Wed, May 15, 10:32 AM (73 days ago)
CV Sciences, Inc.'s Q1 2024 financial report highlights a slight decrease in net product sales to $4.0 million, down 4% from $4.1 million in Q1 2023, primarily due to lower B2B sales. Gross profit improved by 4% to $1.9 million with a gross margin increase to 46.3%, driven by favorable product and channel mix and lower inventory losses. Operating expenses rose by 13% to $2.4 million, mainly due to higher legal and professional fees. The company reported a net loss of $0.6 million, a significant decline from a net income of $5.7 million in Q1 2023, attributed to a one-time benefit from the reversal of accrued payroll taxes in the previous year. Cash flow from operations was negative at $0.5 million, with a cash balance of $662,000 as of March 31, 2024. The company faces liquidity challenges and is exploring additional funding options. Recent acquisitions include Cultured Foods and Elevated Softgels, aimed at expanding product lines and market reach. The report raises substantial doubt about the company's ability to continue as a going concern without additional capital.