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 ...

Company Announcement - cbdMD, Inc. has postponed the release of its financial results and conference call for the fourth quarter and fiscal year ended September 30, 2024, which was originally scheduled for December 17, 2024 [2] - The new expected date for the financial results release is after market close on December 18, 2024, with the conference call scheduled for the same day at 4:20 PM EST [2] Company Overview - cbdMD, Inc. is 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 new Full Spectrum products [3] - The product range includes CBD tinctures, gummies, topicals, capsules, bath bombs, sleep aids, and Delta 9 products, as well as veterinarian-formulated pet products under the Paw CBD brand [3]

cbdMD, Inc. To Host Conference Call to Discuss September 30, 2024 Fourth Quarter and Fiscal Year 2024 ResultsDecember 12, 2024 12:13 PM EST | Source: cbdMDCharlotte, North Carolina--(Newsfile Corp. - December 12, 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 Tuesday, December 17, 2024, to discuss the company's Se ...

. ● . cbdMD, Inc. Announces Acceptance of Compliance Plan by NYSE American August 26, 2024 4:25 PM EDT | Source: cbdMD Charlotte, North Carolina--(Newsfile Corp. - August 26, 2024) - cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBD-PA), 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 functional mushroom brand ATRx Labs, today announced that it received notice from the NYSE American LLC that it ha ...

Core Insights - cbdMD reported sequential revenue growth and positive net income for Q3 2024, achieving significant operational improvements and a reduction in operating losses [2][3][4]. Financial Performance - Net sales for Q3 2024 totaled $5.1 million, a decrease of 15% year-over-year from $6.1 million, but an increase of 18% sequentially [5]. - Direct to consumer (DTC) net sales were $3.9 million, accounting for 76% of total net sales, down from $4.9 million year-over-year but up 9% sequentially [6]. - Wholesale net sales increased to $1.2 million, a 10% increase from the previous year [6]. - Gross profit margin improved to 65% in Q3 2024 compared to 63% in Q2 2023 [7]. - The company reported a net income of approximately $0.46 million for Q3 2024, compared to a net loss of approximately $1.7 million in Q3 2023 [9]. Operational Efficiency - The operational loss decreased significantly from $1.8 million in Q3 2023 to $0.38 million in Q3 2024 [3][7]. - Non-GAAP adjusted loss from operations was approximately $0.08 million, down from $0.60 million in the same quarter last year, marking the lowest non-GAAP adjusted EBITDA loss since going public [8]. - The company achieved over $200,000 in monthly operating cost savings as of August 2024 [15]. Compliance and Business Updates - cbdMD received a notification from NYSE American regarding non-compliance with continued listing standards and submitted a compliance plan [12]. - The company terminated its former executive office lease effective August 1, 2024, which will eliminate future lease liabilities [14]. - During the quarter, 714,229 common shares were issued due to the conversion of convertible promissory notes [13]. Cash and Working Capital - As of June 30, 2024, the company had negative working capital of approximately $567,000, reduced by $3.7 million in accrued dividend payments [11]. - Cash on hand increased to approximately $2.3 million from $1.8 million at the end of September 2023 [11].

Financial Performance - Total net sales for the three months ended June 30, 2024, were $5.17 million, a decrease of $0.95 million or 16% compared to $6.12 million in the same period of 2023[113] - For the nine months ended June 30, 2024, total net sales were $14.93 million, down $3.52 million or 19.1% from $18.44 million in the same period of 2023[113] - The company reported a net loss attributable to common shareholders of $(540,763) for Q2 2024, a substantial improvement from $(2,770,904) in Q2 2023[113] Sales Channels - E-commerce sales accounted for 76.1% of total net sales in Q2 2024, down from 81.7% in Q2 2023, while wholesale sales increased to 23.9% from 18.3%[114] Profitability and Margins - The company achieved a gross profit margin of 65.8% for Q2 2024, an increase of 2.9% from 62.8% in Q2 2023[113] - Adjusted EBITDA for the three months ended June 30, 2024, was $(84,953), compared to $(608,354) for the same period in 2023, indicating an improvement in core operating results[134] Operating Costs and Expenses - Operating loss from operations improved to $(382,028) in Q2 2024, a significant reduction of $1.44 million compared to $(1,823,652) in Q2 2023[113] - Total operating expenses decreased by approximately $1.9 million or 24% for the three months ended June 30, 2024, compared to the same period in 2023, driven by reductions in staff-related expenses and advertising[120] - Year-to-date operating expenses for the nine months ending June 30, 2024, decreased by $6.1 million, reflecting management's focus on operational efficiencies[121] - Cost of sales as a percentage of net sales remained stable at 35% for both the three months ended June 30, 2024, and 2023, attributed to ongoing cost-saving initiatives[117] Cash Flow and Capital Management - The company had cash and cash equivalents of $2.3 million and negative working capital of $567,610 as of September 30, 2023[124] - The company entered into a securities purchase agreement on January 30, 2024, raising $1,250,000 in gross proceeds for working capital and general corporate purposes[126] - Management believes that quarterly cash consumption should continue to improve in subsequent quarters, despite a net cash use of $0.1 million for the three months ended June 30, 2024[128] - The company has suspended cash dividend payments and is accruing dividends on a monthly basis, with an annual rate of 8% payable to preferred shareholders[126] Strategic Initiatives - The company launched a new functional mushroom product line under the ATRx brand in December 2023, expanding its product offerings[102] - The company is focused on reducing operating costs, achieving over $200,000 in monthly savings as of August 2024 through various cost-saving initiatives[107] - The company plans to increase marketing spend in Q4 2024 to support revenue growth despite ongoing cost reductions[107] - The company is exploring international expansion opportunities, particularly in Central and South America, and has gained market share through sanitary registration approvals[110] Financial Reporting and Compliance - The value of the non-cash contingent liability was $90,363 at September 30, 2023, with no ongoing liability recorded after the final issuance of shares in January 2024[123] - The company has no undisclosed off-balance sheet arrangements that could materially affect its financial condition or results of operations[139] - The term "off-balance sheet arrangement" refers to transactions or agreements with unconsolidated entities that may involve guarantees or contingent interests[139] - The company is classified as a smaller reporting company, thus quantitative and qualitative disclosures about market risk are not applicable[140]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from __________________ to _______________ Commission file number 001-38299 cbdMD, INC. (Exact Name of Registrant as Specified in its Charter) North Carolina 47-34 ...