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Charlotte's Web Holdings Inc. has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing reveals total revenues of $49.7 million for 2024, a decrease from $63.2 million in 2023. The decline is attributed to reduced sales through the company's web store and the impact of inflation on consumer spending.
Cost of goods sold increased slightly to $28.4 million from $27.6 million the previous year, primarily due to a $4.2 million increase in inventory provisions.
The company reported a gross profit of $21.3 million, down from $35.6 million in 2023, with a gross margin of 42.8% compared to 56.3% in the prior year.
Selling, general, and administrative expenses decreased by 29.6% to $53.2 million, reflecting cost-cutting measures including workforce adjustments and reduced insurance and software expenses.
Charlotte's Web recorded a net loss of $29.8 million for the year, compared to a net loss of $23.8 million in 2023.
The company ended the year with total assets of $113.4 million and long-term liabilities of $70.4 million.
Cash and cash equivalents were reported at $22.6 million, down from $47.8 million at the end of 2023, primarily due to cash used in operating activities and capital expenditures.
The filing also notes the company's continued investment in research and development, including efforts to expand its product line beyond hemp-based products.
Charlotte's Web Holdings Inc. remains focused on reducing negative cash flows from operations and exploring opportunities for long-term growth through strategic partnerships and product innovation.
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 annual 10-K report dated March 19, 2025. To report an error, please email earnings@qz.com.