YZi Labs Demands CEA Industries Board Address Governance Issues Immediately

YZILabs Management, a significant stockholder of CEA Industries, issued the a statement in response to the company's Form 10-Q and Form 8-K, both filed on March 16, 2026. YZi said, "While YZi Labs recently addressed the Company's chronic inability to ensure timely insider ownership disclosures in a separate March 10th statement, these newest SEC filings document an even more alarming reality. The filings lay bare a staggering breakdown in basic public company governance, internal controls, and related-party oversight. They also raise serious questions about whether Company communications and agreements, taken together, were structured to manage a live control contest and influence stockholder outcomes rather than simply address ordinary business needs...These issues are not isolated. Taken together, the Company's recent disclosures point to a broader pattern of governance failures, including weak internal controls, opaque related-party transactions, and a lack of independent oversight of key decisions affecting stockholder value. At minimum, they also raise serious questions about whether stockholders received complete, balanced, and plain-English disclosure regarding the practical effect of the Transition Agreement after the filing of YZi Labs' preliminary consent statement and the pending consent solictiation...YZi Labs Calls on the Board to Immediately Address the Following Demands: Justify the Exit Package and 10X Related-Party Economics: Provide an immediate, public justification for how a ~$1.98less than exit package aligns with stockholder value, especially given the disclosed material weaknesses. The Board must also explain why it is substituting unapproved equity with floating cash payouts rather than seeking proper stockholder approval. Provide a Dated Remediation Plan: Publish a formal, dated remediation plan for the disclosed material weaknesses, explicitly identifying the operational owners, concrete milestones, and a strict timeline for resolution. Institute a Formal Segregation of Duties: Institute a formal segregation of duties policy and reporting structure to ensure Principal Financial Officer responsibilities are properly separated and independently controlled. File a Plain-English Reconciliation: File an amended disclosure or immediate public clarification providing a plain-English reconciliation table explaining the 17,648-share warrant exercise discrepancy found in the Form 10-Q. Disclose the Scope and Findings of the Independent Review: If the Board has already conducted an 'independent review' of related-party arrangements, it should disclose who conducted that review, what was reviewed, what conclusions were reached, and what remedial actions, if any, were implemented. Disclose the Board's Process and Purpose: Publish the Board materials, process summary, and rationale supporting the Transition Agreement, including whether the March 13, 2026 request for record date, stockholder activism risk, or governance-control considerations were discussed in connection with the approval of the agreement. Disclose the Full Practical Scope of the Restrictive Covenants: Provide stockholders with a plain-English explanation of how the Transition Agreement's restrictive covenants affect interactions with current or prospective stockholders, governance processes, and any third parties involved in the ongoing control contest. Stockholders have financed this Company; they should not be forced to finance its governance failures. YZi Labs will continue to take all necessary steps to hold the BNC Board accountable to the highest standards of public company oversight."