Urban Barns Foods Inc (OTCMKTS:URBF) reported that Richard Groome presented his resignation as a director of company and the respective subsidiaries. His resignation was not supported by any disagreement with the company pertaining to its operations, practices, and policies or otherwise. Following the resignation, the count of directors on Urban Barns Board decreased to three from four. The remaining directors are Robyn Jackson, Jeremy Kendall and Horst Hueniken.
The performance
Urban Barns last reported its quarterly report in the month of June. During the quarter ended April 30, 2015, with the support of company’s first growing facility, the revenue came at $17,052 with a cost of sales of over $18,000. It led to negative gross margin of as much as $1,520. In the reported period, the company witness grave water problems with its artesian well and registered a considerable amount of production loss.
The remedial measure taken was to source and deploy an advanced ozone water purification system. Since then, water quality improved and supported plant growth. Additionally, Urban Barns Foods Inc (OTCMKTS:URBF) witnessed various broken cables on its Gen-3 growing machines which led in several production challenges during the quarter with lost production time and lower production. In the comparable quarter in FY2014, the company failed to record any revenue.
The expenses
The Company posted operating expenses of $463,796 for the quarter ended April 30, 2015, against $522,056 recorded in the comparable period, a year earlier. This decline was due to reduced general and administrative costs and professional fees offset by increased research and development expenses and depreciation cost, due to commencement of Urban Barns’ first growing facility.
In the reported period, the net loss came at $574,030 against a net loss of $618,887 in the same quarter, a year ago. The decline in net loss was due to reduced operating costs and accretion of discounts on debentures.
