Urban–gro Inc. (OTCQX: UGRO), a cultivation systems integrator and agricultural-technology firm for commercial cultivators of cannabis and other crops, posted higher preliminary revenues and earnings in the third quarter of fiscal year 2020, reversing a recent trend of losses in prior quarters.

The company, in a U.S. Securities and Exchange filing Wednesday, said it expects to record revenues between $8 million and $8.5 million, compared with $4 million in its fiscal second quarter of 2020 and $5.6 million in Q3 2019.

Urban-gro, which plans to file a full Q3 earnings report next month, anticipates earning a profit of $200,000 to $300,000 in Q3, compared with a loss of $5.3 million in the same period last year and a loss of $1.6 million in Q2 2020.

The firm credits its improved performance to an “increase in the shipment of complex environmental equipment systems and sales of other cultivation equipment predominantly tied to design contracts signed within the trailing 12 months,” the regulatory filing said.

“Fiscal Q3 2020 represents a pivotal quarter for urban-gro. We were successful in achieving our previously announced goal of strengthening our financial position and attaining quarterly positive Adjusted EBITDA in fiscal 2020,” Urban-go CEO Bradley Nattrass said in a prepared statement. “Further, in combination with the recently announced amendment to our debt facility, we are now aligned and highly focused to build on this momentum as we enter a transformational phase of growth for the company.”

In a September news release, the company announced an amendment to its line of credit that provided “an extension of the maturity date from Feb. 21, 2021 to Dec. 31, 2021,and the introduction of an amortization feature where the company will begin to make regular payments against the facility.”

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Urban-gro chief financial officer Dick Akright said at the time, “In a time of economic challenges for nearly every industry, and while we believe the amended terms with our lender indicate a strengthening of our financial position, pursuing new opportunities while also focusing on positive cash flow and profitability continue to be urban-gro’s top priorities. Building on the company’s performance to date, we will now start focusing on further strengthening our balance sheet, including through a staged reduction of our debt load.”

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