VANCOUVER, British Columbia, November 14, 2023 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSX:CUB), a local chain agricultural technology company, today reported its third quarter financial and operating results for the three and nine months ended September 30, 2023. All amounts are in Canadian dollars, unless otherwise stated.
Third Quarter Financial Results
- Revenue for the three months ended September 30, 2023, was $59,100 down from $325,480 in the previous year as the Company has not established any cyclicality of operations and results may fluctuate from period to period.
- Net losses for the three months ended September 30, 2023, were $2.2 million compared to a net loss of $12.7 million in the previous year.
- As a result of the Company’s ongoing cost reduction measures, operating expenses, comprising of selling, general & administrative, and research & development expenses for the three months ended September 30, 2023, was $2.1 million, reduced from $12.0 million in the previous year.
Third Quarter Operational Highlights
- With HydroGreen’s new stream of revenue in the previous quarter of Feed as a Service (“FaaS”), has added an additional four partners with Memorandum of Terms (“MOT”):
- Only July 6, 2023, the Company announced FaaS MOT with Crosswind Jerseys, a dairy in Elkton, South Dakota. Under the terms of the agreement, HydroGreen will supply Crosswind Jerseys with a contracted monthly delivery of 45 tons of HydroGreen feed.
- On July 21, 2023, the Company announced FaaS MOT with Johann Diary, a large dairy farm based in Fresno, California. Under the MOT with Johann Dairy, HydroGreen will deliver 10 tons of HydroGreen “As Fed” Feed (“Feed”) per day to Johann Dairy.
- On August 3, 2023, the Company announced FaaS MOT with Van Kooi Diary, a large dairy farm based in Riverdale, California. Van Der Kooi has signed on to purchase 10,000 tons of sprouted-grain feed per year from HydroGreen’s future feed facility in Riverdale, California.
- On August 18, 2023, the Company announced FaaS MOT with Bar None Dairy, a dairy farm based in Helm, California.
- As of July 31, 2023, the Company defaulted on the $261,600 of accrued interest on the convertible loans; terms of repayment are currently in discussion.
- On August 24, 2023, the Company announced the sale of six HydroGreen GLS 808 systems, the largest order to date, to Cirio Societa Agricola SRL of Fagianeria, Italy. Cirio Agricola is one of the most advanced Dairies in Italy and marks the entrance of the Company into the European market further validating HydroGreen’s technology in the production of animal feed.
“Our third quarter is defining for the Company as it clearly delineates the newly adopted corporate strategy of focusing on equipment sales to global subsidized markets combined with the newly developed recurring revenue model of direct feed sales to dairy operators in the central valley of California through FaaS. The newly developed realignment of market strategies better aligns the Company with greater market potential of equipment sales opportunities and the demand for the physical fodder sales in the US market,” said Michael Kyne, CFO of CubicFarms.
The Company’s third quarter financial statements and management’s discussion and analysis will be issued and filed on SEDAR+ at www.sedarplus.ca on November 14, 2023 and will be available on the same day on cubicfarms.com.