• CubicFarm Systems, a provider of vertical farming technology solutions for growing fresh produce and livestock feed, has reported its financial and operating results for Q1 2023.

• The company generated revenue of CAD 455,392 (~USD 338,125) in Q1 2023, up 87% YoY, driven by increases in sales within the fresh (+60% YoY) and feed divisions (+422% YoY). The company noted that its sales fluctuate on a QoQ basis, leading to financial results fluctuating from period to period.

• Gross profit for Q1 2023 was CAD 69,626 (~USD 51,752) or 15% of revenue, down 37% YoY. Net losses for Q1 2023 were CAD 4.7 million (USD 3.5 million), which improved by 47% YoY due to reduced operating expenses (-52% YoY) from the company's cost reduction measures.

Key operational highlights

• Leases FreshHub intellectual property: The company leased FreshHub machinery and equipment to Langley Indoor Produce and has the option to retain up to 97.6% of the equity interest in this entity. The company also granted Langley Indoor Produce a limited license for the FreshHub intellectual property, specifically for indoor, non-containerized implementation.

• HydroGreen installs machines in Utah: HydroGreen, the livestock feed subsidiary of the company, completed the installation of two machines at Jim Cheney in Utah.

• Closes overnight marketed public offering: The company closed its previously announced overnight marketed public offering, issuing a total of 56,027,000 units at a price of CAD 0.05 (~USD 0.04) per unit for gross proceeds of CAD 2,801,350 (~USD 2,082,213), including 10,261,000 units issued to reduce the working capital obligations of the company for CAD 513,050 (~USD 381,339) in payables.