cbdMD, Inc.

Good afternoon. Welcome to CBDMD Inc.' 's June 30, 2024, third fiscal 2024 quarter earnings call and update. This afternoon, the company issued a press release that provided an overview of its third quarter results, which followed the fill-in of its quarterly report on Form 10-Q. Today's conference call is being recorded and will be available online along with our earnings press release covering our financial results non-GAAP presentation at cbdmd.com. In accordance with CBDMD retention policy, all participants on this call will be in a listen-only mode. The call will be followed by a question and answer session. At this time, I would now like to turn the conference over to Brad Whitford, the company's chief accounting officer. Brad, please go ahead.

Thank you, Brenda, and thank you all for joining CBDMD's June 30, 2024, third quarter of fiscal 2024 earnings call and update. On the call today, we also have Ronan Kennedy, our 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 provisions under the Private Securities Litigation Reform Act of 1995. CDDMD 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 end of June 30, 2024, and our other filings for 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.sec.gov. Any forward-looking statements made on this conference call speak only as of today's date, Wednesday, August 14, 2024, and CDDMD 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 Ronan.

Thank you, Brad. Good afternoon, everyone. On our last call, I discussed key initiatives designed to propel the company forward on our path to profitability. Over the past few months, we've been fully focused on executing this plan and delivering measurable results. While year-over-year revenues were down, nearly every other key financial metric improved significantly. Gross margins increased, SG&A expenses decreased, and we saw improvements in operating income, net income, and EBITDA. Even sequentially, our key metrics trended positively, including revenue growth. These numbers reflect only a portion of the efficiencies we implemented since our last call, and I'm extremely proud of our team's resilience and hard work as we continue to undergo positive change. Our direct-to-consumer segment saw incremental gains during the quarter as we focused on enhancing customer experience, refining our messaging, and ensuring we have the right resources in place to drive revenue growth. We recognize there is still work to be done in optimizing our customer acquisition funnel, and we plan to increase marketing spend in the current quarter to support this. Our wholesale business was buoyed by a number of new customer wins in addition to consistent reorders from core customers. We are actively collaborating with our retail partners to better position our products in the market, both in terms of consumer appeal and economic viability for retailers. Our ATRX brand made some progress during the quarter. We are ramping up marketing efforts and working to drive further growth during the quarter. The CBD category remains challenging and dynamic. We have observed some consolidation in the industry and seen a number of participants fail. We remain vigilant, particularly regarding the regulatory environment which continues to evolve rapidly at the state level. Our focus is on remaining agile and strategically investing on marketing dollars to ensure sustainable, profitable growth. One of CB&D's value propositions is its brand built on a foundation of trust. It stands for safe, effective products based on science and backed by clinical research to help you in your everyday life. During June, our Human Clinical was published in a leading peer-reviewed sports and nutrition journal supporting statements around pain reduction, improved mood, and reduced stress. We also received feedback on our UK FSA submission during the quarter. We've answered all the questions and received positive feedback that our dossier is in final review to establish the approval serving size. The UK FSA is in the final stages of reviewing safety levels outlined in our submission, and we are confident our data supports daily levels much higher than the arbitrary provisional accepted daily intake levels proposed at 10 milligrams per day. In June, we received notice from the NYSE American that we sell below the minimum book value listing requirement of 3.5 million. This did not come as a surprise and something we disclosed in a recent proxy statement should our proposal to amend the Series A preferred stock designation not receive shareholder approval. Our preferred dividend continues to accrue $1 million per quarter which impacts equity and shifts it to a liability. One of the most straightforward paths to regaining compliance is addressing our crude preferred dividend. In early July, we submitted a plan to the NYSE outlining several parallel strategies we are pursuing to regain compliance with the NYSE American continued listing standards by the December 2025 deadline. We expect to hear back from the NYSE American this month. Maintaining our listing on a major market is critical for preserving and enhancing shareholder value. With that, I'll turn things over to Brad to define more color on our financials.