Exhibit 99.6

 

 

BIOCERES CROP SOLUTIONS CORP.

 

Unaudited interim condensed consolidated financial statements
as of March 31, 2025 and June 30, 2024, and for the three- and
nine-month periods ended March 31, 2025 and 2024.

 

 

 

 

INDEX

 

Unaudited interim condensed consolidated financial statements as of March 31, 2025 and June 30, 2024, and for the three- and nine-month periods ended March 31, 2025 and 2024.  
Unaudited interim condensed consolidated statements of financial position as of March 31, 2025 and June 30, 2024 F-3
Unaudited interim condensed consolidated statements of comprehensive income for the three- and nine-month periods ended March 31, 2025 and 2024 F-5
Unaudited interim condensed consolidated statements of changes in equity for the nine-month periods ended March 31, 2025 and 2024 F-7
Unaudited interim condensed consolidated statements of cash flows for the nine-month periods ended March 31, 2025 and 2024 F-8
Notes to the unaudited interim condensed consolidated financial statements F-9

 

F-2

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of March 31, 2025, and June 30, 2024

(Amounts in US$)

 

   Notes  03/31/2025   06/30/2024 
ASSETS           
CURRENT ASSETS           
Cash and cash equivalents  5.1   38,456,989    44,473,270 
Other financial assets  5.2   889,393    11,695,528 
Trade receivables  5.3   187,509,041    207,320,974 
Other receivables  5.4   16,135,221    18,298,672 
Recoverable income tax      1,790,249    655,691 
Inventories  5.5   92,019,649    125,929,768 
Biological assets      1,407,402    294,134 
Total current assets      338,207,944    408,668,037 
              
NON-CURRENT ASSETS             
Other financial assets  5.2   444,530    634,553 
Other receivables  5.4   19,927,005    17,957,121 
Recoverable income tax      17,716    10,889 
Deferred tax assets  7   13,970,973    9,698,860 
Investments in joint ventures and associates  11   39,120,728    39,786,353 
Investment properties      525,767    560,783 
Property, plant and equipment  5.6   75,344,269    74,573,278 
Intangible assets  5.7   181,823,403    176,893,136 
Goodwill      112,163,432    112,163,432 
Right of use asset  14   16,668,470    11,601,752 
Total non-current assets      460,006,293    443,880,157 
Total assets      798,214,237    852,548,194 

 

The accompanying Notes are an integral part of these unaudited interim condensed consolidated financial statements. Related parties’ balances and transactions are disclosed in Note 15.

 

F-3

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

As of March 31, 2025, and June 30, 2024

(Amounts in US$)

 

   Notes  03/31/2025   06/30/2024 
LIABILITIES           
CURRENT LIABILITIES           
Trade and other payables  5.8   128,600,242    168,732,469 
Borrowings  5.9   95,643,533    136,747,198 
Employee benefits and social security  5.11   7,831,902    7,340,958 
Deferred revenue and advances from customers  5.12   3,862,028    3,923,140 
Income tax payable      3,505,260    4,825,271 
Consideration for acquisition      1,795,985    4,617,281 
Secured notes  5.10   85,430,719    - 
Lease liabilities  14   5,639,789    3,122,778 
Total current liabilities      332,309,458    329,309,095 
              
NON-CURRENT LIABILITIES             
Borrowings  5.9   75,693,161    42,104,882 
Deferred revenue and advances from customers  5.12   1,436,912    1,925,138 
Joint ventures and associates  11   800,596    296,455 
Deferred tax liabilities  7   30,487,113    34,995,791 
Provisions      1,135,438    1,255,702 
Consideration for acquisition      478,212    2,309,234 
Secured notes  5.10   -    80,809,686 
Lease liabilities  14   10,896,775    8,161,359 
Total non-current liabilities      120,928,207    171,858,247 
Total liabilities      453,237,665    501,167,342 
              
EQUITY             
Equity attributable to owners of the parent      308,456,650    315,041,257 
Non-controlling interest      36,519,922    36,339,595 
Total equity      344,976,572    351,380,852 
Total equity and liabilities      798,214,237    852,548,194 

 

The accompanying Notes are an integral part of these unaudited interim condensed consolidated financial statements. Related parties’ balances and transactions are disclosed in Note 15.

 

F-4

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three- and nine-month periods ended of March 31, 2025, and 2024

(Amounts in US$)

 

      Three-month period ended   Nine-month period ended 
   Notes  03/31/2025   03/31/2024   03/31/2025   03/31/2024 
                    
Revenues from contracts with customers  6.1   59,596,050    84,038,761    258,976,239    340,515,393 
Initial recognition and changes in the fair value of biological assets at the point of harvest      990,940    (56,756)   1,578,993    281,372 
                        
Cost of sales  6.2   (36,738,969)   (41,337,736)   (154,085,421)   (201,664,054)
Changes in the net realizable value of agricultural products after harvest      (218,205)   170,811    (423,115)   (2,021,747)
Research and development expenses  6.3   (3,659,747)   (3,590,101)   (12,263,862)   (11,814,419)
Selling, general and administrative expenses  6.4   (26,153,159)   (27,089,241)   (89,478,363)   (92,187,026)
Share of profit or loss of joint ventures and associates  11   (943,603)   906,136    (1,169,766)   4,467,103 
Other income or expenses, net  6.5   8,059,903    158,946    8,085,743    (2,239,292)
Operating profit      933,210    13,200,820    11,220,448    35,337,330 
                        
Financial cost  6.6   (6,106,655)   (7,235,352)   (20,700,288)   (18,713,202)
Other financial results  6.6   (423,673)   2,856,009    (3,175,591)   (480,187)
Profit/ (Loss) before income tax      (5,597,118)   8,821,477    (12,655,431)   16,143,941 
                        
Income tax  7   4,006,054    955,832    5,471,555    (7,806,595)
Profit/ (Loss) for the period      (1,591,064)   9,777,309    (7,183,876)   8,337,346 
Profit (Loss) for the period attributable to:                       
Equity holders of the parent      (1,303,923)   9,257,226    (7,529,650)   4,774,041 
Non-controlling interests      (287,141)   520,083    345,774    3,563,305 
       (1,591,064)   9,777,309    (7,183,876)   8,337,346 
Profit/ (Loss) per share                       
Basic loss attributable to ordinary equity holders of the parent  8   (0.0208)   0.1473    (0.1199)   0.0760 
Diluted loss attributable to ordinary equity holders of the parent  8   (0.0208)   0.1387    (0.1199)   0.0715 

 

F-5

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

For the three- and nine-month periods ended of March 31, 2025, and 2024

(Amounts in US$)

 
       Three-month period ended   Nine-month period ended 
   Notes   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
Profit/ (Loss) for the period       (1,591,064)   9,777,309    (7,183,876)   8,337,346 
                         
Other comprehensive profit/ (loss)       (788,930)   193,599    (705,969)   (250,655)
Items that may be subsequently reclassified to profit/(loss)       (788,930)   193,599    (705,969)   (250,655)
Foreign exchange differences on translation of foreign operations from joint ventures       -    (1,136)   -    (239)
Foreign exchange differences on translation of foreign operations       (788,930)   194,735    (705,969)   (250,416)
Total comprehensive profit/ (loss)       (2,379,994)   9,970,908    (7,889,845)   8,086,691 
Total comprehensive profit/ (loss) attributable to:                        
Equity holders of the parent       (2,121,169)   9,492,441    (8,142,223)   4,639,087 
Non-controlling interests       (258,825)   478,467    252,378    3,447,604 
        (2,379,994)   9,970,908    (7,889,845)   8,086,691 

 

The accompanying Notes are an integral part of these unaudited interim condensed consolidated financial statements. Related parties’ balances and transactions are disclosed in Note 15.

 

F-6

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

For the nine-month periods ended of March 31, 2025, and 2024

(Amounts in US$)

   Attributable to the equity holders of the parent         
Description  Issued
capital
   Share
premium
   Changes in
non-
controlling interests
   Own shares
trading
premium
   Stock
options and
share based
incentives
   Convertible
instruments
   Cost of own
shares held
   Retained
deficit
   Foreign
currency
translation
reserve
   Revaluation
of PP&E
and effect
of tax rate
change
   Equity /
(deficit)
attributable
to owners
of the
parent
   Non-
controlling
Interests
   Total
equity
 
                                                     
06/30/2023   6,493    327,028,559    (255,893)   (780,841)   6,645,442    9,285,261    (30,553,591)   (13,903,017)   1,282,377    (160,702)   298,594,088    31,902,019    330,496,107 
Share-based incentives   6    573,636    -    -    10,282,313    -    -    -    -    -    10,855,955    -    10,855,955 
Purchase of own shares   -    -    -    -    -    -    (734,388)   -    -    -    (734,388)   -    (734,388)
Distribution of dividends by subsidiary   -    -    -    -    -    -    -    -    -    -    -    (174,800)   (174,800)
Profit for the period   -    -    -    -    -    -    -    4,774,041    -    -    4,774,041    3,563,305    8,337,346 
Other comprehensive loss   -    -    -    -    -    -    -    -    (134,954)   -    (134,954)   (115,701)   (250,655)
03/31/2024   6,499    327,602,195    (255,893)   (780,841)   16,927,755    9,285,261    (31,287,979)   (9,128,976)   1,147,423    (160,702)   313,354,742    35,174,823    348,529,565 
                                                                  
06/30/2024   6,500    327,640,676    (255,893)   (780,841)   19,427,375    9,285,261    (31,287,979)   (9,627,329)   794,189    (160,702)   315,041,257    36,339,595    351,380,852 
Share-based incentives   -    73,787    -    -    2,410,728    -    -    -    -    -    2,484,515    -    2,484,515 
Purchase of own shares   -    -    -    -    -    -    (926,899)   -    -    -    (926,899)   -    (926,899)
Distribution of dividends by subsidiary   -    -    -    -    -    -    -    -    -    -    -    (72,051)   (72,051)
(Loss) / profit for the period   -    -    -    -    -    -    -    (7,529,650)   -    -    (7,529,650)   345,774    (7,183,876)
Other comprehensive loss   -    -    -    -    -    -    -    -    (612,573)   -    (612,573)   (93,396)   (705,969)
03/31/2025   6,500    327,714,463    (255,893)   (780,841)   21,838,103    9,285,261    (32,214,878)   (17,156,979)   181,616    (160,702)   308,456,650    36,519,922    344,976,572 

 

The accompanying Notes are an integral part of these unaudited interim condensed consolidated financial statements. Related parties’ balances and transactions are disclosed in Note 15.

 

F-7

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine-month periods ended of March 31, 2025, and 2024

(Amounts in US$)

 

 

   Notes   03/31/2025   03/31/2024 
OPERATING ACTIVITIES            
(Loss)/ Profit for the period       (7,183,876)   8,337,346 
               
Adjustments to reconcile profit to net cash flows              
Income tax  7    (5,471,555)   7,806,595 
Financial results       23,875,879    19,193,389 
Depreciation of property, plant and equipment  5.6    4,495,318    3,923,274 
Amortization of intangible assets  5.7    8,889,514    8,235,478 
Depreciation of leased assets  14    3,888,743    2,526,174 
Transactional expenses       984,350    - 
Share-based incentive and stock options       3,353,145    11,481,363 
Share of profit or loss of joint ventures and associates  11    1,169,766    (4,467,103)
Provisions for contingencies       209,228    362,248 
Allowance for impairment of trade debtors       1,849,836    463,688 
Allowance for obsolescence       1,112,743    335,763 
Initial recognition and changes in the fair value of biological assets       (1,578,993)   (281,372)
Changes in the net realizable value of agricultural products after harvest       423,115    2,021,747 
Gain on sale of equipment and intangible assets       (7,694,896)   (87,599)
               
Working capital adjustments              
Trade receivables       7,508,407    (48,428,426)
Other receivables       282,729    (2,721,910)
Income and minimum presumed income taxes       (7,316,783)   4,623,067 
Inventories and biological assets       32,839,986    7,577,552 
Trade and other payables       (42,277,274)   16,662,579 
Employee benefits and social security       (362,311)   (1,791,169)
Deferred revenue and advances from customers       (549,338)   (18,613,875)
Interest collected       4,592,116    1,408,277 
Inflation effects on working capital adjustments       97,797    (107,285)
Net cash flows generated by operating activities       23,137,646    18,459,801 

 

The accompanying Notes are an integral part of these unaudited interim condensed consolidated financial statements. Related parties’ balances and transactions are disclosed in Note 15.

 

F-8

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the nine-month periods ended of March 31, 2025, and 2024

(Amounts in US$)

 

   Notes   03/31/2025   03/31/2024 
INVESTMENT ACTIVITIES            
Proceeds from sale of property, plant and equipment       170,802    167,868 
Proceeds from financial assets       14,740,468    - 
Investment in financial assets       (10,099,929)   (11,873,696)
Purchase of property, plant and equipment  5.6    (5,211,492)   (7,773,443)
Capitalized development expenditures  5.7    (6,902,069)   (7,867,528)
Purchase of intangible assets  5.7    (312,974)   (1,086,398)
Net cash flows used by investing activities       (7,615,194)   (28,433,197)
               
FINANCING ACTIVITIES              
Proceeds from borrowings       140,058,194    139,750,796 
Repayment of borrowings and financed payments       (140,753,656)   (131,671,711)
Interest payments       (16,709,014)   (16,806,711)
Other financial payments       (2,199,702)   (1,800,597)
Purchase of own shares       (926,899)   (734,388)
Leased assets payments  14    (4,392,517)   (3,939,771)
Cash dividend distributed by subsidiary       (72,051)   (174,800)
Net cash flows used by financing activities       (24,995,645)   (15,377,182)
               
Net decrease in cash and cash equivalents       (9,473,193)   (25,350,578)
               
Inflation effects on cash and cash equivalents       2,325    (23,071)
               
Cash and cash equivalents as of beginning of the period  5.1    44,473,270    48,129,194 
Effect of exchange rate changes on cash and equivalents       3,454,587    (6,394,346)
Cash and cash equivalents as of the end of the period  5.1    38,456,989    16,361,199 

 

The accompanying Notes are an integral part of these unaudited interim condensed consolidated financial statements. Related parties’ balances and transactions are disclosed in Note 15.

 

F-9

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Index

 

1. General information. F-11
2. Accounting standards and basis of preparation. F-11
3. New standards, amendments and interpretations issued by the IASB. F-12
4. Acquisitions and other significant transactions. F-13
5. Information about components of unaudited interim condensed consolidated statement of financial position. F-14
6. Information about components of unaudited interim condensed consolidated statement of comprehensive income. F-21
7. Taxation. F-25
8. Earnings per share. F-27
9. Equity information. F-28
10. Cash flow information. F-28
11. Joint ventures and associates. F-28
12. Segment information. F-29
13. Financial instruments – Risk management. F-31
14. Leases. F-33
15. Shareholders and other related parties’ balances and transactions. F-34
16. Key management personnel compensation. F-35
17. Contingencies, commitments and restrictions on the distribution of profits. F-35
18. Events occurring after the reporting period. F-35

 

F-10

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

1. GENERAL INFORMATION

 

Bioceres Crop Solutions Corp. (NASDAQ:BIOX) is a leader in the development and commercialization of productivity solutions designed to regenerate agricultural ecosystems while making crops more resilient to climate change. To do this, Bioceres’ products create economic incentives for farmers and other stakeholders to adopt environmentally friendly production practices. Bioceres has a unique biotech platform with high impact, patented technologies for seeds and microbial ag inputs, as well as next generation crop nutrition and protection solutions.

 

Bioceres is a global company with an extensive geographic footprint. The Group’s agricultural inputs are marketed across more than 45 countries, primarily in South America, the United States and Europe.

 

Unless the context otherwise requires, “we”, “us”, “our”, “Bioceres”, “BIOX”, “the Group”, and “Bioceres Crop Solutions” will refer to Bioceres Crop Solutions Corp. and its subsidiaries.

 

2. ACCOUNTING STANDARDS AND BASIS OF PREPARATION

 

Statement of compliance with IFRS as issued by IASB

 

These unaudited interim condensed consolidated financial statements for the three- and nine-month period ended March 31, 2025, have been prepared in accordance with Accounting Standard IAS 34 Interim Financial Reporting.

 

These unaudited interim condensed consolidated financial statements do not include all notes of the type normally included in an annual financial statement. Accordingly, these unaudited interim condensed consolidated financial statements are to be read in conjunction with the consolidated financial statements for the fiscal year ended June 30, 2024.

 

Authorization for the issue of the consolidated financial statements

 

These unaudited interim condensed consolidated financial statements of the Group as of March 31, 2025, and June 30, 2024 and for the three- and nine-month periods ended March 31, 2025 and 2024 were authorized by the Board of Directors of Bioceres Crop Solutions Corp. on June 20, 2025.

 

Basis of measurement

 

The consolidated financial statements of the Group have been prepared using:

 

Going concern basis of accounting, considering the conclusion of the assessment made by the Groups Management about the ability of the Group and its subsidiaries to continue as a going concern, in accordance with the requirements of paragraph 25 of IAS 1, “Presentation of Financial Statements”.

 

Accrual basis of accounting (except for cash flows information). Under this basis of accounting, the effects of transactions and other events are recognized as they occur, even when there are no cash flows.

 

F-11

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Functional currency and presentation currency

 

a) Functional currency

 

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic market in which the entity operates (i.e., “the functional currency”).

 

b) Presentation currency

 

The consolidated financial statements of the Group are presented in US dollars.

 

c) Foreign currency

 

Transactions entered into by Group entities in a currency other than their functional currency are recorded at the relevant exchange rates as of the date upon which such transactions occur. Foreign currency monetary assets and liabilities are translated at the prevailing exchanges rates as of the final day of each reporting period. Exchange differences arising from the retranslation of unsettled monetary assets and liabilities are recognized immediately in profit or loss, except for foreign currency borrowings qualifying as a hedge of a net investment in a foreign operation for which exchange differences are recognized in other comprehensive income and accumulated in the foreign exchange reserve along with the exchange differences arising from the retranslation of the foreign operation. Upon the disposal of a foreign operation, the cumulative exchange differences recognized in the foreign exchange reserve relating to such operation up to the date of disposal are transferred to the consolidated statement of profit or loss and other comprehensive income as part of the gain or loss recognized upon such disposal.

 

Changes in accounting policies

 

The accounting policies adopted in the preparation of these unaudited interim condensed consolidated financial statements are consistent with those adopted for the preparation of the consolidated financial statements as of June 30, 2024.

 

3. NEW STANDARDS, AMENDMENTS AND INTERPRETATIONS ISSUED BY THE IASB

 

a) The following new standards, amendments and interpretations became applicable for the current reporting period and adopted by the Group.

 

-Amendments to IFRS 16 - Lease Liability in a Sale and Leaseback.
-Amendments to IAS1 - Non-current liabilities with covenants.
-Amendments to IAS 7- Statement of Cash Flows & to IFRS 7- Financial Instruments: Disclosures.
-Amendment to IAS 7 and IFRS 7 - Supplier Financing.

 

These new standards and amendments did not have any material impact on the Group.

 

b) The following new standards are not yet adopted by the Group.

 

-Amendments to IAS 21- The Effects of Changes in Foreign Exchange Ratestitled Lack of Exchangeability. The amendments are effective for annual reporting periods beginning on or after 1 January 2025.
-Amendment to IFRS 9 and IFRS 7 – Classification and measurement of financial instruments. The amendments are effective for annual periods beginning on or after January 1, 2026.
-IFRS 19 - Subsidiaries without Public Accountability: Disclosures- The amendments are effective for annual periods beginning on or after January 1, 2027.
-Annual Improvements to IFRS Accounting Standards—Volume 11. The amendments are effective for annual periods beginning on or after January 1, 2026.
-Amendments to IFRS 9 and IFRS 7 – Contracts Referencing Nature-dependent Electricity. The amendments are effective for annual periods beginning on or after January 1, 2026.

 

F-12

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

The above amendments are not expected to have material impact on the Group.

 

-IFRS 18 – Presentation and Disclosure in Financial Statements. This standard sets out requirements for the presentation and disclosure of information in general purpose financial statements to help ensure they provide relevant information that faithfully represents an entity’s assets, liabilities, equity, income and expenses. It is effective for annual periods beginning on or after January 1, 2027.

 

The Group is analyzing the potential impact of this standard on our financial statements.

 

4. ACQUISITIONS AND OTHER SIGNIFICANT TRANSACTIONS

 

Natal Agro S.R.L.

 

On June 10, 2024, we acquired a controlling interest in Natal Agro S.R.L (“Natal”), an Argentine company that breeds and develops corn varieties. The interest acquired is represented by a total of 116,225 shares of AR$ 10 nominal value each, representing 51% of equity and voting interest.

 

The consideration for the acquisition was $0.22 million in cash and the commitment to carrying out, at our own expense, the regulatory activities for HB4 corn to obtain authorization for its commercialization in Argentina, and the regulatory activities for HB4 corn in Brazil, once the commercialization strategy of HB4 corn in Brazil has been defined by the Company.

 

Fair value of the consideration of payment

 

Cash payment   215,415 
Regulatory activities   727,985 
Total consideration   943,400 

 

The consideration of payment was measured at fair value, which was calculated as the sum of cash paid and the acquisition-date fair values of the regulatory services to be provided. The fair values measured were based on discounting future cash flow using market discount rates. The difference between fair value and nominal value of consideration will be recognized as finance cost over the period the consideration will be paid.

 

Assets acquired, liabilities assumed, and non-controlling interest recognized

 

Cash and cash equivalents   252,923 
Other financial assets   73,950 
Trade receivables   596,463 
Other receivables   288,861 
Income and minimum presumed recoverable income taxes   19,998 
Inventories   4,031,412 
Property, plant and equipment   816,576 
Intangible assets   2,217,985 
Right of use asset   168,988 
Trade and other payables   (2,302,332)
Borrowings   (743,279)
Employee benefits and social security   (23,346)
Deferred revenue and advances from customers   (2,515)
Provisions   (355,898)
Lease liabilities   (168,988)
Deferred tax liabilities   (996,824)
Total net assets identified   3,873,974 
      
Non-controlling interest   (1,898,247)
      
Gain from a bargain purchase   (1,032,327)
      
Total consideration   943,400 

 

F-13

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

The business combination was executed in a context of financial setbacks faced by the acquired company. To address these, in addition to the initial cash payment, Bioceres has committed to providing a working capital loan of up to $3 million to help alleviate the financial strain.

 

Bioceres will also provide regulatory services related to its proprietary technologies, which will enable strategic business development for Natal and create a new product pipeline leveraging Bioceres’ technology. Specifically, Bioceres has agreed to grant Natal an exclusive license for certain technologies to be applied to corn, with Natal committing to pay 15% of the revenues generated from this technology.

 

Since the issuance of the annual financial statements for the period ending June 30, 2024, we have revisited the fair value of the services we committed to providing in exchange for payment and have made progress in identifying and valuing specific intangible assets.

 

As required by the standards, measurement period adjustments are incorporated into the business combination accounting. The effect of the adjustment corresponds to the identification of an intangible asset for an amount of $0.8 million (net of deferred income tax liability and non-controlling interest of $0.5 million and $0.8 million, respectively) and a change in the fair value of the consideration by $0.4 million, generating a bargain purchase gain of $1.0 million as opposed to the $0.2 million goodwill recognized as of June 30, 2024. Comparative prior period information in the financial statements has been updated to reflect these adjustments, as if the business combination had been fully accounted for on the acquisition date.

 

Non-controlling interest was measured at the present ownership instruments’ proportionate share in the recognized amounts of the acquiree’s identifiable net assets.

 

5. INFORMATION ABOUT COMPONENTS OF CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

5.1. Cash and cash equivalents

 

   03/31/2025   06/30/2024 
         
Cash at bank and on hand   38,456,989    44,473,270 
    38,456,989    44,473,270 

 

5.2. Other financial assets

 

   03/31/2025   06/30/2024 
Current        
US Treasury bills   -    1,993,668 
Mutual funds   -    6,658,805 
Shares of Moolec Science S.A.   779,100    1,530,375 
Other investments   110,293    1,512,680 
    889,393    11,695,528 

 

F-14

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

   03/31/2025   06/30/2024 
Non-current        
Shares of Bioceres Group PLC.   444,413    444,473 
Other investments   117    190,080 
    444,530    634,553 

 

5.3. Trade receivables

 

   03/31/2025   06/30/2024 
Current        
Trade debtors   184,726,068    205,057,590 
Allowance for impairment of trade debtors   (8,695,786)   (7,050,280)
Shareholders and other related parties (Note 15)   248,776    141,224 
Allowance for credit notes to be issued   -    (2,905,624)
Trade debtors - Joint ventures and associates (Note 15)   4,179    782,142 
Deferred checks   11,225,804    11,295,922 
    187,509,041    207,320,974 

 

The book value is reasonably approximate to the fair value given its short-term nature.

 

5.4. Other receivables

 

   03/31/2025   06/30/2024 
Current        
Taxes   7,195,697    5,019,659 
Shareholders and other related parties (Note 15)   550,789    - 
Other receivables - Joint ventures and associates (Note 15)   322,051    207,449 
Prepayments to suppliers   6,497,954    10,242,075 
Prepaid expenses and other receivables   109,125    1,594,152 
Miscellaneous   1,459,605    1,235,337 
    16,135,221    18,298,672 
           
     03/31/2025      06/30/2024  
Non-current          
Taxes   563,343    752,045 
Other receivables - Joint ventures and associates (Note 15)   18,032,217    15,495,543 
Reimbursements over exports   1,093,919    1,461,038 
Loans receivables   230,000    230,000 
Miscellaneous   7,526    18,495 
    19,927,005    17,957,121 

 

In September 2024, we entered into a note purchase agreement (the “Note Purchase Agreement”) and a HB4 soy supply agreement (the “HB4 Soy Supply Agreement”) with one of our associates, Moolec Science SA (“Moolec”). In June 2024, under the terms of the HB4 Soy Supply Agreement, we supplied to Moolec an amount of HB4 soy equivalent to $6.6 million. In exchange, Moolec Science issued convertible notes to us in an aggregate principal amount of $6.6 million (the “Moolec Convertible Notes”).

 

F-15

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

The Moolec Convertible Notes will mature 36 months after and include a “payment-in-kind” feature. If the trading price of Moolec’s ordinary shares exceeds the strike price of $6.00 per ordinary share for 10 trading days, we have the option to exercise the early conversion option pursuant to which the principal amount outstanding under the Moolec Convertible Notes may be converted into ordinary shares of Moolec at the strike price. At maturity, Moolec has the option to convert the principal amount outstanding under the Moolec Convertible Notes into ordinary shares. In connection with our early conversion option and Moolec’s optional conversion at maturity, Moolec may deliver ordinary shares, cash, or a combination of cash and ordinary shares.

 

5.5. Inventories

 

   03/31/2025   06/30/2024 
         
Seeds   10,212,302    5,967,231 
Resale products   42,023,289    53,788,333 
Manufactured products   18,980,865    26,081,250 
Goods in transit   2,372,095    5,618,540 
Supplies   16,187,828    22,546,093 
Agricultural products   5,004,599    15,015,884 
Allowance for obsolescence   (2,761,329)   (3,087,563)
    92,019,649    125,929,768 
           
Net of agricultural products   87,015,050    110,913,884 

 

5.6. Property, plant and equipment

 

Property, plant and equipment as of March 31, 2025 and 2024 included the following:

 

Class  Net carrying
amount
06/30/2024
   Additions   Transfers   Disposals   Depreciation
of the period
   Foreign
currency
translation
   Net carrying
amount
03/31/2025
 
Office equipment   410,338    18,636    -    -    (59,886)   (4,125)   364,963 
Vehicles   2,200,349    70,085    -    (8,276)   (665,031)   (3,470)   1,593,657 
Equipment and computer software   507,469    62,231    -    -    (191,373)   3,579    381,906 
Fixtures and fittings   2,786,470    9,083    -    -    (617,240)   4,256    2,182,569 
Machinery and equipment   16,710,328    551,031    136,734    (1,649)   (2,200,283)   (101,283)   15,094,878 
Land and buildings   39,677,902    -    46,430    -    (761,505)   (69,309)   38,893,518 
Buildings in progress   12,280,422    4,744,861    (183,164)   -    -    (9,341)   16,832,778 
Total   74,573,278    5,455,927    -    (9,925)   (4,495,318)   (179,693)   75,344,269 

 

F-16

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Class  Net carrying
amount
06/30/2023
   Additions   Disposals   Depreciation
of the period
   Foreign
currency
translation
   Net carrying
amount
03/31/2024
 
Office equipment   263,892    56,301    -    (51,251)   (1,462)   267,480 
Vehicles   2,032,853    588,368    (9,013)   (635,040)   12,805    1,989,973 
Equipment and computer software   174,399    152,174    -    (152,719)   (2,180)   171,674 
Fixtures and fittings   2,862,949    11,085    -    (592,248)   (2,228)   2,279,558 
Machinery and equipment   14,463,756    572,889    (71,256)   (1,789,498)   (68,933)   13,106,958 
Land and buildings   36,144,792    3,228,807    -    (702,518)   2,060    38,673,141 
Buildings in progress   11,911,194    6,367,797    -    -    (204,184)   18,074,807 
Total   67,853,835    10,977,421    (80,269)   (3,923,274)   (264,122)   74,563,591 

 

The depreciation charge is included in Notes 6.3 and 6.4. The Group has no commitments to purchase property, plant and equipment items.

 

5.7. Intangible assets

 

Intangible assets as of March 31, 2025 and 2024 included the following:

 

Class  Net carrying amount 06/30/2024   Additions   Transfers   Amortization of the period   Foreign currency translation   Net carrying amount 03/31/2025 
Seed and integrated products                        
HB4 technology and breeding program   35,574,371    3,009,617    -    (1,566,261)   -    37,017,727 
Integrated seed products   2,681,826    -    -    (147,900)   78,973    2,612,899 
Crop nutrition                              
Microbiological products   41,187,249    -    -    (2,746,385)   (3,031)   38,437,833 
Microbiological products in progress   10,452,861    3,892,452    -    -    -    14,345,313 
Other intangible assets                              
Trademarks and patents   47,906,064    152,802    -    (3,061,504)   -    44,997,362 
Trademarks and patents with indefinite useful lives   10,045,294    -    -    -    -    10,045,294 
Software   1,827,983    7,190    146,145    (340,820)   (103)   1,640,395 
Software in progress   580,728    152,982    (146,145)   -    -    587,565 
Customer loyalty   21,636,760    -    -    (1,026,644)   -    20,610,116 
RG/RS/OX Wheat in progress   5,000,000    6,528,899    -    -    -    11,528,899 
Total   176,893,136    13,743,942    -    (8,889,514)   75,839    181,823,403 

 

F-17

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Class  Net carrying amount 06/30/2023   Additions   Amortization of the period   Foreign currency translation   Net carrying amount 03/31/2024 
Seed and integrated products                    
HB4 technology and breeding program   31,679,681    3,409,547    (1,282,642)   -    33,806,586 
Integrated seed products   2,841,008    -    (139,914)   (42,748)   2,658,346 
Crop nutrition                         
Microbiological products   37,295,460    -    (2,238,036)   -    35,057,424 
Microbiological products in progress   12,213,341    4,457,981    -    -    16,671,322 
Other intangible assets                         
Trademarks and patents   51,933,444    36,249    (3,059,216)   -    48,910,477 
Trademarks and patents with indefinite useful lives   7,827,309    -    -    -    7,827,309 
Software   1,638,519    491,707    (488,422)   (5,781)   1,636,023 
Software in progress   349,171    558,442    -    -    907,613 
Customer loyalty   23,006,023    -    (1,027,248)   -    21,978,775 
RG/RS/OX Wheat in progress   5,000,000    -    -    -    5,000,000 
Total   173,783,956    8,953,926    (8,235,478)   (48,529)   174,453,875 

 

5.8. Trade and other payables

 

   03/31/2025   06/30/2024 
         
Trade creditors   86,775,650    108,307,192 
Shareholders and other related parties (Note 15)   269,498    37,985 
Trade creditors - Parent company (Note 15)   818,754    729,171 
Trade creditors - Joint ventures and associates (Note 15)   36,008,045    52,888,732 
Taxes   3,640,496    5,647,550 
Miscellaneous   1,087,799    1,121,839 
    128,600,242    168,732,469 

 

5.9. Borrowings

 

   03/31/2025   06/30/2024 
Current        
Bank borrowings   86,419,392    91,816,134 
Corporate bonds   8,518,783    42,035,925 
Trust debt securities   705,358    2,895,139 
    95,643,533    136,747,198 
Non-current          
Bank borrowings   33,012,724    15,316,612 
Corporate bonds   42,680,437    25,071,823 
Trust debt securities   -    1,716,447 
    75,693,161    42,104,882 

 

F-18

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

In November 2024, we completed a $25.9 million public offering of Series X corporate bonds in the Argentine market. The bonds were issued in two tranches: Class A: Approximately $2.4 million 7.0% p.a. bonds due November 2026; and Class B: Approximately $23.5 million 8.0% p.a. bonds due November 2027.

 

In this regard, the Group has a pre-approved financing program authorized by the Argentine National Securities Commission (Comisión Nacional de Valores – CNV), which allows for the issuance of public corporate bonds for up to $200 million. As of March 31, 2025, the Group had utilized $51 million under this program, with $149 million remaining available for future use. The facility remains fully discretionary and may be utilized as needed by the Group.

 

In January 2025, we completed a $20 million financing agreement with Coöperatieve Rabobank U.A. The capital will be repaid in seven semi-annual installments between June 15, 2026, and June 15, 2029. The annual interest rate is Term SOFR plus a margin ranging from 5.15% to 6.15%, with interest payable semi-annually at the end of each interest period. Our subsidiary, Rizobacter Argentina S.A., must annually comply with specific financial covenants outlined in the agreement.

 

The carrying value of some borrowings as of March 31, 2025 are measured at amortized cost differ from their fair value. The following fair values measured are based on discounted cash flows (Level 3) due to the use of unobservable inputs, including own credit risk.

 

   03/31/2025   06/30/2024 
   Amortized cost   Fair value   Amortized cost   Fair value 
Current                
Bank borrowings   86,419,392    83,980,058    91,816,134    89,874,010 
Corporate Bonds   8,518,783    8,030,530    42,035,925    41,492,963 
                     
Non-current                    
Bank borrowings   33,012,724    28,345,049    15,316,612    14,850,783 
Corporate Bonds   42,680,437    39,190,945    25,071,823    23,845,583 

 

5.10. Secured Notes

 

Secured Guaranteed Notes

 

The Secured Guaranteed Notes due 2026 matured 48 months after the issue date and bore interest at 9.0% from the issue date through 24 months after the issue date, 13.0% from 25 through 36 months after the issue date and 14.0% from 37 through 48 months after the issue date. Interest was payable semi-annually. The Secured Guaranteed Notes due 2026 did not have any conversion rights into our ordinary shares.

 

Secured Convertible Guaranteed Notes

 

The Secured Guaranteed Convertible Notes were issued for a total principal amount of $55 million. The notes had a 4- year maturity and accrued interest at an annual interest rate of 9%, of which 5% was payable in cash and 4% in-kind. At any time up to maturity the note holders could opt to convert the outstanding principal amount into common share of Bioceres at a strike price of $18 per share. The Company had the option to repurchase the notes voluntarily 30 months after the issue date.

 

Both Secure Notes are subject to identical financial covenants. As of March 31, 2025, we were required to maintain a maximum Consolidated Total Net Leverage Ratio of 3.75x and a minimum Interest Coverage Ratio of 2.00x, tested on a quarterly basis.

 

F-19

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

During the current period, we experienced a temporary setback due to challenges in the Argentine market—most notably, the deterioration in farmer economics driven by declining commodity prices and weak yield forecasts. These external pressures significantly impacted per-hectare income for Argentine farmers, leading to reduced investment in key inputs such as fertilizers and crop protection products.

 

This reduction in demand, combined with a well-supplied ag-input market resulting from aggressive purchasing in prior years, has led to increased price pressure and lower adoption of high-value technologies like ours. However, we are encouraged that we maintained our market share in key product families, despite the overall Argentine market contraction.

 

As a result of these temporary conditions, our performance metrics were constrained, leading us to exceed the leverage ratio threshold outlined in the Secured Notes. Since, as of March 31, 2025, we were unable to demonstrate an unconditional right to defer settlement of the liability for at least twelve months, we reclassified it as a current liability for this reporting period. However, on June 18, 2025, we reached an agreement with the noteholders to amend both secured notes, introducing revised financial covenants. Under the amended terms, we are now required to maintain a maximum Consolidated Total Net Leverage Ratio of 5.00x and a minimum Interest Coverage Ratio of 1.50x as of March 31 and June 30, 2025—placing us in full compliance with the updated financial requirements. See Note 18.

 

5.11. Employee benefits and social security

 

   03/31/2025   06/30/2024 
         
Salaries, accrued incentives, vacations and social security   7,350,959    7,192,492 
Key management personnel (Note 15)   480,943    148,466 
    7,831,902    7,340,958 

 

5.12. Deferred revenue and advances from customers

 

   03/31/2025   06/30/2024 
Current        
Advances from customers   3,862,028    3,335,740 
Deferred revenue   -    587,400 
    3,862,028    3,923,140 
Non-current          
Advances from customers   -    52,511 
Deferred revenue   1,436,912    1,872,627 
    1,436,912    1,925,138 

 

F-20

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

6. INFORMATION ABOUT COMPONENTS OF CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

6.1. Revenue from contracts with customers

 

   Three-month
period ended
   Nine-month
period ended
 
   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
                 
Sale of goods and services   59,152,948    68,189,956    257,590,381    324,017,247 
Royalties   443,102    189,175    1,385,858    838,516 
Right of use licenses   -    15,659,630    -    15,659,630 
    59,596,050    84,038,761    258,976,239    340,515,393 

 

Transactions of sales of goods and services with joint ventures and with shareholders and other related parties are reported in Note 15.

 

6.2. Cost of sales

   Three-month
period ended
   Nine-month
period ended
 
Item  03/31/2025   03/31/2024   03/31/2025   03/31/2024 
Inventories as of the beginning of the period   92,225,654    109,616,865    110,913,884    111,990,145 
Purchases of the period   24,204,058    42,105,886    111,766,055    186,878,728 
Production costs   6,617,198    5,709,030    18,460,676    18,690,702 
Foreign currency translation   707,109    (413,314)   (40,144)   (214,790)
Subtotal   123,754,019    157,018,467    241,100,471    317,344,785 
Inventories as of the end of the period (*)   (87,015,050)   (115,680,731)   (87,015,050)   (115,680,731)
Cost of sales   36,738,969    41,337,736    154,085,421    201,664,054 

 

(*)Net of agricultural products.

 

F-21

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

6.3. R&D classified by nature

 

   Three-month period ended   Nine-month period ended 
Item  Research and
development
expenses
03/31/2025
   Research and
development
expenses
03/31/2024
   Research and
development
expenses
03/31/2025
   Research and
development
expenses
03/31/2024
 
Amortization of intangible assets   1,561,329    1,216,712    4,310,213    3,669,870 
Analysis and storage   -    -    -    5,302 
Commissions and royalties   -    -    3,960    - 
Depreciation of property, plant and equipment   84,874    154,000    505,406    466,453 
Freight and haulage   2,693    9,646    13,174    23,924 
Employee benefits and social securities   645,210    1,635,391    3,624,237    3,847,298 
Maintenance   119,868    124,172    267,568    220,228 
Energy and fuel   -    3,110    4,352    8,337 
Supplies and materials   609,797    235,982    1,385,609    1,418,048 
Mobility and travel   10,172    68,087    118,837    157,561 
Share-based incentives   15,784    251,248    106,881    394,997 
Professional fees and outsourced services   511,001    (145,481)   1,551,122    848,716 
Professional fees related parties   7,175    (53,784)   23,548    163,008 
Office supplies   52,015    57,580    227,441    527,956 
Information technology expenses   13,498    17,076    34,275    26,716 
Insurance   12,727    16,104    36,221    35,690 
Depreciation of leased assets   13,152    -    50,404    - 
Miscellaneous   452    258    614    315 
Total   3,659,747    3,590,101    12,263,862    11,814,419 

 

   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
R&D capitalized (Note 5.7)   1,879,280    3,412,635    6,902,069    7,867,528 
R&D profit and loss   3,659,747    3,590,101    12,263,862    11,814,419 
Total   5,539,027    7,002,736    19,165,931    19,681,947 

 

F-22

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

6.4. Expenses classified by nature and function

 

   Three-month period ended   Nine-month period ended 
Item  Production
costs
   Selling,
general and
administrative
expenses
   Total
03/31/2025
   Production
costs
   Selling,
general and
administrative
expenses
   Total
03/31/2025
 
Amortization of intangible assets   56,143    1,327,796    1,383,939    212,267    4,367,034    4,579,301 
Analysis and storage   -    3,613    3,613    -    86,768    86,768 
Commissions and royalties   162,739    155,302    318,041    723,110    1,240,907    1,964,017 
Import and export expenses   -    149,987    149,987    -    805,165    805,165 
Depreciation of property, plant and equipment   759,452    615,808    1,375,260    2,138,289    1,851,623    3,989,912 
Depreciation of leased assets   1,014,262    641,381    1,655,643    1,762,674    2,075,665    3,838,339 
Impairment of receivables   -    (130,890)   (130,890)   -    1,849,836    1,849,836 
Freight and haulage   (706,534)   3,174,488    2,467,954    508,818    8,495,641    9,004,459 
Employee benefits and social securities   2,979,173    10,320,519    13,299,692    7,250,051    32,116,790    39,366,841 
Maintenance   990,788    803,908    1,794,696    1,881,863    2,169,739    4,051,602 
Energy and fuel   133,160    33,169    166,329    427,261    75,324    502,585 
Supplies and materials   144,789    331,067    475,856    494,511    1,841,654    2,336,165 
Mobility and travel   30,675    809,528    840,203    99,046    2,968,604    3,067,650 
Publicity and advertising   -    964,840    964,840    -    3,198,268    3,198,268 
Contingencies   6,953    26,788    33,741    62,474    146,754    209,228 
Share-based incentives   45,572    953,383    998,955    309,832    2,936,432    3,246,264 
Professional fees and outsourced services   224,674    2,601,966    2,826,640    1,118,694    6,965,171    8,083,865 
Professional fees related parties   -    10,499    10,499    -    281,178    281,178 
Office supplies and registrations fees   33,382    55,826    89,208    85,247    618,878    704,125 
Insurance   32,525    729,922    762,447    147,087    2,160,893    2,307,980 
Information technology expenses   10,939    635,373    646,312    23,536    2,305,305    2,328,841 
Obsolescence   634,987    -    634,987    1,036,799    75,944    1,112,743 
Taxes   43,223    1,726,377    1,769,600    145,883    10,236,359    10,382,242 
Miscellaneous   20,296    212,509    232,805    33,234    608,431    641,665 
Total   6,617,198    26,153,159    32,770,357    18,460,676    89,478,363    107,939,039 

 

F-23

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

   Three-month period ended   Nine-month period ended 
Item  Production
costs
   Selling,
general and
administrative
expenses
   Total
03/31/2024
   Production
costs
   Selling,
general and
administrative
expenses
   Total
03/31/2024
 
Amortization of intangible assets   50,341    1,493,454    1,543,795    111,190    4,454,418    4,565,608 
Analysis and storage   -    3,239    3,239    570    156,402    156,972 
Commissions and royalties   (2,588)   334,560    331,972    419,089    1,342,811    1,761,900 
Import and export expenses   12,887    184,109    196,996    56,789    502,588    559,377 
Depreciation of property, plant and equipment   705,657    507,195    1,212,852    2,014,248    1,442,573    3,456,821 
Depreciation of leased assets   304,822    510,096    814,918    1,003,866    1,522,308    2,526,174 
Impairment of receivables   -    167,637    167,637    -    463,688    463,688 
Freight and haulage   372,691    2,448,482    2,821,173    1,006,879    9,326,846    10,333,725 
Employee benefits and social securities   2,121,995    7,928,190    10,050,185    8,057,497    29,437,292    37,494,789 
Maintenance   558,214    513,129    1,071,343    1,565,609    1,665,461    3,231,070 
Energy and fuel   170,718    90,477    261,195    671,376    363,024    1,034,400 
Supplies and materials   346,960    707,442    1,054,402    714,346    2,398,596    3,112,942 
Mobility and travel   32,083    1,067,945    1,100,028    126,559    3,216,650    3,343,209 
Publicity and advertising   435    1,129,157    1,129,592    1,735    3,434,408    3,436,143 
Contingencies   42,359    270,799    313,158    43,598    318,650    362,248 
Share-based incentives   105,249    2,597,652    2,702,901    445,153    10,641,213    11,086,366 
Professional fees and outsourced services   532,085    2,715,149    3,247,234    1,496,057    6,257,187    7,753,244 
Professional fees related parties   -    67,748    67,748    -    134,366    134,366 
Office supplies and registrations fees   59,747    275,634    335,381    139,983    927,625    1,067,608 
Insurance   77,044    500,341    577,385    158,218    1,602,483    1,760,701 
Information technology expenses   3,989    896,757    900,746    31,175    2,821,390    2,852,565 
Obsolescence   52,927    -    52,927    335,763    -    335,763 
Taxes   160,527    2,592,307    2,752,834    288,287    9,611,667    9,899,954 
Miscellaneous   888    87,742    88,630    2,715    145,380    148,095 
Total   5,709,030    27,089,241    32,798,271    18,690,702    92,187,026    110,877,728 

 

F-24

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

6.5. Other income or expenses, net

 

   Three-month period ended   Nine-month period ended 
   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
                 
Net result from commercialization of agricultural products   (81,282)   241,372    (1,114,996)   (2,718,633)
Expenses recovery   131,014    83,737    636,733    319,843 
Result of intangible sales   7,694,896    -    7,694,896    - 
Others   315,275    (166,163)   869,110    159,498 
    8,059,903    158,946    8,085,743    (2,239,292)

 

On March 28, 2025, we agree to transfer all rights, licenses, and materials containing or pertaining to the Soy ANF trait and pay $750,000 to a Arcadia Biosciences Inc in exchange for (i) RG and OX Wheat Patents and RS exclusive rights; (ii) the cancellation of all Royalty Payments, which included 25% of the Net Wheat Technology Licensing Revenues and 6% of the Net HB4 Soybean Revenues up to $10 million; and (iii) the release from any Performance Benchmark Obligations related to the RG, OX, and RS Varieties which amounted to $8.1 million. This transaction resulted in the accounting of a gain from the exchange of intangible assets amounting to $7.5 million.

 

6.6. Finance results

 

   Three-month period ended   Nine-month period ended 
   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
Financial costs                
Interest expenses with the Parent (Note 15)   -    (61,691)   -    (255,816)
Interest expenses   (6,156,351)   (6,661,877)   (18,500,586)   (16,656,789)
Financial commissions   49,696    (511,784)   (2,199,702)   (1,800,597)
    (6,106,655)   (7,235,352)   (20,700,288)   (18,713,202)
Other financial results                    
Exchange differences generated by assets   (4,740,534)   (5,318,937)   (7,037,588)   (17,368,288)
Exchange differences generated by liabilities   4,498,458    4,133,443    4,755,094    25,808,288 
Changes in fair value of financial assets or liabilities and other financial results   (321,496)   3,799,295    (1,080,142)   (9,928,530)
Net gain of inflation effect on monetary items   139,899    242,208    187,045    1,008,343 
    (423,673)   2,856,009    (3,175,591)   (480,187)

 

7. TAXATION

 

Taxes on income in the interim periods are accrued using the tax rate that would be applicable to expected total annual earnings.

 

   Three-month period ended   Nine-month period ended 
   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
Current tax expense   7,949    (3,171,273)   (4,855,387)   (7,016,611)
Deferred tax   3,998,105    4,127,105    10,326,942    (789,984)
    4,006,054    955,832    5,471,555    (7,806,595)

 

F-25

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

   03/31/2025   03/31/2024 
Beginning of the period deferred tax   (25,296,931)   (28,472,383)
Charge for the period   10,326,942    (789,984)
Conversion difference   (1,546,151)   (468,228)
Total net deferred tax   (16,516,140)   (29,730,595)

 

The tax on the Group’s profit before tax differs from the theoretical amount that would arise using the weighted average tax rate applicable to profits of the consolidated entities as follow:

 

   Three-month period ended   Nine-month period ended 
   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
Earning before income tax-rate   (5,597,118)   8,821,477    (12,655,431)   16,143,941 
Income tax expense by applying tax rate in force in the respective countries   3,328,864    1,313,433    5,711,207    (4,121,315)
Share of profit or loss of subsidiaries, joint ventures and associates   (323,076)   284,085    (338,839)   1,503,115 
Stock options charge   (62,218)   (768,706)   (196,064)   (2,257,743)
Non-deductible expenses   (625,447)   (280,942)   (1,567,793)   (397,162)
Tax inflation adjustment   1,258,094    1,262,484    2,758,917    8,722,532 
Result of inflation effect on monetary items and other finance results   429,837    (255,563)   (895,873)   (11,256,022)
Others   -    (598,959)   -    - 
Income tax expenses   4,006,054    955,832    5,471,555    (7,806,595)

 

The income tax expense was calculated by applying the tax rate in force in the respective countries, as follows.

 

   Nine-month period ended 
   March 31, 2025   March 31, 2024 
Tax jurisdiction  Earning
before
income tax-
rate
   Weight
average
applicable
tax rate
   Income tax   Earning
before
income tax-
rate
   Weight
average
applicable
tax rate
   Income tax 
Low or null taxation jurisdictions   13,000,792    0.0%   -    9,509,610    0.0%   - 
Profit-making entities   7,503,296    36.3%   (2,723,832)   31,083,400    34.0%   (10,583,572)
Loss-making entities   (33,159,519)   25.4%   8,435,039    (24,449,069)   26.4%   6,462,257 
    (12,655,431)        5,711,207    16,143,941         (4,121,315)

 

F-26

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

   Three-month period ended 
   March 31, 2025   March 31, 2024 
Tax jurisdiction  Earning
before
income tax-
rate
   Weight
average
applicable
tax rate
   Income tax   Earning
before
income tax-
rate
   Weight
average
applicable
tax rate
   Income tax 
Low or null taxation jurisdictions   6,305,436    0.0%   -    14,565,728    0.0%   - 
Profit-making entities   (2,880,223)   31.7%   913,894    4,270,143    36.9%   (1,575,778)
Loss-making entities   (9,022,331)   26.8%   2,414,970    (10,014,394)   28.9%   2,889,211 
    (5,597,118)        3,328,864    8,821,477         1,313,433 

 

8. EARNING PER SHARE

 

The numerators and denominators used in the calculation of basic EPS and diluted EPS are presented below:

 

   Three-month period ended   Nine-month period ended 
   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
Numerator                
Profit/ (Loss) for the period (basic EPS)   (1,303,923)   9,257,226    (7,529,650)   4,774,041 
Profit/ (Loss) for the period (diluted EPS)   (1,303,923)   9,257,226    (7,529,650)   4,774,041 
Denominator                    
Weighted average number of shares (basic EPS)   62,785,880    62,837,668    62,785,880    62,837,668 
Weighted average number of shares (diluted EPS)   62,785,880    66,761,225    62,785,880    66,761,225 
                     
Basic profit/ (loss) attributable to ordinary equity holders of the parent   (0.0208)   0.1473    (0.1199)   0.0760 
Diluted profit/ (loss) attributable to ordinary equity holders of the parent   (0.0208)   0.1387    (0.1199)   0.0715 

 

For the three- and nine-month period ended March 31, 2025, diluted EPS was the same as basic EPS, as the effect of potential ordinary shares would be antidilutive.

 

For the three- and nine-month period ended March 31, 2024, diluted earnings per share was calculated by adjusting the weighted average number of shares outstanding to assume conversion of all dilutive potential shares. The Group had two categories of dilutive potential shares, share-based incentives and the convertible notes.

 

The stock options were included in the diluted EPS calculation for the three- and nine-month period ended March 31, 2024, only for the tranches in which the average market price of ordinary shares during the periods was higher than the assumed proceeds per option.

 

Convertible notes outstanding were not included in the diluted EPS calculations for the three- and nine-month period ended March 31, 2024, because the interest (net of tax and other changes in income or expense) per ordinary share obtainable on conversion exceeds basic earnings per share.

 

F-27

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

9. EQUITY INFORMATION

 

Capital issued

 

As of March 31, 2025, we had (i) 100,000,000 ordinary shares ($0.0001 par value) authorized, (ii) 62,712,602 ordinary shares issued and outstanding, (iii) 1,000,000 preferred shares ($0.0001 par value) authorized, (iv) no preferred shares issued and outstanding, (v) 3,918,381 ordinary shares reserved for our equity compensation plans. Of the total issued shares, we have repurchased 2,402,692 shares of our own.

 

Holders of the ordinary shares are entitled to one vote for each ordinary share.

 

10. CASH FLOW INFORMATION

 

Significant non-cash transactions related to investing and financing activities are as follows:

 

   03/31/2025   03/31/2024 
Investment activities        
Exchange of intangible assets   6,528,899    - 
Investment in-kind in other related parties (Note 15)   3,857,077    2,115,109 
Capitalization of interest on buildings in progress   244,435    100,809 
Assignment of receivables with shareholders and other related parties   6,782,969    - 
Reclasification from Investment properties to property, plant and equipment   -    3,103,169 
Sale of Moolec Science S.A. equity investment (Note 11)   -    (900,000)
    17,413,380    4,419,087 

 

11. JOINT VENTURES AND ASSOCIATES

   03/31/2025   06/30/2024 
Assets        
Synertech Industrias S.A.   39,084,226    39,749,851 
Alfalfa Technologies S.R.L.   36,502    36,502 
    39,120,728    39,786,353 

 

   03/31/2025   06/30/2024 
Liabilities        
Trigall Genetics S.A.   800,596    296,455 
    800,596    296,455 

 

F-28

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Changes in joint ventures investments and affiliates:

 

   03/31/2025   03/31/2024 
As of the beginning of the period   39,489,898    38,673,987 
Share-based incentives   -    65,470 
Sale of equity investment - Moolec Science S.A.   -    (900,000)
Foreign currency translation   -    (239)
Share of profit or loss   (1,169,766)   4,467,103 
As of the end of the period   38,320,132    42,306,321 

 

Share of profit or loss of joint ventures and affiliates:

 

   Three-month period ended   Nine-month period ended 
   03/31/2025   03/31/2024   03/31/2025   03/31/2024 
Trigall Genetics S.A.   (51,327)   124,517    (504,141)   631,357 
Synertech Industrias S.A.   (892,276)   736,958    (665,625)   3,915,797 
Moolec Science S.A.   -    44,661    -    (80,051)
    (943,603)   906,136    (1,169,766)   4,467,103 

 

12. SEGMENT INFORMATION

 

The tables present information with respect to the Group´s reporting segments:

 

Nine-month period ended March 31, 2025  Seed and
integrated
products
   Crop
protection
   Crop
nutrition
   Consolidated 
                 
Revenues from contracts with customers                
Sale of goods and services   51,695,022    139,560,430    66,334,929    257,590,381 
Royalties   1,385,858    -    -    1,385,858 
Others                    
Initial recognition and changes in the fair value of biological assets at the point of harvest   1,578,993    -    -    1,578,993 
Total   54,659,873    139,560,430    66,334,929    260,555,232 
                     
Cost of sales   (35,533,975)   (87,700,053)   (30,851,393)   (154,085,421)
Gross profit per segment   19,125,898    51,860,377    35,483,536    106,469,811 
% Gross margin   35%   37%   53%   41%

 

F-29

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Nine-month period ended March 31, 2024  Seed and
integrated
products
   Crop
protection
   Crop
nutrition
   Consolidated 
                 
Revenues from contracts with customers                
Sale of goods and services   61,996,719    173,971,462    103,708,696    339,676,877 
Royalties   838,516    -    -    838,516 
Others                    
Initial recognition and changes in the fair value of biological assets at the point of harvest   281,372    -    -    281,372 
Total   63,116,607    173,971,462    103,708,696    340,796,765 
                     
Cost of sales   (42,331,794)   (110,242,995)   (49,089,265)   (201,664,054)
Gross profit per segment   20,784,813    63,728,467    54,619,431    139,132,711 
% Gross margin   33%   37%   53%   41%

 

Three-month period ended March 31, 2025  Seed and
integrated
products
   Crop
protection
   Crop
nutrition
   Consolidated 
                 
Revenues from contracts with customers                
Sale of goods and services   8,735,377    42,644,480    7,773,091    59,152,948 
Royalties   443,102    -    -    443,102 
Others                    
Initial recognition and changes in the fair value of biological assets at the point of harvest   990,940    -    -    990,940 
Total   10,169,419    42,644,480    7,773,091    60,586,990 
                     
Cost of sales   (7,665,599)   (25,979,914)   (3,093,456)   (36,738,969)
Gross profit per segment   2,503,820    16,664,566    4,679,635    23,848,021 
% Gross margin   25%   39%   60%   39%

 

F-30

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Three-month period ended March 31, 2024  Seed and
integrated
products
   Crop
protection
   Crop
nutrition
   Consolidated 
                 
Revenues from contracts with customers                
Sale of goods and services   8,219,261    46,941,996    28,688,329    83,849,586 
Royalties   189,175    -    -    189,175 
Others                    
Initial recognition and changes in the fair value of biological assets at the point of harvest   (56,756)   -    -    (56,756)
Total   8,351,680    46,941,996    28,688,329    83,982,005 
                     
Cost of sales   (6,115,506)   (28,993,799)   (6,228,431)   (41,337,736)
Gross profit per segment   2,236,174    17,948,197    22,459,898    42,644,269 
% Gross margin   27%   38%   78%   51%

 

13. FINANCIAL INSTRUMENTS – RISK MANAGEMENT

 

Financial instruments by category

 

The following tables show additional information required under IFRS 7 on the financial assets and liabilities recorded as of March 31, 2025, and June 30, 2024.

 

Financial assets by category

 

   Amortized cost   Mandatorily measured at fair
value through profit or loss
 
Financial asset  03/31/2025   06/30/2024   03/31/2025   06/30/2024 
Cash and cash equivalents   38,456,989    44,473,270    -    - 
Other financial assets   444,530    634,553    889,393    11,695,528 
Trade receivables   187,509,041    207,320,974    -    - 
Other receivables (*)   14,743,504    18,647,862    6,952,603    - 
Total   241,154,064    271,076,659    7,841,996    11,695,528 

 

(*)Advances expenses and tax balances are not included.

 

Financial liabilities by category

 

   Amortized cost   Mandatorily measured at fair
value through profit or loss
 
Financial liability  03/31/2025   06/30/2024   03/31/2025   06/30/2024 
Trade and other payables   125,418,572    156,742,677    3,181,670    11,989,792 
Borrowings   171,336,694    178,852,080    -    - 
Secured notes   85,430,719    80,809,686    -    - 
Lease liability   16,536,564    11,284,137    -    - 
Consideration for acquisition   1,163,653    4,202,401    1,110,544    2,724,114 
Total   399,886,202    431,890,981    4,292,214    14,713,906 

 

F-31

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Financial instruments measured at fair value

 

Measurement at fair value at 03/31/2025

  Level 1   Level 2   Level 3 
             
Financial assets at fair value            
Moolec Science S.A. shares   779,100           
Other investments   110,293    -         - 
Other receivables - Joint ventures and associates   -    6,952,603      
Financial liability at fair value               
Trade and other payables   -    3,181,670    - 
Consideration for acquisition   1,110,544    -    - 

 

Measurement at fair value at 06/30/2024  Level 1   Level 2   Level 3 
             
Financial assets at fair value            
Mutual funds   6,658,805    -         - 
US Treasury bills   1,993,668           
Moolec Science S.A. shares   1,530,375    -    - 
Other investments   1,512,680    -    - 
Financial liability at fair value               
Trade and other payables   -    11,989,792    - 
Consideration for acquisition   2,724,114    -    - 

 

Estimation of fair value

 

The fair value of marketable securities, mutual funds and US Treasury Bills is calculated using the market approach using quoted prices in active markets for identical assets. The quoted marked price used for financial assets held by the Group is the current bid price. These instruments are included in level 1.

 

The Group’s financial liabilities, which were not traded in an active market, were determined using valuation techniques that maximize the use of available market information, and thus rely as little as possible on specific estimates of the entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instruments are included in level 2.

 

If one or more of the significant inputs is not based on observable market data, the instruments are included in level 3.

 

The Group’s policy is to recognize transfers between different categories of the fair value hierarchy at the time they occur or when there are changes in the circumstances that cause the transfer. There were no transfers between levels of the fair value hierarchy. There were no changes in economic or business circumstances affecting fair value.

 

Financial instruments not measured at fair value

 

The financial instruments not measured at fair value include cash and cash equivalents, trade accounts receivable, other accounts receivable, trade payables and other debts, borrowings, financed payments and convertible notes.

 

The carrying value of financial instruments not measured at fair value does not differ significantly from their fair value, except for borrowings (Note 5.9).

 

Management estimates that the carrying value of the financial instruments measured at amortized cost approximates their fair value.

 

F-32

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

Currency risk

 

Foreign currency risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in foreign exchange rate. Currency on foreign exchange risk arises when the Group enters into transactions denominated in a currency other than its functional currency.

 

The table below sets forth our net exposure to currency risk as of March 31, 2025:

 

Net foreign currency position

  03/31/2025 
Amount expressed in US$   18,745,129 

 

Considering only this net currency exposure as of March 31, 2025 if an US Dollar revaluation or depreciation in relation to other foreign currencies with the remaining variables remaining constant, would have a positive or a negative impact on comprehensive income as a result of foreign exchange gains or losses. We estimate that a devaluation or an appreciation of the US Dollar other currencies of 10% during the period ended March 31, 2025 would have resulted in a net pre-tax loss or gain of approximately $1.9 million.

 

14. LEASES

 

Right-of-use leased asset  03/31/2025   06/30/2024 
Book value at the beginning of the period   20,979,597    21,163,192 
Additions of the period   9,336,282    2,585,223 
Additions from business combination   -    168,988 
Disposals   (363,617)   (1,284,975)
Exchange differences   (258,504)   (1,652,831)
Book value at the end of the period   29,693,758    20,979,597 

 

Depreciation  03/31/2025   06/30/2024 
Book value at the beginning of the period   9,377,845    7,226,617 
Depreciation of the period   3,888,743    3,418,956 
Disposals   (196,567)   (1,092,167)
Exchange differences   (44,733)   (175,561)
Accumulated depreciation at the end of the period   13,025,288    9,377,845 
Total   16,668,470    11,601,752 

 

Lease liability  03/31/2025   06/30/2024 
Book value at the beginning of the period   11,284,137    13,889,223 
Additions of the period   9,336,282    2,585,223 
Additions from business combination   -    168,988 
Interest expenses, exchange differences and inflation effects   308,662    (480,189)
Payments of the period   (4,392,517)   (4,879,108)
Total   16,536,564    11,284,137 
           
Lease Liabilities   03/31/2025    06/30/2024 
Non-current   10,896,775    8,161,359 
Current   5,639,789    3,122,778 
Total   16,536,564    11,284,137 

 

F-33

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

The incremental borrowing rate used was 3.81 % in US$ and 13.64 % in reais.

 

The recognized right-of-use assets relate to the following types of assets:

 

   03/31/2025   06/30/2024 
Machinery and equipment   3,655,741    3,655,741 
Vehicles   1,177,544    1,272,071 
Equipment and computer software   1,347,568    1,130,541 
Land and buildings   23,512,905    14,921,244 
    29,693,758    20,979,597 

 

15. SHAREHOLDERS AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS

 

During the period ended March 31, 2025, and 2024, the transactions between the Group and related parties, and the related balances owed by and to them, are as follows:

 

      Value of transactions for the
period ended
 
Party  Transaction type  03/31/2025   03/31/2024 
Joint ventures and associates  Sales and services   6,009,702    19,404,971 
Joint ventures and associates  Purchases of goods and services   (24,597,687)   (20,951,684)
Key management personnel  Salaries, social security benefits and other benefits   (2,459,820)   (4,425,476)
Key management personnel  Sales and services   6,048    - 
Key management personnel  Purchases of goods and services   821,959    - 
Shareholders and other related parties  Sales of goods and services   9,576,087    7,156,388 
Shareholders and other related parties  Purchases of goods and services   (2,216,581)   (1,401,698)
Shareholders and other related parties  In-kind contributions   3,857,077    2,115,109 
Parent company and related parties to Parent (Note 6.6)  Interest expenses   -    (255,816)
Total      (9,003,215)   1,641,794 

 

      Amounts receivable from
related parties
 
Party  Transaction type  03/31/2025   06/30/2024 
Shareholders and other related parties  Trade debtors   248,776    141,224 
Shareholders and other related parties  Other receivables   550,789    - 
Joint ventures and associates  Trade debtors   4,179    782,142 
Joint ventures and associates  Other receivables   18,354,268    15,702,992 
Total      19,158,012    16,626,358 

 

      Amounts payable to related
parties
 
Party  Transaction type  03/31/2025   06/30/2024 
Parent company and related parties to Parent  Trade creditors   (818,754)   (729,171)
Key management personnel  Salaries, social security benefits and other benefits   (480,943)   (148,466)
Shareholders and other related parties  Trade and other payables   (269,498)   (37,985)
Joint ventures and associates  Trade creditors   (36,008,045)   (52,888,732)
Total      (37,577,240)   (53,804,354)

 

F-34

 

 

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Amounts in US$, except otherwise indicated)

 

 

16. KEY MANAGEMENT PERSONNEL COMPENSATION

 

The compensation of directors and other members of key management personnel, including social contributions and other benefits, were as follows for the period ended March 31, 2025, and 2024.

 

   03/31/2025   03/31/2024 
Salaries, social security and other benefits   1,979,370    1,472,483 
Share-based incentives   480,450    2,952,993 
Total   2,459,820    4,425,476 

 

17. CONTINGENCIES, COMMITMENTS AND RESTRICTIONS ON THE DISTRIBUTION OF PROFITS

 

There were no other significant changes to the contingencies, commitments and restrictions on the distribution of profits from the disclosure made in the Consolidated financial statement as of June 30, 2024.

 

18. EVENTS OCCURRING AFTER THE REPORTING PERIOD.

 

On June 18, 2025, we enter into an amendment to the Secured Notes. The material changes to the economic terms of the Notes are as follows:

 

Secured Guaranteed Notes

 

The aggregate principal amount increases from $26,437,485 to $29,081,233, with an annual interest rate of 19%, of which 14% is payable in cash and 5% in kind. The Company is required to make scheduled amortization payments of $1,000,000 on the last business day of each calendar month and may only be repurchased in full. If the Company repurchases them on or before August 5, 2025, a 5% prepayment penalty applies; if repurchased after that date, the penalty increases to 10%.

 

Secured Convertible Guaranteed Notes

 

The aggregate principal amount increases from $61,652,927 to $67,868,227, and the maturity date is extended to August 31, 2027. The notes carry an annual interest rate of 15%, of which 5% is payable in cash and 10% in kind. Noteholders have the option to convert the outstanding principal amount of their Convertible Notes into common shares of the Company at a reduced strike price of $6 per share. However, except in the event of a Change of Control (as defined in the Convertible Note Purchase Agreement), conversion rights cannot be exercised before September 30, 2025. If the Company raises more than $10,000,000 in common equity, the strike price resets to the lesser of (1) the then-applicable strike price or (2) the price per share at which the new shares are issued (or the weighted average price per share, if issued at varying prices). The Company may repurchase the Convertible Notes voluntarily. If repurchased on or before August 31, 2025, a 5% prepayment penalty applies; if repurchased during September 2025, the penalty increases to 7%. For repurchases after October 1, 2025, the Company is required to pay the Equity Option Fee, as defined in the Convertible Note Purchase Agreement.

 

The Company’s financial covenants in both Secured Notes are being amended to reset the Consolidated Total Net Leverage Ratio and Interest Coverage Ratio to the following:

 

Consolidated Total Net Leverage Ratio

Fiscal Quarters ended March 31, 2025 and June 30, 2025: 5.00x

Fiscal Quarters ended September 30, 2025 and December 31, 2025: 4.33x

Fiscal Quarters ended March 31, 2026 through the Maturity Date: 3.75x

 

Interest Coverage Ratio

Fiscal Quarter ended March 31, 2025 and June 30, 2025: 1.50x

Fiscal Quarters ended September 30, 2025 and December 31, 2025: 1.75x

Fiscal Quarters ended March 31, 2026 through the Maturity Date: 2.00x

 

Subsequent to March 31, 2025, there have been no other situations or circumstances that may require significant adjustments or further disclosure in these consolidated financial statements that were not mentioned above.

 

F-35