AgriFORCE Reports $16.3 Million Net Loss Despite Revenue Growth to $67,887

AgriFORCE Growing Systems Ltd. reported a significant decline in its financial performance for the fiscal year ending December 31, 2024, with a net loss of approximately $16.3 million, compared to a loss of $11.7 million in the previous year. The company's revenue increased to $67,887, up from $16,281 in 2023, primarily driven by the sale of hydroxyl generating devices and digital assets from its Bitcoin mining operations. However, the overall financial health of the company remains precarious, with an accumulated deficit of $60.8 million and negative cash flow from operating activities amounting to $5.3 million.

The company underwent notable strategic changes during the year, including the acquisition of Radical Clean Solutions, which allowed AgriFORCE to expand its product offerings in the hydroxyl generation market. Additionally, the company entered the sustainable Bitcoin mining sector, acquiring three facilities in Alberta and Ohio, which collectively house 1,120 BITMAIN Antminer S19j units. This strategic pivot aims to leverage excess heat and carbon emissions from Bitcoin mining to enhance agricultural productivity while reducing environmental impact.

Operationally, AgriFORCE has made strides in product development, particularly with its UN(THINK) Awakened Flour™, which is designed to offer health benefits over traditional flour. The company has established supply chain logistics and is in the process of qualifying partners in the U.S. to support production. However, the company reported a significant impairment loss of $4.1 million on its intangible assets, reflecting challenges in achieving projected growth and market conditions.

As of December 31, 2024, AgriFORCE had a total of 1,550,296 common shares outstanding, following a reverse stock split executed in December 2024. The company has also reduced its workforce, resulting in decreased operating expenses, which fell by approximately 7% compared to the previous year. Despite these cost-cutting measures, the company continues to face challenges in generating positive cash flow and sustaining operations without additional financing.

Looking ahead, AgriFORCE's management has expressed the need for further capital to support its growth plans and operations. The company is actively seeking additional financing through equity and debt offerings, although there is no assurance that such funding will be available on favorable terms. The ongoing volatility in the cryptocurrency market and the company's reliance on digital asset production for revenue generation add further uncertainty to its financial outlook.