Core Points - cbdMD, Inc. has completed a Series B Preferred Private Placement, raising $1.7 million from institutional investors [1][2] - The company plans to use the net proceeds of $1.5 million for working capital and general corporate purposes [1][2] - The Series B Convertible Preferred Stock issued has a 10% annual dividend and is convertible into common stock at an initial price of $1.00 per share [2] Financial Position - The CEO stated that the company ended the fiscal year with over $2.2 million in cash, indicating a strengthened balance sheet [2] - The financing is aimed at bolstering shareholder equity and supporting ongoing initiatives for distribution expansion and profitability [2] Company Overview - cbdMD, Inc. is a wellness company offering a range of hemp-derived cannabinoid products, including CBD, CBG, and CBN [4] - The company emphasizes quality, innovation, and transparency, distributing products online and through retail partners across the U.S. [4]

Core Insights - cbdMD, Inc. has launched a new topical product called Inferno Freeze, which is designed for athletes and fitness enthusiasts seeking advanced recovery solutions [1][2] - The product features cutting-edge nano-technology and a full-spectrum formula, aiming to provide rapid relief and enhanced performance [2][6] Product Highlights - Inferno Freeze contains 3000mg of CBD, 500mg of CBDa, and 50mg of THC, designed for intense relief [6] - The formulation includes 4% menthol, 3% camphor, and 0.04% capsaicin for rapid cooling and soothing effects [6] - The product is marketed as a high-strength, full-spectrum topical that combines cannabinoids with both cooling and heating botanicals [2][6] Company Overview - cbdMD, Inc. is recognized as a leading and trusted brand in the CBD industry, offering a wide range of THC-free products and other wellness solutions [4] - The company operates multiple brands, including Paw CBD for pet products and ATRx for functional mushroom products, as well as Herbal Oasis, a THC-infused beverage [4]

Company Overview - cbdMD was acquired in December 2018 and had FY23 net sales of $24 million[9] - The company reduced headcount from 180 to 48[21] - The company achieved $12 million in annual run-rate SG&A cost reductions in 1Q24 compared to 1Q23[20] Market Position and Brand Strength - 95% of cbdMD customers reported product effectiveness in 2023, a 6% increase from 89% in 2022[39, 40] - cbdMD is positioned within the top 10 brands in the US market for both gummies and tinctures categories[33] - The company's products have received several awards, including the 2023 Pet Innovation Award and 2024 Wholefoods Natural Choice Awards[30] Financial Performance - In Q1 2024, revenue was $538 million, gross profit was $355 million, and total SG&A was $465 million[97] - GAAP loss from operations in Q1 2024 was $110 million[97] Market Opportunities - The US CBD market is expected to double to $10 billion by 2028[65] - IBIS World predicts the CBD industry will grow at 28% in 2023 and 2024[67] - The global functional mushroom market was valued at $3171 billion in 2023 and is expected to grow at a CAGR of 112% from 2024 to 2030[70, 71]

Core Insights - cbdMD, Inc. reported continued revenue growth and a trend towards profitability in the second fiscal quarter of 2025, with a revenue increase to $4.8 million from $4.3 million year-over-year [2][3] - The company successfully completed a capital structure reset through the conversion of Series A Preferred Stock, adding nearly $7 million to its equity base and achieving compliance with NYSE American listing standards [3][4] Financial Performance - Revenue for the second quarter reached $4.8 million, reflecting an increase of 11.6% compared to the prior year [2] - Operating loss narrowed significantly from $1.5 million to $0.48 million, indicating improved expense management and early success from growth initiatives [2][4] - Gross margin improved from 59% to 62% year-over-year during the second quarter [8] - Net loss attributable to common shareholders decreased to approximately $1.48 million, or $1.90 per share, compared to a net loss of approximately $4.0 million, or $10.84 per share, in the prior year [8][18] Capital Structure and Compliance - The Series A Preferred conversion on May 7, 2025, eliminated $6.7 million in accrued dividend liability and added equivalent equity value, positioning the company with a clean balance sheet and zero debt [3][4] - The company executed an 8:1 reverse stock split, resulting in approximately 8.9 million common shares outstanding as of May 15, 2025 [8] Strategic Developments - The Herbal Oasis beverage brand expanded distribution into Alabama, Florida, and North Carolina, tapping into a rapidly growing wellness category [4] - All four flavors of Herbal Oasis received medals at the 2025 High Spirits Awards, enhancing the brand's reputation and consumer appeal [4] Shareholder Engagement - The company prioritized preparations for its annual shareholder meeting and secured approval for the Series A Preferred conversion, which was critical for compliance with NYSE American standards [3][4]