This NASDAQ Cannabis And Traditional Agriculture Stock Is Trading Higher Post Q2 Earnings Report, Here's Details

CEA Industries Inc. CEAD reported its financial results for the three months ended June 30, 2023.

“The cannabis market environment continues to present challenges as operators contend with the prolonged effects of pricing and inflationary pressure,” said Tony McDonald, chairman and CEO of CEA Industries. “The controlled agricultural sector is also experiencing reorganization and reduced investment. As a result, capital expenditures across both sectors remain suppressed, which is impacting our net bookings. To offset these headwinds, we preemptively implemented a series of cost-cutting initiatives that have reduced our operating expenses by more than 60% compared to the year-ago period. We plan to maintain this lean cost structure moving forward while targeting new contracts in both the cannabis and traditional agriculture sectors.”

Q2 2023 Financial Results

• Revenue in the second quarter of 2023 was $1.1 million compared to $3.0 million for the same period in 2022.
• Gross profit in the second quarter of 2023 was $79,000 compared to $0.3 million for the same period in 2022.
• Gross margin was 7.4% compared to 10.2% in the prior year period.
• Operating expenses in the second quarter of 2023 decreased 62% to $0.8 million compared to $2.1 million for the same period in 2022.
• Net loss in the second quarter of 2023 improved to $0.7 million or $(0.09) per share, compared to a net loss of $1.8 million or $(0.23) per share for the same period in 2022.
• Cash and cash equivalents were $14.2 million on June 30, 2023, compared to $18.6 million on December 31, 2022, while working capital decreased by $0.9 million during this period.

In addition, net bookings in the second quarter of 2023 were $0.2 million compared to $1.5 million in the year-ago period.

Moreover, the company’s quarter-end backlog was $1.1 million compared to $9.7 million for the same period in 2022. “The decrease in the company’s net bookings and backlog for the second quarter of 2023 was primarily driven by fewer capital projects and expenditures by cannabis operators,” per a release.

Price Action

On Monday at market close, CEAD shares were trading 2.53% higher, at $0.84 per share.

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