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KERN Stock – A Cannabis Industry Pioneer

KERN Stock

Akerna Corp. (NASDAQ: KERN) provides software solutions to cannabis operators that enable compliance and inventory management in the US and Canada. Through its subsidiaries, KERN was able to create a global technology ecosystem for the booming cannabis industry. After the SAFE Act was approved by the House as an amendment to the NDAA 2023 bill, KERN stock climbed more than 50% overnight. With further legislations regarding the cannabis industry appearing to be on the horizon, KERN stock could be one to watch this year considering its current dip.

KERN Stock News

Considered to be a pioneer in the cannabis industry, KERN invented seed-to-sale software in 2010 through its subsidiary MJ Freeway and continued to develop software solutions designed for the cannabis industry. As the first cannabis-specific ERP solution, the MJ platform has premier accounting integrations and an API partner ecosystem which allows cannabis businesses to grow their operations in legal cannabis markets. 

Considering this platform’s potential, KERN integrated an advanced business intelligence tool into the MJ Platform – MJ Analytics – to further grow its platform. As the MJ platform provides users with access to real-time data and analytics, cannabis operators can make better decisions to grow their business. Since the MJ Platform is the company’s flagship platform, KERN stock could be a smart long-term investment as more and more states legalize cannabis. 

In addition to the MJ Platform, KERN has a wide range of solutions that could be used in several industries where compliance with government regulatory agencies is required. These solutions allow states to monitor licensed businesses’ compliance with laws and allows businesses to operate in compliance with such laws. With this in mind, KERN is providing its platforms MJ Platform, Trellis, Ample, Viridian, and 365 Cannabis to state-licensed businesses. Meanwhile, KERN offers its regulatory software platform Leaf Data Systems to state government regulatory agencies

At the same time, KERN provides a revolutionary solution for state and national governments to track product and waste across the supply chain through Solo. This platform is also integrated with the MJ Platform for customers and brands to ensure more authentic and transparent transactions. Although these solutions mainly meet the needs of small and medium businesses, KERN provides its Viridian and 365 Cannabis offering for enterprises so that the company is able to offer its products to all businesses in the cannabis industry. In light of this, KERN stock could be poised for major growth in the future since cannabis legislations are gaining traction worldwide. 

On that note, KERN has been capitalizing on the booming cannabis industry as it already has one of the largest seed-to-sale footprints in the cannabis industry – operating in 15 countries and 23 US states. With this in mind, there are many market drivers that could allow the company to further grow its footprint nationally and globally. In the US, there are a number of proposed bills that could send the cannabis industry to new highs if they pass including the MORE Act, Mace States Reform Act, and CAOA. With this in mind, there would be more cannabis operators in the already highly competitive cannabis market if these bills pass. In light of this, KERN could be well-positioned to witness higher demand for its services which could bring more eyes to KERN stock.

Meanwhile, KERN stock recently climbed by as much as 50% following the approval of the SAFE Act as an amendment to the 2023 NDAA bill by the House. If the Senate passes this Act, cannabis operators would have access to banking services which could lead to major growth for the cannabis sector. Based on this, KERN stock could be in a prime position to soar as the company’s services could be used by all cannabis operators.

Despite the company’s growth potential in the growing cannabis market, KERN is suffering from liquidity woes due to its convertible debt. Trying to improve this situation, KERN reduced its workforce and operating costs to accelerate its path to profitability. To facilitate this, the company intends to focus its resources on its enterprise business and expanding its SMB business into new markets. Moreover, the company’s management agreed to a 25% reduction in salary to support the company’s cost savings initiatives. Through these initiatives, KERN was able to save $440 thousand in salaries, payroll taxes and benefits costs which would have been reported in its Q2 financials.

KERN also closed an offering recently to raise gross proceeds of $10 million. In this offering, KERN sold 29.3 million units consisting of 29.3 shares and warrants to purchase up to 29.3 million shares. In addition, the company sold 14 million pre-funded units where each unit could be exercised for one share as well as warrants to purchase up to 14 million shares. Through the proceedings of this offering, KERN plans to service its debt obligations under its convertible notes and develop its products. While this influx of cash could help the company in its current situation, KERN stock declined 55% on the news of this offering. With this in mind, this dip could be an opportunity for bullish investors to secure shares of KERN stock at a cheap price as the company’s growth potential in the cannabis market is significant.

KERN Stock Financials

According to its Q1 report, KERN’s assets declined to $74.3 million compared to $94.4 million in the previous quarter. Of these assets, KERN has a cash balance of $9.6 million and has $2.5 million in receivables which could boost the company’s cash in the coming quarter. Meanwhile, KERN reduced its liabilities from $34.5 million to $33.5 million resulting from the decline of the company’s long term debt.

As for revenues, KERN reported $6.9 million – a 73% YOY growth. However, operating costs increased to $25.3 million from $$6 million a year ago. Based on this, KERN reported a net loss of $21.9 million compared to $6.4 million in the previous year. 

Media Sentiment

@BeginnerInvest4 is bullish KERN stock could reach $.3 today.

@Mitch___Picks realized major gains after accumulating KERN stock at its dip.

Technical Analysis

KERN stock chart

KERN stock is currently trading at $.1804 and has a support near .1440. The stock also shows resistances at .1820, .2880, and .3885. Following the approval of the SAFE Act as an amendment to the NDAA 2023 bill, cannabis stocks including KERN stock climbed. With the stock momentarily breaking through $.2, many investors are bullish the stock could be set to run if it continues witnessing high volume. With several cannabis related bills set to be discussed in the Senate, KERN stock could be a bargain at this current dip for bullish investors.

Meanwhile, the stock recently broke through its resistance but failed to hold it as a support. Based on this, KERN stock could drop near its support which could be an entry point to secure cheap shares.

KERN stock chart

Following the stock’s run past $.2, accumulation took a hit but appears to be regaining some of its momentum. However, the MACD remains bullish to the upside. The RSI cooled off from 76 to 61 which shows that KERN stock is slightly overbought but with enough room to run on high volume. KERN has an OS of 66.1 million and a float of 58.2 million.

KERN Stock Forecast

As a pioneer in the cannabis industry, KERN’s growth potential is unlimited as its services can be used by all cannabis operators. With this in mind, KERN stock is climbing investors’ watchlists after the House approved the SAFE Act as an amendment to the NDAA 2023 bill. With anticipation brewing over the Senate’s decision regarding the Act, KERN stock and other cannabis plays could continue gaining momentum. While the company is trading at a dip, this could be an opportunity for bullish investors to secure a position in KERN stock. However, the company’s poor liquidity and convertible notes could further impact the stock if the company has to offer more shares.

If you have questions about KERN stock and where it could be heading next feel free to reach out to us in our free alerts room!


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