Surna Reports 2015 Second Quarter Results
17 Aug, 2015, 08:00 ET
BOULDER, Colorado, August 17, 2015 /PRNewswire/ -- Surna Inc. (OTCQB: SRNA), a technology company that engineers state-of-the art equipment for controlled environment agriculture ("CEA") with special expertise in cannabis cultivation, has announced financial results for the three and six months ended June 30, 2015.
For the six months ended June 30, 2015, the Company reported gross revenues of $2,548,845 compared to $346,559 for the same period in 2014, an increase of 635%. Revenues for the three months ended June 30, 2015 were $1,677,950, up from $870,895 in the previous quarter, and more than quadruple the $346,559 in revenue during the same period in 2014.
Similarly, deferred revenue increased to $1,423,321 from $408,199 at year end, a 249% increase. Deferred revenue represents contracts that are in progress, as the Company does not recognize revenue until the contract is completed.
Surna continues to move toward profitability. The net loss for the three and six months ended June 30, 2015 was $976,610 and $2,395,053, respectively compared to $2,121,567 and $2,175,174, respectively for 2014.
In the first six months of 2015, Surna continued to expand its technology portfolio by investing $309,443 in research and development, up from $7,768 in 2014.
The Company also believes brand awareness is important to build a company in a nascent industry. Surna spent $175,454 for advertising and marketing in the six months ended June 30, 2015 compared to $78,351 in 2014 to advance its products and brand recognition.
General and administrative expenses were relatively flat from Q1 of $803,742 to Q2 of $821,030 while increasing revenues 93% quarter over quarter.
The Company finished the second quarter with a balance sheet that included liquid assets (cash, accounts receivable, inventory and prepaid assets) of $1,890,048, an increase of 33% over last year end of $1,405,913.
"We are very excited about the strong revenue numbers which demonstrate our ability to execute and deliver valuable products to a rapidly expanding industry," said Doug McKinnon, Surna's CFO. "By continuing to meet demand with our current product offerings and expanding our opportunities with new products, we are confident in our future prospects."
As announced on August 13, 2015, Surna will host an investor conference call on August 20, 2015, at 4:45pm EDT/1:45pm PDT. Current and potential shareholders may participate by calling 1-800-829-7603 and entering conference code 7627746# when prompted by the system.
Surna, Inc. (www.surna.com) develops innovative technologies and products that monitor, control and 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 CEA. Though its clients do, the Company neither produces nor sells cannabis.
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 cannabis. 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
+1 (303) 993-5271
Atlanta Capital Partners, LLC
+1 (404) 856-9157
(866) 692-6847 Toll Free - U.S. And Canada
SOURCE Surna, Inc.
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