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].

Core Insights - Cannabis stocks may experience a rally due to potential new federal regulations for hemp-derived products and a more permissive stance from President Trump on marijuana [1][4][19] Company Performance - Verano Holdings reported revenues of $203 million, a slight increase from the previous quarter but a 6% decrease year-over-year, with a net loss of $44 million attributed to impairment charges and legal contingencies [2] - Tilray Brands' stock surged 22% in October following better-than-expected fiscal first-quarter results, indicating potential for recovery in the sector [3] Market Trends - The cannabis market is projected to reach a $160 billion global market by 2032, with a 40% growth in U.S. cannabis production value last year [6] - Daily or near-daily marijuana use in the U.S. has surpassed daily drinking, reflecting increasing popularity [5] Regulatory Developments - Trump's support for Medicare coverage of CBD and potential reclassification of marijuana could attract more companies to the U.S. cannabis market [4][19] - Congress is considering updates to the 2018 Farm Bill to establish federal standards for hemp-derived products, which could enhance market legitimacy and consumer safety [13][15] Investor Sentiment - Investor optimism has surged following Trump's video promoting CBD, with significant stock price increases for companies like Tilray and Aurora Cannabis [9][11] - The cannabis industry is hopeful that federal regulations could legitimize the market and attract institutional investors [17][18] Challenges and Concerns - Despite optimism, some Republican lawmakers are pushing for stricter regulations on hemp-derived products due to safety concerns, which could impact market dynamics [24][28] - The cannabis market remains largely unregulated, leading to potential safety issues and consumer exposure to mislabeled products [15][27]

Financial Data and Key Metrics Changes - First quarter revenue was $44.6 million, a modest increase of $200,000 or 1% compared to the prior year period, driven by growth in standard listings and display advertising [12][15] - Net income rose to $2.5 million from $2 million in the prior year, primarily due to mark-to-market adjustments on warrants and higher interest income [15] - Adjusted EBITDA for the first quarter was $10.1 million, exceeding expectations due to slightly higher revenue and lower expenses [15][16] - Cash from operations generated was $1.3 million, with a cash balance of $53.3 million, marking the seventh consecutive quarter of cash growth [15][16] Business Line Data and Key Metrics Changes - Growth in standard listings increased by $400,000, while display advertising grew by $800,000, offset by a $1 million decline in revenue from featured and deal listings [12][13] - Average monthly paying clients increased by 5% year over year to 5,179, but average monthly revenue per paying client declined to $2,871 from $2,997 [13] Market Data and Key Metrics Changes - Mature markets continue to show decreasing retail prices, leading to reduced cash flow for clients and impacting their ability to purchase services [8] - Emerging markets, while showing potential, remain subscale and do not compensate for challenges in mature markets [8] Company Strategy and Development Direction - The company is focused on disciplined execution, maintaining a lean cost structure, and driving ROI-driven investments [9] - Significant progress has been made in technology and product development, including improvements in data infrastructure and automation [10] - The marketing organization has been restructured to reconnect with the brand's heritage in the cannabis culture [10] Management's Comments on Operating Environment and Future Outlook - The regulatory environment remains challenging, with over-taxation and competition from unregulated hemp impacting the cannabis industry [5][6] - Management expresses cautious optimism about potential federal legalization, noting that a significant majority of Americans support it [7] - The company expects revenues for the second quarter to be approximately $45 million, with non-GAAP adjusted EBITDA estimated at $8 million [16] Other Important Information - GAAP operating expenses totaled $42 million, reflecting a 3% increase over the prior year, driven by higher general and administrative expenses [14] - The increase in G&A expenses included $2 million of non-recurring charges related to legal expenses and severance [14] - The company has no debt on its balance sheet, allowing for strategic investments despite ongoing industry challenges [15][16] Q&A Session Summary - No specific questions or answers were provided in the content regarding the Q&A session.

As filed with the U.S. Securities and Exchange Commission on October 18, 2023 Registration No. 333- UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM S-1 REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933 FLORA GROWTH CORP. (Exact name of Registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) (Primary Standard Industrial Classification Code Number) Ontario, Canada 2833 Not Applicable (I.R.S. Employer Identification No.) 3406 SW ...