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Segment Reporting
 6 Months Ended
Oct. 31, 2025
Segment Reporting [Abstract]  
Segment Reporting

Note 19 – Segment Reporting

 

During the second quarter of 2026, the Company introduced a new business line focused on BNB Treasury Management and appointed a new Chief Executive Officer, who serves as the Chief Operating Decision Maker (“CODM”). These changes triggered a reassessment of the Company’s operating segments under ASC 280, Segment Reporting. As a result of this reassessment, the Company determined that it now operates two reportable segments: BNB Treasury Management and legacy CEA and retail operations. Comparative periods have been re-recast to reflect this change in segment composition.

 

The CODM evaluates the financial performance of the business and makes resource allocation decisions based on these two distinct sources of business activity:

 

●BNB Treasury Management – This segment includes income from digital asset activities, costs and expenses related to building and executing the Company’s digital asset strategy, and fair value changes (unrealized gains or losses) on digital assets associated with the Company’s Binance holdings.

 

●Retail and Industry Segment – This segment includes Fat Panda’s retail and distribution operations along with revenue and operating costs related to designing, engineering, and selling environmental control and other technologies for the Controlled Environment Agriculture industry.

 

The “Corporate” category presented in the following tale is not considered an operating segment. It consists primarily of corporate support functions including capital and funding to support the business activities of the company and includes costs and expenses not allocated to a line of business.

 

The CODM uses Income (loss) from operations before provision for income taxes as the primary measure to assess segment performance. This measure is reviewed regularly by examining period-over-period trends, benchmarking against competitors, and monitoring budget versus actual results. The CODM also considers this metric when evaluating income generated from segment assets to determine whether to reinvest profits within the segment or allocate resources elsewhere in the entity.

 

 

The following tables present (for each segment and consolidated total) the Company’s revenues and significant expenses regularly provided to the CODM, reconciled to Income (loss) from operations before provision for income tax (in thousands) for each of the periods presented. Total segment assets (in thousands) provided to the CODM are also disclosed in the tables below for each period presented.

 Schedule of Segment Reporting Information

             
   Three Months Ended October 31, 2025 
  

Retail and Industry

Segment

(Successor)		   BNB Treasury Management Segment   Corporate   Total Consolidated 
Total Revenue, net  $7,143,485   $-   $-   $7,143,485 
Cost of revenue   (5,050,228)   -    -    (5,050,228)
Unrealized gain on digital asset   -    114,033,718    -    114,033,718 
Other income from airdrop   -    5,827,578    -    5,827,578 
Advertising and marketing expenses   (93,900)   -    (4,561,163)   (4,655,063)
Compensation expenses   (1,600,475)   (70,000)   (61,187)   (1,731,662)
Asset management fees   -    (1,798,357)   -    (1,798,357)
Professional and contractor fees   (966,609)   (207,855)   (602,302)   (1,776,766)
Stock-based compensation   (3,799)   -    (26,648)   (30,447)
Other segment expenses (1)   (928,040)   (1,280)   (15,400,013)   (16,329,333)
Change in fair value of warrant liabilities   -    -    206,818,087    206,818,087 
Interest expense and other income, net   (646,742)   -    -    (646,742)
Income (loss) from operations before provision for income tax  $(2,146,308)  $117,783,804   $186,166,774   $301,804,270 
Total Assets   16,931,635    567,987,094    31,545,992    616,464,721 

 

             
   Three Months Ended October 31, 2024 
   Retail and Industry Segment (Predecessor)   BNB Treasury Management Segment   Corporate   Total Consolidated 
Total Revenue, net  $7,436,751   $        -   $     -   $7,436,751 
Cost of revenue   (4,591,637)   -    -    (4,591,637)
Advertising and marketing expenses   (184,013)   -    -    (184,013)
Compensation expenses   (1,466,776)   -    -    (1,466,776)
Professional and contractor fees   (140,925)   -    -    (140,925)
Other segment expenses (1)   (676,732)   -    -    (676,732)
Income (loss) from operations before provision for income tax  $376,668   $-   $-   $376,668 

 

 

                
   Period from June 7, 2025 to October 31, 2025   Period from May 1, 2025 to June 6, 2025 
   Retail and Industry Segment (Successor)   BNB Treasury Management Segment   Corporate   Total Consolidated   CEA Industry Segment (Predecessor) 
Total Revenue, net  $11,720,973   $-   $-   $11,720,973   $2,927,689 
Cost of revenue   (8,256,041)   -    -    (8,256,041)   (2,001,537)
Unrealized gain on digital asset   -    114,033,718    -    114,033,718    - 
Other income from airdrop   -    5,827,578    -    5,827,578    - 
Advertising and marketing expenses   (165,524)   -    (4,561,163)   (4,726,687)   (63,202)
Compensation expenses   (2,090,567)   (70,000)   (88,904)   (2,249,471)   (431,340)
Asset management fees   -    (1,798,357)   -    (1,798,357)   - 
Professional and contractor fees   (2,236,391)   (207,855)   (602,301)   (3,046,547)   (135,359)
Stock-based compensation   (2,342,870)   -    (2,356,327)   (4,700,457)   - 
Other segment expenses (1)   (1,407,897)   (1,280)   (15,400,013)   (16,809,190)   (275,650)
Change in fair value of warrant liabilities   -    -    206,818,087    206,818,087    - 
Interest expense and other income, net   (918,769)   -    -    (918,769)   - 
Income (loss) from operations before provision for income tax  $(5,698,346)  $117,783,804   $183,809,379  $295,894,837   $20,602 

 

             
   Six Months Ended October 31, 2024 
   Retail and Industry Segment (Predecessor)   BNB Treasury Management Segment   Corporate   Total Consolidated 
Total Revenue, net  $14,405,418   $-   $    -   $14,405,418 
Cost of revenue   (8,652,017)           -    -    (8,652,017)
Advertising and marketing expenses   (297,205)   -    -    (297,205)
Compensation expenses   (2,588,208)   -    -    (2,588,208)
Professional and contractor fees   (278,573)   -    -    (278,573)
Other segment expenses (1)   (1,348,671)   -    -    (1,348,671)
Income (loss) from operations before provision for income tax  $1,240,744   $-   $-   $1,240,744 

 

(1)Includes other selling, general, and administrative expenses such as occupancy expenses, maintenance expense, utilities, depreciation and amortization expenses. Starting in the second quarter of 2026, other segment items also include warrant issuance costs, insurance fees and advisory fees.
(2)As noted in Note 1, Nature of Operations, On June 6, 2025 (the “Closing Date”), CEA industries Inc. completed the acquisition of the Fat Panda Group of Companies (“Fat Panda”) (the “Fat Panda Acquisition”). CEA Industries Inc. has been designated as the accounting acquirer (“Successor”), and Fat Panda as the accounting predecessor (“Predecessor”). Successor refers to CEA operations post-acquisition while predecessor refers to CEA operations pre-acquisition date consistent with the Consolidated Statements of Operations.