YZi Labs accuses CEA Industries of gross mismanagement, questioning the approval of nearly $2 million in severance pay to the outgoing CEO
BlockBeats News, March 24th, YZi Labs issued a statement stating that CEA Industries' latest submitted Form 10-Q and Form 8-K revealed significant internal deficiencies in the company, including a lack of separation of duties between the CEO and the financial accounting function.
YZi Labs pointed out that the company's board approved a total of approximately $1.98 million in severance compensation to outgoing CEO David Namdar, including $375,000 in retroactive "make-up" consulting fees, future monthly consulting fees of $50,000 (until August 2026), approximately $434,000 in "cash-in-lieu" compensation, and a $900,000 lump sum payment post-departure. At the same time, the company continues to pay substantial fees to the affiliated asset management firm 10X controlled by current director Hans Thomas, having paid $2 million this quarter and a total of $3.8 million since June 2025.
YZi Labs requested that the board immediately provide public explanations on the following matters: the justification for the nearly $2 million severance compensation, the practice of equity plans not approved by shareholders being replaced with cash, the significant weaknesses remediation plan, the separation of duties policy, and the specific impact of restrictive clauses in the transition agreement.
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