Agrify Corporation Announces Results for Second Quarter 2024 and Amended Results for First Quarter 2024
14 Agosto 2024 - 3:35PM
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 second quarter ended June 30, 2024.
Second Quarter 2024 Financial Results
Summary
- Revenue was $3.0
million for the second quarter of 2024, compared to $2.6
million for the first quarter of 2024 and $5.1
million for the second quarter of 2023.
- 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 $6.8 million in the
second quarter of 2023.
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.
"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 first quarter of 2024. 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."
said 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 CORPORATIONCONDENSED CONSOLIDATED
STATEMENTS OF OPERATIONS(In thousands, except
share and per share data) |
|
|
|
|
|
Three months ended June 30, |
|
Six months ended June 30, |
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
Revenue (including $0, $0, $0,
and $46 from related parties, respectively) |
$ |
2,994 |
|
|
$ |
5,066 |
|
|
$ |
5,592 |
|
|
$ |
10,870 |
|
Cost of goods sold |
|
1,303 |
|
|
|
4,466 |
|
|
|
3,736 |
|
|
|
9,282 |
|
Gross profit |
|
1,691 |
|
|
|
600 |
|
|
|
1,856 |
|
|
|
1,588 |
|
|
|
|
|
|
|
|
|
General and
administrative |
|
2,268 |
|
|
|
4,819 |
|
|
|
6,362 |
|
|
|
11,745 |
|
Selling and marketing |
|
394 |
|
|
|
1,120 |
|
|
|
856 |
|
|
|
2,710 |
|
Research and development |
|
185 |
|
|
|
643 |
|
|
|
460 |
|
|
|
1,378 |
|
Gain on settlement of
contingent liabilities |
|
350 |
|
|
|
— |
|
|
|
(5,585 |
) |
|
|
— |
|
Gain on early termination of
lease |
|
(39 |
) |
|
|
— |
|
|
|
(39 |
) |
|
|
— |
|
Gain on disposal of property
and equipment |
|
(9 |
) |
|
|
— |
|
|
|
(9 |
) |
|
|
Change in contingent
consideration |
|
— |
|
|
|
(638 |
) |
|
|
(2,180 |
) |
|
|
(1,322 |
) |
Total operating expenses |
|
3,149 |
|
|
|
5,944 |
|
|
|
(135 |
) |
|
|
14,516 |
|
Operating (loss) income |
|
(1,458 |
) |
|
|
(5,344 |
) |
|
|
1,991 |
|
|
|
(12,928 |
) |
Interest income (expense),
net |
|
(28 |
) |
|
|
(400 |
) |
|
|
(128 |
) |
|
|
(1,199 |
) |
Change in fair value of
warrant liabilities |
|
(1,277 |
) |
|
|
(1,048 |
) |
|
|
(404 |
) |
|
|
1,624 |
|
Loss on extinguishment of
long-term debt, net |
|
— |
|
|
|
(11 |
) |
|
|
— |
|
|
|
(4,631 |
) |
Other income (expense),
net |
|
5 |
|
|
|
(4 |
) |
|
|
19 |
|
|
|
— |
|
Total other expense, net |
|
(1,300 |
) |
|
|
(1,463 |
) |
|
|
(513 |
) |
|
|
(4,206 |
) |
Net (loss) income |
|
(2,758 |
) |
|
|
(6,807 |
) |
|
|
1,478 |
|
|
|
(17,134 |
) |
Loss attributable to
non-controlling interest |
|
— |
|
|
|
2 |
|
|
|
— |
|
|
|
2 |
|
Net (loss) income attributable to Agrify Corporation |
$ |
(2,758 |
) |
|
$ |
(6,805 |
) |
|
$ |
1,478 |
|
|
$ |
(17,132 |
) |
Net (loss) income per share
attributable to Common Stockholders – basic1i |
$ |
(0.13 |
) |
|
$ |
(4.39 |
) |
|
$ |
0.10 |
|
|
$ |
(13.05 |
) |
Net (loss) income per share
attributable to Common Stockholders – diluted |
$ |
(0.13 |
) |
|
$ |
(4.39 |
) |
|
$ |
0.07 |
|
|
$ |
(13.05 |
) |
Weighted average common shares
outstanding - basic |
|
20,812,678 |
|
|
|
1,549,669 |
|
|
|
14,853,454 |
|
|
|
1,312,299 |
|
Weighted average common shares
outstanding - diluted |
|
20,812,678 |
|
|
|
1,549,669 |
|
|
|
29,771,039 |
|
|
|
1,312,299 |
|
|
(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 CORPORATIONCONDENSED CONSOLIDATED
BALANCE SHEETS(In thousands, except share and per
share data) |
|
|
June 30, |
|
December 31, |
|
|
2024 |
|
|
|
2023 |
|
|
(Unaudited) |
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
53 |
|
|
$ |
430 |
|
Marketable securities |
|
4 |
|
|
|
4 |
|
Accounts receivable, net of allowance for credit losses of $2,563
and $1,887 at June 30, 2024 and December 31, 2023,
respectively |
|
272 |
|
|
|
1,149 |
|
Inventory, net of reserves of $16,507 and $17,599 at June 30, 2024
and December 31, 2023, respectively |
|
18,642 |
|
|
|
19,094 |
|
Loans receivable, current |
|
1,295 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
663 |
|
|
|
3,332 |
|
Total current assets |
|
20,929 |
|
|
|
24,009 |
|
Loans receivable, net of
allowance for credit losses of $18,885 and $19,215 at June 30, 2024
and December 31, 2023, respectively, net of current |
|
10,288 |
|
|
|
11,583 |
|
Property and equipment,
net |
|
6,954 |
|
|
|
7,734 |
|
Operating lease right-of-use
assets |
|
1,333 |
|
|
|
1,803 |
|
Other non-current assets |
|
97 |
|
|
|
141 |
|
Total assets |
$ |
39,601 |
|
|
$ |
45,270 |
|
Liabilities and
Stockholders' Equity (Deficit) |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
12,039 |
|
|
$ |
20,766 |
|
Accrued expenses and other current liabilities |
|
7,410 |
|
|
|
10,655 |
|
Operating lease liabilities, current |
|
539 |
|
|
|
599 |
|
Long-term debt, current |
|
582 |
|
|
|
766 |
|
Related party debt, current |
|
732 |
|
|
|
4,444 |
|
Contract liabilities |
|
3,847 |
|
|
|
4,019 |
|
Total current liabilities |
|
25,149 |
|
|
|
41,249 |
|
Warrant liabilities |
|
503 |
|
|
|
1,290 |
|
Operating lease liabilities,
net of current |
|
960 |
|
|
|
1,394 |
|
Related party debt, net of
current |
|
4,278 |
|
|
|
— |
|
Long-term debt, net of
current |
|
3 |
|
|
|
16,047 |
|
Total liabilities |
|
30,892 |
|
|
|
59,980 |
|
Stockholders' equity
(deficit): |
|
|
|
Common Stock, $0.001 par value per share, 35,000,000 and 10,000,000
shares authorized at June 30, 2024 and December 31, 2023,
respectively, 14,230,004 and 1,701,243 shares issued and
outstanding at June 30, 2024 and December 31, 2023,
respectively(1) |
|
14 |
|
|
|
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 |
|
272,783 |
|
|
|
250,855 |
|
Accumulated deficit |
|
(264,319 |
) |
|
|
(265,797 |
) |
Total stockholders' equity (deficit) attributable to Agrify |
|
8,478 |
|
|
|
(14,940 |
) |
Non-controlling interests |
|
230 |
|
|
|
230 |
|
Total stockholders' equity (deficit) |
|
8,708 |
|
|
|
(14,710 |
) |
Total liabilities and stockholders' equity (deficit) |
$ |
39,601 |
|
|
$ |
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 CORPORATIONSELECTED & CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS(In
thousands)(Unaudited) |
|
|
Six months endedJune 30, |
|
|
2024 |
|
|
|
2023 |
|
Cash flows (used in)
provided by: |
|
|
|
Operating activities |
$ |
(4,816 |
) |
|
$ |
(11,634 |
) |
Investing activities |
|
336 |
|
|
|
11,358 |
|
Financing activities |
|
4,103 |
|
|
|
(9,873 |
) |
Net (decrease) in cash and
cash equivalents |
$ |
(377 |
) |
|
$ |
(10,149 |
) |
Summary of Mack Molding Settlement
Adjustments
The following table summarizes the effect of the errors on the
Company’s consolidated balance sheet as of March 31, 2024 and
consolidated statement of operations and consolidated statement of
cash flows for the three months ended March 31, 2024:
|
March 31, 2024As Previously
Reported |
|
Adjustment |
|
March 31, 2024As Revised |
Inventory |
$ |
18,862 |
|
|
$ |
(214 |
) |
|
$ |
18,648 |
|
Accounts
payable |
|
12,428 |
|
|
|
350 |
|
|
|
12,778 |
|
Notes payable,
current |
$ |
1,374 |
|
|
$ |
(1,374 |
) |
|
$ |
— |
|
Notes payable, net
of current |
|
3,464 |
|
|
|
(3,464 |
) |
|
|
— |
|
Accumulated
deficit |
|
(265,835 |
) |
|
|
4,274 |
|
|
|
(261,561 |
) |
Total
stockholders' equity (deficit) |
|
(9,725 |
) |
|
|
4,274 |
|
|
|
(5,451 |
) |
|
Three Months Ended March 31, 2024As
Previously Reported |
|
Adjustment |
|
Three Months Ended March 31, 2024As
Revised |
Cost of goods sold |
$ |
1,869 |
|
|
$ |
564 |
|
|
$ |
2,433 |
|
Gross profit |
|
729 |
|
|
|
(564 |
) |
|
|
165 |
|
General and
administrative |
|
2,952 |
|
|
|
1,142 |
|
|
|
4,094 |
|
Gain on settlement
of contingent liabilities |
|
— |
|
|
|
(5,935 |
) |
|
|
(5,935 |
) |
Operating (loss)
income |
|
(780 |
) |
|
|
4,229 |
|
|
|
3,449 |
|
Interest income
(expense), net |
|
(145 |
) |
|
|
45 |
|
|
|
(100 |
) |
Net (loss)
income |
|
(38 |
) |
|
|
4,274 |
|
|
|
4,236 |
|
Basic |
$ |
0.00 |
|
|
$ |
0.48 |
|
|
$ |
0.48 |
|
Diluted2 |
$ |
0.00 |
|
|
$ |
0.21 |
|
|
$ |
0.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
While the adjustments changed 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, they did not have an impact on total net cash used in
operating activities, net cash used in investing activities, or net
cash provided by financing activities.
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
RelationsIR@agrify.com(857) 256-8110
Agrify (NASDAQ:AGFY)
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