Agrify Corporation AGFY released preliminary financial results for the second quarter ended June 30, 2022
Preliminary Financial Results
Based on the information currently available for the second quarter ended June 30, 2022, the company is announcing preliminary financial results as follows:
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Revenue is expected to be $19.3 million, an increase of 63% compared to the same quarter of 2021.
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Net loss is expected to be $23.5 million compared to $5.4 million in the same quarter of 2021.
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Adjusted EBITDA, prior to consideration of any potential impairment charges against the carrying value of the company’s long-lived assets, is expected to be a loss of $(19.4) million compared to a loss of $(4.3) million in the same quarter of 2021.
Review for Impairment
Agrify requires additional time to finalize its quarterly closing and financial reporting process as the company is currently concluding its impairment analysis associated with the carrying value of its goodwill and intangible assets. The company expects that this analysis will result in significant non-cash impairment charges as of June 30, 2022.
Credit Facility
The company has reached an agreement in principle with its institutional lender to amend its existing credit facility to modify certain financial covenants which, once complete, should give the company additional flexibility to operate and meet its long-term strategic goals while also allowing it to responsibly adjust to the many challenges currently facing the cannabis industry.
2022 Outlook
Given the current difficult macro business environment, and specifically a drastic downturn in the cannabis industry, Agrify has re-evaluated its near-term strategic initiatives and business prospects. Consequently, the company’s prior revenue guidance for fiscal year 2022 is withdrawn and should no longer be relied upon. Management will provide additional information regarding its revenue guidance for fiscal year 2022 in conjunction with the upcoming release of its full second quarter 2022 financial results.
Photo by Mackenzie Marco on Unsplash
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