Company reduces annualized SG and A expenses $24 million year over year
Charlotte, North Carolina--(Newsfile Corp. - May 15, 2023) - cbdMD, Inc. (NYSE American: YCBD) (NYSE American: YCBDpA), one of the nation's leading and most highly trusted and recognized CBD companies, and operator the leading CBD brands - including its flagship brand cbdMD, and its animal health brand Paw CBD, today announced our second quarter of fiscal 2023 results.
For the second quarter of fiscal 2023 GAAP Net Loss improved to $1.4 million on sales of $6.2 million as compared to a $5.0 million Net Loss on sales of $9.6 million in the prior year comparative quarter. Year over year saw significant improvements in SG&A costs.
"While we still have more work left to do, we are excited about the progress we made during the second fiscal quarter. This is one of the best operating results we have had since the Company acquired the cbdMD brand. We are incredibly proud of our team's efforts during the quarter to stabilize our revenue sequentially, while we reduced SG&A expenses by an annualized $24 million year over year. We continue to take steps to improve our business and continue to lay the groundwork during the third quarter that will have an increasing positive impact on the business during the balance of the calendar year," says Ronan Kennedy, cbdMD's Interim CEO and CFO.
Financial Highlights from our Second Quarter of Fiscal 2023:
- We reported that our net sales for the March 31, 2023 quarter were $6.2 million versus net sales of $6.1 million quarter ending December 31, 2022, an increase of 2.5%. Our net sales for the quarter ended March 31, 2023 were down 35% compared to the prior year quarter ended March 31, 2022. For the 6 months ending March 31, 2023 we reported net sales of $12.3 million as compared to $18.9 million in the prior year comparative period.
- We reported that our quarter ending March 31, 2023 direct to consumer (DTC) net sales were $4.9 million, versus $6.5 million for our quarter ending March 31, 2022, or a year over year decline of 26%. Our e-commerce net sales were flat sequentially.
- We reported that our quarter ending March 31, 2023, wholesale sales (including brick and mortar retail customers) were $1.35 million, versus $1.2 million for quarter ending December 31, 2022 or sequential increase of 15%. Wholesale net sales were down 56% compared to the prior year quarter ended March 31, 2022.
- For the quarter ending March 31, 2023, the Company continued delivering on cost rationalizations and recorded SG&A Costs of $5.4 million for the quarter as compared to $11.5 million in the prior year period. SG&A has improved $6.0 million compared to the prior year quarter ended March 31, 2022, this represents $24 million in annualized spend reductions.
- We reported GAAP loss from operations of approximately $1.34 million for the quarter ending March 31, 2023 compared to a $5.3 million loss from operations for our quarter ending March 31, 2022, an improvement of approximately $3.6 million or 72% year over year. For the six months ending March 31, 2023, we reported loss from operations of approximately $5.4 million as compared to $30.2 million for the prior year comparative period.
- We reported non-GAAP adjusted operating loss of approximately $0.8 million in our March 31, 2023 quarter, compared to $3.6 million for the March 31, 2022 quarter. Sequentially we improved $1.8 million. This reduction was primarily related to management's actions taken to right size our cost structure over the last few quarters. For the six months ended March 31, 2023 we reported non-GAAP adjusted operating loss of $3.5 million as compared to $8.8 million in the prior year comparative period.
Highlights for the Second Quarter and Notable Business Updates
- cbdMD Therapeutics completed our pet clinical study and results indicated our proprietary broad spectrum improves mobility and gait in dogs. Additionally, owners reported lower observation of pain and improved quality of life. The data is currently being used to support product development and marketing campaigns. After we publish our findings sometime in fiscal 2023, the data will be used to support the submission of structure function claim notifications to FDA.
- Adara Acquisition Corporation completed its merger with Alliance Entertainment Inc. on February 10th, 2023 and the Company received back its $1 million investment in Adara Sponsor, LLC.
- The Company launched its third NSF for sport product, our 1500mg broad spectrum gummy. Not only was the first to commercialize NSF for Sport CBD Product it is the only certified gummy product on the market and at the highest concentration on the market.
- The Company also launched its first products on Amazon; the UK Amazon launch expands cbdMD's reach into the UK market.
- On April 24, 2023, the Company completed its one-for-forty five reverse stock split of the Company's issued and outstanding shares of common stock.
- On May 3, 2023, the Company completed an underwritten public offering of 1,350,000 shares of its common stock at a public offering price of $2.10 per share. Gross proceeds from the offering before deducting underwriting discounts and commissions and offering expenses were approximately $2.8 million. After the public offering the Company has over $4 million in cash.
We will host a conference call at 4:15 p.m., Eastern Time, on Monday, May 15, 2023, to discuss our March 31, 2023, second quarter financial results and business progress.
CONFERENCE CALL DETAILS
| Monday May 15, 4:15 p.m. Eastern Time |
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| USA/Canada: |
800-319-4610 |
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| International: |
604-638-5340 |
| Teleconference Replay dial in: |
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| USA/Canada: |
855-669-9658 |
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| International: |
412-317-0088 |
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| Replay Passcode: |
9893 |
| Webcast/Webcast Replay link- available through May 15, 2024: https://www.gowebcasting.com/12471 |
About cbdMD, Inc.
cbdMD, Inc. is one of the leading and most highly trusted and most recognized cannabidiol (CBD) brands with a comprehensive line of U.S. produced, THC-free1CBD products as well as our new Full Spectrum products. Our cbdMD brand currently includes high-grade, premium CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD bath bombs, CBD sleep aids and CBD drink mixes and an array of Farm Act compliant Delta 9 products. Our Paw CBD brand of pet products includes veterinarian-formulated products including tinctures, chews, topicals products in varying strengths, and our CBD Botanicals brand of beauty and skincare products including facial oil and serum, toners, moisturizers, clear skin, facial masks, exfoliants and body care. To learn more about cbdMD and our comprehensive line of U.S. grown, THC-free1 CBD oil and Full Spectrum products, please visit www.cbdmd.com, follow cbdMD on Instagram and Facebook, or visit one of the thousands of retail outlets that carry cbdMD's products.
Forward-Looking Statements
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified using words such as ''should,'' ''may,'' ''intends,'' ''anticipates,'' ''believes,'' ''estimates,'' ''projects,'' ''forecasts,'' ''expects,'' ''plans,'' and ''proposes.'' These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict. You are urged to carefully review and consider any cautionary statements, including but not limited to expectations on our ability to continue as a going concern, increasing our revenues, cost reductions, potential need for additional working capital, future profitability, results from clinical studies 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, 2022 as filed with the Securities and Exchange Commission (the "SEC") on December 15, 2022 and as amended on December 20, 2022 and May 3, 2023 and our other filings with the SEC. All forward-looking statements involve significant risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements, many of which are generally outside the control of cbdMD, Inc. and are difficult to predict. cbdMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
1 THC-free is defined as below the level of detection using validated scientific analytical methods.
Non-GAAP Financial Measures
This press release includes a financial measure that excludes the impact of certain items and therefore has not been calculated in accordance with U.S. generally accepted accounting principles ("GAAP"). cbdMD, Inc. has included adjusted loss from operations because management uses this measure to assess operating performance in order to highlight trends in our business that may not otherwise be apparent when relying on financial measures calculated in accordance with GAAP. The adjusted operating loss has not been prepared in accordance with GAAP. This non-GAAP financial measure should not be considered as an alternative to, or more meaningful than, net loss from operations as an indicator of our operating performance. Further, this non-GAAP financial measure, as presented by cbdMD, Inc., may not be comparable to similarly titled measures reported by other companies. cbdMD, Inc. has attached to this press release a reconciliation of this non-GAAP financial measure to its most directly comparable GAAP financial measure.
| cbdMD, INC. |
|
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
| MARCH 31, 2023 AND SEPTEMBER 30, 2022 |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
| Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Cash and cash equivalents |
|
|
|
|
|
|
$ |
1,718,552 |
|
$ |
6,720,234 |
|
| Accounts receivable |
|
|
|
|
|
|
|
1,161,553 |
|
|
1,447,831 |
|
| Accounts receivable – discontinued operations |
|
|
|
|
|
|
|
- |
|
|
1,375 |
|
| Marketable securities, at cost |
|
|
|
|
|
|
|
- |
|
|
- |
|
| Investment other securities |
|
|
|
|
|
|
|
- |
|
|
1,000,000 |
|
| Inventory |
|
|
|
|
|
|
|
|
|
4,531,890 |
|
|
4,767,373 |
|
| Prepaid sponsorship |
|
|
|
|
|
92,755 |
|
|
1,372,845 |
|
| Prepaid expenses and other current assets |
|
|
|
|
|
2,641,452 |
|
|
701,945 |
|
| Total current assets |
|
|
|
|
|
|
|
|
10,146,202 |
|
|
16,011,603 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other assets: |
|
|
|
|
|
|
|
|
|
|
|
|
| Property and equipment, net |
|
|
|
|
|
|
|
798,177 |
|
|
823,310 |
|
| Operating lease assets |
|
|
|
|
|
|
|
3,921,195 |
|
|
4,477,841 |
|
| Deposits for facilities |
|
|
|
|
|
|
|
138,708 |
|
|
244,606 |
|
| Intangible assets |
|
|
|
|
|
|
|
|
17,279,840 |
|
|
17,834,549 |
|
| Investment in other securities, noncurrent |
|
|
|
|
|
|
|
|
|
1,400,000 |
|
|
1,400,000 |
|
| Total other assets |
|
|
|
|
|
|
|
|
23,537,920 |
|
|
24,780,306 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total assets |
|
|
|
|
|
|
|
$ |
33,684,122 |
|
$ |
40,791,909 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| CONDENSED CONSOLIDATED BALANCE SHEETS |
|
| DECEMBER 31, 2022 AND SEPTEMBER 30, 2022 |
|
| (continued) |
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|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31, |
|
|
September 30, |
|
|
|
|
|
|
|
|
|
|
|
2023 |
|
|
2022 |
|
| Liabilities and shareholders' equity |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Current liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Accounts payable |
|
|
|
|
|
|
|
$ |
1,337,611 |
|
$ |
2,036,558 |
|
| Deferred revenue |
|
|
|
|
|
|
|
|
|
2,107,179 |
|
|
2,060,762 |
|
| Accrued expenses |
|
|
|
|
|
|
|
|
1,227,249 |
|
|
1,178,683 |
|
| Note payable |
|
|
|
|
|
|
|
|
7,375 |
|
|
9,609 |
|
| Total current liabilities |
|
|
|
|
|
|
|
4,679,414 |
|
|
5,285,612 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Long term liabilities: |
|
|
|
|
|
|
|
|
|
|
|
| Long term liabilities |
|
|
|
|
|
|
- |
|
|
125,491 |
|
| Operating leases - long term portion |
|
|
|
|
|
|
3,051,484 |
|
|
3,680,375 |
|
| Contingent liability |
|
|
|
|
|
|
167,000 |
|
|
276,000 |
|
| Total long term liabilities |
|
|
|
|
|
|
3,218,484 |
|
|
4,081,866 |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
|
|
|
|
7,897,898 |
|
|
9,367,478 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| shareholders' equity: |
|
|
|
|
|
|
|
|
|
|
|
| Preferred stock, authorized 50,000,000 shares, $0.001 |
|
|
|
|
|
|
|
|
|
| par value, 5,000,000 and 500,000 shares issued and outstanding, respectively |
|
5,000 |
|
|
5,000 |
|
| Common stock, authorized 150,000,000 shares, $0.001 |
|
|
|
|
|
|
|
|
| par value, 1,456,693 and 1,348,125 shares issued and outstanding, respectively |
|
1,457 |
|
|
1,348 |
|
| Additional paid in capital |
|
|
|
|
|
|
|
180,497,196 |
|
|
178,841,646 |
|
| Accumulated deficit |
|
|
|
|
|
|
|
|
(154,717,429 |
) |
|
(147,423,563 |
|
| Total shareholders' equity |
|
|
|
|
|
25,786,224 |
|
|
31,424,431 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
|
|
|
|
|
$ |
33,684,122 |
|
$ |
40,791,909 |
|
| cbdMD, INC. |
|
|
|
|
|
|
|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
|
|
|
|
|
|
|
| FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2023 and 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
Three months |
|
|
Three months |
|
|
Six Months |
|
|
Six Months |
|
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Sales |
$ |
6,584,666 |
|
$ |
9,948,858 |
|
$ |
12,825,191 |
|
$ |
19,805,625 |
|
| Allowances |
|
(344,646 |
) |
|
(319,972 |
) |
|
(499,954 |
) |
|
(854,917 |
) |
| Total Net Sales |
|
6,240,020 |
|
|
9,628,886 |
|
|
12,325,237 |
|
|
18,950,708 |
|
| Cost of sales |
|
2,224,512 |
|
|
3,186,564 |
|
|
4,741,964 |
|
|
7,514,874 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Gross Profit |
|
4,015,508 |
|
|
6,442,322 |
|
|
7,583,273 |
|
|
11,435,834 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating expenses |
|
5,416,151 |
|
|
11,452,700 |
|
|
13,030,097 |
|
|
23,407,984 |
|
| Impairment of Goodwill and other intangible assets |
|
- |
|
|
- |
|
|
- |
|
|
18,183,285 |
|
| Loss from operations |
|
(1,400,643 |
) |
|
(5,010,378 |
) |
|
(5,446,824 |
) |
|
(30,155,435 |
) |
| Realized and Unrealized loss on marketable and other securities |
|
- |
|
|
- |
|
|
- |
|
|
(33,352 |
) |
| Decrease of contingent liability |
|
48,000 |
|
|
353,000 |
|
|
107,000 |
|
|
6,303,000 |
|
| Other income |
|
17,787 |
|
|
2,249 |
|
|
49,543 |
|
|
72,987 |
|
| Interest income (expense) |
|
(1,946 |
) |
|
(2,086 |
) |
|
(4,583 |
) |
|
(5,320 |
) |
| Loss before provision for income taxes |
|
(1,336,802 |
) |
|
(4,657,215 |
) |
|
(5,294,864 |
) |
|
(23,818,120 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Benefit for income taxes |
|
- |
|
|
- |
|
|
- |
|
|
- |
|
| Net Loss |
|
(1,336,802 |
) |
|
(4,657,215 |
) |
|
(5,294,864 |
) |
|
(23,818,120 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred dividends |
|
1,000,500 |
|
|
1,000,502 |
|
|
2,001,002 |
|
|
2,001,002 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss available to cbdMD, Inc. common shareholders |
$ |
(2,337,302 |
) |
$ |
(5,657,717 |
) |
$ |
(7,295,866 |
) |
$ |
(25,819,122 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss per share: |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
|
(1.74 |
) |
|
(4.32 |
) |
|
(5.43 |
) |
|
(19.67 |
) |
| Diluted earnings per share |
|
(1.74 |
) |
|
(4.32 |
) |
|
(5.43 |
) |
|
(19.67 |
) |
| Weighted average number of shares Basic: |
|
1,345,589 |
|
|
1,310,378 |
|
|
1,343,394 |
|
|
1,312,755 |
|
| Weighted average number of shares Diluted: |
|
1,345,589 |
|
|
1,310,378 |
|
|
1,343,394 |
|
|
1,312,755 |
|
| cbdMD, INC. |
|
|
|
|
|
|
|
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS |
|
|
|
|
|
|
|
| FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2023 and 2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
(Unaudited) |
|
|
|
|
|
|
Three months |
|
|
Three months |
|
|
Six Months |
|
|
Six Months |
|
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net Loss |
$ |
(1,336,802 |
) |
$ |
(4,657,215 |
) |
$ |
(5,294,864 |
) |
$ |
(23,818,120 |
) |
| Comprehensive Loss |
|
(1,336,802 |
) |
|
(4,657,215 |
) |
|
(5,294,864 |
) |
|
(23,818,120 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
| Preferred dividends |
|
(1,000,500 |
) |
|
(1,000,502 |
) |
|
(2,001,002 |
) |
|
(2,001,002 |
) |
| Comprehensive Loss attributable to cbdMD, inc. common shareholders |
$ |
(2,337,302 |
) |
$ |
(5,657,717 |
) |
$ |
(7,295,866 |
) |
$ |
(25,819,122 |
) |
| cbdMD, INC. |
|
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
|
| FOR THE SIX MONTHS ENDED MARCH 31, 2023 and 2022 |
|
|
|
(Unaudited) |
|
|
|
|
|
|
Six Months |
|
|
Six Months |
|
|
|
Ended |
|
|
Ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
| Cash flows from operating activities: |
|
|
|
|
|
|
| Net Loss |
$ |
(5,292,864 |
) |
$ |
(23,818,120 |
) |
| Adjustments to reconcile net loss to net |
|
|
|
|
|
|
| cash used by operating activities: |
|
|
|
|
|
|
| Stock based compensation |
|
96,216 |
|
|
797,096 |
|
| Restricted stock expense |
|
100,249 |
|
|
837,267 |
|
| Write off of prepaid assets due to termination of contractual obligation |
|
884,892 |
|
|
- |
|
| Issuance of stock for services |
|
1,459,193 |
|
|
- |
|
| Marketing stock amortization |
|
- |
|
|
339,520 |
|
| Inventory and materials impairment |
|
- |
|
|
878,142 |
|
| Intangibles Amortization |
|
554,709 |
|
|
329,671 |
|
| Depreciation |
|
100,112 |
|
|
600,750 |
|
| Impairment of goodwill and other intangible assets |
|
- |
|
|
18,183,285 |
|
| Decrease in contingent liability |
|
(109,000 |
) |
|
(6,303,000 |
) |
| Realized and unrealized loss of Marketable and other securities |
|
- |
|
|
33,352 |
|
| Amortization of operating lease asset |
|
556,646 |
|
|
589,291 |
|
| Changes in operating assets and liabilities: |
|
|
|
|
|
|
| Accounts receivable |
|
286,278 |
|
|
(932,230 |
) |
| Deposits |
|
105,898 |
|
|
390,875 |
|
| Inventory |
|
135,176 |
|
|
(569,316 |
) |
| Prepaid inventory |
|
100,307 |
|
|
32,391 |
|
| Prepaid expenses and other current assets |
|
(1,544,308 |
) |
|
354,752 |
|
| Accounts payable and accrued expenses |
|
(855,872 |
) |
|
(1,129,614 |
) |
| Operating lease liability |
|
(580,325 |
) |
|
(595,457 |
) |
| Deferred revenue / customer deposits |
|
203,341 |
|
|
10,723 |
|
| Collection on discontinued operations accounts receivable |
|
1,375 |
|
|
9,592 |
|
| Deferred tax liability |
|
- |
|
|
- |
|
| Cash used by operating activities |
|
(3,797,977 |
) |
|
(10,670,537 |
) |
|
|
|
|
|
|
|
| Cash flows from investing activities: |
|
|
|
|
|
|
| Other securities |
|
1,000,000 |
|
|
(373,795 |
) |
| Purchase of property and equipment |
|
(74,980 |
) |
|
- |
|
| Cash flows from investing activities |
|
925,020 |
|
|
(373,795 |
) |
|
|
|
|
|
|
|
| Cash flows from financing activities: |
|
|
|
|
|
|
| Proceeds from issuance of preferred stock |
|
- |
|
|
- |
|
| Note payable |
|
(127,725 |
) |
|
(29,240 |
) |
| Preferred dividend distribution |
|
(2,001,000 |
) |
|
(2,001,002 |
) |
| Cash flows from financing activities |
|
(2,128,725 |
) |
|
(2,030,242 |
) |
| Net increase (decrease) in cash |
|
(5,001,682 |
) |
|
(13,074,574 |
) |
| Cash and cash equivalents, beginning of period |
|
6,720,234 |
|
|
26,411,424 |
|
| Cash and cash equivalents, end of period |
$ |
1,718,552 |
|
$ |
13,336,850 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Supplemental Disclosures of Cash Flow Information: |
|
|
|
|
|
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
| Cash Payments for: |
|
|
|
|
|
|
| Interest expense |
$ |
2,638 |
|
$ |
4,173 |
|
|
|
|
|
|
|
|
| Non-cash financial activities: |
|
|
|
|
|
|
| Issuance of Contingent earnout shares: |
$ |
- |
|
$ |
730,000 |
|
| cbdMD, Inc. |
|
|
|
|
|
|
|
| SUPPLEMENTAL FINANCIAL INFORMATION |
|
|
|
|
|
|
|
| RECONCILIATION OF NON-GAAP ADJUSTED LOSS FROM OPERATIONS |
|
|
|
|
|
|
|
| (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months |
|
|
Three Months |
|
|
Six Months |
|
|
Six Months |
|
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
Ended |
|
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
March 31, |
|
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| GAAP (loss) from operations |
$ |
(1,400,643 |
) |
$ |
(5,010,378 |
) |
$ |
(5,446,824 |
) |
$ |
(30,155,435 |
) |
| Adjustments: |
|
|
|
|
|
|
|
|
|
|
|
|
| Depreciation & Amortization |
|
379,744 |
|
|
600,750 |
|
|
757,210 |
|
|
600,750 |
|
| Employee and director stock compensation (1) |
|
117,821 |
|
|
754,207 |
|
|
254,965 |
|
|
1,634,363 |
|
| Other non-cash stock compensation for services (2) |
|
- |
|
|
- |
|
|
884,892 |
|
|
- |
|
| Inventory adjustment (3) |
|
- |
|
|
- |
|
|
- |
|
|
878,142 |
|
| Impairment of goodwill and other intangible assets (4) |
|
- |
|
|
- |
|
|
- |
|
|
18,029,000 |
|
| Accrual for severance |
|
- |
|
|
22,500 |
|
|
129,761 |
|
|
22,500 |
|
| a360 trade credit |
|
107,608 |
|
|
- |
|
|
107,608 |
|
|
- |
|
| Accrual / expenses for discretionary bonus |
|
- |
|
|
- |
|
|
- |
|
|
150,000 |
|
| Non-GAAP adjusted (loss) from operations |
$ |
(795,470 |
) |
$ |
(3,632,921 |
) |
$ |
(3,312,387 |
) |
$ |
(8,840,680 |
) |
(1) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period.
(2) Represents non-cash expense related to options, warrants, restricted stock expenses that have been amortized during the period.
(3) Represents an operating expense related to inventory loss related to regulatory changes impacting labels and packaging and obsolete/expired inventory.
(4) Represents non-cash impairment of the cbdMD trademark of $4,285,000 and $13,898,285 of goodwill impairment during the first fiscal quarter of 2022.
Contacts:
Investors:
cbdMD, Inc.
Ronan Kennedy
Interim Chief Executive Officer and Chief Financial Officer
IR@cbdmd.com
(704) 445-3064
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/166172
