cbdMD(US:YCBD) Newsfileยท2024-08-14 20:10Core 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].