Key Takeaways:
- CubicFarms filed its first quarter financial and operating results for the three months ending March 31, 2024, including a reduction in corporate overhead expenses by 54%.
- Q1 2024 revenue was $0.02 million compared to $0.5 million in Q1 2023, as no ongoing projects were completed during the quarter.
- Net loss for Q1 2024 was $4.7 million, significantly reduced from the $9.0 million loss in the prior year, primarily due to cost reduction measures.
- The company plans to file Q2 2024 financials by October 25, 2024, and will seek to revoke the cease trade order issued by the British Columbia Securities Commission (BCSC).
First Quarter Financial Highlights
CubicFarm® Systems Corp. (“CubicFarms”), a leader in local chain agricultural technology, has released its Q1 2024 financial results for the three months ending March 31, 2024. The company reported revenue of $0.02 million, down from $0.5 million in the same period last year, due to ongoing projects that were not completed within the quarter.
Corporate overhead, including general and administrative, selling, and R&D expenses, amounted to $3.8 million for the period. This marks a significant reduction of $4.4 million, or 54%, from $8.1 million in Q1 2023, as the company continues to implement its cost-reduction strategy. The net loss for the first quarter was $4.7 million, a substantial improvement from the $9.0 million net loss reported in the previous year.
Operational Highlights and Outlook
Interim CEO of CubicFarms and President of HydroGreen, John de Jonge, commented on the company’s ongoing efforts to streamline operations. “As we move forward, CubicFarms is committed to continue operating as a lean, efficient business focused on disciplined growth. With HydroGreen, we are well-positioned to serve the dairy and cattle industries, which have a strong demand for our technology and feed solution,” de Jonge stated.
During the first quarter, CubicFarms signed two significant sales agreements for the sale of eleven HydroGreen GLS 808 units and two DGS machines, which were announced in January and March of 2024. These agreements are expected to drive future revenue as the company capitalizes on growing demand in the dairy and cattle industries, which continue to face challenges such as climate change, drought, and land scarcity.
Regulatory Update and Future Filings
CubicFarms also addressed the cease trade order (FFCTO) issued by the British Columbia Securities Commission (BCSC) on July 15, 2024, due to a delay in filing its financial results. The company has confirmed that it plans to file its Q2 financial statements for the three and six-month period ending June 30, 2024, by October 25, 2024. Following this filing, CubicFarms will apply to have the FFCTO revoked.
As part of the FFCTO, certain restrictions remain in place for trading the company’s securities. However, beneficial security holders who acquired shares before July 15, 2024, and who were not insiders at that time, may still trade under specific conditions.
CubicFarms will provide further updates as the process continues.
The Q1 2024 financial filings, as well as management’s discussion and analysis, are available under the company’s profile on SEDAR and on CubicFarms’ website.
CubicFarm Latest News
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CubicFarms’ Subsidiary HydroGreen Announces New Feed Center in Chowchilla, California (2024/06/14)
CubicFarm’s ruminant livestock feed subsidiary, HydroGreen Inc., has identified a new feed center site in Chowchilla, California, to support local dairy operations and enhance sustainability. The facility, equipped with 40 GLS 808 machines, will produce 128 tons of fresh sprouted grains daily, ensuring the feed is supplied at market prices. HydroGreen’s CEO, John de Jonge, emphasized the importance of localizing feed production to reduce transportation costs and environmental impact. The Chowchilla feed center will leverage the agricultural strengths of the California Central Valley, which plays a crucial role in the nation’s dairy supply.
Announces Sale of HydroGreen DGS-66 Production Systems to Upgrowth Ag (2024/05/15)
CubicFarm® Systems Corp. (TSXV: CUB) has announced a significant sale through its subsidiary, HydroGreen Inc., involving the sale of two DGS-66 Production Systems to Upgrowth Ag. This transaction includes an initial 50% payment, with the remaining 50% due upon shipment confirmation. Upgrowth Ag aims to revolutionize agricultural practices and expand scalability within the United States and Asia, integrating traditional farming insights with modern agricultural technology. HydroGreen’s DGS-66 systems are tailored to the needs of innovative farms like those operated by Upgrowth Ag, enabling farmers to enhance the capacity and sustainability of their operations. The DGS-66 Production System is designed for controlled environments, ensuring the daily production of fresh forage regardless of external weather conditions, thus supporting the sustainability and efficiency of agricultural operations.
HydroGreen Announces Landmark Partnership with Plainview Beef Company (2024/04/03)
CubicFarm® Systems Corp. has signed an exclusive Feed as a Service (FaaS) agreement with Plainview Beef Company to advance sustainable beef production. HydroGreen Inc., a subsidiary of CubicFarm, will construct and operate multiple commercial-scale feed centers. The initiative begins with setting up 2 DGS-66 production systems in Wray, Colorado, for an initial feed trial, followed by a larger scale operation involving 20 GLS-808 machines. This partnership aims to enhance the quality and taste of Plainview Beef’s premium grass-fed beef, aligning with the consumer shift towards health-conscious dietary choices. The collaboration is seen as a game-changer that will redefine the grass-fed beef market standards and emphasize the value of HydroGreen’s products.
Expands HydroGreen’s Global Footprint with Strategic Partnerships in Ireland and the Middle East (2024/03/26)
CubicFarm® Systems Corp. (TSXV: CUB) has announced a significant step forward in its international expansion efforts through its subsidiary, HydroGreen Inc. The company has signed an exclusivity agreement with Agrotopia Ireland Limited for the purchase of four additional HydroGreen Units, marking a pivotal moment for HydroGreen’s operations in Ireland and the Middle East. The partnership aims to offer eco-friendly, nutrient-rich feed solutions that have the potential to revolutionize farming practices, enhance livestock welfare, and mitigate environmental impacts.
HydroGreen Secures Strategic Partnership with BoomA Food Group in Australia (2024/03/21)
CubicFarm® Systems Corp (TSXV: CUB) has announced a partnership between its subsidiary, HydroGreen, and BoomA Food Group, a food producer in Australia. HydroGreen will supply BoomA with 10 HydroGreen machines and 66 units, which are expected to produce over 30 tonnes of feed daily. This partnership aims to promote sustainable food production and enhance dairy and beef production efficiency. The strategic alignment also allows HydroGreen to expand its international footprint while concentrating on FaaS in the domestic US market.
Settlement Marks a Positive Turn for HydroGreen Inc. (2024/03/18)
HydroGreen Inc. has reached a settlement with Burnett Land & Livestock, closing a lawsuit filed against them in Wyoming in 2023. The agreement has enabled HydroGreen to recover 12 commercial GLS 808 production units, alongside essential grain sizers, conveyor systems, grain bins, and other ancillary equipment. With this recovery, HydroGreen plans to establish itself as a leading producer of fresh sprouted grains in the United States.
CubicFarm® Systems Corp. Announces Share Consolidation (2024/01/18)
CubicFarm® Systems Corp. will consolidate its issued and outstanding common shares on the basis of one post-consolidation share for every ten pre-consolidation shares. The total number of common shares will be reduced from approximately 263 million to about 26 million. Shareholder approval is not required as this is a strategic step to streamline the share structure. The consolidation will adjust convertible securities and fractional shares. After the consolidation, the company will have new CUSIP and ISIN numbers. Shareholders with electronic holdings do not need to take any action. The consolidation is subject to approval from the TSX Venture Exchange and trading will begin on January 19, 2024.
HydroGreen’s Enters Irish Market (2024/01/04)
CubicFarm Systems Corp.’s HydroGreen has made a significant sale to an Irish agricultural company, marking its expansion in Ireland and potentially the UK. The sale aligns with the EU’s focus on innovative agricultural technology and Ireland’s commitment to sustainable food systems. The partnership also includes research and development trials with local agencies and universities. HydroGreen’s innovative approach to smart farming positions it as a key player in the future of agricultural technology.
CubicFarms’ Delisting From TSX (2023/12/18)
CubicFarm Systems Corp., a prominent local chain agricultural technology player, recently announced a significant change in its stock market listing. The company’s common shares and 8.00% unsecured convertible debentures, previously listed on the Toronto Stock Exchange (TSX), will be delisted after market close on December 18, 2023. This delisting is attributed to the company’s failure to meet the TSX’s continued listing requirements. After its delisting from TSX, CubicFarms will begin trading on the TSX Venture Exchange starting December 19, 2023. This move signifies a new chapter for the company in a different trading environment, potentially offering different opportunities and challenges.
CubicFarm Systems Corp Latest Financial Results (2023/11/15)
CubicFarm® Systems Corp. (TSX: CUB) reported a decrease in revenue for Q3 2023, recording $59,100, down from $325,480 in the same period last year. However, the company showed a significant reduction in net losses, which were $2.2 million for the quarter, a significant improvement from the $12.7 million loss in the previous year. The quarter was marked by significant operational progress, particularly in the Feed as a Service (FaaS) segment. CubicFarms announced a Memorandum of Terms with four new partners, expanding its reach in the dairy industry.
CubicFarms Announces Results of AGM of Shareholders 2023 (2023/10/05)
CubicFarm Systems Corp. announced the results of its Annual General and Special Meeting of shareholders. Four directors were elected by ballot, namely Janet Wood, Michael McCarthy, Daniel Burns, and George David Cole. An auditor was authorized by resolution with a high percentage of votes in favor. Shareholders also approved a resolution amending the Company’s Articles. CubicFarms continues to focus on its HydroGreen technology, which offers Automated Vertical Pastures™, producing high-performance feed ingredients for livestock throughout the year. The company is committed to developing and deploying technology to feed a changing world, providing an efficient, localized food supply solution that benefits people, the planet, and the economy.
CubicFarms and HydroGreen Expand into International Markets Through Partnership with Seehof Agrar GmBH (2023/08/26)
CubicFarm® Systems Corp.’s subsidiary HydroGreen Inc. has partnered with Seehof Agrar GmBH to promote and sell its livestock feed equipment in Europe, the Middle East, and select countries in the Asia Pacific. The partnership aims to expand internationally and target subsidized markets. This collaboration will make sustainable and efficient feed solutions more accessible worldwide, enhancing global food security, and reducing the environmental footprint of agricultural production.
HydroGreen Signs Deal with Bar None Dairy for Sprouted-Grain Feed Production (2023/08/21)
HydroGreen, a subsidiary of CubicFarm Systems Corp., has signed a deal with Bar None Dairy to provide 6 tons of sprouted-grain feed daily from its upcoming second phase facility in Riverdale, California. The facility will house 10 HydroGreen machines with a production capacity of up to 34 tons of feed each day. This collaboration paves the way for potential sales expansion to other nearby dairy and beef enterprises. The Feed as a Service (FaaS) business framework, a groundbreaking approach in agriculture, ensures peak feed production, stringent quality control, and superior animal performance outcomes for producers.
CubicFarm Q2 2023: Thriving Progress (2023/08/16)
CubicFarm Systems Corp. reported impressive Q2 2023 financial and operational results, with revenue growth, cost reduction measures, and a focus on sustainable farming practices. The company’s introduction of “Feed as a Service” through its subsidiary, HydroGreen, and successful installations of HydroGreen units for livestock feed market players exemplify its commitment to innovation and expansion in the agricultural technology landscape. The recent appointment of Michael Brendan Kyne as Interim CFO highlights the company’s focus on maintaining financial stewardship and guiding sustainable growth.
CubicFarm Systems Corp Announces Extension for Annual General Meeting Dates (2023/08/02)
CubicFarm® Systems Corp. (TSX: CUB) has announced an extension for its Annual General Meeting (AGM) for the year ending December 31, 2022. The Toronto Stock Exchange has granted a three-month extension to hold the AGM from June 30, 2023, to September 30, 2023, and the Registrar of Companies has granted a similar extension from September 16, 2023, to December 16, 2023, under section 182(4) of the Business Corporations Act. The decision to postpone the AGM was determined by the Company’s management to be in the best interest of its shareholders, allowing time to consider potential transactions requiring security holder approval or potential consolidation of share capital.
CubicFarms’ HydroGreen Scores Strategic Agreement with Johann Dairy, Expands FaaS Model in California (2023/07/23)
CubicFarms’ subsidiary, HydroGreen, has partnered with Johann Dairy in California. HydroGreen plans to set up a facility at the Wilson Dairy in Riverdale equipped with 10 HydroGreen machines, potentially producing approximately 34 tons of feed daily. As per the terms of the collaboration, HydroGreen will deliver 10 tons of their specially designed “As Fed” Feed daily. This move acts as a testament to HydroGreen’s product credibility and holds potential for further expansion of sales to other dairy and beef operations in the area.
CubicFarms’ HydroGreen and Crosswind Jerseys Embark on Innovative Feed Partnership (2023/07/07)
HydroGreen Inc. and Crosswind Jerseys have partnered up for Feed as Service deliveries. HydroGreen will deliver 45 tons of feed per month from its Sioux Falls production facilities starting July 7, 2023. Crosswind Jerseys recognized the potential of HydroGreen’s feed to enhance the performance of its 2,100-strong dairy cow herd. Trials have shown considerable improvements, including a 12% boost in rumination activity and dry matter intake, a 5% rise in milk production, and an 8% increment in conception rates.
CubicFarms Reports Its Q1 2023 (2023/05/16)
CubicFarms reported increased revenue for Q1 2023 but also posted net losses of $4.7 million. The reduction in net losses is attributed to cost-cutting measures, which decreased operating expenses. Key highlights include partnerships with Langley Indoor Produce Ltd. and Jim Cheney Inc. and the completion of an overnight marketed public offering. The interim CFO expressed satisfaction with the results and reiterated the Company’s commitment to delivering value to shareholders and pursuing sustainable growth in the agricultural sector.
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CubicFarm Systems Corp released its financial results for the year ended December 31, 2022 (2023/05/03)
CubicFarm Systems Corp reported a drop in revenue for Q4 2022, with $0.2 million compared to $0.8 million in the previous year, and annual revenue of $3.6 million compared to $5.3 million in the prior year. The net loss for Q4 2022 widened significantly to $29.8 million, up from $11.2 million during the same period in 2021, and the net loss for the full year was $60.4 million compared to $29.4 million in the prior year. However, the company is optimistic about its cost reduction plan, which is projected to yield annual savings of $15.6 million in cash-based operating expenses. Despite the challenges faced in 2022, CubicFarm Systems Corp is determined to return to financial stability by continuing to implement its cost reduction strategy while reassessing its asset values and working towards enhancing machine sales.
Read the rest here.
Second Quarter 2022: Restructuring Process (2022/08/15)
CubicFarms focused on project execution and building a sales pipeline in Q2 2022. HydroGreen is nearing completion of its installation of AVPs at Burnett’s Land & Livestock. The company showcased its HydroGreen Innovation Center R&D facility to 400 National Holstein Convention conference attendees. Despite a net loss, the company has announced cost reduction measures, including workforce reduction and a centralized procurement structure. These measures will positively impact the company’s financial performance in Q3 2022.
Read the complete financial results here.
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