Latest news with #BillMorachnick
The Market Online
27-05-2025
- Business
- The Market Online
Charlotte's Web unveils Brightside – precision -formulated approach to hemp-derived THC
Charlotte's Web (TSX:CWEB) has launched of Brightside, a new line of low-dose THC gummies Each gummy is crafted in cGMP-certified facilities and powered by TiME INFUSION rapid onset technology, delivering effects in just five to 15 minutes Each gummy is dosed to provide a balanced, elevated experience without overwhelming effects, making Brightside an ideal entry point for THC-curious consumers Charlotte's Web stock (TSX:CWEB) last traded at $0.13 Charlotte's Web (TSX:CWEB), a pioneer in hemp-derived wellness, has announced the launch of Brightside, a new line of low-dose THC gummies designed to support daily rituals with purpose and precision. This innovative product line marks a bold step into the evolving THC wellness space, offering consumers a mindful, measured approach to cannabis. Each gummy is crafted in cGMP-certified facilities and powered by TiME INFUSION rapid onset technology, delivering effects in just five to 15 minutes—dramatically faster than traditional edibles. The Brightside lineup includes three targeted formulations: Rest and relax : A microdose of THC paired with CBD helps melt away tension and promote calm—ideal for unwinding without the hangover. : A microdose of THC paired with CBD helps melt away tension and promote calm—ideal for unwinding without the hangover. Focus and flow : Designed to sharpen the mind and eliminate distractions, this blend of THC, CBD, and CBG supports productivity and creativity. : Designed to sharpen the mind and eliminate distractions, this blend of THC, CBD, and CBG supports productivity and creativity. Relieve and ease: A soothing mix of THC, CBD, CBC, and CBG targets soreness and everyday aches, helping users get back to what they love. Each gummy is dosed to provide a balanced, elevated experience without overwhelming effects, making Brightside an ideal entry point for THC-curious consumers and wellness enthusiasts alike. 'Brightside is for anyone who's ever wondered if hemp THC could fit into their wellness routine—but didn't know where to start. Brightside represents our strategic response to growing consumer demand for precision wellness solutions that integrate THC,' Bill Morachnick, CEO of Charlotte's Web CEO said in a news release. 'We've leveraged advanced delivery technology and thoughtful formulations to create a product that's not only fast-acting and consistent, but also rooted in our commitment to safety, transparency, and evidence-based wellness. It's a smarter way to explore THC—designed for those who want to feel better with controlled experiences.' About Charlotte's Web Holdings Charlotte's Web specializes in wellness products made from hemp extracts including CBD and CBN. The company is the official CBD provider of Major League Baseball and the Premier Lacrosse League. Charlotte's Web stock (TSX:CWEB) last traded at $0.13 and though it is up 4.00 per cent since the year began, it has lost 45.83 per cent since this time last year. Join the discussion: Find out what everybody's saying about this cannabis stock's autism drug candidate on the Charlotte's Web Holdings Inc. Bullboard and check out the rest of Stockhouse's stock forums and message boards. The material provided in this article is for information only and should not be treated as investment advice. For full disclaimer information, please click here.
Cision Canada
27-05-2025
- Business
- Cision Canada
Charlotte's Web™ Unveiling Brightside™ Precision-Formulated Approach to Hemp-Derived THC at Benzinga Conference
Brightside speaks to the health-conscious consumer—those curious about THC or seeking a more measured, intentional experience. Powered by TiME INFUSION ® rapid onset technology, effects begin in just 5–15 minutes—significantly faster than traditional edibles. Each gummy features a micro-dose of hemp-based THC, paired with a purposeful blend of CBD, CBC, and CBG for a balanced, elevated experience. The initial launch gummies will include: Rest & Relax: Your hangover-proof way to unwind and vibe. A microdose of THC + CBD melts away tension so you can enjoy the moment—no stress, no regrets. Focus & Flow: In just five minutes, one gummy flips the switch to full-focus mode—no lag, no distractions. With THC, CBD, and CBG, it sharpens your mind so you can power through anything from chores to creative bursts. Relieve & Ease: Snap, crackle, pop? Not anymore - this fast-acting gummy soothes soreness and mystery aches. Packed with CBD, THC, CBC, and CBG, it helps ease tension and gets you back to doing what you love. " Brightside is for anyone who's ever wondered if hemp THC could fit into their wellness routine—but didn't know where to start. Brightside represents our strategic response to growing consumer demand for precision wellness solutions that integrate THC," said Bill Morachnick, CEO of Charlotte's Web. " We've leveraged advanced delivery technology and thoughtful formulations to create a product that's not only fast-acting and consistent, but also rooted in our commitment to safety, transparency, and evidence-based wellness. It's a smarter way to explore THC—designed for those who want to feel better with controlled experiences." The launch of Brightside comes at a pivotal moment for the hemp industry as consumer demand for low-dose THC edibles continues to surge. This momentum aligns with Mr. Morachnick's participation in the upcoming panel at the Benzinga Cannabis Capital Conference on June 10th, titled " The Hemp Industry Divide: Quick Cash vs. Sustainable Growth." The panel will explore the critical choices facing brands and investors as the market matures, highlighting the importance of innovation grounded in trust, science, and long-term vision—principles that are core to the Brightside launch. To learn more about the Benzinga conference or to attend the panel in person, please visit the Benzinga Cannabis Capital Conference website. To learn more about Brightside, please visit Subscribe to Charlotte's Web investor news. About Brightside Hemp-Derived THC Gummies Brightside is a new line of fast-acting hemp-derived THC gummies from Charlotte's Web, designed to elevate your wellness journey with precision and care. Featuring three unique formulations—Relieve & Ease, Rest & Relax, and Focus & Flow—Brightside gummies combine micro- to moderate doses of THC with synergistic cannabinoids, offering targeted benefits in just 5-15 minutes. Brightside embodies a commitment to innovation and wellness, empowering individuals to enhance their daily experiences with curated cannabinoid formulations. Crafted for both the THC-curious and seasoned users, these gummies are made with US-grown hemp and are compliant with the 2018 Farm Bill. All products are marketed as dietary supplements and are not intended for sale to persons under the age of 21. About Charlotte's Web Holdings, Inc. Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness innovation company and a market leader in hemp extract wellness that includes Charlotte's Web whole-plant full-spectrum CBD extracts as well as broad-spectrum CBD and cannabinoid isolates. The Company's hemp extracts have naturally occurring botanical compounds including cannabidiol ("CBD"), CBN, CBC, CBG, THC, terpenes, flavonoids, and other beneficial compounds. Charlotte's Web product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, calming, exercise recovery, immunity), CBN gummies, hemp-derived THC microdose gummies, functional mushroom gummies, CBD capsules, CBD topical creams, and lotions, as well as CBD pet products for dogs. Through its substantially vertically integrated business model, Charlotte's Web maintains stringent control over product quality and consistency with analytic testing from soil to shelf for quality assurance. Charlotte's Web products are distributed to retailers and healthcare practitioners throughout the U.S.A. and are available online through the Company's website at Forward-Looking Information Certain information provided herein constitutes forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as "may", "will", "should", "could", "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements are not guarantees of future performance, and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on certain assumptions and analysis by management of the Company in light of its experience and perception of historical trends, current conditions, expected future development, and other factors that it believes are appropriate and reasonable. The material factors and assumptions used to develop the forward-looking statements herein include, but are not limited to: regulatory regime changes; anticipated product development and sales; the success of sales and marketing activities; product development and production expectations; outcomes from R&D activities; the Company's ability to deal with adverse growing conditions in a timely and cost-effective manner; the availability of qualified and cost-effective human resources; compliance with contractual and regulatory obligations and requirements; availability of adequate liquidity and capital to support operations and business plans; and expectations around consumer product demand. In addition, the forward-looking statements are subject to risks and uncertainties pertaining to, among other things: supply and distribution chains; the market for the Company's products; revenue fluctuations; regulatory changes; loss of customers and retail partners; retention and availability of talent; competing products; share price volatility; loss of proprietary information; product acceptance; internet and system infrastructure functionality; information technology security; available capital to fund operations and business plans; crop risk; economic and political considerations; and including but not limited to those risks and uncertainties discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ending December 31, 2024, and other risk factors contained in other filings with the Securities and Exchange Commission available on and filings with Canadian securities regulatory authorities available at The impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty, as these are interdependent, and the Company's future course of action depends on management's assessment of all information available at the relevant time. Any forward-looking statement in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable law, the Company assumes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. All forward-looking statements, whether written or oral, attributable to the Company or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements.
Yahoo
27-05-2025
- Business
- Yahoo
Charlotte's Web™ Unveiling Brightside™ Precision-Formulated Approach to Hemp-Derived THC at Benzinga Conference
Science Meets Micro-dosed, Hemp-based THC Self-Care without the Wait LOUISVILLE, Colo., May 27, 2025 /CNW/ - (TSX: CWEB) (OTCQX: CWBHF), From a legacy leader in hemp wellness, Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company") is thrilled to introduce Brightside™—a new line of low-dose THC gummies created to elevate your daily rituals. Designed for relaxation, focus, and recovery, Brightside by Charlotte's Web is built on a foundation of trust, quality, and purpose synonymous with the brand. Powered by cGMP excellence and B-Corp values, this isn't just a product launch—it's a movement toward mindful, empowered THC wellness. Brightside speaks to the health-conscious consumer—those curious about THC or seeking a more measured, intentional experience. Powered by TiME INFUSION® rapid onset technology, effects begin in just 5–15 minutes—significantly faster than traditional edibles. Each gummy features a micro-dose of hemp-based THC, paired with a purposeful blend of CBD, CBC, and CBG for a balanced, elevated experience. The initial launch gummies will include: Rest & Relax: Your hangover-proof way to unwind and vibe. A microdose of THC + CBD melts away tension so you can enjoy the moment—no stress, no regrets. Focus & Flow: In just five minutes, one gummy flips the switch to full-focus mode—no lag, no distractions. With THC, CBD, and CBG, it sharpens your mind so you can power through anything from chores to creative bursts. Relieve & Ease: Snap, crackle, pop? Not anymore - this fast-acting gummy soothes soreness and mystery aches. Packed with CBD, THC, CBC, and CBG, it helps ease tension and gets you back to doing what you love. "Brightside is for anyone who's ever wondered if hemp THC could fit into their wellness routine—but didn't know where to start. Brightside represents our strategic response to growing consumer demand for precision wellness solutions that integrate THC," said Bill Morachnick, CEO of Charlotte's Web. "We've leveraged advanced delivery technology and thoughtful formulations to create a product that's not only fast-acting and consistent, but also rooted in our commitment to safety, transparency, and evidence-based wellness. It's a smarter way to explore THC—designed for those who want to feel better with controlled experiences." The launch of Brightside comes at a pivotal moment for the hemp industry as consumer demand for low-dose THC edibles continues to surge. This momentum aligns with Mr. Morachnick's participation in the upcoming panel at the Benzinga Cannabis Capital Conference on June 10th, titled "The Hemp Industry Divide: Quick Cash vs. Sustainable Growth." The panel will explore the critical choices facing brands and investors as the market matures, highlighting the importance of innovation grounded in trust, science, and long-term vision—principles that are core to the Brightside launch. To learn more about the Benzinga conference or to attend the panel in person, please visit the Benzinga Cannabis Capital Conference website. To learn more about Brightside, please visit Subscribe to Charlotte's Web investor news. About Brightside Hemp-Derived THC Gummies Brightside is a new line of fast-acting hemp-derived THC gummies from Charlotte's Web, designed to elevate your wellness journey with precision and care. Featuring three unique formulations—Relieve & Ease, Rest & Relax, and Focus & Flow—Brightside gummies combine micro- to moderate doses of THC with synergistic cannabinoids, offering targeted benefits in just 5-15 minutes. Brightside embodies a commitment to innovation and wellness, empowering individuals to enhance their daily experiences with curated cannabinoid formulations. Crafted for both the THC-curious and seasoned users, these gummies are made with US-grown hemp and are compliant with the 2018 Farm Bill. All products are marketed as dietary supplements and are not intended for sale to persons under the age of 21. About Charlotte's Web Holdings, Inc. Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness innovation company and a market leader in hemp extract wellness that includes Charlotte's Web whole-plant full-spectrum CBD extracts as well as broad-spectrum CBD and cannabinoid isolates. The Company's hemp extracts have naturally occurring botanical compounds including cannabidiol ("CBD"), CBN, CBC, CBG, THC, terpenes, flavonoids, and other beneficial compounds. Charlotte's Web product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, calming, exercise recovery, immunity), CBN gummies, hemp-derived THC microdose gummies, functional mushroom gummies, CBD capsules, CBD topical creams, and lotions, as well as CBD pet products for dogs. Through its substantially vertically integrated business model, Charlotte's Web maintains stringent control over product quality and consistency with analytic testing from soil to shelf for quality assurance. Charlotte's Web products are distributed to retailers and healthcare practitioners throughout the U.S.A. and are available online through the Company's website at Forward-Looking Information Certain information provided herein constitutes forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as "may", "will", "should", "could", "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements are not guarantees of future performance, and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on certain assumptions and analysis by management of the Company in light of its experience and perception of historical trends, current conditions, expected future development, and other factors that it believes are appropriate and reasonable. The material factors and assumptions used to develop the forward-looking statements herein include, but are not limited to: regulatory regime changes; anticipated product development and sales; the success of sales and marketing activities; product development and production expectations; outcomes from R&D activities; the Company's ability to deal with adverse growing conditions in a timely and cost-effective manner; the availability of qualified and cost-effective human resources; compliance with contractual and regulatory obligations and requirements; availability of adequate liquidity and capital to support operations and business plans; and expectations around consumer product demand. In addition, the forward-looking statements are subject to risks and uncertainties pertaining to, among other things: supply and distribution chains; the market for the Company's products; revenue fluctuations; regulatory changes; loss of customers and retail partners; retention and availability of talent; competing products; share price volatility; loss of proprietary information; product acceptance; internet and system infrastructure functionality; information technology security; available capital to fund operations and business plans; crop risk; economic and political considerations; and including but not limited to those risks and uncertainties discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ending December 31, 2024, and other risk factors contained in other filings with the Securities and Exchange Commission available on and filings with Canadian securities regulatory authorities available at The impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty, as these are interdependent, and the Company's future course of action depends on management's assessment of all information available at the relevant time. Any forward-looking statement in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable law, the Company assumes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. All forward-looking statements, whether written or oral, attributable to the Company or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements. View original content to download multimedia: SOURCE Charlotte's Web Holdings, Inc. View original content to download multimedia:
Cision Canada
14-05-2025
- Business
- Cision Canada
Charlotte's Web Reports Year-Over-Year Growth For Q1 2025
Early proof points confirm transformation strategy traction LOUISVILLE, Colo., May 14, 2025 /CNW/ - (TSX: CWEB) (OTCQX: CWBHF), Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), a botanical wellness innovation company, today announced results for the quarter ended March 31, 2025, reporting its first year-over-year revenue increase in more than three years, building on the sequential quarterly growth trend achieved in 2024. "Following three sequential quarters of improvement in 2024, Q1 delivered our first year-over-year revenue growth since 2021 – validating the transformation we initiated 18 months ago," said Bill Morachnick, Chief Executive Officer. "Our upgraded e-commerce platform is converting more visitors, and new digital storefronts on Amazon, TikTok Shop, and Faire are widening our reach. An upcoming nationwide rollout with Whole Foods Market will strengthen our retail footprint. Operationally, we commenced initial in–house gummy production and, as part of our disciplined cost agenda, we mutually concluded our promotional rights agreement with MLB and associated costs. Coupled with robust innovation – including cannabinoid isolates and our new functional mushroom gummy line – we believe these initiatives position the Company to deliver top and bottom-line growth for 2025 and beyond." Erika Lind, Chief Financial Officer, added, "Our reengineered cost structure is now flowing through the P&L. Building on the positive traction from the prior quarters, we are structuring for further improvements in cost efficiency and cash flow. As a part of this effort, we have concluded some high-cost promotional sports agreements, thereby eliminating sizeable future cash outlays of more than $18 million over the next three years. This supports near-term cash flow and preserves long-term cash for further investment in innovation. Combined with our transitioning to in-house manufacturing and disciplined SG&A control, we anticipate further improvements to cash flow in 2025." First Quarter Business Review Expansion of Mushroom Wellness Gummy Innovations Following the successful Q4 2024 launch of its functional mushroom gummies targeting focus, stress, and energy, Charlotte's Web will continue expanding its botanical wellness portfolio in 2025. The Company's strategic diversification beyond CBD is gaining market traction with mushroom wellness products now available through multiple distribution channels, including and the Company's direct-to-consumer platform. E-Commerce Growth and Omnichannel Expansion Building on the sequential gains recorded in 2024, Charlotte's Web's digital channels delivered year-over-year growth in Q1 2025. Order volume growth, stabilized average order values, new subscriber increases, and lower churn rates drove meaningful digital revenue growth and underscored brand loyalty. This performance reflects the past year's technology and go-to-market enhancements: a unified brand architecture, an expanded product portfolio, data-driven segmentation, an upgraded e-commerce stack, and improved engagement tools such as SMS outreach and an influencer network that now reaches more than one million consumers. The Company has widened its omnichannel footprint. added Charlotte's Web's new mushroom wellness gummies during the quarter, while strategic launches on Amazon, TikTok Shop, and Faire have dramatically broadened online reach. With additional categories and channels slated for launch in the coming quarters, the Company is well-positioned to meet consumers wherever they shop, diversifying revenue streams, and capturing incremental market share through improved digital discoverability. Whole Foods Market Retail Distribution Launch In a significant advancement of its retail expansion, the Company achieved a major milestone finalizing an agreement with Whole Foods Market to roll out products to more than 400 store locations nationwide. As part of this partnership, three isolate topical products will be available on shelves starting June 2025. This launch marks a significant step forward in making botanical wellness solutions more accessible to health-conscious consumers seeking trusted, plant-based alternatives. Operational Efficiencies and Cost Management Expense reductions initiated in 2024 continued to benefit operating performance, with year-over-year operating costs down 24.2%. Strengthening operations, Charlotte's Web began preliminary in-house commercial production of gummies in Q2 2025, supporting gross margins and speed-to-market for new products. This production shift will enable the rapid development of new gummy blends. "With successful expansion into new product categories, improving cash flow metrics, and enhanced operational efficiencies, Charlotte's Web has a good start to 2025," added Mr. Morachnick. "Our disciplined execution of strategic initiatives – from platform expansion to manufacturing optimization – positions us to build on this throughout 2025 and beyond, delivering value for shareholders and continued innovation for consumers." DeFloria Milestone In the first quarter, DeFloria, Inc. – a joint entity established between Charlotte's Web and Ajna BioSciences, with British American Tobacco as lead investor – received U.S. Food and Drug Administration (FDA) clearance to initiate Phase 2 clinical trials for its botanical pharmaceutical candidate, AJA001 Oral Solution, intended to treat irritability associated with autism spectrum disorder ("ASD"). AJA001 is formulated using Charlotte's Web proprietary full-spectrum CBD extract derived from its patented cultivars. The FDA's acceptance of DeFloria's IND for AJA001 marks a significant milestone. In addition, Charlotte's Web holds manufacturing rights for commercial supply when the drug is ultimately approved by the FDA, representing a potential opportunity that could be transformative for Charlotte's Web over time. On June 9, 2025, Charlotte's Web and Ajna BioSciences will host an executive panel session at the Benzinga Cannabis Capital Conference in Chicago. As part of the panel discussion, Charlotte's Web will showcase its partnership with DeFloria and AJA001's clinical progress and therapeutic potential. For attendance information, contact [email protected]. Quarterly revenue trend: Consolidated net revenue for the first quarter ended March 31, 2025, was $12.3 million, a year-over-year increase of 1.1% compared to $12.1 million in the first quarter of 2024. Propelled by the continued performance of the Company's upgraded e-commerce platform, this represents the first period of year-over-year growth reported since Q2 2021 and builds upon a consecutive quarterly growth trend established in 2024. Introduced in mid-2024, the new platform has delivered measurable improvements in marketing effectiveness, customer engagement, and sales volumes. The Company also continues to generally outperform its peers in retail category benchmarks, reflecting the strength of its recent product innovations and the effectiveness of its strategic retail partnerships. Gross profit in Q1 2025 was $6.2 million, or 50.8% of revenue, compared to gross profit of $6.9 million, or 57.0% of revenue, in Q1 2024. The prior year included temporary items favorable to gross margin. The Company models forward gross margin percentages to continue in the low 50s, supported partly by the transition to in-house production of gummies, followed by topical products over time. Total selling, general, and administrative ("SG&A") expenses in the quarter were $11.6 million, a 24.2% improvement from $15.3 million in Q1 2024. Stringent expense controls were implemented over the past year and remain a central focus in 2025. Net loss for the first quarter of 2025 was $6.2 million, or ($0.04) per share basic and diluted, compared to a net loss of $9.7 million, or ($0.06) per share basic and diluted, for the first quarter of 2024. Excluding depreciation, amortization and other non-cash items, Charlotte's Web reported negative Adjusted EBITDA 1 for the first quarter of 2025 of $2.8 million, a $1.1 million improvement compared to negative Adjusted EBITDA of $3.9 million in the first quarter of 2024. Balance Sheet and Cash Flow Net cash used for operations in the first quarter of 2025 was $2.8 million. The Company's cash and working capital as of March 31, 2025, were $19.4 million and $25.5 million, respectively, compared to $22.6 million and $31.1 million as of December 31, 2024, respectively. "With cash reserves exceeding $19 million and our anticipated cash flow improvements for this year, we are confident our balance sheet is sufficient to support growth for 2025 and beyond," said Mrs. Lind. Consolidated Financial Statements and Management's Discussion and Analysis The Company's consolidated financial statements and accompanying notes for the three month periods ended March 31, 2025, and 2024, and related management's discussion and analysis of financial condition and results of operations ("MD&A"), are reported in the Company's 10-Q filing on the Securities and Exchange Commission website at and on SEDAR+ at and will be available on the Investor Relations section of the Company's website at About Charlotte's Web Holdings, Inc. Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in Louisville, Colorado, is a botanical wellness innovation company and market leader in hemp extract wellness that includes Charlotte's Web whole-plant full-spectrum CBD extracts as well as broad-spectrum CBD. Charlotte's Web branded premium quality full-spectrum CBD extract products start with proprietary hemp genetics that are North American farm-grown using organic and regenerative cultivation practices. The Company's hemp extracts have naturally occurring botanical compounds including cannabidiol ("CBD"), CBN, CBC, CBG, terpenes, flavonoids, and other beneficial compounds. Charlotte's Web product categories include CBD oil tinctures (liquid products), CBD gummies (sleep, calming, exercise recovery, immunity), CBN gummies, functional mushroom gummies, CBD capsules, CBD topical creams, and lotions, as well as CBD pet products for dogs. Through its substantially vertically integrated business model, Charlotte's Web maintains stringent control over product quality and consistency with analytic testing from soil to shelf for quality assurance. Charlotte's Web products are distributed to retailers and healthcare practitioners throughout the U.S.A. and are available online through the Company's website at Shares of Charlotte's Web trade on the Toronto Stock Exchange (TSX) under the symbol "CWEB" and are quoted in U.S. Dollars in the United States on the OTCQX under the symbol "CWBHF". Subscribe to Charlotte's Web investor news. Forward-Looking Information Certain information provided herein constitutes forward-looking statements or information (collectively, "forward-looking statements") within the meaning of applicable securities laws. Forward-looking statements are typically identified by words such as "may", "will", "should", "could", "anticipate", "expect", "project", "estimate", "forecast", "plan", "intend", "target", "believe" and similar words suggesting future outcomes or statements regarding an outlook. Forward-looking statements are not guarantees of future performance, and readers are cautioned against placing undue reliance on forward-looking statements. By their nature, these statements involve a variety of assumptions, known and unknown risks and uncertainties, and other factors which may cause actual results, levels of activity, and achievements to differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on certain assumptions and analysis by management of the Company in light of its experience and perception of historical trends, current conditions, expected future development, and other factors that it believes are appropriate and reasonable. Specifically, this press release contains forward-looking statements relating to, but not limited to: organizational changes, marketing plans and operational platform upgrades, and the impact of these initiatives on retail expansion, operational efficiencies, cash flow, revenue and e-commerce monetization; expectations relating to IT upgrades, marketing optimization and operational integrations; product expansion activities and the corresponding results thereof; sales volume and gross margin expectations; anticipated timing for, and business impact of, in-house manufacturing of topical and gummy products; the impact of the Company's product innovations on product development; regulatory developments and the impact of developments on both consumer action and the Company's opportunities and operations; activities relating to, and sponsorship of, legislation to advance regulatory framework; the impact of insourcing on operating margins, capital expenditures and R&D anticipated consumer trends and corresponding product innovation; anticipated future financial results; the Company's ability to increase online traffic and demographic exposure through new products and marketing and omni-channel expansion; and the impact of certain activities on the Company's business and financial condition and anticipated trajectory; launch of products in Whole Foods; continued product placement on various product channels; anticipated development of new products; the outcomes from DeFloria's clinical trials, including commercial opportunities for Charlotte's Web. The material factors and assumptions used to develop the forward-looking statements herein include, but are not limited to: regulatory regime changes; anticipated product development and sales; the success of sales and marketing activities; product development and production expectations; outcomes from R&D activities; the Company's ability to deal with adverse growing conditions in a timely and cost-effective manner; the availability of qualified and cost-effective human resources; compliance with contractual and regulatory obligations and requirements; availability of adequate liquidity and capital to support operations and business plans; and expectations around consumer product demand. In addition, the forward-looking statements are subject to risks and uncertainties pertaining to, among other things: supply and distribution chains; the market for the Company's products; revenue fluctuations; regulatory changes; loss of customers and retail partners; retention and availability of talent; competing products; share price volatility; loss of proprietary information; product acceptance; internet and system infrastructure functionality; information technology security; available capital to fund operations and business plans; crop risk; economic and political considerations; and including but not limited to those risks and uncertainties discussed under the heading "Risk Factors" in the Company's Annual Report on Form 10-K for the year ending December 31, 2024, and other risk factors contained in other filings with the Securities and Exchange Commission available on and filings with Canadian securities regulatory authorities available The impact of any one risk, uncertainty, or factor on a particular forward-looking statement is not determinable with certainty, as these are interdependent, and the Company's future course of action depends on management's assessment of all information available at the relevant time. Any forward-looking statement in this press release is based only on information currently available to the Company and speaks only as of the date on which it is made. Except as required by applicable law, the Company assumes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events, or otherwise. All forward-looking statements, whether written or oral, attributable to the Company or persons acting on the Company's behalf, are expressly qualified in their entirety by these cautionary statements. CHARLOTTE'S WEB HOLDINGS, INC. CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (in thousands of U.S. dollars, except share amounts) Common Shares Additional Paid-in Capital Accumulated Deficit Total Shareholders' Equity Shares Amount Balance—December 31, 2024 158,009,541 $ 1 $ 328,655 $ (301,569) $ 27,087 Common shares issued upon vesting of restricted share units, net of withholding — — — — — Share-based compensation — — 187 — 187 Net loss — (6,212) (6,212) Balance—March 31, 2025 158,009,541 $ 1 $ 328,842 $ (307,781) $ 21,062 Balance—December 31, 2023 154,332,366 $ 1 $ 327,280 $ (271,723) $ 55,558 Common shares issued upon vesting of restricted share units, net of withholding 2,895,489 — (98) — (98) Share-based compensation — 842 — 842 Net loss — (9,634) (9,634) Balance—March 31, 2024 157,227,855 $ 1 $ 328,024 $ (281,357) $ 46,668 Three Months Ended March 31, (unaudited) 2025 2024 Cash flows from operating activities: Net loss $ (6,212) $ (9,634) Adjustments to reconcile net loss to net cash used in operating activities: Depreciation and amortization 2,449 2,493 Change in fair value of financial instruments 126 1,860 Convertible debenture and other accrued interest 868 1,015 Changes in right-of-use assets 473 443 Share-based compensation 187 842 Other 126 (956) Changes in operating assets and liabilities: Accounts receivable, net (394) 98 Inventories, net 19 (1,026) Prepaid expenses and other current assets 28 150 License and media rights — (2,500) Operating lease obligations (605) (551) Accounts payable, accrued and other liabilities 71 663 Other operating assets and liabilities, net 96 (76) Net cash used in operating activities (2,768) (7,179) Cash flows from investing activities: Purchases of property and equipment and intangible assets (521) (2,060) Proceeds from sale of assets 28 27 Net cash used in investing activities (493) (2,033) Cash flows from financing activities: Other financing activities — (98) Net cash used in financing activities — (98) Net decrease in cash and cash equivalents (3,261) (9,310) Cash and cash equivalents —beginning of period 22,618 47,820 Cash and cash equivalents —end of period $ 19,357 $ 38,510 Non-cash activities: Non-cash purchase of property and equipment and intangible assets $ (83) $ (374) (1) Non-GAAP Measures – EBITDA and Adjusted EBITDA Earnings before interest, taxes, depreciation, and amortization ("EBITDA") is not a recognized performance measure under U.S. GAAP. The term EBITDA consists of net loss and excludes interest, taxes, depreciation, and amortization. Adjusted EBITDA also excludes other non-cash items such as changes in fair value of financial instruments (Mark-to-Market), Share-based compensation, and impairment of assets. These non-GAAP financial measures should be considered supplemental to, and not a substitute for, our reported financial results prepared in accordance with GAAP. The non-GAAP financial measures do not have a standardized meaning prescribed under U.S. GAAP and, therefore, may not be comparable to similar measures presented by other issuers. The primary purpose of using non-GAAP financial measures is to provide supplemental information that we believe may be useful to investors and to enable investors to evaluate our results in the same way we do. We also present the non-GAAP financial measures because we believe they assist investors in comparing our performance across reporting periods on a consistent basis, as well as comparing our results against the results of other companies, by excluding items that we do not believe are indicative of our core operating performance. Specifically, we use these non-GAAP measures as measures of operating performance; to prepare our annual operating budget; to allocate resources to enhance the financial performance of our business; to evaluate the effectiveness of our business strategies; to provide consistency and comparability with past financial performance; to facilitate a comparison of our results with those of other companies, many of which use similar non-GAAP financial measures to supplement their GAAP results; and in communications with our board of directors concerning our financial performance. Investors should be aware, however, that not all companies define these non-GAAP measures consistently. Adjusted EBITDA for the three months ended March 31, 2025, and 2024 is as follows: SOURCE Charlotte's Web Holdings, Inc.
