cbdMD (YCBD) Registration Filing summary

Company overview and business model

• Operates nationally recognized CBD brands, including cbdMD, Paw CBD, Herbal Oasis (THC-infused beverages), and ATRx Labs (functional mushrooms).

• Focuses on dietary supplements and topical products, with an emphasis on hemp-derived and non-THC cannabinoid products.

• Products are distributed via e-commerce, third-party sites, distributors, and brick-and-mortar retailers.

• Recent efforts include optimizing the product portfolio, cost rationalization, and expansion into the hemp-derived THC beverage market.

Financial performance and metrics

• Fiscal 2025 GAAP operating loss reduced to $2.1 million from $3.3 million in fiscal 2024, with revenue base maintained.

• Oasis brand expansion has been a short-term earnings drag but is showing revenue growth as distribution increases.

• Identified $200,000 in corporate overhead savings to be implemented in early 2026.

• Auditors issued a "going concern" opinion, indicating substantial doubt about the ability to continue as a going concern.

Use of proceeds and capital allocation

• May receive up to $20 million in gross proceeds from the equity line with C/M Capital, to be used for working capital and general corporate purposes.

• Management retains broad discretion over allocation of proceeds; specific uses are not detailed.