CEA Industries Inc. - CEAD STOCK NEWS

Surna Cultivation Technologies, a leader in controlled environment agriculture, has secured a contract with Farm.One for environmental control equipment. This contract involves providing comprehensive HVAC system design for Farm.One's vertical farming facility in New York, aimed at producing high-quality greens tailored for local markets. Surna's engineering team has commenced work to select HVAC equipment that aligns with Farm.One’s cultivation needs. As demand for fresh, local produce rises, Surna aims to leverage its expertise beyond the cannabis sector into indoor food production, which has seen growing engagement from multiple indoor agriculture producers. Farm.One emphasizes the importance of a thriving environment for sustainable, pesticide-free production, highlighting Surna's invaluable experience in indoor cultivation.

Surna Cultivation Technologies, a subsidiary of CEA Industries (NASDAQ: CEAD), has signed its largest design contract to date, worth $335,400. This deal is for architectural and engineering design services for a 60,000 sq. ft. cannabis cultivation facility and a 20,000 sq. ft. processing facility in the Southeastern United States. Expected completion is in 2023. The project highlights Surna's role in supporting the long-term growth of the cannabis industry, amid current market challenges.

CEA Industries Inc. (NASDAQ: CEAD, CEADW) reported its Q4 and full-year 2022 results, which show significant revenue decrease due to supply chain issues and project delays in the cannabis sector. Q4 revenue fell 71% quarter-over-quarter and 52% year-over-year, totaling $1.5 million. Gross profit also declined by 75% QoQ, contributing to a net loss of $1.3 million. Full-year revenue dropped 17% to $11.3 million while operating expenses rose 40% year-over-year. The company aims to diversify its customer base and implement cost-saving measures. Cash reserves increased to $18.6 million, showcasing improved liquidity despite current challenges.

CEA Industries (NASDAQ: CEAD, CEADW) announced a conference call scheduled for March 28, 2023, at 4:30 p.m. ET. The call will address the company’s fourth-quarter and full-year results for 2022. This session will allow management to discuss financial performance and respond to questions from investors. Participants can access the call via dial-in or through a webcast. A replay will be available for two weeks thereafter.

CEA Industries Inc. (NASDAQ: CEAD, CEADW) announced cost-saving measures including operating expense reductions and a workforce reduction due to ongoing macroeconomic challenges. The cannabis market is experiencing declining activity as competition rises and wholesale prices drop, leading customers to be more selective. The company is also facing inflationary pressures and supply chain issues that are affecting project decisions. CEO Tony McDonald emphasized that these steps are crucial for the long-term viability of the company and are aimed at improving working capital and liquidity without compromising customer service.

Surna Cultivation Technologies, a subsidiary of CEA Industries (NASDAQ: CEAD), announced participation in upcoming indoor agriculture conferences. These events include the Indoor Ag-Con in Las Vegas on February 27-28, 2023, where Surna will exhibit at booth 907, and the NECANN in Boston from March 10-12, 2023, with Surna at booth 1008. These conferences focus on the latest in indoor farming technology and industry connections, attracting professionals from across the cannabis industry.

Surna Cultivation Technologies, a subsidiary of CEA Industries (NASDAQ: CEAD), has secured a $1.7 million contract with a Massachusetts cultivation facility. This marks their third consecutive contract with this client, showcasing their reliability in delivering on time and budget. Previously, Surna provided mechanical engineering services and benching equipment valued at $615,000. The latest contract involves a comprehensive suite of HVACD equipment including air handlers, dehumidifiers, chillers, and more for various cultivation and processing rooms.

CEA Industries Inc. (NASDAQ: CEAD, CEADW) reported a strong Q3 2022, with revenue increasing by 68% QoQ and 37% YoY to $5.1 million. However, gross profit fell to $0.6 million, marking a 20% decline YoY. Operating expenses rose 39% YoY to $1.7 million, impacting net loss which was $1.0 million for the quarter. CEA Industries noted a decrease in net bookings to $2.2 million and backlog dropped to $6.8 million. Despite challenges from inflation and supply chain issues, the company aims to diversify beyond cannabis customers and anticipates revenue generation from backlog over the next 18 months.