Financial Highlights (Twelve Months ended 9/30/19 compared to 9/30/18):
- 3.4% Increase in Revenue to $30.8
Million
- 7.0% Increase in Gross Profit to $5.4
Million
- 59 Basis Point Improvement in Gross Margin to
17.58%
LISHUI, China, Dec. 31, 2019 /PRNewswire/ -- Farmmi, Inc. (the
"Company") (Nasdaq: FAMI), an agriculture products supplier in
China, today announced its
financial results for the fiscal year ended September 30, 2019.
Ms. Yefang Zhang, Farmmi's
Chairwoman and CEO, stated, "Fiscal year 2019 was a very successful
year for Farmmi as we continued to execute on our long-term growth
plan, further establish our brand and build the foundation for our
future success. Overall revenues would have been higher
absent the impact of the depreciation of the RMB against the U.S.
dollar. We are very encouraged with the ongoing expansion of
our online sales platform, which accounted for over 20% of total
sales in the fiscal year 2019, representing an increase of more
than 83% over the fiscal year 2018. Our success in developing
an effective online sales platform positions us for accelerated
domestic growth as we are directly aligned with the shift in
Chinese consumers purchasing higher volumes of products like ours
both online and in brick and mortar stores. This will also
make our products accessible in international markets with the
click of a mouse."
Ms. Zhang continued: "We achieved a significant improvement in
gross margin to 17.58% in fiscal year 2019 from 16.99% in fiscal
year 2018, as we benefited from higher online sales combined with
strategic programs targeting both pricing and operating
costs. We benefited from relatively stable unit prices for
Shiitake, which was partially offset by unit price declines for Mu
Er. The pricing dynamic is a function both the overall supply
dynamics and our deep understanding of the edible fungi market,
constant market research, and communication with our key
suppliers. As a result, we have been able to obtain favorable
prices for premium quality raw materials. We are also pleased
with our progress in further developing relationships with key
partners, both major suppliers and family farms. We are benefitting
from growth in orders across all channels, but have higher
confidence given the strong, multi-year relationships we have with
some of China's largest exporters
that can fuel our growth. Overall, we are encouraged with our
progress but have much work ahead of us as we continue to leverage
our premium product quality, highly experienced employee base,
local production facilities and strong supply chain
relationships. Our team is focused and we remain dedicated to
building value for the Company and shareholders."
Financial Highlights
|
For the Twelve
Months Ended September 30,
|
|
($ millions,
except per share data)
|
2019
|
|
|
2018
|
|
%
Change
|
|
Revenues
|
$
|
30.84
|
|
|
$
|
29.82
|
|
|
3.43
|
%
|
Shiitake
|
|
17.89
|
|
|
|
16.75
|
|
|
6.81
|
%
|
Mu
Er
|
|
11.66
|
|
|
|
12.19
|
|
|
(4.36)
|
%
|
Other edible fungi and other
agricultural products
|
|
1.29
|
|
|
|
0.88
|
|
|
47.15
|
%
|
Gross
profit
|
|
5.42
|
|
|
|
5.07
|
|
|
7.00
|
%
|
Gross
margin
|
|
17.58
|
%
|
|
|
16.99
|
%
|
|
0.59 pp*
|
Income from
operations
|
$
|
3.04
|
|
|
$
|
3.08
|
|
|
(1.37)
|
%
|
Interest
Expense
|
|
1.20
|
|
|
|
0.15
|
|
|
675.46
|
%
|
Net (loss)
income
|
|
(0.31)
|
**
|
|
|
3.22
|
|
|
(109.63)
|
%
|
Basic and diluted
(loss) earnings per share
|
|
(0.03)
|
**
|
|
|
0.29
|
|
|
(110.34)
|
%
|
Notes:
* pp represents percentage points
** The fiscal year ended September 30,
2019 reflects the significant negative impact of
$3.31 million in expenses due to the
amortization of debt issuance costs and interest expenses
associated with the Company's convertible notes issued in
November 2018, as compared to
$0.15 million in the same period of
last year.
Revenue
|
For the Twelve
Months September 30,
|
|
2019
|
|
2018
|
($
millions)
|
Revenues
|
|
COGS
|
|
Gross
Profit
|
|
Revenues
|
|
COGS
|
|
Gross
Profit
|
Shiitake
|
$
|
14.8
|
|
$
|
14.75
|
|
$
|
3.14
|
|
$
|
13.96
|
|
$
|
13.96
|
|
$
|
2.80
|
Mu Er
|
|
9.7
|
|
|
9.69
|
|
|
1.97
|
|
|
10.13
|
|
|
10.13
|
|
|
2.10
|
Other edible fungi
and other agricultural products
|
|
0.98
|
|
|
0.98
|
|
|
0.31
|
|
|
0.66
|
|
|
0.66
|
|
|
0.21
|
Total
|
|
25.42
|
|
|
25.42
|
|
|
5.42
|
|
|
24.75
|
|
|
24.75
|
|
|
5.11
|
Total revenues for the fiscal year ended September 30, 2019 increased by $1.02 million, or 3.43%, to $30.8 million from $29.8
million.
Revenue from sales of Shiitake increased by $1.1 million, or 6.81%, to $17.9 million for the fiscal year ended
September 30, 2019 from $16.8 million for the same period of last year,
mainly due to the increased sales volume of our Shiitake products,
from 1,299 tons for the fiscal year ended September 30, 2018 to 1,420 tons for the fiscal
year ended September 30, 2019, while
unit sales price for Shiitake remained relatively stable.
Revenue from sales of Mu Er decreased by $0.53 million, or 4.36%, to $11.7 million for the fiscal year ended
September 30, 2019 from $12.2 million for the same period of last year,
due a slight decrease in sales volume, and unit sales price due to
the depreciation of RMB against U.S. dollar. Sales volume was 945
tons for the fiscal year ended September 30,
2019, as compared to 967 tons for the same period of last
year, while average unit sales price was $12,338 and $12,606, respectively.
Revenue from sales of other edible fungi and other agricultural
products increased by $0.41 million,
or 47.15%, to $1.3 million for the
fiscal year ended September 30, 2019
from $0.88 million for the same
period of last year. The increase was primarily due to increased
online sales of high-end edible fungi, which has higher unit sales
prices. In addition, 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 $0.67
million, or 2.70%, to $25.4
million for the fiscal year ended September 30, 2019 from $24.8 million for the same period of last
year.
Cost of revenues of Shiitake increased by $0.8 million or 5.71%, to $14.8 million for the fiscal year ended
September 30, 2019 from $14.0 million for the same period of last
year. Cost of revenues of Mu Er decreased by $0.44 million, or 4.41%, to $9.7 million for the fiscal year ended
September 30, 2019 from $10.1 million for the same period of last year.
Cost of revenues of other edible fungi and agricultural products
increased by $0.32 million, or
48.02%, to $0.98 million for the
fiscal year ended September 30, 2019
from $0.66 million for the same
period of last year.
Gross Profit
Overall gross profit increased by $0.35
million, or 7.00%, to $5.42
million for the fiscal year ended September 30, 2019 from $5.07 million for the same period of the last
year. Gross profit from sales of Shiitake increased by $0.34 million, or 12.29%, to $3.14 million for the fiscal year ended
September 30, 2019 from $2.80 million for the same period of last year.
Gross profit from sales of Mu Er decreased by $.09 million, or 4.07%, to $1.97 million for the fiscal year ended
September 30, 2019 from $2.06 million for the same period of last year.
Gross profit from sales of other edible fungi and agricultural
products increased by $0.10 million,
or 44.44%, to $0.31 million for the
year ended September 30, 2019 from
$0.21 million for the same period of
last year. The increased overall gross profit was led by increased
sales for the fiscal year ended September
30, 2019, as compared to the prior period.
Overall gross margin increased by 0.59 percentage points to
17.58% for the fiscal year ended September 30, 2019 from 16.99% for the same
period of last year. The increase in overall gross margin was
primarily due to increased revenue generated from the Company's
online shopping platforms, combined with strategic programs
targeting both pricing and operating costs. Sales made through the
online shopping platforms have higher gross margin than traditional
sales.
Income from Operations
Selling and distribution expenses increased by $0.04 million, or 7.64 %, to $0.59 million for the fiscal year ended
September 30, 2019 from $0.55 million for the same period of last year,
primarily due to the increase in service fees, as more services
were provided by third parties for the Company's online
platforms along with the increased online business activities
during the fiscal year ended September 30,
2019, as compared to the same period of last year.
General and administrative expenses increased by $0.35 million, or 24.61%, to $1.79 million for the fiscal year ended
September 30, 2019 from $1.44 million for the same period of last year.
The increase was primarily attributable to increased labor
costs, as the Company expanded its team to support demand
growth in its business, along with increased costs associated with
being a public company.
As a result, income from operations decreased by $0.42 million or 1.37%, to $3.04 million for the fiscal year ended
September 30, 2019 from $3.08 million for the same period of last
year.
Interest Expense
Interest expense was $1.20 million
for the fiscal year ended September 30,
2019, as compared to $0.15
million for the same period of last year. The increase in
interest expense was primarily attributable to the interest expense
incurred for the senior convertible notes issued in November 2018.
Provision for Income Taxes
For the fiscal years ended September
30, 2019 and 2018, the Company's income tax expense was
$34,564 and $9,063, 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 fiscal year
ended September 30, 2019, the
Company's subsidiaries, FLS Mushroom and Farmmi Food received an
income tax break from the local tax authority of Lishui City, for
engaging in the agricultural products processing industry.
Management expects that the Company will continue to enjoy the tax
break going forward.
Net Income (loss)
Net loss was $0.31 million for the
fiscal year ended September 30, 2019,
a decrease of  $3.54 million from net
income of $3.23 million for the same
period of fiscal year 2018. The fiscal year ended
September 30, 2019 reflects the
significant negative impact of $3.31
million in expenses due to the amortization of debt issuance
costs and interest expenses associated with the Company's
convertible notes issued in November
2018, as compared to $0.15
million in the same period of last year.
Financial Condition
Primarily due to advances made to the Company's suppliers, as of
September 30, 2019, the Company had a
balance of cash and cash equivalents of $0.14 million with a restricted cash balance of
$0.6 million. As of
December 19, 2019, approximately
$13.5 million, or 98% of the
Company's accounts receivable balance, as of September 30, 2019, was collected, and
approximately $6.1 million or 44% of
the Company's advances to suppliers were utilized. Advances
were made based on sales orders received and expected demand over
the coming months. The remaining balance of advances to
suppliers is expected to be fully utilized by March 2020.
About Farmmi, Inc.
Headquartered in Lishui, Zhejiang, Farmmi, Inc. (NASDAQ: FAMI), is a
leading agricultural products supplier, processor and retailer of
Shiitake mushrooms, Mu Er mushrooms, other edible fungi, and many
other sought-after agricultural products. The Company's
Farmmi Liangpin Market serves as a global trading platform for
Chinese geographical indication agricultural products and is one of
the largest platforms for consumers to access locally sourced
agricultural products. For further information about 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.
|
Consolidated
Balance Sheets
|
|
|
|
September
30,
|
|
September
30,
|
|
|
2019
|
|
2018
|
Assets
|
|
|
|
|
Current
Assets
|
|
|
|
|
|
|
Cash
|
$
|
135,125
|
$
|
4,925,165
|
|
|
Restricted
cash
|
|
18,690
|
|
-
|
|
|
Accounts receivable,
net - trade
|
|
13,824,937
|
|
8,601,269
|
|
|
Accounts receivable,
net - related party
|
|
2,654
|
|
1,257
|
|
|
Inventory,
net
|
|
1,459,247
|
|
1,808,143
|
|
|
Advances to
suppliers
|
|
14,034,379
|
|
5,868,486
|
|
|
Other current
assets
|
|
229,996
|
|
135,314
|
|
Total current
assets
|
|
29,705,028
|
|
21,339,634
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
139,468
|
|
136,363
|
Intangible assets,
net
|
|
38,135
|
|
-
|
Restricted cash -
long term
|
|
600,000
|
|
600,000
|
Total
Assets
|
$
|
30,482,631
|
$
|
22,075,997
|
|
|
|
|
|
Liabilities and
Equity
|
|
|
|
|
|
Current
Liabilities
|
|
|
|
|
|
|
Short-term bank
loan
|
$
|
1,400,894
|
$
|
1,455,580
|
|
|
Accounts payable -
trade
|
|
293,264
|
|
343,141
|
|
|
Due to related
parties
|
|
2,652,882
|
|
122,800
|
|
|
Advances from
customers
|
|
5,926
|
|
-
|
|
|
Convertible notes
payable
|
|
2,926,361
|
|
-
|
|
|
Other current
liabilities
|
|
865,753
|
|
300,379
|
|
Total current
liabilities
|
|
8,145,080
|
|
2,221,900
|
|
|
|
|
|
|
|
|
Long-term bank
loan
|
|
-
|
|
640,455
|
Total
Liabilities
|
|
8,145,080
|
|
2,862,355
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
Common stock, $0.001
par value, 20,000,000 shares authorized,
|
|
|
|
|
|
12,589,857 and
11,932,000 shares issued and outstanding at September 30, 2019 and
2018
|
|
12,590
|
|
11,932
|
|
|
Additional paid-in
capital
|
|
15,762,867
|
|
11,322,819
|
|
|
Statutory
reserve
|
|
597,528
|
|
229,512
|
|
|
Retained
earnings
|
|
6,321,384
|
|
6,996,837
|
|
|
Accumulated other
comprehensive loss
|
|
(1,195,866)
|
|
(222,830)
|
|
Total
Stockholders' Equity
|
|
21,498,503
|
|
18,338,270
|
|
|
|
|
|
|
|
Non-controlling
Interest
|
|
839,048
|
|
875,372
|
|
Total
Equity
|
|
22,337,551
|
|
19,213,642
|
|
|
|
|
|
|
Total Liabilities
and Equity
|
$
|
30,482,631
|
$
|
22,075,997
|
|
|
|
|
|
|
|
|
|
|
Farmmi,
Inc.
|
Consolidated
Statements of Operations and Comprehensive Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
|
|
For the
Years Ended September 30,
|
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
|
Revenues
|
|
|
|
|
|
|
|
Sales to third
parties
|
$
|
30,825,552
|
$
|
29,663,670
|
$
|
25,866,459
|
|
Sales to
related party
|
|
16,323
|
|
155,418
|
|
799,142
|
|
|
Total
revenues
|
|
30,841,875
|
|
29,819,088
|
|
26,665,601
|
|
|
|
|
|
|
|
Cost of
revenues
|
|
25,419,751
|
|
24,751,473
|
|
22,140,879
|
|
|
|
|
|
|
|
Gross
Profit
|
|
5,422,124
|
|
5,067,615
|
|
4,524,722
|
|
|
|
|
|
|
|
Operating
expenses
|
|
|
|
|
|
|
|
Selling and
distribution expenses
|
|
589,381
|
|
547,532
|
|
140,019
|
|
General and
administrative expenses
|
|
1,797,130
|
|
1,442,155
|
|
915,474
|
|
Total operating
expenses
|
|
2,386,511
|
|
1,989,687
|
|
1,055,493
|
|
|
|
|
|
|
|
|
Income from
operations
|
|
3,035,613
|
|
3,077,928
|
|
3,469,229
|
|
|
|
|
|
|
|
Other
(expenses) income
|
|
|
|
|
|
|
|
Interest
income
|
|
635
|
|
731
|
|
311
|
|
Interest
expense
|
|
(1,197,317)
|
|
(154,400)
|
|
(209,159)
|
|
Amortization of
debt issuance costs
|
|
(2,113,492)
|
|
-
|
|
-
|
|
Other
(expenses) income, net
|
|
(1,879)
|
|
314,070
|
|
15,758
|
|
Total other
(expenses) income
|
|
(3,312,053)
|
|
160,401
|
|
(193,090)
|
|
|
|
|
|
|
|
|
(Loss)
income before income taxes
|
|
(276,440)
|
|
3,238,329
|
|
3,276,139
|
|
|
|
|
|
|
|
Provision
for income taxes
|
|
34,564
|
|
9,063
|
|
5,793
|
|
|
|
|
|
|
|
Net (loss)
income
|
|
(311,004)
|
|
3,229,266
|
|
3,270,346
|
|
|
|
|
|
|
|
|
Less: net
(loss) income attributable to non-controlling
interest
|
|
(3,567)
|
|
7,234
|
|
(964)
|
|
|
|
|
|
|
|
|
Net (loss)
income attributable to Farmmi, Inc.
|
$
|
(307,437)
|
$
|
3,222,032
|
$
|
3,271,310
|
|
|
|
|
|
|
|
Comprehensive
(loss) income
|
|
|
|
|
|
|
|
Net (loss)
income
|
$
|
(311,004)
|
$
|
3,229,266
|
$
|
3,270,346
|
|
Other
comprehensive (loss) income: foreign currency translation (loss)
gain
|
|
(1,005,793)
|
|
(970,209)
|
|
95,185
|
|
Total
comprehensive (loss) income
|
|
(1,316,797)
|
|
2,259,057
|
|
3,365,531
|
|
Comprehensive
(loss) income attributable to non-controlling
interest
|
|
(36,324)
|
|
(21,204)
|
|
1,075
|
|
|
|
|
|
|
|
|
Comprehensive
(loss) income attributable to Farmmi, Inc.
|
$
|
(1,280,473)
|
$
|
2,280,261
|
$
|
3,364,456
|
|
|
|
|
|
|
|
|
Weighted
average number of shares, basic and diluted
|
|
11,678,773
|
|
11,173,699
|
|
10,000,000
|
|
|
|
|
|
|
|
|
|
Basic and
diluted (loss) earnings per common share
|
$
|
(0.03)
|
$
|
0.29
|
$
|
0.33
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Farmmi,
Inc.
|
Consolidated
Statements of Changes in Stockholders' Equity
|
For the
Years Ended September 30, 2019, 2018 and 2017
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Additional
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Common
Stock
|
|
Paid
in
|
|
Comprehensive
|
|
Statutory
|
|
Retained
|
|
Total
Stockholders'
|
|
Non-Controlling
|
|
|
|
Shares
|
|
Amount
|
|
Capital
|
|
Income
(loss)
|
|
Reserves
|
|
Earnings
|
|
Equity
|
|
Interest
|
|
Total
Equity
|
Balance at
September 30, 2016
|
10,000,000
|
|
$ 10,000
|
|
$
5,023,080
|
|
$
625,795
|
|
$
-
|
|
$
733,007
|
|
$
6,391,882
|
|
$
895,501
|
|
$
7,287,383
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign
currency translation gain
|
-
|
|
-
|
|
-
|
|
93,146
|
|
-
|
|
-
|
|
93,146
|
|
2,039
|
|
95,185
|
Net income
(loss) for the year
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,271,310
|
|
3,271,310
|
|
(964)
|
|
3,270,346
|
Statutory
reserve
|
-
|
|
-
|
|
-
|
|
-
|
|
229,512
|
|
(229,512)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Proceeds from
Initial Public Offering - stock issuance
|
1,932,000
|
|
1,932
|
|
7,726,068
|
|
-
|
|
-
|
|
-
|
|
7,728,000
|
|
-
|
|
7,728,000
|
Direct costs
disbursed from Initial Public Offering proceeds
|
-
|
|
-
|
|
(1,426,329)
|
|
-
|
|
-
|
|
-
|
|
(1,426,329)
|
|
-
|
|
(1,426,329)
|
Foreign
currency translation loss
|
-
|
|
-
|
|
-
|
|
(941,771)
|
|
-
|
|
-
|
|
(941,771)
|
|
(28,438)
|
|
(970,209)
|
Net income for
the year
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
3,222,032
|
|
3,222,032
|
|
7,234
|
|
3,229,266
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
657,857
|
|
658
|
|
1,949,434
|
|
-
|
|
-
|
|
-
|
|
1,950,092
|
|
-
|
|
1,950,092
|
Beneficial
conversion feature associated with convertible
notes
|
-
|
|
-
|
|
670,618
|
|
-
|
|
-
|
|
-
|
|
670,618
|
|
-
|
|
670,618
|
Issuance of
warrants associated with convertible notes
|
-
|
|
-
|
|
1,819,996
|
|
-
|
|
-
|
|
-
|
|
1,819,996
|
|
-
|
|
1,819,996
|
Foreign
currency translation loss
|
-
|
|
-
|
|
-
|
|
(973,036)
|
|
-
|
|
-
|
|
(973,036)
|
|
(32,757)
|
|
(1,005,793)
|
Net loss for
the year
|
-
|
|
-
|
|
-
|
|
-
|
|
-
|
|
(307,437)
|
|
(307,437)
|
|
(3,567)
|
|
(311,004)
|
Statutory
reserve
|
-
|
|
-
|
|
-
|
|
-
|
|
368,016
|
|
(368,016)
|
|
-
|
|
-
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at
September 30, 2019
|
12,589,857
|
|
$ 12,590
|
|
$
15,762,867
|
|
$
(1,195,866)
|
|
$
597,528
|
|
$
6,321,384
|
|
$
21,498,503
|
|
$
839,048
|
|
$
22,337,551
|
|
|
Farmmi,
Inc.
|
Consolidated
Statements of Cash Flows
|
|
|
For the Years
Ended September 30,
|
|
2019
|
|
2018
|
|
2017
|
|
|
|
|
|
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net (loss)
income
|
$
(311,004)
|
|
$
3,229,266
|
|
$
3,270,346
|
|
Adjustments to
reconcile net (loss) income to net cash
|
|
|
|
|
|
|
|
(used in)
provided by operating activities:
|
|
|
|
|
|
|
|
Depreciation
and amortization expense
|
46,779
|
|
24,886
|
|
21,939
|
|
|
Loss from
disposal of property and equipment
|
-
|
|
873
|
|
-
|
|
|
Accrued
interest expense for convertible notes
|
1,087,774
|
|
-
|
|
-
|
|
|
Amortization of
deferred financing costs
|
2,113,492
|
|
-
|
|
-
|
|
Changes in
operating assets and liabilities:
|
|
|
|
|
|
|
|
Accounts
receivable, net
|
(5,759,327)
|
|
(3,804,464)
|
|
133,681
|
|
|
Inventory,
net
|
291,652
|
|
(280,017)
|
|
(112,128)
|
|
|
Advances to
suppliers
|
(8,705,402)
|
|
(1,980,862)
|
|
(378,713)
|
|
|
Other current
assets
|
(103,561)
|
|
(118,755)
|
|
278,247
|
|
|
Long-term
prepaid expenses
|
-
|
|
-
|
|
24,192
|
|
|
Accounts
payable
|
(38,392)
|
|
(62,706)
|
|
(51,038)
|
|
|
Advances from
customers
|
6,151
|
|
-
|
|
(1,090,595)
|
|
|
Other current
liabilities
|
598,551
|
|
266,769
|
|
(91,012)
|
Net cash provided
by (used in) operating activities
|
(10,773,287)
|
|
(2,725,010)
|
|
2,004,919
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchase of
property, plant and equipment
|
(51,781)
|
|
(64,715)
|
|
(66,503)
|
|
|
Purchase of
intangible assets
|
(43,124)
|
|
-
|
|
-
|
|
|
Collections on
loans to related parties
|
-
|
|
-
|
|
2,192,762
|
Net cash (used in)
provided by investing activities
|
(94,905)
|
|
(64,715)
|
|
2,126,259
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Payments of
deferred financing costs
|
(716,318)
|
|
-
|
|
(278,820)
|
|
|
Gross proceeds
from issuance of convertible notes
|
7,500,000
|
|
-
|
|
-
|
|
|
Net proceeds
from Initial Public Offering - stock issuance
|
-
|
|
7,728,000
|
|
-
|
|
|
Direct costs
disbursed from Initial Public Offering proceeds
|
-
|
|
(1,147,509)
|
|
-
|
|
|
Borrowings from
bank loans
|
1,454,186
|
|
1,530,080
|
|
5,195,539
|
|
|
Repayments of
bank loans
|
(2,094,028)
|
|
(1,683,088)
|
|
(6,809,972)
|
|
|
Proceeds from
loans from related parties
|
-
|
|
-
|
|
239,125
|
|
|
Repayments of
loans from related parties
|
(87,800)
|
|
(300,163)
|
|
-
|
Net cash provided
by (used in) financing activities
|
6,056,040
|
|
6,127,320
|
|
(1,654,128)
|
|
|
|
|
|
|
Effect of exchange
rate changes on cash, cash equivalents and restricted
cash
|
40,802
|
|
(402,969)
|
|
66,248
|
|
|
|
|
|
|
Net (decrease)
increase in cash, cash equivalents and restricted
cash
|
(4,771,350)
|
|
2,934,626
|
|
2,543,298
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, beginning of year
|
5,525,165
|
|
2,590,539
|
|
47,241
|
|
|
|
|
|
|
Cash, cash
equivalents and restricted cash, end of year
|
$
753,815
|
|
$
5,525,165
|
|
$
2,590,539
|
|
|
|
|
|
|
Supplemental
disclosure information:
|
|
|
|
|
|
|
Income taxes
paid
|
$
13,777
|
|
$
11,763
|
|
$
10,207
|
|
Interest
paid
|
$
118,237
|
|
$
164,587
|
|
$
203,198
|
|
|
|
|
|
|
|
Non-cash financing
activities
|
|
|
|
|
|
|
Conversion of notes
to 657,857 shares of common stock
|
$
1,950,091
|
|
$
-
|
|
$
-
|
|
Accrued interest for
convertible notes
|
$
1,087,774
|
|
$
-
|
|
$
-
|
|
Repayment of
convertible notes by a related party on behalf of the
Company
|
$
2,617,882
|
|
$
-
|
|
$
-
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/farmmi-inc-reports-financial-results-for-the-fiscal-year-2019-300980198.html
SOURCE Farmmi, Inc.