cbdMD, Inc.

Good afternoon. Welcome to the CBDMT Inc's December 31st, 2023, first fiscal 2024 quarter earnings call and update. This afternoon, the company issued a press release that provided an overview of its first quarter results, which followed the filing of its quarterly report on form 10Q. Today's conference call is being recorded and will be available online along with our earnings press release covering our financial results and non-GAAP presentation at cbdmd.com in accordance with CBDMD's retention policies. All participants on this call will be in listen-only mode. The call will be followed by a question and answer session. To join the question queue, you may press star then one on your telephone keypad. At this time, I would now like to turn the conference over to Brad Whitford, the company's VP of Finance. Brad, please go ahead.

Thank you, Ashia, and thank you all for joining CBDMD's December 31st, 2023, first quarter of fiscal 2024 earnings call and update. On the call today, we also have Ronan Kennedy, our interim CEO and chief financial officer. We'd like to remind everyone that various remarks about future expectations, plans, and prospects constitute forward-looking statements for purposes of safe harbor provision 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 our actual results to differ materially from those indicated, including risks described in the company's quarterly report on Form 10-Q for the quarter ended December 31st, 2023, and our other filings with the SEC, all of which can be reviewed on the company's website at www.cbdmd.com or on the SEC's website at www.scc.gov. Any forward-looking statements made on this conference call speak only as of today's date, Tuesday, February 13th, 2024, 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 security laws. With that, I'd like to turn the call over to Ronan.

Thank you, Brad. Good afternoon, everyone. It has only been a short, busy few weeks since our year-end call. We continue to make progress on our expenses and year-over-year gains on net income and non-GAAP adjusted EBITDA. We remain disciplined about our cost controls, but ultimately missed on our goals of sequentially growing revenues for the quarter. We did not hit this goal for December. Significant resources were allocated to a number of larger strategic initiatives that are helping pave the way for growth in 2024 and beyond. This included launching our two new brands, HempMD and our functional mushroom line, ATR Express. Revenue remains a top priority. We know that we must grow revenues to deliver positive cash flow and are committed to growth. We are constantly assessing our team and vendor base to ensure we believe we have the organization needed for growing revenues and delivering profits. In January, we added Joe Bagajian to our team to head up our wholesale efforts. We're excited for his energy and passion he brings our company into the CBD industry. His knowledge and contact base helps expand our reach, and we plan to get more aggressive with opportunities internationally as well as here in the USA. Furthermore, we are taking steps to ensure we win on e-commerce and get back to growth. On our last call, we just announced our Sprouts launch, and we are pleased with the velocity out of the gate and initial reorders. Similarly, the day of the call, we launched our initial ATRX product, the ultimate mushroom daily gummy on Amazon. In a few short weeks, we have started ramping up sales and are getting great feedback and reviews from customers. Outside of Amazon, ATRX is showing encouraging signs just a few weeks into our launch. We received orders from a national retailer to roll out four new ATRX functional products. These products were recently nominated in the 2024 Natural Choice Awards by Whole Foods Magazine, a testament to their innovation and market potential. We are actively building interest with other retailers and look forward to announcing further prices. Last week, we announced the closing of the gross proceeds of $1.25 million from a handful of institutional investors. We believe the funding was necessary to assist with the working capital needed to expand ATRX and provide working capital to support our ongoing operations. Capital availability is challenging at the moment, and given our preferred structure and pending proxy, it created additional challenges to the financing. I continue to review multiple strategic opportunities that are presented. The complexity and procedural challenges stemming from a multi-class equity structure continue to be problematic to advance strategic transactions. We recently filed our preliminary proxy statement in connection with our annual meeting and have included an additional proposal to convert our outstanding preferred stock. We continue to believe in all common capital structure should unlock additional enterprise value for the company and open up additional strategic opportunities. The accrued preferred dividend continues to pose a risk to all shareholders as it reduces our equity value by a million dollars a quarter, putting the company on a path in the near term to fall below the minimum 6 million net book value requirement under the NYSE American rules. It is very important for shareholders to consider this as they review the forthcoming definitive proxy statement. With that, I'll turn the call over to Brett.