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cbdMD Inc. (YCBD+0.27%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing includes financial statements for the quarter, showing total net sales of $5.1 million, a decrease from $5.4 million in the same quarter of the previous year. This decrease is attributed to a reduction in e-commerce sales, although wholesale sales saw an increase.
Cost of sales for the quarter was $1.7 million, representing 33.5% of net sales, compared to 33.8% in the same quarter of the previous year. The slight decrease in cost of sales is attributed to ongoing cost-saving initiatives.
The company reported an operating loss of $86,272 for the quarter, compared to a loss of $1,065,835 in the previous year, with the improvement attributed to reduced operating expenses.
Net income for the quarter was $15,095, compared to a net loss of $996,501 in the previous year. After preferred dividends, the net loss attributable to common shareholders was $1,011,596, compared to $1,997,002 in the previous year.
Cash and cash equivalents at the end of the period were $1.97 million, down from $2.45 million at the beginning of the period. The decrease in cash is primarily due to cash used in operating and investing activities.
cbdMD had a working capital deficit of $2.8 million as of December 31, 2024. The company acknowledges its dependence on improving profitability and acquiring additional funding to continue as a going concern.
The filing also notes that the company is not in compliance with certain NYSE American continued listing standards, specifically regarding stockholders' equity.
cbdMD continues to focus on product innovation, expanding revenue channels, and exploring international markets as part of its growth strategies.
The company has no commitments for material capital expenditures but has a commitment for cumulative dividends at an annual rate of 8% to its preferred shareholders.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the cbdMD Inc. quarterly 10-Q report dated February 13, 2025. To report an error, please email earnings@qz.com.