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CEA Industries Inc. (CEADW-13.92%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in revenue to $390,817 from $913,571 in the same quarter the previous year. The decrease is attributed to lower bookings and a reduced backlog.
Cost of revenue for the quarter was $460,970, representing 118% of sales, compared to 112% in the same quarter of the previous year. This increase in cost ratio is due to lower revenue and higher fixed costs as a percentage of revenue.
The company reported an operating loss of $746,672 for the quarter, compared to $807,062 in the previous year, with the decrease attributed to cost-cutting measures.
Net loss for the quarter was $740,403, down from $799,019 in the previous year. The decrease in net loss is due to reduced operating expenses.
Cash used in operating activities was $2,213,092, while there were no cash flows from investing or financing activities.
CEA Industries had a working capital of $10,071,000 as of September 30, 2024. The company acknowledges its dependence on positive operating results and potential financing to meet future obligations.
The filing also details various legal proceedings, including claims from Sweet Cut Grow, LLC and Optima Consulting Services, LLC, which the company intends to defend vigorously.
CEA Industries continues to focus on providing environmental control and other technologies to the Controlled Environment Agriculture industry, despite challenges such as inflation and supply chain disruptions.
The company is evaluating merger and acquisition opportunities and other strategic alternatives, including a potential plan of dissolution.
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. Warrant quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.