Agrify Corporation Announces Results for First Quarter 2024

Company achieves near break-even quarterly results

TROY, Mich., May 21, 2024 (GLOBE NEWSWIRE) — 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 first quarter ended March 31, 2024.

First Quarter 2024 Financial Results Summary

  • Revenue was $2.6 million for the first quarter of 2024, compared to $5.8 million for the first quarter of 2023.
  • Gross profit was $0.73 million for the first quarter of 2024, compared to a gross profit of $1 million for the first quarter of 2023.
  • Operating loss was $0.8 million for the first quarter of 2024, compared to $7.6 million in the first quarter of 2023.
  • Net loss for the first quarter of 2024 was $0.04 million, compared to $10 million in the first quarter of 2023.

“Following our first positive quarter in the fourth quarter of 2023, we are pleased to witness a sustained improvement in our business, marking another near break-even quarter. We have observed a notable uptick in extraction sales, particularly among prominent multi-state operators (MSOs). Additionally, consumable and part sales are on the rise as the supply of second-hand equipment diminishes, compelling operators to upgrade or replace their existing machinery. The success of our customer’s Las Vegas facility using our VFU technology has reignited interest in our VFUs, attracting both new and existing operators seeking advanced cultivation technology to enhance flower quality” stated 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 CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In thousands, except share and per share data)

    Three months ended March 31,
     2024     2023 
Revenue (including $0 and $46 from related parties, respectively)   $ 2,598     $ 5,804  
Cost of goods sold     1,869       4,816  
Gross profit     729       988  
         
General and administrative     2,952       6,931  
Selling and marketing     462       1,590  
Research and development     275       735  
Change in contingent consideration     (2,180 )     (684 )
Total operating expenses     1,509       8,572  
Loss from operations     (780 )     (7,584 )
Interest expense, net     (145 )     (799 )
Change in fair value of warrant liabilities     873       2,672  
Loss on extinguishment of long-term debt, net           (4,620 )
Other income, net     14       4  
Total other income (expense), net     742       (2,743 )
Net loss before income taxes     (38 )     (10,327 )
Income tax benefit (expense)            
Net loss     (38 )     (10,327 )
Net loss attributable to Agrify Corporation   $ (38 )   $ (10,327 )
Net loss per share attributable to Common Stockholders – basic and diluted (1)   $     $ (9.63 )
Weighted average common shares outstanding – basic and diluted (1)     8,894,229       1,072,292  

(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 CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share data)

  March 31,   December 31,
   2024     2023 
Assets (Unaudited)    
Current assets:      
Cash and cash equivalents $ 95     $ 430  
Marketable securities   4       4  
Accounts receivable, net of allowance for credit losses of $2,512 and $1,887 at March 31, 2024 and December 31, 2023, respectively   211       1,149  
Inventory, net of reserves of $17,184 and $17,599 at March 31, 2024 and December 31, 2023, respectively   18,862       19,094  
Loan receivable, current   692        
Prepaid expenses and other current assets   1,028       3,332  
Total current assets   20,892       24,009  
Loan receivable, net of allowance for credit losses of $18,885 and $19,215 at March 31, 2024 and December 31, 2023, respectively, net of current   10,891       11,583  
Property and equipment, net   7,328       7,734  
Operating lease right-of-use assets   1,651       1,803  
Other non-current assets   99       141  
Total assets $ 40,861     $ 45,270  
Liabilities and Stockholders’ Deficit      
Current liabilities:      
Accounts payable $ 12,428     $ 20,766  
Accrued expenses and other current liabilities   7,843       10,655  
Operating lease liabilities, current   615       599  
Notes payable, current   1,374        
Long-term debt, current   696       766  
Related party debt, current   1,000       4,444  
Deferred revenue   3,784       4,019  
Total current liabilities   27,740       41,249  
Warrant liabilities   417       1,290  
Operating lease liabilities, net of current   1,235       1,394  
Notes payable, net of current   3,464        
Related party debt, net of current   17,683        
Long-term debt, net of current   47       16,047  
Total liabilities   50,586       59,980  
       
Stockholders’ deficit:      
Common Stock, $0.001 par value per share, 35,000,000 and 10,000,000 shares authorized at March 31, 2024 and December 31, 2023, respectively, 13,275,702 and 1,702,243 shares issued and outstanding at March 31, 2024 and December 31, 2023, respectively (1)   13       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   255,867       250,855  
Accumulated deficit   (265,835 )     (265,797 )
Total stockholders’ deficit attributable to Agrify   (9,955 )     (14,940 )
Non-controlling interests   230       230  
Total liabilities and stockholders’ deficit $ 40,861     $ 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 CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(In thousands)

    Three months ended
March 31,
    2024   2023
    (Unaudited)    
Cash flows (used in) provided by:        
Operating activities   $ (2,987 )   $ (9,469 )
Investing activities     328       9,795  
Financing activities     2,324       (9,307 )
Net (decrease) in cash and cash equivalents   $ (335 )   $ (8,981 )

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 Relations
[email protected]
(857) 256-8110

 


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