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Associated Press
21-05-2025
- Business
- Associated Press
Herbal Oasis Expands Footprint with New Distribution Agreement in Georgia
Charlotte, North Carolina--(Newsfile Corp. - May 21, 2025) - Herbal Oasis ('Oasis'), the hemp-derived THC-infused social seltzer redefining how people connect, unwind, and celebrate life, is proud to announce a new distribution partnership with Beverage South, a leading distributor serving much of the state of Georgia. Starting this month, Oasis will be available on shelves across Georgia as the brand continues its rapid expansion across the Southeast. Georgia marks the fourth state in just two months where Oasis has launched, following successful rollouts in Alabama, Florida, and North Carolina. The partnership with Beverage South significantly strengthens Oasis's presence in one of the region's key markets. 'We're thrilled to partner with Beverage South, whose reach and reputation make them an ideal distributor for Oasis in Georgia,' said Ronan Kennedy, CEO of cbdMD, parent company of Oasis. 'This collaboration represents another major step toward our goal of becoming the leading THC seltzer brand in the Southeast and beyond.' 'We are extremely excited to partner with Herbal Oasis as we enter this new and exciting category. We look forward to the future growth of both and plan to be an integral part of the wholesale distribution process. Our commitment to the responsible supply of Delta-9 products will drive our path forward,' said Billy Madison Beverage South Senior Director, Sales & Marketing. The THC beverage market continues to experience significant growth, with Brightfield estimating 50% growth in US Sales in 2025 to over $571 million. As consumers continue seeking alcohol alternatives that support presence, clarity, and connection, Herbal Oasis offers a refreshing, functional, and social-forward option—infused with THC, CBG, and functional mushrooms for a modern way to unwind. About Herbal Oasis Herbal Oasis is a premium THC-infused social seltzer that blends cannabinoids and nootropic mushrooms to deliver a fast-acting, functional beverage made for presence and connection. With an alcohol-free formula and wellness-forward ingredients, Oasis invites a better way to drink-one rooted in clarity, balance, and joy. More information can be found at Oasis is a subsidiary of cbdMD, Inc. About cbdMD, Inc. cbdMD, Inc. (NYSE American: YCBD) is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced, THC-free 1 CBD products, and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products, and our ATRx brand of natural functional mushroom support. To learn more about cbdMD and our comprehensive line of U.S. grown hemp products as well as our other brands, please visit or follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products. About Beverage South Beverage South is a leading beverage distributor serving Georgia and South Carolina, with operations in eight key markets including Albany, Athens, Augusta, Columbus, Griffin, Macon, Rome, and Columbia. Beverage South represents a diverse portfolio of top-tier beer, malt beverage, soda, and non-alcoholic brands. The company is committed to delivering exceptional service, fostering strong supplier partnerships, and driving growth through strategic investments in people, products, and market development. 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, the development or future sales of Oasis products, regaining compliance with NYSE American continued listing requirements 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, including Euromonitor international projections, 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. Contact Information: cbdMD, Inc. Ronan Kennedy Chief Executive Officer and Chief Financial Officer [email protected] (704) 445-3064 To view the source version of this press release, please visit
Yahoo
16-05-2025
- Business
- Yahoo
Q2 2025 cbdMD Inc Earnings Call
Brad Whitford; Chief Accounting Officer; cbdMD, Inc. Ronan Kennedy; Chief Executive Officer & Chief Financial Officer; cbdMD, Inc. Tom McGovern; Analyst; Maxim Group LLC Adam Waldo; Analyst; Lismore Partners, LLC Operator Good afternoon, and welcome to the cbdMD, Inc. conference call to discuss results for their second quarter of fiscal 2025 period ending March 31, 2025. This afternoon, the company issued a new press release that provided an overview of its second quarter results, which followed the filing of its quarterly report on Form 10-Q. Today's conference call will be recorded and will be available online along with the earnings press release covering financial results and non-gap presentation at in accordance with cbdMD's retention policies. (Operator Instructions) At this time, I would like to turn the conference over to Brad Whitmore, the company's Chief Accounting Officer. Brad, please go ahead. Brad Whitford Thank you, Galen, and thank you all for joining cbdMD's March 31, 2025, second quarter of fiscal 2025 earnings call and update. On the call today, we also have Ronan Kennedy, our CEO and Chief Financial Officer. We'd like to remind everyone that various remarks about future expectations, plans, and prospects constitute forward-looking statements for purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. cbdMD cautions that these forward-looking statements are subject to risks and uncertainties that may cause our actual results to differ materially from those indicated, including risks described in the company's annual report on Form 10-K -- or Form 10-Q, excuse me, for the fiscal quarter ended March 31, 2025, and our other filings for the SEC, all of which can be reviewed on the company's website at or on the SEC's website at Any forward-looking statements made on this conference call speak only as of today's date, Thursday, May 15, 2025, and cbdMD does not intend to update any of these forward-looking statements to reflect events or circumstances that would occur after today's date acceptance may be required by Federal Security laws. With that, I'd like to turn the call over to Ronan. Ronan Kennedy Good afternoon everyone, and thank you for joining us today. Over the past several quarters, we set two clear goals, one, drive revenue growth and achieve profitability, and two, resolve our capital structure and regain compliance with the NYSE American listing standards. This quarterly update, I'm pleased to report progress on both fronts. Our top priority for the second quarter and into Q3 was preparing for our annual meeting and securing shareholder approval on two mission critical proposals, the conversion of our Series A preferred stock in a reverse split. This is a complex undertaking involving multiple shareholder classes and two failed prior attempts over the last 18 months. I want to thank our shareholders for the strong vote of confidence. The successful approval of these measures represents a major milestone in cbdMD's reset and long term. With the Series A conversion complete, approximately $6.7 million in accrued dividends and our shares of Series A preferred stock were converted into common stock, raising our pro forma non-GAAP adjusted book value from approximately $670,000 to over $7 million as of March 31, 2025, well above the $4 million threshold required by the NYSE American. The exchange also eliminated legacy obligations, including $4 million in annual dividends and over $50 million in preferred waterfall payouts and simplified our capital structure. After discussions with the regulators, a board determined conducting the reverse stock split was an important step to protect against the NYSE American's $0.10 delisting threshold. Between the preferred conversion and the reverse stock split, we now have approximately 8.9 million shares of common stock outstanding, no debt, no warrant overhang, and a clean cap table, putting us in a position to fully regain compliance by the end of our fiscal year. After two years of heavy lifting, cbdMD is now operating with a strong foundation and greater strategic flexibility. We're energized by what this unlocks for the future. On the operational side, we continue to demonstrate meaningful year-over-year progress across the P&L. Even if Q2 performance was not as strong as Q1. We're executing against three revenue growth priorities, first, growing our direct to consumer business. While our Q2 marketing performance fell short of expectations, we acted swiftly, making leadership changes in March and instilling a renewed urgency across the team. We'll be laser focused on enhancing customer acquisition, experience and retention. Second, expanding our core wholesale business. Wholesale revenue is up 13% on a trailing 12 month basis. We've added new sales reps focused on focusing on high quality partnerships and working to ensure cbdMD remains the preferred brand in our category. Finally, scaling Herbal Oasis, our hemp derived THC seltzer brand, and we started to officially call it award winning. All four flavors recently meddled at the 2025 High Spirits Award. We've added distribution partners in Alabama, Florida, and North Carolina. While some rollout momentum slowed in Q2 due to legislative activity, we're ramping it up again and having new markets and retail placements in the pipeline. We expect to announce additional wins this third quarter. The THC seltzer category is booming. According to Euromonitor, sales more than doubled in 2024 and projected to exceed $4 billion by 2028. As alcohol consumption declines, we're seeing a clear signs that consumers are seeking functional social alternatives and Oasis is built for that future. We also know that the long-term success of this category will depend on regulatory clarity. We are currently tracking active legislation in over 23 states and we strongly support smart regulation that ensures customer safety and trust. With our internal regulatory and legal experience, we're confident in our ability to adapt quickly to an evolving landscape. All this strategic and operational progress is beginning to show up in our financial performance. But we still have work ahead, the year-over-year trends across revenue margins reflect the business that's becoming more efficient, more disciplined, and better positioned to scale. With that, I'd like to turn it over to Brad to walk through the financial details of the quarter. Brad Whitford Thanks, Ronan. Total net sales for the first quarter of fiscal 2025 were $4.7 million, representing an 8.6% increase from the prior year comparative quarter total and a 7.9% decrease from the first quarter. As Ronan mentioned, we are focused on three key areas to improve our quarterly revenue numbers. Our quarterly e-commerce direct to consumer business was flat year over year and generated sales of $3.6 million in the second quarter of fiscal 2025. E-commerce represented 77% of our total net sales for the second quarter of 2025 versus 83% in the prior year comparative quarter. Our wholesale business generated $1.1 million of net sales for the second quarter of fiscal 2025, up 22% as compared to $750,000 for the comparative quarter in fiscal 2024. Our gross profit remained healthy at 62% for the second quarter of 2025. The increase in our warehouse rent flowed through in full this quarter, including some one-time increases in cam costs. Despite this, we continue to operate with some of the leading gross margins in the industry. Our SG&A expenses for the second quarter of fiscal 2025 totaled $3.5 million compared to $4.1 million in the prior year comparative quarter. The expense reduction was primarily due to reductions in payroll, professional fees, and the elimination of the headquarters lease in addition to other cost saving initiatives, while slightly offset by an increase in marketing expense. For the six months ended March 31, 2025, SG&A expenses were down $1.8 million across the board and came in at $6.9 million. We are continuing to review operating costs across the board to ensure we remain efficient and help us return to positive income and even during the second half of the year. Overall, this resulted in a loss from operations of approximately $485,000 for the second quarter of fiscal 2025. As compared to a $1.5 million loss from the five-year period, after adjustment to the fair value of the notes and interest expense, net loss totaled $480,000 as compared to a loss of $3 million in the second quarter of fiscal 2024. Our non-GAAP adjustments to operating expenses for the second quarter of fiscal 2025 included $2,000 in non-cash employee stock expense and $286,000 in depreciation and amortization expense, resulting in non-GAAP adjusted EBITDA loss of $197,000 for the second quarter of fiscal 2025 as compared to $680,000 non-GAAP adjusted EBITDA loss in the second quarter of fiscal 2024. The EBITDA improvement non-gap adjusted operating loss over the prior year period is primarily attributed to management's focus on our cost structure and profitability. We had cash in cash equivalent of approximately $1.7 million in working capital of approximately $3.7 million in March for March 30, 2025 as compared to $2.4 million in working capital deficit of approximately $2.2 million on September 30, 2024. The main factor contributing to the reduction in our net working capital is the incremental $1 million of accrued preferred dividends that is a short-term liability on our balance sheet. Excluding the respective $6.7 million and $4.7 million of accrued dividends, we had positive adjusted net working capital of $2.8 million as of March '25 and $2.4 million as of September '24. We invested approximately $400,000 in inventory during the quarter. We were running a little too lean at the start of the quarter and needed to bolster a few key SKUs. Additionally, we invested in our Oasis inventory as we began rolling out to distributors. We continue to focus on improving our working capital and managing our cash carefully. With that, I'll turn the call back over to Ronan. Ronan Kennedy Thank you, Brad. Operationally we've transformed this business. Our mandate is profitable growth, and we remain firmly committed to delivering a profitable 2025. The successful capital restructuring not only improves our balance sheet but also opens the door for future strategic opportunities, including M&A. The right transaction could be truly transformational, creating opportunities to expand into new categories, reach broader customer segments, open additional sales channels, and realize meaningful operational synergy. Our capital structure is now clear. Our stock is more investable and we're seeing increased inbound interest since the annual meeting. We are evaluating these opportunities with discipline and clear focus on long-term value creation. We consider this a great resets, a clean slate to create long term value. We're no longer weighed down by the past. We're now powered by a lean organization, loyal customer base, and category expanding brands. Our cash burn remains low. We believe we have the working capital to execute our growth plan. We believe we're in a stronger position than many of our public peers, with stronger growth margins, substantially debt free, with approximately $1.7 million in cash and no material liabilities beyond normal working capital and lease liabilities. Our battle tested team has showed time and again that we can evolve, adapt, and deliver. We're grateful for the shareholder support shown in April and we're more focused than ever on driving the results in the quarters to come. Thank you. And let's open it up for questions. Operator (Operator Instructions) Tom McGovern, Maxim Group. Tom McGovern Hey, guys, thanks for taking my questions. Yeah, so just want to start first with the Herbal Oasis brand. Obviously, you announced that you were launching it back in November. Now you've had some time to actually commercially roll it out. You mentioned those distributors and plans to really fuel the growth now that you kind of work through some of the capital structure concerns. That were a priority in prior quarters. So just maybe could you give us a little bit more color on that kind of how does that expansion look from your perspective, just, what are some maybe milestones we should look out for kind of targets, if there are any specific distribution channels you're looking to get into with the brand or specific markets you're looking to expand into any details on that would be helpful. Thank you. Ronan Kennedy Sure, Thomas. Look, we had started discussions back in the December quarter with a number of distributors and started getting commitments during the March quarter. In March, we, some of those discussions took a little longer than we liked and we started seeing some legislation pop up toward the end of March which kind of slowed some of the shipments into those distributors. We did ship at the end of March and to one we shipped in April we had some shipments and then I think we recently announced in May we started shipping in Charlotte. So I think it was a little frustrating that, I think some of the regulatory stuff that has since resolved itself, slowed down our progress a little bit, but you know we've got feet on the street in some of our core markets and closing doors on a daily basis. So for us, I think we're trying to work with key distribution networks in various states. Some states it's easier to get full state coverage. Others it's broken up into more kind of county-based systems. So I think you know we're out there talking to distributors every day, working to secure opportunities for our brand and continue to march and build our distribution footprint beyond sort of the Southeast where we're at today. Tom McGovern Understood. I appreciate that. Just to follow-up on that, so should we be looking at 25 it's kind of a development or commercial ramp period and then maybe start to expect Herbal Oasis to be more of a key driver of growth or a material driver of growth in '26, or should we start to expect that, hey, maybe once it starts hitting the distribution channels there should be some relatively rapid uptake and we could start to see Oasis materially impacting top line in the back half of this year? Ronan Kennedy I think we should start being able to see towards the back end of this year, some good contribution from the brand. Tom McGovern Appreciate that clarity. And then last question for me, since this post conversion, the conversion is preferred into common equity, obviously. Increases financial flexibility for you guys. Just maybe walk me through high level how you expect it to impact your strategy moving forward. I know that now you'll have access to some self-registration that was locked up due to the cap structure. So just curious, does this alter your expectations for growth or give you any more clarity on what we should be expecting for 2025 in terms of growth initiatives? Ronan Kennedy Yeah, Thomas, I think for the shelf to come back into play, we have to complete our next audit, so it's realistically that doesn't come in. Back into play until December sometime, I think for us it sort of gives us, I would say a couple things are critical here. One, we're now in a really great position to maintain our listing, right? We were on a path with the NYSE, so that by the end of the year we potentially were delisted. So from a preservation of value for shareholders and giving not only customers, shareholders, employees alike, the fact that we now, we're in a great position on a go forward basis to main cbdMD as a listed company on the on the NYSE American. I think, strategically we've had to turn off -- we've had numerous discussions with various parties over the last few years, and I think, people really didn't see, they saw the YCB stock and the price and sort of looked at it and then as they sort of, ended up sort of doing research layer down and understood the preferred, I think, there wasn't much value or credence in sort of the value of our stock and that's either for strategic investment. That's for doing M&A, that's for trying to find sort of the right influencers and allow them to sort of participate. So I think that now is very easy to understand our capital structure and really understand the value of our stock, given that it's just a clean, common stock structure, it allows us to use that currency for the right deals where we believe there's sort of strong alignment and creating value in the future for our shareholders. Tom McGovern Understood. Well, congrats on working through that. Congrats on the quarter and then, looks like you're positioning yourself nicely for '25. I appreciate again you taking the time to answer my questions. I'll hop out of the queue. Operator (Operator Instructions) Adam Waldo, Lismore Partners. Adam Waldo Hi, good day, Ronan and Brad. Well, congrats on the conversion. I wonder if we can talk about the working capital situation going forward and how that respectively translates into cash burn or cash generation. So over the last three fiscal quarters, you've averaged a cash burn of about $275,000 a quarter. You did better than that obviously here in the latest quarter around $200,000. Are you still comfortable based on what you're seeing in terms of the working capital requirements, particularly of the Herbal Oasis Tonics new products that the company's liquidity runway remains sufficient through the end of fiscal 2026, as you had indicated was your outlook on the fiscal fourth quarter 2024 results call on December 18? Ronan Kennedy Adam, I think we understand what happened this quarter. We're working to tighten that up and make sure that we get back to scenario where you know we're in a much better positive EBITDA and cash generation situations. I think we're still feeling comfortable as of today with where we're at and the working capital that we have on a go forward basis. Adam Waldo Okay. And so am I right to correct to infer that you're still comfortable with that guidance that you issued on December 18 that you thought liquidity outlook was sufficient through at least the end of fiscal 2026, in other words, another six quarters from here? Ronan Kennedy That is what we have modeled out. Adam Waldo Okay, terrific. And then switching gears, you made a number of comments on today's call and in the recent press release around the successful conversion of the preferred to common about the company being, well positioned going forward for strategic activity, and that was obviously a key criterion for the conversion in the first place. So as you look forward, what types of strategic activity do you think board and management would find most attractive? Can you comment on that at all? Ronan Kennedy Look, I think, as I sort of spoke about in some of my closing statements, I think we're looking at opportunities where we think there's a really good either you know cost synergies to shrink out of a business, open up new channels and or sort of acquire new customers where we think there's sort of a great customer overlap and are able to sort of look at it as one and one equals three. I think that that's both inside the cannabinoid space and outside the cannabinoid space. Adam Waldo Okay, that's very helpful and I guess the final question I actually let me go back to the last part of what you said outside the cannabinoid space. Could you flesh that out anymore or add to that? Ronan Kennedy Yeah, I don't think it needs to be a CBD company. We certainly think there's plenty of opportunity. I think you've seen the number of companies in the space shrink over the last few years. We think there's still plenty of opportunity and plenty of we'll call it overhead in the space, so for the right brand and the right structure, I think we're interested, where we think, one on one is going to be greater than two. Adam Waldo Understood. And I guess the final thing following-up on something on Thomas's line of questioning around Herbal Oasis, what kind of sort of financial and operating performance metrics on that new product set can you offer us this quarter, if any, or should we look for more disclosure to come as you'll reach the materiality threshold that you seem to be signaling you would expect to see sometime before the end of this fiscal year. Ronan Kennedy So look, what I'll say is there was really the revenue impact came at the very end of the March quarter, and we're starting to see that pick up here moving through the third quarter here, so I think we're not, we have, I think stated before that, the gross margins on this product are not quite the same as our core business. But from our standpoint we view it as incremental contribution dollars and are looking at sort of volume play because it is a different business than shipping gummies and pills, majority direct to consumer. Adam Waldo Very good. Thank you so much and best wishes for upcoming quarters. Ronan Kennedy Adam, thank you very much. I appreciate it. Operator This concludes the question-and-answer session. I'd like to turn the conference back over to Ronan Kennedy for any closing remarks. Ronan Kennedy Thank you again to our shareholders for your support and everyone for attending today's call. We look forward to our next earnings call in August. Have a great afternoon. Operator This brings to a close today's conference call. You may disconnect your line. Thank you for participating and have a pleasant day.
Yahoo
15-05-2025
- Business
- Yahoo
cbdMD Delivers Continued Revenue Growth and Trend Towards Profitability in Second Fiscal Quarter
Successfully Completes Capital Structure Reset with Series A Preferred Conversion Charlotte, North Carolina--(Newsfile Corp. - May 15, 2025) - cbdMD, Inc. (NYSE American: YCBD), 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, and Herbal Oasis today announced our financial results for the second quarter of fiscal year ended September 30, 2025. The Company reported continued year-over-year improvements in both revenue and earnings while completing a transformative restructuring of its capital structure. The Company delivered $4.8 million in revenue for the second quarter, up from $4.3 million in the prior year period. Operating loss narrowed significantly from $1.5 million to $0.48 million, reflecting disciplined expenses management and early traction from new growth initiatives. Ronan Kennedy, CEO and CFO of cbdMD, stated: "Our second quarter results build on the positive year over year momentum from the first quarter of fiscal 2025. We continue to execute on our growth plan while maintaining a lean, scalable structure. With fresh talent on the team and gaining traction from our Herbal Oasis beverage line, we're entering the second half of the year well positioned to continue the trend." "Our top priority this quarter was preparing for our annual shareholder meeting and shareholder proposals related to our plan to regain compliance with NYSE American Continued Listing Standards. Securing shareholder approval for the Series A Preferred conversion was a mission-critical milestone for our company and our shareholders. As previously reported, following shareholder approval, on May 7, 2025 the automatic conversion of our Series A Preferred Stock added nearly $7 million to our equity base, enabling us to exceed the $4 million minimum NYSE American continued listing standard. As part of this conversion, $6.7 million of accrued and future dividends as of March 31, 2025 were converted to equity upon the Series A Preferred conversion which we believe bring us into compliance with the NYSE American's continued listing standards. This positions cbdMD with a clean balance sheet, zero debt, and a simplified capital structure -- a strong foundation for growth and value creation," said Kennedy. "After two years of diligent work, we've restructured both our operations and our balance sheet. Today, we have a loyal customer base, an award-winning beverage brand, a simplified cap table, and the financial flexibility to execute our vision. This is an exciting reset for cbdMD." Highlights for the First Quarter of Fiscal 2025 and Strategic Updates Herbal Oasis Gains Momentum: cbdMD's hemp-derived THC beverage brand expanded distribution into Alabama, Florida, and North Carolina, tapping into one of the fastest-growing wellness categories. Award-Winning Product Line: All four flavors of Herbal Oasis received medals at the 2025 High Spirits Awards, presented by the L.A. Spirits Awards, affirming the brand's quality and consumer appeal. Series A Preferred Conversion Completed: On May 7, 2025, cbdMD executed a 1:13 conversion of its Series A Preferred Stock, eliminating $6.7 million in accrued dividend liability and adding equivalent equity value. Book Value Turnaround: Reported book value of equity as of March 31, 2025 was $0.67 million. On a non-GAAP pro forma basis, book value rises to approximately $7.3 million, post-conversion, satisfying NYSE American's equity listing requirements under Sections 1003(a)(i) and 1003(a)(ii). The Company is required to be in compliance with NYSE American Continued Listing Standards for 2 quarters to regain compliance with NYSE American Continued Listing Standards. Reverse Stock Split Executed: Concurrent with the conversion, the Company completed a 8:1 reverse stock split, resulting in approximately 8.9 million common shares outstanding as of May 15, 2025. Board Strengthened with Strategic Appointments: cbdMD added two new independent directors, bringing deep experience in capital markets, AI, sales, and marketing, to help guide the Company through its next growth phase. Financial Highlights from our Second Quarter of Fiscal Year 2025: Net sales totaled $4.7 million in the second quarter of fiscal 2025 or an increase of 8.6% compared to $4.4 million in fiscal 2024. Year to date revenues are up from $9.7 million to $9.9 million. Our gross margin increased year over year from 59% to 62% during the second quarter of fiscal 2025. Our loss from operations was $485,000 in the second quarter of fiscal 2025 as compared to a loss of $1.6 million in the prior year comparative period. Net Loss before preferred dividends totaled $0.5 million in the second quarter of fiscal 2025 as compared to a loss of $3.0 million in the prior year period. Our non-GAAP adjusted EBITDA ("EBITDA") loss from operations in the second quarter of fiscal 2025 was approximately $197,000 compared to our EBITDA loss from operations in fiscal 2024 of approximately $678,000. Net loss attributable to common shareholders for the second quarter of fiscal 2025 was approximately $1.48 million or a loss of $1.90 per share as compared to a net loss for the second quarter of fiscal 2024 of approximately $4.0 million, or $10.84 per share. The improvement in fiscal 2025 was principally attributable to ongoing management's efforts on reducing losses and plan for achieving profitability. At March 31, 2025, we had a working capital deficit of approximately ($3.7) million and cash on hand of approximately $1.8 million as compared to a working capital deficit of approximately ($2.2) million and cash on hand of approximately $2.4 million at September 30, 2024. Excluding $6.7 million and $4.7 million of respective accrued Series A dividend payments, adjusted net working capital totaled $2.8 million and $2.4 million for the respective periods. We reported direct to consumer (DTC) net sales of $3.6 million or 77% of total net sales in the second quarter of fiscal 2025, as compared with $3.6 million or 83% of total net sales in the second quarter of fiscal 2024. We reported wholesale net sales of $1.1 million or 23% of total net sales in the second quarter of fiscal 2025, as compared to $0.75 million the second quarter of fiscal 2024. We will host a conference call at 4:20 p.m., Eastern Time, on Thursday, May 15, 2025, to discuss our March 31, 2025, second fiscal quarter and year to date fiscal 2025 financial results and business progress. CONFERENCE CALL DETAILS Thursday May 15, 2025, 4:20 p.m. Eastern Time USA/Canada: 844-821-3524 International: 647-846-2919 Teleconference Replay dial in:USA/Canada: 855-669-9658 International: 412-317-0088 Replay Passcode: 7254091 Webcast/Webcast Replay link- available through May 15, 2026: About cbdMD, Inc. cbdMD, Inc. (NYSE American: YCBD) 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, and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products, our ATRx brand features functional mushroom products. In addition, we operate Herbal Oasis, a premium, award winning THC-infused social seltzer that blends cannabinoids and nootropic mushrooms to deliver a fast-acting, functional beverage made for presence and connection. With an alcohol-free formula and wellness-forward ingredients, Oasis invites a better way to drink-one rooted in clarity, balance, and joy. To learn more about cbdMD and our comprehensive line of U.S. grown, THC-free1 CBD and Full Spectrum products as well as our other brands, please visit or 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, BALANCE SHEETSMARCH 31, 2025 AND SEPTEMBER 30, 2024 (unaudited) March 31, September 30,2025 2024AssetsCash and cash equivalents $ 1,765,234$ 2,452,553Accounts receivable, net1,052,069 983,910Inventory, net2,662,705 2,365,187Inventory prepaid221,629 159,006Prepaid sponsorship11,478 21,754Prepaid expenses and other current assets479,312 406,674Total current assets6,192,427 6,389,084 Other assets: Property and equipment, net432,792 454,268Operating lease assets1,042,746 85,817Deposits for facilities62,708 62,708Intangible assets, net2,507,046 2,889,580Investment in other securities, non-current700,000 700,000Total other assets4,745,292 4,192,373 Total assets $ 10,937,719$ 10,581,457CONSOLIDATED BALANCE SHEETSMARCH 31, 2025 AND SEPTEMBER 30, 2024(continued) March 31, September 30,2025 2024Liabilities and shareholders' equity Current liabilities: Accounts payable $ 1,287,789$ 1,541,108Accrued expenses609,674 632,674Accrued dividends6,672,000 4,671,000Deferred revenue557,353 503,254Operating leases - current portion744,961 98,696Convertible notes, at fair value- 1,171,308Total current liabilities9,871,777 8,618,040 Long term liabilities: Operating leases - long term portion400,144 -Total long term liabilities400,144 - Total liabilities10,271,921 8,618,040 cbdMD, Inc. shareholders' equity: Preferred stock, authorized 50,000,000 shares, $0.001 par value, 5,000,000 and 5,000,000 shares issued and outstanding, respectively5,000 5,000Common stock, authorized 150,000,000 shares, $0.001 par value, 783,355 and 492,383 shares issued and outstanding, respectively783 492Additional paid in capital185,194,577 184,033,012Comprehensive other expense- (7,189 ) Accumulated deficit(184,534,562 )(182,067,898 ) Total cbdMD, Inc. shareholders' equity665,798 1,963,417 Total liabilities and shareholders' equity $ 10,937,719$ 10,581,457cbdMD, STATEMENTS OF OPERATIONSFOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2025 and 2024(unaudited)Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024Gross Sales$ 4,749,426$ 4,816,444$ 9,862,902$ 10,192,075Allowances - (439,926) - (440,152)Total Net Sales 4,749,426 4,376,518 9,862,902 9,751,923Cost of sales 1,790,062 1,795,790 3,502,929 3,613,698Gross Profit 2,959,364 2,580,728 6,359,973 6,138,225Operating expenses 3,445,180 4,131,719 6,932,061 8,755,053Loss from operations (485,816 )(1,550,991 )(572,088 )(2,616,828 ) Decrease of contingent liability - 4,828 - 74,580Decrease (increase) in fair value of convertible debt (2,583 )(1,446,000 )87,380 (1,446,000 ) Interest expense (income) 7,642 (18,399 )19,046 (18,817 ) Loss before provision for income taxes (480,757 )(3,010,562 )(465,662 )(4,007,065 ) Net loss (480,757 )(3,010,562 )(465,662 )(4,007,065 ) Preferred dividends 1,000,500 1,000,500 2,001,001 2,001,000 Net Loss attributable to cbdMD, Inc. common shareholders$ (1,481,257 ) $ (4,011,062 ) $ (2,466,663 ) $ (6,008,065 ) Net Loss per share: Basic and diluted earnings per share$ (1.90 ) $ (10.84 ) $ (3.67 ) $ (16.23 ) Weighted average number of shares Basic and Diluted: 778,409 370,132 672,558 370,125 cbdMD, STATEMENTS OF COMPREHENSIVE LOSSFOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2025 and 2024(unaudited)Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 Net Loss$ (480,757 ) $ (3,010,562 ) $ (465,662 ) $ (4,007,065 ) Comprehensive Loss (480,757 )(3,010,562 )(465,662 )(4,007,065 ) Preferred dividends (1,000,500 )(1,000,500 )(2,001,001 )(2,001,000 ) Comprehensive Loss attributable to cbdMD, inc. common shareholders$ (1,481,257 ) $ (4,011,062 ) $ (2,466,663 ) $ (6,008,065 ) cbdMD, STATEMENT OF CASH FLOWSFOR THE SIX MONTHS ENDED MARCH 31, 2025 and 2024(unaudited)March 31, March 31, 2025 2024 Cash flows from operating activities: Net Loss$ (465,662 ) $ (4,007,065 ) Adjustments to reconcile net loss to net cash used by operating activities: Stock based compensation - 2,852Restricted stock expense 2,868 992Issuance of stock for services 82,250 -Amortization 382,534 345,684Depreciation 201,369 228,615Decrease in contingent liability - (74,580 ) Increase in fair value of convertible debt (87,380 )1,446,000Amortization of operating lease asset 330,969 584,574Changes in operating assets and liabilities: Accounts receivable (67,408 )301,132Deposits - 6,505Inventory (297,518 )878,967Prepaid inventory (62,623 )(95,119 ) Prepaid expenses and other current assets (62,361 )(164,404 ) Accounts payable and accrued expenses (277,135 )449,287Operating lease liability (241,489 )(628,891 ) Deferred revenue / customer deposits 54,160 (84,497 ) Cash flows from operating activities (507,426 )(809,948 ) Cash flows from investing activities: Purchase of property and equipment (179,893 )(180,015 ) Cash flows from investing activities (179,893 )(180,015 ) Cash flows from financing activities: Proceeds from issuance of common stock - 50,000Note payable - 1,247,499Cash flows from financing activities - 1,297,499Net increase (decrease) in cash (687,319 )307,536Cash and cash equivalents, beginning of period 2,452,553 1,797,860Cash and cash equivalents, end of period$ 1,765,234$ 2,105,396 Supplemental Disclosures of Cash Flow Information: 2025 2024 Cash Payments for: Interest expense$ 19,046$ 18,817 Non-cash financing/investing activities: Issuance of shares for conversion of debt and accrued interest$ 1,079,639$ -Issuance of share for services$ 82,250$ -Change in lease asset related to extinguishment of HQ lease and new warehouse lease$ (1,723,544 ) $ -Preferred dividends accrued but not paid$ 2,001,001$ 1,000,501 cbdMD, FINANCIAL INFORMATIONFOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2025 and 2024(unaudited)Three Months Ended March 31, Six Months Ended March 31, 2025 2024 2025 2024 GAAP loss from operations$ (485,816 ) $ (1,550,991 ) $ (572,088 ) $ (2,616,828 ) Adjustments: Depreciation & Amortization 285,896 290,592 583,903 574,299Employee and director stock compensation (1) 1,934 11,944 5,016 28,486Mergers and Acquisitions and financing transaction expenses (2) - 58,239 - 125,838Non-cash expense incurred as a credit (3) 439,926 - 439,926Non-cash accelerated amortization of expense related to terminated IT contracts 72,101 - 72,101Non-GAAP adjusted income (loss) from operations$ (197,986 ) $ (678,189 ) $ 16,831$ (1,376,178 ) (1) Represents depreciation of property, plant and equipment and amortization of the Company's intangible assets.(2) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period.(3) Represents non-cash expense incurred as a credit provided to GNC to replace expired product. Contacts: Investors:cbdMD, Kennedy Chief Financial OfficerIR@ 445-3064 To view the source version of this press release, please visit Sign in to access your portfolio
Yahoo
07-05-2025
- Business
- Yahoo
Herbal Oasis Expands Southeast Presence with New Distribution Agreement in North Carolina
Charlotte, North Carolina--(Newsfile Corp. - May 7, 2025) - Herbal Oasis ("Oasis"), the hemp derived THC-infused social seltzer brand redefining how people connect, unwind, and celebrate life, is now proud to be distributed by Carolina Premium Beverage, serving Charlotte NC and surrounding counties. Starting in May, consumers will be able to find Oasis on shelves across North Carolina. This milestone marks Oasis's entrance into its third state in two months, following the successful launches into Alabama and Florida. The brand continues to build significant momentum as it expands distribution throughout the Southeast. A New Era of Social Beverages Oasis is crafted for the sober-curious, health-conscious, and socially active, and combines hemp-derived THC, CBG, and functional mushrooms to create a vibrant, elevated experience-without the regret. As consumers move toward alternative choices to alcohol to relax, Oasis offers a refreshing path forward: one that feels good, tastes great, and brings people together. "Partnering with Carolina Premium Beverage is exciting for us. This allows us to better serve our customers and accelerate door openings in our home territory of Charlotte. It is another step in driving our growth in the Southeast," said Ronan Kennedy, CEO of cbdMD, parent company of Herbal Oasis. "Their deep market reach and proven track record make them an ideal partner as we accelerate Oasis's growth across the Southeast." About Herbal Oasis Herbal Oasis is a premium THC-infused social seltzer that blends cannabinoids and nootropic mushrooms to deliver a fast-acting, functional beverage made for presence and connection. With an alcohol-free formula and wellness-forward ingredients, Oasis invites a better way to drink-one rooted in clarity, balance, and joy. More information can be found at Oasis is a subsidiary of cbdMD, Inc. About cbdMD, Inc. cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA) 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, and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products, 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 or follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
Yahoo
24-04-2025
- Business
- Yahoo
Herbal Oasis Wins National Recognition at the 2025 High Spirits Awards
Charlotte, North Carolina--(Newsfile Corp. - April 24, 2025) - Herbal Oasis, a rising star in the alternative hemp beverage space, has earned national acclaim with a Gold Medal for Mango Bliss, Silver Medal for both Lemon Lift and Tropical Twist and a Bronze Medal for Berry Fusion at the 2025 High Spirits Awards, a leading showcase of excellence in cannabinoid-infused drinks hosted by the L.A. Spirits Awards in California. To view an enhanced version of this graphic, please visit: Herbal Oasis Social Tonic was awarded in the "Other Infused Beverage Products" category, a distinction that highlights unique formats pushing the edge of THC beverage innovation. The recognition comes just four months after the brand's national launch, marking a fast ascent for a beverage positioned as a stylish, non-alcoholic alternative for social settings. "We created Herbal Oasis for people looking for a better way to connect-as an alternative to alcohol," said Ronan Kelly, CEO of cbdM. "Winning this award validates what our community has been telling us: it tastes great, it feels great, and it fits the vibe." Launched at the end of 2024, Herbal Oasis was inspired by the growing movement toward low-dose, social THC consumption, especially among health-conscious adults looking for alternatives to traditional cocktails or beer. Hemp-derived THC beverages are one of the fastest growing consumer beverage categories. Euromonitor International estimates sales of hemp-derived THC beverages more than doubled in 2024 and are projected to balloon to $4.1 billion by 2028. Each can of Oasis combines hemp-derived THC, CBG, and functional mushrooms to create a vibrant, elevated experience-without regret. Oasis began hitting shelves in Alabama, Florida, and North Carolina in late March, with additional locations launching throughout spring and summer. Oasis is also available for nationwide delivery from The High Spirits Awards, founded by the creators of the L.A. Spirits Awards, evaluates products across 11 infused beverage categories. Winners are selected by a panel of experienced beverage professionals based on flavor, balance, packaging, and overall drinking experience. Medal designations range from Platinum to Bronze, with Best-in-Show honors reserved for the top of each category. About Herbal Oasis Herbal Oasis is a premium THC-infused social seltzer that blends cannabinoids and nootropic mushrooms to deliver a fast-acting, functional beverage made for presence and connection. With an alcohol-free formula and wellness-forward ingredients, Oasis invites a better way to drink-one rooted in clarity, balance, and joy. More information can be found at Oasis is a subsidiary of cbdMD, Inc. To learn more or find a retailer near you, visit: About cbdMD, Inc. cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA) 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, and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products, 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 or 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, the development or future sales of Oasis products, regaining compliance with NYSE American continued listing requirements 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, including Euromonitor international projections, 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. Contact Information: cbdMD, KennedyChief Executive Officer and Chief Financial OfficerIR@ 445-3064 Media Contact: Madison Fero, cbdMD, 980-240-5727, To view the source version of this press release, please visit Sign in to access your portfolio
