On October 2, 2023, Agrify Corp (AGFY, Financial), a leading provider of innovative cultivation and extraction solutions for the cannabis industry, announced the completion of restatements of its 2022 Q1, Q2, and Q3 financial results. The restatements primarily relate to warrants issued in January and March 2022 that were reclassified as liabilities rather than as equity. This reclassification requires the warrants to be remeasured each reporting period to present them at fair value.
Restatements Impact on Earnings
The adjustments in the fair value of the warrants are non-cash items but have impacted earnings results. However, these adjustments did not affect the company's cash position, business operation, or sales. The company's 20 to 1 reverse stock split in July 2023 is also reflected in the restated forms on a retroactive basis.
Financial Restatements Details
The restatements have resulted in significant changes to the company's reported net income (loss) for the first three quarters of 2022. For Q1 2022, the net income attributable to Agrify was restated from a loss of $8,882 to a gain of $1,780. For Q2 2022, the net loss was adjusted from $93,401 to $74,604. For Q3 2022, the net loss increased from $46,268 to $57,413.
Company's Statement
The required adjustments were non-cash and had no impact on our business operations or the economics of our commercial arrangements," said Raymond Chang, Agrify’s Chairman and Chief Executive Officer. "We appreciate the patience of our various stakeholders as we have worked to address the issues identified in our review of Agrify’s historic financial results."
Looking Ahead
Agrify Corp (AGFY, Financial) and its independent auditor are working diligently to complete the 2022 audit and expects to file the 2022 Form 10-K, Forms 10-Q for the first quarter ended March 31, 2023, and the second quarter ended June 30, 2023, within the next 30 days. The company remains committed to long-term value creation and executing on its mission to build out end-to-end solutions in the cannabis cultivation and extraction solutions industry in the United States and beyond.
