LONGMONT — S&W Seed Co. (Nasdaq: SANW) saw its sales grow and losses shrink in the second quarter 2023.

The company’s adjusted net loss for the most recent period was $5.3 million, or 13 cents per share.

That performance failed to meet Wall Street expectations. Zacks Consensus Estimate for the quarter was a loss of 12 cents per share.

However, S&W’s sales were $12.9 million for the quarter, nearly 10% higher than Zacks Consensus Estimate and 2% better than revenues posted in the second quarter of 2021.

The company attributes the improved sales performance to United States sorghum and international alfalfa sales.

Looking ahead, “the company expects fiscal 2023 revenue to be within a range of $80 million to $92 million, representing an expected increase of 12% to 29% compared to fiscal 2022 revenue of $71.4 million,” S&W disclosed.

This month, S&W entered a joint venture with Equilon Enterprises LLC, part of gas and energy giant Shell USA Inc.’s umbrella of companies, to develop what the firms are calling “novel plant genetics for oil seed cover crops as feedstocks for biofuel production.”

The venture, named Vision Bioenergy Oilseeds LLC, is 66% owned by Shell and 34% owned by S&W, the company said Monday. S&W is also contributing its seed processing and research facilities in Nampa, Idaho, and certain key personnel.

“At closing, Shell contributed $13 million to the joint venture company and is required to make an additional $12 million cash contribution to the joint venture company in February 2024,” S&W said in its regulatory disclosure. “These capital contributions are expected to fund the joint venture company’s operations for a few years. Shell also paid $7 million to S&W and paid off S&W’s $7 million promissory note with Rooster Capital LLC, which was secured by a priority security interest in the property, plant and fixtures located at the Nampa facilities.”

S&W executives, in a prepared statement, said, “We believe our agreement with Shell to establish the joint venture is transformational for S&W. By partnering with a world leader like Shell and leveraging our seed, processing and technological capabilities within Camelina, we believe we have an opportunity to be at the forefront of the evolution taking place to produce sustainable low carbon energy solutions. This joint venture adds a new center of value for S&W and has the ability to enhance the financial outlook for the company going forward.”