Agrify Corporation reported significant financial developments in its latest 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable decline in revenue, with total revenue for the three months at $1.934 million, down 38% from $3.139 million in the same period of 2023. For the nine months, revenue decreased by 46% to $7.526 million from $14.009 million year-over-year. The decline was attributed primarily to a decrease in extraction solutions revenue, which fell by 35% in Q3 2024 and 43% for the nine-month period.

Despite the revenue drop, Agrify managed to reduce its cost of goods sold (COGS) significantly, with Q3 COGS at $1.709 million, a 21% decrease from $2.165 million in 2023. For the nine months, COGS decreased by 48% to $6.009 million. This led to a gross profit of $225,000 for Q3 2024, down from $974,000 in the prior year, while gross profit for the nine-month period was $1.517 million compared to $2.562 million in 2023.

Operating expenses also saw a substantial reduction, with total operating expenses for Q3 2024 at $3.890 million, down from $5.552 million in Q3 2023. For the nine months, operating expenses decreased to $3.405 million from $20.068 million, reflecting cost-cutting measures. The company reported an operating loss of $(3.665) million for Q3 2024, an improvement from $(4.578) million in the same quarter of 2023. The net loss for Q3 2024 was $(18.651) million, significantly higher than $(2.092) million in Q3 2023, primarily due to changes in the fair value of warrant liabilities.

Agrify's balance sheet showed total assets of $38.952 million as of September 30, 2024, down from $45.270 million at the end of 2023. Current liabilities decreased to $27.766 million, contributing to a stockholders' equity of $5.227 million, a significant recovery from a deficit of $(14.940) million at the end of 2023.

Strategically, Agrify has focused on enhancing its cultivation business and has streamlined its extraction portfolio. The company has also been active in restructuring its debt, including a recent issuance of a secured convertible note for up to $20 million. Additionally, Agrify completed a 1-for-15 reverse stock split in October 2024 to regain compliance with Nasdaq listing requirements.

The company continues to face challenges, including a working capital deficit of $7 million and an accumulated deficit of $283.2 million. Agrify's future performance will depend on its ability to execute its business strategy and secure additional capital to support operations.