$SRNA News - Surna Reports 2014 Financial Results and Subsequent Events

BOULDER, Colo.,- (http://www.financialnewsmedia.com News Alert) - Surna Inc. (OTCQB: SRNA), is a technology company that engineers, manufactures, and distributes state-of-the art equipment and systems for controlled environment agriculture (\"CEA\") currently specializing in commercial indoor cannabis cultivation, announced financial results for 2014 and subsequent events.



In April 2014, the Company began operations and in its third quarter closed on its acquisition of Hydro Innovations. For the year ended December 31, 2014, the Company had gross revenues of $1,838,912 and on a combined proforma basis with Hydro Innovations it had gross revenues of $2,488,837. The net loss for the year and combined proforma loss were $2,991,969 and $3,263,320, respectively.



Surna established its foundation as a technology-based company, spending $319,430 on research development for new technology and products, accounting for 17% of the Company\'s revenue. The Company spent $240,784 for advertising and marketing to advance its products and brand recognition. Its general and administrative expenses were $2,636,244, which included a non-recurring one-time non-cash expense of $1,330,000.



The Company finished the year with a balance sheet that included liquid assets (cash, accounts receivable, inventory and prepaid assets) of over $1,400,000 while current accounts payable in cash totaled $725,231, of which $303,672 is payable to shareholders. During the year, the Company raised $2,961,000 through the issuance of convertible debt and an additional $911,000 subsequent to year end.



The Company entered 2015 with $408,200 in contracts that were in progress during 2014; corresponding revenue was deferred into 2015 pending completion of the contracts.



\"2014 was a year of building infrastructure for new technology, producing innovative new products, and establishing Surna\'s presence in the market,\" says Bryon Jorgenson, COO.



Subsequent events:



The Company announced the departure of Tom Bollich as CEO and Board Member effective April 17. It was expected that Bryon Jorgenson would succeed Bollich following his resignation; however, Jorgenson will not serve as the Company\'s President or Chief Executive Officer at this time, instead...