- Over $53 million System Sales Pending Installation
- Additional $17.5 million HydroGreen System Commitments
VANCOUVER, B.C., November 15, 2021 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSX:CUB), the leader in local chain agricultural technology, today reported its third quarter financial and operating results for the three and nine months ended September 30, 2021.
“The Company continues to make steady progress on the planned equipment upgrades and improvements to automation and scalability for our Farmer Partners,” said Tim Fernback, Chief Financial Officer, CubicFarms. “As with most global manufacturing and shipping timelines, CubicFarms witnessed the effects of supply chain delays in the third quarter of 2021, with planned revenue shifted from 2021 to 2022. Site readiness is underway, with three CubicFarm System installations of a total of 50 modules scheduled in 2022. The Company also has commitments for more than 80 HydroGreen Grow System modules from the HydroGreen Dealer Network, with revenue recognized once installations are complete.”
“The Company is positioned for continued growth during this expansion phase of the business,” said Jeff Booth, Chair of CubicFarms’ Board of Directors. “The first FreshHub will be the largest project to date for CubicFarms with an innovative and efficient design. The recently announced HydroGreen Certified Dealer Network is attracting highly-qualified new customers connected to the dealers, known as trusted consultants within the agriculture industry.”
Third Quarter Financial Results
- The Company currently has a total of 272 modules pending installation. System sales pending manufacturing and installation are valued at approximately $53 million.
- An additional $17.5 million in HydroGreen Certified Dealer commitments for 2022, representing more than 80 HydroGreen Grow System modules.
- Revenue for the three months ended September 30, 2021, was $191,157. Revenue was $4,453,972 in the nine months ended September 30, 2021, and includes HydroGreen equipment, customer seeds and other consumables, as well as CubicFarm Gardens consulting services sold in the period.
- The Company increased its workforce from 71 to 150 full-time employees and contractors as of September 30, 2021.
- Working capital increased from $15,244,610 as of December 31, 2020, to $19,803,440 as of September 30, 2021, an increase of 30%.
- Net loss for the three months ended September 30, 2021, was $7,964,949, a 111% increase from the same period ending September 30, 2020. For the nine months ended September 30, 2021, the net loss was $18,114,078, an 89% increase from the same period of the previous calendar year.
- Research and development (R&D) expenses of $1,825,097 were incurred in the three months ended September 30, 2021, an increase of 71% from the same period of the previous calendar year.
- General administrative expenses increased 104% to $5,051,894 for the three months ended September 30, 2021, reflecting the continued expansion of the Company’s business and necessary staffing additions.
Third Quarter Operational Highlights
- On August 18, 2021, the Company was selected as winner of the “Overall Indoor Farming Solution Provider of the Year” award in the 2021 AgTech Breakthrough Awards conducted by AgTech Breakthrough, a leading market intelligence organization that recognizes the top companies, technologies, and products in the global AgTech market.
- On August 31, 2021, the Company announced that it has selected Microsoft’s technology to launch the next generation of indoor farming technologies for fresh food and fresh livestock feed. CubicFarms is working with Microsoft and using Microsoft Azure IoT (“Internet of Things”) as a key part of the Company’s enterprise level platform. CubicFarms selected Azure IoT to give the Company the flexibility necessary to develop custom modules that support diverse hardware and device requirements, while also delivering regulatory and compliance security to keep data secure.
- On September 1, 2021, the Company announced interest in a new project to deliver 96 CubicFarm System modules, the Company’s largest project to date. This next generation high-density system, called FreshHub, is the next level of indoor growing aiming to significantly localize food production. Leveraging the land and water efficiencies of the CubicFarm System technology, the new stacked configuration of this FreshHub will include 96 modules occupying one acre of land. New features of this FreshHub include a new agricultural building design that reduces capital costs, new farm infrastructure, workflow design, automation components, and proprietary software.
- On September 1, 2021, the Company announced that its common shares commenced trading on the TSX as of the opening of trading on Wednesday, September 1, 2021. The Company’s common shares continue to trade under the symbol “CUB,” which ceased trading on the TSXV concurrent with the commencement of trading on the TSX.
- On September 7, 2021, the Business Intelligence Group named the HydroGreen Grow System as “Sustainability Product of the Year” in the 2021 Sustainability Awards program. The Sustainability Awards honour those people, teams, and organizations who have made sustainability an integral part of their business practice or overall mission.
- The Company is contributing to the Sustainable Development Goals outlined by the United Nations and will expand its reporting in future quarters to include Environmental, Social, and Governance (ESG).
The Company’s third quarter financial statements and management’s discussion and analysis will be issued and filed on SEDAR at www.sedar.com on November 15, 2021, and will be available on the same day on CubicFarms’ website at https://cubicfarms-web.azurewebsites.net/investors/.
CubicFarms is the leader in local chain agricultural technology, developing and deploying technology to feed a changing world. Its proprietary ag-tech solutions enable growers to produce high quality, predictable produce and fresh livestock feed with HydroGreen Nutrition Technology, a division of CubicFarm Systems Corp. The CubicFarms™ system contains patented technology for growing leafy greens and other crops onsite, indoors, all year round. CubicFarms provides an efficient, localized food supply solution that benefits our people, planet, and economy.
For more information, please visit www.cubicfarms.com.
On behalf of the Board of Directors
Dave Dinesen, Chief Executive Officer
This release may contain certain “forward-looking statements” or “forward-looking information” under applicable securities laws. Forward-looking terms such as “may,” “will,” “could,” “should,” “would,” “plan,” “potential,” “intend,” “anticipate,” “project,” “target,” “believe,” “plan,” “outlook,” “estimate,” or “expect” and other words, terms and phrases of similar nature are often intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. Forward-looking statements are based on certain key expectations and assumptions made by the Company. Although management of the Company believes that the expectations and assumptions on which such forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct.