Adam Jackson
Agrify Corp. (Nasdaq: AGFY) has reported a fall in operating and net losses for the second quarter of 2023 ending June 30, as part of its ongoing restructuring efforts.
The company detailed a significant reduction in losses, with operating loss lowering to $5.3 million from $7.6 million in the previous quarter, and net loss declining to $6.8 million from $10.3 million. The improvements mark a 30% and 34% decrease, respectively.
Agrify attributed the reduction in losses to several cost-cutting measures, including a 31% reduction in operating expenses and a 55% cut in headcount.
Operating expenses were reported at $5.9 million for the quarter, down from $8.6 million in the first quarter, with total headcount reduced from 190 to 85 employees. That figure was also a significant drop over the year, from $93.1 million in operating expenses in the second quarter of 2022.
The company’s revenue for the quarter stood at $5.1 million, a decline from $19.3 million in the same quarter of the previous year. Gross profit was reported at $600,000 for the second quarter of 2023, versus $1.6 million in the same period of 2022.
“We will continue to make focused reductions in costs and increase organizational efficiency in an effort to turn the business profitable in the shortest time possible,” CEO Raymond Chang said in a statement Tuesday.
The results for the period had been delayed after its accountants, Marcum LLP, determined that previous financial statements “should no longer be relied upon.”
