XML 38 R25.htm IDEA: XBRL DOCUMENT
v3.25.2

Income Taxes | 4 Months Ended
--- | ---
Apr. 30, 2025
Income Tax Disclosure [Abstract] |
Income Taxes | Note 14 – Income Taxes For financial reporting purposes, there were no provisions for U.S. federal, state or international income taxes for the four months ended April 30, 2025 and 2024 and for the years ended December 31, 2024 or 2023 due to the Company’s net operating losses (“NOLs”) in such periods and full valuation allowance recorded against the net deferred tax assets. The differences between income taxes expected at the U.S. federal statutory income tax rate and the reported provision for income taxes are summarized as follows: Schedule of U.S Federal Statutory Income Tax Rate and Reported Provision for Income Taxes
|  | 2025 |  |  | 2024 |  |  | 2024 |  |  | 2023 |
|  | April 30, |  |  | December 31, |
|  | 2025 |  |  | 2024 |  |  | 2024 |  |  | 2023 |
Income taxes computed at the federal statutory rate |  | $ | (288,000 | ) |  | $ | (245,000 | ) |  | $ | (671,000 | ) |  | $ | (611,000 | )
States taxes, net of federal benefits |  |  | (54,000 | ) |  |  | (46,000 | ) |  |  | (160,000 | ) |  |  | (115,000 | )
Permanent differences |  |  | (7,000 | ) |  |  | (38,000 | ) |  |  | (38,000 | ) |  |  | 2,000 |
True-up adjustments |  |  | (6,000 | ) |  |  | 51,000 |  |  |  | 47,000 |  |  |  | (89,000 | )
Adjustment to net operating loss |  |  | - |  |  |  | - |  |  |  | 63,000 |  |  |  | (45,000 | )
Change in valuation allowance |  |  | 355,000 |  |  |  | 278,000 |  |  |  | 759,000 |  |  |  | 858,000 |
Reported income tax (benefit) expense |  | $ | - |  |  | $ | - |  |  | $ | - |  |  | $ | - |
CEA Industries Inc. Notes to Consolidated Financial Statements April 30, 2025 (in US Dollars except share numbers) The components of the net deferred tax assets as of April 30, 2025, December 31, 2024 and 2023 are as follows: Schedule of Deferred Tax Assets
|  | 2025 |  |  | 2024 |  |  | 2023 |
|  | April 30, |  |  | December 31, |
|  | 2025 |  |  | 2024 |  |  | 2023 |
Deferred tax assets: |  |  |  |  |  |  |  |  |  |  |  |
Net operating losses |  | $ | 8,309,000 |  |  | $ | 7,980,000 |  |  | $ | 7,195,000 |
Equity compensation |  |  | 299,000 |  |  |  | 280,000 |  |  |  | 268,000 |
Other deferred tax assets |  |  | 96,000 |  |  |  | 89,000 |  |  |  | 127,000 |
Total deferred tax assets |  |  | 8,704,000 |  |  |  | 8,349,000 |  |  |  | 7,590,000 |
Deferred tax liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Other deferred tax liabilities |  |  | - |  |  |  | - |  |  |  | - |
Total deferred tax liabilities |  |  | - |  |  |  | - |  |  |  | - |
Net deferred tax assets before valuation allowance |  |  | 8,704,000 |  |  |  | 8,349,000 |  |  |  | 7,590,000 |
Less valuation allowance |  |  | (8,704,000 | ) |  |  | (8,349,000 | ) |  |  | (7,590,000 | )
Net deferred tax assets |  | $ | - |  |  | $ | - |  |  | $ | - |
As of April 30, 2025, the Company has U.S. federal and state net operating losses (“NOLs”) of approximately $33,302,000, of which $11,196,000 will expire, if not utilized, in the years 2034 through 2037. The balance of $22,106,000 NOLs generated subsequent to December 31, 2017 do not expire but may only be used against taxable income to 80%. In addition, pursuant to Section 382 of the Internal Revenue Code of 1986, as amended, use of the Company’s NOLs carryforwards may be limited in the event of cumulative changes in ownership of more than 50% within a three-year period. In addition, under Section 382 of the Internal Revenue Code of 1986, as amended (the “Code”), and corresponding provisions of state law, if a corporation undergoes an “ownership change,” which is generally defined as a greater than 50% change, by value, in its equity ownership over a three-year period, the corporation’s ability to use its pre-change net operating loss carryforwards and other pre-change tax attributes to offset its post-change income or taxes may be limited. The securities sales we completed in September 2021 and February 2022 will need to be evaluated for determination of any “ownership change” that we may have undergone during a determination period. If an ownership change has occurred, our ability to use our net operating loss carryforwards is materially limited and it would harm our future post tax results by effectively increasing our future tax obligations. The Company must assess the likelihood that its net deferred tax assets will be recovered from future taxable income, and to the extent the Company believes that recovery is not likely, the Company establishes a valuation allowance. Management’s judgment is required in determining the Company’s provision for income taxes, deferred tax assets and liabilities, and any valuation allowance recorded against the net deferred tax assets. The Company recorded a full valuation allowance as of April 30, 2025, December 31, 2024 and 2023. Based on the available evidence, the Company believes it is more likely than not that it will not be able to utilize its net deferred tax assets in the foreseeable future. The Company intends to maintain valuation allowances until sufficient evidence exists to support the reversal of such valuation allowances. The Company makes estimates and judgments about its future taxable income that are based on assumptions that are consistent with the Company’s plans. Should the actual amounts differ from the Company’s estimates, the carrying value of the Company’s deferred tax assets could be materially impacted. The Company is subject to examination by the IRS for the calendar year 2019 and thereafter. These examinations may lead to ordinary course adjustments or proposed adjustments to the Company’s taxes or the Company’s net operating losses with respect to years under examination as well as subsequent periods. The Company recognizes in its consolidated financial statements the impact of a tax position, if that position is more likely than not of being sustained on audit, based on the technical merits of the position. The Company’s policy is to recognize interest and penalties accrued on any unrecognized tax benefits as a component of operating expense. The Company does not believe there are any tax positions for which it is reasonably possible that the total amounts of unrecognized tax benefits will significantly increase or decrease within twelve months of the reporting date. There were no penalties or interest liabilities accrued as of April 30, 2025, December 31, 2024 or 2023, nor were any penalties or interest costs included in expense for the four months ended April 30, 2025 and 2024 and the years ended December 31, 2024 and 2023. CEA Industries Inc. Notes to Consolidated Financial Statements April 30, 2025 (in US Dollars except share numbers)

X
- References No definition available. + Details
Name: | us-gaap_IncomeTaxDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for income tax. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 942 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147477617/942-740-50-1 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480738/235-10-S50-1 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 944 -SubTopic 740 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478822/944-740-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12 Reference 5: http://www.xbrl.org/2003/role/exampleRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 231 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482663/740-10-55-231 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12C Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 12B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-12B Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 270 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147477891/740-270-50-1 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SAB Topic 6.I.5.Q1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 946 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147480990/946-20-50-13 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(h)(2)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480678/235-10-S99-1 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/740/tableOfContent Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 14 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-14 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-21 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 17 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482685/740-10-50-17 Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 2 -Subparagraph (SAB Topic 11.C) -Publisher FASB -URI https://asc.fasb.org/1943274/2147479360/740-10-S99-2 Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 740 -SubTopic 30 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482603/740-30-50-2 + Details
Name: | us-gaap_IncomeTaxDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration