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].

Company Compliance Issues - cbdMD received a notice from NYSE American on December 31, 2024, stating noncompliance with Section 1003(a)(i) of the NYSE American Company Guide due to stockholders' equity of $1,963,417 as of September 30, 2024, which is below the required $2 million [1] - The company reported losses from continuing operations and/or net losses in four of its five most recent fiscal years [1] - cbdMD remains subject to a compliance plan accepted by NYSE American on August 20, 2024, to address noncompliance under Section 1003(a)(ii) due to stockholders' equity under $4 million [2] - The company must regain compliance by December 5, 2025, or face delisting procedures [2] Stock Listing and Trading - The notice has no immediate impact on the listing of cbdMD's common stock (YCBD) or Series A Preferred Stock (YCBD-PA), which will continue to trade on NYSE American during the compliance plan period [3] - Both stocks will trade with the designation "BC" to indicate "below compliance" status [3] Financial Performance and Strategy - cbdMD reduced cash consumption from $4.9 million in fiscal 2023 to approximately $0.7 million in fiscal 2024, with a significant reduction in the second half of fiscal 2024 [4] - The company is considering transactions, including converting Preferred Stock and its accrued dividend ($4.67 million as of September 30, 2024) into Common Stock, to increase stockholders' equity [4] Company Overview - cbdMD is a leading CBD company with brands including cbdMD, Paw CBD, and ATRx Labs, offering a comprehensive line of THC-free CBD products and Full Spectrum products [5][6] - The company's products include CBD tinctures, gummies, topicals, capsules, sleep aids, and Farm Act compliant Delta 9 products, as well as pet products and functional mushroom support [6]

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, including NSF Certified for Sport® products and new Full Spectrum products [2] - The product range includes CBD tinctures, gummies, topicals, capsules, bath bombs, sleep aids, drink mixes, and pet products under the Paw CBD brand, as well as natural functional mushroom products under the ATRx brand [2] Leadership and Strategic Developments - T. Ronan Kennedy, the CEO and CFO of cbdMD, has been appointed to the Board of Directors, effective December 18, 2024, expanding the board to five members [7] - Under Kennedy's leadership, cbdMD has implemented a turnaround strategy that has resulted in substantial cost savings, improved profitability metrics, and established a foundation for future growth [1][8] - The company has made significant progress in optimizing its cost structure and enhancing operational fundamentals, positioning itself for long-term success as it enters 2025 with a stronger cash position and growth opportunities [8]

cbdMD Generates $19.1 Million in Year Over Year Reduction in Net Loss ImprovementFinishes the year with a stronger cash position.December 18, 2024 4:08 PM EST | Source: cbdMDCharlotte, North Carolina--(Newsfile Corp. - December 18, 2024) - cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA), one of the nation's leading and most highly trusted and recognized CBD companies, and operator of the leading CBD brands cbdMD and Paw CBD, along with its new functional mushroom brand ATRx Labs toda ...

cbdMD, Inc. to Host Conference Call to Discuss September 30, 2024 Fourth Quarter and Fiscal Year 2024 ResultsDecember 18, 2024 11:04 AM EST | Source: cbdMDCharlotte, North Carolina--(Newsfile Corp. - December 18, 2024) - cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA), one of the nation's leading, highly trusted and widely recognized CBD companies, today announces that it will host a conference call at 4:20 p.m., Eastern Time, on Wednesday, December 18, 2024, to discuss the company's ...

cbdMD, Inc. Reschedules Earnings Release and Conference CallDecember 17, 2024 4:42 PM EST | Source: cbdMDCharlotte, North Carolina--(Newsfile Corp. - December 17, 2024) - cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA), today announced that it has postponed the release of its financial results and conference call related to the fourth quarter and fiscal year ended September 30, 2024, which had previously been scheduled for December 17, 2024. cbdMD currently expects to issue its fourt ...