SAN DIEGO — CV Sciences, Inc., a consumer wellness company specializing in hemp extracts and other proven science-backed, natural ingredients and products, reported its financial results for the quarter ended June 30, 2024.
Second Quarter 2024 and Recent Financial and Operating Highlights
- Generated revenue of $4.0 million for second quarter 2024, consistent with $4.0 million for the second quarter 2023 and the first quarter 2024;
- Recognized gross margin of 47.0% for second quarter 2024 compared to 43.3% for the second quarter 2023 and a sequential improvement from 46.3% for the first quarter 2024;
- Cash balance of $0.5 million at quarter end compared to $1.3 million at the end of 2023;
- 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;
- Generated additional shelve placement and associated revenue after the launch of pet chews for hip and joint health and calming care chews;
- Entered into a financing with Streeterville for net proceeds of $0.9 million;
- Recognized an adjusted EBITDA loss of $6,000 for the second quarter 2024, close to achieving operating cash flow break-even;
- Acquired Elevated Softgels, a leading manufacturer of encapsulated softgels and tinctures for the supplement and nutrition industry, based in Colorado; and
- Appointed Maxim Group LLC as non-exclusive financial advisor and investment banker to provide strategic financial advisory and investment banking services. With the help of Maxim, the Company intends to continue to build an efficient and cost effective consumer products platform and continue to evaluate inbound and outbound merger, sale, acquisition or other options for the Company.
“We are pleased with our second quarter 2024 results. Revenues for our core business remained stable at $4 million in the second quarter 2024 despite a challenging environment. With our recently completed acquisitions and new product innovations, we are planning to grow our revenue in the second half of 2024. Our 47.0% gross margin in the second quarter 2024 is our best gross margin in the last 13 quarters,” stated Joseph Dowling, Chief Executive Officer of CV Sciences. “Our second quarter 2024 progress demonstrates our continuous commitment to innovation and cost-efficient execution as we move closer to profitability and positive cash flow. We are excited about the additional opportunities of Elevated Softgels, our most recent acquisition, which we closed in May 2024. In addition, we are thrilled to appoint Maxim as our strategic financial advisor to accelerate our organic and non-organic growth opportunities.”
Operating Results – Second Quarter 2024 Compared to Second Quarter 2023
Sales for second quarter 2024 were $4.0 million, flat compared to the second quarter 2023. Our B2B sales declined slightly by 3%, offset by a 4% increase in our B2C sales. B2C sales increased by $0.1 million to $1.7 million in the second quarter 2024 mostly due to additional revenue from our subscription customers. The total number of units sold during the second quarter 2024 decreased by 12.5%, offset by higher average sales prices per unit of 12.1%. The average sales price per unit improved due to product and channel mix. We generated an operating loss of $0.6 million in the second quarter 2024, compared to an operating loss of $1.1 million in the second quarter 2023. The improvement is mostly due to higher gross margins and reduced operating expenses. The Company had negative adjusted EBITDA of $6,000 for the second quarter 2024 compared to $0.9 million in the second quarter of 2023.
About CV Sciences, Inc.
CV Sciences, Inc. (OTCQB:CVSI) is a consumer wellness company specializing in nutraceuticals and plant-based foods. The Company’s hemp extracts and other science-backed, natural ingredients and products 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. 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 PubMed.gov. +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. The Company’s Cultured Food brand provides a variety of 100% plant-based food products. Committed to crafting nutritious and flavorful alternatives, Cultured Foods caters to individuals seeking vegan, gluten-free, or flexitarian options for a wholesome and satisfying culinary experience. In addition, the Company owns Elevated Softgels, a leading manufacturer of encapsulated softgels and tinctures for the supplement and nutrition industry. CV Sciences, Inc. has primary offices and facilities in San Diego, California, Grand Junction, Colorado, and Warsaw, Poland. The Company also operates a drug development program focused on developing and commercializing CBD-based novel therapeutics.
