Group 1 - cbdMD, Inc. will host a conference call on May 15, 2025, at 4:20 p.m. Eastern Time to discuss its financial results for the second quarter of fiscal year 2025, ending March 31, 2025 [1] - The company is recognized as one of the leading and most trusted CBD brands in the United States, offering a comprehensive line of THC-free CBD products and Delta 9 products compliant with the Farm Act [2][3] - cbdMD's product offerings include veterinarian-formulated pet products under the Paw CBD brand and functional mushroom products under the ATRx brand, as well as a THC-infused social seltzer called Herbal Oasis [2]

Company Overview - Herbal Oasis is a hemp-derived THC-infused social seltzer brand that aims to redefine social interactions and promote a healthier lifestyle [1][3] - The brand is a subsidiary of cbdMD, Inc., which is recognized as a leading cannabidiol (CBD) brand with a comprehensive line of THC-free products [5] Recent Developments - Herbal Oasis has entered into a distribution agreement with Carolina Premium Beverage, allowing its products to be available in Charlotte, North Carolina, and surrounding areas starting in May 2025 [1][2] - This marks the brand's expansion into its third state within two months, following successful launches in Alabama and Florida, indicating strong growth momentum in the Southeast [2] Product Offering - Oasis is designed for health-conscious consumers seeking alternatives to alcohol, combining hemp-derived THC, CBG, and functional mushrooms to create a unique beverage experience [3] - The product is marketed as an alcohol-free option that promotes clarity, balance, and social connection [4] Strategic Partnerships - The partnership with Carolina Premium Beverage is seen as a strategic move to enhance market reach and accelerate growth in the Southeast region [4][6] - Carolina Premium Beverage has a strong market presence, serving over 2,800 retailers and positioning itself among the top 1% of beer wholesalers in the nation [6][8]

Core Viewpoint - cbdMD, Inc. announced the approval of the automatic conversion of its Series A Preferred Stock into Common Stock, which is expected to enhance its capital structure and eliminate significant dividend obligations [1][2]. Group 1: Shareholder Meeting Outcomes - Shareholders approved the automatic conversion of each share of Preferred Stock into thirteen shares of Common Stock, including all accumulated and unpaid dividends as of the Mandatory Exchange Date [1]. - The conversion is projected to eliminate approximately $6.7 million in accrued dividend payments as of March 31, 2025, and $4 million in annual dividend obligations, allowing the company to reinvest this capital into growth initiatives [2]. - Seven directors were elected for a term expiring at the 2026 annual meeting, Cherry Bekaert LLP was ratified as the independent registered public accounting firm, and an amendment for a reverse stock split was approved [2]. Group 2: Company Overview - cbdMD is recognized as a leading CBD company, offering a comprehensive line of THC-free CBD products and other brands such as Paw CBD, ATRx Labs, and Herbal Oasis [3]. - The company emphasizes its commitment to producing high-quality, U.S.-grown CBD products and aims to provide wellness-focused beverages through its Herbal Oasis brand [3].

Core Insights - cbdMD has achieved a significant milestone in the UK by advancing its Novel Food dossier (RP793) to the final phase of regulatory assessment with the UK Food Standards Agency (FSA), indicating a strong commitment to safety and quality in the CBD market [1][5] - The FSA's safety assessment confirms that cbdMD's proprietary CBD isolate meets UK food safety standards, paving the way for full authorization as a Novel Food [3][6] - The UK CBD market is projected to be worth £800 million in 2025, highlighting the growth potential for compliant CBD products [7] Regulatory Progress - cbdMD initiated the regulatory process in March 2021, submitting a comprehensive dossier that includes details on ingredient identity, quality, stability, and safety data [2] - In February 2022, cbdMD became the first U.S. brand to receive dossier validation from the FSA, demonstrating proactive engagement with regulatory authorities [2] - The FSA's safety assessment, published on February 28, 2025, confirms the high purity (>97%) of cbdMD's CBD isolate and its compliance with UK food safety regulations [3][6] Market Position and Consumer Confidence - cbdMD is positioned as a trusted brand in the CBD market, with a focus on providing safe and rigorously tested products [1][5] - The company is among the few legally authorized suppliers of CBD products in the UK, which is expected to enhance consumer awareness and drive sales [5] - The CEO of cbdMD emphasized that obtaining FSA approval will lead to greater consumer confidence and an expanded market share as demand for regulated CBD products rises [7]

Financial Data and Key Metrics Changes - Total net sales for Q1 fiscal 2025 were $5.1 million, a 12% increase from the prior year and a 12% increase from Q4 [12] - Gross profit remained at a healthy 66% for Q1 fiscal 2025 [13] - SG&A expenses decreased to $3.4 million from $4.6 million in the prior year [13] - The company achieved positive net income of $15,000 compared to a loss of $977,000 in Q1 fiscal 2024 [14] - Non-GAAP adjusted EBITDA was $214,000, a significant improvement from a loss of $698,000 in the prior year [14] Business Line Data and Key Metrics Changes - E-commerce direct-to-consumer sales were $3.9 million, a 10% year-over-year decrease, representing 77% of total net sales [12] - Wholesale business generated $1.1 million in net sales, up 22% compared to $950,000 in the prior year [12] Market Data and Key Metrics Changes - The beverage market is identified as the fastest-growing category within the CBD and hemp sectors, with significant growth observed in 2024 and continuing into 2025 [50][52] Company Strategy and Development Direction - The company is focused on achieving profitability and resolving capital structure challenges, with a clear roadmap for sustainable profitability [11][19] - New product launches, particularly in the Oasis social tonic line, are expected to drive future revenue growth [9][10] - The company is committed to enhancing its customer experience and optimizing its business operations [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's financial progress and the potential for future growth, emphasizing the importance of addressing capital structure to unlock shareholder value [19][25] - The company has transformed into a leaner organization focused on long-term success despite challenges in the hemp and CBD industry [26] Other Important Information - The company is now debt-free, excluding ordinary course liabilities and accrued dividends, which allows for better cash management [17] - A proposal for a conversion ratio of one to thirteen for Series A preferred stock is aimed at improving capital structure and regaining compliance with NYSE standards [23][24] Q&A Session Summary Question: Progress on Oasis Social Tonics - Management noted that the product has been well-received, though wholesale distribution is slower than expected due to legal document iterations [33] Question: DTC Margins for Oasis - DTC margins for Oasis are tighter than other products, but the channel remains viable with potential for profitable growth [36] Question: Revenue from Oasis in December Quarter - Some revenue was booked in the December quarter, but it was limited due to the short time frame [38] Question: Total Shares Outstanding Post-Conversion - Total shares outstanding as of February post-conversion are just over 6.2 million [41] Question: Liquidity Runway - Management maintains a positive outlook on liquidity, expecting to operate a positive EBITDA business [42][43] Question: Future Working Capital Needs - Management anticipates more normal working capital relationships in upcoming quarters [44]

Core Insights - cbdMD reported a historic first quarter for fiscal year 2025, achieving $5.1 million in net sales, a 19.1% decrease year-over-year but a 12% increase sequentially from the previous quarter [6][12] - The company achieved positive net income of $15,000, marking a significant improvement of approximately $1 million from the prior year [2][7] - The first quarter also marked the first instance of positive non-GAAP Adjusted EBITDA of approximately $214,000, compared to a loss of approximately $695,000 in the previous fiscal year [6][22] Financial Highlights - Net sales for the first quarter totaled $5.1 million, down from $5.3 million in the same period last year, but up 12% from the fourth quarter of fiscal 2024 [6][12] - Gross profit remained stable at 66% for the first quarter of fiscal 2025 [6] - The loss from operations was $80,000, a significant improvement from a loss of $1.1 million in the prior year [6][22] - The net loss attributable to common shareholders was approximately $0.98 million, or a loss of $0.22 per share, compared to a net loss of approximately $2.0 million, or $0.67 per share, in the first quarter of fiscal 2024 [6][7] Business Developments - The company launched a new ready-to-drink hemp-derived beverage brand, Herbal Oasis, entering a rapidly growing market segment [6] - All remaining convertible notes were converted to common stock, resulting in the company being debt-free, excluding ordinary course liabilities and accrued dividends [6] - A preliminary proxy statement was filed for the 2025 annual meeting, scheduled for April 10, 2025, which includes a proposal to convert Series A Preferred stock and accrued dividends into common stock [4]

Financial Performance - Total net sales for the three months ended December 31, 2024, were $5.1 million, a decrease of $0.3 million or 4.9% compared to $5.4 million in the same period of 2023[129]. - Adjusted EBITDA for the three months ended December 31, 2024, was $214,817, compared to a loss of $697,988 for the same period in 2023[150]. - The GAAP loss from operations for the three months ended December 31, 2024, was $(86,272), a significant improvement from $(1,065,835) in 2023[150]. - The company has reported losses from continuing operations in four of its five most recent fiscal years[141]. Sales and Revenue Composition - E-commerce sales accounted for 77.3% of total net sales in Q1 2025, down from 82.3% in Q1 2024, while wholesale sales increased to 22.7% from 17.7%[130]. - The gross profit margin improved slightly to 66.5% in Q1 2025 from 66.2% in Q1 2024, reflecting ongoing cost-saving initiatives[129]. Operating Expenses and Cost Management - Operating expenses decreased by approximately $1.2 million or 26% year-over-year, driven by reductions in staff-related expenses, marketing, and professional services[135]. - The company anticipates some increases in marketing expenses in future quarters to positively impact revenue growth[135]. Strategic Initiatives - The company launched a new line of hemp-derived ready-to-drink beverages under the Herbal Oasis brand, targeting the fastest-growing category in the hemp industry[123]. - The company is exploring international expansion, gaining market share in Central and South America, and expanding its e-commerce business in the UK[127]. - The company is evaluating potential acquisitions to lower customer acquisition costs and enhance profitability, although no pending acquisitions are currently in progress[128]. Financial Position and Compliance - As of December 31, 2024, the company had cash and cash equivalents of approximately $2.0 million and a working capital deficit of $2.8 million[137]. - As of September 30, 2024, the company reported stockholders' equity of $1,963,417, which is below the required $2 million for continued listing on NYSE American[141]. - The company remains subject to a compliance plan accepted by NYSE American on August 20, 2024, to regain compliance by December 5, 2025[141]. - If the company fails to comply with listing standards by the deadline, it may face delisting procedures[141]. - The company has no undisclosed off-balance sheet arrangements that could materially affect its financial condition[156]. Management and Reporting - Management emphasizes the importance of non-GAAP measures like Adjusted EBITDA for evaluating core operating results[147]. - The company aims to use operating cash flows to fund day-to-day operations and stabilize its cash position[144]. - The company is seeking shareholder approval to convert $5.7 million of outstanding Series A Preferred Stock and accrued dividends into shares of Common Stock to improve stockholder equity[142].

Group 1 - cbdMD, Inc. will host a conference call on February 13, 2025, at 4:20 p.m. Eastern Time to discuss its financial results for the first quarter of fiscal year 2025, ending December 31, 2024 [1] - The company is recognized as one of the leading and most trusted CBD brands in the United States, offering a comprehensive line of THC-free CBD products [2] - cbdMD's product offerings include CBD tinctures, gummies, topicals, capsules, sleep aids, and drink products, as well as veterinarian-formulated pet products under the Paw CBD brand [2]

Core Viewpoint - cbdMD, Inc. has successfully satisfied its Senior Secured Convertible Notes, enhancing its financial position and becoming debt-free, excluding normal operational accounts payable [1][2]. Company Overview - cbdMD, Inc. is a leading and trusted CBD company known for its flagship brands cbdMD and Paw CBD, as well as its functional mushroom brand ATRx Labs [1][3]. - The company offers a comprehensive line of U.S. produced, THC-free CBD products, including tinctures, gummies, topicals, capsules, sleep aids, and drink products [3]. Financial Position - The full conversion of the Notes into common stock has strengthened the company's financial position, increased cash reserves, and provided greater flexibility for capital allocation [2]. - As of January 14, 2025, there are 6,262,833 shares of the company's common stock issued and outstanding [1].

Core Viewpoint - cbdMD, Inc. has successfully reduced the principal amount of its Senior Secured Convertible Notes to approximately $56,000 as of January 8, 2025, following conversions by certain note holders [1][2]. Group 1: Financial Performance - The company has issued a total of 609,717 shares of common stock due to conversion requests, resulting in a reduction of approximately $309,000 in principal, in addition to accrued interest [2]. - As of January 8, 2024, cbdMD has 6,152,841 shares of common stock issued and outstanding [2]. - At the end of the first fiscal quarter, the company reported cash and cash equivalents of approximately $2.1 million, indicating a strong liquidity position to start calendar 2025 [3]. Group 2: Company Overview - cbdMD is recognized as a leading and trusted cannabidiol (CBD) brand, offering a comprehensive line of U.S. produced, THC-free CBD products, including NSF Certified for Sport® products and Full Spectrum products [4]. - The company's product range includes CBD tinctures, gummies, topicals, capsules, sleep aids, and drink products, as well as veterinarian-formulated pet products under the Paw CBD brand [4].