Wed, Aug 14, 8:07 PM (153 days ago)
For the quarter ending June 30, 2024, cbdMD, Inc. reported net sales of $5.2 million, down 16% from $6.1 million in the same period last year, attributed to a decline in e-commerce sales. However, wholesale sales increased, indicating a potential shift in revenue channels. Gross profit margin improved to 65.8%, reflecting successful cost-saving measures, with total operating expenses reduced by 24% year-over-year to $3.8 million. The company reported a net loss of $540,763, a significant improvement compared to a loss of $2.8 million in the prior year. Cash and cash equivalents rose to $2.4 million, although working capital remains negative at $567,610 due to accrued dividends. The company continues to face liquidity challenges, relying on a recent $1.25 million capital raise through convertible notes for working capital. Future operations may be impacted by ongoing cost management efforts and potential revenue growth from new retail partnerships and product launches. cbdMD's ability to maintain compliance with NYSE American listing standards is a critical concern as the company navigates its financial recovery.