CEA Industries Inc. Reports Fourth Quarter and Full Year 2024 Results

/EIN News/ -- Louisville, Colorado, March 27, 2025 (GLOBE NEWSWIRE) -- CEA Industries Inc. (NASDAQ: CEAD, CEADW) (“CEA Industries” or the “Company”), is reporting results for the three and twelve months ended December 31, 2024.

Fourth Quarter 2024 Financial Summary (in $ thousands, excl. margin items):

		Q4 2024 (unaudited)				Q3 2024 (unaudited)				Q4 2023 (unaudited)
Revenue		$	417			$	391			$	251
Gross Profit (Loss)		$	(175	)		$	(70	)		$	(286	)
Operating Expenses		$	850			$	677			$	709
Net Income/(Loss)		$	(1,019	)		$	(740	)		$	(988	)

Full Year 2024 Financial Summary (in $ thousands, excl. margin items):

		FY 2024				FY 2023
Revenue		$	2,803			$	6,911
Gross Profit (Loss)		$	(220	)		$	542
Operating Expenses		$	2,952			$	3,495
Net Income/(Loss)		$	(3,146	)		$	(2,912	)

“We continue to maintain the lean cost structure we implemented last year, with a focus on expense reduction and capital preservation as we work through our remaining backlog of Controlled Environment Agriculture related work,” said Tony McDonald, Chairman and CEO of CEA Industries. “To demonstrate our commitment to shareholders, throughout 2024 we reduced headcount, eliminated product development costs, and brought down business development expenses to help preserve our balance sheet. These efforts enabled us to reduce operating expenses by approximately 16% in 2024 compared to the prior year.

“As we announced last month, we recently signed an agreement to acquire Fat Panda, a Winnipeg, Canada based retailer and manufacturer of e-cigarettes, vape devices and e-liquids with a substantial market share in the mid-western province region. Fat Panda’s strong retail footprint, vertically integrated operations, and consistent profitability align well with our strategic objectives. By combining our expertise and resources, we aim to accelerate Fat Panda’s expansion, drive operational efficiencies, and enhance long-term value creation for our shareholders. We look forward to providing further updates following the prospective close of the transaction in the coming months.”

Fourth Quarter 2024 Financial Results

Revenue in the fourth quarter of 2024 increased to $0.4 million compared to $0.3 million for the same period in 2023. The increase was primarily attributed to greater revenue recognition as the Company worked through its backlog.

Net bookings in the fourth quarter of 2024 increased to $0.5 million compared to $0.1 million in the year-ago period. The Company’s quarter-end backlog also increased to $0.5 million compared to $0.4 million for the same period in 2023. The increase in the Company’s net bookings and backlog was primarily attributed to an equipment order of approximately $400,000.

Gross loss in the fourth quarter of 2024 reflected an improvement to $0.2 million compared to $0.3 million for the same period in 2023. The improvement in gross profit was primarily driven by a reduction in variable costs as a percentage of revenue. Variable costs include the cost of equipment, outside engineering, shipping and handling, travel and warranty.

Operating expenses in the fourth quarter of 2024 were $0.8 million compared to $0.7 million for the same period in 2023. The increase in operating expenses was primarily due to acquisition-related expenses.

Net loss in the fourth quarter of 2024 was $1.0 million or $(1.29) per share, compared to a net loss of $1.0 million or $(1.47) per share for the same period in 2023.

Cash and cash equivalents were $9.5 million at December 31, 2024, compared to $12.5 million on December 31, 2023, while working capital decreased by $3.0 million during this period. At December 31, 2024, the Company remained debt free.

About CEA Industries Inc.

CEA Industries Inc. (www.ceaindustries.com) provides a suite of complementary and adjacent offerings to the controlled environment agriculture industry. The Company’s comprehensive solutions, when aligned with industry operators’ product and sales initiatives, support the development of the global ecosystem for indoor cultivation.

Forward Looking Statements

This press release may contain statements of a forward-looking nature relating to future events. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. These statements reflect our current beliefs, and a number of important factors could cause actual results to differ materially from those expressed in this press release, including the factors set forth in “Risk Factors” set forth in our annual and quarterly reports filed with the Securities and Exchange Commission (“SEC”), and subsequent filings with the SEC. Please refer to our SEC filings for a more detailed discussion of the risks and uncertainties associated with our business, including but not limited to the risks and uncertainties associated with our business prospects and the prospects of our existing and prospective customers; the inherent uncertainty of product development; regulatory, legislative and judicial developments, especially those related to changes in, and the enforcement of, cannabis laws; increasing competitive pressures in our industry; and relationships with our customers and suppliers. Except as required by the federal securities laws, we undertake no obligation to revise or update any forward-looking statements, whether as a result of new information, future events or otherwise. The reference to CEA’s website has been provided as a convenience, and the information contained on such website is not incorporated by reference into this press release.

Non-GAAP Financial Measures

To supplement our financial results on U.S. generally accepted accounting principles (“GAAP”) basis, we use non-GAAP measures including net bookings and backlog, as well as other significant non-cash expenses such as stock-based compensation and depreciation expenses. We believe these non-GAAP measures are helpful in understanding our past performance and are intended to aid in evaluating our potential future results. The presentation of these non-GAAP measures should be considered in addition to our GAAP results and are not intended to be considered in isolation or as a substitute for financial information prepared or presented in accordance with GAAP. We believe these non-GAAP financial measures reflect an additional way to view aspects of our operations that, when viewed with our GAAP results, provide a more complete understanding of factors and trends affecting our business.

Investor Contact:

Sean Mansouri, CFA
Elevate IR
info@ceaindustries.com
(720) 330-2829

CEA Industries Inc.
Condensed Consolidated Balance Sheets
(in US Dollars except share numbers) 

		December 31,				December 31,
		2024				2023
ASSETS
Current Assets
Cash and cash equivalents		$	9,452,826			$	12,508,251
Accounts receivable, net			13,041				18,655
Contract assets, net			234,328				224,414
Inventory, net			25,980				296,404
Prepaid expenses and other			368,068				313,115
Total Current Assets			10,094,243				13,360,839
Noncurrent Assets
Property and equipment, net			5,698				38,558
Intangible assets, net			1,830				1,830
Deposits			14,747				14,747
Operating lease right-of-use asset			245,270				356,109
Total Noncurrent Assets			267,545				411,244
TOTAL ASSETS		$	10,361,788			$	13,772,083
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Current Liabilities
Accounts payable and accrued liabilities		$	550,477			$	624,724
Deferred revenue			343,790				499,800
Current portion of operating lease liability			135,651				126,724
Total Current Liabilities			1,029,918				1,251,248
Noncurrent Liabilities
Operating lease liability, net of current portion			134,147				259,627
Total Noncurrent Liabilities			134,147				259,627
TOTAL LIABILITIES			1,164,065				1,510,875
Commitments and Contingencies (Note 9)			-				-
SHAREHOLDERS’ EQUITY
Preferred stock, $0.00001 par value; 25,000,000 shares authorized; 0 shares issued and outstanding			-				-
Common stock, $0.00001 par value; 200,000,000 authorized; 793,109 and 673,090 shares issued and outstanding, respectively			8				7
Additional paid in capital			49,533,950				49,451,493
Accumulated deficit			(40,336,235	)			(37,190,292	)
Total Shareholders’ Equity			9,197,723				12,261,208
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	10,361,788			$	13,772,083

CEA Industries Inc.
Condensed Consolidated Statements of Operations
(in US Dollars except share numbers)
(Unaudited) 

		For the Three Months Ended December 31,								For the Years Ended December 31,
		2024				2023				2024				2023
		(Unaudited)				(Unaudited)
Revenue		$	417,447			$	251,093			$	2,803,470			$	6,910,951
Cost of revenue			592,343				536,919				3,023,094				6,368,872
Gross (loss) profit			(174,896	)			(285,826	)			(219,624	)			542,079
Operating expenses:
Advertising and marketing expenses			2,685				16,445				16,315				273,409
Product development costs			-				-				-				76,487
Selling, general and administrative expenses			846,817				693,022				2,936,145				3,145,328
Total operating expenses			849,503				709,467				2,952,460				3,495,224
Operating loss			(1,024,399	)			(995,293	)			(3,172,084	)			(2,953,145	)
Other income :
Other income, net			-				-				-				7,778
Interest income, net			5,761				7,774				26,141				33,816
Total other income			5,761				7,774				26,141				41,594
Loss before provision for income taxes			(1,018,638	)			(987,519	)			(3,145,943	)			(2,911,551	)
Income taxes			-				-				-				-
Net loss		$	(1,018,638	)		$	(987,519	)		$	(3,145,943	)		$	(2,911,551	)
Loss per common share – basic and diluted		$	(1.29	)		$	(1.47	)		$	(4.22	)		$	(4.33	)
Weighted average number of common shares outstanding, basic and diluted			791,813				673,031				745,038				672,936

CEA Industries Inc.
Condensed Consolidated Statements of Cash Flows
(in US Dollars except share numbers)
(Unaudited)

		For the Twelve Months Ended         December 31,
		2024				2023
Cash Flows From Operating Activities:
Net loss		$	(3,145,943	)		$	(2,911,551	)
Adjustments to reconcile net loss to net cash used in operating activities:
Depreciation and intangible asset amortization expense			20,065				29,655
Share-based compensation			82,457				187,615
Provision for doubtful accounts (bad debt recovery)			(40,217	)			(2,056	)
Provision for excess and obsolete inventory			26,989				121,791
Loss on disposal of assets			12,796				100
Operating lease expense			110,839				106,765
Changes in operating assets and liabilities:
Accounts receivable			45,831				(13,950	)
Contract assets			(9,914	)			(224,414	)
Inventory			243,435				(69,784	)
Prepaid expenses and other			(54,953	)			1,176,806
Accounts payable and accrued liabilities			(74,247	)			(582,534	)
Deferred revenue			(156,010	)			(3,838,771	)
Operating lease liability, net			(116,553	)			(108,735	)
Net cash used in operating activities			(3,055,425	)			(6,129,063	)
Cash Flows From Investing Activities
Proceeds from the sale of property and equipment			-				200
Net cash provided by investing activities			-				200
Cash Flows From Financing Activities
Net cash provided by financing activities			-				-
Net change in cash and cash equivalents			(3,055,425	)			(6,128,863	)
Cash and cash equivalents, beginning of period			12,508,251				18,637,114
Cash and cash equivalents, end of period		$	9,452,826			$	12,508,251
Supplemental cash flow information:
Interest paid		$	-			$	-
Income taxes paid		$	-			$	-
Non-cash investing and financing activities:
Options issued for accrued equity compensation liability		$	-			$	89,970