cbdMD, Inc.

At this time, I would now like to turn the conference over to Ronan Kennedy, the company's chief financial officer and chief operating officer. Ronan, please go ahead.

Thank you, Catherine, and thank you all for joining the CBDMD's June 30th, 2021, third quarter fiscal 2021 earnings call and update. On the call today, we also have our chairman and co-CEO, Marty Sumacrest. Following the Safe Harbor statement, Marty will provide an overview of our business, then I'll provide a summary of the quarterly financial results. Following that, we'll open up the call for questions. We'd like to remind everyone that various remarks about future expectations, plans, and prospects constitute forward-looking statements for the purposes of safe harbor provisions under the Private Securities Litigation Reform Act of 1995. CBDMD cautions that these forward-looking statements are subject to risks and uncertainties that may cause their actual results to differ materially from these indicated, including risks described in our company's quarterly report on Form 10-Q for the quarter ending June 30, 2021, annual report on Form 10-K for the year ended September 30, 2020, and our other filings with the SEC, all of which can be viewed on the company's website at www.cbdmd.com or on the SEC's website at www.sec.gov. Any forward-looking statements made on this conference call today speak only as of today's date, Thursday, August 12, 2021, and CBDMD does not intend to update any of these forward-looking statements to reflect events or circumstances that would occur after today's date, except as may be required by federal securities law. With that, I'd like to turn the call over to CBDMD's Chairman and Co-CEO, Marty Sumacris.

Thank you very much, Ronan, and good afternoon, everyone. We appreciate you all joining us today. Once again, CBDMD delivered top line sales that outpaced the overall industry trend. Despite the impact from the COVID-19 pandemic, we believe that our responsiveness and our ability to adjust our business has allowed us to maintain year-over-year sales levels. I want to thank our team for their hard work and dedication. keeping the health and safety of our employees a top priority while also delivering on these results. With that said, while we appreciate the hard work and dedication of our entire team, we know that we can do better, and we will do better. Our goal is to get back to year-over-year growth rates in the 20% to 25% range or higher, while at the same time be mindful of our cash spend. Getting back to achieving net sales growth in the near term is our top priority, and we believe we can do this based on the anticipated launch of a variety of new products, new partnerships and sponsorships, new channels of distribution, and new international markets, all which have been put into place and we are executing on this quarter. We see significant long-term potential, not only in our core U.S. market, but also in the global market. We expect an increase of our wholesale footprint as we anticipate additional mainstream retail channels to open up to the CBD category, especially to leading brands such as ours. As the company reopened earlier this year and we saw customer habits shift slightly from online to brick-and-mortar stores, we were able to pivot accordingly. With this reopening of the B2B wholesale channels, we are seeing more and more opportunity in specialty retail channels. We are also very well positioned, as compared to most of our competitors, to make significant headway in traditional brick-and-mortar retail chains. The brand recognition we have built through our sponsorships, we believe, is best in class. And we plan to leverage those partnerships, which we believe will result in a more rapid expansion of our retail footprint. With the reopening of the country, we've already started new activations with our iconic leading partnerships with brands CrossFit and Bellator. And you'll hear about more of those plans coming to life very soon. As we continue to sort through a variety of market conditions, One issue we've experienced is production delays with several of our vendors, specifically impacting several new product launches. For that reason, and while we remain bullish on the outlook for our brand sales growth, we are now revising down our net sales guidance for the first quarter of our fiscal 2022, ending December 31, 2021, from a range of $15.5 million $16.25 million to a range of $14.9 million to $15.5 million, or a 20% to 25% year-over-year sales growth for the December 31, 2021 quarter. Reaching these performance metrics helps us achieve our goal of positive adjusted EBITDA results in the near term. we had a very healthy cash position of 18.9 million as of June 30th. The next day, July 1st, we closed a secondary offering of our Series A preferred shares, which increased our cash on hand further by approximately 15.3 million to over $34 million. We continue to open new international markets and our products are represented now in over 31 countries. We are in a unique position to secure marketing and sales opportunities with global sports organizations, which we believe will only be available to very few well-capitalized and well-recognized CBD brands such as ours. We are also looking at potential M&A opportunities within the CBD industry, such as our reach and purchase of DirectCBD Online, our new online marketplace. As always, CBDMD has been an innovative marketing leader in the CBD industry. Our team CBDMD has a roster of athletic champions that is unmatched in our industry and includes, but is not limited to, Masters Champion Bubba Watson and Patrick Reed, seven-time Mr. Olympia Flex Lewis, and two-time UFC champion Daniel Cormier. With such an incredible roster of champions, we recently filed for the trademark CBDMD brand of champions, which we believe personifies our brand. Our CBDMD and PAW CBD brands continue to lead the market in brand awareness and social media reach. Our new CBDMD Botanicals brand is already in its second phase of new product development in just its first year. We also continue to strengthen our portfolio of strategic athletes and sponsorship programs. We continue to be recognized for our outstanding products as we've been a multi-year recipient of Product of the Year awards. In addition, we are pleased to announce that PawCBD, has received its official certification from the NASC, or National Animal Supplement Council, a non-for-profit group committed to protecting and enhancing the health of companion animals through the country. NASC has dedicated itself to safety and quality in the animal supplement space in the United States, identifying and certifying only the best quality products for cats, dogs, and horses. Having the NASC certification is a pivotal step to access mass retail distribution, as we believe such certification has been a gating requirement for a number of retailers in this segment of the CBD category. We understand the importance of brand equity and how critical it is that our customers know we are always selling superior, quality, safe products. In order to assure our customers that CBDMD products are at the forefront of quality and safety, we continue to invest in robust protocols and always with an eye towards the future. As I've said many times, the therapeutic potential of CBD as well as other lesser-known cannabinoids is incredible. We are working to tap into this therapeutic potential. as we continue to support scientific advancements through clinical trials and perform toxicity studies to demonstrate the safety of cannabinoids as novel therapies. We are aggressively developing significant and valuable IP. In order to better organize all our scientific endeavors, we launched CBDMD Therapeutics earlier this year, and we'll be providing the necessary resources to ensure its success, which recently included the hiring of former FDA official Dr. Sybil Swift and the commencement of several industry-leading studies on CBD safety. Fostering a robust culture of innovation and brand development has been an instrumental piece of our success. We are continuously evaluating options to connect with our consumers through our compelling brand propositions and innovation so we can meet the needs of our consumers' preferences in the marketplace. We continue to evolve our business to stay at the forefront of our industry. We take great pride in leading with strong values. We are committed to advancing the health and wellness of people's lives for the better by investing in our products, our brands, and our people. We remain confident that we will continue to gain market share in the global CBD market. With that, I will now turn it back over to Ronan, who will take you through our financial results for the period ended June 30th. Ronan, go ahead.