Cannabis Tech Firm Akerna Cuts 59 Employees as Part of Restructuring
- 2 years ago
#Akerna, a #Denver-based cannabis compliance #software company, is implementing a #financial restructuring plan that includes reducing its workforce by 59 employees, or a third, and cutting operating #costs by $440,000 in its second quarter.
“We can see a path to positive #cash flows and #profitability, and the board and the management team are committed to getting there on an accelerated timetable,” Akerna #CEO Jessica Billingsley said in a news release. The company’s ability to continue as a going concern depends on the success of its financial restructuring plan and its ability to raise additional #capital, according to filings with the #US Securities and Exchange Commission (SEC).
#Executives are taking a 25% pay cut to support the cost-cutting initiatives. The company’s holdings include #MJ Freeway, a #seed-to-sale software platform. Akerna has lost money since its inception, relying on capital raises to maintain ongoing operations. Incurred an operating loss of $20.6 #million for its first three months of #2022 and ended the quarter with a working capital deficit of $15.1 million, according to one filing. Akerna also said that it has received notice from the Nasdaq stock market that it has fallen out of compliance with a requirement to maintain a bid price of $1 a share. The notice doesn’t have an immediate effect, but the company must regain compliance by Nov. 21 unless the Nasdaq grants an extension. Akerna, trades on the #Nasdaq as KERN
“We can see a path to positive #cash flows and #profitability, and the board and the management team are committed to getting there on an accelerated timetable,” Akerna #CEO Jessica Billingsley said in a news release. The company’s ability to continue as a going concern depends on the success of its financial restructuring plan and its ability to raise additional #capital, according to filings with the #US Securities and Exchange Commission (SEC).
#Executives are taking a 25% pay cut to support the cost-cutting initiatives. The company’s holdings include #MJ Freeway, a #seed-to-sale software platform. Akerna has lost money since its inception, relying on capital raises to maintain ongoing operations. Incurred an operating loss of $20.6 #million for its first three months of #2022 and ended the quarter with a working capital deficit of $15.1 million, according to one filing. Akerna also said that it has received notice from the Nasdaq stock market that it has fallen out of compliance with a requirement to maintain a bid price of $1 a share. The notice doesn’t have an immediate effect, but the company must regain compliance by Nov. 21 unless the Nasdaq grants an extension. Akerna, trades on the #Nasdaq as KERN