Agrify Corp. (NASDAQ: AGFY), a Michigan-based company specializing in cannabis cultivation equipment, reported a net loss of $2.8 million for the second quarter of 2024. Although the loss marks an improvement from the $6.8 million deficit reported in the same quarter last year, it comes despite a significant drop in revenue.
The company's quarterly revenue fell to $2.9 million, nearly halving from $5.1 million in the second quarter of 2023. However, this figure represents a slight increase from the $2.6 million reported in the first quarter of 2024. Over the first half of the year, Agrify's total revenue reached $5.5 million, down from $10.8 million during the same period in 2023.
CEO Raymond Chang, in a recent press release, hinted at the company's precarious financial position, revealing that Agrify had just $53,000 in cash as of June 30th. Chang acknowledged the need for additional capital, particularly after the collapse of a proposed merger with Nature's Miracle in May, which had the potential to provide much-needed financial relief.
"2024 continues to present significant challenges, with the cannabis industry cautious about future investments due to regulatory uncertainties and limited access to capital," Chang stated. "Despite our ongoing efforts to cut costs and manage payables, our limited cash reserves remain a significant barrier to growth. The company will therefore continue to explore all strategic options to maximize shareholder value."
Agrify faced the threat of being delisted from the Nasdaq exchange last fall. In May, the company converted $13.8 million of its debt into equity, enabling it to comply with Nasdaq's requirements and maintain its listing.
As of the end of the second quarter, Agrify reported total assets of $39.6 million, which includes the $53,000 in cash, against total liabilities of $30.8 million. The company also carries an accumulated deficit of $264.3 million, highlighting the significant financial challenges it faces as it seeks to navigate the turbulent cannabis market.
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