Financial Performance - Total assets increased to $151.65 million as of September 30, 2025, compared to $141.06 million at the end of 2024, reflecting a growth of approximately 7.5%[3] - Cash and cash equivalents decreased to $9.34 million from $18.86 million, representing a decline of about 50.5%[3] - Operating loss for the nine months ended September 30, 2025, was $45.19 million, up from $24.90 million in the same period of 2024, indicating an increase of approximately 81.5%[5] - The total comprehensive loss for the nine months ended September 30, 2025, was $35.17 million, compared to $32.96 million in the same period of 2024, reflecting an increase of approximately 6.7%[5] - Brazil Potash Corp. incurred a loss of $45,171,662 for the nine months ended September 30, 2025, compared to a loss of $24,973,883 for the same period in 2024, indicating an increase in losses of approximately 81%[17] - The basic and diluted loss per share for the nine months ended September 30, 2025, was $1.14, compared to $0.70 in 2024, indicating a decline of approximately 62.9%[5] Cash Flow and Liquidity - The company reported a net cash used in operating activities of $8.85 million for the nine months ended September 30, 2025, compared to $0.80 million in 2024[9] - The company had working capital of $8,279,107 as of September 30, 2025, down from $17,863,159 at the end of 2024, representing a decrease of approximately 54%[17] - As of September 30, 2025, the Company had cash and cash equivalents of $9,336,850 to settle current liabilities of $1,698,811, down from $18,861,029 and $3,087,293, respectively, at December 31, 2024[78] Equity and Liabilities - Total liabilities decreased to $4.59 million as of September 30, 2025, from $5.64 million at the end of 2024, a reduction of approximately 18.6%[3] - The company’s equity increased to $147.06 million as of September 30, 2025, from $135.42 million at the end of 2024, representing a growth of about 8.6%[3] - The accumulated deficit as of September 30, 2025, was $191,654,214, up from $158,573,664 as of December 31, 2024, reflecting a year-to-date increase of about 21%[17] Share-Based Compensation - Share-based compensation expenses rose significantly to $36.34 million for the nine months ended September 30, 2025, compared to $20.74 million in 2024, marking an increase of about 75.4%[5] - For the nine months ended September 30, 2025, the Company recorded share-based compensation expenses of $29,184,275, an increase from $16,499,403 for the same period in 2024[88] - The total expense related to the vesting of DSUs for the nine months ended September 30, 2025, was $2,078,985, compared to $10,108,561 for the same period in 2024[60] - The expense recognized for RSUs during the nine months ended September 30, 2025, was $23,996,712, compared to $8,954,980 for the same period in 2024[62] Project Development and Licenses - Brazil Potash Corp. received all 21 Installation Licenses required for the construction of the Autazes Project as of August 2024[15] - On September 25, 2023, over 90% of the Mura indigenous people voted in support of permitting and constructing the Autazes Project, with 94% participation from the invited tribe[13] - The company submitted an application for the Installation License to the Brazilian Amazonas Environmental Protection Institute on August 25, 2023, to advance its permitting process[14] - A definitive commercial offtake agreement was executed with Keytrade for a 10-year commitment to purchase up to ~900,000 tons of potash annually from the Autazes Potash Project[97] Financing Activities - Cash flows from financing activities totaled $5.89 million for the nine months ended September 30, 2025, compared to $3.02 million in 2024, an increase of approximately 95.5%[9] - The Company issued 3,750,000 common shares for gross proceeds of $6,064,500 under an equity line of credit agreement during the nine months ended September 30, 2025[37] - The initial public offering (IPO) on November 29, 2024, raised gross proceeds of $30,000,000 from the sale of 2,000,000 common shares at $15.00 per share[39] - The Company has an equity line of credit agreement allowing it to sell up to $75 million worth of common shares over a 24-month period[36] Legal and Regulatory Matters - The Company has been involved in lawsuits regarding its environmental and construction licenses since 2016, successfully defending against claims, but recent counterclaims remain undetermined[93] - A supplier filed a claim for $367,080 against the Company, which has not been recorded as the Company believes the claim is without merit[96] Management and Compensation - Key management personnel compensation for the nine months ended September 30, 2025, totaled $32,074,945, compared to $17,804,877 for the same period in 2024[87] - The Company has management contracts requiring payments of approximately $19,699,000 upon a change in control and $9,378,000 upon termination, which have not been recorded as no triggering event has occurred[92] Accounting and Reporting - The Company is assessing the impacts of new accounting standards, including IFRS 18, which aims to enhance transparency and comparability in financial reporting, effective from January 1, 2027[25] - The total amounts receivable decreased from $594,940 as of December 31, 2024, to $316,864 as of September 30, 2025, a decline of approximately 47%[27] Asset Management - The net book value of property and equipment as of September 30, 2025, was $919,081, compared to $791,597 at the beginning of the year, reflecting an increase of about 16%[28] - Exploration and evaluation assets increased to $140,196,244 as of September 30, 2025, up from $118,785,555 at the end of 2024, reflecting an increase of about 18%[32] - As of September 30, 2025, total trade payables and accrued liabilities decreased to $1,601,083 from $3,016,988 as of December 31, 2024, representing a reduction of approximately 47%[33] Lease Liabilities - The Company recognized a right-of-use asset and a lease liability of $778,479 upon entering into lease agreements for 15 rural properties[29] - The balance of lease liabilities increased to $655,445 as of September 30, 2025, from $605,605 at the end of 2024, indicating a growth of approximately 8%[31] - The Company recognized $65,078 in interest expense related to lease liabilities for the nine months ended September 30, 2025, compared to $nil for the same period in 2024[30]
Brazil Potash Corp(GRO) - 2025 Q3 - Quarterly Report