cbdMD, Inc.

Good afternoon and welcome to the CBDMD Inc. conference call to discuss results for their second quarter fiscal 2025 period ending March 31st 2025. This afternoon the company issued a press release that provided an overview of its second quarter results which followed which followed the filing of its quarterly report on Form 10Q. Today's conference call will be recorded and will be available online along with the earnings press release covering financial results and non-GAAP presentation at cbdmd.com in accordance with CBDMD's retention policies. All participants have been joined to the call in listen-only mode and following the presentation, there will be 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 like to turn the conference over to Brad Whitmore, the company's chief accounting officer. Brad, please go ahead.

Thank you, Galen, and thank you all for joining CBDMD's March 31st, 2025 second quarter of fiscal 2025 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. 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 annual report on Form 10 for the fiscal quarter ended March 31st, 2025, 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.sec.gov. Any forward-looking statements made on this conference call speak only as of today's date, Thursday, May 15th, 2025. 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 it may be required by federal security falls. With that, I'd like to turn the call over to Ronan.

Good afternoon, everyone, and thank you for joining us today. Over the past several quarters, we've set two clear goals. One, drive revenue growth and achieve profitability. And two, resolve our capital structure and regain compliance with the NYS American listing standards. This quarterly update, I'm pleased to report progress on both fronts. Our top priority for the second quarter and into Q3 was preparing for our annual meeting and securing shareholder approval on two mission-critical proposals, the conversion of our Series A preferred stock and a reverse split. This was a complex undertaking involving multiple shareholder classes and two failed prior attempts over the last 18 months. I want to thank our shareholders for the strong vote of confidence The successful approval of these measures represents a major milestone in CBDMD's reset and long-term positioning. With the Series A conversion complete, approximately 6.7 million in accrued dividends in our shares of Series A preferred stock were converted into common stock, raising our pro forma non-GAAP adjusted book value from approximately 670,000 to over 7 million as of March 31st, 2025. well above the $4 million threshold required by the NYC Americans. The exchange also eliminated legacy obligations, including $4 million in annual dividends and over $50 million in preferred waterfall payouts, and simplified our capital structure. After discussions with regulators, our board determined conducting the reverse stock split was an important step to protect against the NYC Americans' 10-cent delisting threshold. Between the preferred conversion and the reverse stock split, We now have approximately 8.9 million shares of common stock outstanding, no debt, no warrant overhang, and a clean cap table, putting us in a position to fully regain compliance by the end of our fiscal year. After two years of heavy lifting, CBDMD is now operating with a strong foundation and greater strategic flexibility. We're energized by what this unlocks for the future. On the operational side, we continue to demonstrate meaningful year-over-year progress across the P&L. even if Q2 performance was not as strong as Q1. We're executing against three revenue growth priorities. First, growing our direct-to-consumer business. While our Q2 marketing performance fell short of expectations, we acted swiftly, making leadership changes in March and instilling a renewed urgency across the team. We're laser-focused on enhancing customer acquisition, experience, and retention. Second, expanding our core wholesale business. Wholesale revenue is up 13% on a trailing 12-month basis. We've added new sales reps focusing on high-quality partnerships and working to ensure CBMD remains the preferred brand in our category. Finally, Scallion Herbal Oasis, our hemp-derived THC seltzer brand. I'm excited to officially call it award-winning. All four flavors recently meddled at the 2025 High Spirits Award. We've added distribution partners in Alabama, Florida, and North Carolina. While some rollout momentum slowed in Q2 due to legislative activity, we're ramping it up again and have new markets and retail placements in the pipeline. We expect to announce additional wins this third quarter. The THC Seltzer category is booming. According to Euromonitor, sales more than doubled in 2024 and projected to exceed $4 billion by 2028. As alcohol consumption declines, we're seeing clear signs that consumers are seeking functional social alternatives and OASIS is built for that future. We also know that the long-term success of this category will depend on regulatory clarity. We are currently tracking active legislation in over 23 states, and we strongly support smart regulation that ensures customer safety and trust. With our internal regulatory and legal experience, we're confident in our ability to adapt quickly to an evolving landscape. All this strategic and operational progress is beginning to show up in our financial performance. While we still have work ahead, the year-over-year trends across revenue margins and EBITDA reflect a business that's becoming more efficient, more disciplined, and better positioned to scale. With that, I'd like to turn it over to Brad to walk through the financial details of the quarter.