AVXHIGH SIGNALRISK10-K

AgriForce Growing Systems shows signs of severe financial distress with dramatically reduced R&D spending and a substantial debt restructuring that shifted obligations from long-term to current liabilities.

The company appears to be in crisis mode, slashing R&D investment by over 90% while simultaneously seeing current liabilities nearly double, suggesting immediate liquidity pressures. The massive reduction in total debt alongside the spike in current liabilities indicates a restructuring that may have converted long-term obligations into near-term payment demands, creating significant cash flow risk.

Comparing 2026-03-31 vs 2025-04-07View on EDGAR →
FINANCIAL ANALYSIS

The financial profile shows a company under severe stress, with R&D expenses collapsing from $211K to just $19K while current liabilities expanded substantially from $4.3M to $8.0M. Although total debt declined meaningfully from $11.5M to $1.5M, this reduction was more than offset by the spike in current obligations, suggesting a restructuring that compressed payment timelines rather than reducing overall financial burden. The combination of drastically reduced investment spending and deteriorating short-term liquidity position signals acute financial distress.

FINANCIAL STATEMENT CHANGES
R&D Expense
P&L
-91.1%
$211K→$19K

R&D spending cut 91.1% — could signal cost discipline or concerning reduction in innovation investment.

Total Debt
Balance Sheet
-87%
$11.5M→$1.5M

Debt reduced 87% — deleveraging strengthens balance sheet and reduces financial risk.

Current Liabilities
Balance Sheet
+84.9%
$4.3M→$8.0M

Current liabilities surged 84.9% — significant near-term obligations; verify ability to meet short-term debt.

Total Liabilities
Balance Sheet
+71.7%
$4.7M→$8.0M

Liabilities grew 71.7% — significant increase in debt or obligations, assess impact on financial flexibility.

LANGUAGE CHANGES
NEW — 2026-03-31
PRIOR — 2025-04-07
ADDED
Employer Identification No.) 800 525 West 8th Avenue Vancouver , BC , Canada V5Z 1C6 (Address of principal executive offices) (Zip Code) (604) 757-0952 AgriForce Growing Systems, Ltd.
See the definitions of large accelerated filer, accelerated filer, and smaller reporting company in Rule 12b-2 of the Exchange Act.
7262(b)) by the registered public accounting firm that prepared or issued its audit report.
As of March 24, 2026, the registrant had 89,798,842 common shares, no par value per share, outstanding.
Some of the statements under Business, Risk Factors, Management s Discussion and Analysis of Financial Condition and Results of Operations and elsewhere in this Annual Report may contain forward-looking statements that reflect our current views with respect to, among other things, future events, results and financial performance, which are intended to be covered by the safe harbour provisions for forward-looking statements provided by the Private Securities Litigation Reform Act of 1995.
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REMOVED
See the definitions of large accelerated filer , accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.
Shares of the registrant s common stock held by each officer and director and each person known to the registrant to own 10% or more of the outstanding voting power of the registrant have been excluded in that such persons may be deemed affiliates.
This determination of affiliate status is not a determination for other purposes.
When used in this Report on Form 10- K and other reports, statements, and information we have filed with the Securities and Exchange Commission ( Commission or SEC ), in our press releases, presentations to securities analysts or investors, in oral statements made by or with the approval of an executive officer, the words or phrases believes, may, will, expects, should, continue, anticipates, intends, will likely result, estimates, projects or similar expressions and variations thereof are intended to identify such forward-looking statements.
However, any statements contained in this Report on Form 10-K that are not statements of historical fact may be deemed to be forward-looking statements.
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