116,945)
Total working capital lines of credit, net	$	25,128,689	$	27,399,784	$	49,828,458	$	32,630,559

Current portion of long-term debt
Capital lease	$	28,737	$	26,648
Capital leases					$	527,907	$	27,241
Keith facility (building loan) - National Australia Bank Limited		3,841		-		78,056		3,701
Keith facility (machinery & equipment loans) - National Australia Bank Limited		203,232		183,016		216,364		198,251
Unsecured subordinate promissory note		100,000		100,000		100,000		100,000
Promissory note - DuPont Pioneer		-		10,000,000
Secured real estate note - Conterra		229,789		-		247,942		229,789
Debt issuance costs		(77,272)		-
Secured equipment note - Conterra		37,824		-		-		37,824
Debt issuance costs		(16,854)		-		(87,811)		(93,794)
Total current portion, net		509,297		10,309,664		1,082,458		503,012

Long-term debt, less current portion
Capital lease		-		26,648
Capital leases						1,761,683		-
Keith facility (building loan) - National Australia Bank Limited		437,874		499,524		255,456		421,857
Keith facility (machinery & equipment loans) - National Australia Bank Limited		500,556		569,983		367,762		431,754
Secured real estate note - Conterra		10,170,211		-		9,922,269		10,170,211
Debt issuance costs		(119,765)		-
Secured equipment note - Conterra		2,062,176		-		-		2,062,176
Debt issuance costs		(12,531)		-		(61,307)		(108,911)
Total long-term portion, net		13,038,521		1,096,155		12,245,863		12,977,087
Total debt, net	$	13,547,818	$	11,405,819	$	13,328,321	$	13,480,099

On September 22, 2015, the Company entered into a credit and security agreement (the "KeyBank Credit Facility") with KeyBank. Key provisions of the KeyBank Credit Facility, as amended, include:

On December 31, 2014, the Company issued a three-year secured promissory note to DuPont Pioneer in the initial principal amount of $10,000,000 (the "Pioneer Note"), with a maturity date of December 31, 2017. The Pioneer Note accrued interest at 3% per annum. Interest was payable in three annual installments, in arrears, commencing on December 31, 2015. On December 31, 2014, the Company also issued contingent consideration to DuPont Pioneer which required the Company to increase the principal amount of the Pioneer Note by up to an additional $5,000,000 if the Company met certain performance metrics during the three-year period following December 31, 2014. The earn out payment to DuPont Pioneer was finalized in October 2017 and this amount of $2,500,000 was added to the Pioneer Note in October 2017. On December 1, 2017, the Company repaid the Pioneer Note. The repayment amount included the $2.5 million earn-out payment related to the Pioneer Acquisition that was added to the principal amount of the Pioneer Note in October 2017.

On November 30, 2017, the Company entered into a secured note financing transaction (the "Loan Transaction") with Conterra Agricultural Capital, LLC ("Conterra") for $12.5 million in gross proceeds. Pursuant to the Loan Transaction, the Company issued two secured promissory notes (the "Notes") to Conterra as follows:

~~The Notes~~On August 15, 2018, the Company completed a sale and related documents include customary representations and warranties in addition to customary affirmative and negative covenants (including financial covenants), and customary events of default that permit Conterra to accelerateleaseback transaction with American AgCredit involving certain equipment located at the Company's ~~obligations under~~Five Points, California and Nampa, Idaho production facilities. Due to its terms, the ~~Notes, including,~~sale and leaseback transaction is required to be accounted for as a financing arrangement. Accordingly, the proceeds received from American AgCredit were accounted for as proceeds from a debt financing. Under the terms of the transaction:

S&W Australia finances the purchase of most of its seed inventory from growers pursuant to a seasonal credit ~~facility~~facilities with National Australia Bank Ltd ("NAB"). The current ~~facility, referred to as the 2016~~facilities (the "2016 NAB ~~Facilities, was~~Facilities") were amended as of April 13, 2018 and ~~expires~~expire on March ~~31,~~30, 2020. As of March 31, ~~2018,~~2019, AUD ~~$7,600,000~~$10,270,000 (USD ~~$5,838,320)~~$7,287,592) was outstanding under the 2016 NAB Facilities.

The 2016 NAB Facilities, as currently in effect, ~~comprises~~comprise two distinct facility lines: (i) an overdraft facility (the "Overdraft Facility"), having a credit limit of AUD $1,000,000 (USD ~~$768,200~~$709,600 at March 31, ~~2018)~~2019) and a borrowing base facility (the "Borrowing Base Facility"), having a credit limit of AUD $12,000,000 (USD ~~$9,218,400~~$8,515,200 at March 31, ~~2018)~~2019).

The Borrowing Base Facility permits S&W Australia to borrow funds for periods of up to 180 days, at S&W Australia's discretion, provided that the term is consistent with its trading terms. Interest for each drawdown is set at the time of the drawdown as follows: (i) for Australian dollar drawings, based on the Australian Trade Refinance Rate plus 1.5% per annum and (ii) for foreign currency drawings, based on the British Bankers' Association Interest Settlement Rate for the relevant foreign currency for the relevant period, or if such rate is not available, the rate reasonably determined by NAB to be the appropriate equivalent rate, plus 1.5% per annum. As of March 31, ~~2018,~~2019, the Borrowing Base Facility accrued interest on Australian dollar drawings at approximately ~~5.18%~~4.75% per annum calculated daily. The Borrowing Base Facility is secured by a lien on all the present and future rights, property and undertakings of S&W Australia, the mortgage on S&W Australia's Keith, South Australia property and the Company's corporate guarantee (up to a maximum of AUD $15,000,000).

The Overdraft Facility permits S&W Australia to borrow funds on a revolving line of credit up to the credit limit. Interest accrues daily and is calculated by applying the daily interest rate to the balance owing at the end of the day and is payable monthly in ~~arrears~~.arrears. As of March 31, ~~2018,~~2019, the Overdraft Facility accrued interest at approximately 6.77% per annum calculated daily.

For both the Overdraft Facility and the Borrowing Base Facility, interest is payable each month in arrears. In the event of a default, as defined in the NAB Facility ~~Agreement,~~agreements, the principal balance due under the facilities will thereafter bear interest at an increased rate per annum above the interest rate that would otherwise have been in effect from time to time under the terms of each facility (i.e., the interest rate increases by 4.5% per annum under the Borrowing Base Facility and the Overdraft Facility rate increases to 13.92% per annum upon the occurrence of an event of default).

Both facilities constituting the 2016 NAB Facilities are secured by a fixed and floating lien over all the present and future rights, property and undertakings of S&W Australia and are guaranteed by the Company as noted above. The 2016 NAB Facilities contain customary representations and warranties, affirmative and negative covenants and customary events of default that permit NAB to accelerate S&W Australia's outstanding obligations, all as set forth in the NAB facility agreements. S&W Australia was in compliance with all NAB debt covenants at March 31, ~~2018.~~2019.

In January 2015, NAB and S&W Australia entered into a new business markets - flexible rate loan (the "Keith Building Loan") and a separate machinery and equipment facility (the "Keith Machinery and Equipment Facility"). At March 31, 2018, the principal balance on the Keith Building Loan was AUD $575,000 (USD $441,715) with unused availability of AUD $100,000 (USD $76,820). At March 31, 2018, the principal balance on the Keith Machinery and Equipment Facility was AUD $569,275 (USD $437,317) with no unused availability. In February 2016, NAB and S&W Australia also entered into a master asset finance facility (the "Master Assets Facility"). ~~At March 31, 2018, the principal balance on the Master Assets Facility was AUD $346,877 (USD $266,471) with unused availability of AUD $403,123 (USD $309,679).~~ The Master Asset Facility has various maturity dates through 2021 and have interest rates ranging from ~~4.89%~~4.86% to 5.31%.

bears interest, payable in arrears, based on the Australian Trade Refinance Rate quoted by NAB at the time of the drawdown, plus 2.9%. The Keith Credit Facilities contain customary representations and warranties, affirmative and negative covenants and customary events of default that permit NAB to accelerate S&W Australia's outstanding obligations, all as set forth in the facility agreement. They are secured by a lien on all the present and future rights, property and undertakings of S&W Australia, the Company's corporate guarantee and a mortgage on S&W Australia's Keith, South Australia property.

Fiscal Year		Amount		Amount

2018	$	149,864
2019		505,969	$	329,965
2020		2,660,221		1,112,892
2021		10,171,291		10,741,452
2022		91,004		692,294
2023				565,356
Thereafter		195,891		35,480
Total	$	13,774,240	$	13,477,439

On December 31, 2014, the Company consummated the sale of senior secured convertible debentures (the "Debentures") and common stock purchase warrants (the "Warrants") to various institutional investors ("Investors") pursuant to the terms of a securities purchase agreement among the Company and the Investors. At closing, the Company received $27,000,000 in gross proceeds. Offering expenses of $1,931,105 attributed to the Debentures were recorded as deferred financing fees and recorded as a debt discount and offering expenses of $424,113 attributed to the Warrants were expensed during the year ended June 30, 2015. The net proceeds were paid directly to DuPont Pioneer in partial consideration for the purchase of certain DuPont Pioneer assets, the closing for which also took place on December 31, 2014.

At the date of issuance, the Debentures were due and payable on November 30, 2017, unless earlier converted or redeemed. The Debentures bear interest on the aggregate unconverted and then outstanding principal amount at 8% per annum, payable in arrears monthly beginning February 2, 2015. Commencing on the occurrence of any Event of Default (as defined in the Debentures) that results in the eventual acceleration of the Debentures, the interest rate will increase to 18% per annum. The monthly interest is payable in cash, or in any combination of cash or shares of the Company's common stock at the Company's option, provided certain "equity conditions" defined in the Debentures are satisfied.

Beginning on July 1, 2015, the Company was required to make monthly payments of principal as well, payable in cash or any combination of cash or shares of its common stock at the Company's option, provided all of the applicable equity conditions are satisfied. The Debentures contain certain rights of acceleration and deferral at the holder's option in the event a principal payment is to be made in stock and contains certain limited acceleration rights of the Company, provided certain conditions are satisfied.

~~During Fiscal Year 2016, the Company accelerated three redemption payments totaling $2,830,049.~~

During the year ended June 30, 2017, certain holders of the Debentures converted an aggregate of $3,168,342 of principal and interest into 684,321 shares of the Company's common stock in accordance with the terms of the Debentures. Upon conversion, the Company recognized interest expense of $194,939 related to unamortized debt discount on the Debentures and incurred $7,070 of stock issuance costs.

~~As of June 30, 2017, the Debentures were fully retired and had no outstanding balance.~~

The Warrants entitle the holders to purchase, in the aggregate, 2,699,999 shares of the Company's common stock. The Warrants are exercisable through their expiration on June 30, 2020, unless earlier redeemed. The Warrants were initially exercisable at an exercise price equal to $5.00. On September 30, 2015, pursuant to the terms of the Warrants, the exercise price was reset to $4.63. In addition, if the Company issues or is deemed to have issued securities at a price lower than the then applicable exercise price during the three-year period ending December 31, 2017, the exercise price of the Warrants will adjust based on a weighted average anti-dilution formula ("down-round protection"). On November 24, 2015, the Company closed on a private placement transaction in which 1,180,722 common shares were sold at $4.15 per share. Pursuant to the down-round protection terms of the Warrants, the exercise price was adjusted to $4.59 on November 24, 2015. On February 29, 2016, the Company completed a rights offering and accompanying noteholders' participation rights offering in which an aggregate of 2,125,682 shares of common stock were sold at $4.15 per share, triggering an adjustment of the exercise price of the Warrants to $4.53. On July 19, 2017, the Company completed a private placement transaction in which an aggregate of 2,685,000 shares of common stock were sold at $4.00 per share, triggering an adjustment of the exercise price of the Warrants to $4.46. On December 22, 2017, the Company completed a rights offering and backstop commitment in which an aggregate of 3,500,000 shares of common stock were sold at $3.50 per share, triggering an adjustment of the exercise price of the Warrants to $4.32. The down-round protection provision of the warrants expired on December 31, 2017.

The Warrants may be exercised for cash, provided that, if there is no effective registration statement available registering the exercise of the Warrants, the Warrants may be exercised on a cashless basis. At any time that (i) all equity conditions set forth in the Warrants have been satisfied, and (ii) the closing sales price of the common stock equals or exceeds $12.00 for 15 consecutive trading days (subject to adjustment for stock splits, reverse stock splits and other similar recapitalization events), the Company may redeem all or any part of the Warrants then outstanding for cash in an amount equal to $0.25 per Warrant.

Due to the down-round price protection included in the terms of the Warrants, the Warrants are treated as a derivative liability in the consolidated balance sheet, measured at fair value and marked to market each reporting period until the earlier of the Warrants being fully exercised or December 31, 2017, when the down-round protection expires. The down-round price protection expired on December 31, 2017, accordingly, the fair value of the Warrants as of December 31, 2017 was reclassified to additional paid in capital within the equity section of the balance sheet. The initial fair value of the Warrants on December 31, 2014 was $4,862,000. At December 31, 2017 and June 30, 2017, the fair value of the Warrants was estimated at $2,405,300 and $2,836,600, respectively. The Warrants were valued at December 31, 2017 using the Monte Carlo simulation model, under the following assumptions: (i) remaining expected life of 2.5 years, (ii) volatility of 39.0%, (iii) risk-free interest rate of 1.92% and (iv) dividend rate of zero. The aggregate fair value of the Warrants derived via the Monte Carlo analysis were also weighted by a prior third-party market transaction and third-party indications of fair value. The prior third-party market transaction was provided a weighting of 10.0% while the third-party indications of fair value were provided a 50% weighting in the fair value analysis.

The Warrants were valued at June 30, 2017 using the Monte Carlo simulation model, under the following assumptions: (i) remaining expected life of 3 years, (ii) volatility of 45.6%, (iii) risk-free interest rate of 1.54% and (iv) dividend rate of zero. The aggregate fair value of the Warrants derived via the Monte Carlo analysis were also weighted by a prior third-party market transaction and third-party indications of fair value. The prior third-party market transaction was provided a weighting of 10.0% while the third-party indications of fair value were provided a 50% weighting in the fair value analysis.

Of the $27,000,000 in principal amount of Debentures sold in December 2014, $22,138,000 of the initial proceeds was allocated to the Debentures. The required redemption contingent upon the real estate sale was determined to be an embedded derivative not clearly and closely related to the borrowing. As such, it was bifurcated and treated as a derivative liability, recorded initially at its fair value of $150,000, leaving an allocation to the host debt of $21,988,000. The difference between the initial amount allocated to the borrowing and the face value of the Debentures was amortized over the term of the Debentures using the effective interest method. Debt issuance costs totaling $1,931,105 were also amortized over the term of the Debentures using the effective interest method. In addition, the reduction in the conversion price of the Debentures as of September 30, 2015 resulted in a beneficial conversion feature of $871,862, which was recognized as additional debt discount and an increase to additional paid-in capital.

The following table summarizes the total warrants outstanding at March 31, ~~2018:~~2019:

The following table summarizes the total warrants outstanding at June 30, ~~2017:~~2018:

On September 5, 2018, the Company entered into a Securities Purchase Agreement (the "Securities Purchase Agreement") with MFP Partners, L.P. ("MFP"), pursuant to which the Company sold to MFP 1,607,717 shares of common stock of the Company (the "Common Shares") at a purchase price of $3.11 per share at an initial closing, and agreed to sell, subject to ~~down-round~~the satisfaction of certain conditions, 7,235 shares of newly designated Series A Convertible Preferred Stock of the Company ("Preferred Shares") to MFP at a purchase price ~~protection until December 31, 2017. See Note 6~~of $3,110 per share at a second closing (the "Second Closing").

The Second Closing was completed on October 23, 2018, for ~~further discussion.~~aggregate gross proceeds of approximately $22.5 million, which was used primarily to fund the Chromatin Acquisition. The Preferred Shares carried no voting rights and were automatically convertible into shares of common stock at the rate of 1,000 shares of common

stock per Preferred Share upon the approval of the Company's stockholders for the issuance of the requisite shares of common stock. Pursuant to the Securities Purchase Agreement, the Company agreed to use its reasonable best efforts to solicit the approval of its shareholders for the issuance of stock upon the conversion of the Preferred Shares at a special meeting of shareholders, and at each annual meeting of shareholders thereafter, if necessary. Approval was obtained at a Special Meeting of Stockholders held on November 20, 2018, and the Preferred Shares automatically converted into 7,235,000 shares of common stock on that same day.

The Company's subsidiary, S&W Australia, is exposed to foreign currency exchange rate fluctuations in the normal course of its business, which the Company manages through the use of foreign currency forward contracts. These foreign currency contracts are not designated as hedging instruments; accordingly, changes in the fair value are recorded in current period earnings. These foreign currency contracts had a notional value of ~~$3,579,325~~$3,571,233 at March 31, ~~2018~~2019 and their maturities range from April ~~2018~~2019 to ~~July 2018.~~September 2019.

The Company records an asset or liability on the consolidated balance sheet for the fair value of the foreign currency forward contracts. The foreign currency contract ~~liability~~liabilities totaled ~~$22,449~~$41,819 at March 31, ~~2018~~2019 and ~~the foreign currency contract asset totaled $166,629~~$100,138 at June 30, ~~2017.~~2018. The Company recorded a ~~loss~~gain on foreign exchange contracts of ~~$91,811~~$56,990 and a ~~gain~~loss of ~~$360,216,~~$91,811, which is reflected in cost of revenue for the three months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. The Company recorded a ~~loss~~gain on foreign exchange contracts of ~~$192,360~~$53,650 and ~~$212,859,~~a loss of $192,360, which is reflected in cost of revenue for the nine months ended March 31, 2019 and 2018, ~~and 2017,~~ respectively.

Based on information currently available, management is not aware of any other matters that would have a material adverse effect on the Company's financial condition, results of operations or cash flows.

The Company may be subject to various legal proceedings from time to time. The results of any future litigation cannot be predicted with certainty, and regardless of the outcome, litigation can have an adverse impact on the Company because of defense and settlement costs, diversion of management resources, and other factors. Any current litigation is considered immaterial and counter claims have been assessed as remote.

Glen D. Bornt, a member of the Company's Board of Directors until January 9, 2018, is the founder and President of Imperial Valley Milling Co. ("IVM"). He is IVM's majority shareholder and a member of its Board of Directors. Glen D. Bornt is also a majority shareholder of Kongal Seeds Pty. Ltd. ("Kongal"). IVM had a 15-year supply agreement with IVS, and this agreement was assigned by IVS to the Company when it purchased the assets of IVS in October 2012. IVM contracts with alfalfa seed growers in California's Imperial Valley and sells its growers' seed to the Company pursuant to a supply agreement. Under the terms of the supply agreement, IVM's entire certified and uncertified alfalfa seed production must be offered and sold to the Company, and the Company has the exclusive option to purchase all or any portion of IVM's seed production. The Company paid $2,458,889 to IVM during the nine months ended March 31, 2018. Amounts due to IVM totaled $120,081 and $326,941 at March 31, 2018 and June 30, 2017, respectively. The Company paid $155,215 to Kongal during the nine months ended March 31, 2018. Amounts due to Kongal totaled $0 and $4,753 at March 31, 2018 and June 30, 2017, respectively.

On July 19, 2017, the Company entered into a Securities Purchase Agreement with certain purchasers, including MFP Partners, L.P. ("MFP"), a stockholder of the Company, and certain entities related to Wynnefield Capital Management LLC (collectively, "Wynnefield"), pursuant to which MFP purchased approximately $3.7 million of shares of its common stock and Wynnefield purchased approximately $3.0 million of shares of its common stock. Each of MFP and Wynnefield is a beneficial owner of more than 5% of the Company's common stock. Alexander C. Matina, a member of the Company's Board, is Vice President, Investments of MFP. Robert D. Straus, a member of the Company's Board since January 9, 2018, is a Portfolio Manager ~~and Analyst~~ at Wynnefield.

On October 11, 2017, the Company entered into a Securities Purchase Agreement with Mark W. Wong, the Company's President and Chief Executive Officer, pursuant to which the Company sold and issued an aggregate of 75,000 shares of its Common Stock at a purchase price of $3.50 per share, for aggregate gross proceeds of $262,500.

On December 22, 2017, the Company completed the closing of its previously announced rights offering. At the closing, the Company sold and issued an aggregate of 2,594,923 shares of its Common Stock at a subscription price of $3.50 per share pursuant to the exercise of subscriptions and oversubscriptions in the rights offering from its existing stockholders. Pursuant to an Investment Agreement, dated October 3, 2017, between the Company and MFP, MFP agreed to purchase, at the subscription price, all of the shares not purchased in the Rights Offering (the "Backstop Commitment"). Accordingly, on December 22, 2017, the Company and MFP completed the closing of the Backstop Commitment, in which the Company sold and issued 905,077 shares of its Common Stock to MFP. Combined, the Company sold and issued an aggregate of 3,500,000 shares of its common stock for aggregate gross proceeds of $12.25 million.

On September 5, 2018, the Company entered into the Securities Purchase Agreement with MFP, pursuant to which the Company sold the Common Shares at the Initial Closing and the Preferred Shares at the Second Closing. The Initial Closing was completed on September 5, 2018 and the Second Closing was completed on October 23, 2018. See Note 9 for further discussion on the Second Closing.

On December 18, 2018, the Company entered into a Loan and Security Agreement (the "MFP Loan Agreement") with MFP, pursuant to which the Company was able to borrow up to $5,000,000, in minimum increments of $1,000,000, from MFP during the period beginning on December 18, 2018 and ending on the earlier to occur of (i) March 18, 2019 and (ii) certain specified events of default. Pursuant to the MFP Loan Agreement, interest accrued on outstanding principal at a fixed per annum rate of 6.0%. In addition, the Company was obligated to pay to MFP a fee equal to 2.0% of each advance under the MFP Loan Agreement. Concurrently with the execution of the MFP Loan Agreement, the Company drew down $1,000,000 under the MFP Loan Agreement, which was disbursed to the Company on December 21, 2018. On December 31, 2018, the Company repaid in full the $1,000,000 disbursed to the Company. As of March 31, 2019, no amounts remained outstanding under the MFP Loan Agreement.

In October 2009 and January 2010, the Company's Board of Directors and stockholders, respectively, approved the 2009 Equity Incentive Plan (as amended and/or restated from time to time, the "2009 Plan"). The plan authorized the grant and issuance of options, restricted shares and other equity compensation to the Company's directors, employees, officers and consultants, and those of the Company's subsidiaries and parent, if any. In October 2012 and December 2012, the Company's Board of Directors and stockholders, respectively, approved the amendment and restatement of the 2009 Plan, including an increase in the number of shares available for issuance as grants and awards under the Plan to 1,250,000 shares. In September 2013 and December 2013, the Company's Board of Directors and stockholders, respectively, approved ~~the~~an amendment ~~and restatement~~ of the 2009 Plan ~~including an~~to increase in the number of shares available for issuance as grants and awards under the Plan to 1,700,000 shares. In September 2015 and December 2015, the Company's Board of Directors and stockholders, respectively, approved ~~the~~an amendment ~~and restatement~~ of the 2009 Plan ~~including an~~to increase in the number of shares available for issuance as grants and awards under the Plan to 2,450,000 shares.

In January 2019, the Company's Board of Directors and stockholders approved the 2019 Equity Incentive Plan ("2019 Plan") as a successor to and continuation of the Company's 2009 Plan. Subject to adjustment for certain changes in the Company's capitalization, the aggregate number of shares of the Company's common stock that may be issued under the 2019 Plan will not exceed 4,243,790 shares, which is the sum of (i) 2,750,000 new shares, plus (ii) 350,343 shares that remained available for grant under the 2009 Plan as of January 16, 2019, plus (iii) 1,143,447 shares subject to outstanding stock awards granted under the 2009 Plan.

The term of incentive stock options granted under the ~~2009~~2019 Plan may not exceed ten years, or five years for incentive stock options granted to an optionee owning more than 10% of the Company's voting stock. The exercise price of options granted under the ~~2009~~2019 Plan must be equal to or greater than the fair market value of the shares of the common stock on the date the option is granted. An incentive stock option granted to an optionee owning more than 10% of voting stock must have an exercise price equal to or greater than 110% of the fair market value of the common stock on the date the option is granted.

The Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. Stock options issued to non-employees are accounted for at their estimated fair value. The fair value of options granted to non-employees is re-measured as they vest. The Company amortizes stock-based compensation expense on a straight-line basis over the requisite service period.

The Company utilizes a Black-Scholes-Merton option pricing model, which includes assumptions regarding the risk-free interest rate, dividend yield, life of the award, and the volatility of the Company's common stock to estimate the fair value of employee options grants.

Weighted average assumptions used in the Black-Scholes-Merton model for awards granted during the period are set forth below:

	March 31,		March 31,
	2018	2017	2019	2018

Risk free rate	1.9% - 2.3%	1.2% - 1.9%	2.5% - 3.0%	1.9% - 2.3%
Dividend yield	0%	0%	0%	0%
Volatility	45.5%	39.2% - 51.6%	34.5% - 41.5%	45.5%
Average forfeiture assumptions	1.4%	2.4%	1.4%	1.4%

During the nine months ended March 31, ~~2018,~~2019, the Company granted ~~103,283~~ options to ~~the~~purchase 429,678 shares of its common stock to certain of its Directors, ~~certain~~ members of the executive management team and other employees at exercise prices ranging from ~~$3.00 to $4.03.~~$2.19 - $3.30. These options vest in either quarterly or annual periods over one to three years, and expire ten years from the date of grant.

A summary of stock option activity for the nine months ended March 31, ~~2018~~2019 and the year ended June 30, ~~2017~~2018 is presented below:

				Weighted-						Weighted-
			Weighted -	Average					Weighted -	Average
			Average	Remaining		Aggregate			Average	Remaining		Aggregate
	Number		Exercise Price	Contractual		Intrinsic	Number		Exercise Price	Contractual		Intrinsic
	Outstanding		Per Share	Life (Years)		Value	Outstanding		Per Share	Life (Years)		Value
Outstanding at June 30, 2016	1,021,418	$	5.14	4.2		142,381
Granted	230,610		4.19	-		-
Exercised	(232,000)		4.20	-		-
Canceled/forfeited/expired	(29,500)		5.95	-		-
Outstanding at June 30, 2017	990,528		5.12	4.3		100,344	990,528	$	5.12	4.3	$	100,344
Granted	103,283		3.45	-		-	103,283		3.45	-		-
Exercised	(49,000)		3.95	-		-	(49,000)		3.95	-		-
Canceled/forfeited/expired	(214,000)		6.72	-		-	(252,737)		6.46	-		-
Outstanding at March 31, 2018	830,811		4.57	6.2		32,378
Options vested and exercisable at March 31, 2018	592,873		4.86	5.1		4,394
Options vested and expected to vest as of March 31, 2018	830,053	$	4.57	6.2	$	32,140
Outstanding at June 30, 2018							792,074		4.55	6.3		10,413
Granted							429,678		2.84	-		-
Exercised							-		-	-		-
Canceled/forfeited/expired							(166,500)		-	-		-
Outstanding at March 31, 2019							1,055,252		3.60	8.1		37,169
Options vested and exercisable at March 31, 2019							568,817		4.10	7.1		-
Options vested and expected to vest as of March 31, 2019							1,053,509	$	3.60	8.1	$	36,842

The weighted average grant date fair value of options granted and outstanding at March 31, ~~2018~~2019 was ~~$1.52.~~$1.42. At March 31, ~~2018,~~2019, the Company had ~~$333,457~~$472,498 of unrecognized stock compensation expense, net of estimated forfeitures, related to the options under the ~~2009~~2019 Plan, which will be recognized over the weighted average remaining service period of ~~1.84~~1.9 years. The Company settles employee stock option exercises with newly issued shares of common stock.

During the year ended June 30, 2017, the Company issued 77,275 restricted stock units to its directors, certain members of the executive management team, and other employees. The restricted stock units have varying vesting periods ranging from immediate vesting to annual installments over a three-year period. The fair value of the awards totaled $374,530 and was based on the closing stock price on the date of grants.

During the nine months ended March 31, ~~2018,~~2019, the Company issued ~~78,642~~175,758 restricted stock units to ~~its directors,~~ certain members of the executive management team and other employees. The restricted stock units vest immediately, in ~~either~~annual installments over one-year or quarterly ~~or annual periods and vest in either quarterly or annual~~ periods over three-years. The fair value of the awards totaled ~~$279,611~~$472,171 and was based on the closing stock price on the date of grants.

The Company recorded ~~$397,309~~$300,933 and ~~$674,076~~$397,309 of stock-based compensation expense associated with grants of restricted stock units during the nine months ended March 31, ~~2018~~2019 and ~~2017,~~2018, respectively. A summary of activity related to non-vested restricted stock units is presented below:

Nine Months Ended March 31, 2019					Nine Months Ended March 31, 2019
				Weighted -					Weighted -
	Number of		Weighted-	Average		Number of		Weighted-	Average
	Nonvested		Average	Remaining		Nonvested		Average	Remaining
	Restricted		Grant Date	Contractual		Restricted		Grant Date	Contractual
	Stock Units		Fair Value	Life (Years)		Stock Units		Fair Value	Life (Years)
Beginning nonvested restricted units outstanding	120,971	$	5.59	1.5		89,193	$	3.98	1.1
Granted	78,642		3.56	1.3		175,758		2.69	2.8
Vested	(98,358)		5.57	-		(98,800)		3.79	-
Forfeited	(4,435)		4.45	-		-		-	-
Ending nonvested restricted units outstanding	96,820	$	4.01	1.2		166,151	$	2.72	1.6

At March 31, ~~2018,~~2019, the Company had ~~$291,932~~$375,949 of unrecognized stock compensation expense related to the restricted stock units, which will be recognized over the weighted average remaining service period of ~~1.18~~1.56 years.

At March 31, ~~2018,~~2019, there were ~~671,844~~3,021,719 shares available under the ~~2009~~2019 Plan for future grants and awards.

Stock-based compensation expense recorded for stock options, restricted stock grants and restricted stock units for the three months ended March 31, 2019 and 2018, totaled $156,175 and ~~2017, totaled~~ $149,198, ~~and $306,800,~~ respectively. Stock-based compensation expense recorded for stock options, restricted stock grants and restricted stock units for the nine months ended March 31, 2019 and 2018, totaled $533,633 and ~~2017, totaled~~ $600,231, ~~and $885,456,~~ respectively.

The below table represents supplemental information to the Company's consolidated statements of cash flows for non-cash activities during the nine months ended March 31, 2019 and 2018, ~~and 2017,~~ respectively.

You should read the following discussion of our financial condition and results of operations in conjunction with our consolidated financial statements and the related notes included in Part I, Item 1, "Financial Statements" of this Quarterly Report on Form 10-Q. In addition to our historical consolidated financial information, the following discussion contains forward-looking statements that reflect our plans, estimates, and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements as referred to on page 2 of this Quarterly Report on Form 10-Q. Factors that could cause or contribute to these differences include those discussed in our Annual Report on Form 10-K for the fiscal year ended June 30, ~~2017,~~2018, particularly in Part I, Item 1A, "Risk Factors", as updated in Part II, Item 1A. "Risks Factors" of this Quarterly Report on Form 10-Q.

Founded in 1980 and headquartered in Sacramento, California, we are a global agricultural company. Grounded in our historical expertise and what we believe is our present leading position in the breeding, production and sale of alfalfa seed, we continue to build towards our goal of being recognized as the world's preferred proprietary forage, grain and specialty crop seed company. In addition to our primary activities in alfalfa seed, we have recently expanded our product portfolio by adding hybrid sorghum and sunflower seed, which complement our alfalfa seed offerings by allowing us to leverage our infrastructure, research and development expertise and our distribution channels, as we begin to diversify into what we believe are higher margin opportunities. We also continue to conduct our stevia breeding program, having been granted four patents ~~granted.~~by the U.S. Patent and Trademark Office (the "USPTO").

Following our initial public offering in fiscal year 2010, we expanded certain pre-existing business initiatives and added new ones, including:

We have accomplished these expansion initiatives through a combination of organic growth and strategic acquisitions, foremost among them:

We believe our 2013 combination with S&W Australia created the world's largest non-dormant alfalfa seed company and gave us the competitive advantages of year-round production in that market. With the completion of the acquisition of dormant alfalfa seed assets from DuPont Pioneer in December 2014, we believe we have become the largest alfalfa seed company worldwide (by volume), with industry-leading research and development, as well as production and distribution capabilities in both hemispheres and the ability to supply proprietary dormant and non-dormant alfalfa seed. Our operations span the world's alfalfa seed production regions, with operations in the San Joaquin and Imperial Valleys of California, five additional Western states, Australia and three provinces in Canada.

Our May 2016 acquisition of the hybrid sorghum and sunflower germplasm business and assets of SV Genetics, ~~signals~~our April 2018 acquisition of a portfolio of sorghum germplasm, and our October 2018 acquisition of the assets and business of Chromatin signal management's commitment to our strategy of identifying opportunities to diversify our product lines and improve our gross margins.

The Asset Purchase and Sale Agreement for the Pioneer Acquisition previously contemplated that, subject to the satisfaction of certain conditions, we would acquire certain GMO germplasm varieties and other related assets from DuPont Pioneer for a purchase price of $7.0 million. The conditions for this additional acquisition were not satisfied by the required date, and DuPont Pioneer has informed us that it does not intend to extend the deadline or complete the transaction at this point in time. As a result, we do not expect to close the acquisition of DuPont Pioneer's GMO germplasm varieties and related assets in the previously disclosed structure or pay the $7,000,000 purchase price.38

We continue to have a long-term distribution agreement with DuPont Pioneer regarding conventional (non GMO) varieties, the term of which extends into 2024. Our production ~~and research agreements~~agreement with DuPont Pioneer (relating to GMO-traited varieties) ~~terminated~~terminates on ~~February 28, 2018.~~May 31, 2019. As a result, DuPont Pioneer's minimum purchase commitments from us will be reduced by approximately $6 million annually, commencing with our Fiscal Year ~~2019. However, we expect that the DuPont Pioneer distribution agreement will continue to be a significant source of our annual revenue through December 2024.~~2020.

We are in discussions with DuPont Pioneer regarding the orderly transition of activities previously conducted by us under the production and research agreements (relating to GMO-traited varieties), as well as the possibility of certain ongoing commercial relationships between us relating to GMO-traited varieties, among other things.

We derive most of our revenue from the sale of our proprietary alfalfa seed varieties. We expect that over the next several years, a ~~substantial~~ majority of our revenue will continue to be generated from the sale of alfalfa seed, although we are continually assessing other possible product offerings or means to increase revenue, including expanding into other, higher margin crops. In late fiscal year 2016, we began that expansion with the acquisition of the hybrid sorghum and sunflower business and assets of SV Genetics. In October 2018, we continued this expansion with our acquisition of the assets and business of Chromatin. Revenue from the ~~newly-acquired~~ SV Genetics germplasm will be primarily derived from the sale of sorghum and sunflower seed as well as royalty-based payments set forth in various licensing agreements. Revenue from the Chromatin transaction is expected to be derived from the sale of hybrid sorghum seed.

Fiscal year 2016 was the first full fiscal year in which we had a full range of non-dormant and dormant alfalfa seed varieties. This is expected to enable us to significantly expand the geographic reach of our sales efforts. The mix of our product offerings will continue to change over time with the introduction of new alfalfa seed varieties resulting from our robust research and development efforts, including our potential expansion into gene edited varieties in future periods. ~~Currently, we have a long-term distribution agreement with DuPont Pioneer, which we expect will be the source of a significant portion of our annual revenue through December 2024.~~

Our revenue will fluctuate depending on the timing of orders from our customers and distributors. Because some of our large customers and distributors order in bulk only one or two times per year, our product revenue may fluctuate significantly from period to period. However, some of this fluctuation is offset by having operations in both the northern and southern hemispheres.

Our stevia breeding program has yet to generate any meaningful revenue. However, management continues to evaluate this portion of our business and assess various means to monetize the results of our effort to breed new, better tasting stevia varieties. Such potential opportunities include possible licensing agreements and royalty-based agreements.

Cost of revenue relates to sale of our seed varieties and consists of the cost of procuring seed, plant conditioning and packaging costs, direct labor and raw materials and overhead costs.

Seed and stevia research and development expenses consist of costs incurred in the discovery, development, breeding and testing of new products incorporating the traits we have specifically selected. These expenses consist primarily of employee salaries and benefits, consultant services, land leased for field trials, chemicals and supplies and other external expenses. With the acquisition of ~~SV Genetics~~the assets of Chromatin in ~~late fiscal 2016, similar~~October 2018, additional costs are now being incurred as we continue the research and development efforts ~~begun by SV Genetics~~ in the development of new ~~varieties of hybrid~~ sorghum ~~and sunflower seed germplasm.~~hybrids. Because we have been in the alfalfa seed breeding business since our inception in 1980, we have expended far more resources in development of our proprietary alfalfa seed varieties throughout our history than on our stevia breeding program, which we commenced in fiscal year 2010.

In fiscal year 2013, we made the decision to shift the focus of our stevia program away from commercial production and towards the breeding of improved varieties of stevia. We have continued that effort, which has resulted in the granting by the USPTO of four patents covering stevia plant varieties SW 107, SW 201, SW 129 and SW 227.

Our research and development expenses increased significantly with the acquisition of the alfalfa research and development assets of DuPont Pioneer in December 2014. We also have expanded our genetics research both internally and in collaboration with third parties. In addition, we acquired additional research and development operations in connection with our ~~May 2016~~October 2018 acquisition of ~~SV Genetics~~the assets of Chromatin that we expect will factor into an overall increase in R&D expense. Overall, we have been focused on controlling research and development expenses, while balancing that objective against the recognition that continued advancement in product development is an important part of our strategic planning. We expect our research and development expenses will fluctuate from period to period as a result of the timing of various research and development projects.

Our internal research and development costs are expensed as incurred, while third party research and developments costs are expensed when the contracted work has been performed or as milestone results have been achieved. The costs associated with equipment or facilities acquired or ~~construed~~constructed for research and development activities that have alternative future uses are capitalized and depreciated on a straight-line basis over the estimated useful life of the asset.

Selling, general, and administrative expenses consist primarily of employee costs, including salaries, employee benefits and share-based compensation, as well as professional service fees, insurance, marketing, travel and entertainment expense, public company expense and other overhead costs. We proactively take steps on an ongoing basis to control selling, general and administrative expense as much as is reasonably possible.

Most of the depreciation and amortization expense on our statement of operations consists of amortization expense. We amortize intangible assets, including those acquired from DuPont Pioneer in December 2014, ~~and from~~ SV Genetics in May 2016, and Chromatin in October 2018 using the straight-line method over the estimated useful life of the asset, consisting of periods of 10-30 years for technology/IP/germplasm, 205-20 years for customer relationships and trade names and ~~2-20~~3-20 years for other intangible assets. Property, plant and equipment is depreciated using the straight-line method over the estimated useful life of the asset, consisting of periods of ~~5-28~~5-35 years for buildings, 3-20 years for machinery and equipment and ~~3-5~~2-5 years for vehicles.

Other expense consists primarily of foreign currency gains and losses, changes in the fair value of derivative liabilities related to our warrants, changes in the fair value of our contingent consideration obligations and interest expense in connection with amortization of debt discount. In addition, interest expense primarily consists of interest costs related to outstanding borrowings on our credit facilities, including our current KeyBank revolving line of credit and on S&W Australia's credit facilities, ~~in South Australia, our 8% senior secured convertible debentures that were issued in December 2014 which were fully paid off on March 1, 2017,~~ our three-year secured promissory note issued in December 2014 in connection with the DuPont Pioneer Acquisition which was paid off on December 1, 2017, and our ~~newly issued~~ secured promissory ~~notes~~note with ~~Conterra.~~Conterra Agricultural Capital, LLC ("Conterra").

Our effective tax rate is based on income, statutory tax rates, differences in the deductibility of certain expenses and inclusion of certain income items between financial statement and tax return purposes, and tax planning opportunities available to us in the various jurisdictions in which we operate. Under U.S. GAAP, if we determine that a tax position is more likely than not of being sustained upon audit, based solely on the technical merits of the position, we recognize the benefit. Tax regulations require certain items to be included in the tax return at different times than when those items are required to be recorded in the consolidated financial statements. As a result, our effective tax rate reflected in our consolidated financial statements is different from that reported in our tax returns. Some of these differences are permanent, such as meals and entertainment expenses that are not fully deductible on our tax return, and some are temporary differences, such as depreciation expense. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that can be used as a tax deduction or credit in our tax return in future years for which we have already recorded the tax benefit in our consolidated statements of operations. In the fourth quarter of fiscal year 2017, we recorded a valuation allowance against all of our deferred tax assets. The full valuation allowance was recorded during the fiscal year 2017 as a result of changes to our operating results and future projections, resulting from a recent decline in export sales to Saudi Arabia. In addition, our available tax planning strategies are currently not expected to overcome the uncertainty of the Saudi Arabian market. As a result of these factors, we don't believe that it is more likely than not that our deferred tax assets will be realized.

Three Months Ended March 31, ~~2018~~2019 Compared to the Three Months Ended March 31, ~~2017~~2018

Sales into international markets represented 16% and 20% of revenue during the three months ended March 31, 2018 and 2017, respectively. Domestic revenue accounted for 84% and 80% of our total revenue for the three months ended March 31, 2018 and 2017, respectively. The increase in domestic revenue as a percentage of total revenue is primarily attributed to timing differences in shipments to our largest customer.fiscal year 2018.

We recorded sales of approximately ~~$18.7~~$7.9 million from our distribution and production agreements with DuPont Pioneer during the three months ended March 31, ~~2018,~~2019, which was ~~an increase~~a decrease of ~~$2.5~~$10.8 million from the comparable period in the prior year amount of ~~$16.2~~$18.7 million. ~~We expect sales to~~Our production agreement with DuPont Pioneer (relating to GMO-traited varieties) terminates on May 31, 2019.

The following table disaggregates our revenue by type of contract. The current period information is presented under both ASC 606 and ASC 605 to provide comparison to the third quarter of fiscal 2018.

Sales into international markets represented 27% and 16% of revenue during the three months ended March 31, 2019 and 2018, respectively. Domestic revenue accounted for 73% and 84% of our total revenue for the three months ended March 31, 2019 and 2018, respectively. The decrease in domestic revenue as a percentage of total revenue is primarily attributable to timing of revenue recognition associated with our distribution ~~agreement will continue to represent a significant portion of our domestic sales, as well as overall sales, for the foreseeable future.~~and production agreements with DuPont Pioneer.

Cost of revenue of $13,388,470 for the three months ended March 31, 2019 was 73.7% of revenue, while the cost of revenue of $16,303,436 for the three months ended March 31, 2018 was 71.0% of ~~revenue, while the cost of revenue of $15,208,896 for the three months ended March 31, 2017 was 72.4% of~~ revenue. Cost of revenue ~~increased~~decreased on a dollar basis primarily due to the ~~increase~~decrease in ~~revenue.~~revenue discussed above.

Total gross profit margin for the three months ended March 31, ~~2018~~2019 was ~~29.0%~~26.3% compared to ~~27.6%~~29.0% in the ~~comparable period of the prior year.~~three months ended March 31, 2018. The ~~increase~~decrease in gross profit margins was primarily due to product sales mix during the current period where we had a ~~higher~~lower concentration of ~~sales, as a percentage of total revenue, to DuPont Pioneer which are~~ higher margin ~~sales. Additionally, the product costs of proprietary~~dormant alfalfa seed ~~are lower in the current year due to more favorable production contracts and arrangements.~~sales.

While there will continue to be quarterly fluctuations in gross profit margin based on product sales mix, we anticipate improved gross margins in fiscal 2018 as a result of a number of initiatives we are deploying.

Selling, General and Administrative ("SG&A") expense for the three months ended March 31, ~~2018~~2019 totaled ~~$2,676,166~~$4,610,471 compared to ~~$2,720,131~~$2,676,166 for the three months ended March 31, ~~2017. The $43,965 decrease in SG&A expense versus the third quarter~~2018. We incurred non-recurring transactions expenses of the prior year was primarily due to a decrease in stock-based compensation of $157,602 partially offset by an increase in consulting expense. As a percentage of revenue, SG&A expenses were 11.7% in the current quarter compared to 12.9% in$147,337 during the three months ended March 31, ~~2017.~~2019 related to the acquisition of Chromatin. Excluding transaction costs from the three months ended March 31, 2019 and 2018, SG&A expenses increased $1,810,335 from the comparable period of the prior year. The increase in SG&A expense was primarily due to a $972,000 increase from the recent Chromatin acquisition, provision for bad debt expense of $490,946 as well as other increases in sales and management personnel and related costs as we focus on the anticipated growth in operations in the United States and Australia.

Research and development expenses for the three months ended March 31, ~~2018~~2019 totaled ~~$1,065,323~~$1,824,613 compared to ~~$714,512~~$1,065,323 for the three months ended March 31, ~~2017.~~2018. The ~~$350,811~~$759,290 increase in research and development expense versus the comparable period of the prior year is driven by additional research and development activities in connection with the recent Chromatin acquisition coupled with additional investment in our hybrid programs. We expect our research and development spend for fiscal 2019 to increase as we expand our hybrid sorghum and sunflower ~~programs as well as our stevia program.~~programs.

Depreciation and amortization expense for the three months ended March 31, ~~2018~~2019 was ~~$838,585~~$1,171,057 compared to ~~$798,559~~$838,585 for the three months ended March 31, ~~2017.~~2018. Included in the amount was amortization expense for intangible assets, which totaled ~~$499,634 in~~$595,203 for the three months ended March 31, ~~2018~~2019 and ~~$555,977 in~~$499,634 for the three months ended March 31, ~~2017.~~2018. The ~~$40,026~~$332,472 increase in depreciation and amortization expense over the ~~comparable period~~third quarter of the prior year is primarily driven by additional depreciation ~~expense associated with fixed asset additions.~~and amortization of assets acquired from the recent Chromatin acquisition.

We incurred a foreign currency loss of $4,793 for the three months ended March 31, 2019 compared to a gain of $27,939 for the three months ended March 31, ~~2018 compared to a loss of $2,125 for the three months ended March 31, 2017.~~2018. The foreign currency gains and losses are primarily associated with S&W Australia, our wholly-owned subsidiary in ~~Australia.~~

~~The derivative warrant liability was considered a level 3 fair value financial instrument~~South Africa and was measured at each reporting period until December 31, 2017 at which time the warrants were reclassified to equity due to the expiration of the down-round price protection provision. We recorded a non-cash change in derivative warrant liability gain of $1,009,901 in the three months ended March 31, 2017.

The contingent consideration obligations are considered level 3 fair value financial instruments and will be measured at each reporting period. The $0 and $86,688 gain from non-cash change in contingent consideration obligations for the three months ended March 31, 2018 and 2017, respectively; represents the decrease in the estimated fair value of the contingent consideration obligations during that respective period. The earn-out payment to DuPont Pioneer was finalized in the amount of $2,500,000 and this was added to the Pioneer Note in October 2017 and subsequently paid off in December 2017.Hungry.

Non-cash amortization of debt discount expense for the three months ended March 31, ~~2018~~2019 was ~~$51,185~~$103,362 compared to ~~$150,875~~$51,185 for the three months ended March 31, ~~2017.~~2018. The expense in the current ~~quarter~~period represents the amortization of the debt issuance costs associated with our KeyBank and NAB working capital facilities, our secured property note, and our equipment capital leases. The expense in the comparable period in the prior year primarily represents the amortization of the debt issuance costs associated with our KeyBank working capital facility and our secured property and equipment notes with Conterra. The expense in the prior year represents the amortization of the debt discount, beneficial conversion feature and debt issuance costs associated with the convertible debentures issued December 31, 2014 and the debt issuance costs associated with our KeyBank working capital facility.note.

Interest expense ~~during~~for the three months ended March 31, ~~2018~~2019 totaled ~~$512,892~~$758,669 compared to ~~$300,627~~$512,892 for the three months ended March 31, 2018. Interest expense for the three months ended March 31, 2019 primarily consisted of interest incurred on the working capital credit facilities with KeyBank and NAB, and the secured property loan entered into in November 2017. Interest expense for the three months ended March 31, 2018 primarily consisted of interest incurred on the working capital credit facilities with KeyBank and NAB and the ~~new~~ secured property ~~and equipment loans~~loan entered into in November 2017. Interest expense for the three months ended March 31, 2017 primarily consisted of interest incurred on the convertible debentures issued on December 31, 2014, on the note payable issued to DuPont Pioneer as part of the purchase consideration for the DuPont Pioneer Acquisition and the working capital credit facilities with KeyBank and NAB. The ~~$212,265~~$245,777 increase in interest expense for the three months ended March 31, ~~2018~~2019 is primarily driven by ~~$251,375 of~~ interest on the ~~new~~ secured property and equipment loans ~~partially offset by a $75,000 reduction in~~as well as additional interest ~~expense from~~on the ~~pay-off~~working capital credit facilities due to increased levels of ~~the DuPont Pioneer note.~~borrowings and interest rates.

Income tax benefit totaled $82,411 for the three months ended March 31, 2019 compared to $248,931 for the three months ended March 31, ~~2018 compared to an income~~2018. Our effective tax ~~expense of $463,509~~rate for the three months ended March 31, ~~2017. Our effective tax rate~~2019 was 2.4% compared to (16.3%) for the three months ended March 31, ~~2018 compared to 25.9% for the three months ended March 31, 2017.~~2018. The ~~decrease in~~primary driver of our effective tax rate for the three months ended March 31, ~~2018~~2019 is ~~attributable to~~

the full valuation allowance established against our deferred tax assets which was recorded during the fourth quarter of fiscal 2017. Due to the valuation allowance, we do not record the income tax expense or benefit related to ~~substantially all~~the vast majority of our current year operating results, as such results are generally incorporated in our net operating loss deferred tax asset position, which has a full valuation allowance against it. However, we ~~did~~do record tax expense related to certain other factors occurring

throughout the year. For example, we have certain intangible assets with indefinite lives for financial reporting purposes which historically produced deferred tax liabilities that could not be offset by deferred tax assets. The movement in these deferred tax liabilities would produce an impact on our income tax expense. All net operating losses generated in fiscal year 2018 and forward are now indefinite lived as well for U.S. federal income tax purposes. Due to this, we have reduced the deferred tax liability balance on the indefinite lived intangibles. Our effective tax rate is a function of the projected benefit from the decrease in our deferred tax liability over projected pre-tax book losses for the year. In addition, we recorded a small decrease to our tax provision in the quarter related to a decrease in projected future earnings for the year related to our newly formed joint ventures in South Africa. As a result, we have recorded a benefit in the U.S. as well as a small benefit for the decrease in our income tax expense related to our operations in South Africa, for the three months ended March 31, 2019.

Nine months Ended March 31, 2019 Compared to the Nine months Ended March 31, 2018

Revenue for nine months ended March 31, 2019 was $62,877,299 compared to $54,193,682 for the nine months ended March 31, 2018. The $8.7 million increase in revenue is primarily driven by $6.7 million in sales attributed to the recently acquired sorghum operations as well as an increase in sales to the MENA region.

The following table disaggregates our revenue by type of contract. The current period information is presented under both ASC 606 and ASC 605 to provide comparison to the nine months ended March 31, 2018.

We recorded sales of approximately $37.1 million from our distribution and production agreements with DuPont Pioneer during the nine months ended March 31, 2019, which was an increase of $0.3 million from the prior year amount of $36.8 million.

The remaining increase in revenue from the comparable period in the prior year is attributable to $6.7 million of revenue from the recently acquired sorghum operations as well as increases in the MENA region.

Sales into international markets represented 25% and 29% of revenue during the nine months ended March 31, 2019 and 2018, respectively. Domestic revenue accounted for 75% and 71% of our total revenue for the nine months ended March 31, 2019 and 2018, respectively.

Cost of revenue of $47,942,933 for the nine months ended March 31, 2019 was 76.2% of revenue, while the cost of revenue of $40,540,193 for the nine months ended March 31, 2018 was 74.8% of revenue. Cost of revenue increased on a dollar basis primarily due to the increase in revenue discussed above.

Total gross profit margin for the nine months ended March 31, 2019 was 23.8% compared to 25.2% in the nine months ended March 31, 2018. The decrease in gross profit margins was primarily due to product sales mix. The sales pricing under our production agreement expiring in May 2019 is lower in fiscal 2019 than in the prior year.

Selling, General and Administrative ("SG&A") expense for the nine months ended March 31, 2019 totaled $11,840,547 compared to $8,037,202 for the nine months ended March 31, 2018. We incurred non-recurring transactions expenses of $1,142,653 during the nine months ended March 31, 2019 related to the acquisition of Chromatin. Excluding transaction costs from the nine months ended March 31, 2019 and 2018, SG&A expenses increased $2,719,006 from the comparable period of the prior year. The increase in SG&A expense was primarily due to a $1,435,000 increase from the recent Chromatin acquisition, provision for bad debt expense of $337,000, increases in sales and management personnel and related costs of $849,000 as we focus on the anticipated growth in operations in the United States, as well as other operating expenses.

Research and development expenses for the nine months ended March 31, 2019 totaled $4,190,280 compared to $2,662,404 for the nine months ended March 31, 2018. The $1,527,876 increase in research and development expense versus the comparable period of the prior year is driven by additional research and development activities in connection with the recent Chromatin acquisition coupled with additional investment in our programs. We expect our research and development spend for fiscal 2019 to increase as we expand our hybrid sorghum and sunflower programs.

Depreciation and amortization expense for the nine months ended March 31, 2019 was $3,061,771 compared to $2,597,818 for the nine months ended March 31, 2018. Included in the amount was amortization expense for intangible assets, which totaled $1,654,788 for the nine months ended March 31, 2019 and $1,628,026 for the nine months ended March 31, 2018. The $463,953 increase in depreciation and amortization expense over the prior year is primarily driven by additional depreciation and amortization of assets acquired from the recent Chromatin acquisition.

We incurred a foreign currency gain of $53,638 for the nine months ended March 31, 2019 and 5,908 for the nine months ended March 31, 2018. The foreign currency gains and losses are primarily associated with S&W Australia, our wholly-owned subsidiary in Australia as well as our foreign subsidiaries in South Africa and Hungry.

Non-cash amortization of debt discount expense for the nine months ended March 31, 2019 was $238,754 compared to $118,284 for the nine months ended March 31, 2018. The expense in the current period represents the amortization of the debt issuance costs associated with our working capital facilities, our secured property note, and our equipment capital leases. The expense in the comparable period in the prior year primarily represents the amortization of the debt issuance costs associated with our working capital facilities and our secured property note.

Interest expense for the nine months ended March 31, 2019 totaled $2,057,377 compared to $1,244,515 for the nine months ended March 31, 2018. Interest expense for the nine months ended March 31, 2019 primarily consisted of interest incurred on the working capital credit facilities with KeyBank and NAB, the secured property loan entered into in November 2017, and equipment capital leases. Interest expense for the nine months ended March 31, 2018 primarily consisted of interest incurred on the working capital credit facilities with KeyBank and NAB, interest on the note payable issued to DuPont Pioneer which was paid off in November 2017, the secured property loan entered into in November 2017 and equipment capital leases. The $812,862 increase in interest expense for the nine months ended March 31, 2019 is primarily driven by interest on the secured property and equipment loans as well as additional interest on the working capital credit facilities due to increased levels of borrowings and interest rates.

The Company's tax provision or benefit is determined using an estimate of our annual effective tax rate, which is adjusted for discrete items that are taken into account in the relevant period. Income tax benefit totaled $77,878 for the nine months ended March 31, 2019 compared to $48,808 for the nine months ended March 31, 2018. Our effective tax rate was 1.3% during the nine months ended March 31, 2019 compared to 10% for the nine months ended March 31, 2018. The primary driver of the effective tax rate for the nine months ended March 31, 2019 is the full valuation allowance established against our deferred tax assets which was recorded during the fourth quarter of fiscal 2017. Due to the valuation allowance, we do not record the income tax

expense or benefit related to the vast majority of our current year operating results, as such results are generally incorporated in our net operating loss deferred tax asset position, which has a full valuation allowance against it. However, we do record tax expense related to certain other factors occurring throughout the year. For example, we have certain intangible assets with indefinite lives for financial reporting ~~purposes. The write down~~purposes that produce deferred tax liabilities that cannot always be offset with the Company's deferred tax assets. All net operating losses generated subsequent to the passage of ~~these assets cannot be assumed~~tax reform in December 2017 do not expire for US federal tax purposes and thus ~~the~~are indefinite lived as well. Due to this, we have reduced our U.S. federal deferred tax liability ~~created by~~balance on the ~~difference~~indefinite lived intangibles. Our effective tax rate is a function of the projected benefit from the decrease in ~~the basis in these assets for financial reporting and tax purposes cannot be used as a source of taxable income against~~ our deferred tax ~~assets. The increase in~~liability over projected pre-tax book losses for the ~~deferred tax liability due the yearly tax amortization on these intangible assets is~~year. In addition, we recorded ~~as income tax expense. We also analyzed additional information on~~a small impact to our tax return filings in the third quarter of fiscal 2018. To the extent that differences arise from the estimates of tax return filings, these differences are generally recorded in the quarter that they arise and are commonly referred to as provision ~~to return adjustments. Such adjustments~~ related to our ~~Australian tax return filings also generated additional~~newly formed joint ventures in South Africa. As a result, we have recorded a benefit in the U.S. which is offset partially by an income tax expense that we have recorded related to our operations in South Africa, resulting in a small year to date tax benefit for the ~~quarter~~nine months ended March 31, ~~2018.~~2019.

On December 22, 2017, ~~President Trump signed into law~~ the Tax Cuts and Jobs Act (the "Tax Act"). was enacted. The Tax Act ~~reduced~~significantly revises the U.S. corporate income tax by, among other things, lowering the statutory corporate income tax rate ~~from the maximum~~ ("federal ~~statutory rate of~~tax rate") from 35% to 21%~~. The Tax Act states that the 21% corporate tax rate is~~ effective ~~for tax years beginning on or after~~ January 1, ~~2018. However, existing~~2018, implementing a modified territorial tax ~~law, which was not amended under~~system, and imposing a mandatory one-time transition tax on accumulated earnings of foreign subsidiaries.

In December 2017, the Tax Act, governs when a change in tax rate is effective. Existing tax law provides that if the taxable year includes the effective date of any rate change (unless the change is the first date of the taxable year), taxes should be calculated by applying a blended rate to the taxable income for the year. Our blended federal rate is 27.6%. As a result of the new law, we have concluded that our deferred tax assets will need to be revalued. Our deferred tax assets represent a reduction in corporate taxes that are expected to be paid in the future. As a result of the Tax Act, we have estimated a reduction to the value of our deferred tax assets which is almost entirely offset by a reduction to our valuation allowance in the second quarter of the year ending June 30, 2018. The net impact of the decrease to both the deferred tax assetsSecurities and the valuation allowance will be a remeasuring of our net deferred tax liability associated with indefinite lived intangibles for which we cannot predict a reversal into taxable income. In conjunction with the tax law changes, the SECExchange Commission staff issued Staff Accounting Bulletin No. 118 ("SAB 118") ~~to address the application of U.S. GAAP in situations~~, which addresses how a company recognizes provisional estimates when a ~~registrant~~company does not have the necessary information available, prepared or analyzed (including computations) in reasonable detail to complete ~~the~~its accounting for ~~certain~~the effect of the changes in the Tax Act. We applied the guidance in SAB 118 when accounting for the enactment-date effects of the Tax Act in 2018. At June 30, 2018, we had not yet completed our accounting for all of the enactment-date income tax effects of the ~~Tax Act. We have recognized~~Act under ACS 740, Income Taxes, including the ~~provisional tax impacts related to deemed repatriated earnings,~~accounting for the ~~potential impact of new section 162(m) rules on our deferred tax balances, and the revaluation~~following aspects: remeasurement of deferred tax assets and liabilities and ~~included these amounts in~~the one-time transition tax. As of the second quarter of our ~~consolidated financial statements~~fiscal year ending June 30, 2019, we completed our accounting for all of the enactment-date income tax effects of the Act, with no changes to our net deferred tax balances or income tax provision. We had previously calculated a provisional income inclusion of approximately $2.1 million related to the transition tax on accumulated foreign earnings. As of the second quarter of fiscal 2019, we concluded our analysis with respect to the transition tax accounting, recording an income inclusion of approximately $2.0 million. However, due to the Company's valuation allowance, there is no impact to the Company's net deferred tax balance or income tax expense. There was no net impact to our tax balances for the quarter ended March 31, 2018. The ultimate impact, which is expected to be recorded by June 30, 2018, may differ from these provisional amounts, possibly materially, due to, among other things, additional analysis, changes in interpretations and assumptions we have made, additional regulatory guidance that may be issued, and actions we may take as a resultre-measurement of ~~the Tax Act, and the fact that we cannot definitively predict what~~ our deferred tax ~~balance will ultimately be as of June 30, 2018. The Tax Act allows for one hundred percent expensing of~~balances from the ~~cost of qualified property acquired and placed in service after September 27, 2017 and before January 1, 2023. We do not plan~~provisional estimates to ~~take advantage of this provision for~~ the ~~near term and have the option of opting out of this provision. In addition, net operating losses incurred~~final calculations.

in tax years beginning after December 31, 2017 are only allowed to offset a taxpayer's taxable income by eighty percent, but those net operating losses are allowed to be carried forward indefinitely with no expiration. Also, as part of the Tax Act, our net interest expense deductions are limited to 30% of earnings before interest, taxes, depreciation, and amortization through 2021 and of earnings before interest and taxes thereafter. This provision also takes effect for tax years beginning after 2017 and isn't expected to have a material impact to our deferred tax asset position. The Tax Act also ~~incorporates changes to certain international tax provisions. There is~~includes a ~~one-time transition~~Global Intangible Low-Taxed Income ("GILTI") provision that imposes U.S. tax on certain foreign subsidiary income earned by subsidiaries at a rate of 15.5% for cash and cash equivalents and at a rate of 8% for the remainder of the foreign earnings. There is a provision for the current inclusion in US taxable income of global intangible low-tax income and also the imposition of a tax equal to its base erosion minimum tax amount. The new laws incorporate a potential benefit for foreign derived intangible income, but the benefit only applies if the foreign derived sales and services income exceeds a calculated 'routine return' and if we have taxable income. We do not currently anticipate that any of the foreign provisions will have an impact to our tax accounts.

~~Nine Months Ended March 31, 2018 Compared to the Nine Months Ended March 31, 2017~~

Revenue for the nine months ended March 31, 2018 was $54,193,682 compared to $57,487,560 for the nine months ended March 31, 2017. The $3,293,878 decrease in revenue for the nine months ended March 31, 2018 was primarily due to a decrease of sales to the Saudi Arabia markets of approximately $5.4 million. Regulatory uncertainty in Saudi Arabia surrounding water use restrictions for large forage producers caused customers in the ~~region~~year it is earned. Our accounting policy is to defer purchases and/or reduce inventory carrying levels. The outlook for demand for our non-dormant varieties in Saudi Arabia over the next two to four years continues to be uncertain because of the potential for water use restrictions and further regulations from the Saudi Arabian governmenttreat tax on water usage. If there continues to be an absence of demand from our customers in Saudi Arabia, we would experience a material decline in revenue and earnings in the absence of growth in other regions and other products. The decrease in revenue directed to the Saudi Arabia markets was partially offset by an increase in sales to the domestic market.

Sales into international markets represented 29% and 36% of revenue during the nine months ended March 31, 2018 and 2017, respectively. Domestic revenue accounted for 71% and 64% of our total revenue for the nine months ended March 31, 2018 and 2017, respectively. The increase in domestic revenueGILTI as a ~~percentage of total revenue is primarily attributable to reduced sales to customers in Saudi Arabia and timing of shipments to our largest customer Dupont Pioneer.~~

We recorded sales of approximately $36.9 million from our distribution and production agreements with DuPont Pioneer during the nine months ended March 31, 2018, which was an increase of $3.0 million from the prior year amount of $33.9 million. We expect sales to DuPont Pioneer under our distribution agreement will continue to represent a significant portion of our domestic sales, as well as overall sales, for the foreseeable future.

~~The following table shows revenue from external sources by destination country:~~

Cost of revenue of $40,540,193 for the nine months ended March 31, 2018 was 74.8% of revenue, while the cost of revenue of $44,520,476 for the nine months ended March 31, 2017 was 77.4% of revenue. Cost of revenue decreased on a dollar basis primarily due to the decrease in revenue as well as a reduction in product costs.

Total gross profit margin for the nine months ended March 31, 2018 was 25.2% compared to 22.6% in the comparable period of the prior year. The increase in gross profit margins was primarily due to product sales mix during the current period ~~where we had a higher concentration of sales, as a percentage of total revenue, to DuPont Pioneer which are higher margin sales. Additionally, the product costs of proprietary seed are lower~~cost included in ~~the current year due to more favorable production contracts and arrangements.~~

Selling, General and Administrative ("SG&A") expense for the nine months ended March 31, 2018 totaled $8,037,202 compared to $7,767,530 for the nine months ended March 31, 2017. The $269,672 increase in SG&A expense versus the comparable period of the prior year was primarily due to an increase in sales personnel and related costs, as well as an increase in consulting fees of approximately $319,000, partially offset by other expense reductions. As a percentage of revenue, SG&A expenses were 14.8% in the nine months ended March 31, 2018, compared to 13.5% in the nine months ended March 31, 2017.

Research and development expenses for the nine months ended March 31, 2018 totaled $2,662,404 compared to $2,204,625 for the nine months ended March 31, 2017. The $457,779 increase in research and development expense versus the comparable period of the prior year is driven by additional investment in our hybrid sorghum and sunflower programs as well as our stevia program. We expect our research and development spend for fiscal 2018 to total approximately $3.5 million.

Depreciation and amortization expense for the nine months ended March 31, 2018 was $2,597,818 compared to $2,475,710 for the nine months ended March 31, 2017. Included in the amount was amortization expense for intangible assets, which totaled $1,628,026 for the nine months ended March 31, 2018 and $1,667,932 for the nine months ended March 31, 2017. The $122,108 increase in depreciation and amortization expense over the comparable period of the prior year is primarily driven by additional depreciation expense associated with fixed asset additions.

We incurred a foreign currency gain of $5,908 for the nine months ended March 31, 2018 compared to a gain of $4,358 for the nine months ended March 31, 2017. The foreign currency gains and losses are associated with S&W Australia, our wholly-owned subsidiary in Australia.

The derivative warrant liability was considered a level 3 fair value financial instrument and was measured at each reporting period until December 31, 2017 at which time the warrants were reclassified to equity due to the expiration of the down-round price protection provision. We recorded a non-cash change in derivative warrant liability gain of $431,300 in the nine months ended March 31, 2018 compared to a gain of $841,400 in the nine months ended March 31, 2017. The gain represents the decrease in fair value of the outstanding warrants issued in December 2014.

The contingent consideration obligations are considered level 3 fair value financial instruments and will be measured at each reporting period. The $0 and $77,675 charges to non-cash change in contingent consideration obligations expense for the nine months ended March 31, 2018 and 2017, respectively; represents the increase in the estimated fair value of the contingent consideration obligations during that respective period due to the decrease in the present value discount factor used to estimate the fair value of the contingent consideration obligations. The earn-out payment to DuPont Pioneer was finalized in the amount of $2,500,000 and this was added to the Pioneer Note in October 2017.

Loss on equity method investment totaled $0 and $144,841 for the nine months ended March 31, 2018 and 2017, respectively. This represents our 50% share of losses incurred by our joint corporation (S&W Semillas S.A.) in Argentina. Our carrying value in the equity method investee company has been reduced to zero, accordingly, no further losses will be recorded in our consolidated financial statements related to this equity method investment.

~~Non-cash amortization of debt discount expense for the nine months ended March 31, 2018 was $118,284 compared to $1,131,994 for the nine months ended March 31, 2017. The~~tax expense in the current period represents the amortization of the debt issuance costs associated with our KeyBank working capital facility and our secured property and equipment notes with Conterra. The expense in the prior year period represents the amortization of the debt discount, beneficial conversion feature and debt issuance costs associated with the convertible debentures issued December 31, 2014 and the debt issuance costs associated with our KeyBank working capital facility. As of March 1, 2017, the convertible debentures have been fully retired and accordingly, the amortization of debt discount associated with the convertible debentures is complete.

Interest expense during the nine months ended March 31, 2018 totaled $1,244,515 compared to $948,211 for the nine months ended March 31, 2017. Interest expense for the nine months ended March 31, 2018 primarily consisted of interest incurred on the note payable issued to DuPont Pioneer as part of the purchase consideration for the DuPont Pioneer Acquisition, the working capital credit facilities with KeyBank and NAB, and the new secured property and equipment loans entered into in November 2017. Interest expense for the nine months ended March 31, 2017 primarily consisted of interest incurred on the convertible debentures issued on December 31, 2014, on the note payable issued to DuPont Pioneer as part of the purchase consideration for the DuPont Pioneer Acquisition and the working capital credit facilities with KeyBank and NAB. The $296,304 increase in interest expense for the nine months ended March 31, 2018 is primarily driven by $344,878 of interest on the secured property and equipment loans partially offset by a $100,000 reduction in interest expense from the pay-off of the DuPont Pioneer note and a $169,000 reduction in interest expense from the pay-off of the convertible debentures.Provision

Income tax benefit totaled $48,808 for the nine months ended March 31, 2018 compared to $533,414 for the nine months ended March 31, 2017. Our effective tax rate was (10.0%) for the nine months ended March 31, 2018 compared to 42.2% for the nine months ended March 31, 2017. The decrease in our effective tax rate for the nine months ended March 31, 2018 was primarily attributable to the full valuation allowance recorded against substantially all of our deferred tax assets in the fourth quarter of the year ended June 30, 2017. For the nine months ended March 31, 2017 we recorded a benefit associated with the tax losses incurred in that period. However, for the nine months ended March 31, 2018, we have not recorded a benefit related to our losses due to the valuation allowance. The benefit recorded for the nine months ended March 31, 2018 is primarily attributed to additional deferred tax liabilities recorded during the year on indefinite lived intangible assets and the recording of additional tax expense on our prior year Australian tax return, which was filed in the third quarter of fiscal 2018.

Our working capital and working capital requirements fluctuate from quarter to quarter depending on the phase of the growing and sales cycle that falls during a particular quarter. Our need for cash has historically been highest in the second and third fiscal quarters (October through March) because we historically have paid our North American contracted growers progressively, starting in the second fiscal quarter. In fiscal year ~~2017,~~2018, we paid our North American growers approximately 50% of amounts owed to them in October ~~2016~~2017 and the

balance was paid in February ~~2017.~~2018. This payment cycle ~~to our growers~~ is similar in fiscal year ~~2018.~~2019. S&W Australia, our Australian-based subsidiary, has a production cycle that is counter-cyclical to North America; however, this also puts a greater demand on our working capital and working capital requirements during the second, third and fourth fiscal quarters based on timing of payments to growers in the second through fourth quarters.

Historically, due to the concentration of sales to certain distributors, ~~which typically represented a significant percentage of seed sales,~~ our month-to-month and quarter-to-quarter sales and associated cash receipts ~~were~~are highly dependent upon the timing of deliveries to and payments from these distributors, which ~~varied~~varies significantly from year to year. The timing of collection of receivables from DuPont Pioneer, which is our largest customer, is defined in the distribution agreement with DuPont Pioneer and consists of three installment payments, the first on September 15th, the second on January 15th, and the third payment on February 15th. Our future revenue and cash collections pertaining to the distribution agreement with DuPont Pioneer is expected to provide us with greater predictability, as sales to DuPont Pioneer are expected to be primarily concentrated in our second, third and fourth fiscal quarters, and payments will be received in three installments over the September to mid-February time period.

We continuously monitor and evaluate our credit policies with all of our customers based on historical collection experience, current economic and market conditions and a review of the current status of the respective trade accounts receivable balance. Our principal working capital components include cash and cash equivalents, accounts receivable, inventory, prepaid expense and other current assets, accounts payable and our working capital lines of credit.

In addition to funding our business with cash from operations, we have historically relied upon occasional sales of our debt and equity securities and credit facilities from financial institutions, both in the United States and South Australia.

In recent periods, we have consummated the following equity and debt financings:

On December 31, 2014, in connection with the Pioneer Acquisition, we issued a secured promissory note (the "Pioneer Note") payable by us to DuPont Pioneer in the initial principal amount of $10,000,000 (issued at closing), and a potential earn-out payment (payable as an increase in the principal amount of the Pioneer Note) of up to $5,000,000 based on our sales under the distribution and production agreements entered into in connection with the Pioneer Acquisition, as well as other sales of products we consummate containing the acquired germplasm in the three-year period following the closing. The earn-out payment of $2,500,000 to DuPont Pioneer was finalized in October 2017 and this amount was added to the Pioneer Note in October 2017. The Pioneer Note accrued interest at 3% per annum. Interest was payable in three annual installments, in arrears, commencing on December 31, 2015. On December 1, 2017, we repaid the Pioneer Note. The repayment amount included the $2.5 million earn-out payment related to the Pioneer Acquisition that was added to the principal amount of the Pioneer Note in October 2017.

On November 30, 2017, we entered into a secured note financing transaction (the "Loan Transaction") with Conterra ~~Agricultural Capital, LLC ("Conterra")~~ for $12.5 million in gross proceeds. Pursuant to the Loan Transaction, we issued two secured promissory notes (the "Notes") to Conterra as follows:

The Notes and related documents include customary representations and warranties in addition to customary affirmative and negative covenants (including financial covenants), and customary events of default that permit Conterra to accelerate our obligations under the Notes, including, among other things, that a default under one of the Notes would constitute a default under the other Note. On December 1, 2017, we used the proceeds from the Loan Transaction to repay the Pioneer Note.

On August 15, 2018, we closed on a sale and leaseback transaction with American AgCredit involving certain equipment located at our Five Points, California and Nampa, Idaho production facilities. Under the terms of the transaction:

On September 22, 2015, we entered into a credit and security agreement (the "KeyBank Credit Facility") with KeyBank. Key provisions of the KeyBank Credit Facility, as amended, include:

S&W Australia finances the purchase of most of its seed inventory from growers pursuant to a seasonal credit facility with National Australia Bank Ltd ("NAB"). The current facility, referred to as the 2016 NAB Facilities, was amended as of April 13, ~~2017~~2018 and expires on March ~~31,~~30, 2020. As of March 31, ~~2018,~~2019, AUD ~~$7,600,000~~$10,270,000 (USD ~~$5,838,320)~~$7,287,592) was outstanding under the 2016 NAB Facilities.

The 2016 NAB Facilities, as currently in effect, comprises two distinct facility lines: (i) an overdraft facility (the "Overdraft Facility"), having a credit limit of AUD $1,000,000 (USD ~~$768,200~~$709,600 at March 31, ~~2018)~~2019) and a borrowing base facility (the "Borrowing Base Facility"), having a credit limit of AUD $12,000,000 (USD ~~$9,218,400~~$8,515,200 at March 31, ~~2018)~~2019).

The Borrowing Base Facility permits S&W Australia to borrow funds for periods of up to 180 days, at S&W Australia's discretion, provided that the term is consistent with its trading terms. Interest for each drawdown is set at the time of the drawdown as follows: (i) for Australian dollar drawings, based on the Australian Trade Refinance Rate plus 1.5% per annum and (ii) for foreign currency drawings, based on the British Bankers' Association Interest Settlement Rate for the relevant foreign currency for the relevant period, or if such rate is not available, the rate reasonably determined by NAB to be the appropriate equivalent rate, plus 1.5% per annum. As of March 31, ~~2018,~~2019, the Borrowing Base Facility accrued interest on Australian dollar drawings at approximately ~~5.18%~~4.75% per annum calculated daily. The Borrowing Base Facility is secured by a lien on all the present and future rights, property and undertakings of S&W Australia, the mortgage on S&W Australia's Keith, South Australia property and the ~~our~~Company's corporate guarantee (up to a maximum of AUD $15,000,000).

Both facilities constituting the 2016 NAB Facilities are secured by a fixed and floating lien over all the present and future rights, property and undertakings of S&W Australia and are guaranteed by usthe Company as noted above. The 2016 NAB Facilities contain customary representations and warranties, affirmative and negative covenants and customary events of default that permit NAB to accelerate S&W Australia's outstanding obligations, all as set forth in the NAB facility agreements. S&W Australia was in compliance with all NAB debt covenants at March 31, ~~2018.~~2019.

The Keith Building Loan and Keith Machinery and Equipment Facility are used for the construction of a building on S&W Australia's Keith, South Australia property, purchase of adjoining land and for the machinery and equipment for use in the operations of the building. The Keith Building Loan matures on November 30, 2024. The interest rate on the Keith Building Loan varies from pricing period to pricing period (each such period approximately 30 days), based on the weighted average of a specified basket of interest rates ~~(6.15%~~(6.41% as of March 31, ~~2018)~~2019). Interest is payable each month in arrears. The Keith Machinery and Equipment Facility bears interest, payable in arrears, based on the Australian Trade Refinance Rate quoted by NAB at the time of the drawdown, plus 2.9%. The Keith Credit Facilities contain customary representations and warranties, affirmative and negative covenants and customary events of default that permit NAB to accelerate S&W Australia's outstanding obligations, all as set forth in the facility agreement. They are secured by a lien on all the present and future rights, property and undertakings of S&W Australia, ~~our~~the Company's corporate guarantee and a mortgage on S&W Australia's Keith, South Australia property.

On July 19, 2017, we entered into a Securities Purchase Agreement with certain purchasers, pursuant to which we sold and issued an aggregate of 2,685,000 shares of our Common Stock at a purchase price of $4.00 per share, for aggregate gross proceeds of $10.74 million.

On October 11, 2017, we entered into a Securities Purchase Agreement with Mark W. Wong, our President and Chief Executive Officer, pursuant to which we sold and issued an aggregate of 75,000 shares of our Common Stock at a purchase price of $3.50 per share, for aggregate gross proceeds of $262,500.

On December 22, 2017, we completed the closing of our rights offering of 3,500,000 shares of our Common Stock. At the closing, we sold and issued an aggregate of 2,594,923 shares of our Common Stock at a subscription price of $3.50 per share (the "Subscription Price"). Pursuant to a backstop commitment with MFP Partners, L.P. ("MFP"), concurrently with the closing of rights offering, we sold and issued the remaining 905,077 shares of our Common Stock not purchased in the rights offering to MFP at the subscription price of $3.50 per share. Combined, we sold and issued an aggregate of 3,500,000 shares of our common stock for aggregate gross proceeds of $12.25 million.

On September 5, 2018, we entered into a Securities Purchase Agreement (the "2018 Securities Purchase Agreement") withMFP, pursuant to which we sold 1,607,717 shares of our common stock to MFP at a purchase price of $3.11 per share at an initial closing held on September 5, 2018, for gross proceeds of approximately $5.0 million.

On October 23, 2018, we completed the second closing under the 2018 Securities Purchase Agreement with MFP. At the second closing, we issued to MFP 7,235 shares of a newly designated Series A Convertible Preferred Stock (the "Preferred Shares") at a purchase price of $3,110 per share, for aggregate gross proceeds of approximately $22.5 million. The Preferred Shares carried no voting rights and were automatically convertible into shares of our common stock at the rate of 1,000 shares of common stock per Preferred Share upon the approval of the Company's stockholders for the issuance of the requisite shares of common stock. Pursuant to the 2018 Securities Purchase Agreement, we agreed to use reasonable best efforts to solicit the approval of our shareholders for the issuance of stock upon the conversion of the Preferred Shares at a special meeting of shareholders, and at each annual meeting of shareholders thereafter, if necessary. Approval was obtained at a Special Meeting of Stockholders on November 20, 2018, and the Preferred Shares were converted to 7,235,000 shares of our common stock on that same day.

The following table shows a summary of our cash flows for the nine months ended March 31, ~~2018~~2019 and ~~2017:~~2018:

		Nine Months Ended				Nine Months Ended
		March 31,				March 31,
		2018		2017		2019		2018
Cash flows from operating activities	$	(16,377,979)	$	(16,985,511)	$	(18,769,238)	$	(16,377,979)
Cash flows from investing activities		(1,016,188)		(1,736,614)		(26,811,172)		(1,016,188)
Cash flows from financing activities		19,589,436		14,979,288		44,329,817		19,589,436
Effect of exchange rate changes on cash		48,122		158,996		(186,802)		48,122
Net increase (decrease) in cash and cash equivalents		2,243,391		(3,583,841)
Net (decrease) increase in cash and cash equivalents						(1,437,395)		2,243,391
Cash and cash equivalents, beginning of period		745,001		6,904,500		4,320,894		745,001
Cash and cash equivalents, end of period	$	2,988,392	$	3,320,659	$	2,883,499	$	2,988,392

For the nine months ended March 31, 2019, operating activities used $18,769,238 in cash. Net loss plus and minus the adjustments for non-cash items as detailed on the statement of cash flows used $2,205,756 in cash, and changes in operating assets and liabilities as detailed on the statement of cash flows used $16,563,482 in cash. The decrease in cash from changes in operating assets and liabilities was primarily driven by increases in inventories of $20,442,220, increases in unbilled accounts receivable of $4,258,450, partially offset by an increase in accounts payable of $6,569,031 and a decrease in accounts receivable of $1,584,152.

For the nine months ended March 31, 2018, operating activities used $16,377,979 in cash. Net loss plus and minus the adjustments for non-cash items as detailed on the statement of cash flows provided $2,577,222 in cash, and changes in operating assets and liabilities as detailed on the statement of cash flows used $18,955,201 in cash. The decrease in cash from changes in operating assets and liabilities was primarily driven by increases in inventory of $32,191,993, ~~due to timing of the US harvest and an increase in production,~~ partially offset by an increase in accounts payable of $5,236,255.

Investing activities during the nine months ended March 31, ~~2017, operating activities~~2019 used $16,985,511 in cash. Net loss plus and minus the adjustments for non-cash items as detailed on the statement of cash flows provided $3,171,661 in cash, and changes in operating assets and liabilities as detailed on the statement of cash flows used $20,157,172$26,811,172 in cash. The ~~decrease~~Chromatin Acquisition accounted for $26,354,951 of the cash used in ~~cash from changes~~investing activities. We also had additions to property, plant and equipment of $836,983 consisting primarily of equipment purchases for our facility in ~~operating assets~~Keith, Australia and ~~liabilities was primarily driven by an increase~~replacements of our vehicle fleet in ~~inventories of $15,972,829 and a decrease in accounts payable (including related parties) of $7,642,270 partially offset by a decrease in accounts receivable of $4,481,129.~~

Investing activities during the nine months ended March 31, 2018 used $1,016,188 in cash. These activities consisted primarily of additions to a build out of a new research and development facility in Nampa, Idaho.

Financing activities during the nine months ended March 31, ~~2017 used $1,736,614~~2019 provided $44,329,817 in cash. ~~These activities consisted primarily~~During the nine months ended March 31, 2019, we completed a private placement of ~~additions to~~common stock which raised net proceeds of $4,927,682 in cash and a ~~build out~~private placement of preferred stock which raised net proceeds of $22,373,842. During the nine months ended March 31, 2019, we also had net borrowings on the working capital lines of credit of $17,768,886. On August 15, 2018, we closed on a ~~new research~~sale and ~~development facility in~~leaseback transaction involving certain equipment located at our Five Points, California and Nampa, Idaho ~~and investment~~production facilities. Under the terms of the transaction, we sold the equipment for $2,106,395 million in ~~internal use software.~~proceeds. The proceeds were used to pay off in full the Secured Equipment Note mentioned above.

Financing activities during the nine months ended March 31, 2018 provided $19,589,436 in cash. We completed two separate private placements of common stock during the nine months ended March 31, 2018 which raised net proceeds of $10.7 million in cash. In December 2017, we also completed the closing of our rights offering and backstop commitment with MFP. Pursuant to the rights offering and backstop commitment with MFP, we sold and issued an aggregate of 3,500,000 shares of our common stock in December 2017 for aggregate net proceeds of $11.8 million. On November 30, 2017, we entered into a secured note financing transaction for $12.5 million in gross proceeds. The proceeds from the secured note financing were used to repay the Pioneer Note. The repayment amount included the $2.5 million earn-out payment related to the Pioneer Acquisition that was added to the principal amount of the Pioneer Note in October 2017.

Financing activities during the nine months ended March 31, 2017 provided $14,979,288 in cash. We had net borrowings of $19.3 million on our lines of credit and made $4.7 million of redemptions on our convertible debentures. We also generated $0.6 million in net proceeds from the exercise of stock options during the nine months ended March 31, 2017.

We do not believe that inflation has had a material effect on our business, financial condition or results of operations, including our revenue and income from continuing operations. However, if our costs were to become subject to significant inflationary pressures, we may not be able to fully offset such higher costs through price increases. Our inability or failure to do so could harm our business, financial condition and results of operations.

We did not have any off-balance sheet arrangements during the three and nine months ended March 31, ~~2018.~~2019.

Our future liquidity and capital requirements will be influenced by numerous factors, including:

The accounting policies and the use of accounting estimates are set forth in the footnotes to our consolidated financial statements.

In preparing our financial statements, we must select and apply various accounting policies. Our most significant policies are described in Note 2 - Summary of Significant Accounting Policies of the footnotes to the consolidated financial statements. In order to apply our accounting policies, we often need to make estimates based on judgments about future events. In making such estimates, we rely on historical experience, market and other conditions, and on assumptions that we believe to be reasonable. However, the estimation process is by its nature uncertain given that estimates depend on events over which we may not have control. If market and other conditions change from those that we anticipate, our results of operations, financial condition and changes in financial condition may be materially affected. In addition, if our assumptions change, we may need to revise our estimates, or to take other corrective actions, either of which may also have a material effect on our results of operations, financial condition or changes in financial condition. Members of our senior management have discussed the development and selection of our critical accounting estimates, and our disclosure regarding them, with the audit committee of our board of directors, and do so on a regular basis.

We believe that the following estimates have a higher degree of inherent uncertainty and require our most significant judgments. In addition, had we used estimates different from any of these, our results of operations, financial condition or changes in financial condition for the current period could have been materially different from those presented.

We adopted the provisions of ASC Topic 606,Revenue from Contracts with Customers("Topic 606") as of July 1, 2018. Prior to the adoption of Topic 606, we had recognized revenue from product sales primarily when product was shipped. However, Topic 606 requires that companies evaluate their contracts with customers to determine whether any of three criteria is met with relation to an obligation to transfer goods or services to the customer. If so, revenue is recognized over time, generally during performance of the service or production of the goods, rather than only upon completion of the service or delivery of the goods. One criterion that requires recognition of revenue over time is met if i) the vendor's performance does not create an asset with an alternative use to the vendor, and ii) the customer does not have the ability to cancel its order without payment to the vendor for all work performed.

We have determined that our production and distribution agreements with Pioneer meet this criterion. Once Pioneer submits a demand plan for a particular growing season, we are required to use commercially reasonable efforts to arrange for the requested quantity of seed to be produced, and we are not permitted to sell the ordered seed to other customers. In addition, once Pioneer submits a demand plan, Pioneer cannot cancel or reduce the amount of seed that it is obligated to purchase under the contracts and must pay us for the requested quantity as long as we comply with the contracts. Therefore, the seed produced to meet Pioneer's demand plan has no alternative use to us, and Pioneer has an obligation to pay us for all seed ordered. As such, we began recognizing revenue under the Pioneer agreement over time as of July 1, 2018. This requires us to estimate our progress toward satisfying our obligation to produce and deliver seed to Pioneer. We have concluded that cost is the best measure of progress under the Pioneer contract because no other measure adequately reflects the value added to the product by each of our major tasks - having the crop grown, processing, and packaging. As we contract out the growing of seed to third parties, the vast majority of our costs under these agreements are incurred, and therefore the vast majority of the revenue from such agreements is recognized, when the raw seed is purchased from the third-party contract growers. The rest of the costs are incurred, and therefore the rest of the revenue is recognized, as we process and package the product. Changes in estimates of costs to process and package seed, as well as changes in the timing of purchase of raw seed from third-party growers, could result in significant changes to the timing of revenue recognition, although they will not alter the total amount of revenue recognized under the contract in a growing season.

All amortizable intangible assets are assessed for impairment whenever events indicate a possible loss. Such an assessment involves estimating undiscounted cash flows over the remaining useful life of the intangible. If the review indicates that undiscounted cash flows are less than the recorded value of the intangible asset, the carrying amount of the intangible is reduced by the estimated cash-flow shortfall on a discounted basis, and a corresponding loss is charged to the consolidated statement of operations. Significant changes in key assumptions about the business, market conditions and prospects for which the intangible asset is currently utilized or expected to be utilized could result in an impairment charge.

We account for stock-based compensation in accordance with FASB Accounting Standards Codification Topic 718 Stock Compensation, which establishes accounting for equity instruments exchanged for employee services. Under such provisions, stock-based compensation cost is measured at the grant date, based on the calculated fair value of the award, and is recognized as an expense, under the straight-line method, over the employee's requisite service period (generally the vesting period of the equity grant).

We account for equity instruments, including stock options issued to non-employees, in accordance with authoritative guidance for equity-based payments to non-employees (FASB ASC ~~505-50)~~505- 50). Stock options issued to non-employees are accounted for at their estimated fair value. The fair value of options granted to non-employees is re-measured as they vest.

We utilize the Black-Scholes-Merton option pricing model to estimate the fair value of options granted under share-based compensation plans. The Black-Scholes-Merton model requires us to estimate a variety of factors including, but not limited to, the expected term of the award, stock price volatility, dividend rate, risk-free interest rate. The input factors to use in the valuation model are based on subjective future expectations combined with management judgment. The expected term used represents the weighted-average period that the stock options are expected to be outstanding. We have used the historical volatility for our stock for the expected volatility assumption required in the model, as it is more representative of future stock price trends. We use a ~~risk-free~~risk- free interest rate that is based on the implied yield available on U.S. Treasury issued with an equivalent remaining term at the time of grant. We have not paid dividends in the past and currently do not plan to pay any dividends in the foreseeable future, and as such, dividend yield is assumed to be zero for the purposes of valuing the stock options granted. We evaluate the assumptions used to value stock awards on a quarterly basis. If factors change, and we employ different assumptions, share-based compensation expense may differ significantly from what we have recorded in the past. When there are any modifications or cancellations of the underlying unvested securities, we may be required to accelerate, increase or cancel any remaining unearned share-based compensation expense. To the extent that we grant additional equity securities to employees, our share-based compensation expense will be increased by the additional unearned compensation resulting from those additional grants.

We regularly assess the likelihood that deferred tax assets will be recovered from future taxable income. To the extent management believes that it is more likely than not that a deferred tax asset will not be realized, a valuation allowance is established. When a valuation allowance is established or increased, an income tax charge is included in the consolidated financial statements and net deferred tax assets are adjusted accordingly. Changes in tax laws, statutory tax rates and estimates of our future taxable income levels could result in actual realization of the deferred tax assets being materially different from the amounts provided for in the consolidated financial statements. If the actual recovery amount of the deferred tax asset is less than anticipated, we would be required to write-off the remaining deferred tax asset and increase the tax provision, resulting in a reduction of earnings and stockholders' equity.

All inventories are accounted for on a lower of cost or net realizable value. Inventories consist of raw materials and finished goods. Depending on market conditions, the actual amount received on sale could differ from our estimated value of inventory. In order to determine the value of inventory at the balance sheet date, we evaluate a number of factors to determine the adequacy of provisions for inventory. The factors include the age of inventory, the amount of inventory held by type, future demand for products and the expected future selling price we expect to realize by selling the inventory. Our estimates are judgmental in nature and are made at a point in time, using available information, expected business plans and expected market conditions. We perform a review of our inventory by product line on a quarterly basis.

Our subsidiary, S&W Australia, does not fix the final price for seed payable to its growers until the completion of a given year's sales cycle pursuant to its standard contract production agreement. We record an estimated unit price accordingly, inventory, cost of revenue and gross profits are based upon management's best estimate of the final purchase price to our S&W Australia growers. To the extent the estimated purchase price varies from the final purchase price for seed, the adjustment to actual could materially impact the results in the period

when the difference between estimates and actuals are identified. If the actual purchase price is in excess of our estimated purchase price, this would negatively impact our financial results including a reduction in gross profits and earnings.

We regularly assess the collectability of receivables and provide an allowance for doubtful trade receivables equal to the estimated uncollectible amounts. That estimate is based on historical collection experience, current economic and market conditions and a review of the current status of each customer's trade accounts receivable.Our estimates are judgmental in nature and are made at a point in time. Management believes the allowance for doubtful accounts is appropriate to cover anticipated losses in our accounts receivable under current conditions; however, unexpected, significant deterioration in any of the factors mentioned above or in general economic conditions could materially change these expectations.

We are a smaller reporting company and, therefore, we are not required to provide information required by this item of Form 10-Q.

Our management, with the participation of our Principal Executive Officer and our Principal Financial Officer, evaluated the effectiveness of our disclosure controls and procedures as of March 31, ~~2018~~2019 (the "Evaluation Date"). The term "disclosure controls and procedures," as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, means controls and other procedures of a company that are designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time periods specified in the SEC's rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by a company in the reports that it files or submits under the Exchange Act is accumulated and communicated to the company's management, including its principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure. Management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving their objectives and management necessarily applies its judgment in evaluating the cost-benefit relationship of possible controls and procedures. Based on the evaluation of our disclosure controls and procedures as of March 31, ~~2018,~~2019, our Principal Executive Officer and Principal Financial Officer concluded that, as of such date, our disclosure controls and procedures were effective at the reasonable assurance level.

There have been no ~~significant~~ changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) or in other factors that occurred during the period of our evaluation that have significantly affected, or are reasonably likely to significantly affect, our internal control over financial reporting.

You should carefully consider the factors discussed in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended June 30, ~~2017,~~2018, which could materially affect our business, financial condition, cash flows or future results. Except for the risk factors set forth below, there have been no material changes in our risk factors included in our Annual Report on Form 10-K for the fiscal year ended June 30, ~~2017.~~2018. The risks described in this Quarterly Report on Form 10-Q and in our Annual Report on Form 10-K for the fiscal year ended June 30, ~~2017~~2018 are not the only risks facing our company. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial also may materially adversely affect our business, financial condition or future results.

~~DuPont Pioneer~~Raising additional capital may ~~purchase alfalfa seed from~~cause dilution to our stockholders or restrict our operations.

From time to time, we expect to finance our cash needs through a combination of equity and debt financings, as well as potentially entering into collaborations, strategic alliances and licensing arrangements. To the extent that we raise additional capital through the sale of equity or convertible debt securities, your ownership interest could be diluted and the terms of these securities may include liquidation or other ~~sources~~preferences that adversely affect your rights as a common stockholder. Debt financing may involve agreements that include covenants limiting or restricting our ability to take specific actions, such as incurring additional debt, making capital expenditures or declaring dividends and ~~reduce its purchase commitments~~may be secured by all or a portion of our assets.

For example, on September 5, 2018, we entered into the September SPA with MFP, pursuant to ~~us.~~

Under our distribution agreement with DuPont Pioneer, DuPont Pioneer has made minimum purchase commitments for our dormant alfalfa seed products that extend through September 30, 2024. However, there are circumstances under which DuPont Pioneer is permitted to purchase seed from other sources and reduce its purchase commitments to us, including:

We are committed to sell dormant alfalfa seed to DuPont Pioneer at initial fixed prices with fixed subsequent maximum price increases per year. Increases in our costs of production at rates higher than our contractual ability to increase prices would erode our profit margins and couldcannot guarantee that the Chromatin Acquisition will yield the results we have ~~a material adverse effect on our results of operations.~~

Under our distribution agreement with DuPont Pioneer, we were committed to sell dormant alfalfa seed at prices that can only increase by up to a fixed percentage per year by variety. Although DuPont Pioneer has agreed to discuss in good faith an increase in the fixed maximum percentage price increase cap for any sales year in which an increase in grower compensation costs due to changes in market conditions cause our total production costs to increase at a percentage exceeding the amount of the cap, we cannot be certain that any such discussions will result in additional pricing flexibility for us. If our grower compensation costs or other productions costs increase at a rate greater than the fixed maximum percentage increase per year, our profit margins would erode, and we could potentially be required to sell product at a loss. Any such change in our cost structure would have a material adverse effect on our results of operations.

If we fail to perform our obligations under our distribution agreement with DuPont Pioneer, DuPont Pioneer could terminate the agreement and reduce or eliminate purchases of alfalfa seed from us, and we could be exposed to claims for damages.

The DuPont Pioneer distribution agreement imposes numerous obligations on us relating to, among other things, product and service quality and compliance with laws and third party obligations. The distribution agreement permits DuPont Pioneer to terminate the agreement if we materially breach the agreement and fail to cure the breach within a 60-day notice period, or in the case of certain bankruptcy or insolvency events. If DuPont Pioneer terminates the distribution agreement, DuPont Pioneer could reduce or eliminate altogether its purchase of alfalfa seed from us, and we could be left with inventory of seed that it would be difficult or impossible for us to dispose of on commercially reasonable terms.anticipated. In addition, there can be no assurance that we will achieve the revenues, growth prospects and synergies expected from this acquisition, our prior acquisitions or any future acquisitions, or that we will achieve such revenue, growth prospects and synergies in a manner consistent with our expectations. Our failure to do so could ~~be exposed to significant claims for damages to DuPont Pioneer if the termination of an agreement~~adversely affect our business, operating results ~~from our material breach of the agreement.~~and financial condition.

~~None.~~At March 31, 2019, we were not in compliance with the fixed charge coverage ratio covenant under our KeyBank Credit Facility. However, we subsequently obtained a waiver from KeyBank, curing the failure to comply with this debt covenant for the fiscal quarter ended March 31, 2019. For more information regarding this default and this waiver, see Note 7 to the consolidated financial statements "Debt" included elsewhere in this Quarterly Report on Form 10-Q.

101.INS		XBRL Instance Document
101.SCH		XBRL Taxonomy Extension Schema Document
101.CAL		XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		XBRL Taxonomy Extension Label Linkbase Document
101.PRE		XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		XBRL Taxonomy Extension Definition Linkbase Document

** This certification accompanies the Quarterly Report on Form 10-Q to which it relates, is not deemed filed with the Securities and Exchange Commission and is not to be incorporated by reference into any filing of Registrant under the Securities Act of 1933, as amended, or the Securities Exchange Act of 1934, as amended (whether made before or after the date of the Form 10-Q), irrespective of any general incorporation language contained in such filing.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly ~~authorized, on the 10th day of May, 2018.~~authorized.

	S&W SEED COMPANY

Date: May 9, 2019	By: /s/ Matthew K. Szot
~~Matthew K. Szot~~
Executive Vice President of Finance and Administration and Chief Financial Officer ~~(duly authorized on~~ (On behalf of the registrant ~~and~~in his capacity ~~principal financial~~as Principal Financial and ~~accounting officer)~~Accounting Officer)

	Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.001 per share	SANW	The Nasdaq Capital Market

PART I. FINANCIAL INFORMATION	Page No.

Item 1. Financial Statements (Unaudited):

Consolidated Balance Sheets at March 31, ~~2018~~2019 and June 30, ~~2017~~2018	4

Consolidated Statements of Operations for the Three and Nine Months Ended March 31, ~~2018~~2019 and ~~2017~~2018	5

Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended March 31, ~~2018~~2019 and ~~2017~~2018	6

Consolidated Statements of Stockholders' Equity for the Three and Nine Months Ended March 31, ~~2018~~2019 and ~~2017~~2018	7

Consolidated Statements of Cash Flows for the Nine Months Ended March 31, ~~2018~~2019 and ~~2017~~2018	8

Notes to Consolidated Financial Statements	9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations	3537

Item 3. Quantitative and Qualitative Disclosures About Market Risk	5758

Item 4. Controls and Procedures	5758

PART II. OTHER INFORMATION

Item 1. Legal Proceedings	5859

Item 1A. Risk Factors	5859

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds	5860

Item 3. Defaults Upon Senior Securities	5860

Item 4. Mine Safety Disclosures	5860

Item 5. Other Information	5860

Item 6. Exhibits	5961

		Three Months Ended						Nine Months Ended
		March 31,						March 31,
		2019				2018		2019				2018
		ASC 606		ASC 605		ASC 605		ASC 606		ASC 605		ASC 605
Distribution and production agreements - Pioneer	$	7,868,654	$	12,495,081	$	18,688,623	$	37,054,268	$	30,630,207	$	36,790,423
Other product sales		10,225,275		10,225,275		4,215,599		25,497,136		25,497,136		16,768,880
Services		82,237		82,237		44,948		325,895		325,895		634,379
	$	18,176,166	$	22,802,593	$	22,949,170	$	62,877,299	$	56,453,238	$	54,193,682

	Estimated Useful Life (Years)		Estimated Fair Value

In-process research and development	n/a	$	380,000
Technology/IP - germplasm	30		7,200,000
Trade names	5		150,000
Total identifiable intangible assets		$	7,730,000

			Exercise Price	Expiration	Outstanding as			Outstanding as
	Issue Date		Per Share	Date	of June 30, 2016	New Issuances	Expired	of June 30, 2017

Underwriter warrants	May 2012	$	6.88	Feb 2017	50,000	-	(50,000)	-
Warrants	Dec 2014	$	4.53	Jun 2020	2,699,999	-	-	2,699,999
					2,749,999	-	(50,000)	2,699,999

		Three Months Ended March 31,						Nine Months Ended March 31,
		2018			2017			2018			2017
United States	$	19,258,699	84%	$	16,850,655	80%	$	38,523,953	71%	$	36,633,044	64%
Mexico		301,390	1%		549,420	3%		4,682,016	9%		4,294,447	7%
Argentina		7,630	0%		316,046	2%		2,750,249	5%		2,881,050	5%
Australia		750,762	3%		291,405	1%		1,309,105	2%		1,082,041	2%
Peru		427,358	2%		297,438	1%		1,035,770	2%		821,213	1%
Saudi Arabia		-	0%		1,051,593	5%		844,908	2%		6,273,365	11%
China		374,824	2%		790,486	4%		748,748	1%		889,834	2%
South Africa		251,116	1%		278,737	1%		718,458	1%		915,607	2%
Algeria		308,700	1%		330	0%		308,700	1%		562,778	1%
Egypt		284,760	1%		394,560	2%		284,760	1%		677,520	1%
Other		983,931	5%		191,573	1%		2,987,015	5%		2,456,661	4%
Total	$	22,949,170	100%	$	21,012,243	100%	$	54,193,682	100%	$	57,487,560	100%

		Fair Value Measurements as of March 31, 2018 Using:
		Level 1		Level 2		Level 3
Foreign exchange contract liability	$	-	$	22,449	$	-
Contingent consideration obligations		-		-		-
Total	$	-	$	22,449	$	-


		Fair Value Measurements as of June 30, 2017 Using:
		Level 1		Level 2		Level 3
Foreign exchange contract asset	$	-	$	166,629	$	-
Contingent consideration obligations		-		-		2,500,000
Derivative warrant liabilities		-		-		2,836,600
Total	$	-	$	166,629	$	5,336,600

		October 25,
		2018

Cash	$	95,049
Accounts receivable		947,015
Inventory		6,959,936
Prepaid expenses		16,501
Property, plant and equipment		10,193,620
Assets held for sale		1,930,400
In-process research and development		380,000
Technology/IP - germplasm		7,200,000
Trade names		150,000
Goodwill		1,573,546
Current liabilities		(2,881,198)
Noncurrent liabilities		(114,869)
Total acquisition cost allocated	$	(26,450,000)

Land and improvements	$	320,000
Buildings and improvements		1,380,000
Machinery and equipment		332,000
Less: Costs to sell		(101,600)
Assets held for sale	$	1,930,400

		Nine Months Ended
		March 31,
(unaudited)		2019		2018
Revenue	$	64,550,476	$	66,955,581
Net loss	$	(7,961,082)	$	(8,100,766)

Exhibit No.		Description
~~3.1(1)~~3.1⁽¹⁾		Registrant's Articles of ~~Incorporation.~~Incorporation
~~3.2(2)~~3.2⁽²⁾		Certificate of Designation of Preferences, Rights and Limitations of Series A Convertible Preferred Stock
3.3⁽³⁾		Registrant's ~~Second~~ Amended and Restated ~~Bylaws.~~Bylaws, together with Amendments One, Two and Three thereto
4.1		Reference is made to Exhibits 3.1, 3.2 and ~~3.2.~~3.3
~~4.2(3)~~4.2⁽⁴⁾		Form of Common Stock Certificate.
~~4.3(4)~~4.3⁽⁵⁾		Form of Common Stock Purchase ~~Warrant.~~Warrant
10.1⁽⁶⁾*		~~Fifth Amendment to Credit~~S&W Seed Company 2019 Equity Incentive Plan (the "Plan").
10.2⁽⁷⁾*		Form of Stock Option Grant Notice, Option Agreement and ~~Security~~Notice of Exercise under the Plan.
10.3⁽⁸⁾*		Form of Restricted Stock Unit Grant Notice and Restricted Stock Unit Agreement under the Plan.
10.4*		Employment Agreement between the Registrant and ~~KeyBank, dated March 14, 2018.~~
~~10.2~~		~~Business Letter of Advice for S&W Seed Company Pty Ltd from National Australia Bank Ltd,~~Matthew K. Szot, dated April ~~13, 2018.~~24, 2019.
31.1		Certification of Chief Executive Officer Pursuant to Rule 13-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
31.2		Certification of Chief Financial Officer Pursuant to Rule 13-14(a) of the Securities Exchange Act of 1934 as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
~~32.1~~32.1**		Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
~~32.2~~32.2**		Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002