Marijuana Growing Solution Provider Agrify Reports 41% YoY Revenue Drop, Cuts Loss, Plans New Strategies

Agrify Corporation AGFY announced financial results Wednesday for the second quarter ended June 30, 2024. The Michigan-based cannabis cultivation solutions provider disclosed revenue of $3.0 million, compared to $5.1 million in the same period of 2023.

“We are pleased to report a 15% increase in quarterly revenue and a 54.8% rise in gross profit for the second quarter of 2024 in comparison to the first quarter of 2024," stated chairman and CEO Raymond Chang. "However, we recognize that 2024 presents ongoing challenges, as the industry remains cautious about future capital investments due to uncertain regulations and limited capital availability. Despite our continuous efforts to reduce costs and address payables, our constrained cash position remains a barrier to growth. As such, the company will continue to explore all strategic options to maximize shareholder value.”

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Second Quarter 2024 Financial Results Summary

• Gross profit was $1.7 million for the second quarter of 2024, compared to $0.7 million for the first quarter of 2024 and $0.6 million for the second quarter of 2023. 
• Operating loss was $1.5 million for the second quarter of 2024, compared to $5.3 million in the second quarter of 2023.
• Net loss for the second quarter of 2024 was $2.8 million, compared to $6.8 million in the second quarter of 2023.
• At the end of the reporting period, on June 30, Agrify had $39.6 million in total assets, out of which $53,000 in cash, compared to $45.27 million, and $430,000, respectively. Total liabilities amounted to $30.8 million, compared to $59.98 million at the end of December.
• The accumulated deficit reached $264.3 million, compared to $265.8 million at the end of December.

Amended First Quarter 2024 Financial Results and First Half 2024 Summary

• The company is reporting a reassessment of the accounting of the settlement with Mack Molding. While the adjustments changed the first quarter 2024 net loss, gain on supply agreement, gain on revaluation of contingent liability, gain on settlement of contingent liabilities, and accrued expenses and other current liabilities line items in the consolidated cash flow statement, the changes are all non-cash accounting items. The reassessment did not have an impact on first-quarter revenue, gross profit, total net cash used in operating activities, net cash used in investing activities, or net cash provided by financing activities.
• Due to the reassessment, the Company is now reporting a $1.99 million operating income and $1.48 million net income for the first half of 2024. 

Price Action

Agrify shares closed Wednesday's market session 3.27% lower at 25 cents per share.

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Photo: Courtesy of HTWE via Shutterstock