Agrify Corporation (Nasdaq:  AGFY) reported Friday a $41.7 million net loss for 2024 as it moves away from equipment manufacturing toward the beverage market.

The company’s revenue dropped to $9.7 million, down from $15.1 million in 2023, according to its year-end report ending Dec. 31, 2024. Operating losses improved slightly to $10.2 million from $13 million the previous year.

“The Agrify team has been busy over the last quarter, streamlining the business and securing our position for future growth,” chairman and interim CEO Ben Kovler, said in a statement.

Kovler, who also runs Green Thumb Industries, took over after securing $10 million in financing in November.

The company sold its cultivation business on Dec. 31 to CP Acquisitions, a company tied to former CEO Raymond Chang. The sale resulted in an $11.9 million loss in the fourth quarter.

Agrify’s new direction centers on Señorita, a line of hemp-derived THC beverages it acquired in December. The drinks include THC-infused margaritas and palomas now sold in nine states and Canada. In January, Agrify partnered with Chicago music venue The Salt Shed, making Señorita the “exclusive partner for hemp-derived THC beverages at venue bars.”

“We are excited about what lies ahead for THC in America and Agrify’s position to take advantage of that to create value for our shareholders,” Kovler said. “With a strong balance sheet and a clear vision, Agrify is poised to bring the award-winning THC Margarita, Señorita, to the tens of millions of Americans that previously had limited access to THC.”

The company ended 2024 with $31.2 million in cash after raising about $25.9 million in November from private investors. Agrify has around 2 million shares and 7.6 million warrants outstanding.

Brad Asher, previously CFO at AYR Wellness, will become Agrify’s new chief financial officer on March 24.

“Now is the time to continue building the team to ensure our growth trajectory,” Kovler said about Asher’s appointment.

While focusing on beverages, Agrify said it continues to “explore various alternatives for our legacy extraction business,” which remains part of its operations.

Agrify Corp. (Nasdaq:  AGFY) announced that it signed an agreement for and closed the sale of its cultivation business to CP Acquisitions LLC, which is affiliated with the company’s former CEO Raymond Chang.

The deal was completed on Dec. 31, 2024.

The deal involves the sale of the Agrify cultivation business and assets, the assumption of liabilities related to the cultivation business by CP, and the termination of two convertible notes held by CP totaling approximately $7 million. Under the agreement, CP agreed to acquire all assets related to the cultivation portions of the Agrify business from the company, including but not limited to, the company’s vertical farming units, the related Agrify total-turnkey solution assets and Agrify Insights software solutions.

Green Thumb Industries (OTC: GTBIF) took a significant stake in the cash-strapped company in November through a convertible note deal. Green Market Report wrote at the time that on GTI’s November earnings call, CEO Ben Kovler cited the company’s interest in Agrify’s extraction division.

“We like the extraction business with Precision. It’s done a great job,” he told analysts, noting that “the high-end dab game is a real segment in this market that has pricing power among a very, very loyal consumer base.” Kovler seemed uninterested in the cultivation side of the business and the sale of these assets seems to support that.

At roughly the same time, Agrify inked an acquisition deal for hemp-based THC beverage maker Double or Nothing, which sells the Señorita brand of hemp drinks, in an all-stock transaction. The Señorita product line debuted in 2023 and is currently sold in Canada and nine U.S. states, with more expansion in the works.

“We are pleased to complete the sale of Agrify’s cultivation business and to simplify our business,” Kovler, who also serves as Agrify’s chairman and interim CEO, said. He went on to say that selling the cultivation business would allow Agrify to focus on hemp-derived THC Delta 9 (HD9) beverages like Más Señorita.”