Another newcomer to our pages, CV Sciences Inc (OTCMKTS: CVSI) operates two distinct business segments: a drug development division focused on developing novel therapeutics utilizing synthetic CBD; and, a consumer product division focused on manufacturing, marketing and selling plant-based CBD products to a range of market sectors.
The company has offices and facilities in Las Vegas, and San Diego- two hotbeds of cannabis/cbd activity. The Nevada cannabis scene has been thriving for quite some time, while the California recreational market just kicked off in January, and where the medical scene is the oldest in the nation. The company also recently released its quarterly report.
CV Sciences Inc (OTCMKTS: CVSI) sales for Q1 2018 were $8.1 million demonstrating the Company’s continued organic expansion into all sales channels including the natural product retail, wholesale and direct-to-consumer channels. This is an 11% sequential quarterly increase from $7.2 million reported for Q4 2017. The Company’s natural product retail channel now includes 1,771 locations nationwide. CV Sciences plans to continue developing new sales channels and is encouraged by the strength of its branded products as evidenced by SPINS® Scan data, which positions the Company as the #l selling hemp product line in the natural products industry.
Gross profit for Q1 2018 was $5.6 million and indicates the Company’s ability to expand sales while maintaining strong gross margins. Adjusted EBITDA for Q1 2018 was $1.8 million and shows strong operating leverage from the Company’s significant investment in inventory, product development, systems, marketing and distribution.
“We are off to a strong start for 2018, delivering record financial performance on all of our key metrics including triple digit year-over-year revenue growth and double-digit sales growth on a sequential quarterly comparison. Our operating performance is driven by a combination of core revenue growth, strong demand for our products, and a market that is still in its infancy stages,” said Joseph Dowling, CFO of CV Sciences. “In every aspect, we set new performance records and laid the groundwork for continued profitable growth. On the drug development side, we made steady progress in advancing CVSI-007 – our proprietary lead drug candidate – which addresses the multibillion dollar smokeless tobacco use and addiction market. This quarter validates our ability to grow profitably and generate cash flow and positions us well to deliver a successful 2018 for our shareholders. ”
As of March 31, 2018, the Company had unrestricted cash of $3,106,000 and total cash of $3,888,000. During the quarter ended March 31, 2018, the Company increased its total cash position by $1,096,000. Stockholders’ equity increased to approximately $18.0 million as of March 31, 2018. (Source: Globe Newswire)
The company hosted a conference call to discuss its Q1 2018 results earlier this week. CV Sciences’ CFO Joseph Dowling led the call to provide an operational and financial summary of the first quarter and three months ended May 15, 2018. A replay of the call will be available for the remainder of this month, which can be accessed by calling 1-877-660-6853 and entering conference ID# 13679917.
CVSI has made quite an impressive set of moves on the chart in the months of April and May this year, and has just recently seemed to have begun to consolidate. We’ll be looking for support to be established, before considering the stock further. Keep it locked on Street Register for updates, and we’ll deliver important developments on CVSI as they unfold. In the meantime, if you’ve yet to sign up for our 100% free newsletter, do so now! Just enter your active email address into the box below and submit!
Disclosure: No one at Street Register has been compensated in any way for the publishing of this article, nor do we hold any position in CVSI stock, short or long.