CEA Industries posts another revenue drop as company contemplates sale

LOUISVILLE — CEA Industries Inc. (Nasdaq: CEAD) recorded another big revenue drop in the fourth quarter, even as the company continues to explore a possible sale or merger.

The Louisville-based company, which provides controlled-agriculture solutions for cannabis companies, reported revenue of $251,000 in the fourth quarter, compared with $1.5 million for the same period in 2022.

Net loss for the fourth quarter totaled $988,000, or 12 cents per share, down from $1.3 million, or 18 cents per share, in the fourth quarter the prior year.

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Annual revenue totaled $6.9 million down 39% from $11.28 million in 2022. The company posted a loss of $2.9 million in 2023, compared with a loss of $5.5 million in 2022.

“We continue to operate under the lean cost structure implemented during 2023, with a focus on expense reduction and capital preservation, as we manage through our remaining backlog,” Tony McDonald, chairman and CEO of CEA Industries, said in a written statement. “Subsequent to year-end we enacted additional headcount reductions, which we anticipate will result in annualized cost savings of (about) $230,000, in support of our ongoing efforts to optimize our operating expense profile.”

McDonald said the company continues to explore a possible sale or merger.

“As previously announced on Aug. 14, 2023, the board of directors remains steadfast in its examination of strategic alternatives, including a sale, merger, or other potential strategic or financial transaction,” McDonald said. “We will provide updates on any material developments that result from this process.”

CEA reported cash and cash equivalents of $12.5 million as of Dec. 31, 2023, down from $18.6 million at the end of 2022.