CV Sciences Inc (CVSI)

[GE_Jim]

Part IV The numbers. Rough numbers used at this point.
Sales were 16 million in 2022. Down from 20 million in 2021.
Cost of goods sold was 10 million, down from 11 million.
Gross profit was 5 million down from 8 million.
SG&A was 12 million 74 percent of sales!
Adjusted EBITDA NEG 6 million.
600k cash at end of year, down from 1.4 million at start of year.
Total assets were 12 million.
Total liabilities however were 13 million.
Accumulated deficit was neg 87 million.
Net loss attributable to common stockholders for 2022 was neg 9 million.
Loss per share 0.07 cents. “Note the stock is only 4 cents at time of this post.

A few notes here and all IMO. For every 1 dollar in sales it cost them 1.56 to do it.
The cash burn rate doesn’t leave a lot of room, they only have {600k cash} when it’s gone, it generally leads to somebody not getting paid, suppliers, workers, etc. Again, the burn rate is higher than 600K
With an Accumulated deficit of neg 87 million, you will have a hard time getting a loan, at least at a decent rate, or for a decent amount, as it would be viewed as a high risk by the lender and since your liabilities are higher than your assets it would be viewed as a problem as well. All IMO
However I am interested on what they will do, or try and do to escape this position. It also will be interesting when the 1st qt {just closed} numbers come out.