The ongoing corporate governance conflict between YZi Labs and CEA Industries continues to escalate. Recently, YZi Labs issued a public statement accusing the CEA Industries board of directors of systematically restricting shareholder rights through a "poison pill" plan and amendments to the company's bylaws, thereby weakening investors' ability to participate in company decisions via written consent. YZi Labs believes that these measures are not aimed at protecting shareholder value but rather at consolidating the board's own control. In the statement, YZi Labs explicitly stated that the aforementioned governance arrangements reduce the company's transparency and the board's accountability mechanisms, damaging the legitimate rights and interests of small and medium shareholders. Based on this stance, YZi Labs has formally submitted a preliminary consent statement to the U.S. Securities and Exchange Commission (SEC), attempting to promote a board structure adjustment through compliance procedures.

YZi Labs is reviewing the response actions taken by CEA Industries, including the poison pill plan and amendments to the bylaws, which are believed to be aimed at consolidating the board's position and delaying shareholder rights. YZi Labs pointed out that the CEO had considered switching to an alternative token strategy and called for ensuring fairness in the director nomination and election process.