VANCOUVER, BC, Nov. 14, 2022 – CubicFarm® Systems Corp. (“CubicFarms” or the “Company”) (TSX: CUB), reports its quarterly financial and operating results for the three and nine months ended September 30, 2022. All amounts are in Canadian dollars, unless otherwise stated.
“With the recent leadership transitions now in place at the board and executive level, CubicFarms is strategically focused to be a leaner, profit-focused operation exercising financial discipline,” said Dan Burns, Board Chair of CubicFarms. “The Special Committee of the Board of Directors continues to review and evaluate our corporate structure to explore strategic directions and options for HydroGreen and CubicFarms. Our strategy is to achieve fiscal prudence through continued cost controls while seeking new market potential for our lines of business and new financing prospects.”
“As a team we are expanding our pipeline and I am excited to see the growing interest in our technologies from both domestic and international markets,” said John de Jonge, Interim CEO. “We have implemented effective cost control measures to continuously right-size our business and are on track to reduce forward cash expenses by roughly 50%.”
Highlights of 2022 Third Quarter Financial Results
- Revenue for the three months ended September 30, 2022, was $0.3 million, up from $0.2 million in the prior year. Revenue for the nine months ended September 30, 2022, was $3.5 million, compared to $4.5 million in the prior year.
- Net losses for the three and nine months ended September 30, 2022, was $12.7 million and $30.5 million respectively, compared to net losses of $8.0 million and $18.1 million in the prior year. Included in the third quarter net losses was a non-cash impairment of $3.5 million relating to the Company’s CubicFarms business unit.
- The Company’s operating expenses, comprising of selling, general & administrative and research & development expenses, was $8.5 million for the three months ended September 30, 2022 ($8.3 million net of estimated one-time expenses relating to employee terminations), reduced from $8.8 million in the prior year and $9.3 million for the three months ended June 30, 2022. As a result of the Company’s recent implementations of cost reduction measures, management expects further reductions in its run-rate expenses and expects annualized savings of $15.6 million, or 49.4% of the Company’s cash-based operating expenses for the trailing 12-month period ended September 30, 2022.
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 behalf of the Board of Directors
Daniel Burns, Chair of the Board of Directors
Forward looking and other cautionary statements
Certain statements in this release constitute “forward-looking statements” or “forward-looking information” within the meaning of applicable securities laws, including, without limitation, statements with respect to: the Company’s strategy in respect of cost controls while seeking new market potential and new financing prospects, and expected savings from the Company’s cost reduction measures. Such statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by such forward-looking statements. Such statements can be identified by the use of words such as “intend”, “expect”, “believe”, “plan”, “anticipate”, “estimate”, “scheduled”, “forecast”, “predict”, and other similar terminology, or state that certain actions, events, or results “may”, “can”, “could”, “would”, “might”, or “will” be taken, occur, or be achieved.
These statements reflect the Company’s current expectations regarding future events, performance, and results and speak only as of the date of this news release. Consequently, there can be no assurances that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Except as required by securities disclosure laws and regulations applicable to the Company, the Company undertakes no obligation to update these forward-looking statements if the Company’s expectations regarding future events, performance, or results change.
About HydroGreen and CubicFarms
HydroGreen’s Automated Vertical Pastures™ technology produces high-energy fresh forage at commercial scale 365 days a year using a unique process to sprout grains, such as barley and wheat, in a controlled environment with minimal use of land, labour, and water. Automated Vertical Pastures™ not only provides a superior nutritious feed to benefit the animal, improving feed efficiency, cow health, nutrition, and performance outcomes, but also enables significant environmental benefits to the farm while helping to meet increasing demand for valuable farm-based inset and offset carbon credits.
CubicFarms is a leading agricultural technology company developing and deploying proprietary ag-tech technologies to 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 on-site, indoors, year-round.