urban-gro, Inc. reported a significant decline in financial performance for the third quarter of 2024, with total revenues of $9.9 million, a decrease of approximately 50% compared to $19.6 million in the same period of 2023. The company's net loss for the quarter was $3.8 million, or $0.30 per share, slightly improved from a net loss of $3.8 million, or $0.33 per share, in the prior year. For the nine months ended September 30, 2024, revenues totaled $43.2 million, down 21% from $54.8 million in the same period of 2023, with a net loss of $9.3 million compared to a loss of $14.8 million in the previous year.
The decline in revenue was attributed to several factors, including a slowdown in the construction design-build segment, which saw a decrease of $9.3 million due to reduced contract signings amid market uncertainty. Equipment systems revenue increased by $0.7 million, while services revenue fell by $1.0 million, reflecting market headwinds in the commercial segment. The company also reported a decrease in operating expenses by 20% to $4.8 million for the quarter, primarily due to reduced personnel costs and the elimination of an incentive retention plan.
In terms of operational metrics, urban-gro's total assets decreased to $49.2 million as of September 30, 2024, down from $49.5 million at the end of 2023. The company reported a negative working capital of $11.9 million, worsening from $5.1 million at the end of the previous fiscal year. The company’s cash position remained relatively stable, with $1.1 million in cash at the end of the quarter, a slight decrease from $1.2 million at the end of 2023.
Looking ahead, urban-gro's management expressed cautious optimism, noting that they are actively working to address the challenges posed by market conditions and are focused on strategic initiatives to improve operational efficiency. The company has also entered into a new asset-based term loan agreement for $2.1 million to support cash management and growth in the cannabis industry. Despite the current challenges, urban-gro aims to stabilize its operations and enhance its market position in the Controlled Environment Agriculture sector.
About urban-gro, Inc.
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