Surna Inc. (OTCQB: SRNA) reported revenue of $1,771,000 for the first quarter versus $2,055,000 for Q1 2018, a decrease of $284,000, or 14%. The company also noted that its fourth-quarter 2018 revenue was $2,195,000, representing a quarter-over-quarter decrease of $424,000, or 19%.
In addition to the drop in revenue, Surna delivered a first-quarter net loss of $900,000 versus last year’s net loss of $1,884,000 for the same time period. This was a decrease of $984,000, or 52%. The company said that its 2018 fourth-quarter net loss was $816,000, representing a quarter-over-quarter increase of $84,000, or 10%.
“In late 2018, we announced and subsequently launched a re-set for Surna, with a focus on cost reductions and a revised organic growth plan,” said CEO Tony McDonald. “We believe this plan is being reflected in our modest quarter-over-quarter revenue declines and our cost savings, which reduced our operating cash burn by nearly $300,000 over the prior quarter. We also had net bookings of $4.8 million in Q1 2019, surpassing our previous quarterly high set in Q1 2018. More importantly, since year-end, we are recording new orders/bookings for retrofit and expansion projects. These projects have a more accelerated, predictable completion cycle and revenue stream and should provide revenue momentum over the next couple of quarters as the projects are completed and revenue is recognized.”
On a positive note, the company said it had cash and cash equivalents of $465,000, compared to cash and cash equivalents of $253,000 as of December 31, 2018, an increase of $212,000, or 84%.
GrowLife, Inc. (OTC: PHOT) reported a 216% increase in revenue for the second quarter to $2,244,279 from $708,936. Still, the company reported a net loss of $2.3 million, an improvement over last year’s loss of $4.2 million for the same time period.
“I could not be more excited to share the tremendous growth that GrowLife delivered in this first quarter of 2019 as shown by the increase in revenues, paired with our over 34% gross margins, compared to last year’s 8-10%,” said GrowLife CEO Marco Hegyi. “As the cannabis and hemp industries continue to experience explosive growth across the globe, GrowLife is keeping pace with this growth, which is a positive sign for our company and our future potential. This quarter’s $2,244,279 in revenue represents nearly half of the sales generated in 2018.”