Surna records first profitable quarter

BOULDER — Surna Inc. (OTC: SRNA), a manufacturer of environmental-control and air-sanitation systems for indoor cannabis-cultivation, posted a quarterly profit for the first time in company history.

The firm, which faced questions about its cash flow and ability to continue operations as recently as 2017, generated net income of $140,000 in the second quarter of fiscal year 2019. That’s up from a loss of more than $1.4 million during the same period last year. 

Surna’s revenues in the second quarter of this year were a record $4.2 million, surpassing a previous quarterly high of $3.6 million.

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“In early 2019, we announced a number of milestones that we hoped to achieve as part of our recently launched organic growth plan. At the top of this list were two financial goals: increasing revenue and achieving profitability. Both of these goals were achieved for Q2 2019 — and both milestones are records for the company,” CEO Tony McDonald said in a prepared statement. “Moreover, during the second quarter, we also increased our cash resources by nearly $1.5 million. One quarter of strong results, however, does not constitute a trend, and we know we must build our sales pipeline with more multi-facility operators and other customers in an effort to sustain our revenue growth and cash profitability.”

The company has set an annual revenue target of $20 million to $40 million in order to achieve long-term financial sustainability.