The company’s results had been delayed after discovering unreliable financial statements.
Agrify Corp. (Nasdaq: AGFY) reported its financial results for the fiscal year ending Dec. 31, 2022, and for the first quarter ending March 31, 2023, showing plummeting revenue as the company racks up huge losses.
The results for the two periods were delayed after its accountants, Marcum LLP, determined that previous financial statements “should no longer be relied upon.”
Revenue was $5.8 million for the first quarter of 2023, a 77% fall versus $26 million for the same period the previous year. Net loss during the first quarter was $10.3 million, or $9.63 per diluted share, versus net income of $1.8 million, or $13.79 per diluted share in the same period the previous year.
For the full-year 2022 results, the company saw revenue of $58.3 million during 2022’s fiscal year, a downtick of 2.7% versus the $59.9 million for the previous fiscal year ending Dec. 31, 2021. Net loss came out to $188.2 million, or $902.19 per share, compared to a net loss of $32.5 million, or $340.75 per share, for the full-year 2021.
In a statement, CEO Raymond Chang said that the company “continued to make progress on our turn-around” in 2023.
“After a difficult FY 2022, we have reexamined our business model, explored our strategic options, and reevaluated our product offerings to better serve our customers,” Chang said.
Chang added that the company’s top priorities have been:
Restructuring debts.
Cutting costs and labor.
Improving product offerings.
Getting “some of our key products” CE-certified for international markets.
“We believe that we have made strong progress in all four of these areas and will continue to prioritize these efforts,” he said.
While the company’s expenses fell during the quarter on a year-over-year comparison, costs skyrocketed when it came to the firm’s full-year results. Operating expenses were $161.5 million for the full-year 2022, compared to $40.3 million in the full-year 2021. Agrify attributed the rise to $69.9 million of impaired goodwill and $39 million of bad debt expenses.
The company cited these mounting losses and shrinking sales in regulatory filings as going concerns.
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