Agrify (AGFY) - 2025 Q2 - Quarterly Report

PART I - FINANCIAL INFORMATION ITEM 1. FINANCIAL STATEMENTS (UNAUDITED) This section presents the unaudited condensed consolidated financial statements of Agrify Corporation for the period ended June 30, 2025, including balance sheets, statements of operations, changes in stockholders' equity (deficit), and cash flows, reflecting a strategic shift towards hemp-derived products and the discontinuation of cultivation and extraction businesses Condensed Consolidated Balance Sheets This statement presents the company's financial position, including assets, liabilities, and stockholders' equity, as of June 30, 2025, and December 31, 2024 | Assets/Liabilities | June 30, 2025 (in millions) | December 31, 2024 (in millions) | | :----------------- | :-------------------------- | :------------------------------ | | Assets | | | | Cash and cash equivalents | $40.956 million | $31.170 million | | Accounts receivable, net | $1.572 million | $30 thousand | | Inventory, net | $2.209 million | $500 thousand | | Total current assets | $46.372 million | $34.694 million | | Goodwill | $9.713 million | $9.713 million | | Intangible assets | $13.292 million | $8.900 million | | Total assets | $69.474 million | $54.022 million | | Liabilities | | | | Accounts payable | $1.651 million | $825 thousand | | Accrued expenses and other current liabilities | $3.029 million | $4.090 million | | Related party debt, current | $10.000 million | $10.000 million | | Total current liabilities | $17.544 million | $24.679 million | | Related party debt, net of current | $27.000 million | $0 | | Total liabilities | $48.511 million | $25.933 million | | Stockholders' Equity | | | | Total stockholders' equity | $20.963 million | $28.089 million | - Total assets increased by $15.45 million from December 31, 2024, to June 30, 2025, primarily driven by an increase in cash and cash equivalents and intangible assets[9] - Total liabilities increased significantly by $22.58 million, mainly due to a substantial increase in non-current related party debt[9] - Total stockholders' equity decreased by $7.13 million, indicating a reduction in the company's net worth over the period[9] Condensed Consolidated Statements of Operations This statement details the company's revenues, expenses, and net loss from continuing and discontinued operations for the three and six months ended June 30, 2025 and 2024 | Metric (in millions) | Three months ended June 30, 2025 | Three months ended June 30, 2024 | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Revenue | $2.042 million | $0 | $2.580 million | $0 | | Gross profit | $682 thousand | $0 | $772 thousand | $0 | | Operating loss from continuing operations | $(6.798) million | $(853) thousand | $(10.499) million | $(500) thousand | | Net (loss) income | $(7.360) million | $(2.972) million | $(8.986) million | $1.264 million | | Basic (loss) income per share | $(3.74) | $(3.16) | $(4.59) | $1.80 | | Diluted (loss) income per share | $(3.74) | $(3.16) | $(4.59) | $1.05 | - The company reported revenue of $2.042 million for the three months ended June 30, 2025, and $2.580 million for the six months ended June 30, 2025, compared to no revenue from continuing operations in the prior year periods, reflecting a strategic shift[10] - Net loss increased significantly to $(7.360) million for the three months ended June 30, 2025, from $(2.972) million in the prior year, and to $(8.986) million for the six months ended June 30, 2025, from a net income of $1.264 million in the prior year[10] - Basic and diluted loss per share worsened to $(3.74) for the three months ended June 30, 2025, and $(4.59) for the six months ended June 30, 2025, compared to $(3.16) and $1.80 (basic) / $1.05 (diluted) respectively in the prior year periods[10] Condensed Consolidated Statements of Changes in Stockholders' Equity (Deficit) This statement outlines changes in common stock, additional paid-in capital, and accumulated deficit for the six months ended June 30, 2025 | Stockholders' Equity (in millions) | Balance at January 1, 2025 | Balance at June 30, 2025 | | :-------------------------------- | :------------------------- | :----------------------- | | Common Stock, Amount | $2 thousand | $2 thousand | | Additional Paid-In Capital | $335.400 million | $337.490 million | | Accumulated Deficit | $(307.543) million | $(316.529) million | | Total Stockholders' Equity attributable to Agrify | $27.859 million | $20.963 million | - Total stockholders' equity attributable to Agrify Corporation decreased from $27.859 million at January 1, 2025, to $20.963 million at June 30, 2025, primarily due to a net loss of $(8.986) million[12][13] - Additional paid-in capital increased by $2.09 million, driven by stock-based compensation and the issuance of pre-funded warrants in lieu of cash interest payments on related party debt[12][13] Condensed Consolidated Statements of Cash Flows This statement summarizes cash flows from operating, investing, and financing activities for the six months ended June 30, 2025 and 2024 | Cash Flow Activity (in millions) | Six months ended June 30, 2025 | Six months ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net cash used in operating activities | $(15.138) million | $(4.816) million | | Net cash used in investing activities | $(5.075) million | $336 thousand | | Net cash provided by financing activities | $29.999 million | $4.103 million | | Net increase (decrease) in cash and cash equivalents | $9.786 million | $(377) thousand | | Cash and cash equivalents at the end of period | $40.956 million | $53 thousand | - Net cash used in operating activities significantly increased to $(15.138) million for the six months ended June 30, 2025, from $(4.816) million in the prior year, primarily due to a higher net loss and changes in operating assets and liabilities[14][202][203] - Net cash used in investing activities was $(5.075) million, mainly due to the related party acquisition of MC Brands, a shift from the prior year's net cash provided by investing activities of $336 thousand[14][204] - Net cash provided by financing activities increased substantially to $29.999 million, driven by proceeds from the May 2025 Notes, compared to $4.103 million in the prior year[14][205] Notes to the Condensed Consolidated Financial Statements This section provides detailed explanations of Agrify's accounting policies, financial statement line items, and significant transactions [Note 1 — Overview, Basis of Presentation and Significant Accounting Policies](index=9&type=section&id=Note%201%20%E2%80%94%20Overview,%20Basis%20of%20Presentation%20and%20Significant%20