US (KY): "AppHarvest may run out of money sooner than projected"

Despite the underwritten public offering that raised $46.0 million, AppHarvest still faces liquidity challenges and is exploring additional financing opportunities. If not, it could run out of money by October, three months sooner than the company previously projected.

In December, it sold the Berea facility to an affiliate of its produce distributor, Mastronardi Produce, and entered into a long-term lease agreement for the greenhouse. The company has said it could sell off more real estate in addition to raising other debt or equity.

The company released it's new quarter figures this week and reported a net loss of $33.6 million and a non-GAAP Adjusted EBITDA loss of $23.2 million in the first quarter of 2023 

AppHarvest achieved net sales of $13.0 million in the first quarter of 2023, representing a substantial increase of over 250% compared to the same period in 2022. The majority of AppHarvest's revenue came from tomatoes, with strawberries, salad greens, and cucumbers contributing lesser amounts: nearly $11 million in tomatoes, over $1 million in strawberries, over $800,000 in salad greens, and nearly $200,000 in cucumbers during the quarter. 

The costs of goods sold (COGS) increased by $20.8 million during the first quarter, primarily driven by production ramp-up at the new farms. AppHarvest spent $21.2 million on capital expenditures during the first quarter, and it expects to incur an additional $40.0 million to $45.0 million in the next twelve months for project details at its various facilities.

AppHarvest aims to optimize production, sales, and costs through a strategic program called "Project New Leaf." 

According to, The filing also revealed that the company stopped production at its Berea, Kentucky, salad greens facility in April after discovering Listeria monocytogenes, a disease-causing bacteria and that one of AppHarvest’s lenders deems the company to be in default of its loan obligations, which could trigger an immediate demand for repayment.


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