Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
CV Sciences, Inc. (OTCQB:CVSI) Q1 2023 Earnings Conference Call May 15, 2023 10:00 AM ET
Operator
Greetings. And welcome to the CV Sciences, Inc. First Quarter 2023 Conference call.
At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.
I’d now like to turn the floor over to CV Sciences.
Unidentified Company Representative
Thank you, and good morning, everyone. With us today with prepared remarks are CV Sciences' Chief Executive Officer, Joseph Dowling; and Joerg Grasser, Chief Financial Officer. After the prepared remarks, we will take questions from the analyst community.
I would like to remind you that on today's call, management's prepared remarks may contain forward-looking statements. These forward-looking statements are subject to risks and uncertainties that may cause the actual results to differ materially from those anticipated by CV Sciences at this time. When used in this call, the words anticipate, should, could, estimate, intend, expect, believe, potential, will, project and similar expressions as they relate to CV Sciences are as such forward-looking statements.
Finally, please note that on today's call, management will refer to non-GAAP financial measures in which CV Sciences excludes certain expenses from its GAAP financial results. Please refer to CV Sciences' press release from earlier today for a full reconciliation of its non-GAAP performance measures to the most comparable GAAP financial measures.
This morning, the company issued a press release announcing its financial results. Participants on this call who may not have already done so may wish to look at the press release as the company provides a summary of the results on this call. The press release may be found at www.cvsciences.com.
I would like to now turn the call over to CV Sciences' Chief Executive Officer, Mr. Joseph Dowling. Joe?
Joseph Dowling
Good morning, everyone. Thank you for joining our call. This morning, we issued a press release reporting results for our first quarter ended March 31, 2023. We are pleased with our continued progress as we move closer to profitability and generating free cash flow on a sustained basis.
Significant financial highlights during Q1 included: we achieved for the second consecutive quarter sequential revenue growth of $4.1 million, our gross margin increased sequentially to 43% and also increased when compared to Q1 2022, we generated cash flow from operations of $1 million, we maintained our number one position in the natural products retail channel and continue to increase our market share, and we are carefully managing our working capital through diligent collection of our receivables, conversion of our inventory to cash and scrutiny of all vendor relationships, all of which contributed to a sequential increase in our cash balance at the end of Q1.
We also achieved numerous operational objectives during Q1, including: we launched several new products, including our PlusCBD Reserve Collection Extra Gummies, our Reserve Collection Softgels and our PlusCBD Daily Balance, a new line of THC-free gummies and softgels. And our cost efficiency efforts continue to result in a lower overall company cost structure, with efficiency gains and cash savings in several areas, including SG&A.
Also, during Q1, we reversed an accrued payroll tax associated with an RSU issuance to our founder due to the statute of limitations expiration. This transaction significantly strengthens our balance sheet, which is now essentially debt-free. Joerg will provide details on each of these areas during his remarks.
Our Q1 results give us great optimism that we will remain a competitive force in our industry in spite of the continuing challenges we have faced since early 2020, including brand saturation and inaction by FDA and Congress to provide a sensible regulatory environment for our industry. Our asset-light business model is well positioned to take advantage of an industry that is maturing, becoming more professional and trustworthy.
Q1 was a good example of how we are now starting to realize the positive financial impact of several years of hard work in properly scaling the company, putting us in a position to leverage the strength of our assets, including our PlusCBD brand and our distribution.
On the revenue side, our immediate goal is to get the company back to a $5 million-plus per quarter revenue run rate and higher. This revenue goal is in near-term site. During Q1, we made great progress in overcoming the supply chain issues we experienced during 2022. We see more brand contraction in B2B as retailers are working through old inventory and continue to remove slow-moving brands.
As I already mentioned, we are the number one selling brand in the natural product retail channel, and we continue to see market share concentration of the top three brands in the 50% range. Customers are sticking with or moving to brands that they know and trust, and we continue to be at the top of the list in the natural channel.
Our B2C sales channel continues to improve. Our B2C infrastructure is built for scale and can support nearly unlimited traffic and activity. Our merchandising and marketing investment to optimize our B2C ROI is refined on a daily basis to ensure that we are achieving our return on ad spend targets. We are seeing results in all critical B2C KPIs, including new visitors, increased subscription orders and revenue and AOV.
Brand contraction, increased education and consumer trust will all help grow the B2C channel, and we are prepared to grow the channel and take market share as the category evolves. Our B2B and B2C channels work synergistically as our customers often learn about or even try our products from the B2B retailer and then, over time, transition to a B2C customer.
Company and brand awareness is also a focus area for our team. During Q1, we saw continued improvement in our social media public relations efforts. Our impressions, engagements and engagement rates are all improving. We are regularly covered by relevant national media outlets to highlight our high-quality products and to feature our position as a thought leader in the CBD and wellness category. Our share of voice is increasing. During Q1, a CV Sciences and PlusCBD were featured in more than 30% of total media coverage. Only one other CBD company has a higher share of voice than we do.
Product development will continue to be important for our growth strategy. As we mentioned at year-end, 36% of our fiscal year 2022 revenue was from new products launched since May 2021. Of course, consumers are looking for high-quality brands like our PlusCBD products, but they increasingly want multi-active ingredient products that carry a structure function claim that can be trusted. We are addressing this trend and plan to launch new products similar to our wellness line, including our sleep, calm and relief products and our over-the-counter topical line.
We also recently launched our innovative Reserve line to extremely favorable customer reviews and demand. We will continue to innovate and launch new products that are responsive to our customers and their specific need states, including for anxiety, pain and sleep disorders. We believe that strong science supports our product claims and will win the trust and loyalty of our existing and new customers.
On regulatory matters, patience will be required. There is progress at the state level, and we remain optimistic regarding further progress. Inaction by FDA and Congress is frustrating, but we will continue to be actively involved at the federal level in pushing Congress to make progress. We all know that a sensible regulatory framework will significantly benefit our industry and consumers, and will create an environment where quality companies and products can be trusted to grow the category responsibly.
At year-end, we commented on our drug development program in treatment of smokeless tobacco use and addiction, where we announced that the company received its formal certificate of grant from the Japan Patent Office for its patent application 721-6697 for our drug development asset. CV Sciences has also filed corresponding patent applications that provide similar patent protection in key commercial markets, with patents already granted in the United States, Canada, Australia and 6 European Union countries.
We continue to believe that this drug development program has significant value and, even though we have paused development of this program internally, we continue to see collaboration partners on this program.
The challenges in our industry continue, but we are well positioned with an efficient business model and operating structure. We continue to streamline operations, increase our cost efficiency and realign the company for growth and profitability. We have made great progress in structuring a very lean, cost-efficient organization that is now repositioned to leverage our company's assets and strengths, which includes our employees, the quality of our products, the trust in our brands and the strength of our distribution.
We will be able to achieve profitability and cash flow positive at a much lower revenue number than many of our competitors because of the tough decisions that we have made over the last several years. Let me pause now and I will turn the call over to Joerg.
Joerg Grasser
Thank you, Joe, and also good morning to everyone. Q1 was, from a financial perspective, a very unusual quarter. We generated net income of $5.7 million and EPS of $0.04 compared to quarterly losses and negative EPS since the beginning of 2019. The main reason for our net income is the reversal of our previously recorded contingent liability for payroll taxes associated with the RSU release to our founder in 2019 of $6.2 million.
We have disclosed the transaction in all of our previous quarterly and annual SEC filings since 2019. We recorded this accrual as we could have been secondary liable to the IRS and the California EDD for payroll taxes versus RSU release. At this point, the statute of limitation expires and the respective taxing authorities cannot assess CV Sciences for these payroll taxes anymore. As such, we reversed the previously accrued amount as of March 31, 2023.
From a business perspective, we continue to see a positive financial impact of our cost efficiency measures across all functional areas of the company. Over the last several years, we have significantly reduced our cost structure without significant productivity losses, and we are well positioned for operating leverage as we increase revenues.
Our first quarter revenue was $4.1 million compared to $4.4 million in the first quarter of 2022, and up from $3.9 million in the fourth quarter of 2022, representing the second quarter in a row of sequential revenue growth. The sequential increase was from additional B2B sales in Q1 2023 in the natural retail channel as we continue to expand our leadership position in this channel. The year-over-year decline is mostly due to lower sales volume, partially offset by higher sales prices per unit.
The overall CBD market continues to be fragmented and very competitive but we see further consolidation and contraction. Our direct-to-consumer business continues to perform well, with modest digital marketing spend and associated sales represented 41.2% of total revenue in the first quarter compared to 42.5% a year earlier and 46.2% and in the fourth quarter of 2022.
We made solid improvements to our main digital KPIs. We were able to continue to increase our visits to our website on a sequential basis despite lower digital marketing spend. Our conversion rate and AOV declined slightly compared to Q4 2022. We also made good improvements during the quarter for our subscriptions and loyalty programs.
Gross margin for the first quarter of 2023 was 43% compared to 26% in the first quarter of 2022 and 40.4% in the fourth quarter of 2022. The improvement in gross margin compared to prior year is mostly due to reduced shipping and fulfillment costs, as well as higher average sales prices, partially offset by lower volume. We work on further cost efficiencies in order to continue to improve our growth margins.
SG&A expense for the first quarter was $2.1 million, significantly down from $2.6 million a year ago and $3.6 million sequentially. SG&A expense included a noncash impairment charge of $1.2 million in the fourth quarter of '22, and the benefit of ERC credit of $2 million in the first quarter of 2022. Excluding these noncash impairment charges and ERC benefits, our SG&A expense for the first quarter 2023 still decreased significantly on a year-over-year and sequential basis.
These improvements are the direct result of our ongoing efforts to reduce our overall cost structure. We have taken out costs from all areas of our business and continue to do so in order to generate positive cash flows.
For the first quarter 2023, we generated an operating income of $5.8 million compared to an operating loss of $1.5 million a year ago. Our adjusted EBITDA loss for the first quarter was $0.2 million compared to $0.7 million in the fourth quarter of 2022 and $2.5 million in the first quarter of 2022. The improved operating performance and adjusted EBITDA loss are the result of our asset-light business model, which allowed us to implement cost savings throughout the organization to minimize our cash outflow.
On a GAAP basis, we reported a first quarter 2023 net income of $5.7 million or $0.04 per share compared to a net loss of $2.2 million or $0.02 per share in the first quarter of 2022.
Now let me turn to our balance sheet. We continue to manage our cash position very carefully and ended the first quarter of 2023 with $0.7 million of cash compared to $0.6 million at the end of fiscal 2022. Cash generated by operations during the first quarter of 2023 was $1 million, a significant improvement from the same quarter a year ago, which had cash usage of $0.4 million. The improvement in our operating cash were mostly due to the receipt of ERC funds of EUR 1.1 million during the first quarter of 2023 and lower overhead costs.
We continue to aggressively manage our overall cash position with improved cash collections on our outstanding AR and daily management of our inventory and vendor payables. We continue to adjust our cost structure to be in line with our expected revenue, with the overarching goal to generate positive operating cash on a continuous basis.
Our inventory was $6.5 million at the end of the quarter compared to $6.6 million at year-end as we continue to focus on efficient cash management and convert our raw materials into cash. Also, in April 2023, we extinguished our note payable with Streeterville and are now essentially debt-free. In addition, we have working capital of $3.8 million. With our improved balance sheet and our reduced cost structure in place, we have the financial flexibility to continue executing our plan and look forward to improving trends as the year unfolds.
Now I will turn the call back over to Joe.
Joseph Dowling
Joerg, thank you. As Joerg and I have discussed this morning, we continue to realign our company to the scale of the industry to achieve profitability and free cash flow in the near term. Our Q1 results clearly show great progress in achieving such fundamentals as profitability and free cash flow, and we are close to achieving both in the near term.
The contraction and consolidation of our industry is also having a positive impact as the number of brands and products on shelf and online are both declining significantly, allowing us to increase market share in both B2B and B2C channels.
We continue to work with our advisers in evaluating both inbound and outbound M&A opportunities. We have seen a significant increase in inbound acquisition opportunities that we believe is directly related to the need and, in many cases, urgency for our industry to consolidate. We plan to be selective, but adding revenue by acquisition is a viable strategy for us.
We will continue to look for opportunities to leverage the solid business model platform that we have built. We are also pursuing other new domestic opportunities and selective international opportunities that will allow us to leverage our brand, our infrastructure and the trust in our company.
We remain optimistic about the short and long-term opportunity for our company and industry. We are making continuous improvement to ensure that we are scaled properly, operating efficiently and are focused on adding long-term shareholder value. We will continue to focus on our customers and retail partners who trust and love our products.
I will now turn the call back over to the operator for any calls from the analyst community.
Question-and-Answer Session
Operator
[Operator instructions] There are no questions from the analyst community. I would like to turn the floor back over to Joseph Dowling, CEO, for closing comments.
Joseph Dowling
Thank you. I would like to thank everyone for being a supporter of CV Sciences and our flagship brand PlusCBD. We look forward to speaking with you again soon. Thank you, and have a great day.
Operator
This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.
Alright here, I’m guessing were getting hung up on debt qualifiers. Let me change to this definition. All money owed by contract that has to be paid.
Also, I will only list those over 100 million, and yes, I know all the smaller ones.
Construction finance liabilities 524 million
Also of note, this was originally listed as debt a couple of 10K’s ago and reclassified as liabilities.
Doesn’t matter how it’s worded, it has to be paid.
As of December 31, 2022, we had the following contractual obligations to make future payments, representing contracts and other commitments that are known and committed.
Private placement notes 555 million.
A foot note - the 2026 Notes will mature on October 6, 2026, and may be redeemed in whole or in part, at the Company's option, at any time, on or after October 6, 2023
Notes payable 130 million.
The $130.0 million principal amount of the June and November Notes are due in June 2024.
This is also under the following contractual obligations to make future payments, representing contracts and other commitments that are known and committed
Deferred tax 253 million. Now this can change as the company has taken a position of possible tax reduction if the congress passes the SAFE and FED Legit Mary jane bill and makes it retroactive.
In regards to your possible 650 m vs what I posted. I’m taking that as two people throwing out guesses. However even under the higher projection, if it were to happen, would still be almost a billion and a half reduction from what they paid a little over 18mo ago.
Well, I think that would be a mistake to highlight. No surprise to me anyway.
“absolutely no comments on the Harvest acquisition”
I think they were right from a management point of view to go with look at this, don’t look over there at that.
I mean there is no upside to bring that into the light. Currently they have a market cap of 911 million. The debt is over a billion. They currently are going at a rate for losses of ¼ billion a year. Yet, just a little over 18mo ago they paid 2.1 billion for Harvest. FUNMAN who use to post here, said at the time they have lost their minds. He appears to have been right.
Any mention of Harvest now would be like rubbing salt into an open wound to the shareholders. The best I’ll say is it was an ill-advised, ill- judged, shortsighted, poorly timed decision. If done today I don’t think it would have cost even 300 million, that is a big oops. IMO
There are some good thoughts in your post. I’ll only address “do you put cash to work here?” Well, right now the macro of the markets, economy and all the politics involved, have too many open-ended possibilities. I am unable to project. And to create even more difficulties, I found out, right here on this board in fact, that charting no longer works. I tried to get a decoder ring, but couldn’t find a style I liked, so I went with the old standby. A bed of tea leaves with a ouija board on top with a hovering crystal ball on which a magic 8 ball rests on. However, there are a few bugs, The magic 8 ball leaks, the crystal ball no longer hovers, can’t find a place to plug it in anyway, the Ouija board only comes back with one statement, P.T. Barnum, and the tea leaves are flaking apart. Figure to have all the bugs worked out by the end of summer.
Or if you prefer, once the entire vison can be seen with clarity I will act. So, going with look before you leap vs he who hesitates is lost. IMO
Read your post and had to sit back and smile. A lot of thoughts on Jack, He passed not to long ago. Driven, unreasonable, brutal and exciting, all at the same time. Hard charger in the 80’s, rock star in the 90’s.
Old Neutron Jack. He hated that name btw.
Alright, well focused cost reduction really has a strong value of the synergy stage. After that it still can be used for window dressing for sale, but it also has to be tied to fast moving events with in the business model or to your point, it will have negative effect.
While you can service the debt loan only and not the principal, you better have a very good reason. Specific with in the business model/plan that allow the reasonableness necessary to justify the risk. Meaning there down sides that need to be factored.
Going off of memory only, a while back that did have something in a 10q/k about the revenue generation was less than anticipated. But I have been only focused on the whole.
Let me give just a quick opinion here. I was against the Harvest deal then, now I say it was a bad buy, at the wrong time, for far more cost than should have been. Now to be fair, the thought process I believe would have been SAFE and FED legal are soon to pass and were going to go with the big footprint.
Here is where I thing they are now. They got that foot print, but they did everything above before the price compression / consolidation phase. Took a shot they did, and it has cost them and the shareholders dearly.
Charlotte's Web Q1 FY23 Revenue Declines 12.1% YoY, What About Net Loss?
8:38 am ET May 12, 2023 (Benzinga) Print
Charlotte's Web Holdings, Inc. (OTCQX: CWBHF) (TSX:CWEB) net revenue for the first quarter ended March 31, 2023, was $17.0 million, a decrease of 12.1% from $19.4 million in the first quarter of 2022. The decrease was primarily due to lower oil tincture sales volume and related product mix for the periods.
Q1 2023 Financial Highlights
Gross profit was $9.9 million, or 58.3% of revenue, as compared to gross profit of $11.8 million, or 60.5% of revenue, in the first quarter of 2022.
Net loss for the first quarter was $2.9 million, or ($0.02) per share on a basic and diluted basis, as compared to a net loss of $8.6 million, or ($0.06) per share, on a basic and diluted basis in Q1 2022.
Adjusted EBITDA loss for the first quarter of 2023 was $3.3 million, an improvement of $2.0 million, or 57.7% as compared to an adjusted EBITDA loss of $5.3 million for the first quarter of 2022.
"In the first quarter, we maintained prudent cost controls to balance softness in the CBD category due to the unregulated environment. We successfully reduced operating expenses by 14% on a year-over-year basis and ended the first quarter with a cash balance of $61 million. This provides ample working capital to support growth plans, including the launch of ReCreate, our new NSF Certified for Sport lifestyle brand," stated Jessica Saxton, CFO. "We continue to maintain healthy gross profit margins and have improved our operating margins, despite a net revenue decline of 12.1% year-over-year."
Balance Sheet and Cash Flow
Net cash used from operations, for the three months ended March 31, 2023, was $6.1 million as compared to $4.7 million in Q1 2022. The first quarter of 2023 included rights fee payments to MLB which did not occur in the prior year period.
The company's cash and working capital as of March 31, 2023, were $60.8 million and $78.5 million respectively, compared to $67.0 million and $82.3 million at December 31, 2022, respectively.
I do have a few concerns, well many actually, that I ran across in the 10q. The first is currently they are losing 722k a day. That is a problem. If they don’t improve that run rate it will be ¼ of a billion per year. But my focus for this post is the personal notes $547 million, and promissory notes $106 million are in play and a concern mainly because I don’t know what they put up to get them. They have other debt, but let’s focus on just these two.
Currently they are paying between 8.5% and 13% on those. Roughly 650 million total on the two. Now some are due in 24, some in 26 and others later. They have no hope in paying those off in the time fames. The most likely avenue to extend would to get a bank loan. Which mean the business is going to have to produce at a great deal higher rate. And make no mistake I hope they do. There is price compression as I wrote about so time ago, there will be consolidation in the sector, I assure you. They currently are in no position to expand without causing a house of cards to occur.
MY concern with that is a simple one. Even with safe passing at some points, how do I really feel about this company going into a bank and asking for a 650-million-dollar loan for, let’s say 5–7-year range, yes, I know that a long time but they have to try, at most likely 9 to 10 percent rate when they present the fact they are losing 1/4billion a year and haven’t paid any of the current principal in question off so far.
There are many other concerns, but those pers/prom are a problem for me with this company losing the volume of money they current are.
IMO, this will cause this company to run neg earning numbers for a long time. And yes, you can do that for a long time while the debt is paid off. But it will affect the share price, even if they improve that current run rate of losing ¼ billion a year. Anyway IMO
What! Charts don’t work. Well, there goes 40 some years down the drain. Just as well all this lower highs, lower lows, is just too confusing. RSI stuff, think that stands for rally sport induction, anyway.
What they should do is just make charts with an arrow. Up or down for the day. Much easier to follow.
Have a good one.
There will not be a vote today but it does take one step closer.
FYI-(TSX:CWEB) (OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), the market leader in cannabidiol (CBD) hemp extract wellness products, will report its first quarter financial results prior to market open on May 12, 2023. A conference call to discuss the results is scheduled for the same day at 10:00 a.m. Eastern Time.
Don't kid yourself, sure it is. RE:More competitive not really a bad thing for TCNNF
I hear what you’re saying. The FDIC was never designed to protect all accounts as you state. Banks can and do go out of business for many reasons, and the FDIC has done a good job charging the banks a proper insurance fee to give that protection. I don’t have a big problem on what was. It was working. Currently they are raising those rates.
It will not stop bank runs, well, I guess last 3,4 they can, slowed it anyway, but on SVB the bigger issue wasn’t the 250k on down, it was the billions above the 250k. Blackrock, Vanguard for example would have taken some major hits, which would have caused bigger problems.
Clearly it shows the FDIC will not be able to cover bank runs, if people want to pull the money and move to can’t fail banks, you can’t stop them. My solution is far harsher, only provide large banks with FDIC support, and only charge those banks. Then people can decide want they wish to do. Yes, far less banks, but far bigger, less risky ones. You still can have as many branches of those large banks as you want.
However, the problem in this case was twofold. The first failure was when Trump eased up the Dodd /Frank restrictions on banks, regionals on down in 2018. That experiment took 5 years before the effect was felt. Many said at the time this could happen. We didn’t learn from 2008.
And even then, it still wouldn’t have the effect it did unless you have brain dead incompetence managing the banks, and even then, it should have been caught by the Federal regulators who clearly did not do they’re job. You just can’t protect yourself from stupid it seems.
However, there is a lighter note. Around Feb 1 Jim Cramer was on the air and proclaimed SVB is a buy at $320. Now it was on a hundred-dollar runup, which would have been a time to sell, not buy. Anyway, currently it’s at .50 cents. Later he confessed he was wrong. So those investors got that from him anyway. That was the biggest mistake in all this. Just the latest of many he has had IMO, but I have no idea why a failed hedge fund manger is still on that program. Doesn’t matter I guess as I’m not a fan.
CVSI should be coming out with their numbers very soon I would think, but the company is dead and appears to be going nowhere. CW should be out Friday, very interesting on what the say, and report with their business plans. Still watching the SG&A with that but they seem to be setting up well. I guess we’ll see. All IMO
No, it’s not a good look, the laser focus is the same flash phrase she made at year end. I think she is starting to realize how difficult this is all going to be going forward.
Got a decent day going .
It certainly isn’t good. Sales down 9 percent.
Gross profit down 17 percent.
Another loss of 64 million
Still have that massive debt load to deal with
Growth phase done
All I can say is most were looking for better.
Trulieve Q1 FY23 Revenue Declines 9%, What About Net Loss?
8:12 am ET May 10, 2023 (Benzinga) Print
Trulieve Cannabis Corp. (OTCQX: TCNNF) (CSE:TRUL) released its results for the quarter ended March 31, 2023, revealing revenue of $289 million, a decrease of 9% compared to $318 million in Q1 2022.
Q1 2023 Financial Highlights
Gross profit of $150 million, a decrease of 17% compared to $180 million in Q1 2022.
Gross margin of 52%, compared to a gross margin of 57% in Q1 2022.
Net loss of $64 million, compared to a net loss of $32 million in Q1 2022.
Adjusted EBITDA of $78 million, or 27% of revenue, a decrease of 26% compared to $105 million, or 33% of revenue in Q1 2022.
Cash at quarter end of $195 million.
"Our team is laser focused on cash preservation and generation as we set the stage for the next phase of accelerated growth," stated Kim Rivers, Trulieve CEO. "Trulieve's scale and service, operational flexibility, and strong balance sheet are essential for success in the current environment. With increasing adoption and expanding state level access to cannabis, the industry is well beyond the tipping point. Tremendous opportunities lie ahead for companies that can successfully adapt within evolving landscapes."
Regarding: What more does the Fed really have to say to quell anyone's concern about "the banks"?...
The banks are just one avenue that needs to be addressed and propped up.
While there many concerns a person can have with the banks, my first one is the FDIC for accounts with less than 250k. Before the latest bank issues the FDIC had enough to support 1.26% of all bank accounts under $250k. They when thru 128 billion, then Yellin reinflated with 100 billion more from treasury. They have 9 billion left as of this post. Now while I don’t know if there will be any more failures, I do know there are many, many at risk. There still is the inflation issue, in fact I’m wondering if those reading didn’t tick up, we’ll find out tomorrow. Interest rates are far from being cut, unless there is a massive failure in the economy, in which case that would create more ramifications and would cause higher inflation. But all of that above is pales if they fail on the debt ceiling. I know, I know, it’s unthinkable, just political theater. That being said, I do think there is a real chance that the congress may be stupid enough, regardless of the millions of lives it would affect. We’ll know in a few weeks or so, however right now all my new bets are risk off. I can wait. All IMO.
Your right, the point is the same. Nobody is going to take that much per dose which is the point.
In your post "Instead of using actual dietary supplement data and research like the data we supplied to the agency in our citizen’s petition, the FDA instead chose to use drug data to draw conclusions that are three times the dose of the CBD drug Epidiolex. This is extremely troubling, confusing, and sets us back even further on one of our top priorities for the past several years, which is meaningful progress on a regulatory path for something that’s ubiquitous in the market.”
A person needs to ask why they are doing this, the reasons, and what’s driving the failure to do a real-life study. In the mean while we have FDA referring to congress who in turn refers back to the FDA reminds me of a game of hot potato. A lot of BS if you ask me.
In any event I'm getting bogged down on the current macro of the economy, the markets and the politics of it. CBD, THC is going to have to take a back seat for this month.
Can't get back over the 200 day and death cross closing in.
Green Thumb Industries (OTC:GTBIF) reported its Q1 earnings results on Wednesday, May 3, 2023 at 04:00 PM.
Here's what investors need to know about the announcement.
Earnings
Green Thumb Industries reported in-line EPS of $0.04 versus an estimate of $0.04.
Revenue was up $5.94 million from the same period last year.
Past Earnings Performance
Last quarter the company missed on EPS by $0.01 which was followed by a 0.6% increase in the share price the next day.
Here's a look at Green Thumb Industries's past performance:
Quarter Q4 2022 Q3 2022 Q2 2022 Q1 2022
EPS Estimate 0.06 0.06 0.04 0.05
EPS Actual 0.05 0.04 0.10 0.12
Revenue Estimate 256.17M 258.31M 248.01M 249.26M
Revenue Actual 259.27M 261.19M 254.31M 242.60M
Good news, volumes up over the last 3 days, it’s up a pretty good amount. The bad news is it has went from 0.0485 to 0.040. Also, of note today it lost the 200-day support.
I would think that 1st qt report should come out within 2 weeks now.
FYI Cantor Fitzgerald Discontinues Cannabis Stock Coverage With Analyst Departure -- MarketWatch
2:36 pm ET May 1, 2023 (MarketWatch)
Print
Cantor Fitzgerald said Friday it will no longer provide research coverage of 23 cannabis stocks because analyst Pablo Zuanic has departed the firm. Zuanic is now head of Zuanic & Associates, a consulting and research firm aimed at the cannabis sector, according to his LinkedIn profile and a website for the firm. Cantor Fitzgerald said analyst Brett Knoblauch is now covering MDMA researcher WM Technology Inc. (MAPS), but it's dropping coverage of Cresco Labs , Curaleaf Holdings , Green Thumb Industries , Trulieve Cannabis , Verano Holdings , Tilray Inc. (TLRY), TerrAscend , Ascend Wellness , Canopy Growth Corp. (WEED.T) and others. Zuanic & Associates did not immediately reply to an email. The AdvisorShares Pure U.S. Cannabis ETF (MSOS) is down nearly 20% in 2023 and down 63.5% in the past 12 months, compared to a 16.9% year-to-date gain and a loss of 0.8% in the past 12 months for the Nasdaq .
FYI - Cantor Fitzgerald Discontinues Cannabis Stock Coverage With Analyst Departure -- MarketWatch
2:36 pm ET May 1, 2023 (MarketWatch)
Print
Cantor Fitzgerald said Friday it will no longer provide research coverage of 23 cannabis stocks because analyst Pablo Zuanic has departed the firm. Zuanic is now head of Zuanic & Associates, a consulting and research firm aimed at the cannabis sector, according to his LinkedIn profile and a website for the firm. Cantor Fitzgerald said analyst Brett Knoblauch is now covering MDMA researcher WM Technology Inc. (MAPS), but it's dropping coverage of Cresco Labs , Curaleaf Holdings , Green Thumb Industries , Trulieve Cannabis , Verano Holdings , Tilray Inc. (TLRY), TerrAscend , Ascend Wellness , Canopy Growth Corp. (WEED.T) and others. Zuanic & Associates did not immediately reply to an email. The AdvisorShares Pure U.S. Cannabis ETF (MSOS) is down nearly 20% in 2023 and down 63.5% in the past 12 months, compared to a 16.9% year-to-date gain and a loss of 0.8% in the past 12 months for the Nasdaq .
FYI -DENVER, April 28, 2023 /CNW/ - (TSX:CWEB) (OTCQX:CWBHF) Charlotte's Web Holdings, Inc. ("Charlotte's Web" or the "Company"), the market leader in cannabidiol (CBD) hemp extract wellness products, will report its first quarter financial results prior to market open on May 12, 2023. A conference call to discuss the results is scheduled for the same day at 10:00 a.m. Eastern Time.
FYI - Today -U.S.-Listed Shares Of Cannabis Stocks Rise Premarket After Safe Banking Re-introduced In House And Senate.
Sure it does. It shows how long this 007 carrot has been running. What your NOT mentioning is THEY ARE DOING NOTHING WITH THE PATENT, NOTHING AT ALL!
ALSO THEY HAVE NO MONEY TO DO ANYTHING WITH ANYWAY
AND ONCE AGAIN IF EVERYTHING WENT PERFECTLY FINE IN PHASE 1 2 3 THEY ARE STILL 3 YEARS AWAY FROM EVEN FINDING OUT IF THEY HAVE A PRODUCT TO SELL
Other than that, how was the play Mrs. Lincoln
Here is another that ties right in to your post. A little dated but it shows they're right on track to get this done before 2050. (CVSI-007), being the subject. 7 years ago but much has changed, First I'm 7 years older, and 2, that was before the 99 percent drop.
And the band played on.
CV SCIENCES, INC. ISSUES LETTER TO SHAREHOLDERS
Download as PDFSeptember 27, 2016
LAS VEGAS, NV -- (Marketwired) -- 09/27/16 --
CV Sciences, Inc. (OTCBB: CVSI) (the "Company", "CV Sciences", "our" or "we"), issued a letter today to its shareholders discussing recent events and highlights.
Highlights of the letter include discussion of the following recent accomplishments:
Acquisition of CanX Inc. and focus on the development and commercialization of innovative medicines. Multi-billion market opportunity presented by initial drug candidate (CVSI-007), a proprietary chewing gum that combines synthetic CBD and nicotine to effectively treat smokeless tobacco addiction. Review of drug development program and timeline of achievements and upcoming milestones. Update of the Company's CBD Consumer Division, which has grown from 120 retail locations to now over 700 locations. Macro factors that continue to drive the market for natural CBD and hemp products. Review of corporate priorities in the Company's pharmaceutical and consumer product divisions and how to effectively maximize the value of its operating assets for the benefit of shareholders.
The FDA claims, they don't know what the long term effect is on whatever dose they pick. And thats the biggest problem. But again I would think there is far more to that judgement than what is stated.
UN you say, something I haven't even considered. And something worth looking into.
Again I agree, I'm running in the 20 - 30 range which seems to work best.
No, I agree they haven't. I take it as a ploy, a delay for whatever reason they have. It shouldn't be this hard to do, there are reasons why it's become so. It's too easy to just call it big pharma, it may be just that or some other political purpose not yet exposed.
What I was talking about is the whole farm bill, there is a lot on that agenda, not just the CBD. In regards to FDA/Congress. The FDA bails, can't figure it out, needs to go to congress, congress says this is your puppy, this is what you do, solve it.
There is alot to sort out. What they really address, to me, is a very wide playing field. But you are correct when you state the FDA is the hold up in regards to CBD. And this push, shove match they have with congress isn't getting it done. From either side.
Thomas, I just noticed there has been only $480 in trades during the 1st 4 hours. 9 trades avg 53 per. Perhaps you can kind some more rat stories, that seem to help yesterday.
Let's hope so.
Well, that’s just it. We don’t know what we don’t know. I mean this is something beyond somebody not paying the taxes. Twice it’s went to court, and both times the judge referred the matter to arbitration. I don’t call that the norm. Mona’s was banned for 5 years, the 5 years is up this year. Related, not related, don’t know. If a person was sitting in the court house, they would have a better idea, but this one isn’t important enough to do that. It’s all going to come out anyway, until then those legal fees keep mounting.
So how are you factoring the hollow shell on CVSI, relatively stable price, 0.04’s, with the collapse of the volume along with the parity risk?
You maybe right $90 in trades in the first hour!
Thanks for your rat study.
At this point it's just a thought.