Surna Archives - Green Market Report

StaffMay 14, 2019



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.”


StaffAugust 14, 2018


GrowGeneration Corp.

GrowGeneration Corp. (GRWG), one of the largest specialty retail hydroponic and organic gardening stores, selling to both the commercial and home cannabis markets, with currently 18 locations, reported financial results for its 2nd quarter ended June 30, 2018.

The company delivered revenue of $7.15 million, up 74% compared to revenue of $4.1 million for the 2nd quarter of 2017. Store operating costs have declined 13% from 18.2% for the 2nd quarter 2017 to 16.1% for the 2nd quarter of 2018. YTD revenue of $11.5 million, up 72% compared to YTD revenue of $6.7 million for 2017. YTD store operating costs have declined from 19.4% for the six months ended June 30, 2017, to 17.6% for the six months ended June 30, 2018.

The company had $17.4 million in cash and cash equivalents at June 30, 2018. As of June 30, 2018, the company had working capital of $24.5 million compared to working capital of $5.6 million at December 31, 2017.

Surna Inc.

Surna Inc. (SRNA) announced operating and financial results for the three and six months ended June 30, 2018.  Surna Inc. designs, engineers and manufactures application-specific environmental control and air sanitation systems for commercial, state- and provincial-regulated indoor cannabis cultivation facilities in the U.S. and Canada.

The company reported that its Q2 2018 revenue was $2,008,000, a decrease of $47,000, or 2%, compared to Q1 2018.  It had Q2 2018 net bookings of $3,867,000, a decrease of $756,000, or 16%, compared to Q1 2018.  The ending backlog as of June 30, 2018, was $8,883,000, an increase of $1,859,000, or 26%, compared to the March 31, 2018 backlog, and its largest quarter-end backlog. The Q2 2018 gross profit margin was 26%, an increase of seven percentage points from its Q1 2018 gross profit margin.

CannTrust Holdings Inc.

CannTrust Holdings Inc. (TRST), a Canadian licensed producer of medical announced financial and operating results for the three and six months ending June 30, 2018. All amounts expressed are in Canadian dollars.

Revenue for the three and six month periods ended June 30, 2018 was $9,050,239 and $16,890,086 respectively, compared to $4,541,378 and $7,574,623 in the comparable 2017 periods. Net income for the three and six month periods ended June 30, 2018, was $104,905 and $11,547,015respectively, compared to a net income of $754,864 and a net loss of ($23,040) in the comparable 2017 periods.

Earnings for the current period were impacted by approximately $1.5 million of increased costs associated with the ramp-up of the Niagara Perpetual Harvest Facility. Earnings per share for the three and six month periods ended June 30, 2018, was $Nil and $0.12 respectively, compared to earnings per share of $0.01 and $Nil in the comparable 2017 periods.

William SumnerMay 15, 2018


Surna Inc. (SRNA) today announced its financial and operational results for the quarter ending on March 31, 2018.

The company’s net bookings rose 88%, increasing from $2,454,000 in the previous quarter to $4,623,000. Revenue declined sequentially by 11%, falling from $2,309,000 in the previous quarter to $2,055,000. Compared to the same period in the previous year, however, revenue increased by 29%.

Over the last year, the company’s gross profit margins decreased by eight percentage points from 27% to 19%. Compared to the same period in the previous year, the company’s net loss increased by approximately 88%, rising from a loss of $1,001,00 to $1,884,000. The net loss for this quarter included $641,000 of non-cash, stock-based compensation expenses and $21,000 of non-cash gain related to debt instruments. The company’s quarter-end backlog rose to its highest levels ever, increasing 58% to $ 7,024,000.

In a statement, Surna CEO Chris Bechtel expressed disappointment in the company’s less than stellar financial results but remained confident in the company’s positioning for the future.

“While we are not satisfied with our recent declines in gross margin, and which was partly attributable to legacy internal procedures, we remain focused on improvement in this area through a combination of more disciplined pricing using enhanced pricing software, better absorption of fixed costs as we convert our increased bookings into revenue, and the implementation over time of lower-cost supplier alternatives,” stated Bechtel.

The company also announced today that co-founder Brandy M. Keen would resign from her position as Vice President and Secretary, and as a member of the board; effective on May 10, 2018. Keen will continue as a Senior Technical Advisor through 2020. Additionally, Keen’s husband and company co-founder, Stephen Keen, has agreed to terminate his consulting agreement with the company effective May 31, 2018. The company has agreed to purchase shares held by Keen and her husband for a total of $400,000. However, the repurchase of these shares is dependent on the closing of a $1.5 million private placement, of which there is no assurance that the company will be able to complete.

Stock Performance

The stock fell almost 3% to lately trade at 19 cents on the disappointing earnings and departure of the founders. It has declined from a year’s high of 48 cents, which the company hit in January.

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