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You know, they should get going on that 600 million share dilution they voted in last May. They will have to do that before that 1 for 400 reverse split, they also voted in. In fact, the 600 mil has to be done first. And then a pause to be workable for them. IMO
Ok, see were down 2.38 percent. $7100 on total trades today. 27 trades, busy day for this little one.
It would be nice if CVSI had a product of the year like the one Thomas posted. That would be good for business. Think I'll try some.
https://www.trendhunter.com/trends/cbd-sleep-gummies
Thanks again.
Thanks for that I see product of the year listed. Good to know
https://www.trendhunter.com/trends/cbd-sleep-gummies
Good find there.
With all that is going on and potential impacts and ramifications that arise for the entire market, economy, international inputs, I wouldn’t put out any guidance either, it’s going to be a tough year, for everyone.
It’s like Nicorette only for smokeless users. The reason that Nicorette can’t be used for smokeless users is because . . . because . . . . have to get back to you on that.
Don’t care about a patent in Japan that apparently will never be used, or the holding from the shareholders because they didn’t want to get sued {LOL} But I am interested in that 10k you say will be out today or Monday. How would you know that?
I think so too, I posted the whole CC for all to read. Interesting vision.
Question-and-Answer Session from CC
Operator
[Operator Instructions] Your first question comes from Derek Dley from Canaccord Genuity.
Derek Dley
Just a few questions here. So one on -- in terms of the rightsizing of the cost structure, mainly as it relates to the OpEx or the SG&A, that $70 million rate that you had in 2022, is that an effective run rate that we should use going forward? Or is there more optimization to be at in '23?
Jessica Saxton
No. That is our expected run rate going into 2023.
Derek Dley
Okay. And then given that and given the mid-50s gross margin guidance, what would be the revenue base that you would need to become EBITDA neutral or cash flow neutral?
Jacques Tortoroli
Derek, it's Jacques. Thanks for the question. Predicting revenue is, as we've seen last year and this year, is not something we're going to try to do. What we are going to do, though, is continue our commitment to ensure that the savings that we made last year are maintained, while at the same time, within that existing run rate that Jessica mentioned, choicefully invest behind the right initiatives that fit our strategy across innovation, across the right way to spend paid media to support MLB activations and return to the top of the funnel growth in our e-commerce business. So we're focused on minimizing the amount of cash burn but we're focused on choicefully investing within that SG&A run rate to really amplify the ability to get the top line to be in a better place than it was last year.
Derek Dley
Okay. Given the -- actually, just in terms of the mix that you guys had, DTC versus business-to-business, is that, again, a mix we should use going forward, call it sort 2/3 direct-to-consumer?
Jacques Tortoroli
Yes, Derek, it’s Jacques again. I think that's fair. Look, I mean, look at the size of e-commerce in the category. It's twice the size of the retail categories we play in. I think we have opportunity, obviously, given our position, but relatively small percentage of the market and still being the leader in both of those channels within the market. I would expect that the ratio of e-comm and B2B stay relatively constant in the short term.
Derek Dley
Okay. And just remind me, e-com is higher margin, right?
Jacques Tortoroli
Yes. And I was going to say that's also an element to the mix of margin and the guidance that Jessica mentioned. So clearly, the margin in e-commerce is better than the margin in retail.
Derek Dley
Okay, and then last one for me. Just in terms of -- I know you've spoken to it in the past just in terms of competition, given the high fragmentation of really small brands, which presumably, given your comment on access to capital are starting to go away, but have you seen any stabilization in pricing? Is it mostly on the value end? Is it across the entire channel? How are you viewing that?
Jacques Tortoroli
Yes. Look, I'm not sure I'd say it's stabilization of pricing. But I think what we continue to see is the shift to value pricing, which, by that, I mean the depth and frequency of our -- the industry's promotional pricing at both channels, which continues. I mean it's interesting to look at the MSRP versus the average retail price, right? And the average retail price in natural channel, for example, was down slightly. While in the food, drug and mass channel, was down 11% in 2022. I mean the reality is because the consumer pull isn't there for a lot of these other brands and they don't have the brand equity that Charlotte's Web has, the only lever they have is to reduce pricing and try to move product off shelf. And from a retailer perspective, the economics of Charlotte's Web with its super premium price position and the ability to now with the MLB partnership, better activate around point of sale and point-of-purchase activations in store. That's a key advantage for us in maintaining our relative price point relative to the competition rather than following.
Operator
[Operator Instructions] Your next question comes from Scott Fortune from ROTH MKM.
Scott Fortune
Looking back now -- congrats on, obviously, the capital infusion with BAT agreement. But I just want to get a sense now that you've had a chance to work with BAT a little bit on the broader botanical wellness platform, can you provide a little more color on the kind of strategic initiatives there and moving forward with BAT?
Jacques Tortoroli
Look, BAT, obviously, is a strategic partner of the company and a commitment, obviously, through the convertible debt instrument that they invested in, in November. We don't have much more color to add than what Jared mentioned in his remarks, Scott. So we'll leave it there.
Scott Fortune
Okay. And then a follow-up. I know you've put a lot of new distribution agreements in place and good job of adding to that and more feet on the street, as you said, obviously, is still a challenging market with MLB and we'll focus initiatives online. Just kind of step us through kind of where the initiatives are primarily for you on the DTC side and when do you expect some of these activations and the prominent positioning that you have now in the stores that kind of start to flow through or to help the top line. Are we looking at kind of more mid to second half growth that all these initiatives get in place? Just kind of a timing from that standpoint?
Jacques Tortoroli
Yes, great series of questions there. Look, again, as Jessica mentioned, we're not going to be providing revenue guidance for the year. What I will say is that as we go through the year, the partnerships that we struck in 2022 and other conversations that are happening and will continue over the course of the year. Ultimately, those new partnerships, new market and retail and industry vertical coverages that they provide us. It will, over time, increase the ability to effectuate our position and how we show up in retail.
I'll give you one example. We've talked about increasing our presence in new industry verticals. And in Q1, we did a partnership with the Wynn and Encore Hotel Group in Las Vegas. We kicked off by selling our topicals in their Wynn and Encore stores and that success is leading to an expansion with them in Q2 and beyond. And so we're excited about that as evidence, again, of our ability to penetrate new verticals with some of these new distribution partners and directly as well. In terms of DTC, as I mentioned in my remarks, it's all about growing the top of the funnel because we know when we bring people into our ecosystem and they go through their journey from awareness purchase to repeat purchasing the loyalty and to the subscribers that we keep them, right? And so for us, our conversion rates, our AOVs are very strong. And it's really just about bringing more people into our brand world. And that's where, again, MLP comes in by amplifying the amount of marketing and otherwise sort of reach that we can do on our own, both paid and earned.
And so we're excited about the reasons we did the partnership. We're excited about the commitment and the collaboration and the support of MLB. And so -- and we're excited about seeing how this year plays out with our lead activate in their key Jewel Events, particularly as we get into the back half of the year and into the fall around their Playoffs and the World Series, ultimately. But with the ability to have a new brand, a lifestyle brand in the marketplace that should be well received, we believe, by consumers.
Scott Fortune
I appreciate the color on the detail, Jacques. And then last one for me, for Jared. Just to touch base, it's nice to see the momentum starting to move forward. Obviously, THC and CBD needs a lot more lobbying and Congress for them to push forward. The pressure Delta-8 THC out there, it seems like the legislators are willing to act now. Can you just kind of step us through with the new congressional measures and that leading towards the '23 Farm Bill, you didn't mention that, but kind of some of the priorities that you think can really open up the opportunity for the CB industry with the Farm Bill as they kind of address the shortcomings of the 2018 Farm Bill just a little bit of color on kind of what you see kind of on addressing in the Farm Bill going forward here?
Jared Stanley
Sure. Scott, first, we are optimistic in the Farm Bill, but I want to first say it's not the only way. We've been -- the most engagement that we've had in Congress has been with Griffith staff. This is the staff that requested our safety and tox studies. And when the FDA made their position, it was -- obviously, this is the co-author of what was H.R. 841, which has now reintroduced as H.R. 1629, which is the Dietary Supplement Bill and Griffith staff is also behind H.R. 1628, the Food and Beverage Bill. What's really kind of been clear to us in this engagement is that Griffith staff has confirmed that energy and commerce will not be jurisdiction on FDA regulation to the agricultural committee. So when you zoom out, this is the same reason why the 2018 Farm Bill really focused on the definitions of CBD and hemp, but didn't go on to regulate the category. There is a way, and the only way this goes through the Farm Bill in the house is that the energy and commerce support a bill and it's made in order to the rules committee. So that's the house side of the Farm Bill and then the Senate, it could be added as a floor and then to the Farm Bill. But in either case, if it's not in both chambers, bills, it's not going into conference and it could be dropped. What we're seeing is actually the more likely path is either attaching to another energy and commerce or help committee bill, possibly a dietary supplement legislation or any end of the year spending bill. But regardless, we're looking at all avenues and trying to push all options.
Charlotte's Web Holdings, Inc. (OTCQX:CWBHF) Q4 2022 Earnings Conference Call March 23, 2023 11:00 AM ET
I would now like to turn the conference over to Cory Pala, Director of Investor Relations. Please go ahead.
Cory Pala
Thank you, Julie, and good morning, everyone. Thank you for joining us for our 2022 fourth quarter and year-end earnings conference call for Charlotte's Web Holdings, Inc. Our earnings release was issued this morning and posted on the Investor Relations section of our website along with our financial statements. Our annual 10-K report for the full 2022 year is also available and has been filed on sedar.com in Canada as well as in the U.S. with the SEC.
Leading our call this morning is CEO, Jacques Tortoroli; COO, Jared Stanley; and the company's new Chief Financial Officer, Jessica Saxton, who joined Charlotte's Web at the start of this year. She comes to Charlotte's Web following a career in finance at Anheuser-Busch InBev and brings both large and small company financial leadership.
On this morning's call, we will review the financial results for the fourth quarter and full year and provide some context with respect to the business in the overall CBD category. We will then take questions from our analysts at the end of our prepared remarks. A replay of this call will be available through the next week, accessible via the details provided in our earnings release. A webcast replay of this call will also be available for an extended period accessible through the IR section of our website at charlottesweb.com.
As a reminder to our listeners, certain statements made on today's call, including so much as we may provide to certain questions, may include content that is forward-looking in nature, and therefore, subject to risks and uncertainties and factors which could cause actual future results of company performance to differ materially from implied expectations. Such risks surrounding forward-looking statements are all outlined in detail with the company's annual report on Form 10-K filed on sedar.com in Canada and sec.gov in the United States.
In addition, during the call, we will refer to supplemental non-GAAP accounting measures, including adjusted gross profit and adjusted EBITDA. We should not have any standardized meaning prescribed by GAAP. Please refer to the earnings release contained in the Form 8-K that we filed this morning for a description of adjusted gross profit and adjusted EBITDA as well as a reconciliation of such measures to their respective and most directly comparable GAAP financial measures.
And with that, I will now hand over the call to Charlotte's Web Chief Executive Officer, Jacques Tortoroli. Please go ahead.
Jacques Tortoroli
Good morning from Colorado, and thank you for joining our call. I'd like to start by introducing Jessica Saxton, our Chief Financial Officer to you. Jessica has been with us for just a few months and has proven to be a quick study. She understands our business and has demonstrated impressive insights in a short time, providing constructive leadership across our business. Jared and I very much look forward to partnering with Jessica as we move our strategic initiatives forward.
This morning, we reported results for our fourth quarter and full year 2022. Before turning the call to Jessica for commentary on our Q4 and full year results, I want to highlight several points. 2022 was a difficult year for the CBD sector with disappointing sales as a result of ongoing inaction from the FDA on setting regulatory guidelines, continuing a marketplace of too many brands, isolate and Delta products, oversupply and inevitable consumer confusion. As a result, we began to see retailers contract shelf space and distribution for CBD, incremental price promotions to spur consumer pull and relatively flat Google organic search for CBD. We retained our market share position -- our leading market share position and leading retail velocities.
Certainly, it was a tough year for Charlotte's Web. Revenues declined over $20 million year-over-year. However, we maintained our market leadership across all key retail, e-commerce and brand metrics, which underscores the strength of our competitive position and the state of the overall category.
E-commerce channel represents $2 billion or about 40% of the CBD market. Charlotte's Web continued to operate the largest e-commerce business in CBD with only $51 million of revenue in 2022. Revenues of $12.5 million were down 18.3% in Q4 due to lower traffic and higher depth and frequency of competitive price promotions and discounting. However, subscriptions increased 21% from a year ago and conversion rates were strong at 7%, it shows the opportunity we have by focusing on filling the top of the funnel by bringing more consumers into our brand ecosystem.
For the full year, subscribers represented about 35% and of our e-commerce revenues. Our #1 challenge in turning around revenues remains bringing new consumers into our e-commerce and social channels. While we have initiatives for better returns on paid and earned media, this is where our MLB partnership comes in. On October 11, on the back of the announcement and about $30 million of earned media throughout the quarter, we saw traffic increases. We also saw new consumers buying our NSF Certified for Sport Daily Edge product, also buying other CBD products on charlottesweb.com.
Retail channels, where we compete in, represent about 25% of the CBD market or about $1.3 billion annually. We continue to lead in retail despite a $3 million year-over-year decline in revenues to $6.4 million in Q4 and $23 million for the full year. Our sales to food drug mass retail were down 10% year-over-year, while the total category in these channels was down 12%. As a result, we held 19% and 18% share in retail unit value and volume, respectively, number one market position. Distribution losses and price promotions were the principal drivers of year-over-year revenue declines.
In the natural channel, our Q4 sales were down 14% year-over-year, while the category was down 19%. As a result, we gained 3 points in distribution. Returning to the MLB partnership. With a full baseball season in 2023 beginning later this month, -- we're encouraged that the combination of MLB's 180 million or so fans, our NSF broad-spectrum products, Jewel Event activations and a new CW e-commerce platform later this year are all levers in growing the top of the funnel. Once consumers are in our ecosystem, they stay with us across their journey becoming loyal repeat purchasers and subscribers driving strong conversion, AOV rates and ultimately meaningful lifetime values.
In the coming weeks, to coincide with the start of the MLB season we'll be announcing a strategic decision to launch a lifestyle brand of NSF Certified products targeted for millennial and Gen Z consumers in valuable cultural verticals to drive our larger growth business vision. This is the perfect time to bring this brand to market, backed by the amplifier of MLB, including the iconic MLB logo on packaging. Brand will soft launch with one product on our e-commerce platform in April with further products launching on e-commerce and retail this fall.
We'll provide a lot more color on this during our next earnings call. Jessica and Jared will provide more color in her remarks, and I'll close with a '22 wrap-up as we progress into 2023 before opening up the call to our analysts for questions. Before I do that, let me turn the call over to Jessica for a review of our Q4 and full year financial highlights. Jessica?
Jessica Saxton
Thank you, Jacques. As noted by Jacques in his opening remarks, I've recently joined Charlotte's Web from Evergreen Ingredients, an innovative sustainability company owned by Anheuser-Busch, where I gained valuable venture experience as their CFO. This, in conjunction with my experience at several world-class organizations, provides me with the unique skill set to blend the nitty-gritty aspects of entrepreneurship with the financial expertise and acumen of a successful global market leader.
I am thrilled to bring my experience to the CBD market leader and contribute to its ongoing commitment to forwarding industry, advocacy and most importantly, delivering consumer needs. I came to Charlotte's Web as a strong believer and authentic user of their products. While CBD has certainly had a beneficial influence on my well-being, my decision to join Charlotte's Web was also driven by a strong personal and professional connection to the company's mission. It is an honor to be part of a company that adheres to B Corp principles, which include prioritizing the health of our planet. I have a strong passion towards sustainability. And as someone in finance, I understand the significant role we can play in creating sustainable solutions that will transform the way we do business. Ultimately, it is clear that our health and the planet’s well-being are strongly intertwined.
I am aware of the obstacles that the CBD market faces, but I am optimistic. I believe Charlotte's Web is the best positioned in terms of brand recognition, trust and loyalty, but also in terms of quality, IP and capabilities. Along with this, our safety data and certifications are industry-leading. Before I take you through a high-level review of the financial results, I would like to review four key accounting items that impacted Q4.
Firstly, in the fourth quarter, due to pending regulatory changes in Colorado, it was determined that the useful life of certain hemp biomass inventory would not meet long-term product specifications and labeling requirements. Jared will speak in more detail about this. Hemp biomass has modest degradation over time, an analysis of our biomass on hand resulted in taking a noncash inventory provision of $21.5 million in Q4 for a total of $23.4 million for the year. Inventory provisions are expensed to cost of goods sold, which reduced our reported gross profit and margin in the fourth quarter and for the year overall.
However, this is a noncash item. Secondly, we recorded a negative change related to the fair value of the SB USA purchase option in Q4 in the amount of $6.8 million for a total change of negative $10.7 million for the year. This increases our net loss for the period, but is also a noncash item. The reduction primarily reflects or reduced near-term valuation of the business due to slower-than-anticipated progress on federal legalization for cannabis. Both the fair value change and inventory provisions, again, are noncash items that do not affect our cash position.
Moving to the MLB partnership. In Q4 2022, in connection with the promotional rights agreement, the company paid $500,000 as well as recognized $2 million in expense. As we have discussed previously, this is more than a rights deal. It is a strategic deal where MLB not has a revenue share on the NSF Certified for Sport product, however, they are also a substantial shareholder of the company.
Regarding the balance sheet. This transaction resulted in a license and media assets of approximately $30 million and a corresponding payable at the end of 2022. The fourth significant item in the fourth quarter was the $52.7 million net proceeds from a seven-year convertible debenture with BAT. This investment strengthened our balance sheet, significantly improving liquidity. We believe this generated value for our shareholders, providing liquidity for the company at a great price, at a time when capital access is extraordinarily limited.
Now turning to revenue. As Jacques discussed earlier, Q4 revenue was $18.9 million, down 23.8% compared to revenue of $24.8 million in the fourth quarter of 2021, with both our B2C and B2B businesses reporting lower net sales. The comparative result is lapping a stronger Q4 in 2021, following the pass of Bill AR 45 in California, which resulted in materially larger shipments during the period, amplifying the year-over-year comparative decline.
Moving to our fourth quarter gross profit. The inventory provision of $21.5 million in the fourth quarter resulted in a gross profit of negative $10.5 million. For better transparency, excluding the inventory provision, gross profit was approximately $11 million or 58.1% of revenue. Looking forward, we expect gross margins to continue being in the mid-50s depending on both product and channel mix within the period.
Furthermore, in full year 2022, we reported gross margin of 28.6% due to the previously mentioned inventory provision. Gross margin before the inventory provision was 58%, which compares to a 2021 gross margin of 61% before provisions.
Turning to SG&A. Notably, in 2022, we were able to deliver substantial reductions in SG&A of $27.6 million for the full 12 months. Total SG&A for 2022 was $70.1 million, a year-over-year decrease of 28.2% from $97.6 million in 2021. This excludes a $4.1 million pandemic-related employee retention credit recognized in 2022. With that, cash now -- is now receivable on our balance sheet. The material reduction in operating expenses was critical to rightsizing the business and significantly reduces our cash burn to a manageable level going forward.
SG&A expenses in the fourth quarter were $21.4 million or 12.2% lower year-over-year. Combined with our $67 million cash position at the end of the year, this has put the business in a solid financial position moving forward, and we believe this is unique among the bulk of our competitive set. Net loss in the fourth quarter was $35.2 million or $0.23 per share loss with $21.5 million of the loss being inventory provisions, plus $3.5 million loss from fair market value changes. This compares to a fourth quarter net loss of $118.2 million or $0.86 per share loss last year, which included $103.8 million in impairments related to goodwill, inventory provisions and other long-lived assets.
For better transparency of operations, excluding depreciation and amortization and other extraordinary and noncash items, Q4 adjusted EBITDA was negative $4.5 million, a year-over-year improvement from negative $8.3 million for Q4 of last year despite lower revenue. This was primarily a result of SG&A reductions. On a full year basis, adjusted EBITDA improved by $8.7 million versus 2021, resulting in a smaller adjusted EBITDA loss of $11.8 million.
As a result of prudent expense management in 2022, net cash used for operations for the full year was $5.3 million in 2022 versus $29.6 million in 2021. The decrease is a result of reduced operating expenses and the collection of $10.8 million in IRS tax refunds, partially offset by lower revenues and cultivation payments.
Cash at the end of 2022 was $67 million compared to $19.5 million at the end of 2021. Additionally, our working capital at the close of 2022 stood at $84.1 million.
I will now turn the call over to Co-Founder and COO, Jared Stanley.
Jared Stanley
Thank you, Jessica. Prior to going into regulatory, I'd like to give a brief update on Canada. In Q4, we announced a strategic alliance with Tilray, licensing our brands and formulations to make Charlotte's Web products available in Canada. We are progressing on these plans with tinctures launching in Q2 and capsules, topicals, gummies to follow. All products are subject to royalties payable to Charlotte's Web on a revenue basis over the four-year term, more to come as we progress. This is just one example of our asset-light international strategy and one path for unlocking value of our IP.
To shift to regulatory, I would like to begin by providing some perspective on the recent position made by FDA on January 26. We support the U.S. Food and Drug Administration's recent call for Congress to regulate hemp-derived CBD. Over the past four years of investigation, the FDA has not provided a regulatory framework that works under its purview. Statements from the FDA indicate that absent congressional legislation, the situation is unlikely to change. With the FDA's call to action, we have seen more engagement from Congress in the last two months than ever before.
Support and credibility from BAT and MLB drive value that cannot be viewed on our balance sheet. Our leadership in DC starts with our engagement. Congress has requested industry data to understand and address the concerns made by the FDA. Charlotte's Web and industry peers have compiled and shared with Congress the safety and toxicology data that addresses these concerns. Shortly afterwards, representatives Morgan Griffith and Angie Craig reintroduced two bipartisan bills, The Hemp-Derived Consumer Protection and Market Stabilization Act of 2023; and just last week, this bill was designated H.R. 1629 to regulate hemp extract products under Dietary Supplement Regulatory framework. And secondly, the CBD Product Safety and Standardization Act of 2023 designated H.R. 1628, which would establish regulations for CBD as a food and beverage additive. We are moving to create a sensible regulatory framework for hemp-derived CBD that ensures compliance for companies. Such regulatory oversight can establish a foundation for product safety, quality and, ultimately, ensure consumer confidence is safe and effective CBD products availability.
We are not only focusing our attention to Washington, D.C., but have also actively been engaged in state-by-state regulation necessary to address Delta THC. Our home state Colorado was a first mover to address the issue of Delta. In late 2022, we sat on the Colorado task force established to make a recommendation to the general assembly by January 1 of this year. Our voice was strong as we led a favorable outcome for the Colorado hemp industry as the current draft of the bill addresses intoxicating cannabinoids, but preserves consumers access to highly therapeutic full-spectrum CBD products.
Additionally, the Colorado bill will establish transparency to consumers by creating THC labeling requirements. In order to maintain consistency in Charlotte's Web products and get ahead of state labeling requirements, we have to set a shelf life on our biomass to ensure future specification set will comply with pending state labeling regulations. The substantial biomass that was produced in 2019 in preparation for an anticipated FDA regulated category that hasn't yet come, created a supply of aging biomass inventory that will not meet future specifications due to THC degradation.
These labeling requirements are the triggering event behind our decision to write down a significant portion of our biomass. However, the company holds enough biomass and extract in specification to satisfy future sales. Colorado is a leader in both cannabis and hemp for the nation, and we are hopeful our home state will become a model state for future rules and regulations.
We also recently announced the appointment of our new Chief Scientific Officer, Marcel Bonn-Miller. Marcel comes to us with over two decades of excellence in cannabinoid research. He is leading product development clinical research, scientific regulatory support and more specifically, interfacing with the FDA science teams to support a regulatory pathway for hemp CBD extracts. His experience is key to supporting our regulatory and scientific goals as we innovate.
And as we navigate and lead the regulatory landscape, we are excited to bring the market an innovation pipeline to accelerate growth in the back half of 2023 and 2024. The NSF Certified for Sport Daily Edge tincture was the tip of the iceberg. We are strategically innovating with the consumer at the heart of every decision. The MLB partnership has played a pivotal role in this. We presented at MLB winter meetings in December and connected with more than 20 teams over spring training to educate trainers and decision-makers on broad-spectrum CBD.
If our NSF Certified products can support premier athletes to faster recovery, mental clarity, energy and sleep, imagine what they can do for the everyday consumer. Our MLB partnership and innovation pipeline are core to our primary strategy, grow the business. Our engagement with Congress to land a regulatory landscape for CBD is driving the second leg of our strategy, when in D.C. But I'd like to provide additional color to the third leg of our strategy, botanical wellness.
On the Q2 2022 earnings call, we discussed that we were exploring an investigational new drug pathway through the FDA. On our Q3 call, we further discussed the reasons why and how we could do this on a capital-free basis through potential partnering. Charlotte's Web's unique advantage lies in its intellectual property, including 7 hemp patents, safety and toxicology studies, GMP quality control systems and a state-of-the-art manufacturing and distribution facility.
Our IP can be licensed into a biotech partnership leveraging a clinical science and regulatory team to seek an IND and navigate clinical trials to, ultimately, create a botanical drug. The CBD market is estimated at $5 billion today with approximately $1 billion from Epidiolex, the only FDA-approved CBD drug to date. By partnering on an IND path, we provide risk-mitigated upside to our shareholders by unlocking IP value created since the inception of the company and leveraging our core strengths.
We are progressing with speed on this strategy, and we look forward to updating deeper as this leg unfolds. I'll now hand the call back to Jacques.
Jacques Tortoroli
Thanks, Jared. From what we learned in 2022, we're going to be cautious about our outlook for 2023, considering we could still be another year of federal ambiguity and state movements, but we'll be ready when regulations do land. To that end, we continue to focus on what we can control by executing on our three-pillar strategy of returning to growth, winning in D.C., and unlocking the value of IP in botanical wellness.
We significantly reset the company in 2022, rightsizing the cost base by lowering personnel costs, product offerings and operating complexity, and we intend to maintain these efficiency improvements. We added a new leadership team across key business functions in sales, e-commerce, operations, sports marketing, quality and science, manufacturing, and of course, Jessica.
We entered new distributor partnerships, including the first-ever employee -- employer CBD wellness program, new customers in new industry verticals, such as Wynn Hotels in Las Vegas. These partnerships will become more meaningful contributors to our top line over time. In October, we struck a groundbreaking strategic partnership with MLB via the only NSF Certified broad-spectrum product for sports called Daily Edge. MLB also became a meaningful shareholder in our company, and the partnership unlocks enormous relevant reach and audience for us, while supporting the lead's commitment to mental and overall wellness for its players and about 180 million fans. We're excited for the new season getting underway and executing across its Jewel Events as well.
As Jared mentioned in November, we partnered with Tilray for the manufacturing and distribution of Charlotte's Web products in Canada. This is the first of its kind agreement for Charlotte's Web to license our brands, intellectual property and formulations to a trusted international partner. It's a good example of our asset-light model for international market penetration. In November, we took liquidity concerns off the tables with the strategic investment from BAT in the form of an attractively priced convertible debt instrument. The $67 million in cash on the balance sheet at December, we have the liquidity to choicefully invest in growth initiatives consistent with our strategy. Capital access has become very limited within the category, and we see this as only reinforcing our right to win and an enormous competitive advantage. Finally, we took a hard look at our existing consumer brands, products, formats and our innovation pipeline.
We did consumer research and drove deep into consumer segmentations. We looked at the competitive land pricing scapes. We are prepared to leverage our unique partnership with MLB and our NFS certification with a pipeline of innovation over the coming years. All this sets up 2023. We have the right to win and build our leadership positions. Our 2022 partnerships with new distributors, MLB and BAT clearly evidence that.
While we can't control the regulatory landscape, we have a voice that is respected and we're engaged. Our brands, people, IT, science and full and broad spectrum formulations, unique seed-to-shelf supply chain and the state-of-the-art facility, our quality, all put us on top of the category today and our strategy that the liquidity to execute it clearly sets the path for the long game.
When you're breaking ground on a new and entirely new health and wellness category, it takes a combination of persistence, strategic thinking and unwavering tenacity to stay on the top despite these obstacles. We're committed to seeing this category through regulatory hurdles, ensuring consumer access to natural CBD and expanding our business to serve natural wellness seekers worldwide. That's our legacy. That's 2023. That's the path forward we walk by putting the consumer at the heart of everything we do and don't.
They haven’t set a date on that yet, but it has to be soon. IMO there setting the stage with the PR’s on the 21 and today to try and soften the release{ use as talking points}. But yes, along with you, I’m very much interested in the upcoming reports, 4th and yearend as well.
Up 4.42 percent. It's a good start.
Alright, down for the day. $31,000 in total trades, roughly 308 per trade on avg. Good volume for a down day however.
The down low, hush hush stuff, sure, sure. LOL!
First 4 hours, $29,000 in trades. Big day for this little company.
Well, that was my point. The IP doesn’t get moved forward at this time. The company stated in the last SEC filing 10Q that they put it on a shelve. They have no money to start pretrial. That makes it FULL STOP. Doesn’t matter on the Japan patent, or the other countries including the USA that they have. There not going forward with it. Nothing has changed in that regard.
Now if they later make a go for it, it will cost roughly 5 times more than the company is currently worth. And that with no guarantees that it will make it past phase 1 2 3 , much less developing a product and pipeline and those costs.
In any event once they find the money to start pretrial it will be after 2025 IF everything goes CVSI way. IMO
Well, as they stated, they don’t have the money to develop this at this time {SEC filing} If and when they do come up with 30 million plus, best guess to do so they would still have to pass Phase 1 2 3. That would be 2 or 3 years, best guess as the later phases are a good year alone. It is a nice time to roll this out, they will be coming out with their 4th and year end shortly, nice to have something, but nothing that will happen till after 2025 and that is if they pass 1 2 3. IMO
All they have to do now is do a phase and pass of 1,2,3 study and get FDA approval
CV Sciences, Inc. (OTCQB: CVSI) received a formal certificate of grant from the Japan Patent Office for its patent application 7216697.
The patent covers methods for treating smokeless tobacco addiction by administering pharmaceutical formulations containing CBD and nicotine. CV Sciences has also filed corresponding patent applications that provide similar patent protection in additional key markets, with patents already granted in the United States, Canada, Australia, Germany, Great Britain, France, Spain, Netherlands and Italy.
“The worldwide market for smokeless tobacco addiction is a multi-billion dollar sector, providing a life-changing treatment to people around the world,” stated Joseph Dowling, CEO of CV Sciences. “CV Sciences’ developmental efforts surrounding CBD and nicotine have the potential to alter healthcare with a safe, natural method to reducing addiction to harmful substances. Japan Patent Office’s patent grant further validates our first-of-its-kind treatment and positions the company to meet the medical needs of millions of patients globally.”
CV Sciences’ initial drug candidate (CVSI-007) contains nicotine and CBD to support the cessation of smokeless tobacco use and addiction. With the Japan Patent Office’s formal grant of the patent, the company will further development efforts and continue to seek approval from the Food and Drug Administration (FDA) to commercialize the world’s first and only FDA-approved treatment for smokeless tobacco addiction.
Charlotte's Web Reports 2022 Fourth Quarter And Year-End Financial Results
https://www.prnewswire.com/news-releases/charlottes-web-reports-2022-fourth-quarter-and-year-end-financial-results-301779610.html
In the morning --Charlotte's Web Q4-2022 Earnings Call and Webcast Notice
MARCH 09, 2023
DENVER, March 9, 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 fourth-quarter and year-end financial results before markets open on March 23, 2023. A conference call to discuss the results is scheduled for the same day at 11:00 a.m. Eastern Time.
Charlotte's Web is the market leader in hemp CBD wellness and the Official CBD of Major League Baseball(C) (CNW Group/Charlotte's Web Holdings, Inc.)
There are three ways to join the call:
Register and enter your phone number at https://emportal.ink/3Zj6SdP to receive an instant automated call back, or
Dial 1-416-764-8659 or 1-888-664-6392 approximately 10 minutes before the conference call and provide confirmation number 89462125, or
Listen to the live webcast online.
Earnings Call Replay
A recording of the call will be available through March 30, 2023. To listen to a replay of the earnings call please dial 1-416-764-8677 or 1-888-390-0541 and provide conference replay ID 462125. A webcast of the call will also be accessible through the investor relations section of the Company's website for an extended period of time.
Subscribe to Charlotte's Web investor news.
About Charlotte's Web Holdings, Inc.
Charlotte's Web Holdings, Inc., a Certified B Corporation headquartered in Denver, is the market leader in innovative hemp extract wellness products under a family of brands that includes Charlotte's Web™, CBD Medic™, and CBD Clinic™. Charlotte's Web whole-plant CBD extracts come in full-spectrum and broad-spectrum (THC-free) options, including the world's only broad-spectrum CBD certified NSF for Sport®, which is the official CBD of Major League Baseball©. Founded by the seven Stanley Brothers, Charlotte's Web ignited the CBD industry when the brothers came to global prominence with the coverage of a young girl's astounding reaction to their hemp extract. Their advocacy changed laws, public perception, and research around the vast health potential of plant-based solutions. The Stanleys built their business with the mission to bring safe, botanical options to health seekers worldwide. Charlotte's Web branded premium quality products start with proprietary hemp genetics that are American farm-grown using organic and regenerative cultivation practices. The Company's hemp extracts have naturally occurring botanical compounds including cannabidiol ("CBD"), CBC, CBG, terpenes, flavonoids, and other beneficial compounds. The Company's CW Labs R&D division advances hemp science at a center of excellence in Louisville, Colorado. Charlotte's Web product categories include CBD oil tinctures (liquid products) CBD gummies (sleep, stress, exercise recovery), CBD capsules, CBD topical creams and lotions, as well as CBD pet products for dogs. Through its substantially vertically integrated business model, Charlotte's Web maintains stringent control over product quality and consistency with 20+ product lot testing for quality assurance. Charlotte's Web products are distributed to retailers and?health care practitioners throughout the U.S.A, and online through the Company's website at www.charlottesweb.com.
CVSI, 861 dollars in total trades today. Not one went off at ask. This one is actually giving penny stocks a bad name. Pathetic day for this stock.
But then you put in that hilarious meme and all is well. Nice touch.
3 hours in. $147 in trades 10 total 14.7 dollars per. Were going to call that slow.
Well you never know, that "hunt" may have caught one. If not there are many more to come. More like follow the rules while in those bright orange jump suits But it's just an opinion
Hard to see a bottom until everything gets sorted out. Not good or bad, just unclear.
$3400 on 26 trades today, not too bad. What do you think, $6000 dollar day?
If CVSI is planning to sell out to CW to be part of that MLB deal I think they will have to wave that GP to management.
Well perhaps the research is wrong, or perhaps it’s failure in leadership. Or maybe they just forgot.
Quick chime in I see CVSI is up today 0.004. good. I also see CW is up 4 cents, about what CVSI is worth. Also, good.
And I finally got the explanation of what is often mentioned here directly from an author who just wrote a book about it.
LOL: Briahna Joy Gray BREAKS the brain of Rising guest Bethany Mandel by asking her to define "wokeness" pic.twitter.com/uwRSSH0LaM
— The Vanguard (@vanguard_pod) March 14, 2023
Well that's an interesting find! Geez.
Pretty fair post on CVSI. Yes, FDA, congress, pharma has had an effect. The FDA in regards to sales isn’t as big as a thing to me anymore - Read a report that does the testing breakdown of CBD products. Their claim was 90% of companies test their CBD products through an accredited third-party lab. If I remember right that was 500 companies. I think they had 456 that were, well here I’ll look it up--- “Third-party testing refers to the testing of CBD products performed by accredited, independent laboratories specializing in cannabis analysis. Laboratories commonly test for cannabinoids and terpenes in the hemp extract, as well as the presence of any contaminants such as heavy metals, residual solvents, and mycotoxins. Once testing is complete, Certificates of Analysis (COAs) are issued verifying the results. All legit companies post COAs publicly as proof of testing and for your reference”.
Now we know mass wholesalers will sell you CBD that is certified, put it in a bottle, jar, whatever, put your colorful sticker on it and if I remember right, per motricity’s post when he wrote about it, will even ship it out for you. The only thing you have to do is find your sale points. I don’t think your margin is going to be very high, but I think more than a few are doing just that. I won’t be but if could find the companies with the laboratories that maybe an interesting play. IMO
Anyway, up early to dig into the banking, and its ramifications, and that will keep me busy all the way up to later this week when Powell speaks. Guessing a qt point, but a lot can happen between now and then.
Again, that was a good post you made.
I see your thoughts on CW, but, what are your thoughts on CVSI, how do you think there going to do?
Again we'll see whats what as this year rolls. But as the CVSI management has said, if they can't get a loan . . . . . . . . .“and the failure of the Company to raise additional capital could adversely affect its future operations and viability”
Well I guess a person needs to compare with CVSI's 4's. Even more important is the share volume of those 4's. I could tell you the total but I don't think you would believe it. You should add them up yourself, and you still might not believe it.
Only posted dates, Filed are a few days earlier. If you want to have some fun, add them all up, I think you would be impressed {shares total}
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2023-03-17 2023-03-15View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2022-11-07 2022-10-21View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2022-11-07 2022-10-21View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2022-08-15 2022-08-12View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2022-07-29 2022-07-21View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2022-04-01 2022-03-30View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2022-04-01 2022-03-30View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-06-03 2021-06-02View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-06-03 2021-06-02View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-06-03 2021-06-02View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-06-03 2021-06-02View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-05-24 2021-05-21View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-03-11 2021-03-09View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-03-11 2021-03-09View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-03-11 2021-03-09View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-02-09 2021-01-13View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2021-01-19 2021-01-06View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-12-08 2020-11-30View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-08-03 2020-07-29View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-06-19 2020-05-22View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-06-18 2020-06-16View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-06-18 2020-06-16View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-06-18 2020-06-16View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-06-18 2020-06-16View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-06-18 2020-06-16View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-05-15 2020-05-14View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-05-11 2020-01-07View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2020-03-25 2020-03-20View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-03-24 2020-03-20View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-03-24 2020-03-20View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-03-19 2019-02-20View all with same reporting date
5
Annual statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-02-12 2019-12-31View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2020-02-07 2020-02-06View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2019-12-31 2019-12-27View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2019-12-23 2019-12-05View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2019-11-12 2019-11-08View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2019-11-07 2019-11-07View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2019-11-01 2019-10-21View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2019-10-31 2019-10-24View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2019-08-27 2019-08-22View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2019-03-25 2019-03-15View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2019-01-14 2019-01-10View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2019-01-07 2018-12-26View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2018-09-14 2018-08-04View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-06-14 2018-03-20View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-06-06 2018-02-05View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-06-06 2018-02-05View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-05-08 2018-03-20View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-05-08 2018-03-20View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-03-28 2017-05-16View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2018-03-28 2017-05-10View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-03-28 2017-07-14View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-03-28 2017-07-14View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-03-28 2017-07-14View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2018-03-28 2017-07-14View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2017-05-26 2016-10-05View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2017-03-30 2017-03-15View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2017-03-30 2017-03-15View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2017-03-30 2017-03-15View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2016-10-17 2016-10-05View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2016-10-17 2016-10-05View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2016-10-17 2016-10-05View all with same reporting date
3
Initial statement of beneficial ownership of securitiesOpen document FilingOpen filing 2016-07-29 2016-06-02View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing Amendments
2016-07-26 2016-07-06View all with same reporting date
4/A
Statement of changes in beneficial ownership of securities - amendmentOpen document FilingOpen filing 2016-07-21 2016-07-06View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing Amendments
2016-07-21 2016-07-06View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing Amendments
2016-07-18 2016-07-06View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2016-05-23 2016-05-19View all with same reporting date
4/A
Statement of changes in beneficial ownership of securities - amendmentOpen document FilingOpen filing 2016-04-11 2014-10-01View all with same reporting date
4
Statement of changes in beneficial ownership of securitiesOpen document FilingOpen filing 2016-04-11 2016-02-28
With CVSI coming out with those yearend number shortly let’s put out the current numbers on where they need to improve and run a comparison when the Sec filings come out.
Let’s start with P/B which was already talked about here. For ref. under 1.00 would be a goal, however for some they want under 0.3.
Price to Book for cvsi is 5.72x, I know of no other in this sector that is higher.
Financial strength, nope. As they stated in the last 10Q they need to secure a loan. The problem with that is they have no operating profits and it certainly is questionable if their current assets would be enough.
And what about Profitability
ROE NEG- 250.71%
ROA NEG- 76.09%
ROI NEG- 228.01%
Growth rates - None
Operating Profit Margin NEG- 77%
Net Profit Margin NEG- 85%
Balance sheet, income statement, cash flow all falling since 2019.
In regards to earnings, they haven’t had any in 3 years. During that 3-year period they have went from over 6 dollars a share down to 3 cents a share.
These are all current numbers.
A little more color on that financial strength or lack of.
From the SEC filings we have:
The Company's operating results and accumulated deficit, amongst other factors, raise substantial doubt about the Company's ability to continue as a going concern. The Company will continue to pursue the actions outlined above, as well as work towards increasing revenue and operating cash flows to meet its future liquidity requirements. However, there can be no assurance that the Company will be successful in any capital-raising efforts that it may undertake, and the failure of the Company to raise additional capital could adversely affect its future operations and viability.
And from that “The Company's operating results and accumulated deficit, amongst other factors, raise substantial doubt about the Company's ability to continue as a going concern”
Operating results in regards to this company shows losses every quarter for 3 years in a row. I don’t believe there will be much help from the operating results, I do believe there will be even more losses, which I would think leads to yet another business loan if they can get one, from somewhere.
“ there can be no assurance that the Company will be successful in any capital-raising efforts”
there have been no capital-raising in regards to business loans in Oct, nor Nov, Dec, Jan, and here we are in March. They did get a loan earlier for 1.6 million and have to pay back 2.0 million in a 9 month period.
“and the failure of the Company to raise additional capital could adversely affect its future operations and viability” .
Yes, it certainly does. Even harder with the banks tightening up risk management loans.
Anyway plenty room to improve and a great way to measure what they have done, good or bad. All IMO
Well as I said we’ll see. I do know were going to have that SEC 4th/yearend, numbers coming up shortly. It will be a great way to measure exactly how all have preformed and from that a person can project. Numbers do the talking better than words and a way to compare strength/weakness of companies/business plans/management.
Not really sure you can do a comparison between CV and CW, at least not without laughing. CW is far bigger, more sales, better positioned, number 1 in the publicly traded, and has made some decent deals in the recent. CV on the other hand has far lower sales, profit, come on now, and as far as position , they just had to take on a 1.6 million loan they have to pay back in 2.0 million in a 9 month period. And frankly they were lucky to get that IMO. The company is valued at 6.0 million but in factoring 1.9 million in long-term debt and that over 2.0 million in those golden parachute’s that anybody has to deal with to buy them, well even if they gave away the company for free, yes I know they won’t, it would still cost 4 million for the company, and that for the privilege of losing money every quarter. Currently there too small to succeed. And they join a sea of many others in that boat. We’ll see, but they will have to get a lot bigger, faster. I think once the sector gets thinned out the ones that are left will be all right. But in a best guess something like 9 out of ten will have to disappear. IMO
It’s nice that you posted Stuart Tomc thoughts last year, but since he left the company a few months back, are you saying he no longer believes in CBD or is it CVSI. I mean he’s no longer with a CBD company. Or I suppose CVSI just didn't need him, couldn't find a position for him, couldn't use him. Interesting that. In any event he's gone!
All I can say is WOW!!! they sure do like rewarding themselves with those 4's. Again WOW
Well, these were grants, so. No open market buys for several years now. You know it’s interesting, CVSI came from a company called Foreclosure Solutions, Inc. Ironically going into this year and most likely the next that would be a good business to be in I would think.
So, if you took the time to add up all those 4’s by share count. I do have a question. It appears they don’t retire the shares anywhere need the same rate. So does that mean after they collect their pay out, do they just put the shares back into the float in bulk for the shareholders to purchase? In other words, recycled shares?
I think I have the answer for that but would like a second opinion