Cannabis cultivation solutions provider Agrify reports 41% year-over-year revenue drop, cuts losses, plans new strategies – Agrify (NASDAQ:AGFY)

Agrify Corporation AGFY announced financial results on Wednesday for its second quarter ended June 30, 2024. The Michigan-based cannabis cultivation solutions provider disclosed revenue of $3.0 million, compared to $5.1 million in the same period in 2023.

“We are pleased to report a 15 percent increase in quarterly revenue and a 54.8 percent increase in gross profit in the second quarter of 2024 compared to the first quarter of 2024,” said President and CEO Raymond Chang. “However, we recognize that 2024 presents continued challenges as the industry remains cautious about future capital investments due to regulatory uncertainty and limited capital availability. Despite our ongoing efforts to reduce costs and address liabilities, our limited cash position remains a barrier to growth. As a result, “The company will continue to consider all strategic options to maximize shareholder value.”

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Summary of financial results for the second quarter of 2024

• Gross profit amounted to $1.7 million in the second quarter of 2024, compared to $0.7 million in the first quarter of 2024 and $0.6 million in the second quarter of 2023.
• The operating loss was $1.5 million in the second quarter of 2024, compared to $5.3 million in the second quarter of 2023.
• Net loss for Q2 2024 amounted to USD 2.8 millioncompared to $6.8 million in Q2 2023.
• At the end of the reporting period, June 30, Agrify had $39.6 million in total assets, of which $53,000 was in cash, compared to $45.27 million and $430,000, respectively. Total liabilities were $30.8 million, compared to $59.98 million at the end of December.
• The cumulative deficit amounted to $264.3 million, compared to $265.8 million at the end of December.

Adjusted financial results for the first quarter of 2024 and summary of the first half of 2024

• The Company is announcing a reassessment of the settlement with Mack Molding. While the adjustments changed the first quarter 2024 net loss, gain on a supply agreement, gain on the remeasurement of a contingent liability, gain on the settlement of a contingent liability, and accrued expenses and other current liability items in the consolidated statement of cash flows, all changes are non-cash accounting items. The reassessment did not impact first quarter revenue, gross profit, total net cash used in operating activities, net cash used in investing activities, or net cash provided by financing activities.
• As a result of the reassessment, the Company now reports operating income of $1.99 million and net income of $1.48 million for the first half of 2024.

Price action

Agrify shares ended Wednesday’s trading session down 3.27% to 25 cents per share.

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