Growhouse engineer Surna furloughs staff, draws back operations

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BOULDER — Although it reported a 59 percent increase in sales from 2018 to 2019, Boulder-based cannabis growhouse engineering firm Surna Inc. (OTCQB: SRNA) said it will narrow operations toward sales and ongoing projects as economic conditions freefall from the effects of the COVID-19 virus.

In an earnings report filed to the U.S. Securities and Exchange Commission Thursday, the company reported $15.9 million in revenue last year, with $6.7 million of that coming from a single customer. It reported an overall net loss of $1.34 million for the year, a 71 percent decrease compared to 2018.

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However, the company said the economic conditions caused by the COVID-19 virus has forced many of its customers and prospective customers to hold back on building or expanding their growhouse operations. That will require the company to lay off an undisclosed number of staff, reduce salaries for remaining workers and focus solely on revenue-earning endeavours.

In an interview with BizWest, CEO Tony McDonald declined to say how many employees were furloughed, but said the company is fully operational outside of being able to send staff to verify equipment is working at customer locations.

He also said the majority of Surna’s materials are “drop-shipped” to customers, or sent from a third-party retailer, and the amount of in-house manufacturing has been reduced to about one day per week. The rest of the staff are working remotely.

“We’re selling projects, bringing in cash and fulfilling projects that are already on the books,” he said.

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