Business
CV Sciences Inc. (OTCMKTS: CVSI) Reports 8% Drop In Sales In Q3 2021 Attributable To Regulatory Uncertainty in CBD
CV Sciences Inc. (OTCMKTS: CVSI) has announced its third-quarter 2021 financial results for the period ending September 30, 2021.
Revenue dropped to $5.1 million.
In Q3 2021, the company reported revenue of $5.1 million relative to $5.6 million a year ago. In addition, the gross margin was 46.2% improving from 44.2% a year ago. At the end of the quarter, the company had $1.7 million in cash compared to $4.5 million at the end of last year.
CV Sciences increased retail distribution from 6,200 stores last year to 7,700 stores in Q3 2021. During the quarter, the company launched Holiday Survival Kit, PlusCBD Reserve, and a redesign of the PlusCBD website.
CEO Joseph Dowling said, “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. 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.
Auxly launched PlusCBD Reserve collection
“We recently launched our PlusCBD™ Reserve collection, a full spectrum offering that is intended to provide the benefit of hemp cannabinoids, including CBD to THC, working synergistically, for a balanced cannabinoid supplement. The new Reserve products, along with our Sleep and Calm products launched earlier this year, are evidence of our strong innovation pipeline and ability to capitalize on opportunities for future incremental revenue. With our portfolio of high-quality, proven products, and favorable regulatory momentum, we believe the Company is positioned for growth in 2022,” concluded Dowling.
In Q3, Auxly had sales dropped 8% in Q3 2021 due to increased market competition resulting from uncertain regulatory conditions for CBD. As a result, the company cut operating loss to $3 million in Q3 2021 relative to an operating loss of $3.2 million a year ago. Also, the company had a negative adjusted EBITDA in Q3 2021 of $2.7 million versus an adjusted EBITDA loss of $2.6 million a year ago.
