Acquisitions and Investments - The company has completed two acquisitions in the sustainable Bitcoin mining industry, now operating three facilities with a total of 1,120 BITMAIN Antminer S19j units[162]. - The acquisition of Radical Clean Solutions, Inc. was completed, increasing the company's ownership from 14% to 100%, allowing full control over RCS[196]. - The acquisition of a bitcoin mining facility in Alberta, Canada, was completed for $1.5 million, enhancing the Company's operational capabilities[207]. - A second acquisition in Ohio was made for $4.55 million, including 900 S-19 J Pro BITMAIN Antminers, with a power purchase agreement at $0.04 per kWh[208]. - The Company has entered into a $50 million financing facility with institutional investors, utilizing part of the first tranche for acquisitions[216]. - Net cash used in investing activities was $4,765,000 for the acquisition of Bald Eagle Bitcoin Mining[240]. Financial Performance - The Company reported gross sales of $71,162 from the sale of 12 hydroxyl generating devices for the three months ended March 31, 2025, with no sales recorded in the same period of 2024[231]. - Operating expenses increased by $798,789 or 59% to $2,139,789 for the three months ended March 31, 2025, primarily due to increased wages and salaries, research and development, and investor relations expenses[232]. - The Company recorded a net loss of $145,455 for the three months ended March 31, 2025, with an accumulated deficit of $60,927,574 as of the same date[233]. - Net cash used in operating activities was $2,172,409 for the three months ended March 31, 2025, compared to $1,309,334 for the same period in 2024, reflecting a decrease of $863,075[237]. - The Company held $1,351,983 in cash as of March 31, 2025, an increase from $489,868 as of December 31, 2024[234]. - Net cash provided by financing activities was $8,188,000 for the three months ended March 31, 2025, compared to $1,000,000 for the same period in 2024[241]. - The Company plans to seek additional capital through debt or equity financing to fund operations over the next twelve months, raising substantial doubt about its ability to continue as a going concern[236]. - The Company experienced a significant improvement in the fair value of derivative liabilities by $3,000,680 due to conversions and stabilizing stock prices[244]. Product Development and Commercialization - The UN(THINK) Awakened Flour™ product line has been launched, providing over five times more fiber, up to two times more protein, and 23% less net carbs compared to conventional all-purpose flour[181]. - The patented CERES-MNG process allows for the production of baking flour that has 40 times more fiber, three times more protein, and 75% less net carbohydrates than standard flour[176]. - The company is advancing the commercialization of Hydroxyl clean room systems to reduce the spread of pathogens and diseases in processing facilities worldwide[189]. - The company is focusing on expanding its product range in the US and Canada while exploring international markets for its Hydroxyl devices[189]. - The company is developing several finished product prototypes, including a line of pancake mixes, which are ready for consumer testing[171]. - The Company generated its first revenue from the sale of RCS devices in late 2023 and signed an exclusive distribution agreement for the AgriFORCE/RCS hydroxyl generating devices in Mexico[197]. - The Company plans to expand its distribution network into Latin America and Asia by 2026[199]. Bitcoin Mining Operations - The Company has entered the sustainable Bitcoin mining industry, operating three facilities with a total of 1,120 BITMAIN Antminer S19j units, powered by sustainable energy[202]. - The average cost of Bitcoin mined is approximately $41,000, with specific costs of $56,000 in Alberta and $35,100 in Ohio[214]. - The Company has increased its hashrate by over 600% through recent acquisitions, positioning itself as a leader in sustainable energy and cryptocurrency innovation[217]. - The operations in Ohio are expected to create new job opportunities and enhance food security, addressing local challenges[218][219]. - The Company holds all mined Bitcoin in cold storage with BitGo, ensuring liquidity while maintaining a long-term holding strategy[211]. Technology Integration - The company plans to integrate artificial intelligence and blockchain into its FinTech systems for commercial farmers, enhancing financing capabilities[186]. - The Company is at the development stage and anticipates needing additional financing to commercialize its technology and support growth[235].
AgriFORCE Growing Systems .(AGRI) - 2025 Q1 - Quarterly Report