CEA Industries Inc. (Nasdaq: BNC) reported financial results for the first quarter of fiscal 2027, which ended July 31, 2026. The company announced a net loss of $11.4 million, or $(0.22) per diluted share, driven primarily by a $15.3 million unrealized loss on digital assets. This loss was partially offset by a $10.0 million non-cash gain on the change in fair value of warrant liabilities.
The company’s digital asset holdings remained stable, with 515,544 BNB tokens held at July 31, 2026, valued at approximately $302.3 million. This figure includes 471,346 unrestricted tokens and 44,198 tokens pledged as loan collateral. Total digital assets, including Bitcoin and USDT, were valued at $304.5 million and represented 93.1% of total assets.
Revenue from the Retail and Industry segment was $7.2 million, a decrease of 4.6% compared to the prior-year quarter. This decline was attributed to the discontinuance of a product line at Fat Panda. Gross profit for the quarter was $2.0 million. Operating expenses totaled $23.2 million, which included $1.4 million in shareholder advisory expenses related to a resolved activism campaign and $1.1 million in management fees under the Asset Management Agreement.
On the balance sheet, total assets were $327.2 million and total shareholders’ equity was $289.4 million. The company ended the quarter with $7.1 million in cash and cash equivalents, an increase from $3.1 million at the prior period end. To support liquidity, CEA Industries drew $15.0 million of USDC under a master loan facility secured by 44,198 BNB valued at $25.9 million. Total debt outstanding was $16.8 million, and the company confirmed compliance with all debt covenants.
During the quarter, the company repurchased and cancelled 1,434,112 shares of common stock at an average price of $2.63 per share for a total of $3.8 million under a $250 million authorization approved in September 2025. Following the repurchases, shares outstanding decreased to 41,173,850.
Corporate governance updates included the resignation of CEO David Namdar on July 22, 2026, and the appointment of CFO William B. Miller as Interim Principal Executive Officer. The company also entered into a cooperation agreement with YZILabs in June 2026 to resolve a prior consent solicitation campaign. Additionally, the company filed a complaint in U.S. District Court to void the Asset Management Agreement, which remains pending.
