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Agrify Corporation Announces Results for First Quarter 2024

Agrify
Agrify

Company achieves near break-even quarterly results

TROY, Mich., May 21, 2024 (GLOBE NEWSWIRE) -- 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.

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"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 CORPORATION
CONDENSED 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 CORPORATION
CONDENSED 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 CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)

 

 

Three months ended
March 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 Relations
IR@agrify.com
(857) 256-8110