CEA Industries Inc.BNC

CEA Industries Inc. Revenue Disclosure

10-KFiled Jun 23, 20262 min read
Note 3 — Revenue
U.S. GAAP does not recognize the income that the Company generates from its digital assets (Note 4), which comprise approximately 94.6% of its total assets, as revenue. However, the Company recognizes revenue from (a) Canadian retail vape sales from its Fat Panda operations at time of sale and (b) industrial climate control system sales in the United States over a period of time between system delivery and completion of its performance obligations, if any, in connection with the installation of delivered systems. The Company's contracts include the following groups of similar services, which do not include any significant financing components:
SuccessorPredecessor
Period from
June 7, 2025
through
April 30, 2026		Period from
May 1, 2025
through
June 6, 2025		Year Ended April 30, 2025
Fat Panda
Retail
$
23,574 
$
2,761 
$
25,365 
E-commerce
742 
166 
1,939 
Other
379 
1 
688 
Total Fat Panda
24,695 
2,928 
27,992 
Industrial Climate Control Systems(A)
Equipment and systems sales(B)
1,538 
— 
— 
Other
174 
— 
— 
Total industrial climate control systems
1,712 
— 
— 
Total revenue, net(C)
$
26,407 
$
2,928 
$
27,992 
A.Since Fat Panda is the accounting predecessor, the Company omits its revenues earned prior to the Acquisition Date.
B.At April 30, 2026, the Company had yet to deliver, or provide installation services for, equipment totaling $— million, which represents its remaining performance obligations under such contracts, and for which the Company has not recognized revenue; the the timing and realized amount of such potential revenue is uncertain and depends, in part, on the performance of third parties.
C.The Company presents revenues net of variable consideration, including sales taxes, commissions, and promotional discounts.
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Historical Timeline

Fiscal YearFiled
2026Jun 23, 2026Showing above
2018Mar 19, 2019
2016Mar 31, 2017

About Revenue Disclosures

Revenue disclosures under ASC 606 explain how a company identifies performance obligations, allocates transaction prices, and determines when revenue is recognized. This section is essential for understanding whether reported revenue reflects genuine economic activity or aggressive accounting choices. Analysts examine the mix of point-in-time versus over-time recognition, which directly affects revenue timing and comparability.

Key signals: rising contract liabilities (deferred revenue) suggest strong future revenue visibility, while declining contract assets may indicate slowing project milestones. Watch for variable consideration estimates — rebates, returns, and performance bonuses that require management judgment. Significant changes in disaggregated revenue by geography or product line can reveal shifting business mix before it appears in headline numbers. Compare revenue growth against contract liability growth to assess sustainability, and scrutinize any changes in the timing of recognition that coincide with earnings pressure.

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