Financial Data and Key Metrics Changes - Revenue for Q3 2021 was $3.7 million, representing a 127% increase compared to Q3 2020 [28] - Gross profit margin for Q3 2021 was 20.2%, down from 32.2% in Q3 2020, a decrease of 12 percentage points [29] - Operating loss for Q3 2021 was $443,000, a 57% increase compared to the prior year [30] - Year-to-date revenue through September 30, 2021, was $10.6 million, a 106% increase from $5.1 million in the same period last year [32] - Adjusted net loss for Q3 2021 was $363,000, representing a 95% increase compared to the same quarter last year [31] Business Line Data and Key Metrics Changes - Bookings for Q3 2021 were approximately $5.6 million, a 32% increase compared to Q3 2020 and a 509% increase compared to Q2 2021 [35] - The company has expanded its product and service offerings, including new partnerships and product lines, to enhance its market position [10][11] Market Data and Key Metrics Changes - The controlled environment agriculture (CEA) market, particularly indoor cannabis cultivation, is projected to grow at a compound annual growth rate of over 20% [14] - The company has begun to serve the non-cannabis controlled environment agriculture market, particularly indoor food farming, indicating diversification in market focus [6][7] Company Strategy and Development Direction - The company aims to pursue aggressive organic growth, strategic relationships, mergers and acquisitions, and uplisting to a national exchange [13][14] - The focus on preventative maintenance contracts is seen as critical for maximizing customer uptime and supporting long-term relationships [40] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the organic growth strategy gaining traction and expected continued success in the second half of the year [38] - Supply chain disruptions were acknowledged, with anticipated revenue impacts pushing into Q4 2021 and possibly Q1 2022 [42] Other Important Information - The company completed a PIPE financing and issued Series B preferred shares, raising approximately $2.6 million after fees [36] - The company has not raised capital in over three years and is focused on financial discipline while seeking growth opportunities [21][23] Q&A Session Summary Question: Importance of preventative maintenance contracts - Management believes these contracts maximize customer uptime and support throughout the project lifecycle [40] Question: Update on uplisting efforts - Management confirmed completion of PIPE financing as a necessary first step towards uplisting to a national exchange [41] Question: Impact of supply chain disruptions - Management indicated that delays would affect revenue, pushing some into Q4 2021 and possibly Q1 2022 [42] Question: Relationship with grill advisors - Management confirmed the end of the relationship with grill advisors [43]
CEA Industries(CEAD) - 2021 Q3 - Earnings Call Transcript