Mr. Dave Dinesen reports
CUBICFARM SYSTEMS CORP. ISSUES FIRST QUARTER FINANCIAL RESULTS
Cubicfarm Systems Corp. has released its financial and operating results for the three months ended Sept. 30, 2019.
Key financial highlights:
- Revenue for the three months ended Sept. 30, 2019, was $240,701, and gross margin was 50 per cent.
- Total operating and general administrative expenses were $1,693,489, compared with $286,213 for the same period in the previous year.
- Selling expenses, which include commissions and freight, were $23,050, compared with $27,229 for the three months ended Sept. 30, 2018.
- The company incurred research expenses in the amount of $356,746 for further automation of its systems, growth of new crops in the systems and further transformation of these crops through juicing. These costs include salaries, materials, parts and consumables related to research activities. Research costs for the three months in the previous year were $171,212.
- Net loss and comprehensive loss for the three months ended Sept. 30, 2019, were $2,276,147, compared with $468,777 for the three months ended Sept. 30, 2018.
- On July 9, 2019, Cubicfarm's common shares commenced trading on the TSX Venture Exchange as a Tier 1 issuer under the symbol CUB.
- On July 11, 2019, the company announced a signed agreement for a large-scale commercial Cubicfarm system in the Calgary, Alta., area and received $412,764 in June, 2019, from the customer as a deposit. The agreement and deposit cover the Calgary region, where this customer will be the exclusive Cubicfarm licensee. The system's plan includes 20 Cubicfarm patented growing machines, two patented germination machines and a proprietary supporting irrigation system. The total sales agreement is valued at approximately $3.2-million (U.S.), and the company expects to complete the installation of the system by the end of March, 2020.
- On Sept. 24, 2019, the company appointed Rodrigo Santana as its interim chief financial officer (CFO). Supported by the Cubicfarm finance team, Mr. Santana will also continue performing his role as chief operating officer (COO). Mr. Santana is very experienced in the dual role of COO and CFO, as he held both positions in his previous employment at Sacre-Davey Engineering.
- On Oct. 8, 2019, the company announced that it finalized an agreement for the sale of a large-scale Cubicfarm system in Montana, United States, and received an initial deposit of $332,356 in October, 2019, from the customer. This was the company's second sale of a large-scale system in the United States. The system's plan includes 18 Cubicfarm patented growing machines, two patented germination machines and a proprietary supporting irrigation system. The total sales agreement is approximately $3-million (U.S.), representing the second-largest sale agreement to date. The company expects to complete the installation of the system by the end of March, 2020.
- On Oct. 28, 2019, the company announced that ZenCube, its vertical-farming machine for growing hemp and cannabis, is fully operational at a showcase and R&D (research and development) facility in Langley, Canada.
- On Nov. 6, 2019, the company announced that it has entered into a global reseller agreement with Groviv, a leader in the science and technology of controlled-environment agriculture. Groviv, a division of Nu Skin Enterprises -- a minority investor in Cubicfarm -- will lead global sales for Cubicfarm and has appointed Joe Huston, its vice-president of business development, to direct the effort. Mr. Huston has extensive retail sales and distribution experience, working with brands, such as Walmart, Kroger and Costco.
Cubicfarm chief executive officer Dave Dinesen commented: "We are pleased with the progress we made this quarter in sales and new partnerships. Our financial results reflect a company that anticipates significant growth, where investments in staffing up our team, increasing automation and expanding the crop varieties on offer to our customers position us to capture strategic international markets and drive sales."
Cubicfarm's first quarter financial statements and management's discussion and analysis will be issued and filed on SEDAR on Nov. 28, 2019, and will be available on the same day on Cubicfarm's website.
About Cubicfarm Systems Corp.
Cubicfarm is an ag-tech company, commercializing large-scale, vertical farming solutions for global industrial markets. Founded in 2015, the company's mission is to provide industries around the world with efficient growing systems capable of producing predictable crop yields. Cubicfarm offers turnkey, commercial-scale, hydroponic, automated vertical farm growing systems that can grow predictably and sustainably for 12 months of the year virtually anywhere on earth. Cubicfarm enables its customers in the fresh produce, animal feed, nutraceutical and hemp/cannabis industries to grow locally and to provide their markets with safe, sustainable, secure and fresh ingredients that are consistent in colour, size, taste and nutrition, and allow for a longer shelf life.
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