Surna Inc. warns of potential reduced operations

BOULDER — Surna Inc. is warning of an uncertain future, with the company posting a loss of 1 cent per share in its second-quarter earnings report, with a net loss of $1 million.

Its loss grew from the same period last year, when the company lost $703,700.

The Boulder-based provider of agricultural equipment, used often for cannabis growhouses, also had its revenue down 8 percent from $1.9 million in the second quarter of 2016, compared with $1.7 million in the second quarter of 2017.

The company said its decline in revenue is connected to its current sales contracts, which were not in place by the end of the second quarter in 2016, and to uncertainty on how the Trump administration will handle legalized cannabis.

If it is unable to generate sufficient cash flow from its operations — its cash balance as of June 30 was $1.35 million — or raise capital, Surna warned that it will likely have to reduce the size and scope of its operations.

“Our officers and shareholders have not made any written or oral agreement to provide us additional financing,” the company wrote in its statement. “There can be no assurance that we will be able to continue to raise capital on terms and conditions that are deemed acceptable to us, or at all.”

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