cbdMD(YCBD)2025-02-13 21:05Financial Performance - Total net sales for the three months ended December 31, 2024, were 0.3 million or 4.9% compared to 214,817, compared to a loss of (86,272), a significant improvement from 1.2 million or 26% year-over-year, driven by reductions in staff-related expenses, marketing, and professional services[135]. - The company anticipates some increases in marketing expenses in future quarters to positively impact revenue growth[135]. Strategic Initiatives - The company launched a new line of hemp-derived ready-to-drink beverages under the Herbal Oasis brand, targeting the fastest-growing category in the hemp industry[123]. - The company is exploring international expansion, gaining market share in Central and South America, and expanding its e-commerce business in the UK[127]. - The company is evaluating potential acquisitions to lower customer acquisition costs and enhance profitability, although no pending acquisitions are currently in progress[128]. Financial Position and Compliance - As of December 31, 2024, the company had cash and cash equivalents of approximately 2.8 million[137]. - As of September 30, 2024, the company reported stockholders' equity of 2 million for continued listing on NYSE American[141]. - The company remains subject to a compliance plan accepted by NYSE American on August 20, 2024, to regain compliance by December 5, 2025[141]. - If the company fails to comply with listing standards by the deadline, it may face delisting procedures[141]. - The company has no undisclosed off-balance sheet arrangements that could materially affect its financial condition[156]. Management and Reporting - Management emphasizes the importance of non-GAAP measures like Adjusted EBITDA for evaluating core operating results[147]. - The company aims to use operating cash flows to fund day-to-day operations and stabilize its cash position[144]. - The company is seeking shareholder approval to convert $5.7 million of outstanding Series A Preferred Stock and accrued dividends into shares of Common Stock to improve stockholder equity[142].