BOULDER, Col., May 20, 2015 /PRNewswire/ -- Surna Inc. (OTCQB: SRNA), 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, has announced financial results for the first quarter.
For the first quarter ending March 31st, the Company had gross revenues of $870,895 compared to $0 for the first quarter of 2014 and $632,865 for the preceding quarter. First quarter revenues represented 47% of total revenues for 2014 and 35% of the proforma revenues for 2014, respectively. The net loss for the quarter was $1.42 million which is $0.01 loss per share.
The sales activity of the Company is also reflected in the increased level of deferred revenue. Deferred revenue increased from $408,199 at year end to $786,987, a 93% increase. Deferred revenue represents contracts that are in progress pending completion. The Company does not recognize revenue from a contract until it is completed.
Surna continued to expand its technology foundation in the first quarter by investing $180,989 on research and development for new technology and products.
The Company also believes brand awareness is important to building a successful company in a nascent industry. Surna spent $82,974 for advertising and marketing in the first quarter to advance its products and brand recognition. Its general and administrative expenses were $803,742.
The Company finished the first quarter with a balance sheet that included liquid assets (cash, accounts receivable, inventory and prepaid assets) of $1,846,580, an increase of 23% over last year end. Current liabilities payable in cash total $695,884, of which $303,298 is payable to shareholders.
"We view these results as just the tip of the iceberg for Surna. This quarterly report is a reflection of the continued expansion of the Surna brand and the significant impact our disruptive technologies are having on the sector. We see this market growing exponentially and we intend to continue to execute on being the preeminent source for technology in cannabis and the CEA space," said Tae Darnell, Principal Executive Officer and General Counsel.
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
Chief Business Officer
Atlanta Capital Partners, LLC
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SOURCE Surna, Inc.