Nevada | 86-1005291 | |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
80 Eighth Avenue | ||
New York, New York | 10011 | |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading symbols(s) | Name of each exchange on which registered | ||
None | None | None |
Large accelerated filer ☐ | Accelerated filer | ☐ |
Non-accelerated filer ☐ | Smaller reporting company | ☒ |
Emerging growth company | ☐ |
Page | |||
3 | |||
Item 1. | 3 | ||
3 | |||
4 | |||
5 | |||
6 | |||
7 | |||
Item 2. | |||
Item 4. | |||
Item 1. | |||
Item 1A. | |||
Item 2. | |||
Item 6. | |||
ITEM 1. | FINANCIAL STATEMENTS |
(Unaudited) December 31, 2021 | September 30, 2021 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 5,186 | $ | 6,234 | ||||
Accounts receivable, net of allowance for doubtful accounts of $945 and $812, respectively | 57,161 | 52,312 | ||||||
Inventory, net | 3,521 | 3,227 | ||||||
Prepaid expenses and other current assets | 2,318 | 3,002 | ||||||
Total current assets | 68,186 | 64,775 | ||||||
Property and Equipment, net | 5,038 | 4,977 | ||||||
Other Assets: | ||||||||
Intangible assets, net | 23,664 | 24,173 | ||||||
Goodwill | 18,486 | 18,486 | ||||||
Operating lease right of use asset | 6,353 | 2,936 | ||||||
Security deposits and other long-term assets | 510 | 577 | ||||||
Total other assets | 49,013 | 46,172 | ||||||
Total assets | $ | 122,237 | $ | 115,924 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Line of credit | $ | 23,842 | $ | 29,637 | ||||
Accounts payable – trade | 45,851 | 37,243 | ||||||
Accrued expenses and other current liabilities | 4,886 | 6,311 | ||||||
Dividends payable | 2,638 | 2,427 | ||||||
Current portion of earnout | 1,054 | 1,054 | ||||||
Current portion of deferred acquisition payments | 190 | 188 | ||||||
Current portion of subordinated promissory note-related party | 500 | 550 | ||||||
Current portion of long-term debt | 872 | 868 | ||||||
Current portion of operating lease liabilities | 1,797 | 1,281 | ||||||
Total current liabilities | 81,630 | 79,559 | ||||||
Other Liabilities: | ||||||||
Long-term debt | 4,450 | 4,744 | ||||||
Long-term portion of earnout | 2,546 | 2,546 | ||||||
Subordinated promissory notes-related party | 5,404 | 5,525 | ||||||
Long-term portion of deferred acquisition payments | 185 | 183 | ||||||
Mandatorily redeemable non-controlling interest | 841 | 783 | ||||||
Deferred income taxes | 2,432 | 2,299 | ||||||
Long-term operating lease liabilities | 4,708 | 1,751 | ||||||
Other liabilities | 331 | 415 | ||||||
Total other liabilities | 20,897 | 18,246 | ||||||
Total liabilities | 102,527 | 97,805 | ||||||
Stockholders' Equity: | ||||||||
Preferred Stock, $0.001 par value; 100,000 shares authorized | ||||||||
Series B 5,700 shares authorized, 31 shares issued and outstanding | 0 | 0 | ||||||
Series C 30,000 shares authorized and 20,960 shares issued and 20,960 outstanding at December 31, 2021 and September 30, 2021, liquidation value of $13,118 and $12,907 at December 31, 2021 and September 30, 2021, respectively | 0 | 0 | ||||||
Common stock, $0.001 par value; 4,500,000 shares authorized, 979,707 issued and 959,707 outstanding as of December 31, 2021 and 962,207 issued and 942,207 outstanding as of September 30, 2021 | 1 | 1 | ||||||
Paid-in capital | 14,741 | 14,838 | ||||||
Common Treasury stock, at cost, 20,000 shares | (240 | ) | (240 | ) | ||||
Accumulated earnings | 5,208 | 3,520 | ||||||
Total stockholders' equity | 19,710 | 18,119 | ||||||
Total liabilities and stockholders' equity | $ | 122,237 | $ | 115,924 |
March 31, 2021 | September 30, 2020 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 3,509 | $ | 3,349 | ||||
Accounts receivable, net of allowance for doubtful accounts | 24,310 | 20,245 | ||||||
Inventory, net | 3,689 | 3,666 | ||||||
Prepaid expenses and other assets | 446 | 433 | ||||||
Total current assets | 31,954 | 27,693 | ||||||
Property and Equipment, net | 4,965 | 4,977 | ||||||
Other Assets: | ||||||||
Intangible assets, net | 14,750 | 13,333 | ||||||
Goodwill | 15,955 | 14,146 | ||||||
Operating lease right of use asset | 2,456 | 2,621 | ||||||
Security deposits and other long-term assets | 301 | 265 | ||||||
Total other assets | 33,462 | 30,365 | ||||||
Total assets | $ | 70,381 | $ | 63,035 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
Current Liabilities: | ||||||||
Line of credit | $ | 11,561 | $ | 8,447 | ||||
Accounts payable – trade | 22,772 | 20,769 | ||||||
Accrued expenses and other current liabilities | 3,241 | 3,007 | ||||||
Dividends payable | 2,030 | 1,661 | ||||||
Current portion of Paycheck Protection Program (PPP) loan | 1,068 | 1,913 | ||||||
Current portion of deferred acquisition payments | 176 | 178 | ||||||
Current portion of subordinated promissory note-related party | 1,145 | 504 | ||||||
Current portion of long-term debt | 866 | 866 | ||||||
Current portion of operating lease liabilities | 809 | 720 | ||||||
Total current liabilities | 43,668 | 38,065 | ||||||
Other Liabilities: | ||||||||
Long-term debt | 5,947 | 6,432 | ||||||
Long-term portion of Paycheck Protection Program (PPP) loan | 1,683 | 960 | ||||||
Subordinated promissory notes-related party | 934 | 39 | ||||||
Long-term portion of deferred acquisition payments | 374 | 372 | ||||||
Mandatorily redeemable non-controlling interest | 690 | 604 | ||||||
Deferred income taxes | 1,822 | 1,569 | ||||||
Long-term operating lease liabilities | 1,671 | 1,924 | ||||||
Other liabilities | 385 | 388 | ||||||
Total other liabilities | 13,506 | 12,288 | ||||||
Total liabilities | 57,174 | 50,353 | ||||||
Stockholders' Equity: | ||||||||
Preferred Stock, $0.001 par value; 100,000 shares authorized | ||||||||
Series B 5,700 shares authorized, 31 shares issued and outstanding | — | — | ||||||
Series C 20,000 shares authorized and 20,000 shares issued and 19,760 outstanding at March 31, 2021 and September 30, 2020, liquidation value of $11,911 and $11,541 at March 31, 2021 and September 30, 2020, respectively | — | — | ||||||
Common stock, $0.001 par value; 4,500,000 shares authorized, 921,154 issued and 901,154 outstanding as of March 31, 2021 and 918,652 issued and 898,652 outstanding as of September 30, 2020 | 1 | 1 | ||||||
Paid-in capital | 14,278 | 14,604 | ||||||
Treasury stock, at cost, 20,000 shares | (240 | ) | (240 | ) | ||||
Accumulated deficit | (832 | ) | (1,683 | ) | ||||
Total stockholders' equity | 13,207 | 12,682 | ||||||
Total liabilities and stockholders' equity | $ | 70,381 | $ | 63,035 |
Three Months Ended March 31, | Six Months Ended March 31, | Three Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Revenue | $ | 30,142 | $ | 19,121 | $ | 56,620 | $ | 38,942 | $ | 83,314 | $ | 26,478 | ||||||||||||
Forwarding expenses and cost of revenues | 22,593 | 13,125 | 42,622 | 26,659 | 67,825 | 20,029 | ||||||||||||||||||
Gross profit | 7,549 | 5,996 | 13,998 | 12,283 | 15,489 | 6,449 | ||||||||||||||||||
Cost and Expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 6,415 | 6,584 | 12,124 | 12,669 | 12,338 | 5,709 | ||||||||||||||||||
Amortization of intangible assets | 293 | 243 | 544 | 486 | 509 | 251 | ||||||||||||||||||
Total Costs and Expenses | 6,708 | 6,827 | 12,668 | 13,155 | 12,847 | 5,960 | ||||||||||||||||||
Income (Loss) from Operations | 841 | (831 | ) | 1,330 | (872 | ) | ||||||||||||||||||
Income from Operations | 2,642 | 489 | ||||||||||||||||||||||
Other Items: | ||||||||||||||||||||||||
Interest expense net of interest income | (158 | ) | (141 | ) | (277 | ) | (304 | ) | ||||||||||||||||
Gain on Paycheck Protection Program loan forgiveness | 135 | - | 135 | - | ||||||||||||||||||||
Income (Loss) Before Income Taxes | 818 | (972 | ) | 1,188 | (1,176 | ) | ||||||||||||||||||
Income tax (expense) benefit | (222 | ) | 35 | (337 | ) | 119 | ||||||||||||||||||
Net Income (Loss) | 596 | (937 | ) | 851 | (1,057 | ) | ||||||||||||||||||
Interest expense | (279 | ) | (119 | ) | ||||||||||||||||||||
Income Before Income Taxes | 2,363 | 370 | ||||||||||||||||||||||
Income tax expense | (675 | ) | (115 | ) | ||||||||||||||||||||
Net Income | 1,688 | 255 | ||||||||||||||||||||||
Preferred stock dividends | (195 | ) | (175 | ) | (369 | ) | (326 | ) | (211 | ) | (174 | ) | ||||||||||||
Net Income (Loss) Available to Common Stockholders | $ | 401 | $ | (1,112 | ) | $ | 482 | $ | (1,383 | ) | ||||||||||||||
Net Income Available to Common Stockholders | $ | 1,477 | $ | 81 | ||||||||||||||||||||
Net income (loss) per share | ||||||||||||||||||||||||
Net income per share | ||||||||||||||||||||||||
Basic | $ | 0.64 | $ | (1.08 | ) | $ | 0.91 | $ | (1.22 | ) | $ | 1.76 | $ | 0.27 | ||||||||||
Diluted | $ | 0.61 | $ | (1.08 | ) | $ | 0.87 | $ | (1.22 | ) | $ | 1.66 | $ | 0.26 | ||||||||||
Net income (loss) per share attributable to common stockholders: | ||||||||||||||||||||||||
Net income per share attributable to common stockholders: | ||||||||||||||||||||||||
Basic | $ | 0.42 | $ | (1.29 | ) | $ | 0.51 | $ | (1.60 | ) | $ | 1.54 | $ | 0.09 | ||||||||||
Diluted | $ | 0.41 | $ | (1.29 | ) | $ | 0.49 | $ | (1.60 | ) | $ | 1.45 | $ | 0.08 | ||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||
Basic | 936,154 | 865,985 | 936,045 | 865,630 | 959.1 | 935.9 | ||||||||||||||||||
Diluted | 983,784 | 865,985 | 975,328 | 865,630 | 1,018.1 | 966.8 |
PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | TREASURY STOCK | ACCUMULATED EARNINGS (DEFICIT) | TOTAL EQUITY | PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | COMMON TREASURY STOCK | ACCUMULATED EARNINGS (DEFICIT) | TOTAL EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARES | $ | SHARES | $ | $ | SHARES | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - September 30, 2021 | 20,991 | $ | 0 | 962,207 | $ | 1 | $ | 14,838 | 20,000 | $ | (240 | ) | $ | 3,520 | $ | 18,119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | 0 | — | 0 | 0 | — | 0 | 1,688 | 1,688 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | — | 0 | — | 0 | (211 | ) | — | 0 | 0 | (211 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 0 | — | 0 | 29 | — | 0 | 0 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercise | 0 | 0 | 17,500 | 0 | 85 | 0 | 0 | 0 | 85 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2021 | 20,991 | $ | 0 | 979,707 | $ | 1 | $ | 14,741 | 20,000 | $ | (240 | ) | $ | 5,208 | $ | 19,710 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARES | $ | SHARES | $ | $ | SHARES | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - September 30, 2020 | 19,791 | $ | - | 918,652 | $ | 1 | $ | 14,604 | 20,000 | $ | (240 | ) | $ | (1,683 | ) | $ | 12,682 | 19,791 | 0 | 918,652 | $ | 1 | $ | 14,604 | 20,000 | $ | (240 | ) | $ | (1,683 | ) | $ | 12,682 | |||||||||||||||||||||||||||||||||||||||
Net Income | - | - | - | - | - | - | - | 255 | 255 | — | 0 | — | 0 | 0 | — | 0 | 255 | 255 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | - | - | - | - | (174 | ) | - | - | - | (174 | ) | — | 0 | — | 0 | (174 | ) | — | 0 | 0 | (174 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | 10 | - | - | - | 10 | — | 0 | — | 0 | 10 | — | 0 | 0 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option exercise | - | - | 2,502 | - | 21 | - | - | - | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2020 | 19,791 | $ | - | 921,154 | $ | 1 | $ | 14,461 | 20,000 | $ | (240 | ) | $ | (1,428 | ) | $ | 12,794 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | - | - | - | - | - | - | - | 596 | 596 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | - | - | - | - | (195 | ) | - | - | - | (195 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | 12 | - | - | - | 12 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2021 | 19,791 | $ | - | 921,154 | $ | 1 | $ | 14,278 | 20,000 | $ | (240 | ) | $ | (832 | ) | $ | 13,207 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercise | 0 | 0 | 2,502 | 0 | 21 | 0 | 0 | 0 | 21 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – December 31, 2020 | 19,791 | $ | 0 | 921,154 | $ | 1 | $ | 14,461 | 20,000 | $ | (240 | ) | $ | (1,428 | ) | $ | 12,794 |
PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | TREASURY STOCK | ACCUMULATED EARNINGS (DEFICIT) | TOTAL EQUITY | |||||||||||||||||||||||||||||||
SHARES | $ | SHARES | $ | $ | SHARES | $ | $ | $ | ||||||||||||||||||||||||||||
Balance - September 30, 2019 | 20,631 | $ | - | 863,812 | $ | 1 | $ | 15,075 | 20,000 | $ | (240 | ) | $ | 42 | $ | 14,878 | ||||||||||||||||||||
Net Loss | - | - | - | - | - | - | - | (120 | ) | (120 | ) | |||||||||||||||||||||||||
Dividends to preferred stockholders | - | - | - | - | (151 | ) | - | - | - | (151 | ) | |||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | 55 | - | - | - | 55 | |||||||||||||||||||||||||||
Stock option exercise | - | - | 3,840 | - | 31 | - | - | - | 31 | |||||||||||||||||||||||||||
Balance - December 31, 2019 | 20,631 | $ | - | 867,652 | $ | 1 | $ | 15,010 | 20,000 | $ | (240 | ) | $ | (78 | ) | $ | 14,693 | |||||||||||||||||||
Net Loss | - | - | - | - | - | - | - | (937 | ) | (937 | ) | |||||||||||||||||||||||||
Dividends to preferred stockholders | - | - | - | - | (175 | ) | - | - | - | (175 | ) | |||||||||||||||||||||||||
Stock-based compensation | - | - | - | - | 56 | - | - | - | 56 | |||||||||||||||||||||||||||
Balance - March 31, 2020 | 20,631 | $ | - | 867,652 | $ | 1 | $ | 14,891 | 20,000 | $ | (240 | ) | $ | (1,015 | ) | $ | 13,637 |
Six Months Ended March 31, | Three Months Ended December 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||
Net income (loss) | $ | 851 | $ | (1,057 | ) | |||||||||||
Net income | $ | 1,688 | $ | 255 | ||||||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
(Recovery of) provision for uncollectible accounts | (28 | ) | 164 | |||||||||||||
Provision for (recovery of) uncollectible accounts | 102 | (32 | ) | |||||||||||||
Depreciation | 175 | 92 | 107 | 86 | ||||||||||||
Deferred income tax provision | 252 | (183 | ) | 133 | 86 | |||||||||||
Amortization of intangible assets | 544 | 486 | 509 | 251 | ||||||||||||
Amortization of acquired inventory valuation | 505 | 447 | 171 | 214 | ||||||||||||
Amortization of loan costs | 5 | 14 | 2 | 2 | ||||||||||||
Stock-based compensation | 54 | 149 | 40 | 24 | ||||||||||||
Gain on Paycheck Protection Program loan forgiveness | (135 | ) | — | |||||||||||||
Changes in fair value of mandatorily redeemable noncontrolling interest | 86 | — | 58 | 86 | ||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||||||
Accounts receivable | (3,288 | ) | 7,510 | (4,952 | ) | (1,857 | ) | |||||||||
Inventory | (302 | ) | (254 | ) | (464 | ) | (150 | ) | ||||||||
Prepaid expenses and current assets | (13 | ) | 182 | |||||||||||||
Prepaid expenses and other current assets | 684 | (326 | ) | |||||||||||||
Security deposits and other long-term assets | (32 | ) | (166 | ) | 67 | (40 | ) | |||||||||
Accounts payable and accrued expenses | 2,042 | (6,166 | ) | 7,172 | 607 | |||||||||||
Other liabilities | (2 | ) | (9 | ) | (26 | ) | (18 | ) | ||||||||
Net cash provided by operating activities | 714 | 1,209 | ||||||||||||||
Net cash provided by (used in) operating activities | 5,291 | (812 | ) | |||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||
Acquisition of property and equipment, net of disposals | (85 | ) | (131 | ) | (169 | ) | (55 | ) | ||||||||
Acquisitions, net of cash acquired | (2,874 | ) | (116 | ) | 0 | (2,806 | ) | |||||||||
Net cash used in investing activities | (2,959 | ) | (247 | ) | (169 | ) | (2,861 | ) | ||||||||
Cash Flows From Financing Activities: | ||||||||||||||||
Repayments of term loan | (476 | ) | (282 | ) | (292 | ) | (206 | ) | ||||||||
Proceeds from stock option exercise | 21 | 31 | ||||||||||||||
Line of credit, proceeds, net | 3,115 | (873 | ) | |||||||||||||
Proceeds from stock options exercise | 85 | 21 | ||||||||||||||
Line of credit, (payments) proceeds, net | (5,795 | ) | 2,380 | |||||||||||||
Repayment of subordinated promissory notes | (255 | ) | (73 | ) | (168 | ) | (39 | ) | ||||||||
Net cash provided by (used in) in financing activities | 2,405 | (1,197 | ) | |||||||||||||
Net increase (decrease) in cash | 160 | (235 | ) | |||||||||||||
Net cash (used in) provided by financing activities | (6,170 | ) | 2,156 | |||||||||||||
Net decrease in cash | (1,048 | ) | (1,517 | ) | ||||||||||||
Cash at beginning of the period | 3,349 | 2,163 | 6,234 | 3,349 | ||||||||||||
Cash at end of period | $ | 3,509 | $ | 1,928 | $ | 5,186 | $ | 1,832 | ||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Interest | $ | 210 | $ | 309 | $ | 194 | $ | 99 | ||||||||
Income taxes | $ | 16 | $ | 9 | $ | 10 | $ | 12 | ||||||||
Non-cash operating activities: | ||||||||||||||||
Gain on Paycheck Protection Program loan forgiveness | $ | 135 | $ | — | ||||||||||||
Non-cash investing activities: | ||||||||||||||||
Due to seller 338 election | $ | 30 | $ | — | ||||||||||||
Non-cash investing activities: | ||||||||||||||||
Subordinated promissory notes of ICT | $ | 1,760 | $ | — | $ | 0 | $ | 1,850 | ||||||||
Non-cash financing activities: | ||||||||||||||||
Dividends declared to preferred stockholders | $ | 369 | $ | 326 | $ | 211 | $ | 174 |
1. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
Three Months Ended March 31, | Three Months Ended March 31, | Six Months Ended March 31, | Six Months Ended March 31, | Three Months Ended December 31, | Three Months Ended December 31, | |||||||||||||||||||
Service Type | 2021 | 2020 | 2021 | 2020 | 2021 | 2020 | ||||||||||||||||||
Ocean freight | $ | 11,435 | $ | 5,880 | $ | 20,474 | $ | 11,737 | $ | 32,876 | $ | 9,039 | ||||||||||||
Trucking and other | 4,747 | 2,653 | 9,111 | 6,462 | ||||||||||||||||||||
Trucking | 21,775 | 4,352 | ||||||||||||||||||||||
Air freight | 13,874 | 6,202 | ||||||||||||||||||||||
Other | 5,330 | 12 | ||||||||||||||||||||||
Customs brokerage | 3,320 | 3,111 | 5,975 | 5,305 | 3,701 | 2,655 | ||||||||||||||||||
Air freight | 4,871 | 3,684 | 11,073 | 7,903 | ||||||||||||||||||||
Total | $ | 24,373 | $ | 15,328 | $ | 46,633 | $ | 31,407 | $ | 77,556 | $ | 22,260 |
2. |
Fair Value | ||||
Accounts receivable | $ | 177 | ||
Inventory | 226 | |||
Prepaids and other current assets | 3 | |||
Property & equipment, net | 64 | |||
Intangibles - customer relationships | 1,360 | |||
Intangibles - trademark | 70 | |||
Goodwill | 1,438 | |||
Accounts payable & accrued expenses | (24 | ) | ||
Purchase price, net of cash received | $ | 3,314 |
Fair Value | ||||
Accounts receivable | $ | 573 | ||
Property & equipment, net | 13 | |||
Intangibles – customer relationships | 480 | |||
Intangibles - trademark | 20 | |||
Intangibles - other | 31 | |||
Goodwill | 304 | |||
Accounts payable & accrued expenses | (139 | ) | ||
Purchase price | $ | 1,282 |
Three Months Ended December 31, 2020 | ||||
Revenue | $ | 44,375 | ||
Income from Operations | $ | 630 | ||
Net Income | $ | 245 | ||
Net Income Available to Common Stockholders | $ | 71 | ||
Net income per share: | ||||
Basic | $ | 0.26 | ||
Diluted | $ | 0.25 | ||
Net income per share attributable to common stockholders: | ||||
Basic | $ | 0.08 | ||
Diluted | $ | 0.07 |
3. | INVENTORY |
March 31, 2021 | September 30, 2020 | |||||||
Finished Goods | $ | 1,418 | $ | 1,246 | ||||
Work-in-Process | 1,043 | 1,406 | ||||||
Raw Materials | 1,259 | 1,039 | ||||||
Gross Inventory | 3,720 | 3,691 | ||||||
Less - Reserve for Inventory Valuation | (31 | ) | (25 | ) | ||||
Inventory, Net | $ | 3,689 | $ | 3,666 |
December 31, 2021 | September 30, 2021 | |||||||
Finished goods | $ | 860 | $ | 919 | ||||
Work-in-process | 944 | 968 | ||||||
Raw materials | 1,745 | 1,365 | ||||||
Gross inventory | 3,549 | 3,252 | ||||||
Less – reserve for inventory valuation | (28 | ) | (25 | ) | ||||
Inventory net | $ | 3,521 | $ | 3,227 |
4. |
March 31, 2021 | September 30, 2020 | Life | |||||||
Building and Improvements | $ | 3,120 | $ | 3,096 | 15-30 Years | ||||
Land and Improvements | 1,247 | 1,235 | Indefinite | ||||||
Furniture & Fixtures | 232 | 282 | 3-7 Years | ||||||
Computer Equipment | 571 | 385 | 3-5 Years | ||||||
Machinery & Equipment | 1,207 | 1,288 | 3-15 Years | ||||||
Leasehold Improvements | 105 | 115 | 3-5 Years | ||||||
6,482 | 6,401 | ||||||||
Less: Accumulated Depreciation | (1,517 | ) | (1,424 | ) | |||||
Property and equipment, net | $ | 4,965 | $ | 4,977 |
INTANGIBLE ASSETS |
March 31, 2021 | September 30, 2020 | Life | |||||||
Customer Relationships | $ | 16,232 | $ | 14,392 | 15-24 Years | ||||
Trademarks / Names | 1,840 | 1,820 | 1-20 Years | ||||||
Trademarks / Names | 521 | 451 | Indefinite | ||||||
Other | 1,049 | 1,018 | 2-5 Years | ||||||
19,642 | 17,681 | ||||||||
Less: Accumulated Amortization | (4,892 | ) | (4,348 | ) | |||||
Intangible assets, net | $ | 14,750 | $ | 13,333 |
March 31, 2021 | September 30, 2020 | |||||||
Global Logistics Services | $ | 8,174 | $ | 7,643 | ||||
Manufacturing | 7,700 | 7,700 | ||||||
Life Sciences | 3,768 | 2,338 | ||||||
19,642 | 17,681 | |||||||
Less: Accumulated Amortization | (4,892 | ) | (4,348 | ) | ||||
Intangible assets, net | $ | 14,750 | $ | 13,333 |
December 31, 2021 | September 30, 2021 | Life | |||||||
Customer relationships | $ | 23,482 | $ | 23,482 | 12-24 Years | ||||
Trademarks/names | 4,490 | 4,490 | 1-20 Years | ||||||
Trademarks/names | 521 | 521 | Indefinite | ||||||
Other | 1,149 | 1,149 | 2-22 Years | ||||||
29,642 | 29,642 | ||||||||
Less: Accumulated Amortization | (5,978 | ) | (5,469 | ) | |||||
Intangible assets, net | $ | 23,664 | $ | 24,173 |
December 31, 2021 | September 30, 2021 | |||||||
Logistics | $ | 18,174 | $ | 18,174 | ||||
Life Sciences | 3,768 | 3,768 | ||||||
Manufacturing | 7,700 | 7,700 | ||||||
29,642 | 29,642 | |||||||
Less: Accumulated Amortization | (5,978 | ) | (5,469 | ) | ||||
Intangible assets, net | $ | 23,664 | $ | 24,173 |
GOODWILL |
March 31, 2021 | September 30, 2020 | |||||||
Global Logistics Services | $ | 6,532 | $ | 6,161 | ||||
Manufacturing | 5,046 | 5,046 | ||||||
Life Sciences | 4,377 | 2,939 | ||||||
$ | 15,955 | $ | 14,146 |
December 31, 2021 | September 30, 2021 | |||||||
Logistics | $ | 9,063 | $ | 9,063 | ||||
Life Sciences | 4,377 | 4,377 | ||||||
Manufacturing | 5,046 | 5,046 | ||||||
Total | $ | 18,486 | $ | 18,486 |
NOTES PAYABLE – BANKS |
(A) | Santander Bank Facility |
(B) | First Merchants Bank Credit Facility |
March 31, 2021 | September 30, 2020 | |||||||
Long-Term Debt * | $ | 4,540 | $ | 5,025 | ||||
Less Current Portion | (808 | ) | (808 | ) | ||||
$ | 3,732 | $ | 4,217 |
December 31, 2021 | September 30, 2021 | |||||||
(in thousands) | ||||||||
Total Debt* | $ | 3,168 | $ | 3,368 | ||||
Less Current Portion | (809 | ) | (809 | ) | ||||
Long Term Portion | $ | 2,359 | $ | 2,559 |
* |
(C) | First Northern Bank of Dixon |
March 31, 2021 | September 30, 2020 | December 31, 2021 | September 30, 2021 | |||||||||||||
Long-Term Debt * | $ | 2,273 | $ | 2,273 | ||||||||||||
(in thousands) | ||||||||||||||||
Total Debt* | $ | 2,154 | $ | 2,244 | ||||||||||||
Less Current Portion | (58 | ) | (58 | ) | (63 | ) | (59 | ) | ||||||||
$ | 2,215 | $ | 2,215 | |||||||||||||
Long Term Portion | $ | 2,091 | $ | 2,185 |
* | Long-term debt is due in monthly installments of $12 plus monthly interest, at 4.18% per annum. The note is collateralized by real property owned by Antibodies and guaranteed by Janel. |
SUBORDINATED PROMISSORY NOTES - RELATED PARTY |
(In thousands) | March 31, 2021 | September 30, 2020 | ||||||
Total Subordinated Promissory Notes-related party | $ | 2,079 | $ | 543 | ||||
Less Current Portion of Subordinated Promissory Notes-related party | (1,145 | ) | (504 | ) | ||||
Long Term Portion of Subordinated Promissory Notes-related party | $ | 934 | $ | 39 |
December 31, 2021 | September 30, 2021 | |||||||
(in thousands) | ||||||||
Total subordinated promissory notes | $ | 5,904 | $ | 6,075 | ||||
Less current portion of subordinated promissory notes | (500 | ) | (550 | ) | ||||
Long term portion of subordinated promissory notes | $ | 5,404 | $ | 5,525 |
STOCK-BASED COMPENSATION |
(A) | Stock Options |
• | Dividend yield - We have never paid dividends on our common stock and currently have no plans to do so; therefore, no dividend yield is applied. |
2021 | ||||
Risk-free | 1.10% | |||
Expected | years | 5.5-6.5 | ||
Expected | 100.3% - 110.3% | |||
Dividend yield | 0% | |||
Weighted | $ |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding Balance at September 30, 2020 | 93,996 | $ | 5.76 | 5.24 | $ | 304.99 | ||||||||||
Granted | 7,500 | $ | 9.00 | 9.50 | $ | — | ||||||||||
Exercised | (2,502 | ) | $ | 8.58 | — | $ | — | |||||||||
Outstanding Balance at March 31, 2021 | 98,994 | $ | 5.93 | 5.04 | $ | 1,144.91 | ||||||||||
Exercisable on March 31, 2021 | 83,998 | $ | 5.42 | 4.36 | $ | 1,014.32 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding balance at September 30, 2021 | 98,994 | $ | 5.93 | 4.5 | $ | 1,689.38 | ||||||||||
Granted | 10,000 | $ | 23.00 | 9.8 | $ | 0 | ||||||||||
Exercised | (17,500 | ) | $ | 4.87 | — | $ | — | |||||||||
Outstanding balance at December 31, 2021 | 91,494 | $ | 8.00 | 5.1 | $ | 1,463.60 | ||||||||||
Exercisable at December 31, 2021 | 73,998 | $ | 5.88 | 4.1 | $ | 1,341.14 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding Balance at September 30, 2020 | 6,053 | $ | 4.13 | 6.0 | $ | 29.48 | ||||||||||
Outstanding Balance at March 31, 2021 | 6,053 | $ | 4.13 | 5.50 | $ | 80.93 | ||||||||||
Exercisable on March 31, 2021 | 6,053 | $ | 4.13 | 5.50 | $ | 80.93 |
2021 | ||||
Risk-free | ||||
Expected | ||||
Expected | ||||
Dividend | 0% | |||
Weighted |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding Balance at September 30, 2020 | 39,013 | $ | 9.24 | 6.81 | $ | 85.45 | ||||||||||
Granted | 6,948 | $ | 12.29 | 9.50 | $ | — | ||||||||||
Exercised | (7,000 | ) | $ | 6.48 | — | $ | — | |||||||||
Outstanding Balance at March 31, 2021 | 38,961 | $ | 10.28 | 7.12 | $ | 78.16 | ||||||||||
Exercisable on March 31, 2021 | 25,153 | $ | 9.16 | 6.17 | $ | 71.25 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding balance at September 30, 2021 | 38,961 | $ | 10.28 | 6.62 | $ | 78.16 | ||||||||||
Granted | 7,018 | $ | 17.16 | 9.75 | $ | 0 | ||||||||||
Exercised | (10,372 | ) | $ | 8.30 | — | $ | — | |||||||||
Outstanding balance at December 31, 2021 | 35,607 | $ | 12.22 | 7.51 | $ | 175.98 | ||||||||||
Exercisable at December 31, 2021 | 21,663 | $ | 10.72 | 6.49 | $ | 139.47 |
INCOME PER COMMON SHARE |
For the Three Months Ended March 31, | For the Six Months Ended March 31, | For the three Months Ended December 31, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2021 | 2020 | |||||||||||||||||||
Income (loss): | ||||||||||||||||||||||||
Net income (loss) | $ | 596 | $ | (937 | ) | $ | 851 | $ | (1,057 | ) | ||||||||||||||
Income: | ||||||||||||||||||||||||
Net income | $ | 1,688 | $ | 255 | ||||||||||||||||||||
Preferred stock dividends | (195 | ) | (175 | ) | (369 | ) | (326 | ) | (211 | ) | (174 | ) | ||||||||||||
Net Income (loss) available to common stockholders | $ | 401 | $ | (1,112 | ) | $ | 482 | $ | (1,383 | ) | ||||||||||||||
Net income available to common stockholders | $ | 1,477 | $ | 81 | ||||||||||||||||||||
Common Shares: | ||||||||||||||||||||||||
Basic - weighted average common shares | 936,154 | 865,985 | 936,045 | 865,630 | 959.1 | 935.9 | ||||||||||||||||||
Effect of dilutive securities: | ||||||||||||||||||||||||
Stock options | 47,320 | — | 38,973 | — | 58.7 | 30.6 | ||||||||||||||||||
Restricted stock | — | — | — | — | ||||||||||||||||||||
Convertible preferred stock | 310 | — | 310 | — | 0.3 | 0.3 | ||||||||||||||||||
Diluted - weighted average common stock | 983,784 | 865,985 | 975,328 | 865,630 | 1,018.1 | 966.8 | ||||||||||||||||||
Income (loss) per Common Share: | ||||||||||||||||||||||||
Income per Common Share: | ||||||||||||||||||||||||
Basic - | ||||||||||||||||||||||||
Net income (loss) | $ | 0.64 | $ | (1.08 | ) | $ | 0.91 | $ | (1.22 | ) | ||||||||||||||
Net income | $ | 1.76 | $ | 0.27 | ||||||||||||||||||||
Preferred stock dividends | (0.22 | ) | (0.21 | ) | (0.40 | ) | (0.38 | ) | (0.22 | ) | (0.18 | ) | ||||||||||||
Net Income (loss) available to common stockholders | $ | 0.42 | $ | (1.29 | ) | $ | 0.51 | $ | (1.60 | ) | ||||||||||||||
Net income attributable to common stockholders | $ | 1.54 | $ | 0.09 | ||||||||||||||||||||
Diluted - | ||||||||||||||||||||||||
Net income (loss) | $ | 0.61 | $ | (1.08 | ) | $ | 0.87 | $ | (1.22 | ) | ||||||||||||||
Net income | $ | 1.66 | $ | 0.26 | ||||||||||||||||||||
Preferred stock dividends | (0.20 | ) | (0.21 | ) | (0.38 | ) | (0.38 | ) | (0.21 | ) | (0.18 | ) | ||||||||||||
Net income (loss) available to common stockholders | $ | 0.41 | $ | (1.29 | ) | $ | 0.49 | $ | (1.60 | ) | ||||||||||||||
Net income available to common stockholders | $ | 1.45 | $ | 0.08 |
March 31, | ||||||||
2021 | 2020 | |||||||
Employee Stock Options | 98,994 | 114,496 | ||||||
Non-employee Stock Options | 6,053 | 36,053 | ||||||
Employee Restricted Stock | — | 5,000 | ||||||
Non-employee Restricted Stock | — | 26,667 | ||||||
Convertible Preferred Stock | 310 | 6,310 | ||||||
105,357 | 188,526 |
December 31, | ||||||||
2021 | 2020 | |||||||
Employee stock options | 91.5 | 98.9 | ||||||
Non-employee stock options | 0 | 6.1 | ||||||
Convertible preferred stock | 0.3 | 0.3 | ||||||
91.8 | 105.3 |
INCOME TAXES |
For the Six Months Ended March 31, 2021 | For the Six Months Ended March 31, 2020 | |||||||
Federal taxes at statutory rates | $ | (250 | ) | $ | 247 | |||
Permanent differences | 7 | (28 | ) | |||||
Other | - | (63 | ) | |||||
State and local taxes | (94 | ) | (37 | ) | ||||
$ | (337 | ) | $ | 119 |
�� | December 31, 2021 | December 31, 2020 | ||||||
Federal taxes at statutory rates | $ | 496 | $ | 78 | ||||
Permanent differences | 10 | 3 | ||||||
State and local taxes, net of Federal benefit | 169 | 34 | ||||||
Total | $ | 675 | $ | 115 |
BUSINESS SEGMENT INFORMATION |
For the three months ended March 31, 2021 | Consolidated | Global Logistics Services | Manufacturing | Life Sciences | Corporate | |||||||||||||||||||||||||||||||||||
Revenue | $ | 30,142 | $ | 24,373 | $ | 2,529 | $ | 3,240 | $ | — | ||||||||||||||||||||||||||||||
For the three months ended December 31, 2021 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||||||||||||||||||||||
Revenues | $ | 83,314 | $ | 77,556 | $ | 3,244 | $ | 2,514 | $ | 0 | ||||||||||||||||||||||||||||||
Forwarding expenses and cost of revenues | 22,593 | 20,250 | 1,163 | 1,180 | — | 67,825 | 65,610 | 1,001 | 1,214 | 0 | ||||||||||||||||||||||||||||||
Gross profit | 7,549 | 4,123 | 1,366 | 2,060 | — | |||||||||||||||||||||||||||||||||||
Gross margin | 15,489 | 11,946 | 2,243 | 1,300 | 0 | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 6,415 | 3,743 | 683 | 1,213 | 776 | 12,338 | 9,349 | 1,250 | 729 | 1,010 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 293 | — | — | — | 293 | 509 | 0 | 0 | 0 | 509 | ||||||||||||||||||||||||||||||
Operating income (loss) | 841 | 380 | 683 | 847 | (1,069 | ) | ||||||||||||||||||||||||||||||||||
Income (loss) from operations | 2,642 | 2,597 | 993 | 571 | (1,519 | ) | ||||||||||||||||||||||||||||||||||
Interest expense | 158 | 81 | 43 | 27 | 7 | 279 | 224 | 29 | 26 | 0 | ||||||||||||||||||||||||||||||
Identifiable assets | 70,381 | 23,743 | 4,078 | 10,557 | 32,003 | 122,237 | 64,899 | 10,083 | 4,017 | 43,238 | ||||||||||||||||||||||||||||||
Capital expenditures | $ | 30 | $ | 24 | $ | 3 | $ | 3 | $ | — | $ | 169 | $ | 65 | $ | 102 | $ | 2 | $ | 0 |
For the six months ended March 31, 2021 | Consolidated | Global Logistics Services | Manufacturing | Life Sciences | Corporate | |||||||||||||||||||||||||||||||||||
Revenue | $ | 56,620 | $ | 46,633 | $ | 4,398 | $ | 5,589 | $ | — | ||||||||||||||||||||||||||||||
For the three months ended December 31, 2020 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||||||||||||||||||||||
Revenues | $ | 26,478 | $ | 22,260 | $ | 2,349 | $ | 1,869 | $ | 0 | ||||||||||||||||||||||||||||||
Forwarding expenses and cost of revenues | 42,622 | 38,645 | 2,041 | 1,936 | — | 20,029 | 18,395 | 756 | 878 | 0 | ||||||||||||||||||||||||||||||
Gross profit | 13,998 | 7,988 | 2,357 | 3,653 | — | |||||||||||||||||||||||||||||||||||
Gross margin | 6,449 | 3,865 | 1,593 | 991 | 0 | |||||||||||||||||||||||||||||||||||
Selling, general and administrative | 12,124 | 7,117 | 1,325 | 2,189 | 1,493 | 5,709 | 3,374 | 976 | 642 | 717 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 544 | — | — | — | 544 | 251 | 0 | 0 | 0 | 251 | ||||||||||||||||||||||||||||||
Operating income (loss) | 1,330 | 871 | 1,032 | 1,464 | (2,037 | ) | 489 | 491 | 617 | 349 | (968 | ) | ||||||||||||||||||||||||||||
Interest expense | 277 | 118 | 90 | 55 | 14 | 119 | 37 | 28 | 47 | 7 | ||||||||||||||||||||||||||||||
Identifiable assets | 70,381 | 23,743 | 4,078 | 10,557 | 32,003 | 68,224 | 22,418 | 10,252 | 3,501 | 32,053 | ||||||||||||||||||||||||||||||
Capital expenditures | $ | 85 | $ | 43 | $ | 15 | $ | 27 | $ | — | $ | 55 | $ | 19 | $ | 24 | $ | 12 | $ | 0 |
12. | FAIR VALUE MEASUREMENTS |
Level 3 | December 31, 2021 | September 30, 2021 | ||||||
Contingent earnout liabilities | $ | 3,600 | $ | 3,600 | ||||
Level 3 Liabilities | $ | 3,600 | $ | 3,600 |
For the three months ended March 31, 2020 | Consolidated | Global Logistics Services | Manufacturing | Life Sciences | Corporate | |||||||||||||||
Revenue | $ | 19,121 | $ | 15,328 | $ | 2,056 | $ | 1,737 | $ | — | ||||||||||
Forwarding expenses and cost of revenues | 13,125 | 11,615 | 908 | 602 | — | |||||||||||||||
Gross profit | 5,996 | 3,713 | 1,148 | 1,135 | — | |||||||||||||||
Selling, general and administrative | 6,584 | 3,952 | 701 | 1,071 | 860 | |||||||||||||||
Amortization of intangible assets | 243 | — | — | — | 243 | |||||||||||||||
Operating (loss) income | (831 | ) | (239 | ) | 447 | 64 | (1,103 | ) | ||||||||||||
Interest expense | 141 | 54 | 66 | 24 | (3 | ) | ||||||||||||||
Identifiable assets | 52,868 | 14,012 | 2,425 | 9,650 | 26,781 | |||||||||||||||
Capital expenditures | $ | 34 | $ | 17 | $ | — | $ | 17 | $ | — |
For the six months ended March 31, 2020 | Consolidated | Global Logistics Services | Manufacturing | Life Sciences | Corporate | |||||||||||||||
Revenue | $ | 38,942 | $ | 31,407 | $ | 3,926 | $ | 3,609 | $ | — | ||||||||||
Forwarding expenses and cost of revenues | 26,659 | 23,702 | 1,753 | 1,204 | — | |||||||||||||||
Gross profit | 12,283 | 7,705 | 2,173 | 2,405 | — | |||||||||||||||
Selling, general and administrative | 12,669 | 7,590 | 1,383 | 2,051 | 1,645 | |||||||||||||||
Amortization of intangible assets | 486 | — | — | — | 486 | |||||||||||||||
Operating (loss) income | (872 | ) | 115 | 790 | 354 | (2,131 | ) | |||||||||||||
Interest expense | 304 | 120 | 138 | 51 | (5 | ) | ||||||||||||||
Identifiable assets | 52,868 | 14,012 | 2,425 | 9,650 | 26,781 | |||||||||||||||
Capital expenditures | $ | 131 | $ | 64 | $ | 23 | $ | 44 | $ | — |
December 31, 2021 | September 30, 2021 | |||||||
Balance at beginning of period | $ | 3,600 | $ | 0 | ||||
Fair value of contingent consideration recorded in connection with business combinations | 0 | 3,600 | ||||||
Change in fair value of contingent consideration | 0 | 0 | ||||||
Balance at end of period | $ | 3,600 | $ | 3,600 |
LEASES |
Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | |||||||
Operating lease cost | $ | 486 | $ | 353 | ||||
Short-term lease cost | 14 | 68 | ||||||
Total lease cost | $ | 500 | $ | 421 |
Three Months Ended December 31,2021 | Three Months Ended December 31,2020 | |||||||
Operating lease cost | $ | 480 | $ | 231 | ||||
Short-term lease cost | 152 | 14 | ||||||
Total lease cost | $ | 632 | $ | 245 |
2021 | $ | 809 | ||||||
Year End December 31, 2021 | ||||||||
2022 | 730 | $ | 1,798 | |||||
2023 | 512 | 1,441 | ||||||
2024 | 496 | 1,147 | ||||||
2025 | 123 | 853 | ||||||
Total undiscounted lease payments | 2,670 | |||||||
2026 | 620 | |||||||
Thereafter | 1,168 | |||||||
Total undiscounted loan payments | 7,027 | |||||||
Less: Imputed interest | (191 | ) | (522 | ) | ||||
Total lease obligations | $ | 2,479 | ||||||
Total lease obligation | $ | 6,505 |
Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||||||||||||||
Revenues | $ | 30,142 | $ | 19,121 | $ | 56,620 | $ | 38,942 | $ | 83,314 | $ | 26,478 | ||||||||||||
Forwarding expenses and cost of revenues | 22,593 | 13,125 | 42,622 | 26,659 | 67,825 | 20,029 | ||||||||||||||||||
Gross profit | 7,549 | 5,996 | 13,998 | 12,283 | 15,489 | 6,449 | ||||||||||||||||||
Operating expenses | 6,708 | 6,827 | 12,668 | 13,155 | 12,847 | 5,960 | ||||||||||||||||||
Operating income (loss) | 841 | (831 | ) | 1,330 | (872 | ) | ||||||||||||||||||
Net income (loss) | 596 | (937 | ) | 851 | (1,057 | ) | ||||||||||||||||||
Adjusted operating income (loss) | $ | 1,455 | $ | (286 | ) | $ | 2,433 | $ | 210 | |||||||||||||||
Operating income | $ | 2,642 | $ | 489 | ||||||||||||||||||||
Net income | $ | 1,688 | $ | 255 | ||||||||||||||||||||
Adjusted operating income | $ | 3,362 | $ | 978 |
(in thousands) | Three Months Ended March 31, 2021 | Three Months Ended March 31, 2020 | Six Months Ended March 31, 2021 | Six Months Ended March 31, 2020 | ||||||||||||
Operating income (loss) | $ | 841 | $ | (831 | ) | $ | 1,330 | $ | (872 | ) | ||||||
Amortization of intangible assets(1) | 293 | 243 | 544 | 486 | ||||||||||||
Stock-based compensation(2) | 30 | 75 | 54 | 149 | ||||||||||||
Cost recognized on sale of acquired inventory (3) | 291 | 227 | 505 | 447 | ||||||||||||
Adjusted operating income (loss) | $ | 1,455 | $ | (286 | ) | $ | 2,433 | $ | 210 |
Three Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Operating income | $ | 2,642 | $ | 489 | ||||
Amortization of intangible assets | 509 | 251 | ||||||
Stock-based compensation | 40 | 24 | ||||||
Cost recognized on sale of acquired inventory | 171 | 214 | ||||||
Adjusted operating income | $ | 3,362 | $ | 978 |
Three Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 77,556 | $ | 22,260 | ||||
Forwarding expense | 65,610 | 18,395 | ||||||
Gross profit | $ | 11,946 | $ | 3,865 | ||||
Gross profit margin | 15.4 | % | 17.4 | % | ||||
Selling, general and administrative expenses | $ | 9,349 | $ | 3,374 | ||||
Income from operations | $ | 2,597 | $ | 491 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 24,373 | $ | 15,328 | $ | 46,633 | $ | 31,407 | ||||||||
Forwarding expenses | 20,250 | 11,615 | 38,645 | 23,702 | ||||||||||||
Net revenue | 4,123 | 3,713 | 7,988 | 7,705 | ||||||||||||
Net revenue margin | 16.9 | % | 24.2 | % | 17.1 | % | 24.5 | % | ||||||||
Selling, general & administrative | 3,743 | 3,952 | 7,117 | 7,590 | ||||||||||||
Income (loss) from operations | $ | 380 | $ | (239 | ) | $ | 871 | $ | 115 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
2021 | 2020 | 2021 | 2020 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 2,529 | $ | 2,056 | $ | 4,398 | $ | 3,926 | ||||||||
Cost of sales | 1,163 | 908 | 2,041 | 1,753 | ||||||||||||
Gross profit | 1,366 | 1,148 | 2,357 | 2,173 | ||||||||||||
Gross profit margin | 54.0 | % | 55.8 | % | 53.6 | % | 55.3 | % | ||||||||
Selling, general and administrative | 683 | 701 | 1,325 | 1,383 | ||||||||||||
Income from Operations | $ | 683 | $ | 447 | $ | 1,032 | $ | 790 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Three Months Ended December 31, | ||||||||||||||||||||
(in thousands) | 2021 | 2020 | ||||||||||||||||||||||
Revenue | $ | 3,240 | $ | 1,737 | $ | 5,589 | $ | 3,609 | $ | 3,244 | $ | 2,349 | ||||||||||||
Cost of sales | 889 | 375 | 1,431 | 757 | 830 | 542 | ||||||||||||||||||
Cost recognized upon sales of acquired inventory | 291 | 227 | 505 | 447 | ||||||||||||||||||||
Cost recognized upon sale of acquired inventory | 171 | 214 | ||||||||||||||||||||||
Gross profit | 2,060 | 1,135 | 3,653 | 2,405 | $ | 2,243 | $ | 1,593 | ||||||||||||||||
Gross profit margin | 63.6 | % | 65.3 | % | 65.4 | % | 66.6 | % | 69.1 | % | 67.8 | % | ||||||||||||
Selling, general and administrative | 1,213 | 1,071 | 2,189 | 2,051 | ||||||||||||||||||||
Income from Operations | $ | 847 | $ | 64 | $ | 1,464 | $ | 354 | ||||||||||||||||
Selling, general and administrative expenses | $ | 1,250 | $ | 976 | ||||||||||||||||||||
Income from operations | $ | 993 | $ | 617 |
Three Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Revenue | $ | 2,514 | $ | 1,869 | ||||
Cost of revenues | 1,214 | 878 | ||||||
Gross profit | $ | 1,300 | $ | 991 | ||||
Gross profit margin | 51.7 | % | 53.0 | % | ||||
Selling, general and administrative expenses | $ | 729 | $ | 642 | ||||
Income from operations | $ | 571 | $ | 349 |
Three Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
(In thousands) | ||||||||
Total income from operating segments | $ | 4,161 | $ | 1,457 | ||||
Administrative expenses | (1,000 | ) | (707 | ) | ||||
Amortization expense | (509 | ) | (251 | ) | ||||
Stock-based compensation | (10 | ) | (10 | ) | ||||
Total Corporate expenses | (1,519 | ) | (968 | ) | ||||
Interest expense | (279 | ) | (119 | ) | ||||
Net income before taxes | 2,363 | 370 | ||||||
Income tax expense | (675 | ) | (115 | ) | ||||
Net income | 1,688 | 255 | ||||||
Preferred stock dividends | (211 | ) | (174 | ) | ||||
Net income Available to Common Stockholders | $ | 1,477 | $ | 81 |
Three Months Ended March 31, | Six Months Ended March 31, | |||||||||||||||
(in thousands) | 2021 | 2020 | 2021 | 2020 | ||||||||||||
Total income from operating segments | $ | 1,910 | $ | 272 | $ | 3,367 | $ | 1,259 | ||||||||
Administrative expenses | (764 | ) | (804 | ) | (1,471 | ) | (1,534 | ) | ||||||||
Amortization expense | (293 | ) | (243 | ) | (544 | ) | (486 | ) | ||||||||
Stock-based compensation | (12 | ) | (56 | ) | (22 | ) | (111 | ) | ||||||||
Total Corporate expenses | (1,069 | ) | (1,103 | ) | (2,037 | ) | (2,131 | ) | ||||||||
Interest expense | (158 | ) | (141 | ) | (277 | ) | (304 | ) | ||||||||
Gain on Paycheck Protection Program loan forgiveness | 135 | — | 135 | — | ||||||||||||
Net income (loss) before taxes | 818 | (972 | ) | 1,188 | (1,176 | ) | ||||||||||
Income tax (expense) benefit | (222 | ) | 35 | (337 | ) | 119 | ||||||||||
Net income (loss) | 596 | (937 | ) | 851 | (1,057 | ) | ||||||||||
Preferred stock dividends | (195 | ) | (175 | ) | (369 | ) | (326 | ) | ||||||||
Net Income (Loss) Available to Common Stockholders | $ | 401 | $ | (1,112 | ) | $ | 482 | $ | (1,383 | ) |
ITEM 1A. | RISK FACTORS |
Rule 13a-14(a)/15d-14(a) Certification of Principal Executive Officer (filed herewith) | |
Rule 13a-14(a)/15d-14(a) Certification of Principal Financial Officer (filed herewith) | |
Section 1350 Certification of Principal Executive Officer (filed herewith) | |
Section 1350 Certification of Principal Financial Officer (filed herewith) | |
101 | Interactive data files providing financial information from the Company’s Quarterly Report on Form 10-Q for the quarter ended |
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted as Exhibit 101) (filed herewith) |
Dated: | JANEL CORPORATION |
Registrant | |
/s/ Dominique Schulte | |
Dominique Schulte | |
Chairman, President and Chief Executive Officer | |
(Principal Executive Officer) | |
Dated: | JANEL CORPORATION |
Registrant | |
/s/ Vincent A. Verde | |
Vincent A. Verde | |
Principal Financial Officer, Treasurer and Secretary |