ClarificationJun 23, 2026, 04:17 PM
CEA Industries Restates Q1 EPS Due to Material Calculation Error
AI Summary
CEA Industries Inc. announced a restatement of its previously issued unaudited condensed consolidated financial statements for the three months ended January 31, 2026, and the period from June 7, 2025, through January 31, 2026. The restatement corrects a material error in the calculation of basic and diluted weighted-average shares outstanding and earnings per share (EPS). This error, which overstated favorable per-share performance, is linked to an existing material weakness in the company's internal control over financial reporting.
Key Highlights
- Restated previously issued financial statements for three months ended January 31, 2026, and period from June 7, 2025, through January 31, 2026.
- Error in calculating basic and diluted weighted-average shares outstanding and EPS was deemed material.
- For Q1 2026, basic and diluted EPS were understated by $0.08.
- For the period June 7, 2025, to Jan 31, 2026, basic EPS was overstated by $4.26 and diluted EPS by $4.21.
- The restatement did not impact revenues, expenses, net income, total assets, liabilities, or cash flows.
- Error related to an existing material weakness in internal control over financial reporting as of January 31, 2026.
- Management is continuing to implement remediation measures for the material weakness.
Price Impact
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