BOULDER, Colorado, November 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 nine months ended Sept. 30, 2015.
For the nine months ended Sept. 30, 2015, the Company reported gross revenues of $6,182,936 compared to $1,206,047 for the same period in 2014, an increase of 413%.
Revenues for the three months ended Sept. 30, 2015 were $3,634,091, up from $1,677,950 in the previous quarter, and $859,488 in revenue during the same period in 2014.
Similarly, deferred revenue increased to $1,489,781 from $408,199 at year-end, a 265% increase. Deferred revenue represents contracts that are in progress, as the Company does not recognize revenue until the equipment is shipped.
The net loss for the three and nine months ended Sept. 30, 2015 was $1,335,422 and $3,730,475, respectively. The third quarter operating loss was $540,406, down from $690,773 in the prior quarter.
In the first nine months of 2015, the Company spent $533,808 in product development costs, primarily on the Surna Reflector. The Surna Reflector is Surna's first product to combine lighting and environmental control into one unit while increasing light delivery to the plant canopy.
Marketing and branding expenses totaled $148,656 and $324,110 for the three and nine months ended Sept. 30, 2015. General and administrative expenses remained essentially flat with $846,806 in Q3 compared to $821,020 in Q2.
The Company finished the third quarter with a balance sheet that included liquid assets (cash, accounts receivable, inventory and prepaid assets) of $3,328,868, an increase of 137% over last year-end of $1,405,913.
"We had a strong quarter, with an increase in revenue growth of over 116% over Q2. The leadership team continues to implement cost savings measures and negotiate more favorable terms with our vendors in an effort to bring the company closer to profitability in the coming months," said Stephen Keen, Surna's CEO.
Surna will host an investor conference call on Monday Nov. 23, 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. The conference call will be listen-in only, but will include a Q&A session comprising questions submitted by current or potential shareholders. Interested parties may send their questions to firstname.lastname@example.org until 12:00 PM Eastern Time the day of the call. Investors may also submit questions in real time via Twitter by directing the tweet to @surnainc or by using the hashtag: #surnaconfcall. Subject to time restrictions, Surna will attempt to answer some of the questions submitted via Twitter during the call.
Surna, Inc. (http://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
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SOURCE Surna Inc.