Agrify (US:AGFY)2025-05-09 10:15Product Offerings - Agrify's Señorita brand offers three hemp-derived THC beverage flavors, with plans to introduce a fourth flavor, low-calorie Ranch Water, in 2025[135] - The Señorita beverages are available at top retailers in ten U.S. states and Canada, with future expansion plans into premier on-premises destinations[129] - The Señorita brand was acquired in November 2024, reflecting a growing demand for adult beverage alternatives[134] Financial Performance - Revenue for the three months ended March 31, 2025, was $538 thousand, an increase from $0 in the same period in 2024, primarily due to the acquisition of Señorita[157] - Cost of goods sold for the same period was $448 thousand, reflecting an increase of $448 thousand compared to $0 in 2024, associated with the acquisition of Señorita[158] - Gross profit was $90 thousand, representing 16.7% of total revenue for the three months ended March 31, 2025[159] - Selling, general and administrative expenses increased by $2.2 million, or 144%, to $3.791 million for the three months ended March 31, 2025, primarily due to the acquisition of Señorita[161] - Research and development expenses decreased by $275 thousand, or 100%, to $0 for the three months ended March 31, 2025, due to the discontinuation of the Extraction Business[162] - Net cash used in operating activities was $(6.720) million for the three months ended March 31, 2025, compared to $(2.987) million in 2024[170] - The net loss attributable to Agrify Corporation for the three months ended March 31, 2025, was $(1.626) million, compared to a net income of $4.236 million in 2024[156] - The weighted average common shares outstanding for basic shares was 1,952,022 for the three months ended March 31, 2025, compared to 460,133 in 2024[156] Corporate Changes - Agrify's extraction business was disposed of on March 30, 2025, and the cultivation solutions were sold prior to December 31, 2024[130][136] - The company underwent a 1-for-20 reverse stock split on July 5, 2023, followed by a 1-for-15 reverse stock split on October 8, 2024[132] - Brad Asher was appointed as Chief Financial Officer effective March 24, 2025, under a Shared Services Agreement with Vision Management Services, LLC[133] Technology and Strategy - Agrify's proprietary VFU technology was designed for indoor vertical farming, enabling higher-quality crop production[137] - The company strategically acquired four top brands in the extraction space in late 2021 and early 2022, enhancing its extraction solutions portfolio[140] Cash and Financing - As of March 31, 2025, the company had cash and cash equivalents totaling $24.4 million to support revenue growth and manage inventory[167] - The Green Thumb Convertible Note issued on November 5, 2024, allows for advances of up to $20 million, with $10 million already advanced[169] Accounting and Reporting - Agrify's financial statements are prepared in accordance with U.S. GAAP, requiring management to make estimates and assumptions affecting reported amounts[142] - Revenue is generated from the sale of hemp-derived beverages, recognized under ASC Topic 606 through a five-step model[146]