Akerna Announces Corporate Restructuring
Akerna Corp. (Nasdaq: KERN) announced plans to cut its workforce and reduce operating costs to enhance profitability and stakeholder value, effective July 1, 2022. CEO Jessica Billingsley reported a revenue run rate of $27 million and a Contracted Annual Recurring Revenue (CARR) of $21.1 million, highlighting strong bookings. The cost-cutting measures are expected to generate material annual savings, despite anticipated implementation costs of $690,000 for Q2 2022, including severance and legal fees. Akerna aims to focus on its enterprise business and SMB market expansion.
- Projected annual cost savings from workforce and operating cost reductions.
- Revenue run rate of $27 million indicates strong sales performance.
- CARR of $21.1 million reflects strong bookings.
- Continued liquidity concerns pose risks to the company's financial stability.
Consolidation, Headcount, and Reductions Expected to Yield Material Annualized Cost Savings, effective July 1, 2022
DENVER, May 27, 2022 (GLOBE NEWSWIRE) -- Akerna Corp. (Nasdaq: KERN) (“Akerna”), a leading enterprise software company and developer of one of the most comprehensive technology infrastructures, ecosystems, and compliance engines powering the global cannabis industry, today announced that the Company is implementing a plan to reduce its workforce and operating costs in order to focus its resources, accelerate its path to profitability, and create stakeholder value.
“Our sales performance in 2022 has thus far met our expectations. We believe we are showing signs of progress with revenue now at a run rate of
“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. While we continue to deal with liquidity concerns, our headcount reduction and additional cost savings measures represent a material annual cost savings. As part of this restructure, executive leadership team has also collectively agreed to a
The company anticipates reporting
Forward-Looking Statements
Certain statements made in this report are "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. When used in this press release, the words "estimates," "projected," "expects," "anticipates," "forecasts," "plans," "intends," "believes," "seeks," "may," "will," "should," "future," "propose" and variations of these words or similar expressions (or the negative versions of such words or expressions) are intended to identify forward-looking statements. Such forward-looking statements include but are not limited to statements regarding our believe that we can continue to grow revenue and reduce costs, our belief that there is a pathway to positive cash flows and profitability, our belief that we can grow our top-line through enterprise wins and expansion into new markets and any statement regarding the future operating results of the Company. These forward-looking statements are not guarantees of future performance, conditions or results, and involve a number of significant known and unknown risks, uncertainties, assumptions, and other important factors, many of which are outside Akerna's control, that could cause actual results or outcomes to differ materially from those discussed in the forward-looking statements. Important factors, among others that may affect actual results or outcomes, include our ability to continue as a going concern given our current liquidity risks and the risks and uncertainties disclosed from time to time in Akerna's filings with the U.S. Securities and Exchange Commission, including those under the heading "Risk Factors" in the Company's latest annual report on Form 10-K filed on March 31, 2022 and in its subsequent reports. You are cautioned not to place undue reliance on forward-looking statements. All information herein speaks only as of the date hereof, in the case of information about Akerna, or the date of such information, in the case of information from persons other than Akerna. Akerna undertakes no duty to update or revise the information contained herein.
About Akerna
Akerna (Nasdaq: KERN) is an enterprise SaaS company focused on compliantly serving the cannabis, hemp, and CBD industry. First launched in 2010, Akerna has tracked more than
The Company's cornerstone technology, MJ Platform, one of the world's leading cannabis infrastructure as a service platform, powers retailers, manufacturers, brands, distributors, and cultivators. Akerna also offers a complete suite of professional consulting services and data analytics for businesses as well as solo sciences, Leaf Data Systems, Trellis, Ample Organics, Viridian Sciences and 365 Cannabis.
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For more information, visit https://www.akerna.com/.
Contacts:
Media
Georgia Jablon (georgia.jablon@akerna.com)
Investor
Peter Seltzberg, 516-419-9915, peters@coreir.com
FAQ
What cost-saving measures is Akerna implementing as of July 1, 2022?
What is Akerna's revenue run rate reported in May 2022?
What is Akerna's Contracted Annual Recurring Revenue (CARR) as of May 2022?
What are the expected implementation costs for Akerna's restructuring in Q2 2022?