CHARLOTTE, N.C.--(BUSINESS WIRE)--cbdMD, Inc. (NYSE American: YCBD, YCBD PR A), one of the leading, highly trusted, and most recognized cannabidiol (CBD) brands, reported today record net sales of $10.6 million in its third fiscal 2020 quarter ended June 30, 2020.

“cbdMD reported its single biggest quarterly net sales in its history. Our decisions to concentrate on building brand equity for award winning cbdMD and Paw CBD brands, as well as and focus on our e-commerce strength, has paid off. We have separated ourselves from our competitors and demonstrated that we can grow market share and be fiscally responsible at the same time, with our GAAP and non-GAAP operating results improving by 80% and 96%, respectively, from the comparable periods in fiscal 2019. With $15 million in cash on hand at June 30, 2020, we believe we have more than enough financial strength to grow our operations for the foreseeable future, absent any additional unforeseen impact from COVID-19,” said Martin Sumichrast, the Company’s Chairman and co-Chief Executive Officer.

The highlights from the June 2020 quarter were:

• The Company reported net sales of $10.6 million for the three months ended June 30, 2020, a year-over-year quarterly increase of approximately 33% and a sequential quarterly increase from the three months ended March 31, 2020 of approximately 13%.

• The Company reported record quarterly e-commerce, direct to consumer (DTC) net sales of $8.2 million, an increase of 77% year-over-year and a sequential quarterly increase of approximately 21%. The Company’s e-commerce, direct to consumer (DTC) sales accounted for in excess of 77% of total net sales in the June 2020 quarter, an increase from 58% from prior year’s quarter.

• The Company’s CBD pet brand, Paw CBD, reported an approximate 64% increase in net sales from its March 2020 quarter of approximately $750,000 to approximately $1,229,000 for its June 2020 quarter.

• The Company reported a gross profit margin of 64.7% as a percent of net sales as compared to 63.4% for the comparable period in fiscal 2019 and adjusted non-GAAP gross profit margin as a percent of net sales was 67.7% as compared to a 65% in the comparable period in fiscal 2019.

• The Company reported an 80% year-over-year improvement in its GAAP loss from operations of ($1,337,508) as compared to ($6,466,639) in the comparable 2019 period.

• The Company reported a 96% year-over-year improvement in its non GAAP adjusted loss from operations of ($187,092) as compared to ($5,019,541) in the comparable fiscal 2019 period after adjusting for the following: a non-cash inventory adjustment of $311,000, a non-cash stock option expense of $388,000, a depreciation expense of $233,000 and a non-cash charge of $233k for old inventory.

• The Company reported a net loss of ($9,052,752), or $(0.18) per share, which was mainly due to a non-cash expense of approximately $7.58 million in the Company’s contingent liability which is associated with earnout shares which may be issued under the terms of the December 2018 acquisition of Cure Based Development.

• Working capital was $19.7 million and cash on hand was approximately $15 million at June 30, 2020, respectively.

• CBD Industries, LLC, the Company’s wholly owned manufacturing and distribution subsidiary, was recently added to NSF International’s dietary supplements Good Manufacturing Practice (GMP) registration.

About cbdMD, Inc

cbdMD, Inc. is a nationally recognized consumer cannabidiol (CBD) brand whose current products include CBD tinctures, CBD capsules, CBD gummies, CBD topicals, CBD bath bombs, and CBD pet products. cbdMD is also a proud partner of Bellator MMA and Life Time, Inc., and has one of the largest rosters of professional sports athletes who are part of “Team cbdMD.” To learn more about cbdMD and our comprehensive line of over 100 SKUs of U.S. produced, THC-free1 CBD products, please visit www.cbdMD.com, follow cbdMD on Instagram and Facebook, or visit one of the 6,000 retail outlets that carry cbdMD products.