Key Takeaways
- Agrify reported a challenging fiscal year in 2022 but made strategic adjustments in 2023.
- Q1 2023 saw a decline in revenue and gross profit compared to Q1 2022.
- FY 2022 experienced a notable decrease in revenue and a significant net loss.
- Agrify launched new products in its extraction division and achieved milestones in cultivation.
FY2022 and Q1 2023 Financial Overview
Fiscal Year 2022
- Revenue: Agrify’s revenue for FY 2022 was $58.3 million, marking a 2.7% decrease from $59.9 million in FY 2021.
- Gross Profit: The company faced a gross loss of $31.8 million in FY 2022, in contrast to a profit of $5.2 million in FY 2021.
- Operating Expenses: Operating expenses surged to $161.5 million, significantly higher than $40.3 million in FY 2021, primarily due to impaired goodwill and bad debt expenses.
- Net Loss: Agrify recorded a net loss of $188.2 million, or $902.19 per share, compared to a net loss of $32.5 million in FY 2021.
First Quarter 2023
- Revenue: Revenue decreased to $5.8 million in Q1 2023 from $26.0 million in Q1 2022.
- Gross Profit: Gross profit was $1.0 million in Q1 2023, down from $4.2 million in the same period last year.
- Operating Expenses: There was a decrease in operating expenses to $8.6 million in Q1 2023, compared to $13.9 million in Q1 2022.
- Net Loss: The net loss for Q1 2023 was $10.3 million, a significant change from a net income of $1.8 million in Q1 2022.
Business Highlights and Strategic Changes
Extraction Division
- New Products: Agrify launched the Cannabeast 13 Distillation System and the PX30 Hydrocarbon Extraction System, both indicating advancements in extraction technology.
- Safety Standards: The company achieved UL Compliance for EXP Rooms, enhancing safety and quality in cannabis extraction facilities.
Cultivation Division
- Commercial Success: Agrify assisted Nevada Holistic Medicine and Denver Greens LLC in achieving commercial success with their cultivation efforts.
- New Agreements: The company signed agreements with Golden Lake Business Park and Harvest Works, expected to begin commercialization in 2024.
CEO’s Remarks
Raymond Chang, CEO of Agrify, emphasized the company’s focus on restructuring debts, reducing costs, improving product offerings, and expanding into international markets. He also highlighted the value addition from the acquisition of four extraction companies and the resulting synergies expected to enhance performance in 2024.
Agrify Latest News
Agrify Corporation Notified Of Non-Compliance With Listing Rule (2023/11/23)
Agrify Corporation, a cannabis industry solutions provider, failed to file its Q3 report with the SEC, resulting in a non-compliance notification from Nasdaq. While there is no immediate effect on its listing, there are concerns about potential delisting if compliance isn’t regained promptly. The issue is partly due to errors in accounting for previously issued warrants. Nasdaq staff has initiated a process that could result in delisting, but Agrify plans to complete the delayed financial reports and file them.
Agrify Announces Credit Facility Transfer & Anticipated New Equity Investment (2023/10/31)
Agrify Corporation announced a definitive agreement with CP Acquisition LLC, its new lender. CP Acquisition LLC has purchased all outstanding convertible and senior secured notes from the existing institutional lender and plans to participate in a future equity raise for Agrify. The new lender has agreed to waive any events of default under the acquired notes until December 31, 2023, and to extend the maturity date until December 31, 2025. The company aims to rebound and reestablish itself as the preeminent solution provider for the cannabis industry with the potential for future injections of capital.
Agrify Faces Potential Delisting from Nasdaq (2023/10/23)
Agrify Corporation received a notice from Nasdaq’s Listing Qualifications Department. The notice highlighted the possibility of Agrify’s securities getting delisted from Nasdaq, given the company’s non-compliance with a specific Nasdaq Listing Rule.
Agrify Corporation Completes Restatement of Prior Period Financial Results (2023/10/03)
Agrify Corporation (Nasdaq: AGFY), a leading provider of cultivation and extraction solutions for the cannabis industry, announced the completion of restatements for its financial results for the first three quarters of the 2022 fiscal year. The restated financials will be filed with the U.S. Securities and Exchange Commission (SEC) today.
Agrify Faces Nasdaq Listing Compliance Challenges (2023/08/22)
Agrify Corporation (Nasdaq: AGFY), a prominent player in providing innovative cultivation and extraction solutions for the cannabis industry, revealed that it had received a notification from the Nasdaq Stock Market LLC (Nasdaq) regarding its non-compliance with Nasdaq Listing Rule 5250(c)(1). This non-compliance arose due to the company’s failure to timely file its Quarterly Report on Form 10-Q for the fiscal quarter ending June 30, 2023, with the Securities and Exchange Commission (SEC).
Agrify Announces 1-for-20 Reverse Stock Split (2023/07/05)
Agrify Corporation has recently announced a 1-for-20 reverse stock split. This decision was approved by the Company’s Board of Directors and is scheduled to take effect at 12:01 a.m. on Wednesday, July 5, 2023. The purpose of the reverse stock split is to increase the per share trading price of Agrify’s common stock to meet the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
Agrify Introduces New Diamond Miner Product for Premium Cannabis Concentrates Production (2023/06/05)
Agrify Corporation (Nasdaq: AGFY) announced the introduction of its new Diamond Miner product. Released under its solvent extraction brand, Precision Extraction Solutions, the Diamond Miner offers a safe, reliable, and consistent method for THC-A crystallization of cannabis, facilitating the production of premium concentrates.
Agrify Introduces PurePack (2023/05/24)
Agrify Corporation (Nasdaq: AGFY) has recently unveiled its latest offering, PurePacks. These cutting-edge rosin bags, developed under Agrify’s solventless extraction brand PurePressure, feature seamless, double filtration technology, setting a new standard in the industry.
Agrify Corporation Announces Leadership Restructuring to Foster Long-Term Growth (2023/05/26)
Agrify Corp (Nasdaq: AGFY) announced three leadership changes to ensure sustainable long-term growth. David Kessler is now Executive Vice President, Chief Science Officer, and General Manager of the Cultivation Division. Brian Towns is promoted to Executive Vice President and General Manager of the Extraction Division. Sheryl Elliott is now Senior Vice President of Human Resources. Stuart Wilcox has resigned as Chief Operating Officer. Raymond Chang, Chairman, and Chief Executive Officer of Agrify expressed excitement about these changes.
Agrify Corp Receives Non-Compliance Notification From NASDAQ (2023/04/25)
Agrify Corporation (Agrify Stock: AGFY) has received a notification from Nasdaq for non-compliance with Listing Rule 5250(c)(1) due to its failure to file its Annual Report on Form 10-K for the fiscal year ended December 31, 2022. The company’s non-compliance is rooted in accounting errors related to previously issued warrants, which necessitate the restatement of its financial statements for specific quarters of 2022. Although the listing of Agrify’s common stock is currently unaffected, a failure to regain compliance could result in its delisting from Nasdaq. To rectify this, Agrify has until June 20, 2023, to submit a plan for regaining compliance. The company stated that it strives to file its Form 10-K within this period, eliminating the need for a formal plan.
Agrify Corporation Reduces Warrant Exercise Price (2023/04/20)
Agrify Corporation has announced its entry into warrant inducement letters to raise $1.84 million in gross proceeds from exercising 10,651,430 common stock warrants. In addition, Agrify has reduced the exercise price of all the existing warrants from $0.65 per share to $0.1725 per share, allowing select investors to exercise their existing warrants at the reduced price. The move is indicative of Agrify’s commitment to innovation and growth in the cannabis industry, and the company’s proprietary micro-environment-controlled Vertical Farming Units (VFUs) and comprehensive extraction product line are empowering producers to maximize quality and yield at scale.
Completes Turnkey Facility for Denver Greens (2023/04/12)
Agrify Corporation (Agrify Stock: AGFY) has announced that Denver Greens is expected to become its new operating partner by acquiring the total turnkey (TTK) project, Greenstone. The final approval from the Colorado Marijuana Enforcement Division (MED) and the execution of documentation is still pending. The program comprises designing and constructing facilities for cultivation and extraction, providing cutting-edge equipment for these processes, process design, training, and implementation, as well as tried-and-true grow recipes, product formulations, and data analytics. Denver Greens is a 9,000-square-foot facility built in phases with extraction and cultivation capabilities.
Completes Las Vegas Facility, Share Price at All-Time Low (2023/03/24)
Agrify Corporation has completed the construction of a cultivation facility for Nevada Holistic Medicine, equipped with 132 Vertical Farming Units, and production, which will generate recurring SaaS and Production Success Fees for Agrify, is set to commence in April. Despite this milestone, the company’s stock is at an all-time low, below the necessary $1 mark, raising concerns about potential de-listing. Furthermore, the company’s expected Earnings Per Share of -$57.38 and sales of $63.7M for the 2022 financial year represent a decline in performance. An ongoing lawsuit exacerbates the company’s challenges. Nevertheless, some institutional investors, including UBS Securities LLC, IFP Advisors, and Merlin Capital LLC, have acquired more shares, demonstrating continued faith in Agrify’s potential, even as others have shorted their positions.
Credit Facility Amended (2023/03/10)
Agrify Corp has agreed with its institutional lender to amend its credit facility. The agreement states that the lender can convert the Convertible Note any time before its maturity date in August 2025. However, if Agrify raises at least $8.0 million in equity before August 19, 2023, the lender cannot redeem the August 2022 or the Convertible Note in August 2023. This provision benefits Agrify by incentivizing raising additional capital, strengthening its financial position, and reducing its reliance on debt.
Agrify Implements Cost-Saving Plan As it Aims To Decrease Cash-Burn Rate (2023/01/23)
To align its resources with the current operating environment, aiming to achieve positive cash flow by the end of 2023. This plan involves trimming costs, leveraging cost synergies from its four extraction brands acquired in 2021 and 2022, optimizing sales efforts, and assembling industry-leading talent. Agrify’s cost reduction strategies include effective supplier agreements, volume discounts, less dependency on contract manufacturers, and implementing an enterprise resource planning (ERP) system. The company has also simplified its organizational structure and strategically consolidated its offices and facilities. According to CEO Raymond Change, these strategies, alongside a growth focus on cultivation, are expected to facilitate stability, generate up to USD 7 million in cost savings in 2023, and help the company weather current headwinds.
Closed USD 8.7M Public Offering (2022/12/21)
Agrify Corporation (NASDAQ: AGFY) closed its previously announced underwritten public offering of 11,884,615 shares of its common stock. Instead of common stock, confident investors were offered pre-funded warrants. The aggregate gross proceeds from the Offering were approximately $8.7 million.
Agrify Reports Catastrophic Q3 & Faces Hostile Take-Over (2022/11/09)
Agrify Corporation’s Q3 2022 financial results showed a significant drop in revenue, falling to $7.0 million from an expected $15.0 million due to business decisions and a pending lawsuit. This marked a 55.4% decrease from $15.8 million for the same period in the prior year. However, year-to-date revenue increased by 51.4% to $52.4 million, compared to $34.6 million in the prior year-to-date period. The company’s operating expenses and net loss for Q3 and year-to-date also surged due to factors like loan reserve increases and acquisition-related earnout arrangements. In addition, Bud & Mary’s lawsuit led Agrify to lower its revenue guidance for FY2022 from $70.0 million to $75.0 million to between $65.0 million and $70.0 million. Meanwhile, shareholder Marc Beginin has reported plans for a hostile takeover after attempts to build his own in the company were countered by share dilution.
Registers New Orders For Its Cannabis Extractor (2022/11/03)
Agrify Corp is set to install its new PX10 hydrocarbon cannabis extractor at three customer sites, including a new partnership with Alchemist Ventures in Maryland. The PX10, which debuted in August, is a hydrocarbon extraction technology with a unique passive recovery design, boasting twice the capacity and output of its predecessor, the PX5. As a result, it offers immediate economic benefits and allows customers to expand into desired markets rapidly and at scale. Under its purchase agreement with Alchemist, Agrify will supply a full suite of extraction and post-processing equipment and specialized training. Alchemist plans to use the PX10 and other equipment to produce a range of high-quality extracts for the burgeoning Maryland market, where adult-use cannabis may soon be legalized.
Performs A 1-for-10 Reverse Stock Split (2022/10/18)
Agrify Corp (Nasdaq: AGFY) announced that the Company’s Board of Directors approved a 1-for-10 reverse stock split. effective at 12:01 a.m. on Tuesday, October 18, 2022. The Company’s common stock will open for trading on the Nasdaq Capital Market on Tuesday, October 18, 2022, on a split-adjusted basis under the current trading symbol “AGFY.” The reverse stock split was approved by the Company’s stockholders on October 14, 2022, and is intended to increase the per-share trading price of the Company’s common stock to enable the Company to satisfy the minimum bid price requirement for continued listing on the Nasdaq Capital Market.
Agrify Reports a $93M Net Loss (2022/08/15)
Agrify Corporation reported its Q2 2022 financial results, with a challenging quarter for the cannabis industry due to changes in market realities. Despite this, Agrify increased its revenue by 63.5% to $19.3 million compared to the same quarter in the previous year, and the year-to-date revenue also rose by 140.8% to $45.4 million. However, the company experienced a net loss of $93.4 million for Q2 and $102.3 million year-to-date, primarily attributed to $69.9 million in impairment charges, among other factors. Operating expenses also significantly rose in both periods due to these factors. Meanwhile, Agrify’s partnership with New Zealand-based company Ora Pharm and the unveiling of its CannaBeast 13 system were significant business highlights. Agrify is restructuring its credit facility to cope with the industry challenges and aims to generate between $70 million and $75 million in total revenue for Fiscal Year 2022.
Changes Board Of Directors (2022/07/15)
Agrify Corp announced significant leadership changes to support the company’s growth. Max Holtzman, Operations Director at Ocean 14 Capital and former Senior Advisor to the U.S. Secretary of Agriculture, has been appointed an Independent Director on Agrify’s Board of Directors. Stuart Wilcox, former Chief Operating Officer of Curaleaf, who served as an Independent Director on Agrify’s Board, has been appointed Agrify’s Chief Operating Officer. Chris Benyo, who joined Agrify in January 2022 and served as Senior Vice President and General Manager for Agrify’s Extraction Division, has been promoted to Chief Revenue Officer. Meanwhile, Thomas Massie, Agrify’s former President, and COO, has left the company and resigned from the board to pursue other opportunities.
Q1 Marks Record Revenue For Agrify (2022/05/12)
Agrify Corporation, a leading provider of advanced cultivation and extraction solutions for the cannabis industry, has reported strong financial results for Q1 2022. The company experienced a 271% increase in revenue, reaching $26.0 million compared to $7.0 million for the same period last year. Gross profit for Q1 2022 was $4.2 million, or 16% of the revenue. However, operating expenses and net losses also increased due to growth in the scale of the company’s core business and recent acquisitions, among other factors. Despite this, Agrify made notable strides, including a $2 million agreement with Boone Labs, launching the PX5 product from its Extraction Division, and announcing various sales agreements and partnerships. These developments illustrate Agrify’s progress in expanding its customer base and innovating its product offerings.
Image provided by Agrify
