Cannabis Tech Firm Agrify Significantly Cuts Loss, But Also Sees Revenue Decline
Cannabis cultivation solutions provider Agrify Corporation (NASDAQ:AGFY) released its financial results Tuesday for the first quarter ended March 31, 2024, revealing revenue of $2.6 million compared to $5.8 million for the first quarter of 2023.
“Following our first positive quarter in the fourth quarter of 2023, we are pleased to witness a sustained improvement in our business, marking another near break-even quarter,” stated Raymond Chang, chairman and CEO of Agrify. "We have observed a notable uptick in extraction sales, particularly among prominent multi-state operators (MSOs). Additionally, consumable and part sales are on the rise as the supply of second-hand equipment diminishes, compelling operators to upgrade or replace their existing machinery. The success of our customer's Las Vegas facility using our VFU technology has reignited interest in our VFUs, attracting both new and existing operators seeking advanced cultivation technology to enhance flower quality.”
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Q1 2024 Financial Summary
- Gross profit was $729,000, compared to a gross profit of $988,000 for the first quarter of 2023.
- Operating loss was $800,000, compared to $7.6 million in the comparative period of 2023.
- Net loss was 38,000, compared to $10.3 million in the corresponding quarter of the prior year
- Total operating expenses amounted to $1.5 million, compared to $8.6 million in the same period of last year.
- At the end of the quarter, the company had $95,000 in cash and cash equivalents compared to $1.48 million at the end of the first quarter of 2023.
The financial report comes just one day after Agrify confirmed mutual agreement with Nature's Miracle Holding Inc. (NASDAQ:NMHI) to terminate their previously announced merger plan due to unfavorable market conditions.
Both companies have executed termination agreements with mutual releases, canceling all prior agreements without any termination or cancellation fees. This also includes the cessation of Nature's Miracle's acquisition of Agrify's outstanding debt.
Price Action
Agrify shares closed Tuesday market session 18.82% higher at 37 cents per share.
Photo: Courtesy of Artem Avetisyan via Shutterstock