urban-gro, Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>urban-gro, Inc. filed its Q1 2024 10-Q, detailing financial performance and segment operations.</b>

AI Summary

urban-gro, Inc. (UGRO) filed a Quarterly Report (10-Q) with the SEC on April 30, 2024. urban-gro, Inc. reported financial results for the quarter ended March 31, 2024. The company operates in segments including Equipment Systems, Services, and Construction, Design & Building. Financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023, are presented. Key balance sheet accounts such as Common Stock, Additional Paid-In Capital, and Retained Earnings are detailed. The filing references specific entities like Dawson Van Order Inc. and Emerald Construction Management Inc.

Why It Matters

For investors and stakeholders tracking urban-gro, Inc., this filing contains several important signals. This filing provides a quarterly update on urban-gro's financial health and operational segments, crucial for investors to assess recent performance and trends. The inclusion of segment-specific data allows for a deeper understanding of revenue drivers and the company's strategic focus areas within the Controlled Environment Agriculture and Commercial sectors.

Risk Assessment

Risk Level: — urban-gro, Inc. shows moderate risk based on this filing. The company's financial performance and operational details are presented in a standard 10-Q format, which typically involves a medium level of risk due to the inherent uncertainties in business operations and financial reporting.

Analyst Insight

Investors should review the detailed financial statements and segment performance to understand the company's current financial position and operational effectiveness.

Revenue Breakdown

Key Numbers

• 2024-03-31 — Reporting Period End Date (10-Q filing)
• 2024-04-30 — Filing Date (10-Q filing)

Key Players & Entities

• urban-gro, Inc. (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-04-30 (date) — Filed as of date
• LAFAYETTE (location) — Business address city
• CO (location) — Business address state
• Dawson Van Order Inc. (company) — Mentioned entity
• Emerald Construction Management Inc. (company) — Mentioned entity

FAQ

Key Dates

• 2024-03-31: Quarter End Date — End of the reporting period for the 10-Q filing.
• 2024-04-30: Filing Date — Date the 10-Q was officially filed with the SEC.

Key Financial Figures

• $0.001 — ange on which registered Common Stock, $0.001 par value UGRO NASDAQ Capital Market

Filing Documents

• ugro-20240331.htm (10-Q) — 790KB
• a033124-exx311.htm (EX-31.1) — 10KB
• a033124-exx312.htm (EX-31.2) — 10KB
• a033124-exx321.htm (EX-32.1) — 6KB
• 0001706524-24-000028.txt (&nbsp;) — 5879KB
• ugro-20240331.xsd (EX-101.SCH) — 62KB
• ugro-20240331_cal.xml (EX-101.CAL) — 87KB
• ugro-20240331_def.xml (EX-101.DEF) — 213KB
• ugro-20240331_lab.xml (EX-101.LAB) — 592KB
• ugro-20240331_pre.xml (EX-101.PRE) — 395KB
• ugro-20240331_htm.xml (XML) — 803KB

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION Item 1.

Financial Statements (Unaudited)

Financial Statements (Unaudited) 5 Unaudited Condensed Consolidated Balance Sheets 5 Unaudited Condensed Consolidated Statements of Operations and Comprehensive Loss 6 Unaudited Condensed Consolidated Statements of Stockholders' Equity 7 Unaudited Condensed Consolidated Statements of Cash Flows 8 Notes to Unaudited Condensed Consolidated Financial Statements 9 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 23 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 27 Item 4.

Controls and Procedures

Controls and Procedures 27

OTHER INFORMATION

PART II. OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 28 Item 1A.

Risk Factors

Risk Factors 28 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 28 Item 3. Defaults Upon Senior Securities 28 Item 4. Mine Safety Disclosures 28 Item 5. Other Information 28 Item 6. Exhibits 29

Signatures

Signatures 30 2 CAUTIONARY INFORMATION REGARDING FORWARD-LOOKING STATEMENTS Certain statements contained in this Quarterly Report on Form 10-Q constitute forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act"), and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including statements related to future events, challenges we may face, business strategy, future performance, future operations, backlog, financial position, estimated or projected revenues and losses, projected costs, prospects, plans and objectives of management. All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "seek," "anticipate," "plan," "continue," "estimate," "expect," "may," "will," "project," "predict," "potential," "intend," "could," "should," "believe," and variations of such words or their negative and similar expressions. Forward-looking statements should not be read as a guarantee of future performance or results, and may not necessarily be accurate indications of the times at, or by, which such performance or results will be achieved. Forward-looking statements are based on management's belief, based on currently available information, as to the outcome and timing of future events. These statements involve estimates, assumptions, known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those expressed in such forward-looking statements. When evaluating forward-looking statements, you should consider the risk factors and other cautionary statements described in this Quarterly Report on Form 10-Q and under the heading "Risk Factors" in our Annual Report on Form 10-K for the fiscal year ended December 31, 2023. We believe the expectations reflected in the forward-looking statements contai

FINANCIAL INFORMATION

PART I. FINANCIAL INFORMATION

FINANCIAL STATEMENTS (unaudited)

ITEM 1. FINANCIAL STATEMENTS (unaudited) URBAN-GRO, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (unaudited) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash $ 692,680 $ 1,112,504 Accounts receivable, net 18,754,870 26,991,739 Contract receivables 10,174,845 10,071,951 Prepaid expenses and other assets 3,606,595 2,775,682 Total current assets 33,228,990 40,951,876 Non-current assets: Property and equipment, net 1,255,557 1,419,393 Operating lease right of use assets, net 1,918,532 2,041,217 Goodwill 15,572,050 15,572,050 Intangible assets, net 4,155,175 4,394,507 Total non-current assets 22,901,314 23,427,167 Total assets $ 56,130,304 $ 64,379,043 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 24,987,061 $ 25,411,243 Contract liabilities 3,093,242 8,063,325 Accrued expenses 3,632,874 4,071,231 Customer deposits 555,676 603,046 Contingent consideration 49,830 49,830 Notes payable 2,490,486 3,204,840 Operating lease liabilities 673,920 707,141 Total current liabilities 35,483,089 42,110,656 Non-current liabilities: Operating lease liabilities 1,292,500 1,380,362 Deferred tax liability 769,036 817,419 Total non-current liabilities 2,061,536 2,197,781 Total liabilities 37,544,625 44,308,437 Commitments and contingencies (note 11) Stockholders' equity: Preferred stock, $ 0.10 par value; 3,000,000 shares authorized; 0 shares issued and outstanding — — Common stock, $ 0.001 par value; 30,000,000 shares authorized; 13,768,594 issued and 12,318,761 outstanding as of March 31, 2024, and 13,522,669 issued and 12,072,836 outstanding as of December 31, 2023 13,769 13,523 Additional paid-in capital 89,557,913 88,901,583 Treasury shares, cost basis: 1,449,833 shares as of March 31, 2024 and as of December 31, 2023 ( 12,045,542 ) ( 12,045,542 ) Accumulated deficit ( 58,940,461 ) ( 56,798,958 ) Total stockholders' equity 18,585,679 20,070,606 Total liabilities and stockholders' equity $ 56,130,30