BOULDER — Surna Inc., a Boulder-based company that engineers equipment for the indoor cultivation of cannabis, reported a loss of $669,000, or 0 cents per share, for its third quarter that ended Sept. 30.
The loss was less than the $1.3 million loss, or 1 cent per share, Surna reported during the same period a year ago. That’s despite the company taking a hit in revenue, which dropped to $1.2 million for the quarter, compared with $3.6 million reported for the same period a year ago.
The company attributed the decline primarily to delays in customer readiness to accept equipment, and said it continues to expect quarterly sales will fluctuate due primarily to the timing of state legislation, procedural set up, licensing and general availability.
Last week, eight states, including California, initiated legalization of cannabis or expanded their status to include adult recreational use.
“This is expected to fuel tremendous growth in the CEA equipment market as these states come online in the next few years,” Trent Doucet, Surna’s president and chief executive, said in a prepared statement. “To prepare for this significant increase in demand, we have been strengthening our foundation by improving our infrastructure, customer-service policies and project-management procedures.”
Doucet said Surna is gaining recognition for its “energy-efficient solutions coupled with our expertise in climate conditions necessary for optimal product yield.”
Surna had cash on hand of $235,000 as of Sept. 30, compared with $331,000 at Dec. 31, 2015.
For the first nine months of 2016, Surna’s revenue was $5.6 million, compared to $6.2 million for the same period a year ago. Net loss was $2.1 million, or 2 cents per share, compared with $3.7 million, or 3 cents per share for the first nine months of 2015.
Surna’s stock was trading at 15 cents per share mid-day Monday. The stock has ranged from 5 cents to 29 cents per share during the past 52 weeks.