Boulder-based Surna Inc. reduced loss in 2016

BOULDER — Surna Inc., a Boulder-based tech firm designs and manufactures on products used for the indoor growth of cannabis, on Friday reported that it reduced its loss in 2016 compared with the previous year.

Net loss was $3.3 million, or 2 cents per share, compared with $5.3 million, or 4 cents per share. The company reported revenue of $7.6 million for the year, down from $7.9 million in 2015.

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Surna’s backlog — sales amounts under contract but which were not yet completed and not included in revenue — was $2.6 million at the end of 2016, up substantially from $1.4 million at December at the end of 2015.

“In 2016, we began executing growth, cost reduction and capital market initiatives that have strengthened our and financial position,” Trent Doucet, Surna’s president and chief executive, said in a prepared statement.

Fourth-quarter revenue grew 20 percent year-over-year and 72 percent compared with the third quarter. Revenue was $2 million, compared with $1.7 million in the fourth quarter of 2015 and $1.2 million in the third quarter of 2016, reflecting increased sales of the company’s climate-control equipment.

Doucet said medicinal and recreational segments of the cannabis cultivation market are growing rapidly in the United States and internationally.

“We have been building our presence and recently signed our sixth deal in Canada. In 2017, we anticipate rolling out our next generation equipment as well as beta test of our control and automation platform,” he said.

Recently, the company converted $3.2 million in principal and interest, or 100 percent of the obligations related to convertible promissory notes, in a series of transactions beginning in the fourth quarter of 2016 through March 2017.

It also raised $2.7 million in the sale of equity in a series of closings in March 2017.

In February, the company landed a contract with Vancouver’s Sante Veritas Therapeutic to design and provide equipment for the environmental control system in its first commercial cultivation facility.