Financial Highlights (Six Months ended 3/31/19 compared to 3/31/18):
- 10.5% Increase in Revenue to $14.4
Million
- 21% Increase in Gross Profit to $2.54
Million
- 160 Basis Point Improvement in Gross Margin to
17.7%
LISHUI, China, Sept. 24, 2019 /PRNewswire/ -- Farmmi, Inc. (the
"Company") (Nasdaq: FAMI), an agriculture products supplier in
China, today announced its
financial results for the six months ended March 31, 2019.
Ms. Yefang Zhang, Chairwoman and
CEO of the Company stated, "Our strong revenue growth and expansion
in gross margin reflects our consistent execution and business
leverage. We are benefiting from steady demand growth for our
healthy, high-quality agricultural products, led by demand for
mushrooms. With our solid platform to build upon, we have
initiated the next phase of our expansion. In line with our plan,
we bolstered our operations team earlier this year and completed
development of our robust online e-commerce platform. To further
accelerate our growth, we have increased our investment in targeted
promotional activities, brand awareness efforts and attracting new
customers. Our priority remains profitable growth and higher
operating efficiencies, as we further penetrate our core markets
and create additional value for shareholders."
Ms. Zhang continued: "We continue to develop relationships with
key partners, both major suppliers and family farms, while
controlling our operating costs, to achieve higher margins and
operating cash flows. We expect the demand for our products will
continue to grow in China as
consumption of mushroom products has consistently risen since 2011.
Additionally, the market is underpenetrated with the overall per
capital level of consumption in China still below Japan and the United
States. We expect to add to our planned domestic growth by
developing our international footprint as we move forward."
Financial Highlights
|
|
For the Six Months
Ended March 31,
|
|
($ millions,
except per share data)
|
|
2019
|
|
|
2018
|
|
|
%
Change
|
|
Revenues
|
|
$
|
14.39
|
|
|
$
|
13.02
|
|
|
|
10.52
|
%
|
Shiitake
|
|
|
8.35
|
|
|
|
7.98
|
|
|
|
4.64
|
%
|
Mu
Er
|
|
|
5.17
|
|
|
|
4.83
|
|
|
|
7.04
|
%
|
Other edible
fungi and
other agricultural products
|
|
|
0.87
|
|
|
|
0.21
|
|
|
|
314.29
|
%
|
Gross
profit
|
|
|
2.54
|
|
|
|
2.10
|
|
|
|
20.95
|
%
|
Gross
margin
|
|
|
17.65
|
%
|
|
|
16.12
|
%
|
|
|
1.53 pp*
|
|
Income from
operations
|
|
$
|
1.39
|
|
|
$
|
1.28
|
|
|
|
8.59
|
%
|
Interest
Expense
|
|
|
1.53
|
|
|
|
0.09
|
|
|
|
1673
|
%
|
Net (loss)
income
attributable to Farmmi, Inc.
|
|
|
(0.17)
|
|
|
|
1.20
|
|
|
|
(114.17)
|
%
|
Basic and diluted
(loss)
earnings per share
|
|
|
(0.01)
|
|
|
|
0.12
|
|
|
|
(108.33)
|
%
|
*Notes: pp represents percentage
points
First Six Months of Fiscal Year 2019 Financial
Results
Revenue
|
|
For the Six Months
Ended March 31,
|
|
|
|
2019
|
|
2018
|
|
($
millions)
|
|
Revenues
|
|
COGS
|
|
Gross
Profit
|
|
Revenues
|
|
COGS
|
|
Gross
Profit
|
|
Shiitake
|
|
$
|
8.35
|
|
$
|
6.89
|
|
$
|
1.46
|
|
$
|
7.98
|
|
$
|
6.70
|
|
$
|
1.28
|
|
Mu Er
|
|
|
5.17
|
|
|
4.30
|
|
|
0.87
|
|
|
4.83
|
|
|
4.04
|
|
|
0.79
|
|
Other edible fungi
and
other agricultural products
|
|
|
0.87
|
|
|
0.66
|
|
|
0.21
|
|
|
0.21
|
|
|
0.18
|
|
|
0.03
|
|
Total
|
|
|
14.39
|
|
|
11.85
|
|
|
2.54
|
|
|
13.02
|
|
|
10.92
|
|
|
2.10
|
|
Total revenues for the six months ended March 31, 2019 increased by $1.37 million, or 10.52%, to $14.39 million from $13.02
million for the same period of last year.
Revenue from sales of Shiitake increased by $0.37 million, or 4.64%, to $8.35 million for the six months ended
March 31, 2019 from $7.98 million for the same period of last year,
mainly due to the increased sales volume of our Shiitake products,
from 601 tons for the six months ended March
31, 2018 to 662 tons for the six months ended March 31, 2019, while unit sales price for
Shiitake did not change.
Revenue from sales of Mu Er increased by $0.34 million, or 7.04%, to $5.17 million for the six months ended
March 31, 2019 from $4.83 million for the same period of last year,
mainly due to the increased sales volume of our Mu Er products.
Sales volume of Mu Er increased to 419 tons for the six months
ended March 31, 2019 from 351 tons
for the same period of last year. The volume increase was partially
offset by a lower average selling price. Average unit sales price
of Mu Er decreased by 5.51%, which changed in line with the price
of raw materials. As a result of the increased competition amongst
the local suppliers. the Company was able to purchase raw materials
from suppliers at lower prices during the six months ended
March 31, 2019.
Revenue from sales of other edible fungi and other agricultural
products increased by $0.66 million,
or 314.29%, to $0.87 million for the
six months ended March 31, 2019 from
$0.21 million for the same period of
last year. The increase was primarily due to the increased online
sales of the products, including high-end edible fungi. The sales
volume increased to 28 tons for the six months ended March 31, 2019 from 7 tons for the same period of
last year. After the completion of software development and payment
system upgrades in March 2018, the
Company reorganized its operating team to put greater effort into
advertising activities in order to enhance brand awareness and
attract more customers. As a result, online sales increased
significantly in the six months ended March
31, 2019.
Beginning October 1, 2018, the
Company adopted Accounting Standards Update ("ASU") 2014-09 Revenue
from Contracts with Customers (FASB ASC Topic 606) using the
modified retrospective method under which cumulative effects are
recognized at the date of the initial application of ASC 606. With
the adoption of ASC 606, revenue is recognized by
following the five steps: (i) identify the contract(s) with the
customer; (ii) identify the performance obligations in the
contract; (iii) determine the transaction price; (iv) allocate the
transaction price to the performance obligations; (v) recognize
revenue when (or as) each performance obligation is satisfied. The
Company believes that its current revenue recognition policies are
generally consistent with the new revenue recognition standards set
forth in ASC 606. Based on the Company's assessment, potential
adjustments to input measures are not expected to be pervasive to
the majority of its contracts. As such, the Company has concluded
that the adoption of this new guidance did not result in a material
cumulative catch-up adjustment to the opening balance sheet of
retained earnings at the effective date or any other material
impact on its consolidated financial statements.
Cost of Revenues
Cost of revenues increased by $0.93
million, or 8.52%, to $11.85
million for the six months ended March 31, 2019 from $10.92
million for the same period of last year.
Cost of revenues of Shiitake increased by $0.19 million, or 2.84%, to $6.89 million for the six months ended
March 31, 2019 from $6.70 million for the same period of last year.
Cost of revenues of Mu Er increased by $0.26
million, or 6.44%, to $4.30
million for the six months ended March 31, 2019 from $4.04
million for the same period of last year. Cost of revenues
of other edible fungi and agricultural products increased by
$0.48 million, or 266.67%, to
$0.66 million for the six months
ended March 31, 2019 from
$0.18 million for the same period of
last year.
Gross Profit
Overall gross profit increased by $0.44
million, or 20.95%, to $2.54
million for the six months ended March 31, 2019 from $2.10
million for the same period of the last fiscal year. Gross
profit from sales of Shiitake increased by $0.18 million, or 14.06%, to $1.46 million for the six months ended
March 31, 2019 from $1.28 million for the same period of last year.
Gross profit from sales of Mu Er increased by $0.08 million, or 10.13%, to $0.87 million for the six months ended
March 31, 2019 from $0.79 million for the same period of last year.
Gross profit from sales of other edible fungi and agricultural
products increased by $0.18 million,
or 600.00%, to $0.21 million for the
six months ended March 31, 2019 from
$0.03 million for the same period of
last year. The increased gross profit was led by increased sales
for the six months of fiscal year 2019 ended March 31, 2019, as compared to the prior
period.
Overall gross margin increased by 1.53 percentage points to
17.65% for the six months ended March 31,
2019 from 16.92% for the same period of last year. The
increase in overall gross margin was primarily due to more revenue
generated from the Company's online shopping platforms. Sales made
through the online shopping platforms have higher gross margin than
traditional sales.
Income from Operations
Selling and distribution expenses increased by $0.19 million, or 210.10%, to $0.28 million for the six months ended
March 31, 2019 from $0.09 million for the same period of last year,
primarily due to the increased advertising and marketing expenses
as the Company focused on promotion for the Company's online
platforms, as well as the increased shipping expenses along with
the increased sales volume during the six months ended March 31, 2019, as compared to the same period of
last year.
General and administrative expenses increased by $0.15 million, or 19.94%, to $0.88 million for the six months ended
March 31, 2019 from $0.73 million for the same period of last year.
The increase was primarily attributable to the increased labor
costs, as the Company expanded its team to support the demand
growth in its business.
As a result, income from operations increased by $0.11 million or 8.59%, to $1.39 million for the six months ended
March 31, 2019 from $1.28 million for the same period of last
year.
Interest Expense
Interest expense was $1.53 million
for the six months ended March 31,
2019, as compared to $0.09
million for the same period of last year. The increase in
interest expense was primarily attributable to the amortization of
debt issuance costs and interest expense incurred for the senior
convertible notes during the six months ended March 31, 2019.
Provision for Income Taxes
For the six months ended March 31,
2019 and 2018, our income tax expense was $27,860 and $1,591,
respectively. The low income tax expense was primarily due to an
income tax incentive the Company received from the tax authority of
Lishui City. During the six months ended March 31, 2019, FLS Mushroom and Farmmi Food
received a temporary income tax break from the local tax authority
of Lishui City, for engaging in agricultural industry. Management
expects that the Company will continue to enjoy the tax break going
forward.
Net Income (loss)
Net loss was $0.17 million for the
six months ended March 31, 2019 as
compared to net income of $1.20
million for the same period of last year. After the
deduction of non-controlling interests, net loss attributable to
common shareholders for the six months ended March 31, 2019 was $0.17
million, or $0.01 per basic
and diluted share. This compares to net income attributable to
common shareholders of $1.20 million,
or $0.12 per basic and diluted share,
for the same period of last year.
Other comprehensive income
Other comprehensive income was $0.68
million and $0.70 million for
the six months ended March 31, 2019
and March 31, 2018, respectively. The
decrease was mainly due to the change of the exchange rate of RMB
against US$.
Financial Condition
As of March 31, 2019, the Company
had cash and cash equivalents of $5.3
million with a restricted cash balance of $0.5 million, and working capital of $21.9 million. As of March 31, 2019, the Company's accounts receivable
balance was $14.0 million, as
compared to $8.6 million in the same
period last year. The increase is primarily due to credit sales
made to one of the Company's largest customers. As of
July 31, 2019, the Company has
collected $6.7 million of the
outstanding accounts receivable balance as of March 31, 2019.
2018 Private Placement
On November 1, 2018, the Company
completed a $7.5 million private
placement with an institutional investor (the "Buyer"). Pursuant to
the Securities Purchase Agreement, dated as of November 1, 2018 (the "Securities Purchase
Agreement"), the Company issued and sold an aggregate of
$7.5 million of senior convertible
notes due April 1, 2020 (the "Notes")
and warrants (the "Investor Warrants") to purchase an aggregate of
800,000 of our Ordinary Shares. The Notes were initially
convertible into 1,198,084 Ordinary Shares at the rate of
$6.26 per Ordinary Share, which rate
is subject to adjustment as referenced in the form of Notes. The
Notes bear interest at 10% per year. The Investor Warrants are
exercisable by the holder thereof at any time on or after
November 1, 2018 and before
November 1, 2022. One year from the
date of issuance of the Investor Warrants, the Exercise Price of
the Investor Warrants will be lowered to the then-current Market
Price (as such term is defined in the Notes) of an Ordinary Share,
if such Market Price is less than the initial Exercise Price of
$6.53 per Ordinary Share.
On November 9, 2018, the Company
issued warrants to purchase 10% of the shares placed under the
Notes (initially 119,808) to the placement agent, at an exercise
price of $7.183 per share (the
"Placement Agent Warrants"). The Investor and Placement Agent
Warrants have a term of four years and are subject to adjustment
under certain events.
As of March 31, 2018, Ordinary
Shares totaling 131,223 were issued by the Company to the Buyer
equaling principal and interests amounted to $485,208.
About Farmmi, Inc.
Headquartered in Lishui, Zhejiang, Farmmi, Inc. (the "Company")
(Nasdaq: FAMI), is an agricultural products supplier and primarily
processes and sells Shiitake mushrooms, Mu Er mushrooms, other
edible fungi, and other agricultural products. In addition, Farmmi
Liangpin Market, the Company's ecommerce platform, provides an
opportunity for consumers to access locally sourced agricultural
products. For further information regarding the Company, please
visit: http://ir.farmmi.com.cn/.
Forward-Looking Statements
This announcement contains forward-looking statements within
the meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements. These forward-looking statements involve known and
unknown risks and uncertainties and are based on current
expectations and projections about future events and financial
trends that the Company believes may affect its financial
condition, results of operations, business strategy and financial
needs. Investors can identify these forward-looking statements by
words or phrases such as "may," "will," "expect," "anticipate,"
"aim," "estimate," "intend," "plan," "believe," "potential,"
"continue," "is/are likely to" or other similar expressions. The
Company undertakes no obligation to update forward-looking
statements to reflect subsequent occurring events or circumstances,
or changes in its expectations, except as may be required by law.
Although the Company believes that the expectations expressed in
these forward-looking statements are reasonable, it cannot assure
you that such expectations will turn out to be correct, and the
Company cautions investors that actual results may differ
materially from the anticipated results.
Farmmi,
Inc.
|
Condensed
Consolidated Balance Sheets
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
March
31,
|
|
September
30,
|
|
|
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash
|
$
|
5,338,219
|
$
|
4,925,165
|
|
|
Restricted
cash
|
|
500,000
|
|
-
|
|
|
Accounts receivable,
net - trade
|
|
13,974,824
|
|
8,601,269
|
|
|
Accounts receivable,
net - related party
|
|
19,126
|
|
1,257
|
|
|
Inventory,
net
|
|
1,860,567
|
|
1,808,143
|
|
|
Advances to
suppliers
|
|
8,488,640
|
|
5,868,486
|
|
|
Other current
assets
|
|
227,489
|
|
135,314
|
|
Total current
assets
|
|
30,408,865
|
|
21,339,634
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
122,667
|
|
136,363
|
Intangible
assets
|
|
99,513
|
|
-
|
Restricted cash -
long term
|
|
600,000
|
|
600,000
|
Total
Assets
|
$
|
31,231,045
|
$
|
22,075,997
|
|
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Short-term bank
loans
|
$
|
1,490,070
|
$
|
1,455,580
|
|
|
Long-term bank loans
-current portion
|
|
655,631
|
|
-
|
|
|
Accounts payable -
trade
|
|
423,231
|
|
343,141
|
|
|
Due to related
parties
|
|
47,381
|
|
122,800
|
|
|
Advances from
customers
|
|
54,959
|
|
-
|
|
|
Convertible notes
payable
|
|
5,251,075
|
|
-
|
|
|
Other current
liabilities
|
|
606,710
|
|
300,379
|
|
Total current
liabilities
|
|
8,529,057
|
|
2,221,900
|
|
|
|
|
|
|
|
|
|
Long-term bank
loans
|
|
-
|
|
640,455
|
Total
Liabilities
|
|
8,529,057
|
|
2,862,355
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 20,000,000 shares authorized,
|
|
|
|
|
|
|
12,063,223 and
11,932,000 shares issued and outstanding
at March 31, 2019 and September 30, 2018
|
|
12,063
|
|
11,932
|
|
|
Additional paid-in
capital
|
|
14,298,511
|
|
11,322,819
|
|
|
Statutory
reserve
|
|
229,512
|
|
229,512
|
|
|
Retained
earnings
|
|
6,826,761
|
|
6,996,837
|
|
|
Accumulated other
comprehensive income (loss)
|
|
440,061
|
|
(222,830)
|
|
Total
Stockholders' Equity
|
|
21,806,908
|
|
18,338,270
|
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
895,080
|
|
875,372
|
|
Total
Equity
|
|
22,701,988
|
|
19,213,642
|
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
$
|
31,231,045
|
$
|
22,075,997
|
Farmmi,
Inc.
|
Condensed
Consolidated Statements of Operations and Comprehensive
Income
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six
Months Ended March 31,
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
Sales to third
parties
|
|
$
|
14,386,404
|
$
|
12,865,585
|
|
Sales to
related parties
|
|
|
1,783
|
|
154,452
|
|
|
Total
revenues
|
|
|
14,388,187
|
|
13,020,037
|
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
|
11,845,025
|
|
10,920,758
|
|
|
|
|
|
|
|
|
Gross
Profit
|
|
|
2,543,162
|
|
2,099,279
|
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
|
281,213
|
|
90,684
|
|
General and
administrative expenses
|
|
|
876,746
|
|
731,008
|
|
Total operating
expenses
|
|
|
1,157,959
|
|
821,692
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
|
1,385,203
|
|
1,277,587
|
|
|
|
|
|
|
|
|
Other income
(expenses)
|
|
|
|
|
|
|
Interest
income
|
|
|
451
|
|
376
|
|
Interest
expense
|
|
|
(1,527,302)
|
|
(86,138)
|
|
Other income
(expenses), net
|
|
|
(1,583)
|
|
7,452
|
|
Total other
expenses
|
|
|
(1,528,434)
|
|
(78,310)
|
|
|
|
|
|
|
|
|
(Loss)
income before income taxes
|
|
|
(143,231)
|
|
1,199,277
|
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
|
27,860
|
|
1,591
|
|
|
|
|
|
|
|
|
Net
(loss)income
|
|
|
(171,091)
|
|
1,197,686
|
|
|
|
|
|
|
|
|
|
Less: net loss
attributable to non-controlling interest
|
|
|
(1,015)
|
|
(1,667)
|
|
|
|
|
|
|
|
|
Net
(loss)income attributable to Farmmi, Inc.
|
|
$
|
(170,076)
|
$
|
1,199,353
|
|
|
|
|
|
|
|
|
Comprehensive
income
|
|
|
|
|
|
|
Net (loss)
income
|
|
$
|
(171,091)
|
$
|
1,197,686
|
|
Other
comprehensive income: foreign currency translation
gain
|
683,614
|
|
700,595
|
|
Total
comprehensive income
|
|
|
512,523
|
|
1,898,281
|
|
Comprehensive
income attributable to non-controlling interest
|
|
19,708
|
|
51,697
|
|
|
|
|
|
|
|
|
Comprehensive
income attributable to Farmmi, Inc.
|
|
$
|
492,815
|
$
|
1,846,584
|
|
|
|
|
|
|
|
|
|
Weighted
average number of shares, basic and diluted
|
|
|
11,427,753
|
|
10,411,231
|
|
|
|
|
|
|
|
|
|
Basic and
diluted (loss) earnings per common share
|
|
$
|
(0.01)
|
$
|
0.12
|
Farmmi,
Inc.
|
Condensed
Consolidated Statements of Changes in Stockholders'
Equity
|
For the Six
Months Ended March 31, 2019 and 2018
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Paid
in
|
|
Comprehensive
|
|
Statutory
|
|
Retained
|
|
Total
Stockholders'
|
|
Non-controlling
|
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income
(loss)
|
|
Reserve
|
|
earnings
|
|
Equity
|
|
Interest
|
|
Total
Equity
|
Balance at
September 30, 2017
|
|
10,000,000
|
|
$ 10,000
|
|
$
5,023,080
|
|
$
718,941
|
|
$
229,512
|
|
$
3,774,805
|
|
$
9,756,338
|
|
$
896,576
|
|
$
10,652,914
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Share issuance
– IPO, net
|
|
1,932,000
|
|
1,932
|
|
6,299,739
|
|
-
|
|
-
|
|
-
|
|
6,301,671
|
|
-
|
|
6,301,671
|
Foreign
currency translation gain
|
|
-
|
|
-
|
|
-
|
|
647,231
|
|
-
|
|
-
|
|
647,231
|
|
53,364
|
|
700,595
|
Net income
(loss) for the period
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
1,199,353
|
|
1,199,353
|
|
(1,667)
|
|
1,197,686
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
March 31, 2018
|
|
11,932,000
|
|
$ 11,932
|
|
$
11,322,819
|
|
$
1,366,172
|
|
$
229,512
|
|
$
4,974,158
|
|
$
17,904,593
|
|
$
948,273
|
|
$
18,852,866
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
September 30, 2018
|
|
11,932,000
|
|
$ 11,932
|
|
$
11,322,819
|
|
$
(222,830)
|
|
$
229,512
|
|
$
6,996,837
|
|
$
18,338,270
|
|
$
875,372
|
|
$
19,213,642
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuance of
common shares for convertible notes redemption
|
|
131,223
|
|
131
|
|
485,077
|
|
-
|
|
-
|
|
-
|
|
485,208
|
|
-
|
|
485,208
|
Beneficial
conversion feature associated with convertible
notes
|
|
|
|
|
670,618
|
|
|
|
|
|
|
|
670,618
|
|
|
|
670,618
|
Issuance of
warrants associated with convertible notes
|
|
|
|
|
|
1,819,997
|
|
|
|
|
|
|
|
1,819,997
|
|
|
|
1,819,997
|
Foreign
currency translation gain
|
|
-
|
|
-
|
|
-
|
|
662,891
|
|
-
|
|
-
|
|
662,891
|
|
20,723
|
|
683,614
|
Net income
(loss) for the period
|
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(170,076)
|
|
(170,076)
|
|
(1,015)
|
|
(171,091)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
March 31, 2019
|
|
12,063,223
|
|
$ 12,063
|
|
$
14,298,511
|
|
$
440,061
|
|
$
229,512
|
|
$
6,826,761
|
|
$
21,806,908
|
|
$
895,080
|
|
$
22,701,988
|
Farmmi,
Inc.
|
Condensed
Consolidated Statements of Cash Flows
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Six Months
Ended March 31,
|
|
|
|
|
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
Net
income(loss)
|
|
|
$
(171,091)
|
|
$
1,197,686
|
|
Adjustments to
reconcile net income(loss) to net cash
|
|
|
|
|
|
|
used in
operating activities:
|
|
|
|
|
|
|
Changes in
allowances - accounts receivable
|
-
|
|
12,909
|
|
|
|
Depreciation
expense
|
|
22,976
|
|
6,464
|
|
|
|
Loss from
disposal of property and equipment
|
-
|
|
833
|
|
|
|
Restricted
cash
|
|
-
|
|
-
|
|
|
|
Accrued
interest expense for convertible note
|
500,000
|
|
-
|
|
|
|
Amortisation of
deferred financing costs
|
943,215
|
|
-
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
Accounts
receivable, net
|
|
(5,096,374)
|
|
(3,629,315)
|
|
|
|
Inventory,
net
|
|
(9,412)
|
|
(648,303)
|
|
|
|
Advances to
suppliers
|
|
(2,437,474)
|
|
(104,714)
|
|
|
|
Other current
assets
|
|
(87,404)
|
|
(144,724)
|
|
|
|
Long-term
prepaid expenses
|
-
|
|
4,370
|
|
|
|
Accounts
payable
|
|
70,694
|
|
(144,282)
|
|
|
|
Advances from
customers
|
53,993
|
|
67,241
|
|
|
|
Other current
liabilities
|
|
294,839
|
|
29,810
|
Net cash used in
operating activities
|
(5,916,038)
|
|
(3,352,025)
|
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
(6,346)
|
|
(2,782)
|
|
|
|
Purchase of
Intangiable assets
|
(97,764)
|
|
-
|
Net cash used in
investing activities
|
(104,110)
|
|
(2,782)
|
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Payments of
deferred financing costs
|
(716,318)
|
|
-
|
|
|
|
Gross Proceeds
from issuance of convertible note
|
7,500,000
|
|
-
|
|
|
|
Net Proceeds
from Initial Public Offering - stock issuance
|
-
|
|
7,728,000
|
|
|
|
Direct costs
disbursed from Initial Public Offering proceeds
|
-
|
|
(1,147,549)
|
|
|
|
Escrow deposit
paid under underwriting agreement
|
-
|
|
(600,000)
|
|
|
|
Borrowings from
bank loans
|
1,463,870
|
|
-
|
|
|
|
Repayments of
bank loans
|
(1,463,870)
|
|
-
|
|
|
|
Repayments of
loans from related parties
|
(76,253)
|
|
(426,316)
|
Net cash provided
by financing activities
|
6,707,429
|
|
5,554,135
|
|
|
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
225,773
|
|
77,547
|
|
|
|
|
|
|
|
|
|
Net increase in
cash, cash equivalents and restricted cash
|
913,054
|
|
2,276,875
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of period
|
4,925,165
|
|
2,590,539
|
|
|
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of period
|
$
5,838,219
|
|
$
4,867,414
|
|
|
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
Income taxes
paid
|
|
|
$
11,254
|
|
$
4,312
|
|
Interest
paid
|
|
|
$
71,670
|
|
$
82,987
|
|
|
|
|
|
|
|
|
|
Non-cash
financing activities
|
|
|
|
|
|
Conversion of notes
to 131,223 shares of common stock
|
$
485,208
|
|
$
-
|
|
Accrued interest for
convertible notes
|
$
500,000
|
|
$
-
|
View original
content:http://www.prnewswire.com/news-releases/farmmi-inc-reports-financial-results-for-the-first-six-months-of-fiscal-year-2019-300923755.html
SOURCE Farmmi, Inc.