Urban-Gro seeks cost reductions as losses mount

LAFAYETTE — Urban–Gro Inc., an agricultural-technology firm for commercial cannabis cultivators, posted a net loss of $5.3 million during the first three quarters of fiscal year 2019, more than double the $2.1 million loss posted during that same nine-month period in 2018.

Revenues in Q3 were up slightly — $5.6 million in 2019 compared with $5.3 million in the third quarter of 2018 — but the sales boost was more than offset by increasing expenses. 

‘Given the current capital markets climate, we embarked on restructuring and cost-cutting initiatives to decrease operating expense, increase focus on higher margin divisions, and improve cash flow,” Urban-Gro CEO Bradley Nattrass, said in a prepared statement that accompanied Urban-Grow’s earnings report.

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Cost-reduction strategies, which the firm began implementing in August, include: reduced spending on salaries, travel, marketing and corporate functions.