Agrotech Greenhouses Inc. Files Interim, Unaudited Statement With SEDAR

Agrotech Greenhouses Inc. [NEX: AGV.H] has filed interim, unaudited financial statements for the third quarter of FY '07, ended August 31st, along with the accompanying Management Discussion and Analysis. According to the financials [PDF file], Agrotech had $7,217 worth of cash as of August 31st, 2007, up from $5,187 as of November 30th, 2006. Current assets, though, shrunk from $53,187 to $14,965 in the same time period. Current liabilities increased, from $3,916,853 to $4,117,096, due to a $160,253 increase in accounts payable and accrued liabilities and a $40,000 increase in the amount of a demand loan. As a result, the working capital deficiency widened from $3,863,666 to $4,102,131. Book value also shrunk, from -21.9 cents/share to -26.3 cents/share.

For the third quarter of this fiscal year, Agrotech had no revenue and a loss before unusual or extraordinary items of $86,904 as compared with a $111,960 loss in the third quarter of FY '06. (These figures are not quite comparable because Agrotech had revenue coming in during 3Q '06.) A $57,000 write-off of a receivable increased the quarterly loss to $143,904, or 2.10 cents/share, as compared with 3Q '06's loss of 1.63 cents/share. There was also revenue - specifically, rental revenue - during the first quarter of FY '07 but no others, for a total of $36,000 for the first nine months of that year. Revenue in the first three quarters of FY '06 was $108,000. The loss before other items widened from $195,783 to $251,293, and the loss for the first three quarters of FY '07 widened further to $305,429 or 4.46 cents/share from 2.86 cents/share in the same period of FY '06. The statement of cash flows shows that the cash used in operating activities was $37,969, which was more than covered by an increase of $40,000 in the demand loan.

The accompanying M D & A [PDF file] explains that the write-off came from rental receipts foregone due to the renter going bankrupt. It also explains that a large part of the expenses was interest expense, in the amount of $287,293 for the first three quarters of FY '07 as compared with $195,783 in the first three quarters of FY '06. For the third quarters of FY '07 and '06 specifically, interest expense was unchanged at $51,978 for both periods. All loans are currently in default. $200,000 in loans are due to a related company controlled by a director of Agrotech. AGV.H last closed on Sept. 12th, at 2 cents/share.