CEA Industries restates quarterly results for errors in earnings-per-share calculation
CEA Industries concluded on June 11, 2026 that its previously issued condensed consolidated financial statements for the quarters ended October 31, 2025 and January 31, 2026 should no longer be relied upon. An error in calculating weighted-average shares outstanding led to overstatements or understatements of basic and diluted earnings per share across multiple periods, ranging from $0.08 to $4.26 per share. The error did not affect net income, assets, liabilities, equity, revenue, cash flows, or shares outstanding in any affected period; the company intends to file amended Form 10-Qs.
Key facts
- Error in weighted-average shares outstanding used in EPS calculation identified June 11, 2026
- For three months ended October 31, 2025: basic and diluted EPS overstated by $0.21; weighted-average shares understated by 2,214,508
- For three months ended January 31, 2026: basic and diluted EPS understated by $0.08; weighted-average shares understated by 2,376,236
- For Third Quarter Successor period: basic EPS overstated by $4.26 and diluted EPS overstated by $4.21; basic weighted-average shares understated by 21,806,662
- For Second Quarter Successor period: basic EPS overstated by $0.45; basic weighted-average shares understated by 1,857,056 and diluted understated by 857,057
- Error did not impact net income, total assets, total liabilities, stockholders equity, revenue, or cash flows
- Independent registered public accounting firm: Sadler, Gibb & Associates, LLC
- Affected filings: Form 10-Q for quarter ended October 31, 2025 (filed December 15, 2025) and quarter ended January 31, 2026 (filed March 16, 2026)
Why it matters
CEA Industries must amend prior-period quarterly reports and correct EPS figures that were presented to investors, potentially affecting reliance on previously published earnings metrics, though the underlying financial performance and equity base remain unchanged.
Share
Derived from 8-K filed 2026-06-17. Not investment advice. View the source filing on SEC.gov →