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CEA Industries Inc. (CEAD+5.19%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reports a decrease in revenue to $2,803,000 for 2024, down from $6,911,000 in 2023. This decline is attributed to a reduction in net bookings due to decreased capital expenditures in the cannabis market and reduced sales efforts.
Cost of revenue decreased by 53% to $3,023,000 in 2024 from $6,369,000 in 2023. The gross loss for 2024 was $220,000, compared to a gross profit of $542,000 in 2023, primarily due to lower revenue and increased fixed costs as a percentage of revenue.
Operating expenses decreased by 16% to $2,952,000 in 2024 from $3,495,000 in 2023. This decrease was due to reductions in advertising, marketing, and selling, general and administrative expenses.
The company reported an operating loss of $3,172,000 for 2024, compared to an operating loss of $2,953,000 in 2023. The net loss for 2024 was $3,146,000, compared to a net loss of $2,912,000 in 2023.
Cash and cash equivalents were $9,453,000 as of December 31, 2024, down from $12,508,000 as of December 31, 2023. The decrease was primarily due to cash used in operations.
CEA Industries Inc. announced an acquisition agreement to acquire Fat Panda Ltd., a Canadian company engaged in the manufacture, distribution, and retail sale of e-cigarettes and related products. The purchase price is CAD$18,000,000, payable in cash, securities, and seller loans.
The company faces ongoing litigation with Sweet Cut Grow, LLC and Green Ice, LLC, and Optima Consulting Services, LLC, with claims related to breach of contract and warranty issues. CEA Industries intends to defend itself vigorously in these matters.
The company continues to face challenges in the cannabis market, including regulatory uncertainty and competitive pressures. CEA Industries does not anticipate paying cash dividends to common stockholders in the near future.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the CEA Industries Inc. annual 10-K report dated March 27, 2025. To report an error, please email earnings@qz.com.