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Material Weakness
A material weakness is a deficiency, or a combination of deficiencies, in internal control over financial reporting, such that there is a reasonable possibility that a material
misstatement of the company’s annual or interim financial statements will not be prevented or detected on a timely basis. The following material weakness has been identified
and included in management's assessment: the Company did not maintain appropriate staffing in its accounting department with the appropriate level of technical expertise,
resulting in insufficient oversight of the financial reporting function. This material weakness was considered in determining the nature, timing, and extent of audit tests applied
in our audit of the consolidated financial statements as of and for the year ended December 31, 2019, of the Company, and this report does not affect our report on such
financial statements.
/s/ DELOITTE & TOUCHE LLP
San Diego, California
March 30, 2020
During the first quarter of 2019, we entered into a Settlement Agreement (the “Settlement Agreement”) with our founder, former President and Chief Executive Officer
("Mona Jr."), pursuant to which we agreed that Mona Jr.’s resignation on January 22, 2019 was for Good Reason (as defined in Mona Jr.’s Employment Agreement) and we
agreed to extend the deadline for Mona Jr.’s exercise of his stock options for a period of five years. In exchange, Mona Jr. agreed that notwithstanding the terms of his
Employment Agreement providing for acceleration of vesting of all stock options and Restricted Stock Units (RSU's) upon a Good Reason resignation, certain of his unvested
stock options would not immediately vest, but rather continue to vest if, and only if, certain of our milestones are achieved related to our drug development efforts. These
stock options were issued in July 2016 (6,000,000 options) and March 2017 (5,000,000 options). We also agreed to mutually release all claims arising out of and related to
Mona Jr.’s resignation and separation from us. As a result of the Settlement Agreement, we recorded stock-based compensation expense related to the accelerated vesting of
the RSU's and the modification of certain stock options of $5.1 million and $2.7 million in the first quarter of 2019, respectively.
In addition, on December 31, 2019, our former Chief Operating Officer and co-founder resigned. We recorded stock-based compensation expense related to the accelerated
vesting of his unvested outstanding options of $1.7 million.
all the people who supported evergreen have gone silent, you know who you are
still no 10q? WTF. too much work on stock options but no 10q. Can't make this shit up. That should be their ad, "can't make this shit up"
i guess, if you want to be the sucker that pays for them. Suit yourself.
getting ready for the first of month dump, so they need to pump now. Chris Larson's kids need new shoes, I mean mansions and helicopters.
no reason why dowling and the bean counter should receive any options.Fleecing the company while it tanks because of them.
"choppy" denotes up and down movement. Sales have been all down. Dowling needs another word once he finishes working on stock options. Analysts need to ask him WTF anyone is getting options now after their horrendous, incompetent performance.
just means sales suck. Thats why revenues will be 6 million from 17 million. Management sure is good at taking care of stock options though...very well deserved.
Looks like the pumping before lardon dumps his on the first of month
on further thought, WTF is dowling getting any stock options? This is unbelievable. They have destroyed this company's share price and they are rewarding themselves? for what? flagrant fleecing. What happened to fiduciary duties? ZERO CONFIDENCE. Surprised no class action for this non sense, compared to other bleep.
They deserve no rewards for performance. Actually pathetic if not straight out buy by them. More salt in wound. EVERGREEN
About time. Glad to see ceo purchase 1.5 million shares.
very disappointing, not surprising, that cw actually increases revenues as cvsi's crater. With two weeks left in quarter the bean counter forcasts from 6 -8 million. The analyst was incredilous at the 2 million swing in forecast with only two weeks left. How could he not be more exact? Monas are screwing the company by not paying their taxes and dowling is going to pay them for them which is unacceptable. That is the delay in 10q. unbelievable. But they want a reverse split so they can dilute it? no fing way
Why is cw revenue going up, cvsi down drastically? Why?
Who are you kidding, cw is broke, burning cash, they will dilute further soon...before cvsi
Still no audited numbers from deloitte and high paid, stuttering, bean counter who reports on sales....whatever the f his name is
"Topical balm isn’t moving the needle. Gel caps, tinctures, and gummies are where the money is. They’re doing 9 million in balms, and whatever they can sell online. Future is gonna be bright."
wrong, they are selling everything at specialty stores which continues to plummet. They sell only topicals at fdm which probably don't even sell. They are betting on fdm carrying more than topical. They have failed miserably to keep whatever advantage they had in specialty stores. I doubt my cvs has sold any balms besides ones I bought a year ago. Without fdm expanding skues they are toast. What is the guarantee that they even keep those accounts? Proven inept leadership and vision. Destroyed by fly by nights means worse than fly by nights.
they show no urgency at all. As long as they can spend 90 days preparing their next conference call, they don't give a bleep. Without any real color or explaination, they simply announce projections to six million revenue from 17 million.
I bet management considers bk an alternative if they can't dilute the shit out of it.LOSERS
sounds like choppy google searches
only 99 + billion more to go, mostly from greedy founders and managment
he clearly was talking only about the medical supplies for a pandemic. Makes me question anyone pushing this otherwise.
almost time for ripple to dump another one billion xrp into the abyss to support the children of all the long gone and exixting founders of ripple. Get your children's money ready to hand over to the founders to make sure they live their alogarcic lives at your expense.
cvsi doesn't plant jack. The more farmers the better for lower prices. clue in
And we MAY have a pet line in 2020? TWO YEARS LATE
You know they gave guidance of 6 million for first quarter dont you? Sales are plumetting and they dont seem to care too much. They have evergreen power to reward this abysmal performance. If all the competition are fly by nights, why is cvsi losing to them? If cvsi has tomc, mcckay, board etc, why are they getting creamed by the competition?
Does this shit really work? Nuff said
They just want funds to pay them to continue to fu up.
They deserve nothing. Embiciles. They are clueless and deserve nothing. Evergreen give aways need to be reversed.
Thanks to all those who voted for evergreen shi last time. License to steel more every year
No rs, no options, no compensation. F em
are you seeing reverse split news anywhere mc?
Its only up a bit cause I sold some a couple days ago for the tax loss. How long must i wait to rebuy for it not to be considered a wash sale?.
After earnings we go to .10 or .15
Exactly,1960s nerds asking if this shit really works. Picture amazed managent spending millions on the lame marketing thinking how nuevo it is
Perfectly tracks down, not up
Ya, cause he deserves options after recent performance. Agree he should be buying now, all of them should. Where the bleep is tomc's buys. Anything options right now a big f.u. to shareholders
Why the f is this not up 60% if oil is up 22%?
Deloitte prolly not signing off payoffs to monas, nor the company paying monas taxes. As of now, no audited numbers. Jorg wasnt that impressive on cc. Has cvsi made any layoffs?