CEA Industries Inc.

CEA Industries maintains a capital structure characterized by zero reported debt and a current ratio of 1.18, which sits close to the minimum comfort range for liquidity. The balance sheet shows total assets of $337.8 million against total liabilities of $33.1 million, resulting in total equity of $304.8 million. Cash and equivalents stand at $3.1 million, while operating cash flow is negative at -$26.6 million for the fiscal year ending 2026. The company trades at a price-to-book ratio of 0.4 and an EV/EBITDA of -0.73, reflecting market skepticism regarding the sustainability of its earnings and cash generation.

Profitability metrics appear anomalous due to the nature of the reported figures. The company reports a net income of $115.2 million against revenue of $26.4 million, yielding a return on equity of 37.8% and a return on assets of 34.1%. However, operating income is reported as -$159.6 million, suggesting that the net income is driven by non-operating items, likely related to digital asset holdings or accounting adjustments rather than core operational efficiency. The gross profit is $7.9 million, indicating a gross margin of approximately 30%, but this is overwhelmed by operating expenses.

The business is segmented into CEA Industry (industrial climate control systems) and BNB Treasury Management, with a recent addition of Fat Panda, a vaping retailer. The Fat Panda acquisition includes retail outlets, intellectual property, and manufacturing facilities, marking a diversification into consumer retail. Geographic exposure includes operations in Canada (Manitoba, Saskatchewan, Ontario) and the United States (Louisville, KY), with corporate structures also present in the Cayman Islands. Revenue concentration risks are noted with specific suppliers for inventory, particularly within the Fat Panda segment.

Growth trajectory is difficult to assess from the provided single-period financial snapshot, but the acquisition of Fat Panda and the strategic pivot toward digital asset treasury management suggest a shift in business model. The company has engaged in significant capital raising activities, including an At-The-Market offering agreement and various warrant issuances, which have expanded the share count. The basic shares outstanding are 42.6 million, while diluted shares are 45.8 million, indicating moderate dilution pressure from existing options and warrants.

Risk factors are elevated, with a high dilution risk flagged due to the moderately above basic share count and the presence of multiple warrant classes, including stapled, prefunded, and strategic advisor warrants. Liquidity risk is medium, driven by the tight current ratio and negative operating cash flow. Key flags include source documents mentioning dilution or offering risk, and the company's reliance on digital asset holdings for liquidity and value creation, which introduces volatility and regulatory uncertainty.

Recent events include the filing of an 8-K with high severity items related to material agreements and changes in financial statements. The company has disclosed forward-looking statements regarding its digital asset treasury strategy, specifically its holdings of BNB and other cryptocurrencies, and the potential impact of regulatory changes on these assets. The acquisition of Fat Panda was completed, integrating its assets and liabilities into the consolidated financials. The company also reported on its internal control weaknesses and efforts to remediate them.

Cea Industries Inc. (BNC) has recorded a notable addition to its shareholder base, marking the first material change identified for the ticker. As of March 31, 2026, investor ID 931 added 9 shares to their position, a holding valued at approximately $0.000026 million. This activity was detected on June 20, 2026, and represents a weight of roughly 1.25e-08 percent of the total equity, signaling a new entry into the company's ownership structure. This development is significant as it constitutes the first analysis basis for BNC, with no prior data available for delta computation. The addition of this holder is the sole material change observed, highlighting a shift in the composition of the company's top 10 holders. While the absolute number of shares is small, the establishment of a new holding position provides the initial reference point for tracking future ownership trends. The company's broader profile remains static in terms of public scrutiny and market integration. Cea Industries Inc. currently has zero analysts covering the stock and zero index memberships, indicating limited institutional attention or inclusion in major market benchmarks. Furthermore, the company reports an officer count of zero in the available data, suggesting a specific corporate structure or reporting status that distinguishes it from larger, more complex entities. The significance of this holder change lies in its role as the foundational data point for future monitoring. With no cross-source signals or sagas reported, the focus remains strictly on this initial holder activity. As the first recorded change, this event sets the baseline for understanding investor interest in BNC, particularly given the absence of analyst coverage and index membership that typically drive broader market visibility.

Net margin of 4.36% ranks best-in-class against the Electrical Components cohort median of 3.78%.

Revenue surged 856% year-over-year to $26.4 million in FY2026, demonstrating strong top-line growth momentum.

The company maintains a low leverage band with a debt-to-equity ratio of just 0.13.

A current ratio of 9.80 suggests strong short-term liquidity coverage for immediate operational obligations.

Operating margin of -6.04% places the company in the bottom quartile of its peer cohort.

The company faces a high dilution risk, which could significantly erode existing shareholder value over time.

Free cash flow turned negative to -$26.6 million in FY2026, signaling potential liquidity strain despite revenue growth.

Cash conversion ratio of -0.23 ranks in the bottom quartile, highlighting poor cash generation relative to earnings.

Revenue $19.1M; Operating income -$80.1M.

• ▍Revenue $19.1M
• ▍Operating income -$80.1M
• ▍Net margin 898.5%

Revenue $11.7M; Operating income $84.2M.

• ▍Revenue $11.7M
• ▍Operating income $84.2M
• ▍Net margin 2370.1%

Revenue $26.4M; Operating income -$159.6M.

• ▍Revenue $26.4M
• ▍Operating income -$159.6M
• ▍Net margin 436.4%

Revenue $2.9M; Net margin 0.6%.

• ▍Revenue $2.9M
• ▍Net margin 0.6%

Revenue $1.2M; Operating income -$1.4M.

• ▍Revenue $1.2M
• ▍Operating income -$1.4M
• ▍Net margin -118.1%

Revenue $28.0M; Net margin 2.0%.

• ▍Revenue $28.0M
• ▍Net margin 2.0%