LENDWAY, INC. Reports Q1 2024 Financial Results

LENDWAY, INC., a diversified company with interests in the fresh cut flower market and non-bank lending, has released its Form 10-Q report for the first quarter of 2024. The report highlights the financial and operational performance following the acquisition of Bloomia, a leading producer of fresh cut tulips.

Financial Highlights

• Revenue, net: $8.033 million, reflecting the acquisition of Bloomia and its contribution to the company's financials from February 22, 2024, through March 31, 2024.
• Gross Profit: $1.894 million, representing 23.6% of revenue, with a note on the impact of inventory fair value adjustments due to acquisition accounting.
• Operating loss: $(1.494) million, primarily due to acquisition-related expenses and expanded operations post-acquisition.
• Net (loss) income attributable to Lendway, Inc.: $(1.041) million, impacted by acquisition costs and seasonal sales patterns.
• Basic and diluted earnings per share: $(0.73), reflecting the net loss from continuing operations and the impact of acquisition-related expenses.

Business Highlights

• Revenue Segments: The Bloomia segment, acquired on February 22, 2024, generated $8,033,000 in revenue from the sale of fresh cut tulips during the reporting period. This segment is expected to have its strongest sales in the first and second quarters due to seasonal demand.
• Geographical Performance: Bloomia operates in the United States, Netherlands, South Africa, and Chile, with strategic positioning that supports its role as a leading producer of fresh cut tulips. The U.S. market is particularly significant due to relationships with prominent mass market retailers.
• Sales Units: Bloomia nurtures over 75 million tulip stems annually, highlighting its capacity and scale in the fresh cut flower market.
• Future Outlook: The company plans to focus on expanding its Bloomia business while also building a scalable non-bank lending business. However, capital allocation to the Bloomia acquisition will constrain available resources for the lending business in the near term.

SEC Filing: LENDWAY, INC. Reports Q1 2024 Financial Results [ NASDAQ:LDWY ] - 10-Q - May. 21, 2024