Exhibit 99.2
CEA INDUSTRIES INC.
UNAUDITED PRO FORMA COMBINED BALANCE SHEET
APRIL 30, 2025
| Historical Balances | Pro Forma | Pro Forma | ||||||||||||||||
| CEA Industries | Fat Panda | Adjustments | Notes | Combined | ||||||||||||||
| ASSETS | ||||||||||||||||||
| Current Assets | ||||||||||||||||||
| Cash and cash equivalents | $ | 8,391,183 | $ | 2,148,606 | $ | 3,550,282 | (a) | $ | 3,047,167 | |||||||||
| (11,042,904 | ) | (a) | ||||||||||||||||
| Accounts receivable, net | 27,538 | 228,507 | - | 256,045 | ||||||||||||||
| Related party receivables, net | - | 668,301 | - | 668,301 | ||||||||||||||
| Contract assets, net | 233,274 | - | - | 233,274 | ||||||||||||||
| Inventory, net | 14,222 | 3,293,947 | - | 3,308,169 | ||||||||||||||
| Prepaid expenses and other | 1,551,415 | 119,012 | - | 1,670,427 | ||||||||||||||
| Total Current Assets | 10,217,632 | 6,458,373 | (7,492,622 | ) | 9,183,383 | |||||||||||||
| Property and equipment, net | 4,241 | 322,880 | - | 327,121 | ||||||||||||||
| Operating lease right-of-use assets | 207,370 | 1,890,013 | - | 2,097,383 | ||||||||||||||
| Long-term deposits and other | 14,747 | 372,330 | - | 387,077 | ||||||||||||||
| Intangible assets, net | 1,830 | - | 5,190,310 | (e) | 4,846,120 | |||||||||||||
| (346,020 | ) | (k) | ||||||||||||||||
| Goodwill | - | - | 2,786,772 | (f) | 2,786,772 | |||||||||||||
| TOTAL ASSETS | $ | 10,445,820 | $ | 9,043,596 | $ | 138,440 | $ | 19,627,856 | ||||||||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||||||||||||
| Current Liabilities | ||||||||||||||||||
| Accounts payable and accrued expenses | $ | 557,276 | $ | 2,360,921 | $ | 240,000 | (i) | $ | 577,349 | |||||||||
| 105,348 | (j) | |||||||||||||||||
| (2,686,196 | ) | (h) | ||||||||||||||||
| Contract liabilities | 1,752,104 | - | - | 1,752,104 | ||||||||||||||
| Current portion of operating lease liabilities | 138,622 | 528,914 | - | 667,536 | ||||||||||||||
| Royalty liabilities | - | 18,051 | - | 18,051 | ||||||||||||||
| Current portion of notes payable, net | - | - | 3,550,282 | (a) | 4,000,000 | |||||||||||||
| 449,718 | (i) | |||||||||||||||||
| Total Current Liabilities | 2,448,002 | 2,907,886 | 1,659,152 | 7,015,040 | ||||||||||||||
| Operating lease liabilities, net of current portion | 90,303 | 1,374,639 | - | 1,464,942 | ||||||||||||||
| Notes payable, net of current portion | - | - | 637,525 | (b) | 702,049 | |||||||||||||
| 64,524 | (j) | |||||||||||||||||
| Convertible notes payable | - | - | 746,338 | (c) | 746,338 | |||||||||||||
| TOTAL LIABILITIES | 2,538,305 | 4,282,525 | 3,107,539 | 9,928,369 | ||||||||||||||
| Shareholders’ Equity (Deficit) | ||||||||||||||||||
| Preferred stock | - | - | - | - | ||||||||||||||
| Common stock | 8 | 401 | - | (d) | 8 | |||||||||||||
| (401 | ) | (g) | ||||||||||||||||
| Additional paid-in capital | 49,613,117 | - | 311,386 | (d) | 49,924,503 | |||||||||||||
| Accumulated deficit | (41,705,610 | ) | - | 1,480,586 | (l) | (40,225,024 | ) | |||||||||||
| Owners’ equity | - | 4,837,746 | (4,837,746 | ) | (g) | - | ||||||||||||
| Accumulated comprehensive loss | - | (77,076 | ) | 77,076 | (g) | - | ||||||||||||
| TOTAL SHAREHOLDERS’ EQUITY | 7,907,515 | 4,761,071 | (2,969,099 | ) | 9,699,487 | |||||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 10,445,820 | $ | 9,043,596 | $ | 138,440 | $ | 19,627,856 | ||||||||||
CEA INDUSTRIES INC.
UNAUDITED PRO FORMA COMBINED STATEMENT OF OPERATIONS
YEAR ENDED
APRIL 30, 2025
| Historical Balances | Pro Forma | Pro Forma | ||||||||||||||||
| CEA Industries | Fat Panda | Adjustments | Notes | Combined | ||||||||||||||
| Revenues | $ | 3,493,396 | $ | 27,991,990 | $ | - | $ | 31,485,386 | ||||||||||
| Cost of revenues | 3,517,180 | 18,012,968 | - | 21,530,148 | ||||||||||||||
| Gross Profit | (23,784 | ) | 9,979,022 | - | 9,955,238 | |||||||||||||
| Operating Expenses | ||||||||||||||||||
| Advertising and marketing expenses | 7,182 | 622,400 | - | 629,582 | ||||||||||||||
| Product development costs | - | 248,035 | - | 248,035 | ||||||||||||||
| Selling, general and administrative expenses | 3,325,936 | 7,948,470 | 346,020 | (k) | 8,934,230 | |||||||||||||
| (2,686,196 | ) | (h) | ||||||||||||||||
| Total Operating Expenses | 3,333,118 | 8,818,905 | (2,340,176 | ) | 9,811,847 | |||||||||||||
| INCOME (LOSS) FROM OPERATIONS | (3,356,902 | ) | 1,160,117 | 2,340,176 | 143,391 | |||||||||||||
| Other income (expense) | ||||||||||||||||||
| Other income (expense) | 23,636 | (452,867 | ) | - | (429,231 | ) | ||||||||||||
| Interest expense | (94 | ) | - | (689,718 | ) | (i) | (859,684 | ) | ||||||||||
| (169,872 | ) | (j) | ||||||||||||||||
| Gain (loss) on disposal of property and equipment | (170 | ) | - | - | (170 | ) | ||||||||||||
| Total Other Income (Expense) | 23,372 | (452,867 | ) | (859,590 | ) | (1,289,085 | ) | |||||||||||
| NET INCOME (LOSS) BEFORE INCOME TAXES | (3,333,530 | ) | 707,250 | 1,480,586 | (1,145,694 | ) | ||||||||||||
| Provision for income taxes | - | (137,321 | ) | - | (137,321 | ) | ||||||||||||
| NET INCOME (LOSS) | (3,333,530 | ) | 569,929 | 1,480,586 | (1,283,015 | ) | ||||||||||||
| OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||||
| Foreign currency translation adjustment | - | (919 | ) | - | (919 | ) | ||||||||||||
| NET OTHER COMPREHENSIVE INCOME (LOSS) | (3,333,530 | ) | 569,010 | 1,480,586 | (1,283,934 | ) | ||||||||||||
| LOSS PER COMMON SHARE – BASIC AND DILUTED | $ | ) | $ | ) | ||||||||||||||
| WEIGHTED-AVERAGE NUMBER OF SHARES OUTSTANDING – BASIC AND DILUTED | ||||||||||||||||||
The following is a summary of pro forma adjustments reflected in the unaudited pro forma combined financial information based on preliminary estimates, which may change as additional information is obtained:
The adjustments included in the unaudited pro forma condensed combined balance sheet as of April 30, 2025 are as follows:
| (a) | Reflects the cash consideration for the acquisition of Fat Panda and the sources of those funds, including $3.6 million in net proceeds raised from a bridge note. | |
| (b) | Reflects the issuance of a promissory note to the sellers of Fat Panda as part of the consideration for the acquisition. | |
| (c) | Reflects the issuance of a convertible promissory note to the sellers of Fat Panda as part of the consideration for the acquisition. | |
| (d) | Reflects the issuance of 39,000 shares of CEA common stock to the sellers of Fat Panda as part of the consideration for the acquisition. | |
| (e) | Reflects the preliminary fair value of marketing-related intangibles acquired in the acquisition of Fat Panda. | |
| (f) | Reflects the preliminary goodwill recognized based on the fair value of net assets acquired in the acquisition of Fat Panda. | |
| (g) | Reflects the elimination of the remaining historical equity accounts of Fat Panda upon acquisition. | |
| (h) | Reflects the elimination of non-recurring transaction costs incurred related to the acquisition of Fat Panda. | |
| (i) | Reflects the debt discount amortization and interest accrual to interest expense on the $4M bridge loan issued to source funds for the acquisition for the year ended April 30, 2025. | |
| (j) | Reflects the debt discount amortization and interest accrual to interest expense on the promissory notes issued to the sellers of Fat Panda for the year ended April 30, 2025. | |
| (k) | Reflects the estimated amortization of preliminary marketing-related intangibles acquired in the acquisition of Fat Panda for the year ended April 30, 2025. | |
| (l) | Reflects the impact to accumulated deficit as a result of proforma adjustments to the statement of operations for the year ended April 30, 2025. |