Future Farm Technologies Inc FFRMF

RE:RE:Financials Out...Finally

[Canuck21C]

It has to be noted that a miracle did not happen.  The Q1 financials were not announced at the same time as YE.  That means that, once again, they are in default of a regulatory filing having not met the July 31st deadline for the quarter ending May 31st.  There has been no mention of that so far from FFT. 

As SB predicted, the balance sheet as of Feb 28th looks more or less OK.  2M in cash although that is somewhat offset by 689K in current liabilities.  FFT did say in their comments that company does not have sufficient funds to operate during the coming 12 months so will have to look at funding it through equity or debt raises.  

Three things that popped out at me when I had a first look at the YE statements (I encourage others to also supply their thoughts on them)
:
1.  There was a lot of action in the latter half of 2016 when a number of big announcements were made.  Since then, they all seem to have withered on the vine.  News on the vertical farming prototype farm in Rhode Island and the Baltimore, Maryland project were supposed to showcase our CEA capabilities and also supposed to attract that juicy funding from the US Treasury's New Markets Tax Credit Program.  This was something that Director Craig Stanley and his CBO Financial firm were brought in to secure for FFT.  One thing I noticed was that the end game here is to produce much needed fresh produce for local, inner-city communities (they note specifically that vertical farming is mainly an urban solution due to land size restrictions).  Undeniably, this is a noble pursuit (and even something I applaud because it is good for the country) but it is more of a social rather than a commercial mission--something that a co-op or government should be doing.  

2.  The Florida greenhouse acquisitions were a surprise to me.  I will have to go into this in depth later but it looks like mortgages are already attached--7K a month--and that the transactions went through.  So why wasn't there a PR about this that they closed?  Anyways, the bottom line here is that no licenses to grow MJ are in hand even though they are zoned for MJ.  I get the feeling here that it could be a long, uncertain wait for these licenses to appear.  In the meantime, FFT plans to use their CEA tech to help grow some flowers.  

3.  The Cali extraction project information provided in the MD&A did not exactly produce any new and useful insights.  It sounds great for the unnamed non-profit company which has a license to cultivate and a sub-license to extract oil.  FFT provides the extractor, CEA apparatus, and know-how, and manages everything for them.  From their perspective, what's not to like?  In return, FFT receives a Management fee for services rendered.  There is no mention of equity or profit sharing.  This really sounds like all their ventures--learning on the job opportunities to showcase their technology and management's skills.  So I suppose that is a valuable thing to do.  Just don't expect SH value to improve in the short term.