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 | 25 | |
Item 6. | |||
ITEM 1. | FINANCIAL STATEMENTS |
June 30, 2023 | September 30, 2022 | December 31, 2023 | September 30, 2023 | |||||||||||||
ASSETS | ||||||||||||||||
Current Assets: | ||||||||||||||||
Cash | $ | 2,773 | $ | 6,591 | $ | 1,579 | $ | 2,461 | ||||||||
Accounts receivable, net of allowance for doubtful accounts | 30,454 | 57,077 | 25,965 | 27,518 | ||||||||||||
Inventory, net | 5,094 | 4,802 | 4,628 | 4,850 | ||||||||||||
Prepaid expenses and other current assets | 4,574 | 3,423 | 3,844 | 4,459 | ||||||||||||
Total current assets | 42,895 | 71,893 | 36,016 | 39,288 | ||||||||||||
Property and Equipment, net | 4,965 | 5,044 | 4,845 | 4,922 | ||||||||||||
Other Assets: | ||||||||||||||||
Intangible assets, net | 22,709 | 22,420 | 22,145 | 22,683 | ||||||||||||
Goodwill | 20,271 | 18,622 | 20,317 | 20,317 | ||||||||||||
Investment in marketable securities at fair value | 1,592 | 2,371 | ||||||||||||||
Investment in Rubicon at fair value | 864 | 1,573 | ||||||||||||||
Operating lease right of use asset | 6,030 | 5,660 | 6,853 | 7,460 | ||||||||||||
Security deposits and other long-term assets | 1,104 | 522 | 462 | 591 | ||||||||||||
Total other assets | 51,706 | 49,595 | 50,641 | 52,624 | ||||||||||||
Total assets | $ | 99,566 | $ | 126,532 | $ | 91,502 | $ | 96,834 | ||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||
Current Liabilities: | ||||||||||||||||
Lines of credit | $ | 19,294 | $ | 26,396 | $ | 17,002 | $ | 19,709 | ||||||||
Accounts payable - trade | 28,527 | 44,960 | 24,058 | 25,447 | ||||||||||||
Accrued expenses and other current liabilities | 5,664 | 7,194 | 5,856 | 6,337 | ||||||||||||
Dividends payable | 1,957 | 1,745 | 2,100 | 2,029 | ||||||||||||
Current portion of earnout | 1,209 | 1,664 | 740 | 592 | ||||||||||||
Current portion of long-term debt | 715 | 639 | 716 | 715 | ||||||||||||
Current portion of deferred acquisition payments | 192 | 188 | ||||||||||||||
Current portion of subordinated promissory note-related party | 750 | 425 | 1,395 | 1,988 | ||||||||||||
Current portion of operating lease liabilities | 1,942 | 1,825 | 1,935 | 2,020 | ||||||||||||
Total current liabilities | 60,250 | 85,036 | 53,802 | 58,837 | ||||||||||||
Other Liabilities: | ||||||||||||||||
Long-term debt | 6,394 | 7,519 | 5,197 | 5,784 | ||||||||||||
Long-term portion of earnout | 1,978 | 2,916 | 1,996 | 1,738 | ||||||||||||
Subordinated promissory notes-related party | 4,754 | 5,382 | 3,480 | 3,424 | ||||||||||||
Mandatorily redeemable non-controlling interest | 430 | 430 | 711 | 565 | ||||||||||||
Deferred income taxes | 2,533 | 2,541 | 1,341 | 1,341 | ||||||||||||
Long-term operating lease liabilities | 4,318 | 4,001 | 5,221 | 5,689 | ||||||||||||
Other liabilities | 491 | 380 | 509 | 483 | ||||||||||||
Total other liabilities | 20,898 | 23,169 | 18,455 | 19,024 | ||||||||||||
Total liabilities | 81,148 | 108,205 | 72,257 | 77,861 | ||||||||||||
Stockholders’ Equity: | ||||||||||||||||
Preferred Stock, $0.001 par value; 100,000 shares authorized | ||||||||||||||||
Series C 30,000 shares authorized and 11,368 shares issued and outstanding at June 30, 2023 and September 30, 2022, liquidation value of $7,641 and $7,429 at June 30, 2023 and September 30, 2022, respectively | — | — | ||||||||||||||
Common stock, $0.001 par value; 4,500,000 shares authorized, 1,206,354 issued and 1,186,354 outstanding as of June 30, 2023 and September 30, 2022, respectively | 1 | 1 | ||||||||||||||
Series C; 30,000 shares authorized and 11,368 shares issued and outstanding at December 31, 2023 and September 30, 2023, liquidation value of $7,784 and $7,713 at December 31, 2023 and September 30, 2023, respectively | — | — | ||||||||||||||
Common stock, $0.001 par value; 4,500,000 shares authorized, 1,206,354 issued and 1,186,354 outstanding as of December 31, 2023 and September 30, 2023, respectively | 1 | 1 | ||||||||||||||
Paid-in capital | 17,127 | 17,184 | 17,103 | 17,107 | ||||||||||||
Common treasury stock, at cost, 20,000 shares | (240 | ) | (240 | ) | (240 | ) | (240 | ) | ||||||||
Accumulated earnings | 1,530 | 1,382 | 2,381 | 2,105 | ||||||||||||
Total stockholders’ equity | 18,418 | 18,327 | 19,245 | 18,973 | ||||||||||||
Total liabilities and stockholders’ equity | $ | 99,566 | $ | 126,532 | $ | 91,502 | $ | 96,834 |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Revenue | $ | 42,557 | $ | 78,984 | $ | 144,979 | $ | 243,149 | ||||||||||||||||
Forwarding expenses and cost of revenue | 28,898 | 61,819 | 102,654 | 193,986 | ||||||||||||||||||||
Revenues | $ | 41,035 | $ | 57,044 | ||||||||||||||||||||
Forwarding expenses and cost of revenues | 26,890 | 42,127 | ||||||||||||||||||||||
Gross profit | 13,659 | 17,165 | 42,325 | 49,163 | 14,145 | 14,917 | ||||||||||||||||||
Cost and Expenses: | ||||||||||||||||||||||||
Selling, general and administrative | 12,948 | 13,505 | 38,261 | 39,718 | 12,605 | 13,011 | ||||||||||||||||||
Amortization of intangible assets | 524 | 489 | 1,593 | 1,485 | 538 | 526 | ||||||||||||||||||
Total Costs and Expenses | 13,472 | 13,994 | 39,854 | 41,203 | 13,143 | 13,537 | ||||||||||||||||||
Income from Operations | 187 | 3,171 | 2,471 | 7,960 | 1,002 | 1,380 | ||||||||||||||||||
Other Items: | ||||||||||||||||||||||||
Interest expense | (528 | ) | (299 | ) | (1,476 | ) | (847 | ) | (524 | ) | (474 | ) | ||||||||||||
Unrealized loss on marketable securities | (269 | ) | — | (779 | ) | — | ||||||||||||||||||
(Loss) Income Before Income Taxes | (610 | ) | 2,872 | 216 | 7,113 | |||||||||||||||||||
Income tax benefit (expense) | 180 | (714 | ) | (68 | ) | (1,994 | ) | |||||||||||||||||
Net (Loss) Income | (430 | ) | 2,158 | 148 | 5,119 | |||||||||||||||||||
Other income (expense) | (10 | ) | (399 | ) | ||||||||||||||||||||
Income Before Income Taxes | 468 | 507 | ||||||||||||||||||||||
Income tax expense | (192 | ) | (147 | ) | ||||||||||||||||||||
Net Income | 276 | 360 | ||||||||||||||||||||||
Preferred stock dividends | (70 | ) | (71 | ) | (212 | ) | (515 | ) | (72 | ) | (72 | ) | ||||||||||||
Non-controlling interest dividends | — | — | — | (61 | ) | |||||||||||||||||||
Net (Loss) Income Available to Common Stockholders | $ | (500 | ) | $ | 2,087 | $ | (64 | ) | $ | 4,543 | ||||||||||||||
Net (loss) income per share | ||||||||||||||||||||||||
Net Income Available to Common Stockholders | $ | 204 | $ | 288 | ||||||||||||||||||||
Net income per share | ||||||||||||||||||||||||
Basic | $ | (0.36 | ) | $ | 2.04 | $ | 0.12 | $ | 5.13 | $ | $ 0.23 | $ | $ 0.30 | |||||||||||
Diluted | $ | (0.36 | ) | $ | 1.93 | $ | 0.12 | $ | 4.85 | $ | $ 0.23 | $ | $ 0.30 | |||||||||||
Net (loss) income per share attributable to common stockholders: | ||||||||||||||||||||||||
Net income per share attributable to common stockholders: | ||||||||||||||||||||||||
Basic | $ | (0.42 | ) | $ | 1.97 | $ | (0.05 | ) | $ | 4.56 | $ | $ 0.17 | $ | $ 0.24 | ||||||||||
Diluted | $ | (0.42 | ) | $ | 1.87 | $ | (0.05 | ) | $ | 4.31 | $ | $ 0.17 | $ | $ 0.24 | ||||||||||
Weighted average number of shares outstanding: | ||||||||||||||||||||||||
Basic | 1,186.4 | 1,057.7 | 1,186.4 | 996.9 | 1,186.3 | 1,186.3 | ||||||||||||||||||
Diluted | 1,186.4 | 1,116.6 | 1,186.4 | 1,055.0 | 1,202.1 | 1,208.2 |
PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | COMMON TREASURY STOCK | ACCUMULATED EARNINGS | 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, 2022 | 11,368 | $ | — | 1,206,354 | $ | 1 | $ | 17,184 | 20,000 | $ | (240 | ) | $ | 1,382 | $ | 18,327 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - September 30, 2023 | 11,368 | $ | — | 1,206,354 | $ | 1 | $ | 17,107 | 20,000 | $ | (240 | ) | $ | 2,105 | $ | 18,973 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 360 | 360 | — | — | — | — | — | — | — | 276 | 276 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | (72 | ) | — | — | — | (72 | ) | — | — | — | — | (72 | ) | — | — | — | (72 | ) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 51 | — | — | — | 51 | — | — | — | — | 68 | — | — | — | 68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2022 | 11,368 | — | 1,206,354 | 1 | 17,163 | 20,000 | (240 | ) | 1,742 | 18,666 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 218 | 218 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | (70 | ) | — | — | — | (70 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 53 | — | — | — | 53 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - March 31, 2023 | 11,368 | — | 1,206,354 | 1 | 17,146 | 20,000 | (240 | ) | 1,960 | 18,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (loss) | — | — | — | — | — | — | — | (430 | ) | (430 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | (70 | ) | — | — | — | (70 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 51 | — | — | — | 51 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - June 30, 2023 | 11,368 | $ | — | 1,206,354 | $ | 1 | $ | 17,127 | 20,000 | $ | (240 | ) | $ | 1,530 | $ | 18,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance - December 31, 2023 | 11,368 | $ | — | 1,206,354 | $ | 1 | $ | 17,103 | 20,000 | $ | (240 | ) | $ | 2,381 | $ | 19,245 |
PREFERRED STOCK | COMMON STOCK | PAID-IN CAPITAL | COMMON TREASURY STOCK | ACCUMULATED EARNINGS (DEFICIT) | TOTAL EQUITY | |||||||||||||||||||||||||||||||
SHARES | $ | SHARES | $ | $ | SHARES | $ | $ | $ | ||||||||||||||||||||||||||||
Balance - September 30, 2021 | 20,991 | $ | — | 962,207 | $ | 1 | $ | 14,838 | 20,000 | $ | (240 | ) | $ | 3,520 | $ | 18,119 | ||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 1,688 | 1,688 | |||||||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | (211 | ) | — | — | — | (211 | ) | |||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 29 | — | — | — | 29 | |||||||||||||||||||||||||||
Stock option exercise | — | — | 17,500 | — | 85 | — | — | — | 85 | |||||||||||||||||||||||||||
Balance - December 31, 2021 | 20,991 | — | 979,707 | 1 | 14,741 | 20,000 | (240 | ) | 5,208 | 19,710 | ||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 1,273 | 1,273 | |||||||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | (233 | ) | — | — | — | (233 | ) | |||||||||||||||||||||||||
Dividend to non-controlling interest | — | — | — | — | (61 | ) | — | — | — | (61 | ) | |||||||||||||||||||||||||
Preferred C shares purchased | (4,687 | ) | — | — | — | (1,731 | ) | — | — | — | (1,731 | ) | ||||||||||||||||||||||||
Preferred C shares converted | (4,905 | ) | — | 65,205 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Preferred B shares converted | (31 | ) | — | 306 | — | — | — | — | — | — | ||||||||||||||||||||||||||
Stock based compensation | — | — | 15,000 | — | 718 | — | — | — | 718 | |||||||||||||||||||||||||||
Stock options exercise | — | — | 17,500 | — | 76 | — | — | — | 76 | |||||||||||||||||||||||||||
Balance - March 31, 2022 | 11,368 | — | 1,077,718 | 1 | 13,510 | 20,000 | (240 | ) | 6,481 | 19,752 | ||||||||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 2,158 | 2,158 | |||||||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | (71 | ) | — | — | — | (71 | ) | |||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 22 | — | — | — | 22 | |||||||||||||||||||||||||||
Balance - June 30, 2022 | 11,368 | $ | — | 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, 2022 | 11,368 | $ | — | 1,206,354 | $ | 1 | $ | 17,184 | 20,000 | $ | (240 | ) | $ | 1,382 | $ | 18,327 | ||||||||||||||||||||
Net Income | — | — | — | — | — | — | — | 360 | 360 | |||||||||||||||||||||||||||
Dividends to preferred stockholders | — | — | — | — | (72 | ) | — | — | — | (72 | ) | |||||||||||||||||||||||||
Stock based compensation | — | — | — | — | 51 | — | — | — | 51 | |||||||||||||||||||||||||||
Balance - December 31, 2022 | 11,368 | $ | — | 1,206,354 | $ | 1 | $ | 17,163 | 20,000 | $ | (240 | ) | $ | 1,742 | $ | 18,666 |
Nine Months Ended June 30, | Three Months Ended December 31, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Cash Flows From Operating Activities: | ||||||||||||||||
Cash flows from operating activities: | ||||||||||||||||
Net income | $ | 148 | $ | 5,119 | $ | 276 | $ | 360 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||
(Recovery of) Provision for uncollectible accounts | (292 | ) | 354 | (153 | ) | (71 | ) | |||||||||
Depreciation | 373 | 351 | 130 | 121 | ||||||||||||
Deferred income tax provision | (8 | ) | (185 | ) | — | (15 | ) | |||||||||
Amortization of intangible assets | 1,593 | 1,485 | 538 | 526 | ||||||||||||
Amortization of acquired inventory valuation | 320 | 393 | 83 | 90 | ||||||||||||
Amortization of loan costs | 63 | 7 | 26 | 4 | ||||||||||||
Stock-based compensation | 185 | 800 | 71 | 61 | ||||||||||||
Unrealized loss on marketable securities | 779 | — | 709 | 399 | ||||||||||||
Change in fair value of mandatorily redeemable noncontrolling interest | — | 58 | 146 | — | ||||||||||||
Fair value adjustment of contingent earnout liabilities | 405 | — | ||||||||||||||
Gain on extinguishment | (21 | ) | — | |||||||||||||
Changes in operating assets and liabilities, net of effects of acquisitions: | ||||||||||||||||
Accounts receivable | 27,056 | (10,026 | ) | 1,706 | 14,656 | |||||||||||
Inventory | (106 | ) | (1,299 | ) | 139 | 84 | ||||||||||
Prepaid expenses and other current assets | (1,151 | ) | (724 | ) | 616 | 623 | ||||||||||
Security deposits and other long-term assets | (82 | ) | 44 | 130 | 31 | |||||||||||
Accounts payable and accrued expenses | (17,996 | ) | 12,275 | (1,876 | ) | (11,115 | ) | |||||||||
Other liabilities | 174 | 26 | 81 | 26 | ||||||||||||
Net cash provided by operating activities | 11,056 | 8,678 | 3,006 | 5,780 | ||||||||||||
Cash Flows From Investing Activities: | ||||||||||||||||
Cash flows from investing activities: | ||||||||||||||||
Acquisition of property and equipment, net of disposals | (267 | ) | (477 | ) | (53 | ) | (80 | ) | ||||||||
Earnout payment | (1,693 | ) | — | |||||||||||||
Acquisitions | (4,401 | ) | (112 | ) | — | (2,847 | ) | |||||||||
Net cash used in investing activities | (6,361 | ) | (589 | ) | (53 | ) | (2,927 | ) | ||||||||
Cash Flows From Financing Activities: | ||||||||||||||||
Cash flows from financing activities: | ||||||||||||||||
Repayments of term loan | (1,113 | ) | (728 | ) | (612 | ) | (347 | ) | ||||||||
Proceeds from stock option exercise | — | 161 | ||||||||||||||
Lines of credit payments, net | (7,101 | ) | (6,717 | ) | (2,707 | ) | (5,076 | ) | ||||||||
Repayment of subordinate promissory notes | (299 | ) | (142 | ) | ||||||||||||
Dividends paid to minority shareholders | — | (61 | ) | |||||||||||||
Dividends paid to preferred stockholders | — | (657 | ) | |||||||||||||
Repurchase of Series C Preferred Stock | — | (2,343 | ) | |||||||||||||
Repayment of subordinate promissory notes, net | (516 | ) | 134 | |||||||||||||
Net cash used in financing activities | (8,513 | ) | (10,487 | ) | (3,835 | ) | (5,289 | ) | ||||||||
Net (decrease) in cash | (3,818 | ) | (2,398 | ) | (882 | ) | (2,436 | ) | ||||||||
Cash at beginning of the period | 6,591 | 6,234 | 2,461 | 6,591 | ||||||||||||
Cash at end of period | $ | 2,773 | $ | 3,836 | $ | 1,579 | $ | 4,155 | ||||||||
Supplemental Disclosure of Cash Flow Information: | ||||||||||||||||
Cash paid during the period for: | ||||||||||||||||
Interest | $ | 1,208 | $ | 597 | $ | 511 | $ | 380 | ||||||||
Income taxes | $ | 1,300 | $ | 1,261 | $ | 156 | $ | 9 | ||||||||
Non-cash operating activities: | ||||||||||||||||
Contingent earnout acquisition | $ | 300 | $ | — | $ | — | $ | 600 | ||||||||
Due to former owner | $ | 455 | $ | — | $ | — | $ | 455 | ||||||||
Non-cash investing activities: | ||||||||||||||||
Purchase price adjustments | $ | — | $ | 112 | ||||||||||||
Non-cash financing activities: | ||||||||||||||||
Dividends declared to preferred stockholders | $ | 212 | $ | 515 | $ | 72 | $ | 72 |
1. | BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Service Type | ||||||||||||||||
Trucking | $ | 19,314 | $ | 24,920 | $ | 61,671 | $ | 70,269 | ||||||||
Ocean | 7,502 | 28,633 | 34,908 | 94,813 | ||||||||||||
Air | 5,638 | 13,716 | 17,096 | 41,063 | ||||||||||||
Other | 2,906 | 3,619 | 8,771 | 10,546 | ||||||||||||
Customs Brokerage | 2,124 | 2,796 | 6,716 | 9,622 | ||||||||||||
Total | $ | 37,484 | $ | 73,684 | $ | 129,162 | $ | 226,313 |
Three Months Ended December 31, | ||||||||
2023 | 2022 | |||||||
Service Type | ||||||||
Trucking | $ | 17,997 | $ | 22,761 | ||||
Air | 6,711 | 6,239 | ||||||
Ocean | 6,448 | 18,166 | ||||||
Customs brokerage and other | 4,059 | 4,634 | ||||||
Total | $ | 35,215 | $ | 51,800 |
2. | ACQUISITIONS |
3. | INVENTORY |
June 30, 2023 | September 30, 2022 | December 31, 2023 | September 30, 2023 | |||||||||||||
Finished goods | $ | 1,978 | $ | 1,823 | $ | 1,953 | $ | 2,095 | ||||||||
Work-in-process | 1,074 | 763 | 922 | 969 | ||||||||||||
Raw materials | 2,084 | 2,260 | 1,781 | 1,811 | ||||||||||||
Gross inventory | 5,136 | 4,846 | 4,656 | 4,875 | ||||||||||||
Less – reserve for inventory valuation | (42 | ) | (44 | ) | (28 | ) | (25 | ) | ||||||||
Inventory net | $ | 5,094 | $ | 4,802 | $ | 4,628 | $ | 4,850 |
4. | INTANGIBLE ASSETS |
June 30, 2023 | September 30, 2022 | Life | December 31, 2023 | September 30, 2023 | Life | |||||||||||||
Customer relationships | $ | 25,238 | $ | 23,625 | 10-24 Years | $ | 25,238 | $ | 25,238 | 10-24 Years | ||||||||
Trademarks/names | 4,559 | 4,539 | 1-20 Years | 4,559 | 4,559 | 1-20 Years | ||||||||||||
Trademarks/names | 521 | 521 | Indefinite | 521 | 521 | Indefinite | ||||||||||||
Other | 1,429 | 1,180 | 2-22 Years | 1,929 | 1,929 | 2-22 Years | ||||||||||||
31,747 | 29,865 | |||||||||||||||||
Less: Accumulated Amortization | (9,038 | ) | (7,445 | ) | ||||||||||||||
Intangible assets, net | $ | 22,709 | $ | 22,420 | ||||||||||||||
Total intangible assets | 32,247 | 32,247 | ||||||||||||||||
Less: accumulated amortization | (10,102 | ) | (9,564 | ) | ||||||||||||||
Total intangible assets, net | $ | 22,145 | $ | 22,683 |
June 30, 2023 | September 30, 2022 | December 31, 2023 | September 30, 2023 | |||||||||||||
Logistics | $ | 18,174 | $ | 18,174 | $ | 18,174 | $ | 18,174 | ||||||||
Life Sciences | 5,873 | 3,991 | 6,373 | 6,373 | ||||||||||||
Manufacturing | 7,700 | 7,700 | 7,700 | 7,700 | ||||||||||||
31,747 | 29,865 | |||||||||||||||
Less: Accumulated Amortization | (9,038 | ) | (7,445 | ) | ||||||||||||
Intangible assets, net | $ | 22,709 | $ | 22,420 | ||||||||||||
Total intangible assets | 32,247 | 32,247 | ||||||||||||||
Less: accumulated amortization | (10,102 | ) | (9,564 | ) | ||||||||||||
Total intangible assets, net | $ | 22,145 | $ | 22,683 |
5. | GOODWILL |
June 30, 2023 | September 30, 2022 | December 31, 2023 | September 30, 2023 | |||||||||||||
Logistics | $ | 9,175 | $ | 9,175 | $ | 9,175 | $ | 9,175 | ||||||||
Life Sciences | 6,050 | 4,401 | 6,096 | 6,096 | ||||||||||||
Manufacturing | 5,046 | 5,046 | 5,046 | 5,046 | ||||||||||||
Total | $ | 20,271 | $ | 18,622 | $ | 20,317 | $ | 20,317 |
6. | NOTES PAYABLE – BANKS |
(A) | Santander Bank Facility |
(B) | First Merchants Bank Credit Facility |
(in thousands) | June 30, 2023 | September 30, 2022 | ||||||
Total Debt | $ | 7,109 | $ | 6,051 | ||||
Less Current Portion | (715 | ) | (574 | ) | ||||
Long-term Portion | $ | 6,394 | $ | 5,477 |
December 31, 2023 | September 30, 2023 | |||||||
Total debt | $ | 5,913 | $ | 6,499 | ||||
Less current portion | (716 | ) | (715 | ) | ||||
Long-term portion | $ | 5,197 | $ | 5,784 |
7. | SUBORDINATED PROMISSORY NOTES - RELATED PARTY |
(in thousands) | June 30, 2023 | September 30, 2022 | December 31, 2023 | September 30, 2023 | ||||||||||||
Total subordinated promissory notes | $ | 5,504 | $ | 5,807 | $ | 4,875 | $ | 5,412 | ||||||||
Less current portion of subordinated promissory notes | (750 | ) | (425 | ) | (1,395 | ) | (1,988 | ) | ||||||||
Long-term portion of subordinated promissory notes | $ | 4,754 | $ | 5,382 | $ | 3,480 | $ | 3,424 |
8. | STOCKHOLDERS’ EQUITY |
9. | STOCK-BASED COMPENSATION |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding balance at September 30, 2022 | 30,993 | $ | 12.68 | 6.8 | $ | 1,251.45 | ||||||||||
Granted | 10,000 | $ | 53.06 | 9.5 | $ | — | ||||||||||
Outstanding balance at June 30, 2023 | 40,993 | $ | 22.53 | 6.8 | $ | 505.73 | ||||||||||
Exercisable at June 30, 2023 | 21,831 | $ | 9.96 | 5.2 | $ | 415.77 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding balance at September 30, 2023 | 40,993 | $ | 22.53 | 6.6 | $ | 482.49 | ||||||||||
Granted | 12,500 | $ | 28.25 | 9.8 | $ | — | ||||||||||
Expired | (3,500 | ) | $ | 3.25 | — | $ | — | |||||||||
Outstanding balance at December 31, 2023 | 49,993 | $ | 25.31 | 7.6 | $ | 305.63 | ||||||||||
Exercisable at December 31, 2023 | 24,162 | $ | 12.63 | 6.0 | $ | 298.97 |
Number of Options | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) | |||||||||||||
Outstanding balance at September 30, 2022 | 35,607 | $ | 12.22 | 6.7 | $ | 175.98 | ||||||||||
Granted | 7,018 | $ | 15.20 | 9.5 | $ | — | ||||||||||
Outstanding balance at June 30, 2023 | 42,625 | $ | 12.71 | 6.6 | $ | 119.94 | ||||||||||
Exercisable at June 30, 2023 | 28,613 | $ | 11.40 | 5.5 | $ | 113.20 |
10. | INCOME PER COMMON SHARE |
Three Months Ended December 31, | ||||||||
(in thousands, except per share data) | 2023 | 2022 | ||||||
Income: | ||||||||
Net income | $ | 276 | $ | 360 | ||||
Preferred stock dividends | (72 | ) | (72 | ) | ||||
Net income available to common stockholders | $ | 204 | $ | 288 | ||||
Common Shares: | ||||||||
Basic - weighted average common shares | 1,186.3 | 1,186.3 | ||||||
Effect of dilutive securities: | ||||||||
Stock options | 15.8 | 21.9 | ||||||
Diluted - weighted average common stock | 1,202.1 | 1,208.2 | ||||||
Income per Common Share: | ||||||||
Basic - | ||||||||
Net income | $ | 0.23 | $ | 0.30 | ||||
Preferred stock dividends | (0.06 | ) | (0.06 | ) | ||||
Net income available to common stockholders | $ | 0.17 | $ | 0.24 | ||||
Diluted - | ||||||||
Net income | $ | 0.23 | $ | 0.30 | ||||
Preferred stock dividends | (0.06 | ) | (0.06 | ) | ||||
Net income available to common stockholders | $ | 0.17 | $ | 0.24 |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
(in thousands, except per share data) | 2023 | 2022 | 2023 | 2022 | ||||||||||||
(Loss) Income: | ||||||||||||||||
Net (loss) income | $ | (430 | ) | $ | 2,158 | $ | 148 | $ | 5,119 | |||||||
Preferred stock dividends | (70 | ) | (71 | ) | (212 | ) | (515 | ) | ||||||||
Non-controlling interest dividends | — | — | — | (61 | ) | |||||||||||
Net (loss) income available to common stockholders | $ | (500 | ) | $ | 2,087 | $ | (64 | ) | $ | 4,543 | ||||||
Common Shares: | ||||||||||||||||
Basic - weighted average common shares | 1,186.4 | 1,057.7 | 1,186.4 | 996.9 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
Stock options | — | 58.9 | — | 58.0 | ||||||||||||
Convertible preferred stock | — | — | — | 0.1 | ||||||||||||
Diluted - weighted average common stock | 1,186.4 | 1,116.6 | 1,186.4 | 1,055.0 | ||||||||||||
(Loss) Income per Common Share: | ||||||||||||||||
Basic - | ||||||||||||||||
Net (loss) income | $ | (0.36 | ) | $ | 2.04 | $ | 0.12 | $ | 5.13 | |||||||
Preferred stock dividends | (0.06 | ) | (0.07 | ) | (0.17 | ) | (0.51 | ) | ||||||||
Non-controlling interest dividends | — | — | — | (0.06 | ) | |||||||||||
Net (loss) income available to common stockholders | $ | (0.42 | ) | $ | 1.97 | $ | (0.05 | ) | $ | 4.56 | ||||||
Diluted - | ||||||||||||||||
Net (loss) income | $ | (0.36 | ) | $ | 1.93 | $ | 0.12 | $ | 4.85 | |||||||
Preferred stock dividends | (0.06 | ) | (0.06 | ) | (0.17 | ) | (0.48 | ) | ||||||||
Non-controlling interest dividends | — | — | — | (0.06 | ) | |||||||||||
Net (loss) income available to common stockholders | $ | (0.42 | ) | $ | 1.87 | $ | (0.05 | ) | $ | 4.31 |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
Employee stock options (Note 9) | 41 | 74 | 41 | 80 |
11. | INCOME TAXES |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Federal taxes at statutory rates | $ | 129 | $ | (604 | ) | $ | (45 | ) | $ | (1,494 | ) | $ | 98 | $ | 107 | |||||||||
Permanent differences | 31 | — | (5 | ) | — | 58 | 1 | |||||||||||||||||
State and local taxes, net of Federal benefit | 20 | (110 | ) | (18 | ) | (500 | ) | 36 | 39 | |||||||||||||||
Total income tax benefit (expense) | $ | 180 | $ | (714 | ) | $ | (68 | ) | $ | (1,994 | ) | |||||||||||||
Total | $ | 192 | $ | 147 |
12. | BUSINESS SEGMENT INFORMATION |
For the three months ended December 31, 2023 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||
Revenues | $ | 41,035 | $ | 35,215 | $ | 3,481 | $ | 2,339 | $ | — | ||||||||||
Forwarding expenses and cost of revenues | 26,890 | 25,214 | 606 | 1,070 | — | |||||||||||||||
Gross profit | 14,145 | 10,001 | 2,875 | 1,269 | — | |||||||||||||||
Selling, general and administrative | 12,605 | 8,865 | 1,750 | 784 | 1,206 | |||||||||||||||
Amortization of intangible assets | 538 | — | — | — | 538 | |||||||||||||||
Income (loss) from operations | 1,002 | 1,136 | 1,125 | 485 | (1,744 | ) | ||||||||||||||
Interest expense | 524 | 357 | 78 | 89 | — | |||||||||||||||
Identifiable assets | 91,502 | 31,128 | 11,786 | 3,875 | 44,713 | |||||||||||||||
Capital expenditures, net of disposals | $ | 53 | $ | 18 | $ | 35 | $ | — | $ | — |
For the three months ended June 30, 2023 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||||||||||||||||||||||
Revenue | $ | 42,557 | $ | 37,484 | $ | 2,811 | $ | 2,262 | $ | — | ||||||||||||||||||||||||||||||
Forwarding expenses and cost of revenue | 28,898 | 27,241 | 575 | 1,082 | — | |||||||||||||||||||||||||||||||||||
For the three months ended December 31, 2022 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||||||||||||||||||||||
Revenues | $ | 57,044 | $ | 51,800 | $ | 2,838 | $ | 2,406 | $ | — | ||||||||||||||||||||||||||||||
Forwarding expenses and cost of revenues | 42,127 | 40,267 | 728 | 1,132 | — | |||||||||||||||||||||||||||||||||||
Gross profit | 13,659 | 10,243 | 2,236 | 1,180 | — | 14,917 | 11,533 | 2,110 | 1,274 | — | ||||||||||||||||||||||||||||||
Selling, general and administrative | 12,948 | 9,629 | 1,512 | 717 | 1,090 | 13,011 | 9,528 | 1,510 | 774 | 1,199 | ||||||||||||||||||||||||||||||
Amortization of intangible assets | 524 | — | — | — | 524 | 526 | — | — | — | 526 | ||||||||||||||||||||||||||||||
Income (loss) from operations | 187 | 614 | 724 | 463 | (1,614 | ) | 1,380 | 2,005 | 600 | 500 | (1,725 | ) | ||||||||||||||||||||||||||||
Interest expense | 528 | 347 | 86 | 95 | — | 474 | 334 | 37 | 103 | — | ||||||||||||||||||||||||||||||
Identifiable assets | 99,566 | 38,066 | 11,025 | 4,228 | 46,247 | 111,564 | 49,220 | 11,317 | 4,085 | 46,942 | ||||||||||||||||||||||||||||||
Capital expenditures, net of disposals | $ | 89 | $ | 89 | $ | — | $ | — | $ | — | $ | 80 | $ | 68 | $ | 10 | $ | 2 | $ | — |
For the nine months ended June 30, 2023 (in thousands) | Consolidated | Logistics | Life Sciences | Manufacturing | Corporate | |||||||||||||||
Revenue | $ | 144,979 | $ | 129,162 | $ | 8,717 | $ | 7,100 | $ | — | ||||||||||
Forwarding expenses and cost of revenue | 102,654 | 97,339 | 1,930 | 3,385 | — | |||||||||||||||
Gross profit | 42,325 | 31,823 | 6,787 | 3,715 | — | |||||||||||||||
Selling, general and administrative | 38,261 | 27,891 | 4,592 | 2,267 | 3,511 | |||||||||||||||
Amortization of intangible assets | 1,593 | — | — | — | 1,593 | |||||||||||||||
Income (loss) from operations | 2,471 | 3,932 | 2,195 | 1,448 | (5,104 | ) | ||||||||||||||
Interest expense | 1,476 | 1,006 | 165 | 305 | — | |||||||||||||||
Identifiable assets | 99,566 | 38,066 | 11,025 | 4,228 | 46,247 | |||||||||||||||
Capital expenditures, net of disposals | $ | 267 | $ | 214 | $ | 51 | $ | 2 | $ | — |
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 | $ | — | ||||||||||
Forwarding expenses and cost of revenue | 61,819 | 59,889 | 648 | 1,282 | — | |||||||||||||||
Gross profit | 17,165 | 13,795 | 2,090 | 1,280 | — | |||||||||||||||
Selling, general and administrative | 13,505 | 10,387 | 1,225 | 676 | 1,217 | |||||||||||||||
Amortization of intangible assets | 489 | — | — | — | 489 | |||||||||||||||
Income (loss) from operations | 3,171 | 3,408 | 865 | 604 | (1,706 | ) | ||||||||||||||
Interest expense | 299 | 242 | 31 | 26 | — | |||||||||||||||
Identifiable assets | 126,106 | 67,196 | 12,137 | 4,363 | 42,410 | |||||||||||||||
Capital expenditures, net of disposals | $ | 207 | $ | 171 | $ | 13 | $ | 23 | $ | — |
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 | $ | — | ||||||||||
Forwarding expenses and cost of revenue | 193,986 | 187,780 | 2,516 | 3,690 | — | |||||||||||||||
Gross profit | 49,163 | 38,533 | 6,741 | 3,889 | — | |||||||||||||||
Selling, general and administrative | 39,718 | 29,802 | 3,758 | 2,170 | 3,988 | |||||||||||||||
Amortization of intangible assets | 1,485 | — | — | — | 1,485 | |||||||||||||||
Income (loss) from operations | 7,960 | 8,731 | 2,983 | 1,719 | (5,473 | ) | ||||||||||||||
Interest expense | 847 | 683 | 88 | 76 | — | |||||||||||||||
Identifiable assets | 126,106 | 67,196 | 12,137 | 4,363 | 42,410 | |||||||||||||||
Capital expenditures, net of disposals | $ | 477 | $ | 260 | $ | 171 | $ | 46 | $ | — |
13. | FAIR VALUE MEASUREMENTS |
Level 1 | June 30, 2023 | September 30, 2022 | ||||||||||||||
Level 1 Assets | December 31, 2023 | September 30, 2023 | ||||||||||||||
Investment in Rubicon at fair value | $ | 1,592 | $ | 2,371 | $ | 864 | $ | 1,573 |
June 30, 2023 | September 30, 2022 | December 31, 2023 | September 30, 2023 | |||||||||||||
Balance beginning of period | $ | 2,371 | $ | — | $ | 1,573 | $ | 2,371 | ||||||||
Purchase of Rubicon Investment | — | 22,160 | ||||||||||||||
Fair value adjustment to Rubicon investment | (779 | ) | (19,789 | ) | (709 | ) | (798 | ) | ||||||||
Balance end of period | $ | 1,592 | $ | 2,371 | $ | 864 | $ | 1,573 |
Level 3 | June 30, 2023 | September 30, 2022 | ||||||
Contingent earnout liabilities | $ | 3,187 | $ | 4,580 |
December 31, 2023 | September 30, 2023 | |||||||
Level 1 Contingent earnout liabilities | $ | 2,435 | $ | — | ||||
Level 3 Contingent earnout liabilities | 300 | 2,330 | ||||||
Total | $ | 2,735 | $ | 2,330 |
June 30, 2023 | September 30, 2022 | December 31, 2023 | September 30, 2023 | |||||||||||||
Balance beginning of period | $ | 4,580 | $ | 3,600 | $ | 2,330 | $ | 4,580 | ||||||||
Fair value of contingent consideration recorded in connection with business combinations | 300 | 980 | — | 300 | ||||||||||||
Earnout payment | (1,693 | ) | — | — | (1,693 | ) | ||||||||||
Fair value adjustment of contingent earnout liabilities | 405 | (857 | ) | |||||||||||||
Transfer to Level 1 | (2,435 | ) | — | |||||||||||||
Balance end of period | $ | 3,187 | $ | 4,580 | $ | 300 | $ | 2,330 |
14. | LEASES |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
Operating lease cost | $ | 523 | $ | 457 | $ | 1,540 | $ | 1,370 | $ | 599 | $ | 551 | ||||||||||||
Short-term lease cost | 150 | 123 | 283 | 371 | 100 | 20 | ||||||||||||||||||
Total lease cost | $ | 673 | $ | 580 | $ | 1,823 | $ | 1,741 | $ | 699 | $ | 571 |
2024 | $ | 1,974 | $ | 1,985 | ||||
2025 | 1,480 | 1,523 | ||||||
2026 | 985 | 1,193 | ||||||
2027 | 894 | 1,215 | ||||||
2028 | 910 | 978 | ||||||
Thereafter | 424 | 1,467 | ||||||
Total undiscounted lease payments | 6,667 | |||||||
Less imputed interest | (407 | ) | ||||||
Total lease obligations | $ | 6,260 | ||||||
Total undiscounted loan payments | 8,361 | |||||||
Less: imputed interest | (1,205 | ) | ||||||
Total lease obligation | $ | 7,156 |
15. | SUBSEQUENT EVENTS |
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended December 31, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
Revenue | $ | 42,557 | $ | 78,984 | $ | 144,979 | $ | 243,149 | ||||||||||||||||
Forwarding expenses and cost of revenue | 28,898 | 61,819 | 102,654 | 193,986 | ||||||||||||||||||||
Revenues | $ | 41,035 | $ | 57,044 | ||||||||||||||||||||
Forwarding expenses and cost of revenues | 26,890 | 42,127 | ||||||||||||||||||||||
Gross profit | 13,659 | 17,165 | 42,325 | 49,163 | 14,145 | 14,917 | ||||||||||||||||||
Operating expenses | 13,472 | 13,994 | 39,854 | 41,203 | 13,143 | 13,537 | ||||||||||||||||||
Income from operations | 187 | 3,171 | 2,471 | 7,960 | 1,002 | 1,380 | ||||||||||||||||||
Net (loss) income | (430 | ) | 2,158 | 148 | 5,119 | |||||||||||||||||||
Net income | 276 | 360 | ||||||||||||||||||||||
Adjusted operating income | $ | 876 | $ | 3,822 | $ | 4,569 | $ | 10,638 | $ | 1,694 | $ | 2,057 |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended December 31, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
Income from operations | $ | 187 | $ | 3,171 | $ | 2,471 | $ | 7,960 | $ | 1,002 | $ | 1,380 | ||||||||||||
Amortization of intangible assets | 524 | 489 | 1,593 | 1,485 | 538 | 526 | ||||||||||||||||||
Stock-based compensation | 62 | 32 | 185 | 800 | 71 | 61 | ||||||||||||||||||
Cost recognized on sale of acquired inventory | 103 | 130 | 320 | 393 | 83 | 90 | ||||||||||||||||||
Adjusted operating income | $ | 876 | $ | 3,822 | $ | 4,569 | $ | 10,638 | $ | 1,694 | $ | 2,057 |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended December 31, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||
Revenue | $ | 37,484 | $ | 73,684 | $ | 129,162 | $ | 226,313 | ||||||||||||||||
Forwarding expense | 27,241 | 59,889 | 97,339 | 187,780 | ||||||||||||||||||||
Revenues | $ | 35,215 | $ | 51,800 | ||||||||||||||||||||
Forwarding expenses | 25,214 | 40,267 | ||||||||||||||||||||||
Gross profit | 10,243 | 13,795 | 31,823 | 38,533 | 10,001 | 11,533 | ||||||||||||||||||
Gross profit margin | 27.3 | % | 18.7 | % | 25.7 | % | 17.0 | % | 28.4 | % | 22.3 | % | ||||||||||||
Selling, general and administrative expenses | 9,629 | 10,387 | 27,891 | 29,802 | 8,865 | 9,528 | ||||||||||||||||||
Income from operations | $ | 614 | $ | 3,408 | $ | 3,932 | $ | 8,731 | $ | 1,136 | $ | 2,005 |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 2,811 | $ | 2,738 | $ | 8,717 | $ | 9,257 | ||||||||
Cost of sales | 472 | 518 | 1,610 | 2,123 | ||||||||||||
Cost recognized upon sale of acquired inventory | 103 | 130 | 320 | 393 | ||||||||||||
Gross profit | 2,236 | 2,090 | 6,787 | 6,741 | ||||||||||||
Gross profit margin | 79.5 | % | 76.3 | % | 77.9 | % | 72.8 | % | ||||||||
Selling, general and administrative | 1,512 | 1,225 | 4,592 | 3,758 | ||||||||||||
Income from operations | $ | 724 | $ | 865 | $ | 2,195 | $ | 2,983 |
Three Months Ended December 31, | ||||||||
2023 | 2022 | |||||||
(in thousands) | ||||||||
Revenues | $ | 3,481 | $ | 2,838 | ||||
Cost of sales | 523 | 638 | ||||||
Cost recognized upon sale of acquired inventory | 83 | 90 | ||||||
Gross profit | 2,875 | 2,110 | ||||||
Gross profit margin | 82.6 | % | 74.3 | % | ||||
Selling, general and administrative expenses | 1,750 | 1,510 | ||||||
Income from operations | $ | 1,125 | $ | 600 |
Three Months Ended June 30, | Nine Months Ended June 30, | |||||||||||||||
2023 | 2022 | 2023 | 2022 | |||||||||||||
(in thousands) | ||||||||||||||||
Revenue | $ | 2,262 | $ | 2,562 | $ | 7,100 | $ | 7,579 | ||||||||
Cost of sales | 1,082 | 1,282 | 3,385 | 3,690 | ||||||||||||
Gross profit | 1,180 | 1,280 | 3,715 | 3,889 | ||||||||||||
Gross profit margin | 52.2 | % | 50.0 | % | 52.3 | % | 51.3 | % | ||||||||
Selling, general and administrative expenses | 717 | 676 | 2,267 | 2,170 | ||||||||||||
Income from operations | $ | 463 | $ | 604 | $ | 1,448 | $ | 1,719 |
Three Months Ended December 31, | ||||||||
2023 | 2022 | |||||||
(in thousands) | ||||||||
Revenues | $ | 2,339 | $ | 2,406 | ||||
Cost of sales | 1,070 | 1,132 | ||||||
Gross profit | 1,269 | 1,274 | ||||||
Gross profit margin | 54.3 | % | 53.0 | % | ||||
Selling, general and administrative expenses | 784 | 774 | ||||||
Income from operations | $ | 485 | $ | 500 |
Three Months Ended June 30, | Nine Months Ended June 30, | Three Months Ended December 31, | ||||||||||||||||||||||
(in thousands) | 2023 | 2022 | 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||
Total income from operations by segment | $ | 1,801 | $ | 4,877 | $ | 7,575 | $ | 13,433 | $ | 2,746 | $ | 3,105 | ||||||||||||
Corporate expenses | (1,028 | ) | (1,185 | ) | (3,326 | ) | (3,188 | ) | (1,135 | ) | (1,138 | ) | ||||||||||||
Amortization of intangible assets | (524 | ) | (489 | ) | (1,593 | ) | (1,485 | ) | (538 | ) | (526 | ) | ||||||||||||
Stock-based compensation | (62 | ) | (32 | ) | (185 | ) | (800 | ) | (71 | ) | (61 | ) | ||||||||||||
Total corporate expenses | (1,614 | ) | (1,706 | ) | (5,104 | ) | (5,473 | ) | (1,744 | ) | (1,725 | ) | ||||||||||||
Interest expense | (528 | ) | (299 | ) | (1,476 | ) | (847 | ) | (524 | ) | (474 | ) | ||||||||||||
Fair value adjustments to Rubicon investment | (269 | ) | — | (779 | ) | — | ||||||||||||||||||
Net (loss) income before taxes | (610 | ) | 2,872 | 216 | 7,113 | |||||||||||||||||||
Income tax benefit (expense) | 180 | (714 | ) | (68 | ) | (1,994 | ) | |||||||||||||||||
Net (loss) Income | (430 | ) | 2,158 | 148 | 5,119 | |||||||||||||||||||
Fair value adjustments to Rubicon investment (net of dividends) | 510 | (399 | ) | |||||||||||||||||||||
Fair value adjustment of contingent earnout liabilities | (395 | ) | — | |||||||||||||||||||||
Gain on extinguishment | 21 | — | ||||||||||||||||||||||
Change in fair value of mandatorily redeemable non-controlling interest | (146 | ) | — | |||||||||||||||||||||
Net income before taxes | 468 | 507 | ||||||||||||||||||||||
Income tax expense | (192 | ) | (147 | ) | ||||||||||||||||||||
Net Income | 276 | 360 | ||||||||||||||||||||||
Preferred stock dividends | (70 | ) | (71 | ) | (212 | ) | (515 | ) | (72 | ) | (72 | ) | ||||||||||||
Non-controlling interest dividend | — | — | — | (61 | ) | |||||||||||||||||||
Net (loss) Income Available to Common Stockholders | $ | (500 | ) | $ | 2,087 | $ | (64 | ) | $ | 4,543 | ||||||||||||||
Net Income Available to Common Stockholders | $ | 204 | $ | 288 |
ITEM 4. | CONTROLS AND PROCEDURES |
ITEM 1. | LEGAL PROCEEDINGS |
ITEM 1A. | RISK FACTORS |
ITEM 2. | UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS |
ITEM 6. | EXHIBIT INDEX |
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) | |
Amendment, dated December 1, 2023, to Membership Interest Purchase Agreement dated September 21, 2021, by and among Janel Group, Expedited Logistics and Freight Services, LLC and former shareholders of Expedited Logistics and Freight Services, LLC (filed herewith). | |
Sixth Amendment to Amended and Restated Loan and Security Agreement, dated December 21, 2023, by and among Santander Bank, N.A., as lender, and Janel Group, Inc., Expedited Logistics and Freight Services, LLC, and ELFS Brokerage, LLC, as borrowers, and Janel Corporation and Expedited Logistics and Freight Services, LLC, as loan party obligors (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/ Darren C. Seirer | |
Darren C. Seirer | |
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 |