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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Janel Corporation (PK) | USOTC:JANL | OTCMarkets | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-2.00 | -4.76% | 40.00 | 31.03 | 42.00 | 40.00 | 39.96 | 39.96 | 205 | 21:00:10 |
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
|
|
|
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(Address of principal executive offices)
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(Zip Code)
|
Title of each class
|
Trading symbols(s)
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Name of each exchange
on which registered
|
||
None
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None
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None
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Large accelerated filer ☐
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Accelerated filer
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☐ |
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Smaller reporting company
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Emerging growth company
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Page
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3
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Item 1.
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3
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3
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4
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|||
5
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6
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7
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Item 2.
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17
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Item 4.
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24
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25
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|||
Item 1.
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25
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||
Item 1A.
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25
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Item 2.
|
25
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Item 5. |
Other Information |
25 | |
Item 6.
|
25
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26
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ITEM 1. |
FINANCIAL STATEMENTS
|
December 31,
2023 |
September 30,
2023
|
|||||||
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 Rubicon 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 operating lease liabilities
|
|
|
||||||
Total current liabilities
|
|
|
||||||
Other Liabilities:
|
||||||||
Long-term debt
|
|
|
||||||
Long-term portion of earnout
|
|
|
||||||
|
|
|
||||||
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,
|
||||||||
2023
|
2022
|
|||||||
Revenues
|
$
|
|
$
|
|
||||
Forwarding expenses and cost of revenues
|
|
|
||||||
Gross profit
|
|
|
||||||
Cost and Expenses:
|
||||||||
Selling, general and administrative
|
|
|
||||||
Amortization of intangible assets
|
|
|
||||||
Total Costs and Expenses
|
|
|
||||||
Income from Operations
|
|
|
||||||
Interest expense
|
(
|
)
|
(
|
)
|
||||
Other income (expense)
|
( |
) | ( |
) | ||||
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, 2023
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||||||||
Net Income
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
|
—
|
|
(
|
)
|
—
|
|
|
(
|
)
|
|||||||||||||||||||||||||
Stock based compensation
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Balance - December 31, 2023
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
PREFERRED STOCK
|
COMMON STOCK
|
PAID-IN
CAPITAL
|
COMMON TREASURY
STOCK
|
ACCUMULATED
EARNINGS
(DEFICIT)
|
TOTAL
EQUITY
|
|||||||||||||||||||||||||||||||
SHARES
|
$
|
SHARES
|
$ |
$
|
SHARES
|
$ | $
|
$
|
||||||||||||||||||||||||||||
Balance - September 30, 2022
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
||||||||||||||||||||
Net Income
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Dividends to preferred stockholders
|
—
|
|
—
|
|
(
|
)
|
—
|
|
|
(
|
)
|
|||||||||||||||||||||||||
Stock based compensation
|
—
|
|
—
|
|
|
—
|
|
|
|
|||||||||||||||||||||||||||
Balance - December 31, 2022
|
|
$
|
|
|
$
|
|
$
|
|
|
$
|
(
|
)
|
$
|
|
$
|
|
|
Three Months Ended
December 31,
|
|||||||
2023
|
2022
|
|||||||
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 tax 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
|
|
|
||||||
Fair value adjustment of contingent earnout liabilities
|
||||||||
Gain on extinguishment
|
( |
) | ||||||
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
|
(
|
)
|
(
|
)
|
||||
Acquisitions
|
|
(
|
)
|
|||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments of term loan
|
(
|
)
|
(
|
)
|
||||
Lines of credit payments, net
|
(
|
)
|
(
|
)
|
||||
Repayment of subordinate promissory notes, net
|
(
|
)
|
|
|||||
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 operating activities:
|
||||||||
Contingent earnout acquisition
|
$ | $ | ||||||
Due to former owner
|
$ | $ | ||||||
Non-cash financing activities:
|
||||||||
Dividends declared to preferred stockholders
|
$
|
|
$
|
|
1.
|
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES
|
Three Months Ended
December 31,
|
||||||||
2023 |
2022
|
|||||||
Service Type | ||||||||
Trucking |
$ | $ | ||||||
Air
|
|
|
||||||
Ocean
|
|
|
||||||
Customs brokerage and other
|
|
|
||||||
Total
|
$
|
|
$
|
|
2. |
ACQUISITIONS
|
3. |
INVENTORY
|
December 31,
2023
|
September 30,
2023
|
|||||||
Finished goods
|
$
|
|
$
|
|
||||
Work-in-process
|
|
|
||||||
Raw materials
|
|
|
||||||
Gross inventory
|
|
|
||||||
Less – reserve for inventory valuation
|
(
|
)
|
(
|
)
|
||||
Inventory net
|
$
|
|
$
|
|
4. |
INTANGIBLE ASSETS
|
December 31,
2023
|
September 30,
2023
|
Life
|
|||||||
Customer relationships
|
$
|
|
$
|
|
|
||||
Trademarks/names
|
|
|
|
||||||
Trademarks/names
|
|
|
Indefinite
|
||||||
Other
|
|
|
|
||||||
Total intangible assets |
|
|
|||||||
Less: accumulated amortization
|
(
|
)
|
(
|
)
|
|||||
Total intangible assets, net
|
$
|
|
$
|
|
December 31,
2023
|
September 30,
2023
|
|||||||
Logistics
|
$
|
|
$
|
|
||||
Life Sciences | ||||||||
Manufacturing
|
|
|
||||||
Total intangible assets |
|
|
||||||
Less: accumulated amortization
|
(
|
)
|
(
|
)
|
||||
Total intangible assets, net
|
$
|
|
$
|
|
5. |
GOODWILL
|
December 31,
2023
|
September 30,
2023
|
|||||||
Logistics
|
$
|
|
$
|
|
||||
Life Sciences | ||||||||
Manufacturing
|
|
|
||||||
Total |
$
|
|
$
|
|
6. |
NOTES PAYABLE – BANKS
|
(A) |
Santander Bank Facility
|
(B) |
First Merchants Bank Credit Facility
|
December 31,
2023
|
September 30,
2023
|
|||||||
Total debt
|
$
|
|
$
|
|
||||
Less current portion
|
(
|
)
|
(
|
)
|
||||
Long-term portion |
$
|
|
$
|
|
7. |
SUBORDINATED PROMISSORY NOTES - RELATED PARTY
|
(in thousands) |
December 31,
2023
|
September 30,
2023
|
||||||
Total subordinated promissory notes
|
$
|
|
$
|
|
||||
Less current portion of subordinated promissory notes
|
(
|
)
|
(
|
)
|
||||
Long-term portion of subordinated promissory notes
|
$
|
|
$
|
|
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, 2023
|
|
$
|
|
|
$
|
|
||||||||||
Granted
|
|
$
|
|
|
$
|
|
||||||||||
Expired | ( |
) | $ |
— | $ | |||||||||||
Outstanding balance at December 31, 2023
|
|
$
|
|
|
$
|
|
||||||||||
Exercisable at December 31, 2023
|
|
$
|
|
|
$
|
|
10. |
INCOME PER COMMON SHARE
|
Three Months Ended
December 31,
|
||||||||
(in thousands, except per share data)
|
2023
|
2022
|
||||||
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
|
|
|
||||||
Diluted - weighted average common stock
|
|
|
||||||
Income per Common Share:
|
||||||||
Basic -
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Preferred stock dividends
|
(
|
)
|
(
|
)
|
||||
Net income available to common stockholders
|
$
|
|
|
$
|
|
|||
Diluted -
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Preferred stock dividends
|
(
|
)
|
(
|
)
|
||||
Net income available to common stockholders
|
$
|
|
|
$
|
|
11. |
INCOME TAXES
|
Three Months Ended
December 31,
|
||||||||
2023 |
2022 | |||||||
Federal taxes at statutory rates
|
$
|
|
$
|
|
||||
Permanent differences
|
|
|
||||||
State and local taxes, net of Federal benefit
|
|
|
||||||
Total
|
$
|
|
$
|
|
12. |
BUSINESS SEGMENT INFORMATION
|
For the three months ended December 31, 2023
(in thousands)
|
Consolidated
|
Logistics
|
Life Sciences
|
Manufacturing
|
Corporate
|
|||||||||||||||
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Forwarding expenses and cost of revenues
|
|
|
|
|
|
|||||||||||||||
Gross profit
|
|
|
|
|
|
|||||||||||||||
Selling, general and administrative
|
|
|
|
|
|
|||||||||||||||
Amortization of intangible assets
|
|
|
|
|
|
|||||||||||||||
Income (loss) from operations
|
|
|
|
|
(
|
)
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Identifiable assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures, net of disposals
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
For the three months ended December 31, 2022
(in thousands)
|
Consolidated
|
Logistics
|
Life Sciences
|
Manufacturing
|
Corporate
|
|||||||||||||||
Revenues
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Forwarding expenses and cost of revenues
|
|
|
|
|
|
|||||||||||||||
Gross profit
|
|
|
|
|
|
|||||||||||||||
Selling, general and administrative
|
|
|
|
|
|
|||||||||||||||
Amortization of intangible assets
|
|
|
|
|
|
|||||||||||||||
Income (loss) from operations
|
|
|
|
|
(
|
)
|
||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Identifiable assets
|
|
|
|
|
|
|||||||||||||||
Capital expenditures, net of disposals
|
$ |
|
$ |
|
$ |
|
$ |
|
$ |
|
13.
|
FAIR VALUE MEASUREMENTS
|
Level 1 Assets
|
December 31,
2023 |
September 30,
2023
|
||||||
Investment in Rubicon at fair value
|
$
|
|
$
|
|
December 31,
2023
|
September 30,
2023
|
|||||||
Balance beginning of period
|
$
|
|
$
|
|
||||
Fair value adjustment to Rubicon investment
|
(
|
)
|
(
|
)
|
||||
Balance end of period
|
$
|
|
$
|
|
|
December 31,
2023
|
September 30,
2023
|
||||||
Level 1 Contingent earnout liabilities
|
$ | $ | ||||||
Level 3 Contingent earnout liabilities
|
||||||||
Total |
$
|
|
$
|
|
December 31,
2023
|
September 30,
2023
|
|||||||
Balance beginning of period
|
$
|
|
$
|
|
||||
Fair value of contingent consideration recorded in connection with business combinations
|
|
|
||||||
Earnout payment |
( |
) | ||||||
Fair value adjustment of contingent earnout liabilities |
( |
) | ||||||
Transfer to Level 1 |
( |
) | ||||||
Balance end of period
|
$
|
|
$
|
|
14. |
LEASES
|
Three Months Ended
December 31,
|
||||||||
2023 | 2022 | |||||||
Operating lease cost
|
$
|
|
$
|
|
||||
Short-term lease cost
|
|
|
||||||
Total lease cost
|
$
|
|
$
|
|
2024
|
$
|
|
||
2025
|
|
|||
2026
|
|
|||
2027 |
|
|||
2028
|
|
|||
Thereafter |
||||
Total undiscounted loan payments
|
|
|||
Less: imputed interest
|
(
|
)
|
||
Total lease obligation
|
$
|
|
15. | SUBSEQUENT EVENTS |
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
|
Three Months Ended
December 31,
|
|||||||
(in thousands)
|
2023
|
2022
|
||||||
Revenues
|
$
|
41,035
|
$
|
57,044
|
||||
Forwarding expenses and cost of revenues
|
26,890
|
42,127
|
||||||
Gross profit
|
14,145
|
14,917
|
||||||
Operating expenses
|
13,143
|
13,537
|
||||||
Income from operations
|
1,002
|
1,380
|
||||||
Net income
|
276
|
360
|
||||||
Adjusted operating income
|
$
|
1,694
|
$
|
2,057
|
|
Three Months Ended
December 31,
|
|||||||
(in thousands)
|
2023
|
2022
|
||||||
Income from operations
|
$
|
1,002
|
$
|
1,380
|
||||
Amortization of intangible assets
|
538
|
526
|
||||||
Stock-based compensation
|
71
|
61
|
||||||
Cost recognized on sale of acquired inventory
|
83
|
90
|
||||||
Adjusted operating income
|
$
|
1,694
|
$
|
2,057
|
Three Months Ended
December 31,
|
||||||||
2023
|
2022
|
|||||||
(in thousands)
|
||||||||
Revenues
|
$
|
35,215
|
$
|
51,800
|
||||
Forwarding expenses
|
25,214
|
40,267
|
||||||
Gross profit
|
10,001
|
11,533
|
||||||
Gross profit margin
|
28.4
|
%
|
22.3
|
%
|
||||
Selling, general and administrative expenses
|
8,865
|
9,528
|
||||||
Income from operations
|
$
|
1,136
|
$
|
2,005
|
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
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
December 31,
|
||||||||
(in thousands)
|
2023
|
2022
|
||||||
Total income from operations by segment
|
$
|
2,746
|
$
|
3,105
|
||||
Corporate expenses
|
(1,135
|
)
|
(1,138
|
)
|
||||
Amortization of intangible assets
|
(538
|
)
|
(526
|
)
|
||||
Stock-based compensation
|
(71
|
)
|
(61
|
)
|
||||
Total corporate expenses
|
(1,744
|
)
|
(1,725
|
)
|
||||
Interest expense
|
(524
|
)
|
(474
|
)
|
||||
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
|
(72
|
)
|
(72
|
)
|
||||
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 December 31, 2023 for the three months ended December 31,
2023 and 2022 in Inline XBRL (eXtensible Business Reporting Language) pursuant to Rule 405 of Regulation S-T: (i) Condensed Consolidated Balance Sheets as of December 31, 2023 and September 30, 2023, (ii) Condensed Consolidated Statements
of Operations for the three months ended December 31, 2023 and 2022, (iii) Condensed Consolidated Statement of Changes in Stockholders’ Equity for the three months December 31, 2023 and 2022, (iv) Condensed Consolidated Statements of Cash
Flows for the three months ended December 31, 2023 and 2022, and (v) Notes to Condensed Consolidated Financial Statements.
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in the Interactive Data Files submitted as Exhibit 101) (filed herewith)
|
Dated: February 2, 2024
|
JANEL CORPORATION
|
Registrant
|
|
/s/ Darren C. Seirer
|
|
Darren C. Seirer
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
|
Dated: February 2, 2024
|
JANEL CORPORATION
|
Registrant
|
|
/s/ Vincent A. Verde
|
|
Vincent A. Verde
|
|
Principal Financial Officer, Treasurer and Secretary
|
1. |
Capitalized Terms. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Purchase Agreement.
|
2. |
Amendment to Purchase Agreement. Section 3.2 of the Agreement is hereby amended by adding the following new Section 3.2.6:
|
3. |
Amendments to Notes.
|
(a) |
The definition of “Maturity Date” in each of the Notes is hereby amended by deleting the words “the five-year anniversary of the date hereof“ in the paragraph titled “Payments of Principal and Interest”
and the words “the seven-year anniversary of the date hereof” are inserted in replacement thereof.
|
(b) |
Schedule A to each of the Notes is hereby replaced by the applicable Schedule A attached hereto on Annex I.
|
4. |
Conditions to Effectiveness. This Amendment shall not be effective until each of the following conditions precedent have been fulfilled to the satisfaction
of the Lender:
|
(a) |
This Amendment shall have been duly executed and delivered by the respective parties hereto and, shall be in full force and effect.
|
(b) |
Janel shall have received an Acknowledgement and Consent from Santander Bank consenting the modifications set forth in this Amendment in form and substance acceptable to Janel.
|
5. |
Miscellaneous.
|
(a) |
This Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall
constitute one instrument.
|
(a) |
The provisions of Section 22 (Governing Law) and 23 (Arbitration) are specifically incorporated herein by reference.
|
(b) |
This Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the
provisions hereof.
|
(c) |
Any determination that any provision of this Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or
enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Amendment.
|
JANEL:
|
|||
JANEL GROUP, INC., a New York corporation, as Borrower
|
|||
By:
|
|||
Name:
|
|||
Its:
|
President
|
ELFS:
|
|||
EXPEDITED LOGISTICS AND FREIGHT SERVICES LLC, a Texas limited liability company, as Borrower
|
|||
By:
|
|||
Name:
|
|||
Its:
|
Vice President
|
SELLERS:
|
||
David W. Flake
|
||
|
||
Randall L Cockrell
|
||
|
||
Stephen R. Lalumandier
|
||
|
||
Frederick J. Lalumandier
|
PARENT GUARANTOR:
|
|||
JANEL CORPORATION
|
|||
By:
|
|||
Name:
|
|||
Its:
|
Vice President
|
1. |
Subordinated Promissory Note dated September 21, 2021 in favor of David W. Flake:
|
2. |
Subordinated Promissory Note dated September 21, 2021 in favor of Randall L Cockrell:
|
3. |
Subordinated Promissory Note dated September 21, 2021 in favor of Steven R. Lalumandier:
|
4. |
Subordinated Promissory Note dated September 21, 2021 in favor of Frederick J. Lalumandier:
|
1. |
Capitalized Terms. All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Agreement.
|
2. |
Amendments to Agreement.
|
a. |
Schedule B of the Agreement (Definitions) is hereby amended by inserting the following new definitions in their
correct alphabetical order:
|
A) |
““Sixth Amendment” means that certain Sixth Amendment to Amended and Restated Loan and Security Agreement dated as of the Sixth Amendment Effective
Date by and among the Lender, the Borrower and the Loan Party Obligors.”
|
B) |
““Sixth Amendment Effective Date” means December __ 2023.”
|
b. |
Schedule E of the Agreement is hereby amended by deleting the top row of said Schedule E and replacing it with the following:
|
Twice per month, reported (i) as of the 15th day of each month, and (ii) as of the last day of each month, provided that as to
(i) and (ii), such information shall be delivered no later than 15 calendar days after each such respective date; provided that if a BBC Reduction Trigger Event has occurred and is continuing, then
once per month, on the 15th of each month, as of the immediately preceding month end; provided further that, in any event, if any day on which the information required to be delivered hereunder is
not a Business Day, such information shall be delivered on the next Business Day.
|
(a) a completed and signed Borrowing Base certificate in the form provided to Borrower by Lender prior to the date hereof,
(b) a roll-forward with supporting details with respect to Borrower’s Accounts (delivered electronically in an acceptable format).
(c) notice of all claims, offsets, or disputes asserted by Account Debtors with respect to Borrower’s Accounts,
(d) a detailed aging, by total, of Borrower’s Accounts, together with a reconciliation and supporting documentation for any reconciling items noted,
|
3. |
Ratification of Loan Documents/Waiver. Except as provided for herein, all terms and conditions of the Agreement or the other Loan Documents remain in full
force and effect. Each Loan Party Obligor each hereby ratifies, confirms, and reaffirms all representations, warranties, and covenants contained therein (including, without limitation, with respect to the Disclosure Schedule, each of
which the Loan Party Obligors represent and warrant is true and correct as of the date hereof) and acknowledges and agrees that the Obligations, are and continue to be secured by the Collateral. Each Loan Party Obligor acknowledges and
agrees that each such Loan Party Obligor does not have any offsets, defenses, or counterclaims against the Lender arising out of the Agreement or the other Loan Documents, and to the extent that any such offsets, defenses, or
counterclaims arising out of the Agreement or the other Loan Documents may exist, each such Loan Party Obligor hereby WAIVES and RELEASES the Lender therefrom.
|
4. |
Conditions to Effectiveness. This Sixth Amendment shall not be effective until this Sixth Amendment shall have been duly executed and delivered by the
respective parties hereto.
|
5. |
Miscellaneous.
|
a. |
This Sixth Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an original, and all of which together shall
constitute one instrument.
|
b. |
The provisions of Section 10.15 (Governing Law) and 10.16 (Consent to Jurisdiction; Waiver of Jury Trial) are specifically
incorporated herein by reference.
|
c. |
This Sixth Amendment expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall limit, modify, or otherwise affect the
provisions hereof.
|
d. |
Any determination that any provision of this Sixth Amendment or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not affect the validity, legality, or
enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Sixth Amendment.
|
e. |
The Borrower shall pay on demand all costs and expenses of the Lender, including, without limitation, reasonable attorneys’ fees in connection with the preparation, negotiation, execution and delivery of this
Sixth Amendment.
|
f. |
The Loan Party Obligors each warrants and represents that such Person has consulted with independent legal counsel of such Person’s selection in connection with this Sixth Amendment and is not relying on any
representations or warranties of the Lender or its counsel in entering into this Sixth Amendment.
|
LENDER
|
|||
SANTANDER BANK, N.A.
|
|||
By:
|
|||
Name:
|
Matthew Cunningham
|
||
Its:
|
Vice President
|
BORROWERS
|
|||
JANEL GROUP, INC., a New York corporation, as Borrower
|
|||
By:
|
|||
Name:
|
William J. Lally
|
||
Its:
|
President
|
EXPEDITED LOGISTICS AND FREIGHT SERVICES LLC, a Texas limited liability company, as Borrower
|
|||
By:
|
|||
Name:
|
William J. Lally
|
||
Its:
|
Vice President
|
ELFS BROKERAGE LLC, a Texas limited liability company, as Borrower
|
||||
By:
|
Janel Group, Inc., its Manager
|
|||
By:
|
||||
Name:
|
William J. Lally
|
|||
Its:
|
President
|
LOAN PARTY OBLIGORS
|
|||
JANEL CORPORATION, a Nevada corporation, as a Loan Party Obligor and Term Loan Borrower
|
|||
By:
|
|||
Name:
|
Darren C. Seirer
|
||
Its:
|
President
|
EXPEDITED LOGISTICS AND FREIGHT SERVICES LLC, an Oklahoma limited liability company, as
a Loan Party Obligor
|
||||
By:
|
Expedited Logistics and Freight Services LLC, a Texas limited liability company, its manager
|
|||
By:
|
||||
Name:
|
William J. Lally
|
|||
Its:
|
Vice President
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Janel Corporation (the “Registrant”);
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4. |
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter
(the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5. |
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s
auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent function):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
affect the Registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial
reporting.
|
Date: February 2, 2024
|
/s/ Darren C. Seirer
|
Darren C. Seirer
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of Janel Corporation (the “Registrant”);
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this report;
|
4. |
The Registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules
13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material
information relating to the Registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the Registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the Registrant’s internal control over financial reporting that occurred during the Registrant’s most recent fiscal quarter
(the Registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the Registrant’s internal control over financial reporting; and
|
5. |
The Registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant’s
auditors and the audit committee of the Registrant’s board of directors (or persons performing the equivalent function):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely
affect the Registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the Registrant’s internal control over financial
reporting.
|
Date: February 2, 2024
|
/s/ Vincent A. Verde
|
Vincent A. Verde
|
|
Principal Financial Officer, Treasurer and Secretary
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: February 2, 2024
|
/s/ Darren C. Seirer
|
Darren C. Seirer
|
|
Chairman, President and Chief Executive Officer
|
|
(Principal Executive Officer)
|
1. |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2. |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: February 2, 2024
|
/s/ Vincent A. Verde
|
Vincent A. Verde
|
|
Principal Financial Officer, Treasurer and Secretary
|
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
Stockholders' Equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 4,500,000 | 4,500,000 |
Common stock, shares issued (in shares) | 1,206,354 | 1,206,354 |
Common stock, shares outstanding (in shares) | 1,186,354 | 1,186,354 |
Common treasury stock, at cost (in shares) | 20,000 | 20,000 |
Series C [Member] | ||
Stockholders' Equity: | ||
Preferred stock, shares authorized (in shares) | 30,000 | 30,000 |
Preferred Stock, shares issued (in shares) | 11,368 | 11,368 |
Preferred stock, shares outstanding (in shares) | 11,368 | 11,368 |
Preferred stock, liquidation value | $ 7,784 | $ 7,713 |
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands |
Preferred Stock [Member] |
Common Stock [Member] |
Paid-in Capital [Member] |
Common Treasury Stock [Member] |
Accumulated Earnings [Member] |
Total |
---|---|---|---|---|---|---|
Balance at Sep. 30, 2022 | $ 0 | $ 1 | $ 17,184 | $ (240) | $ 1,382 | $ 18,327 |
Balance (in shares) at Sep. 30, 2022 | 11,368 | 1,206,354 | 20,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | $ 0 | $ 0 | 0 | $ 0 | 360 | 360 |
Dividends to preferred stockholders | 0 | 0 | 0 | 0 | (72) | |
Dividends to preferred stockholders | (72) | |||||
Stock based compensation | 0 | 0 | 51 | 0 | 0 | 51 |
Balance at Dec. 31, 2022 | $ 0 | $ 1 | 17,163 | $ (240) | 1,742 | 18,666 |
Balance (in shares) at Dec. 31, 2022 | 11,368 | 1,206,354 | 20,000 | |||
Balance at Sep. 30, 2023 | $ 0 | $ 1 | 17,107 | $ (240) | 2,105 | 18,973 |
Balance (in shares) at Sep. 30, 2023 | 11,368 | 1,206,354 | 20,000 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net Income | $ 0 | $ 0 | 0 | $ 0 | 276 | 276 |
Dividends to preferred stockholders | 0 | 0 | 0 | 0 | (72) | |
Dividends to preferred stockholders | (72) | |||||
Stock based compensation | 0 | 0 | 68 | 0 | 0 | 68 |
Balance at Dec. 31, 2023 | $ 0 | $ 1 | $ 17,103 | $ (240) | $ 2,381 | $ 19,245 |
Balance (in shares) at Dec. 31, 2023 | 11,368 | 1,206,354 | 20,000 |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES |
The accompanying interim unaudited condensed consolidated financial statements
have been prepared pursuant to the rules and regulations of Article 8 of Regulation S-X and the instructions to Form 10-Q of the Securities and Exchange Commission. As a result, certain information and footnote disclosures normally included in
audited financial statements prepared in accordance with generally accepted accounting principles have been condensed or omitted. Janel Corporation (the “Company” or “Janel”) believes that the disclosures made are adequate to make the
information presented not misleading. The condensed consolidated financial statements reflect all adjustments which are, in the opinion of management, necessary to a fair statement of the results for the interim periods presented. The results
of operations for the periods presented are not necessarily indicative of the results to be expected for a full fiscal year, or any other period. These condensed consolidated financial statements should be read in conjunction with the audited
consolidated financial statements and related notes included in the Company’s Form 10-K as filed with the Securities and Exchange Commission.
Business Description
Janel is a holding company with subsidiaries in three business segments: Logistics, Life Sciences and Manufacturing. The Company strives to create shareholder value primarily through three strategic priorities: supporting its
businesses’ efforts to make investments and to build long-term profits; allocating Janel’s capital at high risk-adjusted rates of return; and attracting and retaining exceptional talent.
Management at the holding company focuses on significant capital allocation decisions, corporate governance and
supporting Janel’s subsidiaries where appropriate. Janel expects to grow through its subsidiaries’ organic growth and by completing acquisitions. We plan to either acquire businesses within our existing segments or expand our portfolio into
new strategic segments. Our acquisition strategy focuses on reasonably-priced companies with strong and capable management teams, attractive existing business economics and stable and predictable earnings power.
Revenue and revenue recognition
Logistics
Revenues are recognized upon transfer of control of promised services to
customers. With respect to its Logistics segment, the Company has determined that in general each shipment transaction or service order constitutes a separate contract with the customer. When the Company provides multiple services to a
customer, different contracts may be present for different services.
The Company typically satisfies its performance obligations as services are
rendered at a point in time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final
delivery. The Company measures the performance of its obligations as services are completed at a point in time during the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its
performance obligations within a one- to two-month period.
The Company evaluates whether amounts billed to customers should be reported
as gross or net revenues. Generally, revenues are recorded on a gross basis when the Company is acting as principal and is primarily responsible for fulfilling the promise to provide the services, when it has discretion in setting the prices
for the services to the customers, and the Company has the ability to direct the use of the services provided by the third party. Revenues are recognized on a net basis when the Company is acting as agent and we do not have latitude in carrier
selection or to establish rates with the carrier.
In the Logistics segment, the Company disaggregates its revenue by its four
primary service categories: trucking, air, ocean and customs brokerage and
other. The Company has aggregated customs brokerage and other for the periods ended December 31, 2023 and 2022. A summary of the Company’s revenues disaggregated by major
service lines for the three months ended December 31, 2023 and 2022 was as follows (in thousands):
Life Sciences and Manufacturing
Revenues from the Company’s Life Sciences segment are derived from the sale of
high-quality monoclonal and polyclonal antibodies, diagnostic reagents and diagnostic kits and other immunoreagents for biomedical research and antibody manufacturing. Revenues from the Company’s Manufacturing segment, which is comprised of
Indco, a majority-owned subsidiary of the Company that manufactures and distributes mixing equipment and apparatus for specific applications within various industries, are derived from the engineering, manufacture and delivery of specialty
mixing equipment and accessories. Revenues for Life Sciences and Manufacturing are recognized when products are shipped, and risk of loss is transferred to the carrier(s) used.
|
ACQUISITIONS |
3 Months Ended | ||
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Dec. 31, 2023 | |||
ACQUISITIONS [Abstract] | |||
ACQUISITIONS |
Fiscal 2023 Acquisitions
Life Sciences
On November 1, 2022, the Company completed a business combination whereby it acquired all of the outstanding stock of ImmunoBioScience
Corporation (“IBS”), for an aggregate purchase price of $3,755, net of $153 cash received. At closing, $3,000 was paid in cash,
$250 was due to the former stockholder of IBS as a deferred acquisition payment upon integration, $300 was recorded as a preliminary earnout consideration (not to exceed $750) and $205 was recorded as a preliminary working
capital adjustment. The acquisition was funded with cash provided by normal operations, and the results of operations of IBS are included in Janel’s condensed consolidated results of operations since the date of the acquisition. In
connection with the combination, the Company recorded an aggregate of $1,468 in goodwill and $1,680 in other identifiable intangibles. Supplemental pro forma information has not been provided as the acquisition did not have a significant
impact on Janel’s condensed consolidated results of operations, individually or in aggregate. IBS is a developer and manufacturer of high-quality reagents used by research and diagnostic customers. IBS was founded in 2007 and is
headquartered in Mukilteo, Washington. The acquisition of IBS was completed to expand our product offerings in our Life Sciences segment.
On March 2, 2023, the Company completed a business combination whereby it acquired all of the outstanding stock of Stephen Hall PhD, Ltd.
(“SH”) for an aggregate purchase price of $600. At closing, $500 was paid in cash and $100 was due to the former
stockholder of SH as a deferred acquisition payment upon integration. The acquisition was funded with cash provided by normal operations, and the results of operations of SH are included in Janel’s condensed consolidated results of
operations since the date of the acquisition. In connection with the combination, the Company recorded an aggregate of $181 in
goodwill and $202 in other identifiable intangibles. Supplemental pro forma information has not been provided as the acquisition
did not have a significant impact on Janel’s condensed consolidated results of operations, individually or in aggregate. SH is a developer and manufacturer of antibodies and cell culture media for research and diagnostic uses. SH was
founded in 2011 and is headquartered in Lafayette, Indiana. The acquisition of SH was completed to expand our product offerings in our Life Sciences segment.
On May 22, 2023, the Company acquired all the rights, title and interests to a royalty agreement for certain antibody products for a purchase
price of $500. The Company recorded this acquisition as a royalty asset, which is included in intangible assets in the
accompanying condensed consolidated balance sheet (reclassed from Security deposits and other long-term assets in the current period) and will be amortized over the estimated life of ten years.
|
INVENTORY |
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY |
Inventories consisted of the following (in thousands):
|
INTANGIBLE ASSETS |
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS |
A summary of intangible assets and the estimated useful lives used in the
computation of amortization is as follows (in thousands):
The composition of the intangible assets balance at
December 31, 2023 and September 30, 2023 is as follows (in thousands):
Amortization expense for the three months ended December 31, 2023 and 2022 was $538 and $526, respectively.
|
GOODWILL |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL |
The Company’s goodwill carrying amounts relate to acquisitions in the
Logistics, Life Sciences and Manufacturing business segments.
The composition of the goodwill balance at December 31, 2023 and September 30,
2023 was as follows (in thousands):
|
NOTES PAYABLE - BANKS |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE - BANKS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||
NOTES PAYABLE - BANKS |
The wholly-owned subsidiaries that comprise the Company’s Logistics segment
(collectively, the “Janel Group Borrowers”), with the Company as a guarantor, have a Loan and Security Agreement (as amended, the “Santander Loan Agreement”)
with Santander with respect to a revolving line of credit facility (the “Santander Facility”).
On January 30, 2023, the Santander Loan
Agreement was further amended by the Third Amendment to the Amended and Restated Loan and Security Agreement (the “Third Santander Amendment”). As amended by the terms of the Third Santander Amendment, the percentage of the Borrowers’
eligible accounts receivable used to calculate the borrowing base under the Santander Loan Agreement was increased from 85% to 90% for Domestic Insured Accounts (as defined in the Third Santander Amendment), subject to adjustments set forth in the Santander
Loan Agreement.
On April 25,
2023, in connection with an amendment to the Credit Agreement entered into with First Merchants Bank (“First Merchants”) as described further below, we entered into the Fourth Amendment to the Amended and Restated Loan and Security
Agreement (the “Fourth Santander Amendment”). The Fourth Santander Amendment (i) included modifications to address the amendments made to the First Merchants Credit Facilities (as defined below) and the consolidation of the debt
thereunder and (ii) terminated the subordination agreement relating to the Company’s guarantee of the First Merchants Credit Facilities (as defined below).
On August
22, 2023, we entered into the Fifth Amendment to the Santander Loan Agreement (the “Fifth Santander Amendment”). The Fifth Santander Amendment permitted the Company, in the ordinary course of business, to guaranty obligations of
subsidiaries on an unsecured basis in an aggregate amount not to exceed $4,000 and related modifications to certain negative
covenants.
On December
1, 2023, in connection with an amendment (the “Purchase Agreement Amendment”) to that certain Membership Interest Purchase Agreement dated as of September 21, 2021 (the “Purchase Agreement”) among Janel Group, Inc. (“Janel Group”), a
wholly-owned subsidiary of the Company, Expedited Logistics and Freight Services, LLC (“ELFS”) and former shareholders of ELFS (the “ELFS Sellers”), (i) the Janel Group Borrowers and Santander entered into an Acknowledgment and Consent
Agreement pursuant to which Santander consented to the Purchase Agreement Amendment and the effect of the modifications thereunder on the Santander Loan Agreement and (ii) the ELFS Sellers and Santander entered into an Acknowledgment
and Consent Agreement pursuant to which Santander consented to the Purchase Agreement Amendment and the effect of the modifications thereunder on the Subordination Agreement (as defined in the Santander Loan Agreement) between Santander
and the ELFS Sellers.
On December
21, 2023, we entered into the Sixth Amendment to the Amended and Restated Loan and Security Agreement, which modified the reporting due date of the monthly borrowing base calculation from the fifth day to the fifteenth day of each
month.
The
Santander Loan Agreement matures on September 21, 2026. Interest accrues on the Santander Facility at an annual rate equal to
the one-month SOFR plus 2.75%.
The Janel Group Borrowers’ obligations under the Santander Facility are secured by all of the assets of the Janel Group Borrowers, while the Santander Loan Agreement contains customary terms and covenants. As a result of its terms, the
Santander Facility is classified as a current liability on the consolidated balance sheet.
At December 31, 2023, outstanding borrowings under the Santander Facility were $16,252,
representing 46.4% of the $35,000
available subject to limitations thereunder, and interest was accruing at an effective interest rate of 7.68%.
At September 30, 2023, outstanding borrowings under the Santander Facility were $18,759,
representing 53.6% of the $35,000
available thereunder, and interest was accruing at an effective interest rate of 7.60%.
The Company was in compliance with the financial covenants defined in the
Santander Loan Agreement at both December
31, 2023 and September 30, 2023.
On February 29, 2016, Indco entered into a Credit Agreement (as amended,
the “Prior First Merchants Credit Agreement”) with First Merchants.
On April 25, 2023, Indco and certain other Subsidiaries of the Company that
are part of the Life Sciences and Manufacturing segments (together with Indco, the “Borrowers” and each, a “Borrower”), entered into a Credit Agreement (the “First Merchants Credit Agreement”) with First Merchants. The First Merchants
Credit Agreement constitutes an amendment and restatement of the Prior First Merchants Credit Agreement. The credit facilities provided under the First Merchants Credit Agreement (the “First Merchants Credit Facilities”) consist of a $3,000 revolving loan (limited to the borrowing base and reserves), a $5,000 acquisition loan, a $6,905 Term A loan and a $620 Term B loan as a continuation of the mortgage loan under the Prior First Merchants Credit Agreement. Interest accrues on the outstanding
revolving loan, Term A loan and acquisition loan at an annual rate equal to one-month adjusted term SOFR plus either (i) 2.75% (if the Borrowers’ total funded debt to EBITDA ratio is less or equal to 1.75:1.00) or (ii) 3.50% (if the Borrowers’ total funded debt to
EBITDA ratio is greater than to 1.75:1.00). Interest accrues on the Term B loan at an annual rate of 4.19%. The Borrowers’ obligations under the First Merchants Credit Facilities are secured by all of the Borrowers’ real property and other
assets, and are guaranteed by the Company, and the Company’s guarantee of the Borrowers’ obligations is secured by a pledge of the Company’s equity interests in certain of the Borrowers. The revolving loan portion will expire on August 1, 2027, the Term A loan portion will mature on April 25, 2033, and the Term B loan portion will mature on July 1, 2025.
The acquisition loan will permit multiple draws until October 25, 2024, at which point the outstanding principal amount will amortize, with all remaining amounts of the acquisition loan due at maturity on April 25, 2029.
As of December 31, 2023, there were $500 of outstanding borrowings under the acquisition loan, $250 of outstanding borrowings under the revolving loan, $5,645 of
outstanding borrowings under the Term A loan and $604 of outstanding borrowings under the Term B loan, with interest accruing on
the acquisition loan and revolving loan at an effective interest rate of 8.22% and on the Term A loan and Term B loan at an
effective interest rate of 8.22% and 4.19%,
respectively.
As of September 30, 2023, there were $500 of outstanding borrowings under the acquisition loan, $450 of outstanding borrowings under the revolving loan, $6,235 of outstanding borrowings under the Term A loan and $610 of outstanding borrowings under the Term B loan, with interest accruing on the acquisition loan and revolving loan at an effective interest rate of 8.18% and on the Term A loan and Term B loan at an effective interest rate of 8.18% and 4.19%, respectively. The Company was in compliance with the financial covenants defined in the
First Merchants Credit Agreement at December 31, 2023 and
September 30, 2023.
The table below sets forth the total long-term debt, net of capitalized loan fees of $349 for the First Merchants Credit Agreement (in thousands):
|
SUBORDINATED PROMISSORY NOTES - RELATED PARTY |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||
SUBORDINATED PROMISSORY NOTES - RELATED PARTY [Abstract] | |||||||||||||||||||||||||||||||||||||||
SUBORDINATED PROMISSORY NOTES - RELATED PARTY |
(A) ICT Subordinated Promissory Note
Aves
Labs, Inc., a wholly-owned subsidiary of the Company, is the obligor on a fixed 0.5% subordinated promissory note in the
amount of $1,850 (the “ICT Subordinated Promissory Note”) issued to the former owner of ImmunoChemistry Technologies, LLC
(“ICT”), in connection with a business combination whereby the Company acquired all of the membership interests of ICT. The ICT Subordinated Promissory Note is payable in sixteen scheduled quarterly installments of principal
and interest beginning March 4, 2021, matures on December 4, 2024, and may be prepaid, in whole or in part, without premium or
penalty.
The
ICT Subordinated Promissory Note is subordinate to and junior in right of payment for principal interest premiums and other amounts payable to Santander and First Merchants.
As of December 31, 2023, the amount outstanding under the ICT Subordinated Promissory Note was $221,
net of a $28 discount, which is included in the current portion of subordinated promissory notes.
As of September
30, 2023, the amount outstanding under the ICT Subordinated Promissory Note was $312, of which $288 is included in the current portion of subordinated promissory notes and $24 is included in the long-term portion of subordinated promissory notes.
(B) ELFS Subordinated Promissory Notes
Janel Group is
the obligor on four fixed 4%
subordinated promissory notes totaling $6,000 in the aggregate (together, the “ELFS Subordinated Promissory Notes”), payable to
certain former shareholders of ELFS, in connection with the Company’s business combination whereby it acquired all the membership interest of ELFS and its related
subsidiaries. All of the ELFS Subordinated Promissory Notes are guaranteed by the Company and are subordinate to and junior in right of payment for principal, interest, premiums and other amounts payable to the Santander Facility
and the First Merchants Credit Facilities. The ELFS Subordinated Promissory Notes are payable in twelve equal consecutive quarterly installments of principal together with accrued interest. Beginning October 15, 2021 and on the same day of the next eight consecutive calendar quarters, payment of accrued interest and unpaid interest is due to the former shareholders. Beginning October 15,
2023 and on the same day of the next twelve consecutive calendar quarters, payment of principal together with accrued interest
and unpaid interest is due to the former shareholders. In June 2022, the principal amount of the ELFS Subordinated Promissory Notes was adjusted to $5,100 due to a revised working capital adjustment of $900.
On December 1, 2023, in connection with the Purchase Agreement Amendment
described above, the Company extended the ELFS Subordinated Promissory Notes maturity by two years and restored the working
capital adjustment (as defined in the Purchase Agreement) by $900, which increased the principal amount of the ELFS Subordinated
Promissory Notes to $6,000. The Company evaluated the accounting treatment related to the amendment and determined the agreements
are substantially different; accordingly, the Company extinguished the original subordinated promissory notes and recorded the amended ELFS Subordinated Promissory Notes at a fair value of $4,654. As a result, the Company recorded a debt discount of approximately $921
and a $21 gain on extinguishment, which is included in other income expense.
As of December
31, 2023, the gross principal amount outstanding under the ELFS Subordinated Promissory Notes was $5,575 ($4,654 net of a $921 unamortized
discount), of which $1,174 was included in the current portion of subordinated promissory notes and $3,480 was included in the long-term portion of subordinated promissory notes.
As of September
30, 2023, the principal amount outstanding under the ELFS Subordinated Promissory Notes was $5,100, of which $1,700 was included in the current portion of subordinated promissory notes and $3,400
was included in the long-term portion of subordinated promissory notes.
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STOCKHOLDERS' EQUITY |
3 Months Ended | ||
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Dec. 31, 2023 | |||
STOCKHOLDERS' EQUITY [Abstract] | |||
STOCKHOLDERS' EQUITY |
(in thousands, except share and per share data)
Preferred Stock
Series C Cumulative Preferred Stock
Shares of the Company’s Series C Cumulative Preferred Stock (the “Series C Stock”) were initially entitled to receive annual dividends at a rate of
7% per annum of the original issuance price of $500, when and if declared by the Company’s board of directors, with such rate to increase by 2% annually
beginning on the third anniversary of issuance of such Series C Stock to a maximum rate of 13%. By the filing of the Certificate of
Amendment to the Company’s Certificate of Incorporation on March 31, 2022, the annual dividend rate decreased to 5% per annum of the
original issuance price, when and if declared by the Company’s board of directors, and will increase by 1% beginning on January 1, 2024.
Such rate is to increase on each January 1 thereafter for four years to a maximum rate of 9%. The dividend rate of the Series C Stock as of each December 31, 2023 and September 30, 2023 was 5%.
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STOCK-BASED COMPENSATION |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION |
(in thousands, except share and per share data)
On
October 30, 2013, the board of directors of the Company adopted the Company’s 2013 Non-Qualified Stock Option Plan (the “2013 Option Plan”) providing for options to purchase up to 100,000 shares of common stock for issuance to directors, officers, employees of and consultants to the Company and its subsidiaries.
On September 21, 2021, the board of directors of the Company adopted the
Amended and Restated 2017 Janel Corporation Equity Incentive Plan (the “Amended Plan”) pursuant to which non-statutory stock options, restricted stock awards and stock appreciation rights of the Company’s Common Stock may be granted to
employees, directors and consultants to the Company and its subsidiaries. The Amended Plan increased the number of shares of Common Stock that may be issued pursuant to the Amended Plan from 100,000 to 200,000 shares of Common Stock of the Company
and was updated to reflect certain other non-substantive amendments.
Total stock-based compensation for the three months ended December 31, 2023 and 2022 amounted to $68
and $51, respectively, and is included in selling, general and administrative expense in the
Company’s statements of operations.
Options
The
aggregate intrinsic value in the above table was calculated as the difference between the closing price of the Company’s common stock at December 31, 2023 of $25.00 per share and the exercise price of the stock options that had strike prices below such closing price.
As of December 31, 2023, there was approximately $479 of total unrecognized compensation expense related to the unvested employee stock options which is expected to be recognized over a weighted
average period of 1.73 years.
Liability classified share-based awards
During the three months ended December 31, 2023 and fiscal year ended September 30, 2023, there were no
options granted and no options were exercised with respect to Indco’s common stock.
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INCOME PER COMMON SHARE |
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME PER COMMON SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME PER COMMON SHARE |
The following table provides a reconciliation of the basic and diluted
earnings per share (“EPS”) computations for the three months ended December 31, 2023 and 2022:
The computation for the diluted number of shares excludes unexercised stock options that are anti-dilutive. There were 22.5 and 10 anti-dilutive shares for the three-month periods ended
December 31, 2023 and 2022, respectively.
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INCOME TAXES |
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES |
The reconciliation of income tax computed at the Federal statutory rate to
the provision for income taxes from continuing operations for the three month periods ended December 31, 2023 and 2022 was as follows (in thousands):
|
BUSINESS SEGMENT INFORMATION |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION |
As referenced above in Note 1, the Company operates in three reportable segments: Logistics, Life Sciences and Manufacturing.
The Company’s
Chief Executive Officer regularly reviews financial information at the reporting segment level in order to make decisions about resources to be allocated to the segments and to assess their performance.
The following tables present selected financial information about the
Company’s reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three months ended December 31, 2023:
The following tables present selected financial information
about the Company’s reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three months ended December 31, 2022:
|
FAIR VALUE MEASUREMENTS |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS |
Recurring Fair Value Measurements
The following table presents the Company’s assets that are measured at fair value on a recurring basis based on the three-level valuation
hierarchy (in thousands):
On August 19, 2022, the Company acquired 1,108,000
shares of the common stock, par value $0.001 per share, of Rubicon Technology, Inc. (“Rubicon”), at a price per share of $20.00, in a cash tender offer. As of each of December 31, 2023 and September 30, 2023, the Company held 46.6% of the total issued and outstanding shares of Rubicon and reported its investment under the fair value method pursuant to ASC 320. Management determined that it was
appropriate to carry its investment in Rubicon at fair value because the investment was traded on the NASDAQ stock exchange through January 2, 2023, began trading on the OTCQB Capital Market on January 3, 2023 and had daily trading activity, the
combination of which provide a better indicator of value. The investment in Rubicon is re-measured at the end of each quarter based on the trading price and any change in the value is reported on the income statement as an unrealized gain or loss
on marketable securities in other income (expense).
On October 4, 2023, Rubicon announced that it had authorized a cash dividend of $1.10 per share of
common stock of Rubicon and set October 16, 2023 as the record date for the distribution. On October 23, 2023, the Company received
$1,219 in dividends and recorded a fair value adjustment to its investment in Rubicon of $709, which is included in other income and expense.
The following table sets forth a summary of the changes in the fair value of the Company’s investment in Rubicon, which is measured at fair
value on a recurring basis utilizing Level 1 assumptions in its valuation (in thousands):
The following table
presents the Company’s liabilities that are measured at fair value on a recurring basis based on the three-level valuation hierarchy (in thousands):
These liabilities
relate to the estimated fair value of earnout payments to former IBS and ELFS Sellers for the periods ending December 31, 2023 and September 30, 2023.
On December 1, 2023, in connection with the Purchase Agreement Amendment among Janel Group
and the ELFS Sellers described above, the parties agreed to certain modifications fixing the amount of the remaining earnout payments to ELFS in earnout years three and four to $1,078 each year. As a result the measurement of the earnout liability became a Level 1 fair value measurement based on the present value of the negotiated payments.
The current and
non-current portions of the fair value of the contingent earnout liabilities at December 31, 2023 were $740 and $1,996, respectively. The current and non-current portions of the fair value of the contingent earnout liabilities at September 30, 2023 were $592 and $1,738, respectively.
The following table sets forth a summary of the changes in
the fair value of the Company’s contingent earnout liabilities, which are measured at fair value on a recurring basis utilizing Level 3 assumptions in their valuation (in thousands):
The Company determined the fair value of the Level 3
contingent earnout liability using forecasted results through the expected earnout periods. The principal inputs to the approach include expectations of the specific business’s revenues in fiscal years 2024 through 2025 using an appropriate
discount rate. Given the use of significant inputs that are not observable in the market, the contingent earnout liability is classified within Level 3 of the fair value hierarchy.
|
LEASES |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LEASES |
The Company has operating leases for office and warehouse space in all
locations where it conducts business. As of December 31, 2023, the remaining terms of the Company’s operating leases were between
and 123 months and certain lease agreements contain provisions for future rent increases. Payments due under the lease contracts
include the minimum lease payments that the Company is obligated to make under the non-cancelable initial terms of the leases as the renewal terms are at the Company’s option and the Company is not reasonably certain to exercise those renewal
options at lease commencement.The components of lease cost for the three-month periods ended December 31,
2023 and 2022 were as follows (in thousands):
Rent expense for the three months
ended December 31, 2023 and 2022 was $699 and $571, respectively.
Operating lease right of use
assets, current portion of operating lease liabilities and long-term operating lease liabilities reported in the condensed consolidated balance sheets for operating leases as of December 31, 2023 were $6,853, $1,935 and $5,221, respectively.
Operating lease right of use assets, current portion of operating lease liabilities and long-term operating lease liabilities reported in the condensed consolidated balance sheets for operating leases as of September 30, 2023 were $7,460, $2,020 and $5,689, respectively. As of December 31, 2023 and
September 30, 2023, the weighted-average remaining lease term and the weighted-average discount rate related to the Company’s operating leases were 5.8 years and 4.53% and 5.9 years and 4.01%, respectively.
Future minimum lease payments under non-cancelable operating leases as of
December 31, 2023 were as follows (in thousands):
|
SUBSEQUENT EVENTS |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 | |||
SUBSEQUENT EVENTS [Abstract] | |||
SUBSEQUENT EVENTS |
On January 10,
2024, the agreement governing the First Merchants Credit Facilities was amended to provide for, among other changes, permitted affiliate loans, provided that availability on its revolving loan both before and after giving effect to any such
loan is not less than $1,000 and the maturity of such permitted affiliate loans are not to exceed fourteen days from disbursement.
|
Insider Trading Arrangements |
3 Months Ended |
---|---|
Dec. 31, 2023 | |
Insider Trading Arrangements [Line Items] | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue and revenue recognition |
Revenue and revenue recognition
Logistics
Revenues are recognized upon transfer of control of promised services to
customers. With respect to its Logistics segment, the Company has determined that in general each shipment transaction or service order constitutes a separate contract with the customer. When the Company provides multiple services to a
customer, different contracts may be present for different services.
The Company typically satisfies its performance obligations as services are
rendered at a point in time. A typical shipment would include services rendered at origin, such as pick-up and delivery to port, freight services from origin to destination port and destination services, such as customs clearance and final
delivery. The Company measures the performance of its obligations as services are completed at a point in time during the life of a shipment, including services at origin, freight and destination. The Company fulfills nearly all of its
performance obligations within a one- to two-month period.
The Company evaluates whether amounts billed to customers should be reported
as gross or net revenues. Generally, revenues are recorded on a gross basis when the Company is acting as principal and is primarily responsible for fulfilling the promise to provide the services, when it has discretion in setting the prices
for the services to the customers, and the Company has the ability to direct the use of the services provided by the third party. Revenues are recognized on a net basis when the Company is acting as agent and we do not have latitude in carrier
selection or to establish rates with the carrier.
In the Logistics segment, the Company disaggregates its revenue by its four
primary service categories: trucking, air, ocean and customs brokerage and
other. The Company has aggregated customs brokerage and other for the periods ended December 31, 2023 and 2022. A summary of the Company’s revenues disaggregated by major
service lines for the three months ended December 31, 2023 and 2022 was as follows (in thousands):
Life Sciences and Manufacturing
Revenues from the Company’s Life Sciences segment are derived from the sale of
high-quality monoclonal and polyclonal antibodies, diagnostic reagents and diagnostic kits and other immunoreagents for biomedical research and antibody manufacturing. Revenues from the Company’s Manufacturing segment, which is comprised of
Indco, a majority-owned subsidiary of the Company that manufactures and distributes mixing equipment and apparatus for specific applications within various industries, are derived from the engineering, manufacture and delivery of specialty
mixing equipment and accessories. Revenues for Life Sciences and Manufacturing are recognized when products are shipped, and risk of loss is transferred to the carrier(s) used.
|
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregation of Revenue | The Company has aggregated customs brokerage and other for the periods ended December 31, 2023 and 2022. A summary of the Company’s revenues disaggregated by major
service lines for the three months ended December 31, 2023 and 2022 was as follows (in thousands):
|
INVENTORY (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventories |
Inventories consisted of the following (in thousands):
|
INTANGIBLE ASSETS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets and Estimated Useful Lives used in Computation of Amortization |
A summary of intangible assets and the estimated useful lives used in the
computation of amortization is as follows (in thousands):
The composition of the intangible assets balance at
December 31, 2023 and September 30, 2023 is as follows (in thousands):
|
GOODWILL (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Composition of Goodwill |
The composition of the goodwill balance at December 31, 2023 and September 30,
2023 was as follows (in thousands):
|
NOTES PAYABLE - BANKS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||
NOTES PAYABLE - BANKS [Abstract] | |||||||||||||||||||||||||||||||||||||
Schedule of Debt |
The table below sets forth the total long-term debt, net of capitalized loan fees of $349 for the First Merchants Credit Agreement (in thousands):
|
SUBORDINATED PROMISSORY NOTES - RELATED PARTY (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||
SUBORDINATED PROMISSORY NOTES - RELATED PARTY [Abstract] | |||||||||||||||||||||||||||||||||||||
Amounts Outstanding |
As of September
30, 2023, the principal amount outstanding under the ELFS Subordinated Promissory Notes was $5,100, of which $1,700 was included in the current portion of subordinated promissory notes and $3,400
was included in the long-term portion of subordinated promissory notes.
|
STOCK-BASED COMPENSATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity of Stock Options |
Options
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INCOME PER COMMON SHARE (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME PER COMMON SHARE [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Basic and Diluted Earnings Per Share |
The following table provides a reconciliation of the basic and diluted
earnings per share (“EPS”) computations for the three months ended December 31, 2023 and 2022:
|
INCOME TAXES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Reconciliation |
The reconciliation of income tax computed at the Federal statutory rate to
the provision for income taxes from continuing operations for the three month periods ended December 31, 2023 and 2022 was as follows (in thousands):
|
BUSINESS SEGMENT INFORMATION (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS SEGMENT INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting Information by Segment |
The following tables present selected financial information about the
Company’s reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three months ended December 31, 2023:
The following tables present selected financial information
about the Company’s reportable segments and Corporate for the purpose of reconciling to the consolidated totals for the three months ended December 31, 2022:
|
FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets and Liabilities Measured at Fair Value on Recurring Basis |
Recurring Fair Value Measurements
The following table presents the Company’s assets that are measured at fair value on a recurring basis based on the three-level valuation
hierarchy (in thousands):
The following table
presents the Company’s liabilities that are measured at fair value on a recurring basis based on the three-level valuation hierarchy (in thousands):
|
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Changes in Fair Value of Investment in Rubicon Measured at Fair Value on Recurring Basis Utilizing Level 1 Assumptions |
The following table sets forth a summary of the changes in the fair value of the Company’s investment in Rubicon, which is measured at fair
value on a recurring basis utilizing Level 1 assumptions in its valuation (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Fair Value of Contingent Earnout Liabilities Measured at Fair Value on Recurring Basis Utilizing Level 3 Assumptions |
The following table sets forth a summary of the changes in
the fair value of the Company’s contingent earnout liabilities, which are measured at fair value on a recurring basis utilizing Level 3 assumptions in their valuation (in thousands):
|
LEASES (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||
LEASES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Components of Lease Expense |
The components of lease cost for the three-month periods ended December 31,
2023 and 2022 were as follows (in thousands):
|
|||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments for Operating Leases |
Future minimum lease payments under non-cancelable operating leases as of
December 31, 2023 were as follows (in thousands):
|
BASIS OF PRESENTATION AND SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2023
USD ($)
Category
Segment
|
Dec. 31, 2022
USD ($)
|
|
Business description [Abstract] | ||
Number of reportable segments | Segment | 3 | |
Revenues and revenue recognition [Abstract] | ||
Revenues | $ 41,035 | $ 57,044 |
Logistics [Member] | ||
Revenues and revenue recognition [Abstract] | ||
Number of primary service categories | Category | 4 | |
Revenues | $ 35,215 | 51,800 |
Logistics [Member] | Trucking [Member] | ||
Revenues and revenue recognition [Abstract] | ||
Revenues | 17,997 | 22,761 |
Logistics [Member] | Air [Member] | ||
Revenues and revenue recognition [Abstract] | ||
Revenues | 6,711 | 6,239 |
Logistics [Member] | Ocean [Member] | ||
Revenues and revenue recognition [Abstract] | ||
Revenues | 6,448 | 18,166 |
Logistics [Member] | Custom Brokerage and Other [Member] | ||
Revenues and revenue recognition [Abstract] | ||
Revenues | $ 4,059 | $ 4,634 |
ACQUISITIONS, Fiscal 2023 Acquisition (Details) - USD ($) $ in Thousands |
May 22, 2023 |
Mar. 02, 2023 |
Nov. 01, 2022 |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|---|---|---|
Business Combination, Consideration Transferred [Abstract] | |||||
Goodwill | $ 20,317 | $ 20,317 | |||
Royalty Agreement Asset [Member] | |||||
Asset Acquisition [Abstract] | |||||
Purchase price | $ 500 | ||||
IBS [Member] | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Aggregate purchase price | $ 3,755 | ||||
Consideration transferred, cash received | 153 | ||||
Consideration paid in cash | 3,000 | ||||
Due to the stockholder | 250 | ||||
Fair value of consideration transferred | 300 | ||||
Maximum earnout payments due | 750 | ||||
Preliminary working capital adjustment | 205 | ||||
Goodwill | 1,468 | ||||
Identifiable intangibles | $ 1,680 | ||||
SH [Member] | |||||
Business Combination, Consideration Transferred [Abstract] | |||||
Aggregate purchase price | $ 600 | ||||
Consideration paid in cash | 500 | ||||
Due to the stockholder | 100 | ||||
Goodwill | 181 | ||||
Identifiable intangibles | $ 202 |
INVENTORY (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
INVENTORY [Abstract] | ||
Finished goods | $ 1,953 | $ 2,095 |
Work-in-process | 922 | 969 |
Raw materials | 1,781 | 1,811 |
Gross inventory | 4,656 | 4,875 |
Less - reserve for inventory valuation | (28) | (25) |
Inventory net | $ 4,628 | $ 4,850 |
GOODWILL (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
Composition of Goodwill [Abstract] | ||
Goodwill | $ 20,317 | $ 20,317 |
Logistics [Member] | ||
Composition of Goodwill [Abstract] | ||
Goodwill | 9,175 | 9,175 |
Life Sciences [Member] | ||
Composition of Goodwill [Abstract] | ||
Goodwill | 6,096 | 6,096 |
Manufacturing [Member] | ||
Composition of Goodwill [Abstract] | ||
Goodwill | $ 5,046 | $ 5,046 |
NOTES PAYABLE - BANKS, Santander Bank Facility (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023 |
Sep. 30, 2023 |
Aug. 22, 2023 |
Jan. 30, 2023 |
Jan. 29, 2023 |
|
Revolving Line of Credit Facility [Abstract] | |||||
Outstanding borrowings | $ 17,002 | $ 19,709 | |||
Santander Bank Facility [Member] | |||||
Revolving Line of Credit Facility [Abstract] | |||||
Percentage of accounts receivable | 90.00% | 85.00% | |||
Maturity date of facility | Sep. 21, 2026 | ||||
Outstanding borrowings | $ 16,252 | $ 18,759 | |||
Percentage of outstanding borrowings | 46.40% | 53.60% | |||
Maximum borrowing capacity | $ 35,000 | $ 35,000 | |||
Effective interest rate | 7.68% | 7.60% | |||
Santander Bank Facility [Member] | Maximum [Member] | |||||
Revolving Line of Credit Facility [Abstract] | |||||
Face amount of debt | $ 4,000 | ||||
Santander Bank Facility [Member] | SOFR [Member] | |||||
Revolving Line of Credit Facility [Abstract] | |||||
Variable rate term | one-month | ||||
Basis spread on variable rate | 2.75% |
SUBORDINATED PROMISSORY NOTES - RELATED PARTY, Amounts Outstanding (Details) - USD ($) $ in Thousands |
Dec. 31, 2023 |
Sep. 30, 2023 |
---|---|---|
Subordinated Promissory Notes [Abstract] | ||
Less current portion of subordinated promissory notes | $ (1,395) | $ (1,988) |
Long-term portion of subordinated promissory notes | 3,480 | 3,424 |
Subsidiary of Common Parent [Member] | ICT and ELFS Subordinated Promissory Notes [Member] | ||
Subordinated Promissory Notes [Abstract] | ||
Total subordinated promissory notes | 4,875 | 5,412 |
Less current portion of subordinated promissory notes | (1,395) | (1,988) |
Long-term portion of subordinated promissory notes | $ 3,480 | $ 3,424 |
STOCKHOLDERS' EQUITY (Details) - Series C Cumulative Preferred Stock [Member] - $ / shares |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2022 |
Oct. 16, 2017 |
Dec. 31, 2023 |
Sep. 30, 2023 |
|
Series C Cumulative Preferred Stock [Abstract] | ||||
Preferred stock, dividend rate | 5.00% | 7.00% | 5.00% | 5.00% |
Share price (in dollars per share) | $ 500 | |||
Annual increase in dividend rate | 2.00% | 1.00% | ||
Period of increase in dividend rate | 4 years | |||
Maximum [Member] | ||||
Series C Cumulative Preferred Stock [Abstract] | ||||
Preferred stock, dividend rate | 13.00% | 9.00% |
STOCK-BASED COMPENSATION, Expense and Authorized (Details) - USD ($) $ in Thousands |
3 Months Ended | ||||
---|---|---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Sep. 21, 2021 |
Sep. 20, 2021 |
Oct. 30, 2013 |
|
Selling, General and Administrative Expenses [Member] | |||||
Share-based Compensation [Abstract] | |||||
Stock-based compensation | $ 68 | $ 51 | |||
2013 Option Plan [Member] | |||||
Share-based Compensation [Abstract] | |||||
Options to purchase common stock for issuance (in shares) | 100,000 | ||||
2017 Plan [Member] | |||||
Share-based Compensation [Abstract] | |||||
Options to purchase common stock for issuance (in shares) | 100,000 | ||||
Amended 2017 Plan [Member] | |||||
Share-based Compensation [Abstract] | |||||
Options to purchase common stock for issuance (in shares) | 200,000 |
STOCK-BASED COMPENSATION, Liability Classified Share-based Awards (Details) - Stock Options [Member] - Indco [Member] - shares |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2023 |
Sep. 30, 2023 |
|
Number of Options [Roll Forward] | ||
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | 0 |
INCOME TAXES (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
|
Reconciliation of Income Tax [Abstract] | ||
Federal taxes at statutory rates | $ 98 | $ 107 |
Permanent differences | 58 | 1 |
State and local taxes, net of Federal benefit | 36 | 39 |
Total | $ 192 | $ 147 |
FAIR VALUE MEASUREMENTS, Changes in Fair Value of Investment in Rubicon Measured at Fair Value on Recurring Basis Utilizing Level 1 Assumptions (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2023 |
Sep. 30, 2023 |
|
Changes in Fair Value of Investment [Abstract] | ||
Balance beginning of period | $ 1,573 | |
Balance end of period | 864 | $ 1,573 |
Recurring Basis [Member] | Level 1 [Member] | ||
Changes in Fair Value of Investment [Abstract] | ||
Balance beginning of period | 1,573 | 2,371 |
Fair value adjustment to Rubicon investment | (709) | (798) |
Balance end of period | $ 864 | $ 1,573 |
FAIR VALUE MEASUREMENTS, Changes in Fair Value of Contingent Earnout Liabilities Measured at Fair Value on Recurring Basis Utilizing Level 3 Assumptions (Details) - USD ($) $ in Thousands |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
Change in contingent consideration measured at fair value recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | |||
Fair value adjustment of contingent earnout liabilities | $ 405 | $ 0 | |
Transfer to level 1 | (2,435) | $ 0 | |
Recurring [Member] | Level 3 [Member] | Contingent Earnout Liabilities [Member] | |||
Change in contingent consideration measured at fair value recurring basis using significant unobservable inputs (Level 3) [Roll Forward] | |||
Balance beginning of period | 2,330 | $ 4,580 | 4,580 |
Fair value of contingent consideration recorded in connection with business combinations | 0 | 300 | |
Earnout payment | 0 | (1,693) | |
Fair value adjustment of contingent earnout liabilities | 405 | (857) | |
Balance at end of year | $ 300 | $ 2,330 |
LEASES (Details) - USD ($) $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Dec. 31, 2023 |
Dec. 31, 2022 |
Sep. 30, 2023 |
|
Lease Cost [Abstract] | |||
Operating lease cost | $ 599 | $ 551 | |
Short-term lease cost | 100 | 20 | |
Total lease cost | 699 | 571 | |
Rent expense | 699 | $ 571 | |
Right of use assets | 6,853 | $ 7,460 | |
Current portion of operating lease liabilities | 1,935 | 2,020 | |
Long-term lease liabilities | $ 5,221 | $ 5,689 | |
Weighted-average remaining lease term - operating leases | 5 years 9 months 18 days | 5 years 10 months 24 days | |
Weighted-average discount rate - operating leases | 4.53% | 4.01% | |
Future Minimum Lease Commitments under Non-cancellable Leases [Abstract] | |||
2024 | $ 1,985 | ||
2025 | 1,523 | ||
2026 | 1,193 | ||
2027 | 1,215 | ||
2028 | 978 | ||
Thereafter | 1,467 | ||
Total undiscounted loan payments | 8,361 | ||
Less: imputed interest | (1,205) | ||
Total lease obligation | $ 7,156 | ||
Minimum [Member] | |||
Operating lease [Abstract] | |||
Operating lease term | 1 month | ||
Maximum [Member] | |||
Operating lease [Abstract] | |||
Operating lease term | 123 months |
SUBSEQUENT EVENTS (Details) - First Merchants Bank Credit Facility [Member] - Subsequent Event [Member] $ in Thousands |
Jan. 10, 2024
USD ($)
|
---|---|
Subsequent Events [Abstract] | |
Maturity term of facility | 14 days |
Minimum [Member] | |
Subsequent Events [Abstract] | |
Base amount | $ 1,000 |
1 Year Janel (PK) Chart |
1 Month Janel (PK) Chart |
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