CV Sciences Inc. Reports Third Quarter 2023 Financial Results

CV Sciences, Inc.

SAN DIEGO, Calif. — CV Sciences, Inc. (OTCQB:CVSI), a consumer wellness company specializing in hemp extracts and other proven science-backed, natural ingredients and products, today announced its financial results for the quarter ended September 30, 2023.

Third Quarter 2023 and Recent Financial and Operating Highlights

  • Increased revenue to $4.1 million for the third quarter 2023 compared to $3.8 million for the third quarter 2022 and a sequential improvement from $4.0 million for the second quarter 2023;
  • Recognized gross margin of 45.1% for the third quarter 2023 compared to 41.6% for the third quarter 2022 and a sequential improvement from 43.3% for the second quarter 2023;
  • Cash balance of $1.6 million at quarter end compared to $0.6 million at the end of 2022;
  • Generated cash flow from operations of $2.4 million in the first nine months of 2023 compared to cash used in operations of $2.1 million in the first nine months of 2022; cash flow from operations included employee retention credit (ERC) under the CARES Act for a total of $2.5 million;
  • Further established number one position as top-selling hemp extract brand in the natural product retail sales channel, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry;
  • Launched PlusCBD™ Reserve Sleep Gummies, specifically designed for better sleep;
  • Launched M&A strategy that will transition the Company to continue its prominent role in the CBD category, but also leverage our strengths to pursue non-CBD nutraceuticals and other plant-based food products, both domestically and internationally;
  • Executed non-binding letter of intent to acquire a plant-based food company in Europe, providing the Company with a manufacturing and distribution foothold in the EU that will allow for leverage of our key strengths and competencies; and
  • Continued to evaluate select partnership opportunities, including acquisitions or other options for the Company.

“We are very pleased with our third quarter 2023 results. In a challenging environment, our revenues of $4.1 million increased both sequentially and year-over-year. Our gross margin also improved to 45.1%, again, both a sequential and year-over-year increase,” stated Joseph Dowling, Chief Executive Officer of CV Sciences.  “Our third quarter progress demonstrates our continuous commitment to innovation and cost-efficient execution as we move closer to profitability and positive cash flow.  During the quarter, we launched our plan to transition to a global health and wellness company that will use M&A as a vehicle to leverage the strengths and assets of our Company.  We are thrilled to announce the first step in this plan with the signing of a non-binding letter of intent to acquire a plant-based food company in Europe, which will allow us to leverage our core competitive advantages to drive long-term growth and shareholder value.”


Operating Results – Third Quarter 2023 Compared to Third Quarter 2022

Sales for third quarter 2023 were $4.1 million, an increase of 9% from $3.8 million for the third quarter 2022. The increase is primarily due to higher number of units sold during the third quarter 2023 by 6%, and increases in average sales price per unit. We generated an operating loss of $0.4 million in the third quarter of 2023, compared to an operating loss of $0.9 million in the third quarter 2022, mostly due to higher sales, improved gross margins and lower operating expenses. The Company had negative adjusted EBITDA for the third quarter of 2023 of $0.4 million, compared to negative adjusted EBITDA of $1.2 million in the third quarter of 2022.

About CV Sciences, Inc.

CV Sciences, Inc. (OTCQB:CVSI) is a consumer wellness company specializing in hemp extracts and other proven, science-backed, natural ingredients and products, which are sold through a range of sales channels from B2B to B2C. The Company’s PlusCBD™ branded products are sold at select retail locations throughout the U.S. and are the top-selling brands of hemp extracts in the natural products market, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry.  CV Sciences follows all guidelines for Good Manufacturing Practices (GMP) and the Company’s products are processed, produced, and tested throughout the manufacturing process to confirm strict compliance with Company and regulatory standards and specifications.  With a commitment to science, PlusCBD™ product benefits in healthy people are supported by human clinical research data, in addition to three published clinical case studies available on  PlusCBD™ was the first hemp extract supplement brand to invest in the scientific evidence necessary to receive self-affirmed Generally Recognized as Safe (GRAS) status. CV Sciences, Inc. has primary offices and facilities in San Diego, California. The Company also operates a drug development program focused on developing and commercializing CBD-based novel therapeutics. Additional information is available from or by visiting

Forward Looking Statements

This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risk and uncertainties. CV Sciences does not undertake any obligation to publicly update any forward-looking statements, except as required by applicable law. As a result, investors should not place undue reliance on such forward-looking statements.


We prepare our financial statements in accordance with generally accepted accounting principles for the United States (GAAP). The non-GAAP financial measures, such as net income (loss) per share and Adjusted EBITDA included in this press release are different from those otherwise presented under GAAP. We use non-GAAP measures internally to evaluate our performance and make financial and operational decisions that are presented in a manner that adjusts from their equivalent GAAP measures or that supplement the information provided by our GAAP measures. The non-GAAP financial measures exclude non-cash compensation expense for stock options. When evaluating the performance of our business and developing short and long-term plans, we do not consider share-based compensation charges. Although share-based compensation is necessary to attract and retain quality employees, our consideration of share-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such grants. Because of the varying availability of valuation methodologies and subjective assumptions, we believe that the exclusion of share-based compensation allows for more accurate comparison of our financial results to previous periods. In addition, we believe it useful to investors to understand the specific impact of the application of the fair value method of accounting for share-based compensation on our operating results.

Adjusted EBITDA is defined by us as EBITDA (net income (loss) plus depreciation, interest and income tax expense), minus interest income, further adjusted to exclude certain non-cash expenses and other adjustments as set forth below. We use Adjusted EBITDA because we believe it more clearly highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since Adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.

We use Adjusted EBITDA in communicating certain aspects of our results and performance, including in this press release, and believe that Adjusted EBITDA, when viewed in conjunction with our GAAP results and the accompanying reconciliation, can provide investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of Adjusted EBITDA is useful to investors in making period-to-period comparison of results because the adjustments to GAAP are not reflective of our core business performance.

Previous articleCannabis M&A Trend Report Issued by Leading Corporate Law Firm Marks Industry Shift
Next articleShiny Health & Wellness Appoints Toronto Executive Jonathan Hemi to Board of Directors