CEA Industries (BNC) investor relations material

Executive summary

• Completed acquisition of Fat Panda, a leading Canadian vape retailer and manufacturer, expanding operations to 33 retail locations and a strong e-commerce platform in central Canada.

• Closed a $500 million private placement offering, with proceeds intended for a new digital asset treasury strategy focused on acquiring and managing BNB cryptocurrency.

• Transitioned business model to include digital asset treasury operations, with a focus on BNB Chain and related decentralized finance activities.

Financial highlights

• Revenue for the three months ended July 31, 2025, was $7.5 million, up 8% year-over-year, primarily due to price increases and the Fat Panda acquisition.

• Gross profit decreased 21% to $2.3 million, with gross margin dropping from 42% to 31% due to higher material costs and excise taxes.

• Operating expenses rose to $7.9 million, up 288%, driven by $4.7 million in non-cash stock-based compensation and $1 million in acquisition-related legal and accounting fees.

• Net loss for the quarter was $5.8 million, compared to net income of $0.7 million in the prior year, reflecting increased expenses and one-time items.

• Cash and cash equivalents at quarter-end were $3.0 million, with a working capital deficit of $1.0 million.

Outlook and guidance

• The $500 million PIPE investment in August 2025 is expected to provide sufficient liquidity for at least the next twelve months.

• Proceeds from the offering will be used to acquire BNB and engage in income-producing activities within the BNB ecosystem.

• Management anticipates continued inflationary pressures and plans to monitor contract terms to maintain margins.