Surna Inc (OTCMKTS:SRNA) has hit the radar of investors again after the company reported its fiscal year 2015 results. Revenues surged 328% from $1.8 million FY2014 to $7.9 million FY2015. SRNA is planning to hold an investor conference call in early May which is rear for a microcap company to do.
The CEO of Surna Inc (OTCMKTS:SRNA) commented, “2015 was a transformational year for Surna as we built a stronger foundation on which to grow the business. Focused on establishing Surna as the leading supplier for cannabis cultivation equipment in the U.S., we continue to introduce ground-breaking technology such as the Surna Reflector and our hybrid building design. In 2016, we intend to expand our product commercialization efforts.”
Stephen Keen also stated, “As part of our mission to position the Company for profitable growth, we installed a new management team in 2015. Now, we are focusing on the monetization of service components, supporting premium pricing for our existing products and commercializing our research and development efforts. In addition, we are taking measures to reduce our cost of capital to accelerate our path to profitability and, ultimately, increase shareholder value.”
In recent developments, Surna Inc (OTCMKTS:SRNA) has spent the last three years building out its technology platform and has been acquiring customers. The company has spent less than $2,000,000 which was gathered from its 10-Q SEC filing. Many micro-cap companies raise toxic financing and pay exorbitant salaries, the Company owes on just one $35,000 bank loan, holds more than $120,000 in cash, and has averaged a monthly cash burn rate of just $60,000. The company disclosed potential sales pipeline of $5M and disclosed that the projects have commenced which means revenues have started to be recognized.
SRNA has also added to its C-Suite hiring a Chief Financial Officer. Ellen White has taken the top spot in finance previously serving as director of finance for the company. Ms. White brings more than 20 years of financial and accounting experience including time at both large public companies and small startups. Her prior experience includes CFO at the National Sports Center for the Disabled (NSCD), where her responsibilities included treasury and cash management, controllership, human resources, risk management, planning, budgeting, forecasting, strategy and Board of Directors interaction. This should be exciting news in itself for investors. She could be making a large salary at any large corporation but she has chosen to stay on board with SRNA. Unless there was significant opportunity, she would have left long ago.
In other announcements, SRNA has secured $725,000 contract with indoor Cannabis Grower Cloud 9 Wholesale. The company will provide their proprietary climate control technology to the cultivation facility for the single-phase project. The Cloud 9 Wholesale facility covers 30,000 square feet, which will require approximately 550 tons of cooling equipment for cultivation climate control.
Surna Inc. is a technology company that designs, manufactures, and distributes state-of-the-art systems for controlled environment agriculture (“CEA”). Its products offer growers improved process control while simultaneously reducing the energy and resources required to maximize crop yield. Currently, the Company’s revenues derive largely from supplying industrial-grade technology to state-regulated cannabis cultivation facilities with nominal revenue as well from other indoor agricultural producers including organic herb and vegetable producers. Ultimately, it plans to provide full-scale, energy-efficient solutions for all aspects of a CEA facility.
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SRNA is currently trading at a $13 million market valuation. The company has grown its topline compare to last year but its bottom line and operating loss needs help. SRNA recent development with the FDA clearance is huge boost to the company and should provide additional revenues in the future and momentum for the stock.
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Disclosure: we hold no position in SRNA either long or short at the publication of this article and we have not been compensated for this article.