CO2 GRO anticipates ‘significant sales growth’ in the third and fourth quarters of 2021

CO2 GRO Inc (CVE:GROW) (OTCQB:BLONF) (FRA:4021) has said it anticipates “significant sales growth” in the third and fourth quarters of 2021. “CO2 GRO continues to be well-positioned, with no debt on its balance sheet and two years of cash on hand to cover cash burn assuming no further revenue is achieved,” the company said in a statement reporting its first-quarter results. The company's CO2 Delivery Solutions technology provides growers that cannot gas with CO2 the opportunity to increase plant yields by up to 30% and profits by up to 100% while suppressing the development of pathogens such as E.coli and powdery mildew, helping to reduce crop losses which can further add to grower profits.  READ: CO2 GRO sells a CO2 Delivery Solutions plant misting system to a US distributor CO2 GRO said that with “commercial feasibilities” in larger protected facilities near completion in the 2Q and 3Q, it expects several to convert to larger sales.  “The increasing list of international commercial feasibilities represents potential opportunities for sales in new markets going forward,” the company said. “Looking out over the balance of 2021 we anticipate significant sales growth in Q3 and Q4.” During the quarter ended March 31, 2021, the company reported $17,000 in revenue. But it noted that it has signed purchase orders not meeting its revenue recognition criteria totaling $97,000, of which $20,000 was for an order for pre-payments and has been reported as deferred revenue. “As installations for the Orders are completed and commercial feasibility CO2 Delivery Solutions systems are installed and in operation, the applicable revenue will be recognized,” the company added. Aaron Archibald, vice president of sales and strategic Alliances, said that after the company recognizes all its revenue for the quarter, the amount will exceed its entire 2020 revenue of $91,248.  “This is an important metric indicating that our work in the last twelve months is beginning to yield good revenue growth results,” Archibald noted.  “It is heartening to continue to announce direct sales without feasibilities while our larger feasibilities from 2020 should translate into larger revenue opportunities shortly. We believe that the Company has never been better positioned to build upon this trend for the foreseeable future." Contact the author: patrick@proactiveinvestors.com Follow him on Twitter @PatrickMGraham