AppHarvest, Inc. (NASDAQ: APPH, APPHW), a sustainable food company, public benefit corporation and Certified B Corp building some of the world’s largest high-tech indoor farms to grow affordable, nutritious fruits and vegetables at scale while providing good jobs in Appalachia, today announced its operating and financial results for the quarter ending September 30, 2022, showing strong progress on its strategy to quadruple its number of farms by year-end with the opening of the AppHarvest Berea and AppHarvest Somerset controlled environment agriculture (CEA) facilities and beginning commercial shipments of both salad greens and berries. The four-farm network expected to open this year consists of 165 acres making AppHarvest one of the largest CEA producers.

“As we near completion of the AppHarvest four-farm network with a diversified set of crops against a backdrop of extreme weather that continues to demonstrate the need for controlled environment agriculture in the U.S. to support food security with a climate-resilient and more sustainable approach, I’m encouraged by the team’s progress to execute one of the largest CEA buildouts ever while ramping up production of our fruit and vegetable portfolio for more potential revenue-generating streams this upcoming year,” said AppHarvest Founder & CEO Jonathan Webb.

Third Quarter 2022 Results For the third quarter 2022, net sales were $524,000 on 0.75 million pounds of tomatoes sold with a net sales price of 70 cents per pound versus net sales of $543,000 on 1.5 million pounds of tomatoes sold with a net sales price of 37 cents per pound in the third quarter of 2021.The third quarter historically is the company’s lowest production period because of the annual summer refresh for the replanting of the Morehead farm to prepare for the next growing season. Despite the higher net price per pound in the third quarter of 2022, net sales were slightly lower than the third quarter 2021 due to lower yield related to the plant health issues disclosed earlier in the year.

In line with expectations while the company continues to rapidly expand its network to four farms, the company recorded a net loss of $24.0 million and non-GAAP Adjusted EBITDA loss of $12.0 million in the third quarter of 2022, compared to a prior year net loss of $17.3 million and non-GAAP Adjusted EBITDA loss of $16.5 million. See reconciliation of the non-GAAP measure at the end of this news release.

Leadership transitionsTony Martin, a CEA industry veteran with prior experience as chief financial officer of Windset Farms, was recently appointed to the AppHarvest board of directors. The company expects to leverage Martin’s deep CEA expertise to provide valuable guidance in the areas of facilities, staffing and operations, to allow for streamlining within the organization. The general managers of each farm, with Martin’s counsel, will continue working to increase operational rigor and discipline. As the company announced last week, the team’s access to Martin enables David Lee to focus on his role as an AppHarvest board member and to step down from his role as president later this year.

OperationsPlanting for the third growing season at Morehead is complete, and harvesting is expected to begin in early November. The crop currently is healthy, showing none of the plant health issues previously reported for the first quarter of 2022. The Morehead farm continues to make progress in improving quality, reducing distribution fees and expanding product variety that may command higher prices. Staffing efforts have increased across the farms, and lessons learned from Morehead are being actively applied to maximize labor efficiency, quality and produce yield as we ramp up operations at the three new facilities.

DevelopmentOn October 26, the company announced the start of commercial shipments from its new 15-acre Berea, Ky. salad greens farm featuring a “touchless growing system” with autonomous harvesting. The farm is opening on a phased approach, beginning with five acres and then bringing on additional productive acreage over time. When at capacity, AppHarvest Berea is expected to be able to harvest the equivalent of an estimated 10 miles of lettuce per day. Salad greens from AppHarvest Berea will be used in the new “Queen of Greens®” washed-and-ready-to-eat packaged salad brand.

The company also announced on November 3, the opening of its 30-acre Somerset, Ky., berry farm, where the team already has planted nearly one million strawberry plants for its upcoming season. The company confirmed it has begun commercial shipments of WOW® Berries for its customer, Mastronardi Produce. AppHarvest Somerset will grow strawberries and is expected to alternate the crop seasonally with English cucumbers. AppHarvest continues construction on its 60-acre Richmond, Ky. farm, which is expected to double the company’s capacity to grow tomatoes. Combined with the Morehead farm, the Richmond facility is expected to enable the company to grow nearly 1.5 million tomato plants per season. The AppHarvest Richmond farm also is expected to start operating before the end of 2022.

AppHarvest secures $30 million in non-dilutive capitalIn conjunction with the opening of AppHarvest Berea, the company announced a new source of non-dilutive capital through a $30 million loan from Mastronardi Produce secured by the AppHarvest Berea farm. The secured financing is being delivered in two tranches of $15 million each, the first of which occurred on October 25 and the second is anticipated in the first half of the fourth quarter. The loan will incur an interest rate of 7.5% with interest paid in kind until the loan matures. Consistent with its strategy to secure attractive long-term financing for its assets, AppHarvest is evaluating a potential sale-leaseback financing for the Berea farm.

Balance Sheet and Liquidity As of September 30, 2022, cash and cash equivalents were $36.2 million. During the quarter, the company sold 542,000 shares for $1.4 million via the ATM facility with Cowen, which has a remaining availability of $98.6 million, and 360,000 shares for $1.3 million on the committed equity facility with B. Riley Principal Capital established in December 2021. In July 2022, the company closed on the $50 million in USDA guaranteed loans with Greater Nevada Credit Union backed by AppHarvest Somerset with a current interest rate of 6.45% and a 23-year term, with the first three years being interest payments only. The financing, announced last quarter, repaid the previous JP Morgan credit facility and freed up the related $48 million in restricted cash, which was replaced by $22 million in restricted cash dedicated toward the completion of the Somerset facility.

The company expects to incur approximately $85 million to $95 million more in capital expenditures for the completion of the three construction projects underway, $50 million to $55 million of which is expected to be spent in the fourth quarter of 2022, with the remaining $35 million to $40 million expected to be paid by first quarter of 2023. Increases were driven by construction delays and supply chain issues associated with the expected quadrupling of the farm network by year-end.

Financial OutlookThe company is revising its full-year 2022 net sales outlook downward by approximately $6.6 million to an expected range of $14.0 million to $17.0 million. The revised guidance is primarily driven by construction delays related to supply chain issues at both AppHarvest Berea and AppHarvest Somerset that affected the timing of commercial shipments from the farms.

The company also is updating its full-year 2022 outlook range for Adjusted EBITDA loss guidance upward by $13.5 million to an anticipated loss in the range of $67.0 million to $72.0 million. This improvement was driven by lower costs of goods sold and operating costs related to the delayed operational readiness of the new facilities as well as cost-saving measures implemented in the second half of this year.

Conference Call and WebcastAppHarvest will host a webcast and conference call today at 4:30 p.m. ET to discuss its third quarter financial results and operations.

The conference call will be streamed over the internet and accessible through the “Investor Relations” section of the AppHarvest website at To join the live call, please register here for the dial-in number and a personal PIN code. An audio-only replay of the webcast will be available on the company’s website approximately 90 minutes after the end of the conference call for 30 days.

Upcoming EventsAppHarvest management plans to participate in the 2nd Annual Roth AgTech Answers in New York City on Tuesday, November 15, 2022, and the Canaccord Genuity AgriFood Tech Innovation Virtual Forum on Thursday, December 1, 2022.

Details on upcoming events are available at the “Events” section of the AppHarvest Investor Relations website at

About AppHarvest AppHarvest is a sustainable food company in Appalachia developing and operating some of the world’s largest high-tech indoor farms with robotics and artificial intelligence to build a reliable, climate-resilient food system. AppHarvest’s farms are designed to grow produce using sunshine, rainwater and up to 90% less water than open-field growing, all while producing yields up to 30 times that of traditional agriculture and preventing pollution from agricultural runoff. AppHarvest currently operates its flagship farm – about the size of 50 football fields – in Morehead, Ky., producing tomatoes. The company is developing a network of farms to produce a variety of vine crops, salad greens and berries. The four-farm network that is expected to be operational by the end of 2022 consists of 165 acres. For more information, visit

Non-GAAP Financial MeasuresTo supplement the Company’s consolidated financial statements, which are prepared and presented in accordance with United States generally accepted accounting principles (“GAAP”), the Company uses certain non-GAAP measures, such as Adjusted EBITDA, to understand and evaluate the Company’s core operating performance. The Company defines and calculates Adjusted EBITDA as net loss before the impact of interest income or expense, income tax expense or benefit, depreciation and amortization, adjusted to exclude: stock-based compensation expense, Business Combination transaction-related costs, restructuring and impairment costs, remeasurement of warrant liabilities, start-up costs for new CEA facilities, Root AI acquisition related costs and certain other non-core items. The Company believes this non-GAAP measure of financial results provides useful information to management and investors regarding certain financial and business trends relating to the Company’s financial condition and results of operations. The Company’s management uses this non-GAAP measure for trend analyses and for budgeting and planning purposes.

The Company believes that the use of this non-GAAP financial measure provides an additional tool for investors to use in evaluating projected operating results and trends. Other similar companies may present different non-GAAP measures or calculate similar non-GAAP measures differently. Management does not consider this non-GAAP measure in isolation or as an alternative to financial measures determined in accordance with GAAP. The principal limitation of this non-GAAP financial measure is that it excludes significant expenses that are required to be presented in the Company’s GAAP financial statements. Because of this limitation, you should consider Adjusted EBITDA alongside other financial performance measures, including net loss and the Company’s other financial results presented in accordance with GAAP.

Adjusted EBITDA as used in connection with the Company's 2022 outlook is a non-GAAP financial measure that excludes or has otherwise been adjusted for items impacting comparability. The Company is unable to reconcile this forward-looking non-GAAP financial measure to net income, its most directly comparable forward-looking GAAP financial measure, without unreasonable efforts, because the Company is currently unable to predict with a reasonable degree of certainty its stock-based compensation expense for 2022. In addition, the company may incur additional expenses which may impact adjusted EBITDA. Such items may include costs and expenses related to the business combination activities, income taxes and other items. The unavailable information could have a significant impact on the Company’s full year 2022 GAAP financial results.

Forward-Looking Statements Certain statements included in this press release that are not historical facts are forward-looking statements for purposes of the safe harbor provisions under the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements generally are accompanied by words such as “expect,” “believe,” “will,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “could,” “would,” “plan,” “potential,” “seem,” “future,” “outlook,” “can,” “may, ”“target,” “strategy” and similar expressions that predict or indicate future events or trends or that are not statements of historical matters. All statements, other than statements of present or historical fact included in this press release, regarding AppHarvest’s intention to build high-tech CEA farms, the anticipated benefits of and production at such facilities, including implementation of a phased approach at each facility, timing and availability of tomatoes at top national grocery stores and restaurants, anticipated benefits of the third season harvest, of the delivery of the second tranche of funding from Mastronardi Produce, the potential for a sale-leaseback of the Berea farm, the composition of AppHarvest’s leadership team, AppHarvest’s future financial performance, as well as AppHarvest’s growth and evolving business plans and strategy, ability to capitalize on commercial opportunities, future operations, estimated financial position, projected costs, prospects, plans and objectives of management are forward-looking statements. These statements are based on various assumptions, whether or not identified in this press release, and on the current expectations of AppHarvest’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as, and must not be relied on as, a guarantee, an assurance, a prediction, or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of AppHarvest. These forward-looking statements are subject to a number of risks and uncertainties, including those discussed in the company’s Quarterly Report on Form 10-Q filed with the SEC by AppHarvest on November 7, 2022, under the heading “Risk Factors,” and other documents AppHarvest has filed, or that AppHarvest will file, with the SEC. If any of these risks materialize or our assumptions prove incorrect, actual results could differ materially from the results implied by these forward-looking statements. In addition, forward-looking statements reflect AppHarvest’s expectations, plans, or forecasts of future events and views as of the date of this press release. AppHarvest anticipates that subsequent events and developments will cause its assessments to change. However, while AppHarvest may elect to update these forward-looking statements at some point in the future, AppHarvest specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing AppHarvest’s assessments of any date subsequent to the date of this press release. Accordingly, undue reliance should not be placed upon the forward-looking statements.


CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)(in thousands except per share amounts)

  September 30,2022   December 31,2021
Current Assets:      
Cash and cash equivalents $ 36,231     $ 150,755  
Restricted cash   22,464       25,556  
Accounts receivable, net   4       1,575  
Inventories, net   12,409       4,998  
Prepaid expenses and other current assets   4,850       5,613  
Total current assets   75,958       188,497  
Operating lease right-of-use assets, net   1,677       5,010  
Property and equipment, net   458,744       343,913  
Other assets, net   27,079       16,644  
Total non-current assets   487,500       365,567  
Total assets $ 563,458     $ 554,064  
Liabilities and stockholders’ equity      
Current Liabilities:      
Accounts payable $ 10,500     $ 8,553  
Accrued expenses   17,648       15,794  
Current portion of lease liabilities   472       751  
Current portion of long-term debt   3,685       28,020  
Other current liabilities   106       119  
Total current liabilities   32,411       53,237  
Long-term debt, net of current portion   181,619       102,637  
Lease liabilities, net of current portion   1,898       4,938  
Deferred income tax liabilities   3,594       2,418  
Private Warrant liabilities   514       1,385  
Other liabilities   107       1,809  
Total non-current liabilities   187,732       113,187  
Total liabilities   220,143       166,424  
Stockholders’ equity      
Preferred stock, par value $0.0001, 10,000 shares authorized, 0 issued and outstanding, as of September 30, 2022 and December 31, 2021, respectively          
Common stock, par value $0.0001, 750,000 shares authorized, 107,278 and 101,136 shares issued and outstanding as of September 30, 2022 and December 31, 2021, respectively   11       10  
Additional paid-in capital   605,222       576,895  
Accumulated deficit   (270,638 )     (187,314 )
Accumulated other comprehensive income (loss)   8,720       (1,951 )
Total stockholders’ equity   343,315       387,640  
Total liabilities and stockholders’ equity $ 563,458     $ 554,064  



  Three Months EndedSeptember 30,   Nine Months EndedSeptember 30,
    2022       2021       2022       2021  
Net sales $ 524     $ 543     $ 10,046     $ 5,980  
Cost of goods sold   5,874       7,482       33,549       30,001  
    (5,350 )     (6,939 )     (23,503 )     (24,021 )
Operating expenses:              
Selling, general and administrative expenses   17,514       25,401       58,778       84,357  
Total operating expenses   17,514       25,401       58,778       84,357  
Loss from operations   (22,864 )     (32,340 )     (82,281 )     (108,378 )
Other income (expense):              
Interest expense from related parties                     (658 )
Interest expense         (805 )           (893 )
Change in fair value of Private Warrants   27       15,781       (233 )     32,095  
Other   297       113       366       574  
Loss before income taxes   (22,540 )     (17,251 )     (82,148 )     (77,260 )
Income tax benefit (expense)   (1,444 )     (17 )     (1,176 )     (539 )
Net loss   (23,984 )     (17,268 )     (83,324 )     (77,799 )
Other comprehensive income (loss):              
Net unrealized gains (losses) on derivatives contracts, net of tax   3,551       (66 )     10,671       (2,578 )
Comprehensive loss $ (20,433 )   $ (17,334 )   $ (72,653 )   $ (80,377 )
Net loss per common share:              
Basic and diluted $ (0.23 )   $ (0.17 )   $ (0.80 )   $ (0.83 )
Weighted average common shares outstanding:              
Basic and diluted   106,453       100,437       103,643       93,823  



  Nine Months Ended September 30,
    2022       2021  
Operating Activities      
Net loss $ (83,324 )   $ (77,799 )
Adjustments to reconcile net loss to net cash used in operating activities:      
Change in fair value of Private Warrants   233       (32,095 )
Deferred income tax (benefit) expense   1,176       539  
Depreciation and amortization   9,941       7,791  
Fixed asset impairment   1,070        
Stock-based compensation expense   17,495       31,248  
Rent expense in excess of payments   (158 )     (72 )
Changes in operating assets and liabilities      
Accounts receivable   1,571       259  
Inventories, net   (7,411 )     (800 )
Prepaid expenses and other current assets   762       (2,752 )
Other assets, net   (1,722 )     (10,486 )
Accounts payable   888       811  
Accrued expenses   (1,577 )     1,575  
Other current liabilities   50       (178 )
Other non-current liabilities   (46 )     617  
Net cash used in operating activities   (61,052 )     (81,342 )
Investing Activities      
Purchases of property and equipment   (121,613 )     (112,903 )
Purchases of property and equipment from a related party         (122,911 )
Cost of acquisition, net of cash acquired         (9,756 )
Investment in unconsolidated entity         (5,000 )
Net cash used in investing activities   (121,613 )     (250,570 )
Financing Activities      
Proceeds from Business Combination and PIPE Shares, net         448,500  
Proceeds from debt   105,759       95,709  
Payments on long-term debt   (48,597 )      
Debt issuance costs   (2,430 )     (1,046 )
Payments on financing obligation to a related party         (2,088 )
Proceeds from stock options exercised   137       35  
Proceeds from exercise of warrants         95  
Proceeds from Employee Stock Purchase Plan   211        
Payments of withholding taxes on restricted stock conversions   (1,497 )     (2,341 )
Proceeds from issuance of common stock   11,466        
Other financing activities         (37 )
Net cash provided by financing activities   65,049       538,827  
Change in cash and cash equivalents   (117,616 )     206,915  
Cash, cash equivalents and restricted cash at the beginning of period   176,311       21,909  
Cash, cash equivalents and restricted cash at the end of period   58,695       228,824  
Less restricted cash at the end of the period   22,464        
Cash and cash equivalents at the end of the period $ 36,231     $ 228,824  
Non-cash Activities:      
Fixed assets purchases in accounts payable $ 1,059     $ 14,170  
Fixed assets purchases in accrued liabilities $ 3,431     $ 8,331  
Terminated right of use assets and operating lease liabilities $ 3,031     $  
New right of use assets and lease liabilities $ 169     $ 1,055  


Reconciliation of Selected GAAP Measures to Non-GAAP Measures(In millions)

    Three Months Ended   Nine Months Ended
(Dollars in millions)   September 30, 2022   September 30, 2021   September 30, 2022   September 30, 2021
Net loss   $ (24.0 )   $ (17.3 )   $ (83.3 )   $ (77.8 )
Interest expense from related parties                       0.7  
Interest expense           0.8             0.9  
Interest income     (0.2 )     (0.1 )     (0.5 )     (0.2 )
Income tax (benefit) expense     1.4             1.2       0.5  
Depreciation and amortization expense     3.8       3.2       9.9       7.8  
EBITDA     (19.0 )     (13.4 )     (72.7 )     (68.1 )
Change in fair value of Private Warrants           (15.8 )     0.2       (32.1 )
Stock-based compensation expense     5.5       11.6       17.5       31.2  
Transaction success bonus on completion of Business Combination                       1.5  
Restructuring and impairment costs     0.2       0.9       4.5       0.9  
Start-up costs for new CEA facilities(1)     1.3             2.6        
Business Combination transaction costs           0.1             13.9  
Root AI acquisition costs(2)                       1.0  
Adjusted EBITDA   $ (12.0 )   $ (16.5 )   $ (47.9 )   $ (51.6 )

(1) Start-up costs are related to the pre-commencement commercial activities for tomatoes, salad greens and berries at the Richmond, Berea and Somerset CEA facilities(2) The acquisition of Root AI occurred on April 7, 2021

Media Contact: Travis Parman, Travis.Parman@appharvest.comInvestor Contact:

Photos accompanying this announcement are available at

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