AgriFORCE Growing Systems .(US:AGRI)2025-11-14 21:08Bitcoin Mining Operations - The company entered the sustainable Bitcoin mining industry in 2024, acquiring three facilities with a total of 1,522 BITMAIN Antminer units, powered by sustainable energy [164][180]. - The average cost of Bitcoin mined is approximately $51,031, with Alberta generating 1 BTC every 59 days at a cost of $40,300, and Ohio generating 1 BTC every 19.6 days at a cost of $54,600 [193]. - The company has established a Bitcoin treasury strategy, holding up to 50% of mined assets, and has only sold three BTC to maintain operations [190]. - The company completed the acquisition of a Bitcoin mining facility in Alberta for $1.5 million and a facility in Ohio for $4.765 million, enhancing its commitment to sustainable energy solutions [186][187]. - The acquisition of the Redwater Bitcoin Mining Facility increased the Company's hash rate by over 600% [195]. - Revenue from bitcoin mining for the three months ended September 30, 2025, was $525,914, and for the nine months, it was $1,250,592, with the Company mining 4.7 BTC and 12.2 BTC respectively [207]. - The Company created new job opportunities in advanced technology and sustainable agriculture, addressing workforce development needs in Ohio [197]. Financial Performance - Total operating expenses for the three months ended September 30, 2025, decreased by $2.3 million, or 43%, compared to the same period in 2024 [210]. - Operating expenses for the nine months ended September 30, 2025, decreased by $0.8 million, or 8%, compared to the same period in 2024 [211]. - Net loss of $16,557,023 recorded for the nine months ended September 30, 2025, with an accumulated deficit of $77,339,142 [218]. - Net cash used in operating activities increased by $2,005,085, totaling $5,434,274 for the nine months ended September 30, 2025 [221]. - Net cash used in investing activities was $5,516,822, including $4,765,000 for the Bald Eagle Bitcoin Mining Acquisition [224]. - Net cash provided by financing activities was $11,465,126, primarily from net proceeds of debentures totaling $9,795,000 [225]. Expenses and Compensation - Share-based compensation increased by $1,074,556, or 1,691%, during the three months ended September 30, 2025 [210]. - Share-based compensation increased by $1,218,932, or 955%, due to compensation issued to the Board of Directors, CEO, and CFO [212]. - Wages and salaries increased by $427,109, or 35%, due to increased staffing for Bitcoin mining and corporate [212]. - Consulting expenses decreased by $137,719, or 42%, due to limited services obtained from outside consultants [212]. - Research and development expenses decreased by $13,688, or 269%, due to settlement and write-off of RCS related expenses [212]. - Total other expenses increased by $5,783,940, or 3,800%, for the three months ended September 30, 2025 compared to the same period in 2024 [213]. - Intangible asset impairment of $4,137,271 did not reoccur in the nine months ended September 30, 2025 [212]. Strategic Initiatives - The company’s UN(THINK)™ Awakened Flour™ product line has been developed, offering enhanced nutrition with over five times more fiber and up to two times more protein compared to conventional flour [177]. - The company has established supply chain logistics with warehouses in Canada and the US, and is in discussions with bakeries for product integration [169]. - The company’s modular architecture allows for cryptocurrency mining and tailored compute capabilities for AI and edge computing [168]. - The company is developing a plan to utilize waste heat from mining operations for aquaculture, aiming to produce shrimp and micro-greens [182][185]. - The Company plans to rely on exemptions provided by the JOBS Act, including delaying the adoption of certain accounting standards [204]. - The Company appointed Peter Wylie as Chief Operating Officer effective November 5, 2025, bringing significant operational financial experience [200]. - The Company is committed to enhancing food security in Ohio, where over 14% of households face food insecurity challenges [197].