CV Sciences, Inc. Reports Second Quarter 2024 Financial Results
CV Sciences, Inc. (OTCQB:CVSI) reported its Q2 2024 financial results, showing stable revenue of $4.0 million, consistent with Q2 2023 and Q1 2024. The company achieved a gross margin of 47.0%, its best in 13 quarters, up from 43.3% in Q2 2023. CV Sciences maintained its position as the top-selling hemp extract brand in natural product retail sales. The company acquired Elevated Softgels and appointed Maxim Group as a financial advisor. Despite an operating loss of $0.6 million, this was an improvement from the $1.1 million loss in Q2 2023. CV Sciences reported negative adjusted EBITDA of $6,000, close to break-even, compared to $0.9 million in Q2 2023. The company's cash balance stood at $0.5 million at quarter-end, down from $1.3 million at the end of 2023.
CV Sciences, Inc. (OTCQB:CVSI) ha riportato i risultati finanziari per il secondo trimestre del 2024, mostrando entrate stabili di 4,0 milioni di dollari, in linea con il secondo trimestre del 2023 e il primo trimestre del 2024. L'azienda ha ottenuto un margine lordo del 47,0%, il migliore negli ultimi 13 trimestri, in crescita rispetto al 43,3% del secondo trimestre del 2023. CV Sciences ha mantenuto la sua posizione di marchio di estratto di canapa più venduto nelle vendite al dettaglio di prodotti naturali. L'azienda ha acquisito Elevated Softgels e ha nominato il Maxim Group come consulente finanziario. Nonostante una perdita operativa di 0,6 milioni di dollari, questo rappresenta un miglioramento rispetto alla perdita di 1,1 milioni di dollari nel secondo trimestre del 2023. CV Sciences ha riportato un EBITDA rettificato negativo di 6.000 dollari, vicino al pareggio, rispetto ai 0,9 milioni di dollari del secondo trimestre del 2023. Il saldo di cassa dell'azienda si è attestato a 0,5 milioni di dollari alla fine del trimestre, rispetto ai 1,3 milioni di dollari a fine 2023.
CV Sciences, Inc. (OTCQB:CVSI) informó sus resultados financieros del segundo trimestre de 2024, mostrando ingresos estables de 4.0 millones de dólares, consistente con el segundo trimestre de 2023 y el primer trimestre de 2024. La compañía logró un margen bruto del 47.0%, el mejor en 13 trimestres, superior al 43.3% en el segundo trimestre de 2023. CV Sciences mantuvo su posición como la marca de extracto de cáñamo más vendida en las ventas minoristas de productos naturales. La empresa adquirió Elevated Softgels y nombró a Maxim Group como asesor financiero. A pesar de una pérdida operativa de 0.6 millones de dólares, esto fue una mejora respecto a la pérdida de 1.1 millones de dólares en el segundo trimestre de 2023. CV Sciences reportó un EBITDA ajustado negativo de 6,000 dólares, cerca del punto de equilibrio, en comparación con 0.9 millones de dólares en el segundo trimestre de 2023. El saldo de caja de la compañía fue de 0.5 millones de dólares al final del trimestre, una disminución desde los 1.3 millones de dólares a finales de 2023.
CV Sciences, Inc. (OTCQB:CVSI)는 2024년 2분기 재무 결과를 발표하며 400만 달러의 안정적인 수익을 기록하였고, 이는 2023년 2분기와 2024년 1분기와 일치합니다. 이 회사는 13분기 만에 가장 높은 총 이익률 47.0%을 달성했으며, 이는 2023년 2분기의 43.3%에서 증가한 수치입니다. CV Sciences는 자연 제품 소매 판매에서 최고 판매 대마 추출물 브랜드로 자리매김하였습니다. 이 회사는 Elevated Softgels를 인수하고 Maxim Group을 재정 고문으로 임명했습니다. 60만 달러의 운영 손실에도 불구하고, 이는 2023년 2분기의 110만 달러 손실보다 개선된 결과입니다. CV Sciences는 6,000 달러의 조정 EBITDA 손실을 보고하였으며, 이는 90만 달러인 2023년 2분기와 비교할 때 거의 손익 분기점에 근접한 수치입니다. 이 회사의 현금 잔고는 분기 말 50만 달러로, 2023년 말의 130만 달러에서 감소하였습니다.
CV Sciences, Inc. (OTCQB:CVSI) a annoncé ses résultats financiers du deuxième trimestre 2024, affichant des revenus stables de 4,0 millions de dollars, conformes au deuxième trimestre 2023 et au premier trimestre 2024. L'entreprise a réalisé un marge brute de 47,0%, la meilleure en 13 trimestres, en hausse par rapport à 43,3% au deuxième trimestre 2023. CV Sciences a maintenu sa position de marque d'extrait de chanvre la plus vendue dans les ventes de produits naturels. La société a acquis Elevated Softgels et a nommé le Maxim Group comme conseiller financier. Malgré une perte d'exploitation de 0,6 million de dollars, cela représente une amélioration par rapport à la perte de 1,1 million de dollars enregistrée au deuxième trimestre 2023. CV Sciences a rapporté un EBITDA ajusté négatif de 6 000 dollars, proche de l'équilibre, par rapport à 0,9 million de dollars au deuxième trimestre 2023. La trésorerie de l'entreprise s'élevait à 0,5 million de dollars à la fin du trimestre, en baisse par rapport à 1,3 million de dollars à la fin de 2023.
CV Sciences, Inc. (OTCQB:CVSI) hat seine finanziellen Ergebnisse für das 2. Quartal 2024 bekannt gegeben, mit stabilen Einnahmen von 4,0 Millionen Dollar, die mit dem 2. Quartal 2023 und dem 1. Quartal 2024 übereinstimmen. Das Unternehmen erzielte eine Bruttomarge von 47,0%, die beste seit 13 Quartalen, und stieg von 43,3% im 2. Quartal 2023. CV Sciences behauptete seine Position als die beste verkaufte Hanfextraktmarke im Einzelhandel für Naturprodukte. Das Unternehmen erwarb Elevated Softgels und ernannte die Maxim Group zum Finanzberater. Trotz eines operativen Verlusts von 0,6 Millionen Dollar war dies eine Verbesserung gegenüber dem Verlust von 1,1 Millionen Dollar im 2. Quartal 2023. CV Sciences berichtete von einem negativen angepassten EBITDA von 6.000 Dollar, nahe dem Break-even, im Vergleich zu 0,9 Millionen Dollar im 2. Quartal 2023. Der Bargeldbestand des Unternehmens betrug zum Ende des Quartals 0,5 Millionen Dollar, ein Rückgang von 1,3 Millionen Dollar zum Jahresende 2023.
- Gross margin improved to 47.0%, the best in 13 quarters
- Maintained position as top-selling hemp extract brand in natural product retail
- Acquired Elevated Softgels, expanding manufacturing capabilities
- Reduced operating loss from $1.1 million in Q2 2023 to $0.6 million in Q2 2024
- Negative adjusted EBITDA of only $6,000, close to break-even
- Revenue remained flat at $4.0 million year-over-year
- Cash balance decreased from $1.3 million at end of 2023 to $0.5 million
- Total number of units sold decreased by 12.5% in Q2 2024
- Still operating at a loss, though improved from previous year
Second Quarter 2024 and Recent Financial and Operating Highlights
- Generated revenue of
$4.0 million $4.0 million - Recognized gross margin of
47.0% for second quarter 2024 compared to43.3% for the second quarter 2023 and a sequential improvement from46.3% for the first quarter 2024; - Cash balance of
$0.5 million $1.3 million - Further established number one position as top-selling hemp extract brand in the natural product retail sales channel, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry;
- Generated additional shelve placement and associated revenue after the launch of pet chews for hip and joint health and calming care chews;
- Entered into a financing with Streeterville for net proceeds of
$0.9 million - Recognized an adjusted EBITDA loss of
$6,000 - Acquired Elevated Softgels, a leading manufacturer of encapsulated softgels and tinctures for the supplement and nutrition industry, based in
Colorado ; and - Appointed Maxim Group LLC ("Maxim") as non-exclusive financial advisor and investment banker to provide strategic financial advisory and investment banking services. With the help of Maxim, the Company intends to continue to build an efficient and cost effective consumer products platform and continue to evaluate inbound and outbound merger, sale, acquisition or other options for the Company.
"We are pleased with our second quarter 2024 results. Revenues for our core business remained stable at
Operating Results - Second Quarter 2024 Compared to Second Quarter 2023
Sales for second quarter 2024 were
Conference Call and Webcast
The Company will host a conference call and webcast to discuss these results today at 10:00 am EDT/7:00 am PDT. The webcast of the conference call will be available on the Investor Relations section of the Company's website at https://ir.cvsciences.com/news-events or directly at https://viavid.webcasts.com/starthere.jsp?ei=1676369&tp_key=2c558c26e6. Investors interested in participating in the live call can also dial (877) 407-0784 from the
About CV Sciences, Inc.
CV Sciences, Inc. (OTCQB:CVSI) is a consumer wellness company specializing in nutraceuticals and plant-based foods. The Company's hemp extracts and other proven, science-backed, natural ingredients and products are sold through a range of sales channels from B2B to B2C. The Company's +PlusCBD™ branded products are sold at select retail locations throughout the
Forward Looking Statements
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risk and uncertainties. CV Sciences does not undertake any obligation to publicly update any forward-looking statements, except as required by applicable law. As a result, investors should not place undue reliance on such forward-looking statements.
Contact Information
ir@cvsciences.com
CV SCIENCES, INC. | ||||||||||||||||
Three months ended | Six months ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Product sales, net | $ | 3,954 | $ | 3,966 | $ | 7,956 | $ | 8,114 | ||||||||
Cost of goods sold | 2,094 | 2,248 | 4,243 | 4,614 | ||||||||||||
Gross profit | 1,860 | 1,718 | 3,713 | 3,500 | ||||||||||||
Operating expenses: | ||||||||||||||||
Research and development | 28 | 36 | 64 | 71 | ||||||||||||
Selling, general and administrative | 2,415 | 2,758 | 4,852 | 4,914 | ||||||||||||
Benefit from reversal of accrued payroll taxes | — | — | — | (6,171) | ||||||||||||
Total operating expenses | 2,443 | 2,794 | 4,916 | (1,186) | ||||||||||||
Operating income (loss) | (583) | (1,076) | (1,203) | 4,686 | ||||||||||||
Other expense, net | 1 | 209 | 3 | 265 | ||||||||||||
Income (loss) before income taxes | (584) | (1,285) | (1,206) | 4,421 | ||||||||||||
Income tax expense | — | 3 | 6 | 3 | ||||||||||||
Net income (loss) | $ | (584) | $ | (1,288) | $ | (1,212) | $ | 4,418 | ||||||||
Weighted average common shares outstanding, basic and diluted | 172,418 | 152,599 | 167,823 | 152,353 | ||||||||||||
Net income (loss) per common share, basic and diluted | $ | (0.00) | $ | (0.01) | $ | (0.01) | $ | 0.03 | ||||||||
CV SCIENCES, INC. | ||||||||
June 30, | December 31, 2023 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash | $ | 477 | $ | 1,317 | ||||
Accounts receivable, net | 639 | 431 | ||||||
Inventory | 5,206 | 5,655 | ||||||
Prepaid expenses and other | 410 | 535 | ||||||
Total current assets | 6,732 | 7,938 | ||||||
Property and equipment, net | 666 | 379 | ||||||
Right of use assets | 451 | 167 | ||||||
Intangibles, net | 106 | 78 | ||||||
Goodwill | 729 | 342 | ||||||
Other assets | 202 | 296 | ||||||
Total assets | $ | 8,886 | $ | 9,200 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 2,307 | $ | 2,309 | ||||
Accrued expenses | 3,461 | 3,422 | ||||||
Operating lease liability - current | 234 | 130 | ||||||
Debt | 29 | 254 | ||||||
Total current liabilities | 6,031 | 6,115 | ||||||
Operating lease liability - net of current portion | 233 | 58 | ||||||
Deferred tax liability | 19 | 19 | ||||||
Other liabilities | 95 | 105 | ||||||
Total liabilities | 6,378 | 6,297 | ||||||
Commitments and contingencies | ||||||||
Stockholders' equity | ||||||||
Preferred stock, par value | — | — | ||||||
Common stock, par value | 18 | 16 | ||||||
Additional paid-in capital | 88,291 | 87,464 | ||||||
Accumulated deficit | (85,799) | (84,587) | ||||||
Accumulated other comprehensive income (loss) | (2) | 10 | ||||||
Total stockholders' equity | 2,508 | 2,903 | ||||||
Total liabilities and stockholders' equity | $ | 8,886 | $ | 9,200 | ||||
CV SCIENCES, INC. | ||||||||
Six months ended June 30, | ||||||||
2024 | 2023 | |||||||
OPERATING ACTIVITIES | ||||||||
Net income (loss) | $ | (1,212) | $ | 4,418 | ||||
Adjustments to reconcile net income (loss) to net cash flows provided by (used in) operating activities: | ||||||||
Depreciation and amortization | 139 | 118 | ||||||
Stock-based compensation | 67 | 153 | ||||||
Note discount and interest expense | — | 112 | ||||||
Non-cash lease expense, net | 78 | 53 | ||||||
Benefit from reversal of accrued payroll tax | — | (6,171) | ||||||
Other | 158 | 312 | ||||||
Change in operating assets and liabilities: | ||||||||
Accounts receivable, net | (200) | 148 | ||||||
Inventory | 513 | 727 | ||||||
Prepaid expenses and other | 125 | 2,778 | ||||||
Accounts payable and accrued expenses | (243) | (262) | ||||||
Net cash flows provided by (used in) operating activities | (575) | 2,386 | ||||||
INVESTING ACTIVITIES | ||||||||
Acquisition of business, net of cash acquired | (40) | — | ||||||
Net cash flows used in investing activities | (40) | — | ||||||
FINANCING ACTIVITIES | ||||||||
Repayment of note payable | (50) | (1,117) | ||||||
Repayment of unsecured debt | (173) | (190) | ||||||
Net cash flows used in financing activities | (223) | (1,307) | ||||||
Effect of exchange rate changes on cash | (2) | — | ||||||
Net increase (decrease) in cash | (840) | 1,079 | ||||||
Cash, beginning of period | 1,317 | 611 | ||||||
Cash, end of period | $ | 477 | $ | 1,690 | ||||
Supplemental cash flow disclosures: | ||||||||
Interest paid | $ | 6 | $ | 4 | ||||
Income tax paid | $ | 6 | $ | — | ||||
Supplemental disclosure of non-cash transactions: | ||||||||
Services paid with common stock | $ | 62 | $ | 100 | ||||
Fair value of assets acquired, excluding cash | $ | 447 | $ | — | ||||
Goodwill on acquisition | 393 | — | ||||||
Common stock consideration | (700) | — | ||||||
Contigent consideration | (100) | — | ||||||
Cash paid for acquisition | $ | 40 | $ | — | ||||
Supplemental cash flow disclosures: | ||||||||
Interest paid | $ | 4 | $ | 3 | ||||
Income taxes paid | $ | 6 | $ | — | ||||
Supplemental disclosure of non-cash transactions: | ||||||||
Services paid with common stock | $ | 62 | $ | — | ||||
CV SCIENCES, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)
We prepare our consolidated financial statements in accordance with generally accepted accounting principles for
Adjusted EBITDA is defined by us as EBITDA (net income (loss) plus depreciation, amortization, interest, and income tax expense, further adjusted to exclude certain non-cash expenses and other adjustments as set forth below. We use Adjusted EBITDA because we believe it more clearly highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since Adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.
We use Adjusted EBITDA in communicating certain aspects of our results and performance, including in this press release, and believe that Adjusted EBITDA, when viewed in conjunction with our GAAP results and the accompanying reconciliation, can provide investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of Adjusted EBITDA is useful to investors in making period-to-period comparison of results because the adjustments to GAAP are not reflective of our core business performance.
A reconciliation from our GAAP net income (loss) to non-GAAP net loss for the three and six months ended June 30, 2024 and 2023 is detailed below (in thousands, except per share data):
Three months ended | Six months ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income (loss) - GAAP | $ | (584) | $ | (1,288) | $ | (1,212) | $ | 4,418 | ||||||||
Stock-based compensation (1) | 37 | 35 | 67 | 153 | ||||||||||||
Professional fees associated with legal dispute (2) | 464 | — | 693 | — | ||||||||||||
Benefit from reversal of accrued payroll tax (3) | — | — | — | (6,171) | ||||||||||||
Note discount and interest expense (4) | — | 12 | — | 112 | ||||||||||||
Net loss - non-GAAP | $ | (83) | $ | (1,241) | $ | (452) | $ | (1,488) | ||||||||
Diluted EPS - GAAP | $ | (0.00) | $ | (0.01) | $ | (0.01) | $ | 0.03 | ||||||||
Stock-based compensation (1) | — | — | — | — | ||||||||||||
Professional fees associated with legal dispute (2) | — | — | 0.01 | — | ||||||||||||
Benefit from reversal of accrued payroll tax (3) | — | — | — | (0.04) | ||||||||||||
Note discount and interest expense (4) | — | — | — | — | ||||||||||||
Diluted EPS - non-GAAP | $ | (0.00) | $ | (0.01) | $ | (0.00) | $ | (0.01) | ||||||||
Shares used to calculate diluted EPS - GAAP and non-GAAP | 172,418 | 152,599 | 167,823 | 152,353 | ||||||||||||
(1) | Represents stock-based compensation expense related to stock options awarded to employees and non-executive directors based on the grant date fair value using the Black-Scholes valuation model. | |||||||
(2) | Represents legal and other professional expenses incurred during 2024 associated with the legal dispute with founder. | |||||||
(3) | Represents benefit from reversal of accrued payroll tax associated with RSU release to founder in 2019. | |||||||
(4) | Represents amortization of OID/debt issuance costs and interest expense for convertible notes payable and notes payable. | |||||||
A reconciliation from our net income (loss) to Adjusted EBITDA, a non-GAAP measure, for the three and six months ended June 30, 2024 and 2023 is detailed below (in thousands):
Three months ended | Six months ended | |||||||||||||||
2024 | 2023 | 2024 | 2023 | |||||||||||||
Net income (loss) | $ | (584) | $ | (1,288) | $ | (1,212) | $ | 4,418 | ||||||||
Depreciation expense | 71 | 59 | 130 | 118 | ||||||||||||
Amortization expense | 5 | — | 9 | — | ||||||||||||
Interest expense | 1 | 9 | 3 | 65 | ||||||||||||
Income tax expense | — | 3 | 6 | 3 | ||||||||||||
EBITDA | (507) | (1,217) | (1,064) | 4,604 | ||||||||||||
Stock-based compensation (1) | 37 | 35 | 67 | 153 | ||||||||||||
Professional fees associated with legal dispute (2) | 464 | — | 693 | — | ||||||||||||
Benefit from reversal of accrued payroll tax (3) | — | — | — | (6,171) | ||||||||||||
Adjusted EBITDA | $ | (6) | $ | (1,182) | $ | (304) | $ | (1,414) | ||||||||
(1) | Represents stock-based compensation expense related to stock options awarded to employees and non-executive directors based on the grant date fair value using the Black-Scholes valuation model. | |||||||
(2) | Represents legal and other professional expenses incurred during 2024 associated with the legal dispute with founder. | |||||||
(3) | Represents benefit from reversal of accrued payroll tax associated with RSU release to founder in 2019. | |||||||
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SOURCE CV Sciences, Inc.
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