Key Takeaways
- Above Food Ingredients filed its six-month financials, bringing it into compliance with Nasdaq Listing Rule 5250(c)(2).
- The reported revenue of US$65.2 million primarily reflects discontinued business operations.
- Net loss totaled US$25.9 million, including over US$14 million in non-recurring merger costs.
- Strategic pivot underway following the acquisition of Stricks Ag LLC and pending acquisition of Palm Global Technologies Ltd.
- The company is targeting higher-margin, lower-capital operations and expects improved profitability in future filings.
Financial Overview for the Period Ended July 31, 2024
Above Food Ingredients Inc. (NASDAQ: ABVE) announced its unaudited financial results for the six-month period ending July 31, 2024. The company reported revenues of US$65.2 million (CAD$90.0 million) and a net loss of US$25.9 million (CAD$35.8 million). These figures include non-recurring business combination costs of US$14.1 million (CAD$19.4 million) associated with the completed merger with Bite Acquisition Corp. on June 28, 2024.
The company clarified that the financial results are not reflective of its current business model. Most of the operations reported in this period have since been discontinued as part of a strategic restructuring.
Strategic Realignment and Acquisition of Stricks Ag LLC
Since the end of the reporting period, Above Food Ingredients has shifted its focus to higher-margin and value-added products. A key milestone was the acquisition of Stricks Ag LLC, a Montana-based specialty ingredient company. Stricks generated US$164 million in revenue in fiscal year 2023, with an average annual Adjusted EBITDA of US$5.3 million over 2021–2023.
This transition marks a departure from Above Food Ingredients’ previous reliance on lower-margin, commoditized agricultural activities.
Future Outlook and Above Food’s Palm Global Acquisition
In February 2025, Above Food Ingredients signed a Letter of Intent to acquire Palm Global Technologies Ltd. This acquisition is expected to broaden the company’s market exposure and introduce new capabilities in AgriTech, FinTech, EdTech, and Asset Tokenization.
Palm Global’s footprint in Latin America, Africa, and Asia is anticipated to help the company scale and diversify its revenue sources. Management projects that the integration of Palm Global will contribute to stabilizing the company’s current revenue run-rate of US$145 million (CAD$200 million) and support its aim to return to profitability.
Above Food Nasdaq Compliance Status
The filing of the financial results resolves one of the key outstanding requirements to maintain compliance with Nasdaq’s listing standards. The remaining concern relates to the company’s share price trading below $1.00 per share, which it plans to address before the scheduled Nasdaq hearing on May 22, 2025.
Above Food Ingredients has also reduced its corporate debt burden and continues to realign its operations to achieve positive adjusted EBITDA and break-even net income in future periods.
Read the complete financial results here.
