Agrify Corporation Announces Results for First Quarter 2024
May 21 2024 - 9:36AM
Agrify Corporation (Nasdaq:AGFY) (“Agrify” or the “Company”), a
leading provider of innovative cultivation and extraction solutions
for the cannabis industry, today announced financial results for
the first quarter ended March 31, 2024.
First Quarter 2024 Financial Results
Summary
- Revenue was $2.6 million for the first quarter of 2024,
compared to $5.8 million for the first quarter of 2023.
- Gross profit was $0.73 million for the first quarter of 2024,
compared to a gross profit of $1 million for the first quarter of
2023.
- Operating loss was $0.8 million for the first quarter of 2024,
compared to $7.6 million in the first quarter of 2023.
- Net loss for the first quarter of
2024 was $0.04 million, compared to $10 million in 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. 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" stated Raymond Chang, Chairman and CEO of Agrify.
About Agrify (Nasdaq:AGFY)
Agrify is a leading provider of innovative
cultivation and extraction solutions for the cannabis industry,
bringing data, science, and technology to the forefront of the
market. Agrify’s proprietary micro-environment-controlled Vertical
Farming Units (VFUs) enable cultivators to produce the highest
quality products with unmatched consistency, yield, and ROI at
scale. Agrify’s comprehensive extraction product line, which
includes hydrocarbon, ethanol, solventless, post-processing, and
lab equipment, empowers producers to maximize the quantity and
quality of extract required for premium concentrates. For more
information, please visit Agrify at http://www.agrify.com.
AGRIFY
CORPORATIONCONDENSED CONSOLIDATED STATEMENTS OF
OPERATIONS(In thousands, except share and per
share data)
|
|
Three months ended March 31, |
|
|
2024 |
|
2023 |
Revenue (including $0 and $46 from related parties,
respectively) |
|
$ |
2,598 |
|
|
$ |
5,804 |
|
Cost of goods sold |
|
|
1,869 |
|
|
|
4,816 |
|
Gross profit |
|
|
729 |
|
|
|
988 |
|
|
|
|
|
|
General and
administrative |
|
|
2,952 |
|
|
|
6,931 |
|
Selling and marketing |
|
|
462 |
|
|
|
1,590 |
|
Research and development |
|
|
275 |
|
|
|
735 |
|
Change in contingent
consideration |
|
|
(2,180 |
) |
|
|
(684 |
) |
Total operating expenses |
|
|
1,509 |
|
|
|
8,572 |
|
Loss from operations |
|
|
(780 |
) |
|
|
(7,584 |
) |
Interest expense, net |
|
|
(145 |
) |
|
|
(799 |
) |
Change in fair value of
warrant liabilities |
|
|
873 |
|
|
|
2,672 |
|
Loss on extinguishment of
long-term debt, net |
|
|
— |
|
|
|
(4,620 |
) |
Other income, net |
|
|
14 |
|
|
|
4 |
|
Total other income (expense), net |
|
|
742 |
|
|
|
(2,743 |
) |
Net loss before income taxes |
|
|
(38 |
) |
|
|
(10,327 |
) |
Income tax benefit
(expense) |
|
|
— |
|
|
|
— |
|
Net loss |
|
|
(38 |
) |
|
|
(10,327 |
) |
Net loss attributable to Agrify Corporation |
|
$ |
(38 |
) |
|
$ |
(10,327 |
) |
Net loss per share
attributable to Common Stockholders – basic and diluted (1) |
|
$ |
— |
|
|
$ |
(9.63 |
) |
Weighted average common shares
outstanding - basic and diluted (1) |
|
|
8,894,229 |
|
|
|
1,072,292 |
|
(1) Periods presented have been adjusted to
reflect the 1-for-20 reverse stock split on July 5, 2023.
Additional information regarding reverse stock splits may be found
in Note 1 – Overview, Basis of Presentation, and Significant
Accounting Policies, included elsewhere in the notes to the
consolidated financial statements.
AGRIFY
CORPORATIONCONDENSED CONSOLIDATED BALANCE
SHEETS(In thousands, except share and per share
data)
|
March 31, |
|
December 31, |
|
2024 |
|
2023 |
Assets |
(Unaudited) |
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
95 |
|
|
$ |
430 |
|
Marketable securities |
|
4 |
|
|
|
4 |
|
Accounts receivable, net of allowance for credit losses of $2,512
and $1,887 at March 31, 2024 and December 31, 2023,
respectively |
|
211 |
|
|
|
1,149 |
|
Inventory, net of reserves of $17,184 and $17,599 at March 31, 2024
and December 31, 2023, respectively |
|
18,862 |
|
|
|
19,094 |
|
Loan receivable, current |
|
692 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
1,028 |
|
|
|
3,332 |
|
Total current assets |
|
20,892 |
|
|
|
24,009 |
|
Loan receivable, net of
allowance for credit losses of $18,885 and $19,215 at March 31,
2024 and December 31, 2023, respectively, net of current |
|
10,891 |
|
|
|
11,583 |
|
Property and equipment,
net |
|
7,328 |
|
|
|
7,734 |
|
Operating lease right-of-use
assets |
|
1,651 |
|
|
|
1,803 |
|
Other non-current assets |
|
99 |
|
|
|
141 |
|
Total assets |
$ |
40,861 |
|
|
$ |
45,270 |
|
Liabilities and
Stockholders' Deficit |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
12,428 |
|
|
$ |
20,766 |
|
Accrued expenses and other current liabilities |
|
7,843 |
|
|
|
10,655 |
|
Operating lease liabilities, current |
|
615 |
|
|
|
599 |
|
Notes payable, current |
|
1,374 |
|
|
|
— |
|
Long-term debt, current |
|
696 |
|
|
|
766 |
|
Related party debt, current |
|
1,000 |
|
|
|
4,444 |
|
Deferred revenue |
|
3,784 |
|
|
|
4,019 |
|
Total current liabilities |
|
27,740 |
|
|
|
41,249 |
|
Warrant liabilities |
|
417 |
|
|
|
1,290 |
|
Operating lease liabilities,
net of current |
|
1,235 |
|
|
|
1,394 |
|
Notes payable, net of
current |
|
3,464 |
|
|
|
— |
|
Related party debt, net of
current |
|
17,683 |
|
|
|
— |
|
Long-term debt, net of
current |
|
47 |
|
|
|
16,047 |
|
Total liabilities |
|
50,586 |
|
|
|
59,980 |
|
|
|
|
|
Stockholders' deficit: |
|
|
|
Common Stock, $0.001 par value per share, 35,000,000 and 10,000,000
shares authorized at March 31, 2024 and December 31, 2023,
respectively, 13,275,702 and 1,702,243 shares issued and
outstanding at March 31, 2024 and December 31, 2023, respectively
(1) |
|
13 |
|
|
|
2 |
|
Preferred Stock, $0.001 par value per share, 2,895,000 shares
authorized, no shares issued or outstanding |
|
— |
|
|
|
— |
|
Preferred A Stock, $0.001 par value per share, 105,000 shares
authorized, no shares issued or outstanding |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
255,867 |
|
|
|
250,855 |
|
Accumulated deficit |
|
(265,835 |
) |
|
|
(265,797 |
) |
Total stockholders' deficit attributable to Agrify |
|
(9,955 |
) |
|
|
(14,940 |
) |
Non-controlling interests |
|
230 |
|
|
|
230 |
|
Total liabilities and stockholders' deficit |
$ |
40,861 |
|
|
$ |
45,270 |
|
(1) Periods presented have been adjusted to
reflect the 1-for-20 reverse stock split on July 5, 2023.
Additional information regarding the reverse stock splits may be
found in Note 1 – Overview, Basis of Presentation, and Significant
Accounting Policies, included in the notes to the consolidated
financial statements
AGRIFY
CORPORATIONCONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS(In thousands)
|
|
Three months endedMarch 31, |
|
|
2024 |
|
2023 |
|
|
(Unaudited) |
|
|
Cash flows (used in)
provided by: |
|
|
|
|
Operating activities |
|
$ |
(2,987 |
) |
|
$ |
(9,469 |
) |
Investing activities |
|
|
328 |
|
|
|
9,795 |
|
Financing activities |
|
|
2,324 |
|
|
|
(9,307 |
) |
Net (decrease) in cash and
cash equivalents |
|
$ |
(335 |
) |
|
$ |
(8,981 |
) |
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995 concerning Agrify and other matters. All
statements contained in this press release that do not relate to
matters of historical fact should be considered forward-looking
statements including, without limitation, statements regarding
future financial results, the potential for increased extraction
sales, the ability to realize revenue from the bookings, backlog,
and pipeline, project timelines, and Agrify’s ability to deliver
solutions and services. In some cases, you can identify
forward-looking statements by terms such as "may," "will,"
"should," "expects," "plans," "anticipates," "could," "intends,"
"targets," "projects," "contemplates," "believes," "estimates,"
"predicts," "potential" or "continue" or the negative of these
terms or other similar expressions. The forward-looking statements
in this press release are only predictions. We have based these
forward-looking statements largely on our current expectations and
projections about future events and financial trends that we
believe may affect our business, financial condition and results of
operations. Forward-looking statements involve known and unknown
risks, uncertainties and other important factors that may cause our
actual results, performance or achievements to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. You should
carefully consider the risks and uncertainties that affect our
business, including those described in our filings with the
Securities and Exchange Commission (“SEC”), including under the
caption “Risk Factors” in our Annual Report on Form 10-K filed for
the year ended December 31, 2023 with the SEC, which can be
obtained on the SEC website at www.sec.gov. These forward-looking
statements speak only as of the date of this communication. Except
as required by applicable law, we do not plan to publicly update or
revise any forward-looking statements, whether as a result of any
new information, future events or otherwise. You are advised,
however, to consult any further disclosures we make on related
subjects in our public announcements and filings with the SEC.
Company Contacts
Agrify Investor
RelationsIR@agrify.com(857) 256-8110
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