Company: LDWY
Filing Date: 2025-08-28
Form Type: 10-KT
Source: 0001558370-25-011807
Chunk: 32

Company: LENDWAY, INC.
Filing Date: 2025-08-28
Form: 10-KT
Chunk 32
---
. Operating Activities of Continuing Operations. Net cash provided by operating activities during the six months ended June 30, 2025 was $8,002,000, $8,281,000 of which is related to the decrease of inventory after the busy season. Cash from operations is greatest in the first half of the year due to the seasonality of the Bloomia business. The Company used approximately $887,000 in cash in the period to purchase tulip bulbs. Investing Activities of Continuing Operations. Net cash used in investing activities during the six months ended June 30, 2025 was $279,000, which primarily related to the purchases of property and equipment. Financing Activities. Net cash used by financing activities during the six months ended June 30, 2025 was $9,083,000, which primarily related to repayments of the revolving debt, term loan, and related party note. The Company commits to purchase the majority of its tulip bulbs from July to September each year with the majority of the payment due in September. As of August 25, 2025, the Company had committed to purchasing approximately $15 million of tulip bulbs to be paid for between September and December 2025. We are currently seeking potential sources of financing to support our working capital needs.

25

On February 22, 2024, the Company acquired majority ownership in Bloomia for a total purchase price of $53,360,000. Consideration comprised of $34,919,000 of cash paid, $15,451,000 of seller bridge loans in lieu of cash, and $2,990,000 of equity issued of Tulp 24.1 which is reflected as noncontrolling interest within these consolidated financial statements. The acquisition was funded through a combination of debt and cash on hand.

To finance the Bloomia acquisition, the Company entered into the Credit Agreement, together with Tulp 24.1 as the borrower. Under the terms of the Credit Agreement, Tulp 24.1 had an $18,000,000 term loan funded. The Credit Agreement also contained a $6,000,000 revolving credit facility, which may be used by Tulp 24.1 for general business purposes and working capital. On October 16, 2024, the Company amended the credit agreement (as amended, the “Amended Credit Agreement”) to, among other things, temporarily increase the borrowing capacity under the revolving credit facility to $8,000,000 until March 31,