CEA Industries Inc. Q4 FY2021 earnings call

• Renamed the company from Surna Inc. to CEA Industries, Inc. and its subsidiary for indoor cultivation to Surna Cultivation Technologies. - Corporate strategy pillars: aggressive organic growth, seek strategic relationships/mergers acquisitions, uplist to NASDAQ. - Organic growth strategy includes new markets (noncannabis controlled environment agriculture), new products/services (expanded product range, architectural design services), and new trade name. - 2021 highlights: net bookings doubled, revenue up 60%, improved gross profit margin, operating loss decreased excluding noncash items, and significant cash raise leading to NASDAQ uplisting.

In 2021, total revenue was $13.6 million, representing a 60% increase over 2020. Net bookings were approximately $16 million, a 116% increase from 2020. The 2021 gross profit margin was 21.5% compared to 18.2% in 2020, an increase of 330 basis points. As of December 31, 2021, cash position was $2.16 million, but after the February 2022 capital raise, cash equivalents were approximately $21 million.

Management has not historically provided guidance and does not currently offer any forward-looking guidance for future revenue and earnings. They do not offer specific guidance on future project pipelines or acquisitions timing beyond stated strategic intentions.

Forward-looking statements are subject to inherent uncertainties in predicting future results and conditions. Investors are referred to the company's Form 10-K for a more detailed discussion of risks and uncertainties associated with the business.

Q: Can you talk about some of the potential acquisitions and timing of those acquisitions that you'd be contemplating?

A: I really couldn't speak to that, Alan. I appreciate your call and encouragement. I couldn't speak to anything directly other than to say that if you look at our stated intentions, the fact that we, in January, brought on Vice President of Corporate Development that we have these firmly in mind and are doing everything we can to fulfill our strategic objective of growing our platform.

Q: Do you think it would be limited to the United States? Are you looking at other markets outside of the United States?

A: We have stated in our public filings that we believe there are opportunities for us internationally. And of course, we've long operated in Canada. But beyond that geography that we do believe there are opportunities that lie outside North America and that we -- at some stage, we'll be interested in pursuing them.

Q: Do you know what the cash value per share is?

A: The answer to that is $2.66. So to your point, there's a lot of room here to run and we're looking forward to 2022 that's supported in that.