CEA Industries Is Facing Several Tailwinds To Propel Them Into Kicking Off 2022 On The Right Foot

In late November, we published the first article that is part of a series of 7 stories that provide insight on a select group of cannabis industry companies. We consider these operators to be undervalued on a comparative basis and well positioned to record strong growth in 2022.

In our second article, we are covering CEA Industries Inc. (www.ceaindustries.com) (OTC: SRNA) which has reported a series of significant operational developments and milestones this year. When compared to other ancillary cannabis businesses, we consider Surna to be an undervalued opportunity and continue to monitor this trend.

Although CEA Industries Inc.  has been executing on a multi-faceted growth strategy and has been reporting impressive growth, the recent trend has been to the downside. Below, we highlighted what we consider to be the 5 most important announcements so far this year and believe our readers should be aware of this.

1. Last month, CEA Industries Inc. released third quarter financial results and reported to have generated $3.7 million of revenue in the period. This amount is more than 125% higher than the same period last year and we are favorable to this trend. On a year-over-year comparative basis, the company reported a 42% increase in the amount of gross profit, and we are favorable on how the fundamentals have improved.
2. From a backlog standpoint, CEA Industries Inc.’s backlog increased to $9.9 million in the third quarter. This is near the highest level of backlog in the history of the company, and we are bullish on the revenue that can be generated in future quarters from this. Although the business has been impacted by production and shipping delays from certain suppliers, the management team continues to be laser focused on converting this aspect of the business into cash flow and we are bullish on the direction the business is heading.
3. One of the most important trends for CEA Industries Inc. in 2021 has been related to the type of products and services that are being offered by the business. This year, the number of curated and proprietary products that are offered has significantly increased. We are favorable on the impact the increase has had on the Company’s total addressable market (TAM) and consider this to be a core pillar of the long-term growth story. In addition, the company announced the introduction of preventative maintenance services early in the fourth quarter of 2021. We believe that these services will generate recurring revenue and possibly lead to retrofit opportunities.
4. A few months ago, CEA Industries Inc.  made an important addition to the management team and appointed Brian Knaley as Chief Financial Officer (CFO). He is a seasoned financial executive with over 25 years of experience and previously served as CFO for two other public companies. We believe Mr. Knaley adds important expertise to the management team and we are favorable to the company’s focus on adding strategic human capital.
5. Between the new product and service offerings and the higher backlog, we believe CEA Industries Inc.  is well positioned to record strong growth in 2022. We are most excited about the launch of a product that will generate recurring revenue for the business and consider this to be an important aspect of the story. By having a product that will generate recurring revenue, overall visibility into potential growth has improved and I believe the market has not assigned much value to this aspect of the story.

If you are interested in learning more about how CEA Industries Inc. is positioned to capitalize on the global cannabis market, please send an email to support@technical420.com with the subject “CEA” to be added to our distribution list.

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Pursuant to an agreement between StoneBridge Partners LLC and Surna Inc. (SRNA) we have been hired for a period of 180 days beginning April 12, 2021 and ending October 12, 2021 to publicly disseminate information about (SRNA) including on the Website and other media including Facebook and Twitter. We are being paid $7,000 per month (SRNA) for or were paid “0” shares of restricted common shares. We own zero shares of (SRNA), which we purchased in the open market. We plan to sell the “ZERO” shares of (SRNA) that we hold during the time the Website and/or Facebook and Twitter Information recommends that investors or visitors to the website purchase without further notice to you. We may buy or sell additional shares of (SRNA) in the open market at any time, including before, during or after the Website and Information, provide public dissemination of favorable Information. This contract has been renewed as of October 19th and will renew on a month by month basis until written consent from the client is submitted.

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Michael Berger is Managing Partner of StoneBridge Partners LLC. SBP continues to drive market awareness for leading firms in the cannabis industry throughout the U.S. and abroad.

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