YZi Labs accuses CEA Industries of governance failure, CEO resigns approved nearly $2 million compensation

In response to the 10-Q and 8-K filings submitted by Nasdaq listed CEA Industries (BNC) on March 16, 2026, YZi Labs has issued a statement accusing the company of systemic failures in corporate governance, internal controls, and related party transaction regulation, and condemning the provision of nearly $2 million in "golden parachute" compensation to outgoing CEO David Namdar. The statement pointed out that BNC has significant internal control deficiencies disclosed in the documents, including the failure to separate the responsibilities of the CEO and financial officer, insufficient financial information verification mechanisms, and other issues, which affect the accuracy of key data such as income, tax, and equity incentives. YZi Labs calls on the board of directors to make public statements on the reasonableness of severance compensation, internal control improvement plans, and transparency of related party transactions, otherwise further action will be taken to hold them accountable.