Agrify Stock Dips After Accounting Errors Are Discovered In Financial Statements

Agrify Corporation (NASDAQ: AGFY) stock plummeted 30% on April 19, just days after a regulatory filing revealed that the company's financial statements "should no longer be relied upon."

Accountants at Marcum LLP are scrutinizing three different Agrify fiscal periods; those ending on March 31, 2022, June 30, 2022 and Sept. 30, 2022.

Agrify is planning to raise up to $1.84 million from the exercise of 10.65 million common stock warrants, and reduce the exercise price of all the existing warrants from $0.65 per share to $0.1725 per share.

Agrify's Audit Committee concluded that 301,575 warrants issued in a private placement on Jan. 28, 2022 and 688,111 warrants issued in a private placement on March 23, 2022 should have been classified as a liability measured at fair value, rather than as a component of equity.

The change in fair value of the warrants is a non-cash charge and is expected to be reflected in Agrify’s statement of operations.

Agrify stock opened Friday, April 21 at 20 cents. It was up 2.97% at the time of writing.

Photo by Jeff W on Unsplash

Related News

• Agrify Stock Plummets On Agreement To Raise Up To $1.84M From The Exercise Of Previously Issued Common Stock Warrants
• Agrify Announces Completion Of Total Turnkey Cultivation Facility Denver Greens Pending Final Inspection
• Las Vegas Facility Expected To Be Ready To Grow Cannabis In 132 Of Agrify's Units This April