Financial Data and Key Metrics Changes - For fiscal year 2025, the company reported total net sales of $19.1 million, a decrease from $19.5 million in the prior year, representing a 2% decline [16] - The operating loss for fiscal 2025 was approximately $2.1 million, improved from a loss of $3.3 million in 2024, marking the third consecutive year of reduced operating losses [6][23] - Adjusted non-GAAP EBITDA improved from a loss of $1.7 million in 2024 to a loss of $900,000 in 2025, driven by cost control and efficient marketing [6][25] - Gross profit margin for the fourth quarter of fiscal 2025 was 59%, up from 54% in the prior year, while the full fiscal year gross margin was 63% compared to 62% in 2024 [21] 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% decrease year-over-year, and represented 75.1% of total net sales for that quarter [16][17] - The wholesale business generated $1.2 million in net sales for the fourth quarter of fiscal 2025, a 25% increase from $900,000 in the same quarter of fiscal 2024 [19] - For the fiscal year, wholesale sales increased from $3.8 million in 2024 to $4.5 million in 2025 [20] Market Data and Key Metrics Changes - Distribution for the new beverage brand, Oasis, expanded to nine states, with improving case sell-through and growing distributor engagement [7] - The company is positioned in the functional alcohol alternative beverage segment, which is experiencing rapid growth due to changing consumer preferences [7] Company Strategy and Development Direction - The company is focused on scaling the Oasis brand responsibly while driving profitable growth through disciplined marketing execution [29] - A significant emphasis is placed on maintaining a strong balance sheet and capital discipline while evaluating strategic opportunities [29] - The company aims to capitalize on evolving regulatory environments and consumer demand for quality CBD products [14][30] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's improved financial position and the potential for significant demand growth due to recent regulatory changes [12][30] - The executive order from the White House is seen as a positive signal for the hemp and CBD industry, potentially leading to increased consumer access and reimbursement pathways [12][13] - The company believes it is well-positioned to benefit from regulatory clarity and is focused on maintaining compliance and quality [14] Other Important Information - The company successfully eliminated over $7 million in annual accrued preferred dividend obligations, significantly improving working capital [9][27] - As of September 30, 2025, the company had cash and cash equivalents of approximately $2.2 million and working capital of approximately $3.3 million, a significant improvement from the previous year [26][27] 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 brand have significant growth opportunities, with a focus on the beverage side due to market visibility [34][35] Question: Can you explain the decline in direct-to-consumer sales? - Management noted that the decline is partly due to SKU rationalization and organizational changes, but overall trends are showing slight improvement [36][37] 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 growth in the coming years [38][39] 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, estimating a potential $30 billion market opportunity [44][46] Question: How will the company prioritize growth investments in 2026? - Management indicated that the focus for the next quarter will lean more towards the Oasis brand, with ongoing evaluations based on regulatory developments [65][66]