YCBD - cbdMD Reports Third Quarter Fiscal 2021 Results
Year-Over-Year Net Sales Remain Steady of $10.6 Million, Resulting in Record Trailing Twelve Month Net Sales of Over $46.4 Million
Earnings of $.02 Per Share for the Quarter
Due To Product Production Delays from Vendors on New Product Launches, Company Reduces Q1 Fiscal 2022 Net Sales Guidance to Range of $14.9 million to $15.5 million
cbdMD, Inc. ( NYSE American: YCBD, YCBDpA) , one of the nation’s leading and most highly trusted and recognized cannabidiol (CBD) brands, today announced its financial results and its business highlights for its third quarter and nine months ended June 30, 2021.
Financial highlights for the Quarter Ended June 30, 2021:
- Net sales of $10.6 million for the third quarter of fiscal 2021 remained steady year-over-year resulting in record trailing twelve-month net sales of over $46.4 million.
- Gross profit margin for the third quarter of fiscal 2021 remained strong at approximately 68%, up from 65% in the prior year’s third quarter.
- E-commerce direct-to-consumer net sales were $7.8 million, a decrease of 4.9% from the prior year’s third fiscal quarter.
- Wholesale (including brick and mortar retail customers) net sales were $2.7 million, an increase of 13.7% from the prior year’s third fiscal quarter.
- Paw CBD (our award-winning CBD pet brand) had net sales of $1.5 million, an increase of 20.6% from the prior year’s third fiscal quarter.
- Quarterly operating expenses for the third quarter of fiscal 2021 were $13.9 million, an increase of 40.6% as compared to the third quarter of fiscal 2020 at $8.2 million.
- Loss from operations increased to $6.7 million for the third quarter of fiscal 2021 compared to $1.4 million from the prior year’s third fiscal quarter.
- Non-GAAP adjusted operating loss increased to $5.4 million, compared to $187,000 from the prior year’s fiscal quarter, and for the nine months ending June 30, 2021, our non-GAAP adjusted operating loss decreased by 15.2% to $8.5 million compared to $10.1 million for the prior year’s nine month period.
- Net income attributable to common shareholders for the third quarter of fiscal 2021 was approximately $977,000, or $0.02 per share, as compared to net loss of approximately $9.1 million, or $(0.18) per share from the prior year’s third fiscal quarter. Our net income attributable to common shareholders was principally attributable to a decrease of approximately $6.9 million in the non-cash contingent liability which is associated with earnout shares which may be issued under the terms of the December 2018 acquisition of Cure Based Development (which owned the cbdMD brand).
- As of June 30, 2021, we had working capital of approximately $23.2 million and cash on hand of approximately $18.9 million as compared to working capital of approximately $16.0 million and cash on hand of approximately $14.8 million at September 30, 2020.
- Due to production delays from vendors on new product launches, we are now are revising our net sales guidance for the first quarter of fiscal 2022 ending December 31, 2021 from range of $15.5 million to $16.25 million to range of $14.9 million to $15.5 million, or 20-25% YOY sales growth for the December, 2021 quarter.
Business highlights since the start of the third quarter of fiscal 2021 include :
- Expanded upon our award-winning sleep products, adding higher CBD strength tinctures and soft gels with additional levels of CBN.
- Launched cbdMD Therapeutics subsidiary to advance cannabinoid science and clinical studies and launched an initial animal health study in collaboration with Colorado State University’s Veterinary Program to study impact of our proprietary CBD on osteoarthritis.
- Renewed our NSF certification; underwent the US Hemp Authority audit, receiving our seal of approval on May 10, 2021; underwent the National Animal Supplement Council (NASC) audit, receiving their prestigious Quality Seal of approval early August 2021.
- Signed an exclusive sponsorship agreement as the Official CBD Partner of the NOBULL CrossFit Games.
- Signed a sponsorship agreement with Master Champion and 9 Time PGA Tour Winner, Patrick Reed, who is now on Team cbdMD.
- Extended our partnership with Bellator MMA.
- Closed on the public offering of 8.0% Series A Cumulative Convertible Preferred Stock for total gross proceeds of $16.5 Million .
- Acquired directcbdonline.com, adding a leading CBD marketplace, an online seller of CBD brands and products, providing access to their customer intelligence and database.
- Announced the addition of new role of Chief Revenue Officer.
“We continue to build upon our success and develop our science and infrastructure, which we believe will drive shareholder value and separate our brands from our competition. We believe that our proven ability to innovate our marketing as well as deliver award winning products to our consumers will achieve significant and lasting market brand recognition and consumer acceptance for our cbdMD, Paw CBD and cbdMD Botanicals brands,” said Martin Sumichrast, Chairman and Co-CEO of cbdMD, Inc.
cbdMD, Inc. will host a conference call at 4:15 p.m., Eastern time, on Thursday, August 12, 2021, to discuss the company’s third quarter fiscal 2021 financial results and business progress.
CONFERENCE CALL DETAILS
|
|
| Title: |
| cbdMD Second Quarter 2021 Earnings Call |
| Event Date: |
| Thursday, August 12, 2021 - 4:15 PM Eastern Time |
| Event Link: |
| Webcast URL |
| Webcast Replay Expiration: |
| Thursday, August 12, 2022 |
|
|
| Participant Numbers: |
| Toll Free: 888-506-0062 Entry code (not required): 233626 |
| Replay Number: |
| Toll Free: 877-481-4010 |
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-free 1 CBD products. Our cbdMD brand currently includes over 130 SKUs of high-grade, premium CBD products including CBD tinctures, CBD gummies, CBD topicals, CBD capsules, CBD bath bombs, CBD bath salts, CBD sleep aids and CBD drink mixes. Our Paw CBD brand of pet products includes over 45 SKUs of veterinarian-formulated products including tinctures, chews, topicals products in varying strengths, and our CBD Botanicals brand of beauty and skincare products features 15 SKUs, including facial oil and serum, toners, moisturizers, clear skin, facial masks, exfoliants and body care. To learn more about cbdMD and their comprehensive line of U.S. grown, THC-free 1 CBD oil products, please visit www.cbdmd.com , follow cbdMD on Instagram and Facebook, or visit one of the 6,000 retail outlets that carry cbdMD products.
1 THC-free is defined as below the level of detection using validated scientific analytical methods.
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 by the use of 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 and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements 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, 2020 as filed with the Securities and Exchange Commission (the "SEC") on December 22, 2020, Item 1A. Risk Factors, contained in our Quarterly Report on Form 10-Q for the period ended June 30, 2021 as filed with the SEC on August 12, 2021 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.
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 |
| June 30, 2021 AND SEPTEMBER 30, 2020 |
| (Unaudited) |
| June 30, |
| September 30, |
| 2021 |
| 2020 |
| Assets |
| Current assets: |
| Cash and cash equivalents |
| $ |
| 18,984,012 |
|
|
| $ |
| 14,824,644 |
| Accounts receivable |
|
|
| 1,467,598 |
|
|
|
|
| 911,482 |
| Accounts receivable – discontinued operations |
|
|
| 18,467 |
|
|
|
|
| 447,134 |
| Marketable securities |
|
|
| 13,412 |
|
|
|
|
| 26,472 |
| Investment other securities |
|
|
| 1,000,000 |
|
|
|
|
| 250,000 |
| Inventory |
|
|
| 4,738,418 |
|
|
|
|
| 4,603,360 |
| Inventory prepaid |
|
|
| 673,588 |
|
|
|
|
| 288,178 |
| Prepaid software |
|
|
| - |
|
|
|
|
| 174,308 |
| Prepaid sponsorship |
|
|
| 1,628,418 |
|
|
|
|
| 1,203,300 |
| Prepaid expenses and other current assets |
|
|
| 1,459,300 |
|
|
|
|
| 983,374 |
| Total current assets |
|
|
| 29,983,213 |
|
|
|
|
| 23,712,252 |
|
|
|
|
|
|
| Other assets: |
|
|
|
|
|
|
| Property and equipment, net |
|
|
| 2,775,203 |
|
|
|
|
| 3,183,487 |
| Operating lease assets |
|
|
| 5,929,300 |
|
|
|
|
| 6,851,357 |
| Deposits for facilities |
|
|
| 529,583 |
|
|
|
|
| 790,708 |
| Intangible assets, net |
|
|
| 21,635,000 |
|
|
|
|
| 21,635,000 |
| Goodwill |
|
|
| 54,669,997 |
|
|
|
|
| 54,669,997 |
| Total other assets |
|
|
| 85,539,083 |
|
|
|
|
| 87,130,549 |
|
|
|
|
|
|
| Total assets |
| $ |
| 115,522,296 |
|
|
| $ |
| 110,842,801 |
| CONDENSED CONSOLIDATED BALANCE SHEETS |
| JUNE 30, 2021 AND SEPTEMBER 30, 2020 |
| (continued) |
| (Unaudited) |
| June 30, |
| September 30, |
| 2021 |
| 2020 |
| Liabilities and shareholders' equity |
| Current liabilities: |
| Accounts payable |
| $ |
| 3,144,380 |
|
|
|
|
| $ |
| 2,850,421 |
|
|
| Deferred revenue |
|
|
| 755 |
|
|
|
|
|
|
| - |
|
|
| Accrued expenses |
|
|
| 2,362,024 |
|
|
|
|
|
|
| 2,769,920 |
|
|
| Operating leases – current portion |
|
|
| 1,184,839 |
|
|
|
|
|
|
| 1,159,098 |
|
|
| Paycheck Protection Program loan, current portion |
|
|
| - |
|
|
|
|
|
|
| 854,000 |
|
|
| Note payable |
|
|
| 58,488 |
|
|
|
|
|
|
| 55,639 |
|
|
| Total current liabilities |
|
|
| 6,750,486 |
|
|
|
|
|
|
| 7,689,078 |
|
|
|
|
|
|
|
|
| Long term liabilities: |
|
|
|
|
|
|
| Long term liabilities |
|
|
| 124,226 |
|
|
|
|
|
|
| 264,367 |
|
|
| Paycheck Protection Program loan |
|
|
| - |
|
|
|
|
|
|
| 602,100 |
|
|
| Operating leases - long term portion |
|
|
| 5,137,552 |
|
|
|
|
|
|
| 6,010,208 |
|
|
| Contingent liability |
|
|
| 7,751,104 |
|
|
|
|
|
|
| 16,200,000 |
|
|
| Deferred tax liability |
|
|
| 130,000 |
|
|
|
|
|
|
| 895,000 |
|
|
| Total long term liabilities |
|
|
| 13,142,882 |
|
|
|
|
|
|
| 23,971,675 |
|
|
|
|
|
|
|
|
| Total liabilities |
|
|
| 19,893,368 |
|
|
|
|
|
|
| 31,660,753 |
|
|
|
|
|
|
|
|
| cbdMD, Inc. shareholders' equity: |
|
|
|
|
|
|
| Preferred stock, authorized 50,000,000 shares, $0.001 par value, 2,800,000 and 500,000 shares issued and outstanding, respectively |
|
|
| 2,800 |
|
|
|
|
|
|
| 500 |
|
|
| Common stock, authorized 150,000,000 shares, $0.001 par value, 56,973,815 and 52,130,870 shares issued and outstanding, respectively |
|
|
| 56,974 |
|
|
|
|
|
|
| 52,131 |
|
|
| Additional paid in capital |
|
|
| 158,198,042 |
|
|
|
|
|
|
| 126,517,784 |
|
|
| Accumulated deficit |
|
|
| (62,628,889 |
| ) |
|
|
|
|
| (47,388,367 |
| ) |
| Total cbdMD, Inc. shareholders' equity |
|
|
| 95,628,927 |
|
|
|
|
|
|
| 79,182,048 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Total liabilities and shareholders' equity |
| $ |
| 115,522,295 |
|
|
|
|
| $ |
| 110,842,801 |
|
|
| cbdMD, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
| FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2021 and 2020 |
| Three Months |
| Three Months |
| Nine Months |
| Nine Months |
| Ended |
| Ended |
| Ended |
| Ended |
| June 30, |
| June 30, |
| June 30, |
| June 30, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Gross Sales |
| $ |
| 11,352,585 |
|
|
| $ |
| 10,809,387 |
|
|
| $ |
| 36,941,917 |
|
|
| $ |
| 30,925,678 |
|
|
| Allowances |
|
|
| (792,062 |
| ) |
|
|
| (172,842 |
| ) |
|
|
| (2,254,481 |
| ) |
|
|
| (741,861 |
| ) |
| Total Net Sales |
|
|
| 10,560,523 |
|
|
|
|
| 10,636,545 |
|
|
|
|
| 34,687,436 |
|
|
|
|
| 30,183,817 |
|
|
| Cost of sales |
|
|
| 3,370,952 |
|
|
|
|
| 3,748,024 |
|
|
|
|
| 10,444,353 |
|
|
|
|
| 10,180,637 |
|
|
| Gross Profit |
|
|
| 7,189,571 |
|
|
|
|
| 6,888,521 |
|
|
|
|
| 24,243,083 |
|
|
|
|
| 20,003,180 |
|
|
| Operating expenses |
|
|
| 13,865,191 |
|
|
|
|
| 8,226,029 |
|
|
|
|
| 36,846,371 |
|
|
|
|
| 33,053,962 |
|
|
| (Loss) from operations |
|
|
| (6,675,620 |
| ) |
|
|
| (1,337,508 |
| ) |
|
|
| (12,603,288 |
| ) |
|
|
| (13,050,782 |
| ) |
| Realized and Unrealized gain (loss) on marketable and other securities, including impairments |
|
|
| (18,623 |
| ) |
|
|
| (30,849 |
| ) |
|
|
| 526,940 |
|
|
|
|
| (906,011 |
| ) |
| Gain (loss) on extinguishment of debt |
|
|
| 1,466,113 |
|
|
|
|
| - |
|
|
|
|
| 1,466,113 |
|
|
|
|
| - |
|
|
| (Increase) decrease of contingent liability |
|
|
| 6,871,000 |
|
|
|
|
| (7,580,000 |
| ) |
|
|
| (10,500,000 |
| ) |
|
|
| 30,580,000 |
|
|
| Interest (expense) income |
|
|
| (2,582 |
| ) |
|
|
| 3,436 |
|
|
|
|
| (23,573 |
| ) |
|
|
| 46,311 |
|
|
| Income (loss) before provision for income taxes |
|
|
| 1,640,288 |
|
|
|
|
| (8,944,921 |
| ) |
|
|
| (21,133,808 |
| ) |
|
|
| 16,669,518 |
|
|
| Benefit for income taxes |
|
|
| (103,000 |
| ) |
|
|
| - |
|
|
|
|
| 765,000 |
|
|
|
|
| 2,240,300 |
|
|
| Net (Loss) Income from continuing operations |
|
|
| 1,537,288 |
|
|
|
|
| (8,944,921 |
| ) |
|
|
| (20,368,808 |
| ) |
|
|
| 18,909,818 |
|
|
| Net (Loss) from discontinued operations, net of tax (Note 14) |
|
|
| - |
|
|
|
|
| (7,781 |
| ) |
|
|
| - |
|
|
|
|
| (48,983 |
| ) |
| Net (Loss) Income |
|
|
| 1,537,288 |
|
|
|
|
| (8,952,702 |
| ) |
|
|
| (20,368,808 |
| ) |
|
|
| 18,860,835 |
|
|
| Preferred dividends |
|
|
| 560,281 |
|
|
|
|
| 100,050 |
|
|
|
|
| 1,220,610 |
|
|
|
|
| 266,800 |
|
|
| Net (Loss) Income attributable to cbdMD, Inc. common shareholders |
| $ |
| 977,007 |
|
|
| $ |
| (9,052,752 |
| ) |
| $ |
| (21,589,418 |
| ) |
| $ |
| 18,594,035 |
|
|
| Net (Loss) Income per share: |
| Basic earnings per share |
|
|
| 0.02 |
|
|
|
|
| (0.18 |
| ) |
|
|
| (0.43 |
| ) |
|
|
| 0.45 |
|
|
| Diluted earnings per share |
|
|
| 0.02 |
|
|
|
|
| - |
|
|
|
|
| (0.43 |
| ) |
|
|
| 0.44 |
|
|
| Weighted average number of shares Basic: |
|
|
| 56,676,326 |
|
|
|
|
| 51,335,648 |
|
|
|
|
| 52,793,872 |
|
|
|
|
| 41,411,261 |
|
|
| Weighted average number of shares Diluted: |
|
|
| 61,431,643 |
|
|
|
|
| - |
|
|
|
|
| 52,793,872 |
|
|
|
|
| 42,534,519 |
|
|
| cbdMD, INC. |
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) |
| FOR THE THREE AND NINE MONTHS ENDED JUNE 30, 2021 AND 2020 |
| (Unaudited) |
| Three Months |
| Three Months |
| Nine Months |
| Nine Months |
| Ended |
| Ended |
| Ended |
| Ended |
| June 30, |
| June 30, |
| June 30, |
| June 30, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| Net (Loss) Income |
| $ |
| 1,537,288 |
|
|
| $ |
| (8,952,702 |
| ) |
| $ |
| (20,368,808 |
| ) |
| $ |
| 18,860,835 |
|
|
| Comprehensive (Loss) Income |
|
|
| 1,537,288 |
|
|
|
|
| (8,952,702 |
| ) |
|
|
| (20,368,808 |
| ) |
|
|
| 18,860,835 |
|
|
| Preferred dividends |
|
|
| (560,281 |
| ) |
|
|
| (100,050 |
| ) |
|
|
| (1,220,610 |
| ) |
|
|
| (266,800 |
| ) |
| Comprehensive (Loss) Income attributable to cbdMD, inc. common shareholders |
| $ |
| 977,007 |
|
|
| $ |
| (9,052,752 |
| ) |
| $ |
| (21,589,418 |
| ) |
| $ |
| 18,594,035 |
|
|
| cbdMD, INC. |
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
| FOR THE NINE MONTHS ENDED JUNE 30, 2021 AND 2020 |
| (unaudited) |
| Nine Months |
| Nine Months |
| Ended |
| Ended |
| June 30, |
| June 30, |
| 2021 |
| 2020 |
| Cash flows from operating activities: |
| Net (Loss) Income |
| $ |
| (20,368,808 |
| ) |
| $ |
| 18,860,835 |
|
|
| Adjustments to reconcile net (income) loss to net cash used by operating activities: |
| Stock based compensation |
|
|
| 807,523 |
|
|
|
|
| 1,391,271 |
|
|
| Restricted stock expense |
|
|
| 1,137,583 |
|
|
|
|
| 138,001 |
|
|
| Marketing stock amortization |
|
|
| 660,232 |
|
|
|
|
| - |
|
|
| Issuance of stock / warrants for service |
|
|
| 98,605 |
|
|
|
|
| 84,450 |
|
|
| Inventory and materials impairment |
|
|
| - |
|
|
|
|
| 233,372 |
|
|
| Impairment on discontinued operations asset |
|
|
| - |
|
|
|
|
| 45,783 |
|
|
| Depreciation and amortization |
|
|
| 719,856 |
|
|
|
|
| 499,394 |
|
|
| Other than temporary impairment other securities and other accounts receivable |
|
|
| - |
|
|
|
|
| 760,000 |
|
|
| Increase/(Decrease) in contingent liability |
|
|
| 10,500,000 |
|
|
|
|
| (30,580,000 |
| ) |
| Realized and unrealized loss of Marketable and other securities |
|
|
| (526,939 |
| ) |
|
|
| 146,011 |
|
|
| Merchant reserve settlement |
|
|
| - |
|
|
|
|
| 132,657 |
|
|
| Termination benefit |
|
|
| 495,568 |
|
|
|
|
| - |
|
|
| Extinguishment of Paycheck Protection Program Loan |
|
|
| (1,466,113 |
| ) |
|
|
| - |
|
|
| Non-cash lease expense |
|
|
| 922,057 |
|
|
|
|
| 878,986 |
|
|
| Changes in operating assets and liabilities: |
| Accounts receivable |
|
|
| (556,116 |
| ) |
|
|
| 710,629 |
|
|
| Deposits |
|
|
| 261,125 |
|
|
|
|
| (147,166 |
| ) |
| Merchant reserve |
|
|
| - |
|
|
|
|
| 386,912 |
|
|
| Inventory |
|
|
| (135,058 |
| ) |
|
|
| (2,329,112 |
| ) |
| Prepaid inventory |
|
|
| (385,410 |
| ) |
|
|
| 621,573 |
|
|
| Prepaid expenses and other current assets |
|
|
| (141,393 |
| ) |
|
|
| 1,007,374 |
|
|
| Accounts payable and accrued expenses |
|
|
| (603,216 |
| ) |
|
|
| (480,424 |
| ) |
| Operating lease liability |
|
|
| (846,914 |
| ) |
|
|
| (766,289 |
| ) |
| Note payable |
|
|
| - |
|
|
|
|
| 42,968 |
|
|
| Deferred revenue / customer deposits |
|
|
| 4,478 |
|
|
|
|
| (7,339 |
| ) |
| Collection on discontinued operations accounts receivable |
|
|
| 428,667 |
|
|
|
|
| 333,333 |
|
|
| Deferred tax liability |
|
|
| (765,000 |
| ) |
|
|
| (2,240,300 |
| ) |
| Cash used by operating activities |
|
|
| (9,759,273 |
| ) |
|
|
| (10,277,081 |
| ) |
| Cash flows from investing activities: |
| Purchase of other investment securities |
|
|
| (210,000 |
| ) |
|
|
| - |
|
|
| Purchase of property and equipment |
|
|
| (311,572 |
| ) |
|
|
| (1,851,746 |
| ) |
| Cash provided (used) by investing activities |
|
|
| (521,572 |
| ) |
|
|
| (1,851,746 |
| ) |
| Cash flows from financing activities: |
| Proceeds from issuance of common stock |
|
|
| - |
|
|
|
|
| 16,771,756 |
|
|
| Proceeds from issuance of preferred stock |
|
|
| 15,798,115 |
|
|
|
|
| 4,421,928 |
|
|
| Paycheck Protection Program Loan |
|
|
| - |
|
|
|
|
| 1,456,100 |
|
|
| Note payable |
|
|
| (137,292 |
| ) |
|
|
| - |
|
|
| Preferred dividend distribution |
|
|
| (1,220,610 |
| ) |
|
|
| (266,800 |
| ) |
| Deferred issuance costs |
|
|
| - |
|
|
|
|
| 62,197 |
|
|
| Cash provided by financing activities |
|
|
| 14,440,213 |
|
|
|
|
| 22,445,181 |
|
|
| Net increase (decrease) in cash |
|
|
| 4,159,368 |
|
|
|
|
| 10,316,354 |
|
|
| Cash and cash equivalents, beginning of period |
|
|
| 14,824,644 |
|
|
|
|
| 4,689,966 |
|
|
| Cash and cash equivalents, end of period |
| $ |
| 18,984,012 |
|
|
| $ |
| 15,006,320 |
|
|
| Supplemental Disclosures of Cash Flow Information: |
| Nine Months |
| Nine Months |
| Ended |
| Ended |
| June 30, |
| June 30, |
| 2021 |
| 2020 |
| Cash Payments for: |
| Interest expense |
| $ |
| 23,573 |
|
|
| $ |
| 26,126 |
|
|
| Non-cash financial activities: |
| Issuance of Contingent earnout shares: |
| $ |
| 12,600,000 |
|
|
| $ |
| - |
|
|
| Warrants issued to representative |
| $ |
| 254,950 |
|
|
| $ |
| 524,113 |
|
|
| cbdMD, Inc. |
| SUPPLEMENTAL FINANCIAL INFORMATION |
| RECONCILIATION OF NON-GAAP ADJUSTED INCOME (LOSS) FROM OPERATIONS |
| Three Months |
| Three Months |
| Nine Months |
| Nine Months |
| Ended |
| Ended |
| Ended |
| Ended |
| June 30, |
| June 30, |
| June 30, |
| June 30, |
| 2021 |
| 2020 |
| 2021 |
| 2020 |
| (Unaudited) |
| GAAP (loss) from operations |
| $ |
| (6,675,620 |
| ) |
| $ |
| (1,337,508 |
| ) |
| $ |
| (12,603,288 |
| ) |
|
|
| (13,050,782 |
| ) |
| Adjustments: |
| Depreciation |
|
|
| 246,533 |
|
|
|
|
| 211,937 |
|
|
|
|
| 719,856 |
|
|
|
|
| 499,394 |
|
|
| Employee and director stock compensation (1) |
|
|
| 959,319 |
|
|
|
|
| 388,185 |
|
|
|
|
| 2,049,326 |
|
|
|
|
| 1,447,861 |
|
|
| Other non-cash stock compensation for services (2) |
|
|
| 28,650 |
|
|
|
|
| - |
|
|
|
|
| 97,721 |
|
|
|
|
| 97,721 |
|
|
| Inventory adjustment (3) |
|
|
| - |
|
|
|
|
| 316,922 |
|
|
|
|
| - |
|
|
|
|
| 483,315 |
|
|
| One-time abnormal inventory adjustment (4) |
|
|
| 50,000 |
|
|
|
|
| 233,373 |
|
|
|
|
| 50,000 |
|
|
|
|
| 233,373 |
|
|
| Accrual for severance |
|
|
| - |
|
|
|
|
| - |
|
|
|
|
| 703,022 |
|
|
|
|
| - |
|
|
| Accrual / expenses for discretionary bonus |
|
|
| 150,000 |
|
|
|
|
| - |
|
|
|
|
| 450,000 |
|
|
|
|
| 222,500 |
|
|
| Non-GAAP adjusted (loss) from operations |
| $ |
| (5,391,118 |
| ) |
| $ |
| (187,091 |
| ) |
| $ |
| (8,533,363 |
| ) |
| $ |
| (10,066,619 |
| ) |
(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 adjustment after performing a physical inventory account.
(4) Represents an operating expense related to inventory loss related to regulatory changes impacting labels and packaging
View source version on businesswire.com: https://www.businesswire.com/news/home/20210812005794/en/
PR:
5W Public Relations
cbdMD@5wpr.com
(212) 999-5585
Investors:
cbdMD, Inc.
John Weston
Director of Investor Relations
John.Weston@cbdMD.com
(704) 249-9515