Financial Data and Key Metrics Changes - For fiscal year 2025, the company reduced its operating loss by $1.2 million to approximately $2.1 million, marking the third consecutive year of improved operating results [4] - Adjusted non-GAAP EBITDA improved from a $1.7 million loss in 2024 to a $900,000 loss in 2025, driven by disciplined cost control and efficient marketing spend [4][15] - Total net sales for fiscal year 2025 were $19.1 million, a slight decrease from $19.5 million in the prior year [10] - Gross profit as a percentage of net sales increased to 63% for fiscal 2025, compared to 62% in the previous year [12] Business Line Data and Key Metrics Changes - E-commerce direct-to-consumer sales for the fourth quarter of fiscal 2025 were $3.5 million, a 6% year-over-year decrease, representing 75.1% of total net sales for that quarter [10] - The wholesale business generated $1.2 million in net sales for the fourth quarter of fiscal 2025, up 25% from $900,000 in the same quarter of fiscal 2024 [11] - The company focused on SKU rationalization and prioritizing higher velocity products across its core brands, which helped stabilize the business while maintaining strong gross margins [5] Market Data and Key Metrics Changes - The company has distribution across nine states for its new beverage brand, Oasis, and is evaluating additional markets [4] - The executive order from the White House regarding federal cannabis policy is expected to positively impact the hemp and CBD industry, potentially increasing demand for quality products [8][30] Company Strategy and Development Direction - The company is focused on scaling the Oasis brand responsibly while driving efficient, profitable direct-to-consumer growth through disciplined marketing execution [17] - The management aims to preserve margins and capital discipline while evaluating strategic opportunities aligned with regulatory strength [17] - The company believes it is well-positioned to benefit from improving regulatory clarity and is committed to maintaining a strong, flexible balance sheet [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's direction, highlighting lower operating losses and restored exchange compliance as key achievements [3][17] - The potential for significant demand increase due to Medicare reimbursement pathways for CBD products was noted, with estimates suggesting a $30 billion market opportunity [17][30] - The management emphasized the importance of navigating regulatory changes carefully while continuing to build a profitable long-term organization [30][44] Other Important Information - The company received confirmation from the NYSE American that all prior compliance deficiencies had been resolved, reflecting progress in restoring financial stability [7] - The company closed $2.25 million in additional financing, enhancing its liquidity position [5][16] Q&A Session Summary Question: What will be the key driver of growth in 2026? - Management indicated that both the core cbdMD brand and the Oasis beverage line have significant growth opportunities, with a focus on regulatory developments [20][22] Question: What caused the decline in direct-to-consumer sales? - Management explained that the decline was tied to organizational changes and SKU reductions, but noted a slight upward trend in the D2C business over the past 24 months [23][24] Question: What is the timeline for Medicare coverage of CBD products? - Management mentioned that a pilot program is expected to start on April 1st, with potential for significant demand increase for quality products [25][30] Question: How will the executive order impact the business? - Management believes the executive order could lead to a substantial increase in demand for CBD products, although the details of implementation are still being assessed [29][30] Question: How will the company prioritize growth investments in 2026? - Management indicated that for the next quarter, investment will be more weighted towards the Oasis side, with ongoing evaluations based on regulatory developments [46][48] Question: What is the current share count and any new executive compensation plans? - Management provided the current share count and mentioned that a new employee compensation plan is subject to shareholder vote in the upcoming annual meeting [49][52]

Core Insights - cbdMD, Inc. reported its financial results for the fiscal year ending September 30, 2025, highlighting operational and financial improvements for the third consecutive year [1][2]. Financial Performance - The company experienced a loss from operations of $2.1 million, an improvement of $1.2 million from a $3.3 million loss in fiscal 2024 [3][12]. - Net sales for fiscal 2025 totaled $19.1 million, a slight decrease from $19.5 million in fiscal 2024 [12]. - Gross profit remained stable at 62% for both fiscal years 2025 and 2024 [12]. - The net loss attributable to common shareholders was approximately $4.3 million, or $0.51 per share, compared to a net loss of approximately $7.7 million, or $14.29 per share in fiscal 2024 [12][18]. Balance Sheet and Capital Structure - The net book value improved from under $2.0 million to approximately $7.2 million at year-end due to balance-sheet actions, including the conversion of Series A preferred equity [3][12]. - The company raised an additional $2.25 million in gross proceeds from the sale of Series C Convertible Preferred Stock to strengthen its balance sheet [3][12]. - As of September 30, 2025, the company had $2.3 million in cash and working capital of approximately $3.4 million, compared to $2.4 million in cash and negative $2.2 million in working capital at the same time in 2024 [12][18]. Business Developments - The Herbal Oasis brand expanded into Texas through a distribution partnership, establishing distribution in multiple states including North Carolina, Florida, Alabama, and Minnesota [6]. - The company emphasized its commitment to safety, quality, and scientific rigor in its operations, having invested millions in GMP manufacturing and compliance systems [4][5]. Regulatory Environment - cbdMD expressed optimism regarding the White House's executive order on cannabinoid decriminalization, which could lead to significant investments and support for the reimbursement of full-spectrum hemp for seniors [4][5]. - The company believes that increasing regulatory clarity will encourage additional research and institutional investment in the cannabinoid category [5].

Financial Performance - The company reported operational losses of $2.1 million in fiscal year 2025 and $3.3 million in fiscal year 2024, indicating a trend of negative growth [76]. - Net sales decreased to $19.5 million in fiscal 2024 and $19.2 million in fiscal 2025, primarily due to a decline in total orders across both direct-to-consumer and wholesale divisions [79]. - The company may need to write down the value of expired inventory, negatively impacting its financial position and operational outcomes [95]. - Future impairments of intangible or fixed assets could harm the Company's financial results if fair value falls below book value [102]. Operational Challenges - The company is facing significant inflationary pressures and competitive challenges, which have negatively impacted revenue growth and marketing effectiveness [79]. - The company is experiencing increased costs and availability issues for raw materials, labor, and transportation, which could harm gross margins and customer demand [89][90]. - The reliance on third-party manufacturers and suppliers poses risks, as disruptions could adversely impact production and sales [91]. - The company must comply with various hemp production laws, and any failures by suppliers could disrupt the supply chain and manufacturing processes [94]. - The company faces risks related to system interruptions and lack of redundancy, which could adversely affect net sales and operational efficiency [98]. Regulatory Environment - The regulatory environment for CBD products is uncertain, with potential changes in federal and state laws that could materially impact revenues [104]. - The FTC has increased scrutiny on advertising claims related to CBD products, with potential penalties for unsupported health claims [111]. - The Company must secure and maintain specific regulatory approvals, and failure to do so could delay operations and negatively impact financial condition [106]. - The evolving legal landscape for cannabinoids presents compliance risks that could disrupt operations and affect market introduction [112]. Strategic Initiatives - The company plans to invest in research and development, sales and marketing, and international expansion, but may face challenges if sales do not increase sufficiently to cover operating expenses [80]. - The company aims to expand its brand awareness and product innovation to capture a larger share of the CBD market [84]. - The company recognizes the need for cost-effective customer acquisition strategies, as increasing marketing costs may hinder growth if new customers are not attracted efficiently [85]. Brand and Reputation - The company is focused on maintaining its brand reputation, as negative publicity could significantly impact sales and operational results [81][82]. - The company has experienced past security incidents that compromised customer information, which could affect its reputation and operations [97]. Stockholder and Equity Issues - The company received notifications from NYSE American on June 5, 2024, and December 31, 2024, indicating non-compliance with continued listing standards, specifically regarding stockholders' equity requirements [115]. - Section 1003(a)(i) requires stockholders' equity of $2.0 million or more if the company has reported losses in two of the last three fiscal years, while Section 1003(a)(ii) requires $4.0 million for losses in three of the last four fiscal years [116]. - The conversion of Series A Preferred Stock on May 6, 2025, eliminated $6.7 million of accrued dividends and brought the company into compliance with NYSE American's continued listing standards [116]. - The company maintained compliance with increased stockholders' equity requirements of a minimum of $6.0 million for two fiscal quarters despite ongoing annual losses [116]. - The Series B Convertible Preferred Stock ranks senior to common stock and other liabilities, affecting asset distribution in bankruptcy or liquidation scenarios [118]. - Change of Control rights associated with Series B Convertible Preferred Stock may deter potential acquisition proposals, impacting shareholder value [119]. - Holders of Series B Convertible Preferred Stock have a liquidation preference of $1.00 per share, reducing the amount available to common shareholders in liquidation events [120].

Core Viewpoint - cbdMD, Inc. has entered into securities purchase agreements with institutional investors, issuing 1,000,000 shares of Series C Convertible Preferred Stock for gross proceeds of $2.25 million, aimed at supporting working capital and strategic initiatives [1][2]. Financial Details - The net proceeds from the issuance are approximately $2.1 million, which will be used for general corporate purposes and ongoing strategic initiatives [1]. - The Series C shares carry a 10% annual dividend and can be converted into common stock at an initial price of $2.25 per share, with anti-dilution protections [1]. Company Overview - cbdMD, Inc. is a leading wellness company that offers a range of U.S.-produced, hemp-derived cannabinoid products, including CBD, CBG, and CBN [4]. - The company emphasizes quality, innovation, and transparency, distributing products online and through retail partners across the United States [4].

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - WhiteFiber, Inc. (WYFI) is up 21% at $17.35 [3] - Rising Dragon Acquisition Corp. (RDAC) is up 21% at $12.63 [3] - Julong Holding Limited (JLHL) is up 13% at $3.45 [3] - Linkhome Holdings Inc. (LHAI) is up 11% at $12.50 [3] - A SPAC III Acquisition Corp. (ASPC) is up 9% at $13.09 [3] - Intuitive Machines, Inc. (LUNR) is up 7% at $11.61 [3] - Ascent Solar Technologies, Inc. (ASTI) is up 7% at $3.31 [3] - Bitmine Immersion Technologies, Inc. (BMNR) is up 6% at $30.39 [3] - Velo3D, Inc. (VELO) is up 5% at $12.10 [3] - Gain Therapeutics, Inc. (GANX) is up 4% at $2.36 [3] Premarket Losers - cbdMD, Inc. (YCBD) is down 17% at $1.60 [4] - Mega Fortune Company Limited (MGRT) is down 16% at $7.33 [4] - Cassava Sciences, Inc. (SAVA) is down 14% at $2.43 [4] - NIKE, Inc. (NKE) is down 10% at $59.01 [4] - InMed Pharmaceuticals Inc. (INM) is down 6% at $1.21 [4] - Datacentrex, Inc. (DTCX) is down 5% at $3.23 [4] - Abundia Global Impact Group Inc (AGIG) is down 5% at $1.50 [4] - PSQ Holdings, Inc. (PSQH) is down 5% at $1.00 [4] - Paranovus Entertainment Technology Ltd. (PAVS) is down 4% at $2.34 [4] - Worksport Ltd. (WKSP) is down 4% at $2.09 [4]

Core Insights - Oracle Corp shares increased by 5.7% to $190.23 in pre-market trading following TikTok's announcement of binding agreements with investors, including Oracle, to establish a new U.S. entity [1] Company Movements - Vision Marine Technologies Inc surged 48.7% to $0.36 after pricing a best-efforts public offering [4] - Inspire Veterinary Partners Inc rose 32.2% to $0.060 after entering a consulting agreement with 622 Capital LLC [4] - Julong Holding Ltd increased by 24.3% to $3.79 [4] - WhiteFiber Inc gained 18.2% to $16.90 after announcing a colocation agreement [4] - Rising Dragon Acquisition shares jumped 17.4% to $12.20 following a Form 8-K filing [4] - Antelope Enterprise Holdings Ltd gained 12.2% to $2.21 after a previous gain of 10% [4] - Linkhome Holdings Inc rose 11.6% to $12.49 after announcing a strategic partnership with Move Inc. [4] - Canopy Growth Corp increased by 8.2% to $1.83 after a decline of 12% on the previous day [4] - Intuitive Machines Inc gained 7.8% to $11.70 after a 6% increase on Thursday [4] Declining Stocks - Zeta Network Group fell 29.4% to $0.72 after a previous jump of over 55% [4] - cbdMD Inc tumbled 19.2% to $1.56 after a 15% dip on Thursday [4] - Aimei Health Technology Co Ltd fell 15.8% to $44.00 after a significant increase of over 100% [4] - VS Media Holdings Ltd declined 13.2% to $0.090 after a 38% increase [4] - SeaStar Medical Holding Corp decreased by 11.8% to $0.26 after announcing a 1-for-10 reverse stock split [4] - Mega Fortune Co Ltd fell 10.7% to $7.87 after a decline of around 33% [4] - Ryvyl Inc dipped 10.7% to $0.21 following a previous decline of around 14% [4] - Nike Inc shares dipped 9.9% to $59.11 despite better-than-expected earnings and sales results, citing a decline in gross margins [4] - BlackBerry Ltd dipped 4.6% to $4.13 following third-quarter results [4] - Strata Critical Medical Inc fell 4.1% to $5.00 [4]

Core Insights - cbdMD, Inc. will host a conference call on December 19, 2025, at 4:20 p.m. Eastern Time to discuss its fourth quarter and fiscal year 2025 financial results and business progress [1]. Company Overview - cbdMD, Inc. is a leading and highly trusted cannabidiol (CBD) brand, offering a comprehensive line of U.S. produced THC-free CBD products and Farm Act compliant Delta 9 products [2]. - The company also features the Paw CBD brand for pet products, which includes veterinarian-formulated items, and the ATRx brand that offers functional mushroom products [2]. - Additionally, cbdMD operates Herbal Oasis, a premium THC-infused social seltzer that combines cannabinoids and nootropic mushrooms, promoting a wellness-oriented drinking experience [2].

Core Viewpoint - cbdMD Inc. has regained full compliance with NYSE American listing standards, resulting in a significant increase in its stock price by 54.64% in after-hours trading, reaching $0.98 from a previous close of $0.63 [1][2]. Group 1: Compliance and Listing Status - The NYSE American removed cbdMD's ".BC" noncompliant issuer label, indicating that deficiencies related to shareholders' equity and net loss requirements have been resolved [2]. - The company remains subject to NYSE American's continued listing monitoring procedures, emphasizing its commitment to strong financial discipline and governance [3]. Group 2: Financial Strategy and Achievements - The CEO of cbdMD highlighted that regaining the NYSE American listing is a critical achievement, reflecting efforts to strengthen the company's balance sheet through actions such as the Series A preferred share conversion in May and a capital raise in September [4]. - The company has a market capitalization of $5.58 million and has experienced an 80.94% decline in stock price year to date, with a 52-week trading range of $0.47 to $6.54 [5]. Group 3: Trading Metrics - The stock is currently experiencing long-term consolidation with medium and short-term upward movement, as indicated by Benzinga's Edge Stock Rankings [5].

Core Viewpoint - cbdMD, Inc. has regained full compliance with the NYSE American listing standards, leading to the removal of the ".BC" indicator for noncompliance effective December 8, 2025 [1][2]. Group 1: Compliance and Financial Position - The NYSE American confirmed in a letter dated December 5, 2025, that cbdMD resolved all deficiencies related to Sections 1003(a)(i) and (ii) of the NYSE American Company Guide [2]. - The CEO of cbdMD, Ronan Kennedy, emphasized that maintaining the NYSE American listing was a critical achievement, reflecting the company's efforts to strengthen its balance sheet and position for sustainable growth [3]. - Key components of cbdMD's compliance strategy included a successful Series A Preferred share conversion in May and a capital raise completed in September, showcasing investor commitment to the company's long-term vision [3]. Group 2: Future Commitment - The company will continue to be subject to NYSE American's ongoing listing monitoring procedures and is committed to maintaining strong financial discipline and governance moving forward [3]. - Additional information regarding the compliance and financial status will be available in the Company's Form 8-K to be filed with the Securities and Exchange Commission on December 8, 2025 [4]. Group 3: Company Overview - cbdMD, Inc. is recognized as a leading brand in the cannabidiol (CBD) market, offering a comprehensive line of U.S. produced CBD products and Farm Act compliant Delta 9 products [5]. - The company's product range includes veterinarian-formulated pet products under the Paw CBD brand, Herbal Oasis THC Seltzer, and ATRx brand of natural functional mushroom support [5].

Financial Results - cbdMD, Inc. announced preliminary net revenues for Q4 and fiscal year ended September 30, 2025[6] - The press release was issued on November 21, 2025, detailing certain operating data for the reported periods[6] - The financial results are not deemed "filed" under the Securities Exchange Act of 1934, ensuring liability protections[6]