CEA Industries (BNC) investor relations material

Executive summary

• Held 515,544 BNB tokens valued at $302.3 million as of July 31, 2026, representing 93.1% of total assets.

• Reported a net loss of $11.4 million, or $(0.22) per diluted share for Q1 fiscal 2027, primarily due to a $15.3 million unrealized loss on digital assets, partially offset by a $10.0 million non-cash gain on warrant liabilities.

• Retail and Industry segment includes Canadian vape retail (Fat Panda) and industrial climate control systems, contributing $7.2 million in quarterly revenue.

• Strategic transformation in August 2025, following a $500 million PIPE transaction and shift to a digital asset treasury (DAT) strategy.

• Leadership changes: CEO transition in July 2026, with CFO serving as interim principal executive officer and new Chair appointed; CEO search ongoing.

Financial highlights

• Revenue for the quarter ended July 31, 2026 was $7.2 million, down 4.6% from the combined prior-year period due to discontinuance of a product line.

• Net loss of $11.4 million, compared to a combined net loss of $1.2 million in the prior-year period.

• Gross profit of $2.0 million, with a gross margin of 27.4%.

• Operating expenses surged to $23.2 million, driven by $15.3 million unrealized loss on digital assets and $1.4 million in shareholder advisory expenses.

• Cash and cash equivalents at quarter-end were $7.1 million, up from $3.1 million at the previous quarter end.

Outlook and guidance

• Management expects continued volatility in reported earnings due to BNB price fluctuations and reduced Airdrop income.

• Focus remains on disciplined execution of the BNB digital asset treasury strategy and evaluating additional treasury management opportunities within the BNB ecosystem.

• Near-term priorities include operational and strategic execution and resolving pending Asset Management Agreement litigation.

• Plans to maintain or potentially increase BNB holdings as capital allows.