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• Content META

  Title	cbdMD Generates $19.1 Million in Year Over Year Reduction in Net Loss Improvement
  ID	5209800
  External ID	7402133533
  Author	Unknown
  Published Date	Dec. 18, 2024, 3:19 p.m.
  Summary	Finishes the year with a stronger cash position. Charlotte, North Carolina--(Newsfile Corp. - December 18, 2024) - cbdMD, Inc. YCBD YCBDPA, one of the nation's leading and most highly trusted and rec
  Tags	press-release
  URL	https://www.benzinga.com/pressreleases/24/12/42563855/cbdmd-generates-19-1-million-in-year-over-year-reduction-in-net-loss-improvement
  Sentiment	Negative: 0.01901    Neutral: 0.02914    Positive: 0.95185
  Relevance	0.02308

• Content Details

  Content ID	3140533
  Key	d7783de1-9e82-4fb9-abfe-3a7794816e67
  Content	Finishes the year with a stronger cash position. Charlotte, North Carolina--(Newsfile Corp. - December 18, 2024) - cbdMD, Inc. YCBD YCBDPA, one of the nation's leading and most highly trusted and recognized CBD companies, and operator of the leading CBD brands cbdMD and Paw CBD, along with its new functional mushroom brand ATRx Labs today announced our financial results for the full fiscal year ended September 30, 2024. For Fiscal 2024, we continued to make strong progress on our turnaround. The Company incurred a loss from operations of only $3.3 million, or a $19.1 million year-over-year improvement from the $22.9 million loss in the prior year. This is the second consecutive year of strong financial and operational improvements, accomplished despite revenue challenges. "We made tremendous strides in strengthening our operational foundation and moving closer to our goal of profitability," said Ronan Kennedy, CEO and CFO of cbdMD. "While the fourth quarter presented temporary revenue headwinds, for the fiscal year we successfully executed key initiatives to lower our operating costs, including the elimination and settlement of our headquarter (HQ) lease obligations, and strengthening our cash position through disciplined working capital management and outside investment. With revenues rebounding, we project Q1 fiscal 2025 revenues to approach $5 million, putting us back on track to accelerate our growth trajectory." Kennedy continued: "We are laser-focused on delivering positive non-GAAP EBITDA in fiscal 2025. Our operational advancements in 2024 have provided a more stable and scalable platform, and we've entered 2025 with a strong cash position, improved marketing metrics, and exciting new products driving consumer engagement. Notably, the launch of our Herbal Oasis functional beverage in November has been met with enthusiastic early feedback." As part of its growth strategy, the company remains committed to addressing its equity capital structure to unlock additional shareholder value and ensure compliance with NYSE American standards. Kennedy added: "2024 was a year of transformation for cbdMD. We've demonstrated our ability to execute against goals and overcome challenges, all while keeping our focus on creating long-term value for our shareholders. We are confident in our direction, and our entire team is energized to continue driving growth, innovation, and operational excellence in 2025." cbdMD enters fiscal 2025 as a leaner, more agile company, ready to build on its turnaround momentum. With a portfolio of trusted brands, a disciplined approach to financial management, and a commitment to innovation, cbdMD is well-positioned to lead in the evolving CBD and wellness markets. Highlights for Fiscal 2024 and Notable Business Updates The Company launched its brand of functional mushrooms, ATRx Labs, initially through Amazon US and subsequently launched systemwide in GNC during the spring. cbdMD expanded its successful line of D-9 products entering the fast-growing beverage category with its Mixers and Herbal Oasis Social Tonic. The Company successfully negotiated an exit to its HQ lease in August, saving approximately $1.2 million a year in fixed costs. cbdMD secured $1.25 million in net financing through $1.5 million convertible Notes during the second fiscal quarter to bolster its working capital. The Company received notice from the NYSE American that is has accepted the Company's plan of compliance. During the plan period, the Company will be subject to quarterly review to determine if it is making progress consistent with the plan. If the Company does not regain compliance with the NYSE American listing standards by December 5, 2025, or if the Company does not make sufficient progress consistent with its plan, then the NYSE American may initiate delisting proceedings. NYSE American requires that cbdMD's net book value of equity must be at least $4 million. At fiscal year end, it totaled approximately $2.0 million, which was negatively impacted by the $4.7 million of Series A Preferred accrued dividends. The results from cbdMD's double blind placebo controlled clinical trial were published in the Journal of the International Society of Sports Nutrition in June 2024 , highlighting the demonstrated reduction of pain, reduced inflammation and improved mood using a 100mg / day regimen of cbdmd's broad spectrum The results from cbdMD's double blind placebo controlled clinical study in dogs performed in conjunction with Colorado State university's veterinary program were published in Frontiers in Veterinary Science in September 2024. The study emphasized cbdMD's broad spectrum product improved mobility, gait and quality of life in dogs with osteoarthritis. Financial Highlights from our Fiscal Year 2024: Net sales totaled $19.5 million in fiscal 2024 or a decrease of 19.1% compared to $24.1 million in fiscal 2023. Our gross profit for the year was flat at 62% in fiscal 2024 compared to 62% in fiscal 2023. Our loss from operations was $3.3 million in fiscal 2024 as compared to a loss of $22.4 million in fiscal 2023. Our non-GAAP adjusted EBITDA loss from operations in fiscal 2024 was approximately $1.5 compared to our non-GAAP adjusted EBITDA from operations in fiscal 2023 of approximately $5.5. million, despite the decline in revenue. Our non-GAAP adjusted EBITDA loss for the second half of 2024 was reduced to only $0.2 million from $1.2 million in the prior year comparative period. Net loss attributable to common shareholders for fiscal 2024 was approximately $7.7 million or $1.79 per share as compared to a net loss for fiscal 2023 of approximately $26.9 million, or $13.30 per share. The improvement in fiscal 2024 was principally attributable to ongoing management's efforts on improving profitability, as well as the $13.2 million intangible impairment during 2023. At September 30, 2024, we had working capital of approximately $1.1 million and cash on hand of approximately $2.4 million (which includes $4.7 million of accrued Series A dividend payments) as compared to working capital of approximately $3.4 million and cash on hand of approximately $1.8 million (which includes $0.67 million of accrued Series A dividend payments) at September 30, 2023. We reported direct to consumer (DTC) net sales of $15.7 million or 80.4% of total net sales in fiscal 2024, a decrease of $3.9 million, or 19.9% from fiscal 2023. As of the filing date of our annual report, the majority of our Notes have been converted and the balance of the Notes totaled approximately $0.36 million. When factoring in our cash balance of $2.4 million at the end of September 30, 2024 and ongoing cash consumption rate, management believe the Company has a strong liquidity position going into calendar 2025. Pursuant to the disclosure requirements of the NYSE American Company Guide Section 610(b), cbdMD is reporting that its audited consolidated financial statements for the fiscal year ended September 30, 2024, included in its Annual Report on Form 10-K filed with the Securities and Exchange Commission on December 18, 2024, contains an audit opinion from its independent registered public accounting firm that includes an explanatory paragraph related to cbdMD's ability to continue as a going concern. This announcement does not represent any change or amendment to cbdMD's financial statements or to its Annual Report on Form 10-K for the fiscal year ended September 30, 2024. We will host a conference call at 4:20 p.m., Eastern Time, on Wednesday, December 18, 2024, to discuss our September 30, 2024, fourth quarter and full fiscal year financial results and business progress. CONFERENCE CALL DETAILS Tuesday December 17, 2024, 4:20 p.m. Eastern Time USA/Canada: 844-763-8274 International: 647-484-8814 Teleconference Replay dial in: USA/Canada: 855-669-9658 International: 412-317-0088 Replay Passcode: 5369354 Webcast/Webcast Replay link- available through January 18, 2026: https://www.gowebcasting.com/13876 About cbdMD, Inc. cbdMD, Inc. is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced, THC-free1 CBD products, including NSF Certified for Sport® products, as well as our new Full Spectrum products. Our cbdMD brand currently includes high-grade, premium CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD bath bombs, CBD sleep aids and CBD drink mixes and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products including tinctures, chews, topicals products in varying strengths, and our ATRx brand of natural functional mushroom support. To learn more about cbdMD and our comprehensive line of U.S. grown, THC-free1 CBD oil and Full Spectrum products as well as our other brands, please visit www.cbdmd.com, www.pawcbd.com, or ATRxlabs.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products. Forward-Looking Statements This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified using words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. You are urged to carefully review and consider any cautionary statements, including but not limited to expectations on our ability to continue as a going concern, increasing our revenues, continued cost reductions, potential need for additional working capital, regaining compliance with NYSE American continued listing standards, continued listing on the NYSE American, future profitability, development and sales of new products, and other disclosures, including the statements made under the heading "Risk Factors" in cbdMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended September 30, 2024 as filed with the Securities and Exchange Commission (the "SEC") on December 17, 2024, and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release. 1 THC-free is defined as below the level of detection using validated scientific analytical methods. Non-GAAP Financial Measures This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. has included adjusted loss from operations because management uses this measure to assess operating performance in order to highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. The adjusted operating loss has not been prepared in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net loss from operations as an indicator of our operating performance. Further, this non-GAAP financial measure, as presented by cbdMD, Inc., may not be comparable to similarly titled measures reported by other companies. cbdMD, Inc. has attached to this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure. cbdMD, INC. CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023 September 30, September 30, 2024 2023 Assets Cash and cash equivalents $ 2,452,553 $ 1,797,860 Accounts receivable 983,910 1,216,090 Inventory 2,365,187 4,052,972 Inventory prepaid 159,006 182,675 Prepaid sponsorship 21,754 70,061 Prepaid expenses and other current assets 406,674 750,383 Total current assets 6,389,084 8,070,041 Other assets: Property and equipment, net 454,268 716,579 Operating lease assets 85,817 3,350,865 Deposits for facilities 62,708 138,708 Intangible assets, net 2,889,580 3,219,090 Investment in other securities, noncurrent 700,000 700,000 Total other assets 4,192,373 8,125,242 Total assets $ 10,581,457 $ 16,195,283 CONSOLIDATED BALANCE SHEETS SEPTEMBER 30, 2024 AND SEPTEMBER 30, 2023 (continued) September 30, September 30, 2024 2023 Liabilities and shareholders' equity Current liabilities: Accounts payable $ 1,541,108 $ 1,906,319 Accrued expenses 632,674 632,195 Accrued dividends 4,671,000 667,000 Deferred revenue 503,254 185,246 Operating leases - current portion 98,696 1,277,089 Convertible notes, at fair value 1,171,308 Note payable - 2,492 Total current liabilities 8,618,040 4,670,341 Long term liabilities: Other long term liabilities - 9 Operating leases - long term portion - 2,403,286 Contingent liability - 90,363 Total long term liabilities - 2,493,658 Total liabilities 8,618,040 7,163,999 cbdMD, Inc. shareholders' equity: Preferred stock, authorized 50,000,000 shares, $0.001 par value, 5,000,000 and 500,000 shares issued and outstanding, respectively 5,000 5,000 Common stock, authorized 150,000,000 shares, $0.001 par value, 3,939,057 and 2,960,573 shares issued and outstanding, respectively 3,939 2,961 Additional paid in capital 184,029,565 183,387,095 Comprehensive other expense (7,189 ) - Accumulated deficit (182,067,898 ) (174,363,772 ) Total cbdMD, Inc. shareholders' equity 1,963,417 9,031,284 Total liabilities and shareholders' equity $ 10,581,457 $ 16,195,283 cbdMD, INC. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE YEARS SEPTEMBER 30, 2024 and 2023 September 30, September 30, 2024 2023 Gross Sales $ 19,922,319 $ 25,053,857 Allowances (440,152 ) (898,495 ) Total Net Sales 19,482,167 24,155,362 Cost of sales 7,486,626 9,177,703 Gross Profit 11,995,541 14,977,659 Operating expenses 15,310,951 24,246,208 Impairment of intangible assets - 13,219,000 Loss from operations (3,315,410 ) (22,487,549 ) Realized and unrealized loss on marketable and other securities, including impairments - (700,000 ) Decrease of contingent liability 74,580 185,638 Increase in fair value of convertible debt (429,789 ) - Interest (expense) income (29,507 ) 63,702 Loss before provision for income taxes (3,700,126 ) (22,938,209) Net Loss (3,700,126 ) (22,938,209 ) Preferred dividends 4,004,001 4,002,000 Net Loss available to cbdMD, Inc. common shareholders $ (7,704,127 ) $ (26,940,209 ) Net Loss per share: Basic and diluted earnings per share $ (1.79 ) $ (13.32 ) Weighted average number of shares Basic and Diluted: 4,312,546 2,022,320 cbdMD, INC. CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS FOR THE YEARS SEPTEMBER 30, 2024 and 2023 September 30, September 30, 2024 2023 Net Income (loss) $ (3,700,126 ) $ (22,938,209 ) Comprehensive Loss (3,700,126 ) (22,938,209 ) Preferred dividends (4,004,001 ) (4,002,000 ) Comprehensive Loss attributable to cbdMD, inc. common shareholders $ (7,704,127 ) $ (26,940,208 ) cbdMD, INC. CONSOLIDATED STATEMENT OF CASH FLOWS FOR THE YEARS SEPTEMBER 30, 2024 and 2023 September 30, September 30, 2024 2023 Cash flows from operating activities: Net Loss $ (3,700,126 ) $ (22,938,209 ) Adjustments to reconcile net loss to net cash used by operating activities: Stock based compensation 5,015 233,666 Restricted stock expense 11,885 109,202 Write off of prepaid assets due to termination of contractual obligation - 884,892 Inventory and materials impairment 921,314 175,499 Intangibles amortization 697,510 1,396,459 Depreciation 452,326 404,280 Impairment of intangible assets - 13,219,000 Decrease in contingent liability (74,580 ) (185,638 ) Increase in fair value of convertible debt 429,789 - Other-than-temporary impairment on other investments - 700,000 Gain on termination of operating lease 696,280 - Amortization of operating lease asset 670,621 1,126,976 Changes in operating assets and liabilities: Accounts receivable 232,180 278,482 Deposits 76,000 105,898 Inventory 766,472 27,443 Prepaid inventory 23,670 328,784 Prepaid expenses and other current assets 396,311 2,095,323 Accounts payable and accrued expenses (1,124,141) (1,290,141 ) Operating lease liability (1,151,326) (1,178,683) Deferred revenue / customer deposits 318,008 203,341 Collection on discontinued operations accounts receivable - 1,375 Cash used by operating activities (352,792 ) (4,302,051 ) Cash flows from investing activities: Proceeds from sale of other investment securities - 1,000,000 Purchase of intangible assets (100,000 ) - Purchase of property and equipment (190,015 ) (297,549 ) Cash (used) provided by investing activities (290,015 ) 702,451 Cash flows from financing activities: Proceeds from issuance of common stock 50,001 2,478,325 Note payable 1,247,499 (132,599 ) Preferred dividend distribution - (3,668,500 ) Cash used by financing activities 1,297,500 (1,322,774 ) Net decrease in cash 654,693 (4,922,374 ) Cash and cash equivalents, beginning of period 1,797,860 6,720,234 Cash and cash equivalents, end of period $ 2,452,553 $ 1,797,860 Supplemental Disclosures of Cash Flow Information: 2023 2022 Cash Payments for: Interest expense $ 74,638 $ 6,399 Non-cash financial activities: Issuance of shares for conversion of debt and accrued interest $ 515,601 $ - Issuance of share for intangible asset $ 40,725 $ - Preferred dividends accrued but not paid $ 4,004,001 $ 667,000 cbdMD, Inc. SUPPLEMENTAL FINANCIAL INFORMATION RECONCILIATION OF NON-GAAP ADJUSTED LOSS FROM OPERATIONS (unaudited) Three months Three months Twelve Months Twelve Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 GAAP loss from operations $ (316,553) $ (15,217,070) $ (3,315,410) $ (22,487,549) Adjustments: Depreciation & Amortization 287,783 667,950 1,149,836 1,800,739 Employee and director stock compensation (1) 5,881 33,263 43,688 349,245 Inventory adjustment (2) 588,160 70,000 588,160 70,000 Impairment of Goodwill and other intangible assets (3) - 13,219,000 - 13,219,000 Incremental bad debt - 45,000 - 45,000 Mergers and Acquistions and financing transaction expenses - - 125,838 - Non-cash expense incurred as a credit (4) - - 439,926 - Termination of HQ lease (696,280 ) (696,280 ) - Non-cash accelerated amortization of expense related to terminated IT contracts - - 72,101 - a-369 non-cash trade credit - 609,732 - 1,476,967 Non-GAAP adjusted loss from operations $ (131,009) $ (572,125) $ (1,592,141) $ (5,526,598) (1) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period. (2) Represents an operating expense related to inventory loss related to regulatory changes impacting labels and packaging and obsolete/expired inventory. (3) Represents non-cash impairment of the cbdMD, DCO and Technology Relief from Royalty trademarks of $13.21 million during the fourth quarter of fiscal 2023, non-cash impairment of the cbdMD trademark of $4.28 million during the first quarter of fiscal year 2022 and $56.67 million of goodwill impairment during the fiscal year ended 2022 (4) Represents non-cash expense incurred as a credit provided to GNC to replace expired product. To view the source version of this press release, please visit https://www.newsfilecorp.com/release/234173
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• Publisher

  Publisher Name	Benzinga (#1644)
  Publisher URL	https://www.benzinga.com
  Description	None
  Trust Flow Score	37
  Citation Flow Score	50

• Data Source

  Data Source Name	Quantexa News (#5)
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
  Description	Welcome to Quantexa News API — the most powerful way to aggregate, filter, and integrate global news data into your apps and models.
  Weight	10