Monitor BNB price and AMA litigation outcome — both are existential for the treasury strategy. The $10M loan against BNB collateral suggests ongoing cash needs despite the non-cash net income. Insider selling and low cash reserves are key risks.
Price Chart
Executive Summary
CEA Industries reported fiscal 2026 net income of $115.2 million ($2.52/diluted share), driven by a $282.9 million non-cash gain on warrant liabilities offset by a $130.3 million unrealized loss on digital assets. The company holds 515,544 BNB tokens worth ~$319.6 million at year-end, completed a $10M USDC loan against BNB collateral post-quarter, and repurchased 1.43M shares for $3.8M. However, net income is entirely non-cash from warrant revaluation, the company has only $3.1M cash, and it faces active litigation seeking to void its asset management agreement (AMA).
Key Financial Metrics
Key Facts
- Reported FY2026 net income of $115.2M ($2.52/diluted share) was 100% driven by a $282.9M non-cash gain on warrant liabilities, not operations.
- Unrealized loss on digital assets of $130.3M signals BNB price volatility impact.
- Only $3.1M cash at year-end; drew $10M USDC loan against BNB collateral on May 1, 2026 for liquidity.
- Filed lawsuit on May 22, 2026 seeking to void AMA and recover fees — ongoing litigation.
- Post-year-end repurchased 1,434,112 shares for $3.8M under share repurchase program.
- Holds 515,544 BNB tokens; fair value $319.6M at April 30, 2026.
Financial Impact
Net income of $115.2M is non-cash; cash burn continues with only $3.1M cash on hand. Post-quarter $10M secured loan indicates liquidity strain.
Risk Factors
- BNB price volatility directly impacts fair value of the entire asset base.
- Only $3.1M cash vs $317M in volatile digital assets; liquidity is extremely thin.
- Active litigation to void AMA could result in material fees or damages.
- Warrant liability gain is non-cash and does not improve operating position.
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001482541-26-000021 |
| Document: bnc-2026x06x22xpr.htm | 0001482541-26-000021 |
| Document: 0001482541-26-000021-index-headers.html | 0001482541-26-000021 |
| Document: 0001482541-26-000021-index.html | 0001482541-26-000021 |
| Document: 0001482541-26-000021.txt | 0001482541-26-000021 |
| 8-K Data (Synthetic) | 0001482541-26-000021 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 22, 2026 4d ago | 3 | $5.19 | awaiting T+20 | — | $5.33 (+2.70%) |
Oct 19, 2026 7d ago | 8-K | $4.67 | awaiting T+20 | — | $5.33 (+14.13%) |
Oct 7, 2026 19d ago | 3/A | $5.10 | awaiting T+20 | — | $5.33 (−4.51%) |
Sep 11, 2026 6w ago | 8-K | $5.27 $5.20 | ▲ +1.33% | ▲ +3.59% | $5.33 (−1.14%) |
Aug 10, 2026 11w ago | 8-K | $2.43 $4.43 | ▲ +82.30% | ▲ +83.36% | $5.33 (+119.34%) |
Jul 10, 2026 15w ago | 3 | $2.81 $2.41 | ▼ −14.23% | ▼ −17.42% | $5.33 (+89.68%) |
Jun 23, 2026 17w ago | 8-K | $2.69 $2.95 | ▼ −9.67% | ▼ −7.73% | $5.33 (−98.14%) |
Jun 23, 2026 17w ago | 10-Q/A | $2.69 $2.95 | ▼ −9.67% | ▼ −7.73% | $5.33 (−98.14%) |
Jun 23, 2026 17w ago | 10-Q/A | $2.69 $2.95 | ▼ −9.67% | ▼ −7.73% | $5.33 (−98.14%) |
Jun 17, 2026 18w ago | 8-K | $2.25 $2.95 | ▼ −31.11% | ▼ −30.58% | $5.33 (−136.89%) |
US Market Status
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