CEA Industries Inc. Reports Fourth Quarter and Full Year 2024 Results
Rhea-AI Summary
CEA Industries (NASDAQ: CEAD) reported its Q4 and full-year 2024 results, showing mixed performance. Q4 revenue increased to $0.4M from $0.3M year-over-year, with net bookings rising to $0.5M from $0.1M. The company maintained a lean cost structure, reducing operating expenses by 16% in 2024 through headcount reduction and elimination of product development costs.
Notable highlights include a reduced Q4 gross loss of $0.2M (vs $0.3M in 2023) and quarterly net loss of $1.0M or $(1.29) per share. Cash position stood at $9.5M as of December 31, 2024, down from $12.5M year-over-year. The company remains debt-free.
CEA Industries recently announced an agreement to acquire Fat Panda, a Canadian e-cigarette and vape devices manufacturer, aiming to leverage their retail footprint and profitable operations for long-term value creation.
Positive
- Revenue increased 33% YoY to $0.4M in Q4 2024
- Net bookings increased 400% to $0.5M in Q4 2024
- Operating expenses reduced by 16% in 2024
- Company remains debt-free
- Strategic acquisition of profitable Fat Panda business announced
Negative
- Net loss of $1.0M in Q4 2024
- Cash position decreased by $3.0M year-over-year
- Working capital declined by $3.0M
- Continued gross loss of $0.2M in Q4 2024
Insights
CEA Industries' Q4 results show modest improvements amid ongoing challenges in their controlled environment agriculture business. Revenue increased to
Despite these incremental gains, the company still reported a gross loss of
The announced Fat Panda acquisition marks a significant strategic pivot away from their struggling core business. This Canadian vape company appears to have little synergy with CEA's environmental control systems but offers immediate diversification into a profitable operation. This strategic shift suggests management recognizes the continued challenges in the controlled environment agriculture sector and is seeking alternative revenue streams rather than doubling down on their original business model.
The company's cost-cutting measures, including headcount reductions and elimination of product development, indicate they're in capital preservation mode rather than growth mode in their core business. The
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
“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
Net bookings in the fourth quarter of 2024 increased to
Gross loss in the fourth quarter of 2024 reflected an improvement to
Operating expenses in the fourth quarter of 2024 were
Net loss in the fourth quarter of 2024 was
Cash and cash equivalents were
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, | - | - | ||||||
| Common stock, | 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 | ||||
FAQ
What was CEA Industries (CEAD) revenue in Q4 2024?
How much cash does CEAD have as of December 31, 2024?
What is CEAD's latest acquisition target?
How much did CEAD reduce operating expenses in 2024?
What was CEAD's Q4 2024 earnings per share?
