8-K
cbdMD, Inc. (YCBD)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 12, 2021
| cbdMD, Inc. | ||
|---|---|---|
| (Exact name of registrant as specified in its charter) | ||
| North Carolina | 001-38299 | 47-3414576 |
| --- | --- | --- |
| (State or other jurisdiction of incorporation or<br>organization) | (Commission File Number) | (I.R.S. Employer Identification No.) |
8845 Red Oak Blvd, Charlotte, NC 28217
(Address of principal executive offices)(Zip Code)
Registrant's telephone number, including area code: (704) 445-3060
| _______________________________________ |
|---|
| (Former name or former address, if changed since last<br>report) |
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
|---|---|---|
| common | YCBD | NYSE<br>American |
| 8.0%<br>Series A Cumulative Convertible Preferred Stock | YCBDpA | NYSE<br>American |
Indicate by check mark whether the registrant is an emerging growth company as defined in in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
| Emerging<br>growth company ☑ |
|---|
If an emerging growth company, indicate by checkmark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operation and Financial Condition .
On May 12, 2021 cbdMD, Inc. issued a press release announcing its second quarter fiscal 2021 results. A copy of this press release is furnished as Exhibit 99.1 to this report.
Pursuant to General Instruction B.2 of Form 8-K, the information in this Item 2.02 of Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor is it incorporated by reference into any filing of cbdMD, Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 7.01 Regulation FD Disclosure.
On May 12, 2021 cbdMD, Inc. issued a press release announcing its second quarter fiscal 2021 results. A copy of this press release is furnished as Exhibit 99.1 to this report.
Pursuant to General Instruction B.2 of Form 8-K, the information in this Item 7.01 of Form 8-K, including Exhibit 99.1, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 or otherwise be subject to the liabilities of that section, nor is it incorporated by reference into any filing of cbdMD, Inc. under the Securities Act of 1933 or the Securities Exchange Act of 1934, whether made before or after the date hereof, regardless of any general incorporation language in such filing.
Item 9.01 Financial Statements and Exhibits.
(d)
Exhibits.
| Incorporated by Reference | Filed or<br><br><br>Furnished<br><br><br>Herewith | ||||
|---|---|---|---|---|---|
| No. | Exhibit Description | Form | Date Filed | Number | |
| 99.1 | Press<br>release dated May 12, 2021 | Furnished |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| cbdMD,<br>Inc. | ||
|---|---|---|
| Date:<br>May 12, 2021 | By: | /s/ T.<br>Ronan Kennedy |
| T.<br>Ronan Kennedy, Chief Financial Officer |
ycbd_1x991
cbdMD Reports Second Quarter Fiscal 2021 Results
YOY Net Sales Increased 26% for the March 2021 Quarter
Resulting in a Record Trailing Twelve Month Net Sales Of Over $46.4 Million
Company Expects Q1 Fiscal 2022 Net Sales to Range from $15.5 million to $16.25 million
CHARLOTTE, NC—May 12, 2021—(Business Wire)-- 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 second quarter and six months ended March 31, 2021.
Financial highlights for the Quarter Ended March 31, 2021:
●
Net sales of $11.8 million for the second quarter of fiscal 2021 increased by 26% year-over-year from $9.4 million in the second quarter of fiscal 2020 for a record high for the March quarter.
●
Gross profit margin for the second quarter of fiscal 2021 remained strong at approximately 69%, down slightly from 71% in the prior year’s second quarter.
●
E-commerce direct-to-consumer net sales were $8.4 million, an increase of 23.3% from the prior year’s second fiscal quarter.
●
Wholesale (including brick and mortar retail customers) net sales were $3.4 million, an increase of 31.3% from the prior year’s second fiscal quarter.
●
Paw CBD (our award-winning CBD pet brand) had net sales of $1.4 million, an increase of 84% from the prior year’s second fiscal quarter.
●
Quarterly operating expenses for the second quarter of fiscal 2021 remained relatively constant as compared to the second quarter of fiscal 2020 at $12.3 million.
●
Loss from operations decreased by 25.6% to $4.1 million for the second quarter of fiscal 2021 compared to $5.6 million from the prior year’s second fiscal quarter.
●
Non-GAAP adjusted operating loss decreased by 44% to $2.7 million, compared to $4.9 million from the prior year’s quarter, and for the six months ending March 31, 2021, our non-GAAP adjusted operating loss decreased by 67% to $3.3 million compared to $9.9 million for the prior year’s period.
●
Net loss attributable to common shareholders for the second quarter of fiscal 2021 was approximately $13.1 million, or ($0.24) per share, as compared to net income of approximately $14.8 million, or $0.41 per share from the prior year’s second fiscal quarter. Our net loss attributable to common shareholders was principally attributable to an increase of approximately $8.9 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 March 31, 2021, we had working capital of approximately $27.9 million and cash on hand of approximately $23.7 million as compared to working capital of approximately $16.0 million and cash on hand of approximately $14.8 million at September 30, 2020.
Business highlights since the start of the second quarter of fiscal 2021 include:
●
Entered Global Beauty and Skincare Market with the launch of cbdMD Botanicals.
●
Successfully implemented NetSuite as our new ERP.
●
Launched cbdMD Therapeutics subsidiary to advance cannabinoid science and clinical studies.
●
Hired Dr. Sibyl Swift, Former FDA to Co-Chair cbdMD Therapeutics.
●
Invested an additional $750,000 (total investment of $1 million) into ADRA Acquisition Corporation (SPAC), prior to its successful IPO of $115,000,000 (NYSE American:ADRA).
●
Renewed our NSF certification and underwent the US Hemp Authority audit, receiving our seal of approval on May 10, 2021.
●
Developed new merchant processing relationships, expected cost savings starting third quarter of fiscal 2021.
●
Expanded our portfolio of TV commercials to include Paw CBD and developed a new TV campaign that launched April 1, 2021.
●
Continued to strengthen our portfolio of strategic athlete and sponsorship programs, including Professional rally driver megastar Ken Block.
●
Signed an exclusive sponsorship agreement to be 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.
●
Won 2021 Product of the Year Awards for cbdMD’s CBD Gummies and Paw CBD’s CBD Hard Chews for Dogs.
“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 Wednesday, May 12, 2021, to discuss the company’s first quarter fiscal 2021 financial results and business progress.
CONFERENCE CALL DETAILS
| Title: | cbdMD<br>Second Quarter 2021 Earnings Call |
|---|---|
| Event Date: | Wednesday,<br>May 12, 2021 - 4:15 PM Eastern Time |
| Event Link: | Webcast URL https://www.webcaster4.com/Webcast/Page/2206/41216 |
| Webcast Replay Expiration: | Thursday,<br>May 12, 2022 |
| Participant Numbers: | Toll<br>Free: 888-506-0062International: 973-528-0011<br><br><br>Entry<br>code (not required): 233626 |
| Replay Number: | Toll<br>Free: 877-481-4010International: 919-882-2331Replay Passcode:<br>41216 |
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-free1 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-free1 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, including, but not limited to, our ability to achieve our first quarter fiscal 2022 net sales guidance. 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 March 31, 2021 as filed with the SEC on May 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 | ||
| MARCH 31, 2021 AND SEPTEMBER 30, 2020 | ||
| (Unaudited) | ||
| --- | --- | --- |
| March 31, | September 30, | |
| 2021 | 2020 | |
| Assets | ||
| Current<br>assets: | ||
| Cash<br>and cash equivalents | $23,711,600 | $14,824,644 |
| Accounts<br>receivable | 1,848,465 | 911,482 |
| Accounts<br>receivable – discontinued operations | 22,217 | 447,134 |
| Marketable<br>securities | 32,034 | 26,472 |
| Investment<br>other securities | 1,000,000 | 250,000 |
| Inventory | 4,331,545 | 4,603,360 |
| Inventory<br>prepaid | 478,629 | 288,178 |
| Prepaid<br>software | - | 174,308 |
| Prepaid<br>sponsorship | 1,777,304 | 1,203,300 |
| Prepaid<br>expenses and other current assets | 1,544,541 | 983,374 |
| Total current assets | 34,746,335 | 23,712,252 |
| Other<br>assets: | ||
| Property<br>and equipment, net | 2,976,904 | 3,183,487 |
| Operating<br>lease assets | 6,240,059 | 6,851,357 |
| Deposits<br>for facilities | 789,583 | 790,708 |
| Intangible<br>assets, net | 21,635,000 | 21,635,000 |
| Goodwill | 54,669,997 | 54,669,997 |
| Total other assets | 86,311,543 | 87,130,549 |
| Total assets | $121,057,878 | $110,842,801 |
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||
| --- | ||
| MARCH 31, 2021 AND SEPTEMBER 30, 2020 | ||
| (continued) | ||
| --- | --- | |
| September 30, | ||
| 2020 | ||
| Liabilities and shareholders' equity | ||
| Current<br>liabilities: | ||
| Accounts<br>payable | $2,850,421 | |
| Accrued<br>expenses | 2,769,920 | |
| Operating<br>leases – current portion | 1,159,098 | |
| Paycheck<br>Protection Program loan, current portion | 854,000 | |
| Note<br>payable | 55,639 | |
| Total current liabilities | 7,689,078 | |
| Long<br>term liabilities: | ||
| Long<br>term liabilities | 264,367 | |
| Note<br>payable | - | |
| Paycheck<br>Protection Program loan | 602,100 | |
| Operating<br>leases - long term portion | 6,010,208 | |
| Contingent<br>liability | 16,200,000 | |
| Deferred<br>tax liability | 895,000 | |
| Total long term liabilities | 23,971,675 | |
| Total liabilities | 31,660,753 | |
| cbdMD,<br>Inc. shareholders' equity: | ||
| Preferred<br>stock, authorized 50,000,000 shares, 0.001 | ||
| par<br>value, 2,800,000 and 500,000 shares issued and outstanding,<br>respectively | 500 | |
| Common<br>stock, authorized 150,000,000 shares, 0.001 | ||
| par<br>value, 56,337,787 and 52,130,870 shares issued and outstanding,<br>respectively | 52,131 | |
| Additional<br>paid in capital | 126,517,784 | |
| Accumulated<br>deficit | (47,388,367) | |
| Total cbdMD, Inc. shareholders' equity | 79,182,048 | |
| Total liabilities and shareholders' equity | $110,842,801 |
All values are in US Dollars.
| cbdMD, INC. | ||||
|---|---|---|---|---|
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| FOR THE THREE AND SIX MONTHS ENDED MARCH 31, 2021 and<br>2020 | ||||
| Three Months | Three Months | Six Months | Six Months | |
| --- | --- | --- | --- | --- |
| Ended | Ended | Ended | Ended | |
| March 31, | March 31, | March 31, | March 31, | |
| 2021 | 2020 | 2021 | 2020 | |
| Gross<br>Sales | $12,457,386 | $9,703,800 | $25,520,568 | $20,116,291 |
| Allowances | (658,775) | (304,764) | (1,393,654) | (569,019) |
| Total Net Sales | 11,798,611 | 9,399,036 | 24,126,914 | 19,547,272 |
| Cost<br>of sales | 3,643,127 | 2,732,076 | 7,073,402 | 6,432,613 |
| Gross Profit | 8,155,484 | 6,666,960 | 17,053,512 | 13,114,659 |
| Operating<br>expenses | 12,323,207 | 12,267,637 | 22,981,180 | 24,827,934 |
| (Loss) from<br>operations | (4,167,723) | (5,600,677) | (5,927,668) | (11,713,275) |
| Realized<br>and Unrealized gain (loss) on marketable and other securities,<br>including impairments | 2,852 | (813,152) | 545,562 | (875,162) |
| (Increase)<br>decrease of contingent liability | (8,871,000) | 21,261,994 | (17,371,000) | 38,160,000 |
| Interest<br>(expense) income | (10,603) | 35,607 | (20,990) | 42,875 |
| Income (loss) before provision for income taxes | (13,046,474) | 14,883,772 | (22,774,096) | 25,614,438 |
| Benefit<br>for income taxes | 536,000 | - | 868,000 | 2,240,300 |
| Net (Loss) Income from continuing operations | (12,510,474) | 14,883,772 | (21,906,096) | 27,854,738 |
| Net (Loss) from discontinued operations, net of tax (Note<br>14) | - | - | - | (41,202) |
| Net (Loss) Income | (12,510,474) | 14,883,772 | (21,906,096) | 27,813,536 |
| Preferred dividends | 560,280 | 100,016 | 660,330 | 166,750 |
| Net (Loss) Income attributable to cbdMD, Inc. common<br>shareholders | $(13,070,754) | $14,783,756 | $(22,566,426) | $27,646,786 |
| Net (Loss) Income per share: | ||||
| Basic<br>earnings per share | (0.24) | 0.41 | (0.43) | 0.76 |
| Diluted<br>earnings per share | (0.24) | 0.40 | (0.43) | 0.74 |
| Weighted<br>average number of shares Basic: | 53,471,607 | 36,503,005 | 52,793,872 | 36,503,005 |
| Weighted<br>average number of shares Diluted: | 53,471,607 | 36,336,505 | 52,793,872 | 37,336,505 |
| cbdMD, INC. | ||||
| --- | ||||
| CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME<br>(LOSS) | ||||
| FOR THE THREE AND SIX MONTHS ENDED DMARCH 31, 2021 AND<br>2020 | ||||
| (Unaudited) | ||||
| Three Months | Three Months | Six Months | Six Months | |
| --- | --- | --- | --- | --- |
| Ended | Ended | Ended | Ended | |
| March 31, | March 31, | March 31, | March 31, | |
| 2021 | 2020 | 2021 | 2020 | |
| Net<br>(Loss) Income | $(12,510,474) | $14,883,772 | $(21,906,096) | $27,813,536 |
| Comprehensive<br>(Loss) Income | (12,510,474) | 14,883,772 | (21,906,096) | 27,813,536 |
| Preferred<br>dividends | (560,280) | (100,016) | (660,330) | (116,750) |
| Comprehensive (Loss) Income attributable to cbdMD, inc. common<br>shareholders | $(13,070,754) | $14,783,756 | $(22,566,426) | $27,696,786 |
| cbdMD, INC. | ||||
| --- | ||||
| CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | ||||
| FOR THE SIX MONTHS ENDED MARCH 31, 2021 AND 2020 | ||||
| (unaudited) | ||||
| Six Months | Six Months | |||
| --- | --- | --- | ||
| Ended | Ended | |||
| March 31, | March 31, | |||
| 2021 | 2020 | |||
| Cash flows from operating activities: | ||||
| Net<br>(Loss) Income | $(21,906,096) | $27,813,536 | ||
| Adjustments to reconcile net (income) loss to net | ||||
| cash used by operating activities: | ||||
| Stock<br>based compensation | 451,527 | 972,225 | ||
| Restricted<br>stock expense | 547,140 | 138,000 | ||
| Issuance<br>of stock / warrants for service | 155,695 | 28,250 | ||
| Impairment<br>on discontinued operations asset | - | 38,002 | ||
| Depreciation<br>and amortization | 473,324 | 287,457 | ||
| Other<br>than temporary impairment other securities and other accounts<br>receivable | - | 760,000 | ||
| Increase/(Decrease)<br>in contingent liability | 17,371,000 | (38,160,000) | ||
| Realized<br>and unrealized loss of Marketable and other securities | (5,562) | 115,162 | ||
| Merchant<br>reserve settlement | - | 132,657 | ||
| Termination<br>benefit | 352,279 | - | ||
| Non-cash<br>lease expense | 611,298 | 585,020 | ||
| Changes in operating assets and liabilities: | ||||
| Accounts<br>receivable | (936,983) | 763,303 | ||
| Deposits | 1,125 | (22,365) | ||
| Merchant<br>reserve | - | 106,590 | ||
| Inventory | 271,815 | (2,270,110) | ||
| Prepaid<br>inventory | (190,451) | 386,149 | ||
| Prepaid<br>expenses and other current assets | 44,408 | 649,308 | ||
| Accounts<br>payable and accrued expenses | (1,366,373) | 849,113 | ||
| Operating<br>lease liability | (540,664) | (496,834) | ||
| Note<br>payable | - | 175,124 | ||
| Deferred<br>revenue / customer deposits | (41,418) | (7,339) | ||
| Collection<br>on discontinued operations accounts receivable | 424,917 | 250,000 | ||
| Deferred<br>tax liability | (868,000) | (2,240,300) | ||
| Cash<br>used by operating activities | (5,151,019) | (9,147,052) | ||
| Cash flows from investing activities: | ||||
| Proceeds<br>from sale of other investment securities | (750,000) | - | ||
| Purchase<br>of property and equipment | (226,542) | (1,796,346) | ||
| Cash<br>provided (used) by investing activities | (976,542) | (1,796,346) | ||
| Cash flows from financing activities: | ||||
| Proceeds<br>from issuance of common stock | - | 16,771,756 | ||
| Proceeds<br>from issuance of preferred stock | 15,798,115 | 4,421,928 | ||
| Note<br>payable | (123,268) | - | ||
| Preferred<br>dividend distribution | (660,330) | (166,750) | ||
| Deferred<br>issuance costs | - | 62,197 | ||
| Cash<br>provided by financing activities | 15,014,517 | 21,089,131 | ||
| Net<br>increase (decrease) in cash | 8,886,956 | 10,145,733 | ||
| Cash<br>and cash equivalents, beginning of period | 14,824,644 | 4,689,966 | ||
| Cash and cash equivalents, end of period | $23,711,600 | $14,835,699 | ||
| Supplemental Disclosures of Cash Flow Information: | ||||
| --- | --- | --- | ||
| Six Months | Six Months | |||
| Ended | Ended | |||
| March 31, | March 31, | |||
| 2021 | 2020 | |||
| Cash<br>Payments for: | ||||
| Interest<br>expense | $7,117 | $17,097 | ||
| Non-cash<br>financial activities: | ||||
| Issuance<br>of Contingent earnout shares: | $11,271,000 | $- | ||
| Warrants<br>issued to representative | $254,950 | $524,113 | ||
| cbdMD, Inc. | ||||
| --- | ||||
| SUPPLEMENTAL FINANCIAL INFORMATION | ||||
| RECONCILIATION OF NON-GAAP ADJUSTED INCOME (LOSS) FROM<br>OPERATIONS | ||||
| Three Months | Three Months | Six Months | Six Months | |
| --- | --- | --- | --- | --- |
| Ended | Ended | Ended | Ended | |
| March 31, | March 31, | March 31, | March 31, | |
| 2021 | 2020 | 2021 | 2020 | |
| (Unaudited) | ||||
| GAAP (loss) from operations | $(4,167,723) | $(5,600,677) | $(5,927,668) | $(11,721,275) |
| Adjustments: | ||||
| Depreciation | 240,517 | 174,205 | 473,323 | 287,457 |
| Employee<br>and director stock compensation (1) | 825,833 | 435,301 | 1,090,007 | 1,115,875 |
| Other<br>non-cash stock compensation for services (2) | 33,358 | 55,479 | 69,071 | 146,548 |
| Accrual<br>for severance | 299,610 | - | 703,022 | - |
| Accrual<br>/ expenses for discretionary bonus | - | - | 300,000 | 222,500 |
| Non-GAAP adjusted (loss) from operations | $(2,768,405) | $(4,935,692) | $(3,292,245) | $(9,948,895) |
(1) Represents non-cash expense related to options and restricted stock expenses that have been amortized during the period.
(2) Represents non-cash expense related to restricted stock expenses that have been amortized during the period.
Contacts
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