Urban-Gro grows loss on lower revenues

LAFAYETTE — Urban–Gro Inc., a cultivation systems integrator and agricultural-technology firm for commercial cannabis cultivators, posted slightly lower revenues in the second quarter of fiscal year 2019, leading to a higher loss than was recorded during the same period last year.

Quarterly revenues were $5.64 million, compared to nearly $5.9 million in the second quarter of 2018.

Losses in the most recent period that ended June 30 were $1.43 million, or 6 cents per share. That’s up from a loss of just under $500,000, or 2 cents per share in the same quarter last year.

While quarterly results are down compared to the second quarter of 2018, revenues are actually up about 23 percent when you compare the first six months of this year to the first six of 2018.

“While this increase is partially attributable to the general growth of the cannabis industry in North America, we believe that this increase primarily occurred as a result of our increased marketing efforts and industry demand for large, environmentally controlled, grow facilities,” according to an Urban-Gro document filed with the U.S. Securities and Exchange Commission earlier this week.

Urban-Gro now employs roughly 60 people, including 20 who were added in the past year. The company last year opened a satellite office in the WeWork Lab facility in the Lower Highlands area of Denver.

In March, the company acquired Denver-based Impact Engineering Inc., a mechanical design and engineering company focused on the cannabis industry.

“Management believes the acquisition of Impact will improve the company’s ability to better serve its current and future customer base by expanding on the fully integrated products and services offered by the company,” according to SEC documents.

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