CV Sciences 3Q Financials Continue To Improve Cost Structure, Praises California CBD Legislation

CV Sciences, Inc. CVSI, a supplier and manufacturer of hemp cannabidiol (CBD) products, announced its financial results for the quarter on Monday, Nov 15.

Third Quarter 2021 and Recent Financial and Operating Highlights:

• Revenue of $5.1 million for the third quarter of 2021, compared to $5.6 million for the third quarter of 2020;
• Gross margin of 46.2% for the third quarter of 2021, improved from 44.2% for the third quarter of 2020;
• Total cash balance of $1.7 million at quarter-end, compared to $4.5 million at year-end;
• Total retail distribution of more than 7,700 stores as of September 30, 2021, an increase from 6,200 stores as of September 30, 2020;
• Received top 3 awards from LA Weekly: best gummy for sleep, best gummy for anxiety and best overall CBD gummy;
• Launched PlusCBD™ Reserve, a new line of full-spectrum hemp extracts and its "Holiday Survival Kit" combining the firm’s top-rated sleep and calm gummies;
• Concluded re-design of its website PlusCBD™ ;
• Continued to implement strategic cost savings initiatives, including the lease termination of its Barnes Canyon facility; and Obtained forgiveness of a PPP loan of $2.9 million.

Operating Results - Third Quarter 2021 Compared to Third Quarter 2020

• Sales for the third quarter of 2021 were $5.1 million, a decrease of 8% from $5.6 million in the third quarter of 2020. Current quarter sales were impacted by increased market competition, which is largely due to the uncertain regulatory environment for CBD.
• CV's products were sold in more than 7,700 retail stores nationwide as of September 30, 2021, up from over 6,200 stores as of same time last year.
• Reduced its operating loss to $3 million in the third quarter of 2021, compared to an operating loss of $3.2 million in the third quarter of 2020.
• Had negative adjusted EBITDA for the third quarter of 2021 ($2.7 million), compared to negative adjusted EBITDA (of $2.6 million) in the third quarter of 2020.

“Third quarter results met our expectations and we are very encouraged by recent legislative actions including the passage of AB 45 in California, which creates a framework for responsible CBD legalization on a much broader scale,” said Joseph Dowling, CEO of CV Sciences.

“We delivered third-quarter revenue of $5.1 million, consistent with Q2, and continue to improve our cost structure versus a year ago as we continued to benefit from productivity initiatives... With our portfolio of high-quality, proven products, and favorable regulatory momentum, we believe the Company is positioned for growth in 2022,” concluded Dowling.