Agrify Corporation reported a significant decline in its financial performance for the fiscal year ended December 31, 2024, with total revenue of $9.68 million, a decrease of 142% from $15.14 million in 2023. The company attributed this drop primarily to increased discounting of its extraction solutions, which saw a 24% decline in revenue. Gross profit also fell sharply to $0.67 million, or 7% of total revenue, compared to $4.02 million, or 27% of total revenue, in the previous year. The operating loss from continuing operations was $10.22 million, an improvement from a loss of $13.02 million in 2023, while the net loss attributable to Agrify Corporation reached $41.75 million, compared to $18.65 million in the prior year.
In terms of strategic developments, Agrify underwent significant organizational changes, including the sale of its cultivation business to CP Acquisitions, LLC, for the assumption of approximately $7 million in secured indebtedness. This transaction, completed on December 31, 2024, marked a strategic shift for the company, which is now focusing on its newly acquired Señorita brand of hemp-derived THC beverages. The Señorita brand, which offers a low-calorie alternative to alcoholic beverages, is currently available in nine U.S. states and Canada, with plans for further expansion.
Operationally, Agrify's workforce has been reduced to 11 full-time employees as of March 15, 2025, reflecting a significant decrease in headcount as the company pivots its business model. The company has also seen a notable change in its board of directors, with new appointments and resignations occurring in early 2025. The company’s focus on the hemp-derived beverage market is expected to drive future growth, although it faces challenges from increased competition and regulatory uncertainties in the cannabis and hemp industries.
Looking ahead, Agrify's management expressed cautious optimism about its future, emphasizing the potential for growth in the hemp-derived beverage sector. However, the company acknowledged the risks associated with market acceptance, regulatory changes, and competition from both legal and illicit markets. The company has also indicated a need for additional financing to support its operations and growth initiatives, with cash and cash equivalents totaling approximately $31.2 million as of December 31, 2024. The outlook remains uncertain, as the company navigates a rapidly evolving industry landscape while working to remediate identified weaknesses in its internal controls over financial reporting.
About Agrify Corp
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