cbdMD, Inc. Files 2024 10-K: Assets $3.9M, Liabilities $3.0M

TL;DR

CBDD 10-K filed: Assets $3.9M, Liabilities $3.0M. FY24 numbers out.

AI Summary

cbdMD, Inc. filed its 10-K for the fiscal year ending September 30, 2024, reporting total assets of $3,939,057 and total liabilities of $2,960,573. The company's previous name was Level Brands, Inc., with a name change on February 2, 2017. The filing details various financial figures, including share counts and authorized shares.

Why It Matters

This filing provides a snapshot of cbdMD, Inc.'s financial health as of September 30, 2024, indicating its asset and liability position for investors and creditors.

Risk Assessment

Risk Level: medium — The company has a significant amount of liabilities relative to its assets, and its financial performance and future prospects are subject to the volatile CBD market.

Key Numbers

• $3.94M — Total Assets (As of September 30, 2024)
• $2.96M — Total Liabilities (As of September 30, 2024)
• 50,000,000 — Authorized Common Stock (As of September 30, 2024)
• 5,000,000 — Authorized Series A Cumulative Convertible Preferred Stock (As of September 30, 2024)

Key Players & Entities

• cbdMD, Inc. (company) — Filer of the 10-K
• Level Brands, Inc. (company) — Former name of cbdMD, Inc.
• 2024-09-30 (date) — Fiscal year end
• $3,939,057 (dollar_amount) — Total assets as of September 30, 2024
• $2,960,573 (dollar_amount) — Total liabilities as of September 30, 2024

FAQ

Key Financial Figures

• $19.2 m — ed GAAP operating loss by approximately $19.2 million, including impairment loss of $13
• $13.2 million — 2 million, including impairment loss of $13.2 million in fiscal 2023, and our non-GAAP adjust
• $3.2 million — 23, and our non-GAAP adjusted EBTIDA by $3.2 million. In addition, we reduced the cash consu
• $4.9 million — ced the cash consumed in fiscal 2023 of $4.9 million to approximately $0.7 million during fi
• $0.7 million — l 2023 of $4.9 million to approximately $0.7 million during fiscal 2024, including a signifi
• $200,000 — owever we believe this had greater than $200,000 impact to our direct-to-consumer revenu
• $4.2 million — fiscal year 2023 we spent approximately $4.2 million and $6.9 million, respectively, on bran
• $6.9 m — we spent approximately $4.2 million and $6.9 million, respectively, on brand developme
• $2 billion — ment to address the needs of the nearly $2 billion canine arthritis treatment market accor

Filing Documents

• ycbd20240930c_10k.htm (10-K) — 1882KB
• ex_722096.htm (EX-23.1) — 3KB
• ex_722097.htm (EX-31.1) — 12KB
• ex_722098.htm (EX-31.2) — 12KB
• ex_722099.htm (EX-32.1) — 6KB
• c02.jpg (GRAPHIC) — 59KB
• c03.jpg (GRAPHIC) — 52KB
• cbd01.jpg (GRAPHIC) — 58KB
• ycbd_10klogo.jpg (GRAPHIC) — 5KB
• 0001437749-24-037840.txt ( ) — 9084KB
• ycbd-20240930.xsd (EX-101.SCH) — 78KB
• ycbd-20240930_cal.xml (EX-101.CAL) — 68KB
• ycbd-20240930_def.xml (EX-101.DEF) — 548KB
• ycbd-20240930_lab.xml (EX-101.LAB) — 457KB
• ycbd-20240930_pre.xml (EX-101.PRE) — 582KB
• ycbd20240930c_10k_htm.xml (XML) — 1190KB

Management's Discussion and Analysis of Financial Condition and Results of Operation

Management's Discussion and Analysis of Financial Condition and Results of Operation. 20 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk. 25 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data. 25 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure. 25 ITEM 9A.

Controls and Procedures

Controls and Procedures. 25 ITEM 9B. Other Information. 26 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections. 26 PART III ITEM 10. Directors, Executive Officers and Corporate Governance. 27 ITEM 11.

Executive Compensation

Executive Compensation. 27 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters. 27 ITEM 13. Certain Relationships and Related Transactions, and Director Independence. 27 ITEM 14. Principal Accounting Fees and Services. 27 PART IV ITEM 15. Exhibits and Consolidated Financial Statement Schedules. 28 ITEM 16. Form 10-K Summary. 28

SIGNATURES

SIGNATURES 31 OTHER PERTINENT INFORMATION Unless the context otherwise indicates, when used in this report, the terms the "Company," "cbdMD, "we," "us, "our" and similar terms refer to cbdMD, Inc., a North Carolina corporation formerly known as Level Brands, Inc., and our subsidiaries CBD Industries LLC, a North Carolina limited liability company formerly known as cbdMD LLC, which we refer to as "CBDI", Paw CBD, Inc., a North Carolina corporation which we refer to as "Paw CBD" and cbdMD Therapeutics LLC, a North Carolina limited liability company which we refer to as "Therapeutics" and Proline Global, LLC a North Carolina limited liability company which we refer to as "Proline Global". In addition, "fiscal 2023" refers to the year ended September 30, 2023, and "fiscal 2024" refers to the year ended September 30, 2024. We maintain a corporate website at www.cbdmd.com. The information contained on our corporate website and our various social media platforms are not part of this report . 2 Table of Contents CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION This report contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These forward-looking statements that relate to future events or our future financial performance and involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to differ materially from any future results, levels of activity, performance or achievements expressed or implied by these forward-looking statements. Words such as, but not limited to, "believe," "expect," "anticipate," "estimate," "intend," "plan," "targets," "likely," "aim," "will," "would," "could," and similar expressions or phrases identify forward-looking statements. We have based these forward-looking stateme

DESCRIPTION OF BUSINESS

ITEM 1. DESCRIPTION OF BUSINESS Our Company General We own and operate the nationally recognized CBD (cannabidiol) brands cbdMD and Paw CBD as well as our ATRx Labs brand of functional mushrooms. We believe that we are an industry leader producing and distributing dietary supplements and topical products, with an initial focus on hemp derived products including broad spectrum CBD products and full spectrum CBD products. Our mission is to identify and formulate products with novel, compelling ingredients and blends to enhance our customer's overall quality of life while bringing education, awareness and accessibility of high quality and effective products to all. We source cannabinoids, including CBD, which are extracted from non-GMO hemp grown on farms in the United States. Our innovative broad spectrum formula utilizes a clinically studied hemp extract blend, containing CBD, CBG and CBN, while eliminating the presence of tetrahydrocannabinol (THC). Non-THC is defined as below the level of detection using validated scientific analytical methods. Our full spectrum and Delta 9 products contain a variety of cannabinoids and terpenes while maintaining small amounts of THC that fall within the limits set in the 2018 Farm Act. The ATRx brand was launched to bring non cannabinoid products to market, starting with non-psychoactive functional dietary mushrooms such as Lion's Mane, Cordyceps and Reshi. In addition to our core brands, we also operate Therapeutics to capture the Company's ongoing investments in science related to its existing and future products, including research and development activities for therapeutic applications and Proline Global that houses some of our newer brands. Our cbdMD brand of products includes an array of high-grade, premium every day and functional CBD products, including tinctures; gummies; topicals; capsules; drink mixers and ready to drink cans; and sleep, focus and calming aids. In addition, we have clinical based claims and indus

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View this 10-K filing on SEC EDGAR