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 5. | Other Information | 35 | |
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 |
June 30, | September 30, 2021 | |||||||
ASSETS | ||||||||
Current Assets: | ||||||||
Cash | $ | 3,836 | $ | 6,234 | ||||
Accounts receivable, net of allowance for doubtful accounts | 61,984 | 52,312 | ||||||
Inventory, net | 4,133 | 3,227 | ||||||
Prepaid expenses and other current assets | 3,726 | 3,002 | ||||||
Total current assets | 73,679 | 64,775 | ||||||
Property and Equipment, net | 5,103 | 4,977 | ||||||
Other Assets: | ||||||||
Intangible assets, net | 22,689 | 24,173 | ||||||
Goodwill | 18,598 | 18,486 | ||||||
Operating lease right of use asset | 5,505 | 2,936 | ||||||
Security deposits and other long-term assets | 532 | 577 | ||||||
Total other assets | 47,324 | 46,172 | ||||||
Total assets | $ | 126,106 | $ | 115,924 | ||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
Current Liabilities: | ||||||||
Line of credit | $ | 22,920 | $ | 29,637 | ||||
Accounts payable – trade | 47,585 | 37,243 | ||||||
Accrued expenses and other current liabilities | 8,276 | 6,311 | ||||||
Dividends payable | 1,673 | 2,427 | ||||||
Current portion of earnout | 1,054 | 1,054 | ||||||
Current portion of deferred acquisition payments | 192 | 188 | ||||||
Current portion of subordinated promissory note-related party | 450 | 550 | ||||||
Current portion of long-term debt | 874 | 868 | ||||||
Current portion of operating lease liabilities | 1,623 | 1,281 | ||||||
Total current liabilities | 84,647 | 79,559 | ||||||
Other Liabilities: | ||||||||
Long-term debt | 4,017 | 4,744 | ||||||
Long-term portion of earnout | 2,546 | 2,546 | ||||||
Subordinated promissory notes-related party | 5,475 | 5,525 | ||||||
Long-term portion of deferred acquisition payments | 187 | 183 | ||||||
Mandatorily redeemable non-controlling interest | 841 | 783 | ||||||
Deferred income taxes | 2,114 | 2,299 | ||||||
Long-term operating lease liabilities | 4,047 | 1,751 | ||||||
Other liabilities | 371 | 415 | ||||||
Total other liabilities | 19,598 | 18,246 | ||||||
Total liabilities | 104,245 | 97,805 | ||||||
Stockholders’ Equity: | ||||||||
Preferred Stock, $0.001 par value; 100,000 shares authorized | ||||||||
Series B 5,700 shares authorized, 0 shares issued and outstanding as of June 30, 2022 and 31 shares issued and outstanding as of September 30, 2021 | 0 | 0 | ||||||
Series C 30,000 shares authorized and 11,368 and 20,960 shares issued and outstanding at June 30, 2022 and September 30, 2021, liquidation value of $7,357 and $12,907 at June 30, 2022 and September 30, 2021, respectively | 0 | 0 | ||||||
Common stock, $0.001 par value; 4,500,000 shares authorized, 1,077,718 issued and 1,057,718 outstanding as of June 30, 2022 and 962,207 issued and 942,207 outstanding as of September 30, 2021 | 1 | 1 | ||||||
Paid-in capital | 13,461 | 14,838 | ||||||
Common Treasury stock, at cost, 20,000 shares | (240 | ) | (240 | ) | ||||
Accumulated earnings | 8,639 | 3,520 | ||||||
Total stockholders’ equity | 21,861 | 18,119 | ||||||
Total liabilities and stockholders’ equity | $ | 126,106 | $ | 115,924 |
Three Months Ended December 31, | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Revenue | $ | 83,314 | $ | 26,478 | $ | 78,984 | $ | 34,826 | $ | 243,149 | $ | 91,446 | ||||||||||||
Forwarding expenses and cost of revenues | 67,825 | 20,029 | 61,819 | 26,058 | 193,986 | 68,680 | ||||||||||||||||||
Gross profit | 15,489 | 6,449 | 17,165 | 8,768 | 49,163 | 22,766 | ||||||||||||||||||
Cost and Expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 12,338 | 5,709 | 13,505 | 7,158 | 39,718 | 19,282 | ||||||||||||||||||
Amortization of intangible assets | 509 | 251 | 489 | 288 | 1,485 | 832 | ||||||||||||||||||
Total Costs and Expenses | 12,847 | 5,960 | 13,994 | 7,446 | 41,203 | 20,114 | ||||||||||||||||||
Income from Operations | 2,642 | 489 | 3,171 | 1,322 | 7,960 | 2,652 | ||||||||||||||||||
Other Items: | ||||||||||||||||||||||||
Interest expense | (279 | ) | (119 | ) | (299 | ) | (141 | ) | (847 | ) | (418 | ) | ||||||||||||
Gain on Paycheck Protection Program loan forgiveness | 0 | 0 | 0 | 135 | ||||||||||||||||||||
Income Before Income Taxes | 2,363 | 370 | 2,872 | 1,181 | 7,113 | 2,369 | ||||||||||||||||||
Income tax expense | (675 | ) | (115 | ) | (714 | ) | (311 | ) | (1,994 | ) | (648 | ) | ||||||||||||
Net Income | 1,688 | 255 | 2,158 | 870 | 5,119 | 1,721 | ||||||||||||||||||
Preferred stock dividends | (211 | ) | (174 | ) | (71 | ) | (197 | ) | (515 | ) | (566 | ) | ||||||||||||
Non-controlling interest dividends | 0 | 0 | (61 | ) | 0 | |||||||||||||||||||
Net Income Available to Common Stockholders | $ | 1,477 | $ | 81 | $ | 2,087 | $ | 673 | $ | 4,543 | $ | 1,155 | ||||||||||||
Net income per share | ||||||||||||||||||||||||
Basic | $ | 1.76 | $ | 0.27 | $ | 2.04 | $ | 0.93 | $ | 5.13 | $ | 1.84 | ||||||||||||
Diluted | $ | 1.66 | $ | 0.26 | $ | 1.93 | $ | 0.88 | $ | 4.85 | $ | 1.75 | ||||||||||||
Net income per share attributable to common stockholders: | ||||||||||||||||||||||||
Basic | $ | 1.54 | $ | 0.09 | $ | 1.97 | $ | 0.73 | $ | 4.56 | $ | 1.24 | ||||||||||||
Diluted | $ | 1.45 | $ | 0.08 | $ | 1.87 | $ | 0.68 | $ | 4.31 | $ | 1.17 | ||||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||
Basic | 959.1 | 935.9 | 1,057.7 | 939.6 | 996.9 | 937.2 | ||||||||||||||||||
Diluted | 1,018.1 | 966.8 | 1,116.6 | 994.8 | 1,055.0 | 981.8 |
PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | COMMON TREASURY STOCK | ACCUMULATED EARNINGS (DEFICIT) | TOTAL EQUITY | PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | COMMON TREASURY STOCK | ACCUMULATED EARNINGS | TOTAL EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SHARES | $ | SHARES | $ | $ | SHARES | $ | $ | $ | SHARES | $ | SHARES | $ | $ | SHARES | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - September 30, 2021 | 20,991 | $ | 0 | 962,207 | $ | 1 | $ | 14,838 | 20,000 | $ | (240 | ) | $ | 3,520 | $ | 18,119 | 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 | — | 0 | — | 0 | 0 | — | 0 | 1,688 | 1,688 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | — | 0 | — | 0 | (211 | ) | — | 0 | 0 | (211 | ) | — | 0 | — | 0 | (211 | ) | — | 0 | 0 | (211 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 0 | — | 0 | 29 | — | 0 | 0 | 29 | — | 0 | — | 0 | 29 | — | 0 | 0 | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercise | 0 | 0 | 17,500 | 0 | 85 | 0 | 0 | 0 | 85 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock option 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 | 20,991 | 0 | 979,707 | 1 | 14,741 | 20,000 | (240 | ) | 5,208 | 19,710 | ||||||||||||||||||||||||||||||||||||||||||||||
Balance - September 30, 2020 | 19,791 | 0 | 918,652 | $ | 1 | $ | 14,604 | 20,000 | $ | (240 | ) | $ | (1,683 | ) | $ | 12,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | 0 | — | 0 | 0 | — | 0 | 255 | 255 | — | 0 | — | 0 | 0 | — | 0 | 1,273 | 1,273 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | — | 0 | — | 0 | (174 | ) | — | 0 | 0 | (174 | ) | — | 0 | — | 0 | (233 | ) | — | 0 | 0 | (233 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | 0 | — | 0 | 10 | — | 0 | 0 | 10 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to non-controlling interest | — | 0 | — | 0 | (61 | ) | — | 0 | 0 | (61 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred C shares purchased | (4,687 | ) | 0 | 0 | 0 | (1,731 | ) | — | — | 0 | (1,731 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred C shares converted | (4,905 | ) | 0 | 65,205 | 0 | 0 | — | — | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred B shares converted | (31 | ) | 0 | 306 | 0 | 0 | — | — | 0 | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | 0 | 0 | 15,000 | — | 718 | 0 | 0 | 0 | 718 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock options exercise | 0 | 0 | 2,502 | 0 | 21 | 0 | 0 | 0 | 21 | 0 | 0 | 17,500 | 0 | 76 | 0 | 0 | 0 | 76 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – December 31, 2020 | 19,791 | $ | 0 | 921,154 | $ | 1 | $ | 14,461 | 20,000 | $ | (240 | ) | $ | (1,428 | ) | $ | 12,794 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2022 | 11,368 | $ | 0 | 1,077,718 | $ | 1 | $ | 13,510 | 20,000 | $ | (240 | ) | $ | 6,481 | $ | 19,752 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | 0 | — | 0 | 0 | — | 0 | 2,158 | 2,158 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | — | 0 | — | 0 | (71 | ) | — | 0 | 0 | (71 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | 0 | — | 0 | 22 | — | 0 | 0 | 22 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance – June 30, 2022 | 11,368 | $ | 0 | 1,077,718 | $ | 1 | $ | 13,461 | 20,000 | $ | (240 | ) | $ | 8,639 | $ | 21,861 |
PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | COMMON TREASURY STOCK | ACCUMULATED EARNINGS (DEFICIT) | TOTAL EQUITY | |||||||||||||||||||||||||||||||
SHARES | $ | SHARES | $ | $ | SHARES | $ | $ | $ | ||||||||||||||||||||||||||||
Balance - September 30, 2020 | 19,791 | 0 | 918,652 | $ | 1 | $ | 14,604 | 20,000 | $ | (240 | ) | $ | (1,683 | ) | $ | 12,682 | ||||||||||||||||||||
Net Income | — | 0 | — | 0 | 0 | — | 0 | 255 | 255 | |||||||||||||||||||||||||||
Dividends to preferred stockholders | — | 0 | — | 0 | (174 | ) | — | 0 | 0 | (174 | ) | |||||||||||||||||||||||||
Stock-based compensation | — | 0 | — | 0 | 10 | — | 0 | 0 | 10 | |||||||||||||||||||||||||||
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 | |||||||||||||||||||||||||
Net Income | — | 0 | — | 0 | 0 | — | 0 | 596 | 596 | |||||||||||||||||||||||||||
Dividends to preferred stockholders | — | 0 | — | 0 | (195 | ) | — | 0 | 0 | (195 | ) | |||||||||||||||||||||||||
Stock based compensation | — | 0 | — | 0 | 12 | — | 0 | 0 | 12 | |||||||||||||||||||||||||||
Balance - March 31, 2021 | 19,791 | $ | 0 | 921,154 | $ | 1 | $ | 14,278 | 20,000 | $ | (240 | ) | $ | (832 | ) | $ | 13,207 | |||||||||||||||||||
Net Income | — | 0 | — | 0 | 0 | — | 0 | 870 | 870 | |||||||||||||||||||||||||||
Dividends to preferred stockholders | — | 0 | — | 0 | (197 | ) | — | 0 | 0 | (197 | ) | |||||||||||||||||||||||||
Stock based compensation | — | 0 | — | 0 | 13 | — | 0 | 0 | 13 | |||||||||||||||||||||||||||
Stock options exercise | 0 | 0 | 6,053 | 0 | 25 | 0 | 0 | 0 | 25 | |||||||||||||||||||||||||||
Balance – June 30, 2021 | 19,791 | $ | 0 | 927,207 | $ | 1 | $ | 14,119 | 20,000 | $ | (240 | ) | $ | 38 | $ | 13,918 |
Three Months Ended December 31, | Nine Months Ended June 30, | |||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||
Net income | $ | 1,688 | $ | 255 | $ | 5,119 | $ | 1,721 | ||||||||
Adjustments to reconcile net income (loss) to net cash provided by operating activities: | ||||||||||||||||
Provision for (recovery of) uncollectible accounts | 102 | (32 | ) | 354 | (22 | ) | ||||||||||
Depreciation | 107 | 86 | 351 | 265 | ||||||||||||
Deferred income tax provision | 133 | 86 | (185 | ) | 488 | |||||||||||
Amortization of intangible assets | 509 | 251 | 1,485 | 832 | ||||||||||||
Amortization of acquired inventory valuation | 171 | 214 | 393 | 732 | ||||||||||||
Amortization of loan costs | 2 | 2 | 7 | 7 | ||||||||||||
Stock-based compensation | 40 | 24 | 800 | 85 | ||||||||||||
Gain on Paycheck Protection Program loan forgiveness | 0 | (135 | ) | |||||||||||||
Changes in fair value of mandatorily redeemable noncontrolling interest | 58 | 86 | 58 | 86 | ||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||||||
Accounts receivable | (4,952 | ) | (1,857 | ) | (10,026 | ) | (6,558 | ) | ||||||||
Inventory | (464 | ) | (150 | ) | (1,299 | ) | (319 | ) | ||||||||
Prepaid expenses and other current assets | 684 | (326 | ) | (724 | ) | (205 | ) | |||||||||
Security deposits and other long-term assets | 67 | (40 | ) | 44 | 6 | |||||||||||
Accounts payable and accrued expenses | 7,172 | 607 | 12,275 | 3,144 | ||||||||||||
Other liabilities | (26 | ) | (18 | ) | 26 | 12 | ||||||||||
Net cash provided by (used in) operating activities | 5,291 | (812 | ) | |||||||||||||
Net cash provided by operating activities | 8,678 | 139 | ||||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||
Acquisition of property and equipment, net of disposals | (169 | ) | (55 | ) | (477 | ) | (127 | ) | ||||||||
Acquisitions, net of cash acquired | 0 | (2,806 | ) | |||||||||||||
Net cash used in investing activities | (169 | ) | (2,861 | ) | ||||||||||||
Acquisitions | (112 | ) | (2,874 | ) | ||||||||||||
Net cash (used in) investing activities | (589 | ) | (3,001 | ) | ||||||||||||
Cash Flows From Financing Activities: | ||||||||||||||||
Repayments of term loan | (292 | ) | (206 | ) | (728 | ) | (1,333 | ) | ||||||||
Proceeds from stock options exercise | 85 | 21 | 161 | 46 | ||||||||||||
Line of credit, (payments) proceeds, net | (5,795 | ) | 2,380 | (6,717 | ) | 4,539 | ||||||||||
Repayment of subordinated promissory notes | (168 | ) | (39 | ) | (142 | ) | (813 | ) | ||||||||
Dividends paid to minority shareholders | (61 | ) | 0 | |||||||||||||
Dividends paid to preferred stockholders | (657 | ) | 0 | |||||||||||||
Repurchase of Series C Preferred Stock | (2,343 | ) | 0 | |||||||||||||
Net cash (used in) provided by financing activities | (6,170 | ) | 2,156 | (10,487 | ) | 2,439 | ||||||||||
Net decrease in cash | (1,048 | ) | (1,517 | ) | ||||||||||||
Net (decrease) in cash | (2,398 | ) | (423 | ) | ||||||||||||
Cash at beginning of the period | 6,234 | 3,349 | 6,234 | 3,349 | ||||||||||||
Cash at end of period | $ | 5,186 | $ | 1,832 | $ | 3,836 | $ | 2,926 | ||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Interest | $ | 194 | $ | 99 | $ | 597 | $ | 361 | ||||||||
Income taxes | $ | 10 | $ | 12 | $ | 1,261 | $ | 38 | ||||||||
Non-cash operating activities: | ||||||||||||||||
Gain on Paycheck Protection Program loan forgiveness | $ | 0 | $ | 135 | ||||||||||||
Non-cash investing activities: | ||||||||||||||||
Purchase price adjustments-ELFS | $ | 112 | 0 | |||||||||||||
Due to seller 338 election | 0 | $ | 30 | |||||||||||||
Subordinated promissory notes of ICT | $ | 0 | $ | 1,850 | $ | 0 | $ | 1,760 | ||||||||
Non-cash financing activities: | ||||||||||||||||
Dividends declared to preferred stockholders | $ | 211 | $ | 174 | $ | 515 | $ | 566 |
1. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
Three Months Ended December 31, | Three Months Ended December 31, | |||||||
Service Type | 2021 | 2020 | ||||||
Ocean freight | $ | 32,876 | $ | 9,039 | ||||
Trucking | 21,775 | 4,352 | ||||||
Air freight | 13,874 | 6,202 | ||||||
Other | 5,330 | 12 | ||||||
Customs brokerage | 3,701 | 2,655 | ||||||
Total | $ | 77,556 | $ | 22,260 |
Three Months Ended June 30, | Three Months Ended June 30, | Nine Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||
Service Type | ||||||||||||||||
Ocean freight | $ | 28,633 | $ | 13,082 | $ | 93,794 | $ | 33,556 | ||||||||
Trucking | 24,920 | 5,051 | 70,234 | 14,104 | ||||||||||||
Air freight | 13,716 | 7,735 | 40,653 | 18,808 | ||||||||||||
Other | 3,619 | 25 | 12,064 | 83 | ||||||||||||
Customs brokerage | 2,796 | 3,476 | 9,568 | 9,451 | ||||||||||||
Total | $ | 73,684 | $ | 29,369 | $ | 226,313 | $ | 76,002 |
2. | ACQUISITION |
Three Months Ended December 31, 2020 | ||||||||||||
(in thousands, except per share data) | Three Months ended June 30, 2021 | Nine Months ended June 30, 2021 | ||||||||||
Revenue | $ | 44,375 | $ | 54,207 | $ | 146,098 | ||||||
Income from Operations | $ | 630 | $ | 2,263 | $ | 4,313 | ||||||
Net Income | $ | 245 | $ | 1,046 | $ | 2,658 | ||||||
Net Income Available to Common Stockholders | $ | 71 | $ | 849 | $ | 2,092 | ||||||
Net income per share: | ||||||||||||
Net Income per share: | ||||||||||||
Basic | $ | 0.26 | $ | 1.12 | $ | 2.84 | ||||||
Diluted | $ | 0.25 | $ | 1.06 | $ | 2.71 | ||||||
Net income per share attributable to common stockholders: | ||||||||||||
Net Income per share attributable to Common Stockholders: | ||||||||||||
Basic | $ | 0.08 | $ | 0.90 | $ | 2.23 | ||||||
Diluted | $ | 0.07 | $ | 0.86 | $ | 2.13 |
3. | INVENTORY |
December 31, 2021 | September 30, 2021 | June 30, 2022 | September 30, 2021 | |||||||||||||
Finished goods | $ | 860 | $ | 919 | $ | 1,097 | $ | 919 | ||||||||
Work-in-process | 944 | 968 | 777 | 968 | ||||||||||||
Raw materials | 1,745 | 1,365 | 2,329 | 1,365 | ||||||||||||
Gross inventory | 3,549 | 3,252 | 4,203 | 3,252 | ||||||||||||
Less – reserve for inventory valuation | (28 | ) | (25 | ) | (70 | ) | (25 | ) | ||||||||
Inventory net | $ | 3,521 | $ | 3,227 | $ | 4,133 | $ | 3,227 |
4. | INTANGIBLE ASSETS |
June 30, 2022 | 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 | (6,953 | ) | (5,469 | ) | |||||
Intangible assets, net | $ | 22,689 | $ | 24,173 |
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 | June 30, 2022 | September 30, 2021 | |||||||||||||
Logistics | $ | 18,174 | $ | 18,174 | $ | 18,174 | $ | 18,174 | ||||||||
Life Sciences | 3,768 | 3,768 | 3,768 | 3,768 | ||||||||||||
Manufacturing | 7,700 | 7,700 | 7,700 | 7,700 | ||||||||||||
29,642 | 29,642 | 29,642 | 29,642 | |||||||||||||
Less: Accumulated Amortization | (5,978 | ) | (5,469 | ) | (6,953 | ) | (5,469 | ) | ||||||||
Intangible assets, net | $ | 23,664 | $ | 24,173 | $ | 22,689 | $ | 24,173 |
5. | GOODWILL |
December 31, 2021 | September 30, 2021 | June 30, 2022 | September 30, 2021 | |||||||||||||
Logistics | $ | 9,063 | $ | 9,063 | $ | 9,175 | $ | 9,063 | ||||||||
Life Sciences | 4,377 | 4,377 | 4,377 | 4,377 | ||||||||||||
Manufacturing | 5,046 | 5,046 | 5,046 | 5,046 | ||||||||||||
Total | $ | 18,486 | $ | 18,486 | $ | 18,598 | $ | 18,486 |
6. | NOTES PAYABLE – BANKS |
(A) | Santander Bank Facility |
(B) | First Merchants Bank Credit Facility |
December 31, 2021 | September 30, 2021 | |||||||||||||||
(in thousands) | ||||||||||||||||
(in thousands) | June 30, 2022 | September 30, 2021 | ||||||||||||||
Total Debt* | $ | 3,168 | $ | 3,368 | $ | 2,768 | $ | 3,368 | ||||||||
Less Current Portion | (809 | ) | (809 | ) | (809 | ) | (809 | ) | ||||||||
Long Term Portion | $ | 2,359 | $ | 2,559 | $ | 1,959 | $ | 2,559 |
* | Note: |
(C) | First Northern Bank of Dixon |
December 31, 2021 | September 30, 2021 | |||||||||||||||
(in thousands) | ||||||||||||||||
(in thousands) | June 30, 2022 | September 30, 2021 | ||||||||||||||
Total Debt* | $ | 2,154 | $ | 2,244 | $ | 2,123 | $ | 2,244 | ||||||||
Less Current Portion | (63 | ) | (59 | ) | (65 | ) | (59 | ) | ||||||||
Long Term Portion | $ | 2,091 | $ | 2,185 | $ | 2,058 | $ | 2,185 |
* | Long-term debt under the First Northern Loan Agreement is due in monthly installments of $12 plus monthly interest, at 4.18% per |
7. | SUBORDINATED PROMISSORY NOTES - RELATED PARTY |
December 31, 2021 | September 30, 2021 | |||||||||||||||
(in thousands) | ||||||||||||||||
(in thousands) | June 30, 2022 | September 30, 2021 | ||||||||||||||
Total subordinated promissory notes | $ | 5,904 | $ | 6,075 | $ | 5,925 | $ | 6,075 | ||||||||
Less current portion of subordinated promissory notes | (500 | ) | (550 | ) | (450 | ) | (550 | ) | ||||||||
Long term portion of subordinated promissory notes | $ | 5,404 | $ | 5,525 | $ | 5,475 | $ | 5,525 |
8. | STOCKHOLDERS’ EQUITY |
(A) | Preferred Stock |
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. |
Risk-free interest rate | 1.10% | ||
Expected option term in years | 5.5-6.5 | ||
Expected volatility | 100.3% - 110.3% | ||
Dividend yield | 0% | ||
Weighted average grant date fair value | $ |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | 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 | 98,994 | $ | 5.93 | 4.5 | $ | 1,689.38 | ||||||||||||||||||||
Granted | 10,000 | $ | 23.00 | 9.8 | $ | 0 | 10,000 | $ | 23.00 | 9.3 | $ | 0 | ||||||||||||||||||||
Exercised | (17,500 | ) | $ | 4.87 | — | $ | — | (35,000 | ) | $ | 4.60 | — | $ | — | ||||||||||||||||||
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 | ||||||||||||||||||||||||||
Outstanding balance at June 30, 2022 | 73,994 | $ | 8.87 | 5.1 | $ | 2,303.14 | ||||||||||||||||||||||||||
Exercisable at June 30, 2022 | 56,498 | $ | 6.36 | 4.0 | $ | 1,900.74 |
Risk-free interest rate | 1.10% | |||
Expected option term in years | 5.5-6.5 | |||
Expected volatility | 39% | |||
Dividend yield | 0% | |||
Weighted average grant date fair value | $ |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | 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 | 38,961 | $ | 10.28 | 6.62 | $ | 78.16 | ||||||||||||||||||||
Granted | 7,018 | $ | 17.16 | 9.75 | $ | 0 | 7,018 | $ | 17.16 | 9.25 | $ | 0 | ||||||||||||||||||||
Exercised | (10,372 | ) | $ | 8.30 | — | $ | — | (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 | ||||||||||||||||||||||||||
Outstanding balance at June 30, 2022 | 35,607 | $ | 12.22 | 7.02 | $ | 175.98 | ||||||||||||||||||||||||||
Exercisable at June 30, 2022 | 21,663 | $ | 10.72 | 6.00 | $ | 139.47 |
(B) | Restricted Stock |
INCOME PER COMMON SHARE |
For the three Months Ended December 31, | ||||||||
2021 | 2020 | |||||||
Income: | ||||||||
Net income | $ | 1,688 | $ | 255 | ||||
Preferred stock dividends | (211 | ) | (174 | ) | ||||
Net income available to common stockholders | $ | 1,477 | $ | 81 | ||||
Common Shares: | ||||||||
Basic - weighted average common shares | 959.1 | 935.9 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 58.7 | 30.6 | ||||||
Convertible preferred stock | 0.3 | 0.3 | ||||||
Diluted - weighted average common stock | 1,018.1 | 966.8 | ||||||
Income per Common Share: | ||||||||
Basic - | ||||||||
Net income | $ | 1.76 | $ | 0.27 | ||||
Preferred stock dividends | (0.22 | ) | (0.18 | ) | ||||
Net income attributable to common stockholders | $ | 1.54 | $ | 0.09 | ||||
Diluted - | ||||||||
Net income | $ | 1.66 | $ | 0.26 | ||||
Preferred stock dividends | (0.21 | ) | (0.18 | ) | ||||
Net income available to common stockholders | $ | 1.45 | $ | 0.08 |
For the Three Months Ended June 30, | For the Nine Months Ended June 30, | |||||||||||||||
(in thousands, except per share data) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Income: | ||||||||||||||||
Net income | $ | 2,158 | $ | 870 | $ | 5,119 | $ | 1,721 | ||||||||
Preferred stock dividends | (71 | ) | (197 | ) | (515 | ) | (566 | ) | ||||||||
Non-controlling interest dividends | 0 | 0 | (61 | ) | 0 | |||||||||||
Net Income available to common stockholders | $ | 2,087 | $ | 673 | $ | 4,543 | $ | 1,155 | ||||||||
Common Shares: | ||||||||||||||||
Basic - weighted average common shares | 1,057.7 | 939.6 | 996.9 | 937.2 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options | 58.9 | 54.9 | 58.0 | 44.3 | ||||||||||||
Convertible preferred stock | 0 | 0.3 | 0.1 | 0.3 | ||||||||||||
Diluted - weighted average common stock | 1,116.6 | 994.8 | 1,055.0 | 981.8 | ||||||||||||
Income per Common Share: | ||||||||||||||||
Basic - | ||||||||||||||||
Net income | $ | 2.04 | $ | 0.93 | $ | 5.13 | $ | 1.84 | ||||||||
Preferred stock dividends | (0.07 | ) | (0.20 | ) | (0.51 | ) | (0.60 | ) | ||||||||
Non-controlling interest dividends | 0 | 0 | (0.06 | ) | 0 | |||||||||||
Net Income available to common stockholders | $ | 1.97 | $ | 0.73 | $ | 4.56 | $ | 1.24 | ||||||||
Diluted - | ||||||||||||||||
Net income | $ | 1.93 | $ | 0.88 | $ | 4.85 | $ | 1.75 | ||||||||
Preferred stock dividends | (0.06 | ) | (0.20 | ) | (0.48 | ) | (0.58 | ) | ||||||||
Non-controlling interest dividends | 0 | 0 | (0.06 | ) | 0 | |||||||||||
Net income available to common stockholders | $ | 1.87 | $ | 0.68 | $ | 4.31 | $ | 1.17 |
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 Three Months Ended June 30, 2022 | For the Three Months Ended June 30, 2021 | For the Nine Months Ended June 30, 2022 | For the Nine Months Ended June 30, 2021 | |||||||||||||
Federal taxes at statutory rates | $ | (604 | ) | $ | (247 | ) | $ | (1,494 | ) | $ | (497 | ) | ||||
Permanent differences | 0 | 13 | 0 | 20 | ||||||||||||
State and local taxes, net of Federal benefit | (110 | ) | (77 | ) | (500 | ) | (171 | ) | ||||||||
Total | $ | (714 | ) | $ | (311 | ) | $ | (1,994 | ) | $ | (648 | ) |
�� | 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 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 | 67,825 | 65,610 | 1,001 | 1,214 | 0 | |||||||||||||||
Gross margin | 15,489 | 11,946 | 2,243 | 1,300 | 0 | |||||||||||||||
Selling, general and administrative | 12,338 | 9,349 | 1,250 | 729 | 1,010 | |||||||||||||||
Amortization of intangible assets | 509 | 0 | 0 | 0 | 509 | |||||||||||||||
Income (loss) from operations | 2,642 | 2,597 | 993 | 571 | (1,519 | ) | ||||||||||||||
Interest expense | 279 | 224 | 29 | 26 | 0 | |||||||||||||||
Identifiable assets | 122,237 | 64,899 | 10,083 | 4,017 | 43,238 | |||||||||||||||
Capital expenditures | $ | 169 | $ | 65 | $ | 102 | $ | 2 | $ | 0 |
For the three months ended June 30, 2022 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||
Revenue | $ | 78,984 | $ | 73,684 | $ | 2,738 | $ | 2,562 | $ | 0 | ||||||||||
Forwarding expenses and cost of revenues | 61,819 | 59,889 | 648 | 1,282 | 0 | |||||||||||||||
Gross profit | 17,165 | 13,795 | 2,090 | 1,280 | 0 | |||||||||||||||
Selling, general and administrative | 13,505 | 10,387 | 1,225 | 676 | 1,217 | |||||||||||||||
Amortization of intangible assets | 489 | 0 | 0 | 0 | 489 | |||||||||||||||
Income (loss) from operations | 3,171 | 3,408 | 865 | 604 | (1,706 | ) | ||||||||||||||
Interest expense | 299 | 242 | 31 | 26 | 0 | |||||||||||||||
Identifiable assets | 126,106 | 67,196 | 12,137 | 4,363 | 42,410 | |||||||||||||||
Capital expenditures | $ | 207 | $ | 171 | $ | 13 | $ | 23 | $ | 0 |
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 | 20,029 | 18,395 | 756 | 878 | 0 | |||||||||||||||
Gross margin | 6,449 | 3,865 | 1,593 | 991 | 0 | |||||||||||||||
Selling, general and administrative | 5,709 | 3,374 | 976 | 642 | 717 | |||||||||||||||
Amortization of intangible assets | 251 | 0 | 0 | 0 | 251 | |||||||||||||||
Operating income (loss) | 489 | 491 | 617 | 349 | (968 | ) | ||||||||||||||
Interest expense | 119 | 37 | 28 | 47 | 7 | |||||||||||||||
Identifiable assets | 68,224 | 22,418 | 10,252 | 3,501 | 32,053 | |||||||||||||||
Capital expenditures | $ | 55 | $ | 19 | $ | 24 | $ | 12 | $ | 0 |
For the nine months ended June 30, 2022 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||
Revenue | $ | 243,149 | $ | 226,313 | $ | 9,257 | $ | 7,579 | $ | 0 | ||||||||||
Forwarding expenses and cost of revenues | 193,986 | 187,780 | 2,516 | 3,690 | 0 | |||||||||||||||
Gross profit | 49,163 | 38,533 | 6,741 | 3,889 | 0 | |||||||||||||||
Selling, general and administrative | 39,718 | 29,802 | 3,758 | 2,170 | 3,988 | |||||||||||||||
Amortization of intangible assets | 1,485 | 0 | 0 | 0 | 1,485 | |||||||||||||||
Income (loss) from operations | 7,960 | 8,731 | 2,983 | 1,719 | (5,473 | ) | ||||||||||||||
Interest expense | 847 | 683 | 88 | 76 | 0 | |||||||||||||||
Identifiable assets | 126,106 | 67,196 | 12,137 | 4,363 | 42,410 | |||||||||||||||
Capital expenditures | $ | 477 | $ | 260 | $ | 171 | $ | 46 | $ | 0 |
For the three months ended June 30, 2021 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||
Revenue | $ | 34,826 | $ | 29,369 | $ | 3,384 | $ | 2,073 | $ | 0 | ||||||||||
Forwarding expenses and cost of revenues | 26,058 | 24,173 | 941 | 944 | 0 | |||||||||||||||
Gross profit | 8,768 | 5,196 | 2,443 | 1,129 | 0 | |||||||||||||||
Selling, general and administrative | 7,158 | 4,523 | 1,084 | 682 | 869 | |||||||||||||||
Amortization of intangible assets | 288 | 0 | 0 | 0 | 288 | |||||||||||||||
Income (loss) from operations | 1,322 | 673 | 1,359 | 447 | (1,157 | ) | ||||||||||||||
Interest expense | 141 | 62 | 34 | 39 | 6 | |||||||||||||||
Identifiable assets | 72,494 | 26,903 | 10,366 | 3,644 | 31,581 | |||||||||||||||
Capital expenditures | $ | 47 | $ | 33 | $ | 14 | $ | 0 | $ | 0 |
For the nine months ended June 30, 2021 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||
Revenue | $ | 91,446 | $ | 76,002 | $ | 8,973 | $ | 6,471 | $ | 0 | ||||||||||
Forwarding expenses and cost of revenues | 68,680 | 62,818 | 2,877 | 2,985 | 0 | |||||||||||||||
Gross profit | 22,766 | 13,184 | 6,096 | 3,486 | 0 | |||||||||||||||
Selling, general and administrative | 19,282 | 11,640 | 3,273 | 2,007 | 2,362 | |||||||||||||||
Amortization of intangible assets | 832 | 0 | 0 | 0 | 832 | |||||||||||||||
Income (loss) from operations | 2,652 | 1,544 | 2,823 | 1,479 | (3,194 | ) | ||||||||||||||
Interest expense | 418 | 180 | 89 | 129 | 20 | |||||||||||||||
Identifiable assets | 72,494 | 26,903 | 10,366 | 3,644 | 31,581 | |||||||||||||||
Capital expenditures | $ | 218 | $ | 76 | $ | 127 | $ | 15 | $ | 0 |
FAIR VALUE MEASUREMENTS |
Level 3 | December 31, 2021 | September 30, 2021 | June 30, 2022 | September 30, 2021 | ||||||||||||
Contingent earnout liabilities | $ | 3,600 | $ | 3,600 | $ | 3,600 | $ | 3,600 | ||||||||
Level 3 Liabilities | $ | 3,600 | $ | 3,600 | $ | 3,600 | $ | 3,600 |
December 31, 2021 | September 30, 2021 | June 30, 2022 | September 30, 2021 | |||||||||||||
Balance at beginning of period | $ | 3,600 | $ | 0 | ||||||||||||
Balance beginning of period | $ | 3,600 | $ | 0 | ||||||||||||
Fair value of contingent consideration recorded in connection with business combinations | 0 | 3,600 | 0 | 3,600 | ||||||||||||
Change in fair value of contingent consideration | 0 | 0 | 0 | 0 | ||||||||||||
Balance at end of period | $ | 3,600 | $ | 3,600 | ||||||||||||
Balance end of period | $ | 3,600 | $ | 3,600 |
LEASES |
Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Nine Months Ended June 30, 2022 | Nine Months Ended June 30, 2021 | |||||||||||||
Operating lease cost | $ | 457 | $ | 235 | $ | 1,370 | $ | 721 | ||||||||
Short-term lease cost | 123 | 2 | 371 | 14 | ||||||||||||
Total lease cost | $ | 580 | $ | 237 | $ | 1,741 | $ | 735 |
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 |
Year End December 31, 2021 | ||||||||
2022 | $ | 1,798 | ||||||
2023 | 1,441 | $ | 1,620 | |||||
2024 | 1,147 | 1,293 | ||||||
2025 | 853 | 1,032 | ||||||
2026 | 620 | 671 | ||||||
2027 | 626 | |||||||
Thereafter | 1,168 | 853 | ||||||
Total undiscounted loan payments | 7,027 | 6,095 | ||||||
Less: Imputed interest | (522 | ) | (425 | ) | ||||
Total lease obligation | $ | 6,505 | $ | 5,670 |
15. | SUBSEQUENT EVENTS |
Three Months Ended December 31, 2021 | Three Months Ended December 31, 2020 | |||||||||||||||||||||||
Revenues | $ | 83,314 | $ | 26,478 | ||||||||||||||||||||
(in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Nine Months Ended June 30, 2022 | Nine Months Ended June 30, 2021 | ||||||||||||||||||||
Revenue | $ | 78,984 | $ | 34,826 | $ | 243,149 | $ | 91,446 | ||||||||||||||||
Forwarding expenses and cost of revenues | 67,825 | 20,029 | 61,819 | 26,058 | 193,986 | 68,680 | ||||||||||||||||||
Gross profit | 15,489 | 6,449 | 17,165 | 8,768 | 49,163 | 22,766 | ||||||||||||||||||
Operating expenses | 12,847 | 5,960 | 13,994 | 7,446 | 41,203 | 20,114 | ||||||||||||||||||
Operating income | $ | 2,642 | $ | 489 | ||||||||||||||||||||
Income from operations | 3,171 | 1,322 | 7,960 | 2,652 | ||||||||||||||||||||
Net income | $ | 1,688 | $ | 255 | 2,158 | 870 | 5,119 | 1,721 | ||||||||||||||||
Adjusted operating income | $ | 3,362 | $ | 978 | $ | 3,822 | $ | 1,868 | $ | 10,638 | $ | 4,301 |
Three Months Ended December 31, | ||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||
Operating income | $ | 2,642 | $ | 489 | ||||||||||||||||||||
(in thousands) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Nine Months Ended June 30, 2022 | Nine Months Ended June 30, 2021 | ||||||||||||||||||||
Income from operations | $ | 3,171 | $ | 1,322 | $ | 7,960 | $ | 2,652 | ||||||||||||||||
Amortization of intangible assets | 509 | 251 | 489 | 288 | 1,485 | 832 | ||||||||||||||||||
Stock-based compensation | 40 | 24 | 32 | 31 | 800 | 85 | ||||||||||||||||||
Cost recognized on sale of acquired inventory | 171 | 214 | 130 | 227 | 393 | 732 | ||||||||||||||||||
Adjusted operating income | $ | 3,362 | $ | 978 | $ | 3,822 | $ | 1,868 | $ | 10,638 | $ | 4,301 |
Three Months Ended December 31, | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Revenue | $ | 77,556 | $ | 22,260 | $ | 73,684 | $ | 29,369 | $ | 226,313 | $ | 76,002 | ||||||||||||
Forwarding expense | 65,610 | 18,395 | ||||||||||||||||||||||
Gross profit | $ | 11,946 | $ | 3,865 | ||||||||||||||||||||
Forwarding expenses | 59,889 | 24,173 | 187,780 | 62,818 | ||||||||||||||||||||
Gross Profit | 13,795 | 5,196 | 38,533 | 13,184 | ||||||||||||||||||||
Gross profit margin | 15.4 | % | 17.4 | % | 18.7 | % | 17.7 | % | 17.0 | % | 17.3 | % | ||||||||||||
Selling, general and administrative expenses | $ | 9,349 | $ | 3,374 | ||||||||||||||||||||
Selling, general & administrative | 10,387 | 4,523 | 29,802 | 11,640 | ||||||||||||||||||||
Income from operations | $ | 2,597 | $ | 491 | $ | 3,408 | $ | 673 | $ | 8,731 | $ | 1,544 |
Three Months Ended December 31, | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Revenue | $ | 3,244 | $ | 2,349 | $ | 2,738 | $ | 3,384 | $ | 9,257 | $ | 8,973 | ||||||||||||
Cost of sales | 830 | 542 | 518 | 714 | 2,123 | 2,145 | ||||||||||||||||||
Cost recognized upon sale of acquired inventory | 171 | 214 | ||||||||||||||||||||||
Cost recognized upon sales of acquired inventory | 130 | 227 | 393 | 732 | ||||||||||||||||||||
Gross profit | $ | 2,243 | $ | 1,593 | 2,090 | 2,443 | 6,741 | 6,096 | ||||||||||||||||
Gross profit margin | 69.1 | % | 67.8 | % | 76.3 | % | 72.2 | % | 72.8 | % | 67.9 | % | ||||||||||||
Selling, general and administrative expenses | $ | 1,250 | $ | 976 | ||||||||||||||||||||
Income from operations | $ | 993 | $ | 617 | ||||||||||||||||||||
Selling, general and administrative | 1,225 | 1,084 | 3,758 | 3,273 | ||||||||||||||||||||
Income from Operations | $ | 865 | $ | 1,359 | $ | 2,983 | $ | 2,823 |
Three Months Ended December 31, | Three Months Ended June 30, | Nine Months Ended June 30, | ||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Revenue | $ | 2,514 | $ | 1,869 | $ | 2,562 | $ | 2,073 | $ | 7,579 | $ | 6,471 | ||||||||||||
Cost of revenues | 1,214 | 878 | ||||||||||||||||||||||
Cost of sales | 1,282 | 944 | 3,690 | 2,985 | ||||||||||||||||||||
Gross profit | $ | 1,300 | $ | 991 | 1,280 | 1,129 | 3,889 | 3,486 | ||||||||||||||||
Gross profit margin | 51.7 | % | 53.0 | % | 50.0 | % | 54.5 | % | 51.3 | % | 53.9 | % | ||||||||||||
Selling, general and administrative expenses | $ | 729 | $ | 642 | ||||||||||||||||||||
Income from operations | $ | 571 | $ | 349 | ||||||||||||||||||||
Selling, general and administrative | 676 | 682 | 2,170 | 2,007 | ||||||||||||||||||||
Income from Operations | $ | 604 | $ | 447 | $ | 1,719 | $ | 1,479 |
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 June 30, | Nine Months Ended June 30, | |||||||||||||||
(in thousands) | 2022 | 2021 | 2022 | 2021 | ||||||||||||
Total income from operating segments | $ | 4,877 | $ | 2,479 | $ | 13,433 | $ | 5,846 | ||||||||
Corporate expenses | (1,185 | ) | (838 | ) | (3,188 | ) | (2,277 | ) | ||||||||
Amortization expense | (489 | ) | (288 | ) | (1,485 | ) | (832 | ) | ||||||||
Stock-based compensation | (32 | ) | (31 | ) | (800 | ) | (85 | ) | ||||||||
Total Corporate expenses | (1,706 | ) | (1,157 | ) | (5,473 | ) | (3,194 | ) | ||||||||
Interest expense | (299 | ) | (141 | ) | (847 | ) | (418 | ) | ||||||||
Gain on Paycheck Protection Program loan forgiveness | - | - | - | 135 | ||||||||||||
Net income before taxes | 2,872 | 1,181 | 7,113 | 2,369 | ||||||||||||
Income tax expense | (714 | ) | (311 | ) | (1,994 | ) | (648 | ) | ||||||||
Net income | 2,158 | 870 | 5,119 | 1,721 | ||||||||||||
Preferred stock dividends | (71 | ) | (197 | ) | (515 | ) | (566 | ) | ||||||||
Non-controlling interest dividends | - | - | (61 | ) | - | |||||||||||
Net Income Available to Common Stockholders | $ | 2,087 | $ | 673 | $ | 4,543 | $ | 1,155 |
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: August 5, | JANEL CORPORATION |
Registrant | |
/s/ Vincent A. Verde | |
Vincent A. Verde | |
Principal Financial Officer, Treasurer and Secretary |