Surna reports $3.3 million loss for fiscal year

BOULDER — Surna Inc., a Boulder-based manufacturer of equipment and systems that control the environment for commercial indoor cannabis cultivation, reported a loss of $3.3 million for its fiscal year that ended Dec. 31, the company announced Tuesday.

Surna (OTCQB: SRNA) said it generated revenue of $2.5 million for the period.

The company began operations in April 2014, shortening its year-end results to a nine-month period. During the fiscal year, Surna acquired Boulder-based Hydro Innovations, which made cooling systems for indoor gardens.

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For the year that ended Dec. 31, Surna had revenue of $1.8 million, and combined with Hydro Innovations had revenue of $2.5 million. Net loss attributed to Surna was $2.9 million, and combined with Hydro the loss was $3.3 million.

Surna finished the year with $1.4 million in liquid assets (cash, accounts receivable, inventory and prepaid assets) and accounts payable in cash totaled $725,231, of which $303,672 is payable to shareholders. During the year, Surna raised $2.96 million through the issuance of convertible debt.

The company entered 2015 with $408,200 in contracts that were in progress during 2014; corresponding revenue was deferred to 2015 pending completion of the contracts.

Bryon Jorgenson, Surna’s chief operation officer, said 2014 was “a year of building infrastructure for new technology, producing innovative new products, and establishing Surna’s presence in the market.”

The board of directors is searching for a new chief executive to replace Tom Bollich who departed the company April 17. Tae Darnell will serve as principle executive officer until a new CEO is appointed.