Agribusiness  November 12, 2020

Surna sales shrivel 70% YoY

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BOULDER — Surna Inc. (OTCQB: SRNA), a Boulder-based manufacturer of growhouse equipment for the cannabis industry, posted a loss of more than $270,000 on $1.6 million in sales in the third quarter of fiscal year 2020, down roughly 70% from the same period last year.

As reason for the lackluster performance, the company cites “recent events in the national and global economies [that] have had an adverse impact on our operations and financial condition, including constraints on capital availability for us and our customers and prospects who have commenced, or are contemplating, new and expanded cannabis cultivation facilities.”

In a disclosure this week with the U.S. Securities and Exchange Commission, Surna said, “If our customers or prospects are unable to continue operations or obtain project financing and we are unable to increase revenues or otherwise generate cash flows from operations, we will not be able to successfully execute on our various strategies and initiatives to grow our business. If these actions do not meet our expectations, or additional near-term capital is not available, we may not be able to continue our operations.”

Still, Surna leaders expressed optimism in a disclosure this week with the U.S. Securities and Exchange commission, touting successes booking new $4.4 million in new contracts during Q3.

“The third quarter of this year has seen a dramatic turnaround in Surna’s new project bookings from the first half of the year,” Surna CEO Tony McDonald said in a prepared statement. “Our view has been that cultivation construction projects were delayed and not abandoned as a result of uncertainty around the economic impact of the pandemic. And while we did experience one large and several smaller project cancellations in the second and third quarters, we have been optimistic that project orders would rebound, especially given the continued growth of retail product sales. Fortunately, we saw just that in the third quarter.”

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BOULDER — Surna Inc. (OTCQB: SRNA), a Boulder-based manufacturer of growhouse equipment for the cannabis industry, posted a loss of more than $270,000 on $1.6 million in sales in the third quarter of fiscal year 2020, down roughly 70% from the same period last year.

As reason for the lackluster performance, the company cites “recent events in the national and global economies [that] have had an adverse impact on our operations and financial condition, including constraints on capital availability for us and our customers and prospects who have commenced, or are contemplating, new and expanded cannabis cultivation…

Lucas High
A Maryland native, Lucas has worked at news agencies from Wyoming to South Carolina before putting roots down in Colorado.
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