Financial Data and Key Metrics Changes - For fiscal year 2025, the company reduced its operating loss by $1.2 million to approximately $2.1 million, marking the third consecutive year of improved operating results [4] - Adjusted non-GAAP EBITDA improved from a $1.7 million loss in 2024 to a $900,000 loss in 2025, driven by disciplined cost control and efficient marketing spend [4][15] - Total net sales for fiscal year 2025 were $19.1 million, a slight decrease from $19.5 million in the prior year [10] - Gross profit as a percentage of net sales increased to 63% for fiscal 2025, compared to 62% in the previous year [12] 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% year-over-year decrease, representing 75.1% of total net sales for that quarter [10] - The wholesale business generated $1.2 million in net sales for the fourth quarter of fiscal 2025, up 25% from $900,000 in the same quarter of fiscal 2024 [11] - The company focused on SKU rationalization and prioritizing higher velocity products across its core brands, which helped stabilize the business while maintaining strong gross margins [5] Market Data and Key Metrics Changes - The company has distribution across nine states for its new beverage brand, Oasis, and is evaluating additional markets [4] - The executive order from the White House regarding federal cannabis policy is expected to positively impact the hemp and CBD industry, potentially increasing demand for quality products [8][30] Company Strategy and Development Direction - The company is focused on scaling the Oasis brand responsibly while driving efficient, profitable direct-to-consumer growth through disciplined marketing execution [17] - The management aims to preserve margins and capital discipline while evaluating strategic opportunities aligned with regulatory strength [17] - The company believes it is well-positioned to benefit from improving regulatory clarity and is committed to maintaining a strong, flexible balance sheet [9][16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's direction, highlighting lower operating losses and restored exchange compliance as key achievements [3][17] - The potential for significant demand increase due to Medicare reimbursement pathways for CBD products was noted, with estimates suggesting a $30 billion market opportunity [17][30] - The management emphasized the importance of navigating regulatory changes carefully while continuing to build a profitable long-term organization [30][44] Other Important Information - The company received confirmation from the NYSE American that all prior compliance deficiencies had been resolved, reflecting progress in restoring financial stability [7] - The company closed $2.25 million in additional financing, enhancing its liquidity position [5][16] 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 line have significant growth opportunities, with a focus on regulatory developments [20][22] Question: What caused the decline in direct-to-consumer sales? - Management explained that the decline was tied to organizational changes and SKU reductions, but noted a slight upward trend in the D2C business over the past 24 months [23][24] 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 increase for quality products [25][30] 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, although the details of implementation are still being assessed [29][30] Question: How will the company prioritize growth investments in 2026? - Management indicated that for the next quarter, investment will be more weighted towards the Oasis side, with ongoing evaluations based on regulatory developments [46][48] Question: What is the current share count and any new executive compensation plans? - Management provided the current share count and mentioned that a new employee compensation plan is subject to shareholder vote in the upcoming annual meeting [49][52]