|
|
|
(State or other jurisdiction of
incorporation or organization)
|
(I.R.S. Employer
Identification No.)
|
|
|
|
(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
|
☐ |
|
Smaller reporting company
|
|
Emerging growth company
|
Page
|
|||
3
|
|||
Item 1.
|
3
|
||
3
|
|||
4
|
|||
5
|
|||
6
|
|||
7
|
|||
Item 2.
|
19 | ||
Item 4.
|
26 | ||
28 | |||
Item 1.
|
28 | ||
Item 1A.
|
28 | ||
Item 2.
|
28 | ||
Item 5.
|
Other Information | 28 | |
Item 6.
|
28 | ||
29 |
ITEM 1. |
FINANCIAL STATEMENTS
|
December 31,
2022 |
September 30,
2022
|
|||||||
ASSETS
|
||||||||
Current Assets:
|
||||||||
Cash
|
$
|
|
$
|
|
||||
Accounts receivable, net of allowance for doubtful accounts
|
|
|
||||||
Inventory, net
|
|
|
||||||
Prepaid expenses and other current assets
|
|
|
||||||
Total current assets
|
|
|
||||||
Property and Equipment, net
|
|
|
||||||
Other Assets:
|
||||||||
Intangible assets, net
|
|
|
||||||
Goodwill
|
|
|
||||||
Investment in marketable securities at fair value | ||||||||
Operating lease right of use asset
|
|
|
||||||
Security deposits and other long-term assets
|
|
|
||||||
Total other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current Liabilities:
|
||||||||
Lines of credit
|
$
|
|
$
|
|
||||
Accounts payable - trade
|
|
|
||||||
Accrued expenses and other current liabilities
|
|
|
||||||
Dividends payable
|
|
|
||||||
Current portion of earnout
|
|
|
||||||
Current portion of long-term debt
|
|
|
||||||
Current portion of deferred acquisition payments
|
|
|
||||||
Current portion of subordinated promissory note-related party
|
|
|
||||||
Current portion of operating lease liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Other Liabilities:
|
||||||||
Long-term debt
|
|
|
||||||
Long-term portion of earnout
|
|
|
||||||
Subordinated promissory notes-related party
|
|
|
||||||
Mandatorily redeemable non-controlling interest
|
|
|
||||||
Deferred income taxes
|
|
|
||||||
Long-term operating lease liabilities
|
|
|
||||||
Other liabilities
|
|
|
||||||
Total other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders’ Equity:
|
||||||||
Preferred Stock, $
|
||||||||
Series C
|
|
|
||||||
Common stock, $
|
|
|
||||||
Paid-in capital
|
|
|
||||||
Common treasury stock, at cost,
|
(
|
)
|
(
|
)
|
||||
Accumulated earnings
|
|
|
||||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Three Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Revenue
|
$
|
|
$
|
|
||||
Forwarding expenses and cost of revenue
|
|
|
||||||
Gross profit
|
|
|
||||||
Cost and Expenses:
|
||||||||
Selling, general and administrative
|
|
|
||||||
Amortization of intangible assets
|
|
|
||||||
Total Costs and Expenses
|
|
|
||||||
Income from Operations
|
|
|
||||||
Other Items:
|
||||||||
Interest expense
|
(
|
)
|
(
|
)
|
||||
Unrealized loss on marketable securities
|
( |
) | ||||||
Income Before Income Taxes
|
|
|
||||||
Income tax expense
|
(
|
)
|
(
|
)
|
||||
Net Income
|
|
|
||||||
Preferred stock dividends
|
(
|
)
|
(
|
)
|
||||
Net Income Available to Common Stockholders
|
$
|
|
$
|
|
||||
Net Income per share
|
||||||||
Basic
|
$
|
|
$
|
|
||||
Diluted
|
$
|
|
$
|
|
||||
Net income per share attributable to common stockholders:
|
||||||||
Basic
|
$
|
|
$
|
|
||||
Diluted
|
$
|
|
$
|
|
||||
Weighted average number of shares outstanding:
|
||||||||
Basic
|
|
|
||||||
Diluted
|
|
|
PREFERRED STOCK
|
COMMON STOCK
|
PAID-IN CAPITAL
|
COMMON TREASURY
STOCK
|
ACCUMULATED
EARNINGS
|
TOTAL EQUITY
|
|||||||||||||||||||||||||||||||
SHARES
|
$ |
SHARES
|
$ |
$ |
SHARES
|
$ |
$ |
$ |
||||||||||||||||||||||||||||
Balance - September 30, 2022
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||||||||
Net Income
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
|
—
|
|
(
|
)
|
—
|
|
|
(
|
)
|
|||||||||||||||||||||||||
Stock-based compensation
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Balance - December 31, 2022
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
PREFERRED STOCK
|
COMMON STOCK
|
PAID-IN CAPITAL
|
COMMON TREASURY
STOCK
|
ACCUMULATED
EARNINGS
(DEFICIT)
|
TOTAL EQUITY
|
|||||||||||||||||||||||||||||||
SHARES
|
$ |
SHARES
|
$ |
$ |
SHARES
|
$ |
$ |
$ |
||||||||||||||||||||||||||||
Balance - September 30, 2021
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||||||||
Net Income
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
|
—
|
|
(
|
)
|
—
|
|
|
(
|
)
|
|||||||||||||||||||||||||
Stock-based compensation
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Stock option exercise |
||||||||||||||||||||||||||||||||||||
Balance - December 31, 2021
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
Three Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Cash Flows From Operating Activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
(Recovery of) Provision for uncollectible accounts
|
(
|
)
|
|
|||||
Depreciation
|
|
|
||||||
Deferred income provision
|
(
|
)
|
|
|||||
Amortization of intangible assets
|
|
|
||||||
Amortization of acquired inventory valuation
|
|
|
||||||
Amortization of loan costs
|
|
|
||||||
Stock-based compensation
|
|
|
||||||
Unrealized loss on marketable securities |
||||||||
Change in fair value of mandatorily redeemable noncontrolling interest
|
|
|
||||||
Changes in operating assets and liabilities, net of effects of acquisitions:
|
||||||||
Accounts receivable
|
|
(
|
)
|
|||||
Inventory
|
|
(
|
)
|
|||||
Prepaid expenses and other current assets
|
|
|
||||||
Security deposits and other long term assets
|
|
|
||||||
Accounts payable and accrued expenses
|
(
|
)
|
|
|||||
Other liabilities
|
|
(
|
)
|
|||||
Net cash provided by operating activities
|
|
|
||||||
Cash Flows From Investing Activities:
|
||||||||
Acquisition of property and equipment, net of disposals
|
(
|
)
|
(
|
)
|
||||
Acquisition
|
(
|
)
|
|
|||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash Flows From Financing Activities:
|
||||||||
Rrepayments of term loan
|
(
|
)
|
(
|
)
|
||||
Proceeds from stock option exercise
|
|
|
||||||
Lines of credit payments, net
|
(
|
)
|
(
|
)
|
||||
Issuance (repayment) of subordinated promissory notes
|
|
(
|
)
|
|||||
Net cash used in financing activities
|
(
|
)
|
(
|
)
|
||||
Net decrease in cash
|
(
|
)
|
(
|
)
|
||||
Cash at beginning of the period
|
|
|
||||||
Cash at end of period
|
$
|
|
$
|
|
||||
Supplemental Disclosure of Cash Flow Information:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
|
$
|
|
||||
Income taxes
|
$
|
|
$
|
|
||||
Non-cash investing activities:
|
||||||||
Contingent earn-out acquisition
|
$ | $ | ||||||
Due to former IBS owner
|
$ |
$ | ||||||
Non-cash financing activities:
|
||||||||
Dividends declared to preferred stockholders
|
$
|
|
$
|
|
1.
|
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
|
Three Months Ended
December 31,
|
||||||||
2022 |
2021
|
|||||||
Service Type | ||||||||
Trucking |
$ | $ | ||||||
Ocean
|
|
|
||||||
Air
|
|
|
||||||
Customs brokerage
|
|
|
||||||
Other |
||||||||
Total
|
$
|
|
$
|
|
2. |
ACQUISITIONS
|
3. |
INVENTORY
|
December 31,
2022
|
September 30,
2022
|
|||||||
Finished goods
|
$
|
|
$
|
|
||||
Work-in-process
|
|
|
||||||
Raw materials
|
|
|
||||||
Gross inventory
|
|
|
||||||
Less – reserve for inventory valuation
|
(
|
)
|
(
|
)
|
||||
Inventory net
|
$
|
|
$
|
|
4. |
INTANGIBLE ASSETS
|
December 31,
2022
|
September 30,
2022
|
Life
|
|||||||
Customer relationships
|
$
|
|
$
|
|
|
||||
Trademarks/names
|
|
|
|
||||||
Trademarks/names
|
|
|
Indefinite
|
||||||
Other
|
|
|
|
||||||
|
|
||||||||
Less: Accumulated Amortization
|
(
|
)
|
(
|
)
|
|||||
Intangible assets, net
|
$
|
|
$
|
|
December 31,
2022
|
September 30,
2022
|
|||||||
Logistics
|
$
|
|
$
|
|
||||
Life Sciences | ||||||||
Manufacturing
|
|
|
||||||
|
|
|||||||
Less: Accumulated Amortization
|
(
|
)
|
(
|
)
|
||||
Intangible assets, net
|
$
|
|
$
|
|
5. |
GOODWILL
|
December 31,
2022
|
September 30,
2022
|
|||||||
Logistics
|
$
|
|
$
|
|
||||
Life Sciences | ||||||||
Manufacturing
|
|
|
||||||
Total |
$
|
|
$
|
|
6. |
NOTES PAYABLE – BANKS
|
(A) |
Santander Bank Facility
|
(B) |
First Merchants Bank Credit Facility
|
(in thousands) |
December 31,
2022
|
September 30,
2022
|
||||||
Total Debt*
|
$
|
|
$
|
|
||||
Less Current Portion
|
(
|
)
|
(
|
)
|
||||
Long-term Portion |
$
|
|
$
|
|
* |
|
(C) |
First Northern Bank of Dixon
|
(in thousands) |
December 31,
2022
|
September 30,
2022
|
||||||
Total Debt*
|
$
|
|
$
|
|
||||
Less Current Portion
|
(
|
)
|
(
|
)
|
||||
Long-term Portion |
$
|
|
$
|
|
* |
|
7. |
SUBORDINATED PROMISSORY NOTES - RELATED PARTY
|
(in thousands) |
December 31,
2022
|
September 30,
2022
|
||||||
Total subordinated promissory notes
|
$
|
|
$
|
|
||||
Less current portion of subordinated promissory notes
|
(
|
)
|
(
|
)
|
||||
Long term portion of subordinated promissory notes
|
$
|
|
$
|
|
8. |
STOCKHOLDERS’ EQUITY
|
|
(in thousands, except share and per share data)
|
(A) |
Common Stock
|
(B) |
Preferred Stock
|
9. |
STOCK-BASED COMPENSATION
|
|
(in thousands, except share and per share data)
|
(A) |
Stock Options
|
• |
Risk-free interest rate - We determine the risk-free interest rate by using a weighted
average assumption equivalent to the expected term based on the U.S. Treasury constant maturity rate.
|
• |
Expected term - We estimate the expected term of our options on the average of the
vesting date and term of the option.
|
•
|
Expected volatility - We estimate expected volatility using daily
historical trading data of a peer group.
|
• |
Dividend yield - We have never paid dividends on our common stock and currently have no
plans to do so; therefore, no dividend yield is applied.
|
Three
Months Ended
December 31, 2022 |
||||
Risk-free interest rate
|
|
%
|
||
Expected option term in years
|
|
|||
Expected volatility
|
|
%
|
||
Dividend yield |
% | |||
Weighted average grant date fair value
|
$
|
|
Number
of Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term (in years)
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||||||||||||
Outstanding balance at September 30, 2022
|
|
$
|
|
|
$
|
|
||||||||||
Granted
|
|
$
|
|
|
$
|
|
||||||||||
Outstanding balance at December 31, 2022
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at December 31, 2022
|
|
$
|
|
|
$
|
|
Three
Months Ended
December 31, 2022 |
||||
Risk-free interest rate
|
|
%
|
||
Expected option term in years
|
|
|||
Expected volatility
|
|
%
|
||
Dividend yield |
% | |||
Weighted average grant date fair value
|
$
|
|
Number
of Options
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term (in years)
|
Aggregate
Intrinsic
Value
(in thousands)
|
|||||||||||||
Outstanding balance at September 30, 2022
|
|
$
|
|
|
$
|
|
||||||||||
Granted
|
|
$
|
|
|
$
|
|
||||||||||
Outstanding balance at December 31, 2022
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at December 31, 2022
|
|
$
|
|
|
$
|
|
10. |
INCOME PER COMMON SHARE
|
Three Months Ended
December 31,
|
||||||||
(in thousands, except per share data)
|
2022
|
2021
|
||||||
Income:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Preferred stock dividends
|
(
|
)
|
(
|
)
|
||||
Net income available to common stockholders
|
$
|
|
$
|
|
||||
Common Shares:
|
||||||||
Basic - weighted average common shares
|
|
|
||||||
Effect of dilutive securities:
|
||||||||
Stock options
|
|
|
||||||
Convertible preferred stock
|
|
|
||||||
Diluted - weighted average common stock
|
|
|
||||||
Income per Common Share:
|
||||||||
Basic -
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Preferred stock dividends
|
(
|
)
|
(
|
)
|
||||
Net income attributable to common stockholders
|
$
|
|
$
|
|
||||
Diluted -
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Preferred stock dividends
|
(
|
)
|
(
|
)
|
||||
Net income available to common stockholders
|
$
|
|
$
|
|
Three Months Ended
December 31,
|
||||||||
2022
|
2021
|
|||||||
Employee stock options (Note 9)
|
|
|
||||||
|
|
11. |
INCOME TAXES
|
Three Months Ended
December 31,
|
||||||||