BOULDER, Colo., Apr. 21, 2015 /PRNewswire/ -- Surna Inc. (OTCQB: SRNA), is a technology company that engineers, manufactures, and distributes state-of-the art equipment and systems for controlled environment agriculture ("CEA") currently specializing in commercial indoor cannabis cultivation, announced financial results for 2014 and subsequent events.
In April 2014, the Company began operations and in its third quarter closed on its acquisition of Hydro Innovations. For the year ended December 31, 2014, the Company had gross revenues of $1,838,912 and on a combined proforma basis with Hydro Innovations it had gross revenues of $2,488,837. The net loss for the year and combined proforma loss were $2,991,969 and $3,263,320, respectively.
Surna established its foundation as a technology-based company, spending $319,430 on research development for new technology and products, accounting for 17% of the Company's revenue. The Company spent $240,784 for advertising and marketing to advance its products and brand recognition. Its general and administrative expenses were $2,636,244, which included a non-recurring one-time non-cash expense of $1,330,000.
The Company finished the year with a balance sheet that included liquid assets (cash, accounts receivable, inventory and prepaid assets) of over $1,400,000 while current accounts payable in cash totaled $725,231, of which $303,672 is payable to shareholders. During the year, the Company raised $2,961,000 through the issuance of convertible debt and an additional $911,000 subsequent to year end.
The Company entered 2015 with $408,200 in contracts that were in progress during 2014; corresponding revenue was deferred into 2015 pending completion of the contracts.
"2014 was a year of building infrastructure for new technology, producing innovative new products, and establishing Surna's presence in the market," says Bryon Jorgenson, COO.
The Company announced the departure of Tom Bollich as CEO and Board Member effective April 17. It was expected that Bryon Jorgenson would succeed Bollich following his resignation; however, Jorgenson will not serve as the Company's President or Chief Executive Officer at this time, instead he will continue to serve as the Company's Chief Operating Officer. Tae Darnell will assume the position of Principle Executive Officer until the Board of Directors appoints the next Chief Executive Officer.
Darnell stated, "Tom's presence will be missed, but he put in place a creative team of engineers and staff to meet the needs of the dynamic cannabis market."
About Surna, Inc.:
Surna, Inc. (www.surna.com) develops innovative technologies and products that monitor, control or address the energy and resource intensive nature of indoor cannabis cultivation. Currently, the Company's revenue stream is based on its main product offerings – supplying industrial technology and products to commercial indoor cannabis grow facilities.
Headquartered in Boulder, CO, Surna's diverse engineering team is tasked with creating novel energy and resource efficient solutions, including the Company's signature water-cooled climate control platform. The Company's engineers continuously seek to create technology that solve the highly specific demands of the cannabis industry for temperature, humidity, light and process control.
Surna's goal is to provide intelligent solutions to improve the quality, the control and the overall yield and efficiency of indoor cannabis cultivation. The Company's operations exclude the production or sale of marijuana.
Safe Harbor Statement
This news release contains statements that involve expectations, plans or intentions (such as those relating to future business or financial results, new features or services, or management strategies) and other factors discussed from time to time in the Company's Securities and Exchange Commission filings. These statements are forward-looking and are subject to risks and uncertainties, so actual results may vary materially. You can identify these forward-looking statements by words such as "may," "should," "expect," "anticipate," "believe," "estimate," "intend," "plan" and other similar expressions. Our actual results, such as the Company's ability to finance, complete and consolidate acquisition of IP, assets and operating companies, could differ materially from those anticipated in these forward-looking statements as a result of certain factors not within the control of the company such as a result of various factors, including future economic, competitive, regulatory, and market conditions. The company cautions readers not to place undue reliance on any such forward-looking statements, which speak only as of the date made. The company disclaims any obligation subsequently to revise any forward-looking statements to reflect events or circumstances after the date of such statements or to reflect the occurrence of anticipated or unanticipated events.
Statement About Cannabis Markets
The use, possession, cultivation, and distribution of cannabis is prohibited by federal law. This includes medical and recreational marijuana. Although certain states have legalized medical and recreational cannabis, companies and individuals involved in the sector are still at risk of being prosecuted by federal authorities. Further, the landscape in the cannabis industry changes rapidly. What was the law last week is not the law today and what is the law today may not be the law next week. This means that at any time the city, county, or state where cannabis is permitted can change the current laws and/or the federal government can supersede those laws and take prosecutorial action. Given the uncertain legal nature of the cannabis industry, it is imperative that investors understand that the cannabis industry is a high risk investment. A change in the current laws or enforcement policy can negatively affect the status and operation of our business, require additional fees, stricter operational guidelines and unanticipated shut downs.
At the Company
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SOURCE Surna, Inc.