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Charlotte's Web Holdings, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing a decrease in total revenue to $12,587,000 from $14,294,000 in the same quarter the previous year. This decline is attributed to lower direct-to-consumer and business-to-business sales.
Cost of goods sold decreased to $5,914,000 from $6,365,000 in the same quarter of the previous year. The decrease is primarily due to lower inventory expenses.
The company reported a gross profit of $6,673,000 for the quarter, compared to $7,929,000 in the previous year, with the decline attributed to reduced revenue.
Selling, general, and administrative expenses decreased to $12,693,000 from $19,889,000, primarily due to reduced operating expenses and amortization costs.
Net loss for the quarter was $5,787,000, compared to $15,143,000 in the previous year. The improvement is partially due to gains from changes in the fair value of financial instruments.
Cash used in operating activities was $19,469,000, while cash used in investing and financing activities was $3,598,000 and $133,000, respectively.
Charlotte's Web had total assets of $119,644,000 as of September 30, 2024, with total liabilities of $89,401,000. The company continues to focus on cost management and operational efficiencies.
The filing also details the company's ongoing research and development efforts, including its collaboration with DeFloria LLC for botanical drug development.
Charlotte's Web does not anticipate cash dividend payments to common stockholders in the near future.
The company continues to monitor regulatory developments that may impact its ability to sell certain products in various states.
Charlotte's Web is committed to expanding its product offerings beyond CBD to include a broader range of botanical wellness solutions.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Charlottes Web Holdings Inc quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.