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CEA Industries (NASDAQ: CEAD) reported a net loss of $1 million for the fourth quarter of 2024, practically unchanged from its $1 million loss in the same period of 2023.

The company, which provides environmental solutions for indoor cultivation, announced its financial results for the fourth quarter and full-year 2024 on Thursday, and also disclosed the name of the previously announced acquisition target the company has been pursuing since late 2024 as part of its pivot away from its struggling cannabis equipment business.

“As we announced last month, we recently signed an agreement to acquire Fat Panda, a Winnipeg, Canada-based retailer and manufacturer of e-cigarettes, vape devices and e-liquids with a substantial market share in the midwestern province region,” Tony McDonald, chairman and CEO of CEA Industries, said in a statement.

The announcement follows a December disclosure in which CEA announced it was under a non-binding LOI to purchase “a leading specialty retailer and manufacturer.”

The company’s quarterly revenue increased to $417,000, up from $251,000 in the fourth quarter of 2023, though full-year revenue fell dramatically to $2.8 million in 2024 from $6.9 million the previous year. CEA’s revenue has been in steady decline as cannabis companies pump the brakes on spending.

In the announcement, the company emphasized its ongoing cost-cutting measures throughout 2024, reducing operating expenses by approximately 16% versus 2023 through headcount reductions, elimination of product development costs and reduced business development expenses.

The Fat Panda acquisition is somewhat of a change for CEA Industries. McDonald described the target company as having “strong retail footprint, vertically integrated operations and consistent profitability” that “align well with our strategic objectives.”

According to the December report from GMR, Fat Panda has more than 30 retail locations across a broad geography, with a deep portfolio of trademarks and intellectual property. CEA plans to use its balance sheet to further expand Fat Panda’s retail footprint and grow its manufacturing business.

Despite ongoing losses, CEA Industries remains debt-free with $9.5 million in cash and cash equivalents as of Dec. 31, down from $12.5 million at the end of 2023.

The acquisition is expected to close in the coming months, subject to government approval for license transfers and potential acquisition financing, according to company statements.

Green Market Report previously noted that CEA was considering “strategic alternatives, including a sale, merger or other potential strategic or financial transaction” as early as 2023, citing the company’s declining revenue from its traditional cannabis equipment business.