CV Sciences Inc (CVSI)

[Wolf-man jack]

TOMMY @ Yahoooooo Said:

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=175424981

WQLF SAYS: Before the Acquisition announcement, the WQLF was hoping there was a way for CV Sciences to get the hades out of WOKE California. It appears that the WQLF’s premonition may come to fruition. The Lease for the San Diego office space will be most likely vacated at the end of May 2025 according to the lease agreement that can be found in the SEC filings on page 12.

https://www.sec.gov/ix?doc=/Archives/edgar/data/1510964/000095017024127040/cvsi-20240930.htm

5. LEASES
In April 2022, the Company entered into a new lease agreement for its main office facility. The lease is for the Company's operations, warehouse, sales, marketing and back office functions. The facility is approximately 6,000 square feet and located in San Diego, California. The lease term is three years with a total lease obligation of approximately $0.4 million. The lease does not include an option to renew. Based on the present value of the lease payments for the remaining lease term, the Company recognized an operating lease asset of $0.3 million and lease liabilities for operating leases of $0.4 million, respectively, on May 1, 2022. As of September 30, 2024, the Company had an operating lease obligation and operating lease asset of $0.1 million related to the facility.
The Company's operating leases are included in "Right of use assets" on the Company's September 30, 2024 Condensed Consolidated Balance Sheet, and represents the Company's right to use the underlying assets for the lease term. The Company's obligation to make lease payments is included in "Operating lease liability - current" and "Operating lease liability" on the Company's September 30, 2024 Condensed Consolidated Balance Sheet. Operating lease expense is recognized on a straight-line basis over the lease term. During the three and nine months ended September 30, 2024, the Company's total lease cost was $29,357 and $86,380, respectively. Total lease costs was mostly comprised of operating lease costs. Short-term lease costs related to short-term operating leases and variable lease costs were $35,657 and $59,429 during the three and nine months ended September 30, 2024.
Because the rate implicit in the leases is not readily determinable, the Company uses the rate of interest that a lessee would have to pay to borrow on a collateralized basis over a similar term in an amount equal to the lease payments in a similar economic environment. Information related to the Company's operating lease assets and related lease liabilities were as follows:

September 30, 2024

Remaining lease term (in months)
8

Discount rate
7.0%

Maturities of lease liabilities as of September 30, 2024 were as follows (in thousands):

Year ending December 31,

2024 (remaining three months)
$35

2025
$.59

Total lease liabilities
$92
Current operating lease liabilities $92

Non-current operating lease liabilities

Total lease liabilities

$92



One of the benefits from the Acquisition and the possibility of moving CV Sciences headquarters to Boulder Colorado is the HIGH TAXES and Ridiculous Regulations in California. Here is the difference of Corporate Taxes between California and Colorado.

Colorado vs California Corporate Tax

Based on the provided information, here’s a summary of the key differences between Colorado’s corporate tax and California’s corporate tax:
Tax Rate:

Colorado: Flat 4.55% assessed on Colorado net income (defined as federal taxable income with modifications)
California: Graduated tax rate, ranging from 8.84% to 13.3% based on net income (as of 2021)
Net Income Definition:

Colorado: Uses federal taxable income with modifications
California: Uses federal taxable income with modifications, but with some additional adjustments (e.g., net operating losses, tax credits)
Carryforward Period:

Colorado: 20-year carryforward period for net operating losses (as of 2021)
California: 3-year carryforward period for net operating losses (as of 2021)

Other Considerations:

Both states have a flat tax rate for corporations, but California’s rate is more complex due to its graduated structure.
Colorado’s 4.55% rate is relatively low compared to other states, while California’s rates vary widely depending on net income.
Colorado has a simpler tax code and fewer tax credits and deductions compared to California.
Rankings:

According to the 2024 State Business Tax Climate Index, Colorado ranks 27th, while California ranks 48th (out of 50 states).
In summary, Colorado’s corporate tax system is characterized by a flat 4.55% rate, a simpler code, and a longer carryforward period for net operating losses. California’s system, on the other hand, has a more complex graduated rate structure, with rates ranging from 8.84% to 13.3%. While both states have their own strengths and weaknesses, Colorado’s tax environment is generally considered more business-friendly and competitive compared to California’s“


It appears that Cv Science’s will be locating our Headquarters to Boulder, Colorado. In the acquisition agreement, the building of Extract Labs Inc. is owned by CEO Craig Henderson’s LLC company. The agreement states that he is to extend the lease for an additional three years. CV Sciences will be extracting at the facilities utilizing their Extraction equipment. We will also be extracting some of our products at Elevated Softgels located in Grand Junction, Colorado located 255 miles from Boulder Colorado. The hemp supplies currently utilized by Extract Labs and CV Sciences is grown in Colorado which in return will produce cost savings to CV Sciences and Extract Labs. With the combination of both concerns, buying in a larger bulk will also produce a higher cost savings. This is how Scalability works.

"We are thrilled that Extract Labs and its employees are joining CV Sciences as another milestone in our transition to a thriving health and wellness company. The acquisition synergies are expected to increase our revenue and customer base, allow us to leverage our key assets, optimize operations and processes, and drive long-term growth and shareholder value. Extract Labs is a stand-alone profitable business and our plan is to increase its existing revenue base and further leverage its existing capacity," said Joseph Dowling, Chief Executive Officer of CV Sciences. "In addition, we are planning to in-source the manufacturing of select +PlusCBD™ branded products providing an opportunity for meaningful cost savings. Extract Labs manufacturing capability will provide us with greater control over our supply chain and accelerate our new product development cycle."

https://www.morningstar.com/news/pr-newswire/20241121ny63880/cv-sciences-inc-enters-into-definitive-agreement-to-acquire-extract-labs

https://elevatedsoftgels.com/


Stores Carrying Extract Labs CBD

“Based on the provided search results, Extract Labs CBD products are available for wholesale and retail purchase through their official website and physical store in Lafayette, Colorado. Additionally, they have a wholesale portal for authorized retailers to purchase their products. Here are some details:
Extract Labs Official Website: Customers can purchase Extract Labs CBD products directly from their website, including their full spectrum CBD oil, CBD creams, gummies, capsules, and more.
Physical Store: Extract Labs has a physical store located in Lafayette, Colorado, where customers can visit and purchase products in person.
Wholesale Portal: Authorized retailers can sign up for the wholesale portal to purchase Extract Labs CBD products at discounted rates for resale in their own stores or online platforms.
Authorized Retailers: Although specific retailers carrying Extract Labs CBD products are not listed, the company mentions that their products are available through various online marketplaces and brick-and-mortar stores. Customers can contact Extract Labs directly to inquire about authorized retailers in their area.
Please note that the search results do not provide an exhaustive list of specific stores that carry Extract Labs CBD products. It’s recommended to visit the Extract Labs website or contact their customer service to find authorized retailers or to inquire about purchasing products directly from the company.”