EX-99.1 2 tm2132584d3_ex99-1.htm EXHIBIT 99.1

 

 

 

BIOCERES CROP SOLUTIONS CORP.
Unaudited interim condensed consolidated financial
statements as of September 30, 2021 and June 30, 2021,
and for the three-month periods ended September 30,
2021, and 2020.    

 

   

 

 

 

 

INDEX

 

Unaudited interim condensed consolidated financial statements as of September 30, 2021, June 30, 2021 and for the three-month periods ended September 30, 2021 and 2020.  
 
Unaudited interim condensed consolidated statements of financial position as of September 30, 2021 and June 30, 2021 F-3
   
Unaudited interim condensed consolidated statements of comprehensive income for the three-month periods ended September 30, 2021 and 2020 F-5
   
Unaudited interim condensed consolidated statements of changes in equity for the three-month periods ended September 30, 2021 and 2020 F-7
   
Unaudited interim condensed consolidated statements of cash flows for the three-month periods ended September 30, 2021 and 2020 F-9
   
Notes to the unaudited interim condensed consolidated financial statements F-11

 

 F-2 

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

As of September 30, 2021, and June 30, 2021

(Amounts in US Dollars)

 

   Notes  09/30/2021   06/30/2021 
ASSETS             
CURRENT ASSETS             
Cash and cash equivalents  6.1   36,631,549    36,046,113 
Other financial assets  6.2   5,283,685    11,161,398 
Trade receivables  6.3   94,809,859    88,784,172 
Other receivables  6.4   15,528,441    11,153,705 
Income and minimum presumed income taxes recoverable  8   969,921    990,881 
Inventories  6.5   72,551,919    61,037,551 
Biological assets  6.6   37,879,003    2,315,838 
Total current assets      263,654,377    211,489,658 
              
NON-CURRENT ASSETS             
Other financial assets  6.2   935,851    1,097,462 
Trade receivables  6.3   128,575    135,739 
Other receivables  6.4   1,644,765    2,543,142 
Income and minimum presumed income taxes recoverable  8   14,867    12,589 
Deferred tax assets  8   3,802,891    3,278,370 
Investments in joint ventures and associates  12   31,876,966    30,657,173 
Property, plant and equipment  6.7   48,078,743    47,954,596 
Intangible assets  6.8   70,287,443    67,342,362 
Goodwill  6.9   30,468,839    28,751,206 
Right of use asset  18   1,407,154    1,327,660 
Total non-current assets      188,646,094    183,100,299 
Total assets      452,300,471    394,589,957 

 

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 September 30, 2021, and June 30, 2021

(Amounts in US Dollars)

 

LIABILITIES  Notes  09/30/2021   06/30/2021 
CURRENT LIABILITIES             
Trade and other payables  6.10   113,963,318    72,091,408 
Borrowings  6.11   66,655,578    76,785,857 
Employee benefits and social security  6.12   5,214,001    4,680,078 
Deferred revenue and advances from customers      5,302,738    6,277,313 
Income tax payable  8   10,520,678    7,452,891 
Government grants      306    - 
Lease liabilities  18   718,966    750,308 
Total current liabilities      202,375,585    168,037,855 
              
NON-CURRENT LIABILITIES             
Borrowings  6.11   62,644,168    47,988,468 
Government grants      -    784 
Joint ventures and associates  12   1,276,639    1,278,250 
Deferred tax liabilities  8   24,965,998    25,699,495 
Provisions      438,816    449,847 
Consideration for acquisition  6.13   12,075,576    11,790,533 
Convertible notes      50,190,617    48,664,012 
Lease liabilities  18   490,101    390,409 
Total non-current liabilities      152,081,915    136,261,798 
Total liabilities      354,457,500    304,299,653 
              
EQUITY             
Equity attributable to owners of the parent      73,748,044    67,743,242 
Non-controlling interests      24,094,927    22,547,062 
Total equity      97,842,971    90,290,304 
Total equity and liabilities      452,300,471    394,589,957 

 

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-month periods ended September 30, 2021 and 2020

(Amounts in US Dollars)

 

      Three-month period ended 
   Notes  09/30/2021   09/30/2020 
Revenues from contracts with customers  7.1   66,353,874    42,105,290 
Government grants      468    604 
Initial recognition and changes in the fair value of biological assets      551,903    249,367 
Total      66,906,245    42,355,261 
              
Cost of sales  7.2   (37,882,453)   (23,112,642)
Research and development expenses  7.3   (1,431,542)   (1,024,212)
Selling, general and administrative expenses  7.4   (16,183,200)   (10,092,243)
Share of profit or loss of joint ventures and associates  12   (222,236)   239,712 
Other income or expenses, net      (1,146,617)   5,190 
Operating profit      10,040,197    8,371,066 
              
Financial cost  7.5   (3,342,809)   (5,276,050)
Other financial results  7.5   (1,836,859)   (7,459,412)
Profit (loss) before income tax      4,860,529    (4,364,396)
Income tax  8   (2,595,313)   (2,005,866)
Profit (loss) for the period      2,265,216    (6,370,262)
              
Profit (loss) for the period attributable to:             
Equity holders of the parent      874,137    (6,971,558)
Non-controlling interests      1,391,079    601,296 
       2,265,216    (6,370,262)
              
Profit (loss) per share             
Basic profit (loss) attributable to ordinary equity holders of the parent 1  9   0.0213    (0.1917)
Diluted profit (loss) attributable to ordinary equity holders of the parent  9   0.0206    (0.1917)
Weighted average number of shares             
Basic 1  9   41,104,088    36,367,953 
Diluted  9   42,376,794    36,367,953 

 

(1)  For the three-month period ended September 30, 2020 diluted EPS was the same as basic EPS. See note 9.

 

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-5 

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

 

For the three-month periods ended September 30, 2021 and 2020

(Amounts in US Dollars)

 

   Three-month period ended 
   09/30/2021   09/30/2020 
Profit (loss) for the period   2,265,216    (6,370,262)
           
Other comprehensive income   5,729,137    136,131 
Items that may be subsequently reclassified to profit and loss   7,118,021    13,796 
Exchange differences on translation of foreign operations from joint ventures   1,617,492    (76,438)
Exchange differences on translation of foreign operations   5,500,529    90,234 
Items that will not be subsequently reclassified to loss and profit   (1,388,884)   122,335 
Revaluation of property, plant and equipment, net of tax, of joint ventures and associates 2   (173,852)   14,135 
Revaluation of property, plant and equipment, net of tax 3   (1,215,032)   108,200 
Total comprehensive profit (loss)   7,994,353    (6,234,131)
           
Total comprehensive profit (loss) attributable to:          
Equity holders of the parent   5,722,059    (7,033,867)
Non-controlling interests   2,272,294    799,736 
    7,994,353    (6,234,131)

 

(2) The tax effect of the revaluation of property, plant and equipment of joint ventures and associates was $ 93,613 and $ (4,712) for the three-month periods ended September 30, 2021 and 2020, respectively.

 

(3) The tax effect of the revaluation of property, plant and equipment was $ 654,248 and $(36,067) for the three-month periods ended September 30, 2021 and 2020, respectively.

 

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 three-month periods ended September 30, 2021 and 2020

 

(Amounts in US Dollars)

 

   Attributable to the equity holders of the parent         
Description  Issued
capital		   Share
premium		   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
attributable
to owners of
the parent		   Non-
controlling
Interests		   Total equity 
06/30/2020   3,613    96,486,865    -    3,428,029    702,981    (30,906)   (18,613,112)   (43,198,201)   7,400,126    46,179,395    14,570,087    60,749,482 
Capitalization of warrants   260    7,765,410    (916,202)   -    -    -    -    -    -    6,849,468    -    6,849,468 
Share-based incentives   -    -    -    316,703    -    -    -    -    -    316,703    -    316,703 
Purchase of own shares   -    -    -    -    -    (529,278)   -    -    -    (529,278)   -    (529,278)
(Loss) profit for the period   -    -    -    -    -    -    (6,971,558)   -    -    (6,971,558)   601,296    (6,370,262)
Other comprehensive income or loss   -    -    -    -    -    -    -    (160,177)   97,868    (62,309)   198,440    136,131 
09/30/2020   3,873    104,252,275    (916,202)   3,744,732    702,981    (560,184)   (25,584,670)   (43,358,378)   7,497,994    45,782,421    15,369,823    61,152,244 

 

As of September 30, 2020, we have 226,325 of our own shares.

 

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 CHANGES IN EQUITY

For the three-month periods ended September 30, 2021 and 2020

 

(Amounts in US Dollars)

 

   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		 
06/30/2021   4,158    120,662,386    -    (916,202)   3,672,768    702,981    (3,530,926)   (25,483,275)   (32,622,808)   5,254,160    67,743,242    22,547,062    90,290,304 
Share-based incentives (Note 17)   -    -    -    -    538,636    -    -    -    -    -    538,636    -    538,636 
Changes in non-controlling interests   -    -    (255,893)   -    -    -    -    -    -    -    (255,893)   (724,429)   (980,322)
Profit for the period   -    -    -    -    -    -    -    874,137    -    -    874,137    1,391,079    2,265,216 
Other comprehensive income or (loss)   -    -    -    -    -    -    -    -    5,959,029    (1,111,107)   4,847,922    881,215    5,729,137 
09/30/2021   4,158    120,662,386    (255,893)   (916,202)   4,211,404    702,981    (3,530,926)   (24,609,138)   (26,663,779)   4,143,053    73,748,044    24,094,927    97,842,971 

 

As of September 30, 2021, we have 464,455 of our own shares.

 

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 three-month periods ended September 30, 2021 and 2020

 

(Amounts in US Dollars)

 

   Notes   09/30/2021   09/30/2020 
OPERATING ACTIVITIES               
Profit (loss) for the period        2,265,216    (6,370,262)
                
Adjustments to reconcile profit to net cash flows               
Income tax        2,595,313    2,005,866 
Finance results        5,179,668    12,735,462 
Depreciation of property, plant and equipment   6.7    946,344    534,655 
Amortization of intangible assets   6.8    672,887    529,477 
Depreciation of leased assets   18    240,154    93,167 
Transactional expenses        -    700,000 
Share-based incentive and stock options        538,636    316,703 
Share of profit or loss of joint ventures and associates   12    222,236    (239,712)
Provisions for contingencies        2,742    36,321 
Allowance for impairment of trade debtors        197,642    96,931 
Allowance for obsolescence        440,324    192,170 
Initial recognition and changes in the fair value of biological assets        (551,903)   (249,367)
Gain or loss on sale of equipment and intangible assets        (42,639)   (39,871)
                
Working capital adjustments               
Trade receivables        (6,130,427)   (900,927)
Other receivables        (3,750,061)   (5,779,106)
Income and minimum presumed income taxes        2,989,781    596,708 
Inventories and biological assets        (51,035,721)   (5,124,373)
Trade and other payables        38,528,315    (5,511,875)
Employee benefits and social security        491,886    (254,546)
Deferred revenue and advances from customers        (1,051,306)   (1,236,992)
Income and minimum presumed income taxes paid        (146,317)   - 
Government grants        (478)   (858)
Interest collected        975,051    974,461 
Inflation effects on working capital adjustments        (7,321,037)   (606,310)
Net cash flows used in operating activities        (13,743,694)   (7,502,278)

 

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 

 

 

 

 

UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

For the three-month periods ended September 30, 2021 and 2020

 

(Amounts in US Dollars)

 

   Notes   09/30/2021   09/30/2020 
INVESTMENT ACTIVITIES               
Proceeds from sale of property, plant and equipment        198,043    41,930 
Proceeds from financial assets        4,997,025    - 
Investment in financial assets        (450,253)   (525,903)
Purchase of property, plant and equipment   6.7    (779,401)   (1,067,553)
Acquisition of investment property        -    (561,746)
Capitalized development expenditures   6.8    (1,587,042)   (439,934)
Purchase of intangible assets   6.8    (192,133)   (282,452)
Net cash flows generated (used in) by investing activities        2,186,239    (2,835,658)
                
FINANCING ACTIVITIES               
Proceeds from borrowings        39,875,454    42,430,825 
Repayment of borrowings, financed payments and interest payments        (24,450,337)   (29,818,977)
(Decrease) increase in bank overdrafts and other short-term borrowings        (32,838)   1,909,507 
Other financial proceeds or payments, net        (1,569,712)   97,897 
Acquisition of non-controlling interest in subsidiaries        (724,429)   - 
Purchase of own shares        -    (529,278)
Leased assets payments        (243,783)   (158,985)
Warrants tender offer payments        -    (1,030,952)
Net cash flows generated by financing activities        12,854,355    12,900,037 
                
Net increase in cash and cash equivalents        1,296,900    2,562,101 
                
Inflation effects on cash and cash equivalents        (1,477,981)   (240,142)
                
Cash and cash equivalents as of beginning of the period   6.1    36,046,113    27,159,421 
Effect of exchange rate changes on cash and equivalents        766,517    507,256 
Cash and cash equivalents as of the end of the period   6.1    36,631,549    29,988,636 

 

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-10 

 

 

 

 

Index

 

1.General information.

 

2.Accounting standards and basis of preparation.

 

3.New standards, amendments and interpretations issued by the IASB.

 

4.Impact of COVID-19.

 

5.Seasonality.

 

6.Information about components of unaudited interim condensed consolidated statements of financial position.

 

7.Information about components of unaudited interim condensed consolidated statement of comprehensive income.

 

8.Taxation.

 

9.Earnings per share.

 

10.Information about unaudited condensed consolidated components of equity.

 

11.Cash flow information.

 

12.Joint ventures and associates.

 

13.Segment information.

 

14.Financial instruments – Risk management.

 

15.Shareholders and other related parties’ balances and transactions.

 

16.Key management personnel compensation.

 

17.Share-based payments.

 

18.Leases.

 

19.Contingencies, commitments, and restrictions on the distribution of profits.

 

20.Events occurring after the reporting period.

 

 F-11 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

1.GENERAL INFORMATION

 

Bioceres Crop Solutions Corp. (NASDAQ: BIOX) is a fully integrated provider of crop productivity technologies designed to enable the transition of agriculture towards carbon neutrality. To do this, Bioceres’ solutions create economic incentives for farmers and other stakeholders to adopt environmentally friendlier production practices. The Group 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 30 countries, mainly in Argentina, Brazil, United States, Europe and South Africa.

 

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-month period ended September 30, 2021, 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 as of June 30, 2021.

 

Authorization for the issue of the unaudited interim condensed consolidated financial statements

 

These unaudited interim condensed consolidated financial statements of the Group as of September 30, 2021, June 30, 2021 and for the three-month periods ended September 30, 2021 and 2020 were authorized by the Board of Directors of Bioceres Crop Solutions Corp. on November 29, 2021.

 

Basis of measurement

 

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

 

·     Going Concern Basis of Accounting, considering the conclusion of the assessment made by the 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.

 

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”).

 

IAS 29 “Financial reporting in hyperinflationary economies” requires that the financial statements of an entity whose functional currency is the currency of a hyperinflationary economy, whether these are based on the historical cost method or the current cost method, be stated in terms of the measuring unit current at the closing date of the reporting period. For such purpose, the inflation produced since the acquisition date or the revaluation date, as applicable, must be computed in non-monetary items. The standard details a series of factors to be considered for concluding whether an economy is hyperinflationary, including, but not limited to, a cumulative inflation rate over a three-year period that approaches or exceeds 100%. Inflation accumulated in three years, as of June 30, 2018, was over 100%. It was for this reason that, in accordance with IAS 29, the Argentine economy had to be considered as hyperinflationary since July 1, 2018. Consequently, the Group has applied IAS 29 to these financial statements.

 

 F-12 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

In an inflationary period, any entity that maintains an excess of monetary assets over monetary liabilities, will lose purchasing power, and any entity that maintains an excess of monetary liabilities over monetary assets, will gain purchasing power, provided that such items are not subject to an adjustment mechanism.

 

Briefly, the restatement mechanism of IAS 29 establishes that monetary assets and liabilities will not be restated because they are already expressed in a current unit of measurement at the end of the reporting period. Assets and liabilities subject to adjustments based on specific agreements, will be adjusted according to those agreements. Non-monetary items measured at their current values at the end of the reporting period, such as the net realizable value or others, do not need to be restated. The remaining non-monetary assets and liabilities will be restated according to a general price index. The loss or gain for the net monetary position will be included in the net result of the reporting period, revealing this information in a separate line item.

 

The inflation adjustment to the initial balances was calculated by means of a conversion factor derived from the Argentine price indexes published by the National Institute of Statistics.

 

The index as of September 30, 2020 and June 30, 2020 was 346.6207 and 321.9738, respectively.

 

The index as of September 30, 2021 and June 30, 2021 was 528.4968 and 483.6049, respectively.

 

The comparative figures in these unaudited interim condensed consolidated financial statements presented in a stable currency are not adjusted for subsequent changes in the price levels or exchange rates.

 

b)            Presentation currency

 

The unaudited interim condensed consolidated financial statements of the Group are presented in US Dollars, which is the presentation currency.

 

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, 2021.

 

 F-13 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

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

 

a) The following new standards became applicable for the current reporting period and adopted by the Group. These amendments did not have a material impact on the Group.

 

Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16 - Interest Rate Benchmark Reform (Phase 2)

 

The Phase 2 amendments, Interest Rate Benchmark Reform—Phase 2, address issues that might affect financial reporting during the reform of an interest rate benchmark, including the effects of changes to contractual cash flows or hedging relationships arising from the replacement of an interest rate benchmark with an alternative benchmark rate (replacement issues). In 2019, the Board issued its initial amendments in Phase 1 of the project.

 

The amendments are related to changes in the basis for determining contractual cash flows of financial assets, financial liabilities and lease liabilities; hedge accounting; and disclosures. They apply only to changes required by the interest rate benchmark reform to financial instruments and hedging relationships.

 

The amendments are effective for financial years beginning on or after January 1, 2021. Earlier application is permitted.

 

Covid-19-Related Rent Concessions beyond 30 June 2021

 

The International Accounting Standards Board extended by one year the application period of the practical expedient in IFRS 16 Leases to help lessees accounting for covid-19-related rent concessions.

 

In response to calls from stakeholders and because the covid-19 pandemic is still at its height, the Board has extended the relief by one year to cover rent concessions that reduce only lease payments due on or before 30 June 2022.

 

The original amendment permitted lessees, as a practical expedient, not to assess whether particular rent concessions occurring as a direct consequence of the covid-19 pandemic are lease modifications and, instead, to account for those rent concessions as if they were not lease modifications.

 

The amendment is effective for annual reporting periods beginning on or after 1 April 2021.

 

New standards and interpretations not yet adopted by the Group

 

No new standards have been issued in the current reporting period.

 

4.IMPACT OF COVID-19

 

In December 2019, a novel strain of coronavirus (“COVID-19”) was reported in Wuhan, China. On March 11, 2020, the World Health Organization declared COVID-19 a pandemic. COVID-19 has disrupted business activities in Argentina and worldwide. The Group’s operations, which involve agricultural production and commercialization activities, have been mostly exempted from the disruption. Consequently, our financial condition, liquidity position and results of operations have not been materially impacted as we have been allowed to continue with our operations.

 

The eventual scope of the Coronavirus outbreak and its impact on the countries and global economy are unknown, with governments being able to implement stricter containment measures, which are not predictable in this instance. It cannot be reasonably quantified to what extent the Coronavirus will affect the Company's business and the results of its operations in the future if this situation is prolonged. The Board of Directors and senior management are closely monitoring the situation and taking all necessary measures at their disposal to protect human life and the Group’s operations and financial condition.

 

 F-14 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

5.SEASONALITY

 

The Group revenues fluctuate depending on the timing of orders from our distributors and customers and on prevailing seed market prices, which influence the purchase decisions of growers, the end-users of seed and integrated products, crop protection products and crop nutrition products. Given the cyclicality of crop planting and harvesting and South America’s planting and growing seasons, which vary from year to year, our business is highly seasonal. This results in substantial fluctuations in quarterly sales and profitability. Generally, the Group sales are concentrated in the third and fourth quarters of each calendar year, when demand for seed and integrated products, crop protection products and crop nutrition products increases as South American growers begin planting their fields. Regarding the seed and integrated products business, the Group contracts with growers and seed suppliers based upon anticipated market demand that we forecast. Generally, in the seed and integrated products business we stock the seed during the harvest season and ship from inventory throughout the year, with the objective of selling most of the inventory from the current year’s harvest before the next year’s, with crop protection and crop nutrition business following a cycle similar to the seed cycle. The impact of seasonality and the resulting fluctuations in quarterly results may be lessened as we achieve our international expansion plans for the seed and integrated products business in geographies with complementary seasons and climates.

 

6.     INFORMATION ABOUT COMPONENTS OF UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

 

6.1.Cash and cash equivalents

 

   09/30/2021   06/30/2021 
Cash at bank and on hand   30,082,841    28,327,569 
Money market funds   6,548,708    7,718,544 
    36,631,549    36,046,113 

 

6.2.Other financial asset

 

   09/30/2021   06/30/2021 
Current          
Restricted short-term deposits   252,474    425,976 
US Treasury bills   2,513,798    7,885,937 
Other investments   2,517,413    2,849,485 
    5,283,685    11,161,398 

 

   09/30/2021   06/30/2021 
Non-current          
Shares of Bioceres S.A.   376,288    355,251 
Other investments   559,563    742,211 
    935,851    1,097,462 

 

 F-15 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

6.3.Trade receivables

 

   09/30/2021   06/30/2021 
Current          
Trade debtors   84,883,913    87,709,287 
Allowance for impairment of trade debtors   (5,819,700)   (5,858,503)
Shareholders and other related parties (Note 15)   (78,474)   - 
Allowance for impairment of shareholders and other related parties (Note 15)   43,345    - 
Allowance for credit notes to be issued   (1,572,371)   (2,987,398)
Trade debtors - Joint ventures and associates (Note 15)   57,706    221,048 
Deferred checks   17,295,440    9,699,738 
    94,809,859    88,784,172 
Non-current          
Trade debtors   128,575    135,739 
    128,575    135,739 

 

6.4.Other receivables

 

   09/30/2021   06/30/2021 
Current          
Taxes   8,065,060    6,048,533 
Other receivables - Other related parties (Note 15)   1,499    1,547 
Other receivables - Parents companies and related parties to Parents (Note 15)   1,052,879    770,549 
Other receivables - Joint ventures and associates (Note 15)   2,375,118    2,219,863 
Prepayments to suppliers   3,396,211    1,646,614 
Prepayments to suppliers - Shareholders and other related parties (Note 15)   128,565    132,625 
Reimbursements over exports   10,548    10,547 
Prepaid expenses and other receivables   184,938    1,021 
Loans receivable   -    230,000 
Miscellaneous   313,623    92,406 
    15,528,441    11,153,705 

 

   09/30/2021   06/30/2021 
Non-current          
Taxes   170,150    862,771 
Reimbursements over exports   1,474,615    1,680,371 
    1,644,765    2,543,142 

 

 F-16 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS 

(Amounts in US Dollars, except otherwise indicated)

 

6.5.Inventories

 

   09/30/2021   06/30/2021 
Agrochemicals   1,012,575    1,161,025 
Seeds and grains   1,323,942    404,774 
Resale products   27,848,800    20,207,496 
Manufactured products   16,213,582    10,902,683 
Goods in transit   2,076,596    1,169,303 
Supplies   9,270,594    6,320,594 
Agricultural products   16,054,607    21,984,626 
Allowance for obsolescence   (1,248,777)   (1,112,950)
    72,551,919    61,037,551 
           
Net of Agricultural products   56,497,312    39,052,925 

 

6.6.Biological assets

 

Changes in biological assets

 

   Soybean   Corn   Wheat   Barley   HB4
Wheat		   Total 
Beginning of the period   54,162    27,646    22,311    3,071    2,208,648    2,315,838 
Initial recognition and changes in the fair value of biological assets   -    -    9,275    -    542,628    551,903 
Costs incurred during the period   118,984    148,549    67,594    21,877    34,999,130    35,356,134 
Exchange differences   (3,479)   (3,120)   (10,992)   (429)   (326,852)   (344,872)
Period ended September 30, 2021   169,667    173,075    88,188    24,519    37,423,554    37,879,003 

 

   Soybean   Corn   Wheat   Barley   HB4
Wheat		   Total 
Beginning of the period   105,101    271,754    45,639    34,050    509,184    965,728 
Initial recognition and changes in the fair value of biological assets   -    73,267    151,863    24,237    -    249,367 
Decrease due to harvest / disposals   (97,199)   (118,943)   -    (31,490)   -    (247,632)
Costs incurred during the period   -    -    231,023    40,811    1,725,754    1,997,588 
Exchange differences   (7,902)   (20,431)   (18,237)   (4,094)   -    (50,664)
Period ended September 30, 2020   -    205,647    410,288    63,514    2,234,938    2,914,387 

 

6.7.Property, plant and equipment

 

Property, plant and equipment as of September 30, 2021 and June 30, 2021 included the following:

 

   09/30/2021   06/30/2021 
Gross carrying amount   65,468,079    63,974,402 
Accumulated depreciation   (17,389,336)   (16,019,806)
Net carrying amount   48,078,743    47,954,596 

 

 F-17 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS 

(Amounts in US Dollars, except otherwise indicated)

 

Net carrying amount for each class of assets is as follows:

 

Class  Net carrying
amount
09/30/2021		   Net carrying
amount
06/30/2021		 
Office equipment   233,701    288,920 
Vehicles   2,196,182    1,835,634 
Equipment and computer software   97,010    67,105 
Fixtures and fittings   3,327,794    2,967,431 
Machinery and equipment   5,166,486    5,125,728 
Land and buildings   35,183,123    35,674,513 
Buildings in progress   1,874,447    1,995,265 
Total   48,078,743    47,954,596 

 

1.Gross carrying amount as of September 30, 2021 is as follows:

 

   Gross carrying amount 
Class  As of the
beginning
of the
period		   Additions   Transfers   Disposals   Foreign
currency
translation		   Revaluation   As of the
end of the
period		 
Office equipment   762,825    5,290    (57,945)   -    31,728    -    741,898 
Vehicles   3,512,217    380,671    57,945    -    173,881    -    4,124,714 
Equipment and computer software   592,126    35,904    -    (33,476)   19,598    -    614,152 
Fixtures and fittings   5,637,943    -    336,147    -    463,824    -    6,437,914 
Machinery and equipment   9,987,811    104,452    -    (39,144)   471,112    -    10,524,231 
Land and buildings   41,486,215    3,020    28,413    -    1,851,395    (2,218,320)   41,150,723 
Buildings in progress   1,995,265    250,064    (364,560)   (120,206)   113,884    -    1,874,447 
Total   63,974,402    779,401    -    (192,826)   3,125,422    (2,218,320)   65,468,079 

 

2.Accumulated depreciation as of September 30, 2021 is as follows:

 

   Depreciation 
Class  Accumulated
as of the
beginning of
the period		   Disposals   Of the period   Foreign
currency
translation		   Revaluation   Accumulated
as of the end
of period		 
Office equipment   473,905    -   11,407    22,885    -    508,197 
Vehicles   1,676,583    -    220,281    31,668    -    1,928,532 
Equipment and computer software   525,021    (33,181)    17,815    7,487    -    517,142 
Fixtures and fittings   2,670,512    -    289,507    150,101    -    3,110,120 
Machinery and equipment   4,862,083    (4,241)   237,784    262,119    -    5,357,745 
Land and buildings   5,811,702    -    169,550    335,389    (349,041)   5,967,600 
Total   16,019,806    (37,422)   946,344    809,649    (349,041)   17,389,336 

 

 F-18 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS 

(Amounts in US Dollars, except otherwise indicated)

 

3.Gross carrying amount as of September 30, 2020, is as follows:

 

   Gross carrying amount 
Class  As of the
beginning of
period		   Additions   Disposals   Foreign
currency
translation		   Revaluation   As of the end
of period		 
Office equipment   579,882    34,754    -    (2,884)   -    611,752 
Vehicles   2,977,542    760,464    (56,338)   (14,608)   -    3,667,060 
Equipment and computer software   465,679    3,107    -    (1,208)   -    467,578 
Fixtures and fittings   5,480,431    -    -    (26,135)   -    5,454,296 
Machinery and equipment   9,054,701    48,202    -    (75,265)   -    9,027,638 
Land and buildings   34,698,618    -    -    (120,985)   149,399    34,727,032 
Buildings in progress   1,270,539    221,026    -    (5,864)   -    1,485,701 
Total   54,527,392    1,067,553    (56,338)   (246,949)   149,399    55,441,057 

 

4.Accumulated depreciation as of September 30, 2020, is as follows:

 

   Depreciation 
Class  Accumulated
as of the
beginning of
period		   Disposals   Of the
period		   Foreign
currency
translation		   Revaluation   Accumulated
as of the end
of period		 
Office equipment   391,602    -    9,709    (1,177)   -    400,134 
Vehicles   1,828,087    (54,279)   139,019    (8,865)   -    1,903,962 
Equipment and computer software   433,231    -    5,782    (1,741)   -    437,272 
Fixtures and fittings   1,801,356    -    84,156    (8,943)   -    1,876,569 
Machinery and equipment   3,605,468    -    139,300    (16,497)   -    3,728,271 
Land and buildings   4,952,542    -    156,689    (21,767)   5,132    5,092,596 
Total   13,012,286    (54,279)   534,655    (58,990)   5,132    13,438,804 

 

The depreciation charge is included in Notes 7.3 and 7.4.

 

Revaluation of property, plant and equipment

 

At a minimum, the Group updates its assessment of the fair value of its land and buildings at the end of each reporting year (after the revaluation policy was adopted), considering the most recent independent valuations and market data. As of September 30, 2021, the Group reviewed these valuations in order to determine the variations between the fair values and their book value, taking into consideration the valuations made in June 2021. Management determined the property, plant and equipment’s value within a range of reasonable fair value estimates. All resulting fair value estimates for land and buildings are classified as Level 3 and are consistent with the methodology disclosed in the annual financial statements.

 

6.8.Intangible assets

 

Intangible assets as of September 30, 2021 and June 30, 2021 included the following:

 

   09/30/2021   06/30/2021 
Gross carrying amount   82,263,734    78,019,203 
Accumulated amortization   (11,976,291)   (10,676,841)
Net carrying amount   70,287,443    67,342,362 

 

 F-19 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS 

(Amounts in US Dollars, except otherwise indicated)

 

1.Net carrying amount of each class of intangible assets is as follows:

 

Class  Net carrying
amount
09/30/2021		   Net carrying
amount
06/30/2021		 
Seed and integrated products          
HB4 soy and breeding program   28,964,455    27,611,142 
Integrated seed products   2,689,348    2,558,220 
Crop nutrition          
Microbiological products   4,243,569    3,996,657 
Other intangible assets          
Trademarks and patents   7,122,562    6,923,256 
Software   2,108,152    1,849,041 
Customer loyalty   20,159,357    19,404,046 
RG/RS/OX Wheat   5,000,000    5,000,000 
Total   70,287,443    67,342,362 

 

2.Gross carrying amount as of September 30, 2021 is as follows:

 

   Gross carrying amount 
Class  As of the
beginning of the period		   Additions   Foreign
currency
translation		   As of the end
of the period		 
Seed and integrated products                    
HB4 soy and breeding program   27,611,142    1,353,313    -    28,964,455 
Integrated seed products   2,558,220    -    131,128    2,689,348 
Crop nutrition                    
Microbiological products   6,037,680    233,729    273,721    6,545,130 
Other intangible assets                    
Trademarks and patents   9,824,171    629    544,834    10,369,634 
Software   3,784,593    191,504    282,051    4,258,148 
Customer loyalty   23,203,397    -    1,233,622    24,437,019 
RG/RS/OX Wheat   5,000,000    -    -    5,000,000 
Total   78,019,203    1,779,175    2,465,356    82,263,734 

 

3.Accumulated amortization as of September 30, 2021 is as follows:

 

   Amortization 
Class  Accumulated
as of
beginning of
the period		   Of the period   Foreign
currency
translation		   Accumulated
as of the end of
the period		 
Crop nutrition                    
Microbiological products   2,041,023    139,408    121,130    2,301,561 
Other intangible assets                    
Trademarks and patents   2,900,915    174,626    171,531    3,247,072 
Software   1,935,552    103,543    110,901    2,149,996 
Customer loyalty   3,799,351    255,310    223,001    4,277,662 
Total   10,676,841    672,887    626,563    11,976,291 

 

 F-20 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL

STATEMENTS 

(Amounts in US Dollars, except otherwise indicated)

 

4.Gross carrying amount as of September 30, 2020 is as follows:

 

   Gross carrying amount 
Class  As of the
beginning of
period		   Additions   Foreign
currency
translation		   As of the
end of
period		 
Seed and integrated products                    
HB4 soy and breeding program   7,345,923    439,934    (820)   7,785,037 
Integrated seed products   2,296,955    -    (10,087)   2,286,868 
Crop nutrition                    
Microbiological products   3,867,593    246,385    (16,272)   4,097,706 
Other intangible assets                    
Trademarks and patents   8,432,746    -    (37,019)   8,395,727 
Software   2,088,929    36,067    (19,296)   2,105,700 
Customer loyalty   18,800,691    -    (82,532)   18,718,159 
Total   42,832,837    722,386    (166,026)   43,389,197 

 

5.Accumulated amortization as of September 30, 2020 is as follows:

 

   Amortization 
Class  Accumulated
as of
beginning of
period		   Of the period   Foreign
currency
translation		   Accumulated
as of the end
of period		 
Crop nutrition                    
Microbiological products   1,363,962    113,827    (5,181)   1,472,608 
Other intangible assets                    
Trademarks and patents   2,057,964    138,441    (9,034)   2,187,371 
Software   1,401,964    97,227    (15,290)   1,483,901 
Customer loyalty   2,675,483    179,982    (11,745)   2,843,720 
Total   7,499,373    529,477    (41,250)   7,987,600 

 

The amortization charge is included in Notes 7.3 and 7.4.

 

6.9.Goodwill

 

The variations in goodwill that occurred during the period correspond to the result of inflation adjustment and conversion to presentation currency. There were no indicators of goodwill impairment.

 

Carrying amount of goodwill as of September 30, 2021 and June 30, 2021 is as follows:

 

   09/30/2021   06/30/2021 
Rizobacter Argentina S.A.   23,638,531    22,277,336 
Bioceres Crops S.A.   6,360,218    6,003,780 
Insumos Agroquímicos S.A.   470,090    470,090 
    30,468,839    28,751,206 

 

 F-21 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

6.10.    Trade and other payables

 

   09/30/2021   06/30/2021 
Current        
Trade creditors   88,718,299    51,389,515 
Shareholders and other related parties (Note 15)   36,920    52,864 
Trade creditors - Parent company (Note 15)   250,629    193,718 
Trade creditors - Joint ventures and associates (Note 15)   22,343,319    17,669,027 
Taxes   2,237,168    2,556,945 
Miscellaneous   376,983    229,339 
    113,963,318    72,091,408 

 

6.11.    Borrowings

 

   09/30/2021   06/30/2021 
Current          
Bank overdrafts   -    32,838 
Bank borrowings   29,156,974    33,684,287 
Corporate bonds   20,387,497    24,742,752 
Trust debt securities   2,102,497    3,470,448 
Net loans payables- Parents companies and related parties to Parents (Note 15)   3,578,921    3,578,921 
Subordinated loan   11,429,689    11,276,611 
    66,655,578    76,785,857 
Non-current          
Bank borrowings   2,656,673    4,161,827 
Corporate bonds   53,987,495    37,826,641 
Net loans payables- Parents companies and related parties to Parents (Note 15)   6,000,000    6,000,000 
    62,644,168    47,988,468 

 

On August 31, 2021, Rizobacter completed a $16.1 million public offering of Series VI corporate bonds in the Argentine market. The bonds were issued in two tranches: (i) Class A: $12.7 million with maturity in March 2023 and an annual nominal interest rate of 3.75%; and (ii) Class B: $3.4 million with maturity in September 2024 and an annual nominal interest rate of 5.25%.

 

The carrying value of some borrowings as of September 30, 2021 measured at amortized cost differs from the fair value of these borrowings. The following measures of fair values are based on discounted cash flows (Level 3), due to the use of unobservable inputs, including own credit risk.

 

   09/30/2021   06/30/2021 
   Amortized cost   Fair value   Amortized cost   Fair value 
Current                    
Bank borrowings   29,156,974    28,809,692    33,684,287    32,770,615 
Corporate Bonds   20,387,497    20,072,253    24,742,752    24,085,087 
                     
Non-current                    
Bank borrowings   2,656,673    2,312,824    4,161,827    3,864,666 
Corporate Bonds   53,987,495    47,941,646    37,826,641    32,656,097 

 

The Group has met the capital and interest installments whose maturity was effective in the three-month period ended September 30, 2021.

 

 F-22 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

6.12.    Employee benefits and social security

 

   09/30/2021   06/30/2021 
Current        
Salaries, accrued incentives, vacations and social security   5,081,964    4,243,585 
Key management personnel (Note 15)   132,037    436,493 
    5,214,001    4,680,078 

 

6.13.    Consideration for acquisitions

 

The consideration of payment for the acquisitions was measured at fair value, which was calculated as the sum of the acquisition-date fair values of the assets transferred, and the liabilities incurred. 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 is recognized as other finance over the period the consideration will be paid.

 

7.          INFORMATION ABOUT COMPONENTS OF UNAUDITED INTERIM CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

 

7.1.      Revenues from contracts with customers

 

   09/30/2021   09/30/2020 
Sale of goods and services   65,672,217    41,193,013 
Royalties   681,657    912,277 
    66,353,874    42,105,290 

 

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

 

7.2.      Cost of sales

 

Item  09/30/2021   09/30/2020 
Inventories as of the beginning of the period   39,052,925    29,338,548 
Purchases of the period   49,130,173    23,197,990 
Production costs   3,662,191    2,922,581 
Foreign currency translation   2,534,476    (404,642)
Subtotal   94,379,765    55,054,477 
Inventories as of the end of the period (*)   (56,497,312)   (31,941,835)
Cost of sales   37,882,453    23,112,642 

 

(*) Net of agricultural products from the HB4 program.

 

 F-23 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

7.3.      R&D classified by nature

  

Item  Research and
development
expenses
09/30/2021		   Research and
development
expenses
09/30/2020		 
Amortization of intangible assets   302,214    252,267 
Import and export expenses   1,686    2,533 
Depreciation of property, plant and equipment   179,677    32,423 
Freight and haulage   12    - 
Employee benefits and social securities   259,522    210,327 
Maintenance   7,375    4,791 
Energy and fuel   18,521    14,019 
Supplies and materials   491,964    244,173 
Mobility and travel   4,766    4,274 
Professional fees and outsourced services   62,856    7,447 
Professional fees related parties   86,256    234,837 
Office supplies   2,334    493 
Information technology expenses   31    9,915 
Insurance   2,960    5,653 
Depreciation of leased assets   1,206    654 
Miscellaneous   10,162    406 
Total   1,431,542    1,024,212 

 

   09/30/2021   09/30/2020 
R&D Capitalized (Note 6.8)   1,587,042    439,934 
R&D profit and loss   1,431,542    1,024,212 
Total   3,018,584    1,464,146 

 

 F-24 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

7.4.      Expenses classified by nature and function

 

Item  Production costs   Selling, general
and administrative
expenses		   Total 09/30/2021 
Amortization of intangible assets   -    370,673    370,673 
Analysis and storage   2,355    24,703    27,058 
Commissions and royalties   335,585    473,456    809,041 
Import and export expenses   7,304    159,345    166,649 
Depreciation of property, plant and equipment   314,569    452,098    766,667 
Depreciation of leased assets   118,086    120,862    238,948 
Impairment of receivables   -    197,642    197,642 
Freight and haulage   98,488    2,221,651    2,320,139 
Employee benefits and social securities   1,508,725    4,997,301    6,506,026 
Maintenance   178,832    211,075    389,907 
Energy and fuel   105,690    15,593    121,283 
Supplies and materials   209,874    129,419    339,293 
Mobility and travel   4,454    265,364    269,818 
Publicity and advertising   -    973,659    973,659 
Contingencies   -    2,742    2,742 
Share-based incentives   -    517,434    517,434 
Professional fees and outsourced services   307,060    1,971,702    2,278,762 
Professional fees related parties   -    14,474    14,474 
Office supplies   6,376    119,830    126,206 
Insurance   13,054    240,421    253,475 
Information technology expenses   -    330,337    330,337 
Obsolescence   440,324    -    440,324 
Taxes   11,256    2,331,803    2,343,059 
Miscellaneous   159    41,616    41,775 
Total   3,662,191    16,183,200    19,845,391 

 

 F-25 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

Item  Production costs   Selling, general
and administrative
expenses		   Total 09/30/2020 
Amortization of intangible assets   -    277,210    277,210 
Analysis and storage   11,562    9,674    21,236 
Commissions and royalties   468,400    155,743    624,143 
Import and export expenses   41,244    233,814    275,058 
Depreciation of property, plant and equipment   270,785    231,447    502,232 
Depreciation of leased assets   64,014    28,499    92,513 
Impairment of receivables   -    96,931    96,931 
Freight and haulage   162,690    997,397    1,160,087 
Employee benefits and social securities   1,198,492    3,366,048    4,564,540 
Maintenance   165,489    175,437    340,926 
Energy and fuel   80,009    22,326    102,335 
Supplies and materials   60,192    77,134    137,326 
Mobility and travel   968    162,001    162,969 
Publicity and advertising   -    462,658    462,658 
Contingencies   4,403    33,386    37,789 
Share-based incentives   -    316,703    316,703 
Professional fees and outsourced services   173,131    1,748,720    1,921,851 
Professional fees related parties   -    2,294    2,294 
Office supplies   378    122,357    122,735 
Insurance   18,648    225,789    244,437 
Information technology expenses   328    247,928    248,256 
Obsolescence   192,170    -    192,170 
Taxes   9,298    1,081,550    1,090,848 
Miscellaneous   380    17,197    17,577 
Total   2,922,581    10,092,243    13,014,824 

 

7.5.      Finance results

 

   09/30/2021   09/30/2020 
Financial costs          
Interest expenses with the Parents (Note 15)   (240,639)   (313,677)
Interest expenses   (2,312,445)   (4,490,817)
Financial commissions   (789,725)   (471,556)
    (3,342,809)   (5,276,050)
Other financial results          
Exchange differences generated by assets   4,721,459    8,480,343 
Exchange differences generated by liabilities   (7,441,398)   (12,055,520)
Changes in fair value of financial assets or liabilities and other financial results   (766,225)   (5,459,905)
Net gain of inflation effect on monetary items   1,649,305    1,575,670 
    (1,836,859)   (7,459,412)
           
Total net financial results   (5,179,668)   (12,735,462)

 

 F-26 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

8.            TAXATION

 

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

 

   09/30/2021   09/30/2020 
Current tax expense   (4,650,198)   (2,360,843)
Deferred tax   2,054,885    354,977 
Total   (2,595,313)   (2,005,866)

 

The gross movement on the deferred income tax account is as follows:

 

   09/30/2021   09/30/2020 
Beginning of the period deferred tax   (22,421,125)   (14,164,930)
Charge of the period   2,054,885    354,977 
Charge to OCI   654,248    (36,067)
Conversion difference   (1,451,115)   30,922 
Total net deferred tax   (21,163,107)   (13,815,098)

 

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 follows:

 

   09/30/2021   09/30/2020 
Earnings (Loss) before income tax-rate   4,860,529    (4,364,396)
Income tax expense by applying tax rate in force in the respective countries   (2,774,368)   (1,306,510)
Share of profit or loss of subsidiaries, joint ventures and associates   (78,009)   82,195 
Stock options charge   (93,824)   (15,212)
Rate change adjustment   -    38,109 
Non-deductible expenses   (475,473)   (70,883)
Untaxed gains   135,263    - 
Representation expenses   (2,084)   (8,189)
Foreign investment coverage   56,980    99,610 
Tax inflation adjustment   300,200    (742,393)
Result of inflation effect on monetary items and other finance results   283,261    (82,593)
Others   52,741    - 
Income tax expenses   (2,595,313)   (2,005,866)

 

 F-27 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

9.            EARNINGS PER SHARE (EPS)

 

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

 

   09/30/2021   09/30/2020 
Numerator        
Profit (loss) for the period (basic EPS)   874,137    (6,971,558)
Profit (loss) for the period (diluted EPS)   874,137    (6,971,558)
Denominator          
Weighted average number of shares (basic EPS)   41,104,088    36,367,953 
Weighted average number of shares (diluted EPS)   42,376,794    36,367,953 
           
Basic profit (loss) attributable to ordinary equity holders of the parent   0.0213    (0.1917)
           
Diluted profit (loss) gain attributable to ordinary equity holders of the parent   0.0206    (0.1917)

 

For the period ended September 30, 2020 diluted EPS was the same as basic EPS as the effect of potential ordinary shares would be antidilutive.

 

Diluted earnings per share is calculated by adjusting the weighted average number of shares outstanding to assume conversion of all dilutive potential shares. The Group has two categories of dilutive potential shares, share-based incentives, and Convertible notes.

 

The stock options were included in the diluted EPS calculation for the year ended Septiember 30, 2021 only for the tranches in which the average market price of ordinary shares during the periods was higher than the assumed proceeds per option. See note 17.

 

Convertible notes outstanding were not included in the diluted EPS calculations for the year ended September 30, 2021 because its interest (net of tax and other changes in income or expense) per ordinary share obtainable on conversion exceeds basic earnings per share.

 

10.            INFORMATION ABOUT UNAUDITED INTERIM CONDENSED CONSOLIDATED COMPONENTS OF EQUITY

 

Share capital

 

As of September 30, 2021, we have (i) 100,000,000 ordinary shares ($0.0001 par value) authorized, (ii) 41,104,087 ordinary shares issued and outstanding, (iii) 1,000,000 preference shares ($0.0001 par value) authorized, (iv) no preference shares issued and outstanding, (v) $49.1 million of Convertible notes, and (vi) 2,032,092 ordinary shares reserved for our equity compensation plans.

 

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

 

Non-controlling interests

 

On August 2, 2021, we acquired 2,467,990 shares of Insumos Agróquimicos S.A. (“Insuagro”). Consideration of payment was $0.7 million in cash as a Fixed Price. Furthermore, the Fixed Price may be increased up to 3.5x Adjusted EBITDA per share to be measured in each annual reporting period. The Group has recognized in equity the difference between the amount by which the non-controlling interests were incorporated and the fair value of the consideration paid.

 

As of today, we own 13,489,990 shares of Insuagro, which represent 61.32% of the share capital and 61.22% of the votes.

 

There were no dividends paid to non-controlling interests in the periods ended September 30, 2021 and 2020.

 

 F-28 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

11.CASH FLOW INFORMATION

 

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

 

   09/30/2021   09/30/2020 
Investment activities          
Settlement of receivables through PPE contribution   -    1,858,732 
Investment in-kind in other related parties (Note 15)   455,444    261,619 
    455,444    2,120,351 

 

   09/30/2021   09/30/2020 
Financing activities                   
           
Acquisition of non-controlling interest in subsidiaries   255,893    - 
    255,893    - 

 

12.JOINT VENTURES AND ASSOCIATES

 

   09/30/2021   06/30/2021 
Liabilities          
Trigall Genetics S.A.   1,276,639    1,278,250 
    1,276,639    1,278,250 

 

   09/30/2021   06/30/2021 
Assets          
Synertech Industrias S.A.   28,780,636    27,572,597 
Indrasa Biotecnología S.A.   69,709    54,957 
Alfalfa Technologies S.R.L.   94,922    97,920 
Moolec Science Limited   2,931,699    2,931,699 
    31,876,966    30,657,173 

 

Share of profit or loss of joint ventures and associates:

 

   09/30/2021   09/30/2020 
Trigall Genetics S.A.   1,611    (114,233)
Synertech Industrias S.A.   (240,282)   328,106 
Indrasa Biotecnología S.A.   16,435    25,839 
    (222,236)   239,712 

 

Changes in joint ventures and associates

 

   09/30/2021   09/30/2020 
As of the beginning of the period   29,378,923    23,103,963 
Revaluation of property, plant and equipment   (173,852)   14,135 
Foreign currency translation   1,617,492    (76,438)
Share of profit or loss   (222,236)   239,712 
As of the end of the period   30,600,327    23,281,372 

 

 F-29 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

13.SEGMENT INFORMATION

 

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

 

Period ended September 30, 2021  Seed and
integrated
products		   Crop
protection		   Crop
nutrition		   Consolidated 
Revenues from contracts with customers                    
Sale of goods and services   8,250,549    34,958,979    22,462,689    65,672,217 
Royalties   681,657              681,657 
Others                    
Government grants   468    -    -    468 
Initial recognition and changes in the fair value of biological assets   45,951    191,317    314,635    551,903 
Total   8,978,625    35,150,296    22,777,324    66,906,245 
                     
Cost of sales   (3,494,180)   (21,524,899)   (12,863,374)   (37,882,453)
Gross margin per segment   5,484,445    13,625,397    9,913,950    29,023,792 
%   61%   39%   44%   43%

 

Period ended September 30, 2020  Seed and
integrated
products		   Crop
protection		   Crop
nutrition		   Consolidated 
Revenues from contracts with customers                    
Sale of goods and services   7,742,299    21,567,520    11,883,194    41,193,013 
Royalties   912,277              912,277 
Others                    
Government grants   604    -    -    604 
Initial recognition and changes in the fair value of biological assets   20,421    72,295    156,651    249,367 
Total   8,675,601    21,639,815    12,039,845    42,355,261 
                     
Cost of sales   (3,320,422)   (13,521,273)   (6,270,947)   (23,112,642)
Gross margin per segment   5,355,179    8,118,542    5,768,898    19,242,619 
%   62%   38%   48%   45%

 

 F-30 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

14.            FINANCIAL INSTRUMENTS – RISK MANAGEMENT

 

The following tables show additional information required under IFRS 7 for financial assets and liabilities recorded as of September 30, 2021 and June 30, 2021.

 

   Amortized cost   Mandatorily measured at fair
value through profit or loss		 
Financial asset  09/30/2021   06/30/2021   09/30/2021   06/30/2021 
Cash and cash equivalents   30,082,841    28,327,569    6,548,708    7,718,544 
Other financial assets   1,188,325    1,523,438    5,031,211    10,735,422 
Trade receivables   94,938,434    88,919,911    -    - 
Other receivables (*)   5,228,282    5,005,283    -    - 
Total   131,437,882    123,776,201    11,579,919    18,453,966 

 

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

 

   Amortized cost   Mandatorily measured at fair
value through profit or loss		 
Financial liability  09/30/2021   06/30/2021   09/30/2021   06/30/2021 
Trade and other payables   113,963,318    72,091,408              -                - 
Borrowings   129,299,746    124,774,325    -    - 
Convertible notes   50,190,617    48,664,012    -    - 
Lease liability   1,209,067    1,140,717    -    - 
Employee benefits and social security   5,214,001    4,680,078    -    - 
Consideration for acquisition of assets   12,075,576    11,790,533    -    - 
Total   311,952,325    263,141,073    -    - 

 

Financial instruments measured at fair value

 

Measurement at fair value at 09/30/2021  Level 1   Level 2   Level 3 
Financial assets at fair value                      
Mutual funds   6,548,708    -    - 
US Treasury bills   2,513,798    -    - 
Other investments   1,883,593    633,820    - 

 

Measurement at fair value at 06/30/2021  Level 1   Level 2   Level 3 
Financial assets at fair value                        
Mutual funds   7,718,544    -    - 
US Treasury bills   7,885,937    -    - 
Other investments   2,110,414    739,071    - 

 

 F-31 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

Estimation of fair value

 

The fair value of marketable securities, mutual funds and US Treasury Bills is calculated using the market approach, which use 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. 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 6.11).

 

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

 

15.SHAREHOLDERS AND OTHER RELATED PARTIES BALANCES AND TRANSACTIONS

 

During the periods ended September 30, 2021 and 2020, the transactions between the Group and related parties, and the related balances owed by and to them, are as follows:

 

      Amount of the transactions of the period ended 
Party  Transaction type  09/30/2021   09/30/2020 
Joint ventures and associates  Sales and services   4,331,275    1,340,709 
Joint ventures and associates  Purchases of goods and services   (12,087,333)   (4,496,924)
Joint ventures and associates  Net loans granted   -    375,575 
Key management personnel  Salaries, social security benefits and other benefits   (969,716)   (880,195)
Key management personnel  Net loans cancelled   -    (598,508)
Key management personnel  Interest gain   -    8,812 
Shareholders and other related parties  Sales of goods and services   1,805    177,017 
Shareholders and other related parties  Purchases of goods and services   (1,422,314)   (492,235)
Shareholders and other related parties  In-kind contributions   455,444    261,619 
Parents companies and related parties to Parents (Note 7.5)  Interest expenses   (240,639)   (313,677)
Total      (9,931,478)   (4,617,807)

 

 F-32 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

      Amounts receivable from related parties 
Party  Transaction type  09/30/2021   06/30/2021 
Parents companies and related parties to Parents  Other receivables   1,052,879    770,549 
Shareholders and other related parties  Trade debtors   (78,474)   - 
Shareholders and other related parties  Allowance for impairment   43,345    - 
Other receivables - Other related parties  Other receivables   130,064    134,172 
Joint ventures and associates  Trade debtors   57,706    221,048 
Joint ventures and associates  Other receivables   2,375,118    2,219,863 
Total      3,580,638    3,345,632 

 

      Amounts payable to related parties 
Party  Transaction type  09/30/2021   06/30/2021 
Parent company  Trade creditors   (250,629)   (193,718)
Parents companies and related parties to Parents  Net loans payables   (9,578,921)   (9,578,921)
Key management personnel  Salaries, social security benefits and other benefits   (132,037)   (436,493)
Shareholders and other related parties  Trade and other payables   (36,920)   (52,864)
Joint ventures and associates  Trade creditors   (22,343,319)   (17,669,027)
Total      (32,341,826)   (27,931,023)

 

16.KEY MANAGEMENT PERSONNEL COMPENSATION

 

The compensation of directors and other members of key management, including social security contributions and other benefits, was as follows for the period ended September 30, 2021 and 2020.

 

   09/30/2021   09/30/2020 
Salaries, social security and other benefits   452,282    563,492 
Share-based incentives   517,434    316,703 
Total   969,716    880,195 

 

17.SHARE-BASED PAYMENTS

 

a)Incentive payments based on options

 

-    Share option plan for directors and senior management: plan granted up to 1,200,000 stock options with an exercise price of $4.55 and expire on October 31, 2029.

 

-    Share Option Plan for junior management: plan granted up to 100,000 underlying ordinary shares for certain key employees. The options have an exercise price of $5.55 and expire on October 23, 2030.

 

Options can be exercised on a cashless basis at their volume weighted average price (“VWAP”) of the ordinary shares during a twenty-day period to the date of exercise.

 

 F-33 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

The fair value of the stock options at the grant date was estimated using the "Black-Scholes" model, considering the terms and conditions under which the options on shares were granted and adjusted to consider the possible dilutive effect of the future exercise of options.

 

Factor  Directors and
Sr. Management		   Junior
Management		 
Weighted average fair value of shares  $5.42   $13.98 
Exercise price  $4.55   $5.55 
Weighted average expected volatility (*)   29.69%   42.18%
Dividend rate   0%   0%
Weighted average risk-free interest rate   1.66%   1.17%
Weighted average expected life   9.89 years   9.22 years
Weighted average fair value of stock options at measurement date  $2.47   $10.1 

 

There are no market-related performance conditions or non-vesting conditions that should be considered for determining the fair value of options.

 

The Group estimates that 100% of the stock options will be exercised, taking into account historical patterns of executives maintaining their jobs and the probability of exercising the options. This estimate is reviewed at the end of each annual or interim period.

 

The following table shows the weighted average amount and exercise price and the movements of the stock options of executives and directors of the Group during the three-month periods ended September 30, 2021 and 2020.

 

   09/30/2021   09/30/2020 
   Number of
options		   Exercise
price		   Number of
options		   Exercise
price		 
At the beginning   1,166,667   $4.55    1,200,000   $4.55 
Granted during the period   93,600   $5.55    -    - 
Annulled during the period   -    -    -    - 
Exercised during the period   -    -    -    - 
Expired during the period   -    -    -    - 
Effective at period (*)   1,260,267   $4.62    1,200,000   $4.55 

 

(*) Exercise price of options effective at the end of the period was calculated using weighted average.

 

The charge of the plans based on options recognized during the period was $0.4 million.

 

b) Annual compensation - Bonus

 

Bonus in Cash is an annual cash incentive awarded up to an amount that is five times the individual’s monthly salary, which can be increased by $30,000 in value if the recipient decides to receive the base bonus in ordinary shares, to each of the Chief Operating Officer, Sales Director and Marketing Director and Managing Director of Rizobacter. The bonus will be granted upon the meeting by the Company of certain financial and operational objectives. Each year the Board of Directors defines the objectives upon approval of the annual budget.

 

As well as fiscal year ended June 30, 2020, for the Bonus in Cash 2021, all the beneficiaries decided to receive the bonus in ordinary shares. The charge for the three-month period ended September 30, 2021 in consideration of the annual compensation bonus for objectives achieved in the year ended June 30, 2021 amounted to $0.05 million.

 

 F-34 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

Bonus in Kind is an annual in-kind incentive awarded in ordinary shares up to an equivalent of $315,000, $165,000 and $100,000 to the Chief Executive Officer, Chief Financial Officer and Chief Technology Officer, respectively, to tie a portion of their compensation to financial and operational objectives. Each year the Board of Directors will define the objectives upon approval of the annual budget.

 

The charge for the three-month period ended September 30, 2021 in consideration of the annual compensation bonus for objectives achieved in the year ended June 30, 2021 amounted to $0.07 million.

 

The number of shares that can be awarded under each bonus will be determined by using a 20-day volume weighted average price (“VWAP”) of the Company’s ordinary shares, starting with the day on which the relevant financial and operational objectives are met by the Company and the bonus is granted.

 

50% of bonus vests immediately if the financial and operational objectives are achieved as of such date, and the remaining 50% vests in the subsequent 12-months, upon meeting of the financial and operational objectives.

 

e) Employee Stock Purchase Plan (ESPP)

 

This is an incentive plan for eligible employees with no stock compensation to purchase ordinary shares of the Company up to a maximum of 15% percent of such employee’s monthly compensation. The number of ordinary shares subject to the ESPP shall be 200,000 ordinary shares. The purchase price will be equal to 85% of the lower of the closing price of the Company’s ordinary shares on the first business day and the last business day of the relevant offering period. As of the date of These condensed consolidated statements of financial position the ESSP is not yet implemented.

 

18.LEASE

 

Right-of-use leased asset  09/30/2021   06/30/2021 
Cost          
Book value at the beginning of the period   3,688,150    2,369,326 
Additions of the period   307,510    913,321 
Disposals   (44,092)   - 
Exchange differences   (82,907)   405,503 
Book value at the end of the year   3,868,661    3,688,150 

 

Depreciation  09/30/2021   06/30/2021 
Book value at the beginning of the period   2,360,490    1,254,729 
Exchange differences   (139,137)   278,441 
Depreciation of the period   240,154    827,320 
Accumulated depreciation at the end of the period   2,461,507    2,360,490 
Total   1,407,154    1,327,660 

 

Lease liability  09/30/2021   06/30/2021 
Book value at the beginning of the period   1,140,717    1,109,812 
Additions of the year   106,185    259,427 
Interest expenses, exchange differences and inflation effects   205,948    500,442 
Payments of the period   (243,783)   (728,964)
Total   1,209,067    1,140,717 

 

Lease Liabilities  09/30/2021   06/30/2021 
Non-current   490,101    390,409 
Current   718,966    750,308 
Total   1,209,067    1,140,717 

 

 F-35 

 

 

BIOCERES CROP SOLUTIONS CORP.

 

NOTES TO THE UNAUDITED INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in US Dollars, except otherwise indicated)

 

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

 

   09/30/2021   06/30/2021 
Machinery and equipment   700,807    661,544 
Vehicles   1,042,169    1,061,184 
Equipment and computer software   772,777    582,101 
Land and buildings   1,352,908    1,383,321 
    3,868,661    3,688,150 

 

The incremental borrowing rate used was 6.23%.

 

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

 

There were no 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, 2021.

 

20.EVENTS OCCURRING AFTER THE REPORTING PERIOD

 

Subsequent to September 30, 2021, there have been no situations or circumstances that may require significant adjustments or further disclosure in these unaudited interim condensed consolidated financial statements that were not mentioned above.

 

 F-36