Cv Sciences Inc

All participants are in a listen-only mode. A brief question and answer session from the analyst community will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Brendan Hawkins, Investor Relations. Thank you, sir. You may begin.

Thank you, and good afternoon, everyone. With us today with prepared remarks are CVSciences Chief Executive Officer Joseph Dowling and your GRASR Chief Financial Officer. After the prepared remarks, we will take questions from the analyst community. I'd like to remind you that during this call, management's prepared remarks may contain forward-looking statements. These forward-looking statements are subject to risk and uncertainties that may cause actual results to differ materially from those anticipated by CB Sciences at this time. When used in this call, the words anticipate, could, estimate, intend, expect, believe, potential, will, should, project, and similar expressions as they relate to CB Sciences are, as such, a forward-looking statement. Finally, please note that in today's call, management will refer to non-GAAP financial measures in which CV Sciences excludes certain expenses from its GAAP financial results. Please refer to CV Sciences' press release from earlier this afternoon for a full reconciliation of its non-GAAP performance measures to the most comparable GAAP financial measures. As I just mentioned, this afternoon, the company issued a press release announcing its financial results. Participants on this call who may not have already done so may wish to look at the press release as the company provides a summary of the results in this call. The press release may be found at cbsciences.com. I'd like to now turn the call over to CV Sciences Chief Executive Officer, Mr. Joseph Dowling. Joe?

Thank you, Brendan. Good afternoon, everyone. Thank you for joining our call. This afternoon, we issued a press release reporting results for our third quarter ended September 30, 2025. We are pleased with our progress as we move closer to profitability and positive cash flow. Significant financial highlights during Q3 included we generated revenue of $3.3 million, slightly down sequentially from $3.6 million for the second quarter 2025. Our Q3 gross margin of 48.5% represents our continued ability to achieve strong margins. We continue to maintain our number one position in the natural product retail channel and have also increased our market share in this critical sales channel as well. During Q3, we continued to adapt our product innovation efforts to include more non-cannabinoid products to more fully diversify our product offering. We also continue to execute on our M&A strategy and are realizing the initial benefits from our acquisition of elevated soft gels, especially with the in-source manufacturing of many of our own soft gel and tincture products previously produced by contract manufacturers. Our position as a leading consumer product company in the health and wellness category, along with our ability to leverage our public company status continues to make us a compelling investment opportunity. Our M&A strategy goals are to increase our scale with greater revenue, but also to increase our cost efficiency. We continue to look for opportunities to increase revenue profitably with transactions that can leverage our brands, people, process, and our distribution. We are also looking at transactions that can increase our cost efficiency, including assets that allow us to further in-source manufacturing. In-source manufacturing will allow us to have much greater control over our supply chain and eventually lower our product costs. Our most recent transaction of elevated soft gels provides us with an opportunity to in-source manufacturing of significant number of our products. Over time, we expect to see improved cost efficiency and gross margin directly from the integration of elevated soft gels. We are constantly evaluating our capability at the elevated facility and are selectively investing in equipment and people to improve productivity. New product development is a critical initiative for our company. We are adapting our innovation and new product development in several ways. Alongside our legacy and new cannabinoid products, we will be emphasizing and developing new non-cannabinoid products that will be positioned under our Plus Health brand. We believe there are numerous innovative formats and formulations to develop for both human and pet consumption, and we are planning to launch several new products in early 2026. We are adapting to a more diversified product offering, which will include both cannabinoid and non-cannabinoid products. We will continue to innovate and launch new products that are responsive to our customers and their specific needs states. We will work to develop products with strong science that support our product claims, always keeping in mind the trust and loyalty of our customers. We believe that adapting our product innovation and development will not only meet customer demand, but will also mitigate some of the regulatory challenges to the hemp industry. The regulatory challenges to the hemp industry are serious, but not insurmountable. The funding legislation passed in the US Senate to reopen the federal government included language that disallows the sale of hemp products with greater than 0.4 milligrams of THC per container, which represents a significant portion of hemp-derived products currently sold today. Just last night, the U.S. House of Representatives passed the funding legislation to reopen the federal government, which was then signed by the President. However, the restrictive language will not go into effect for a one-year period from today. Again, we are disappointed. However, TV Sciences will have an opportunity, along with bipartisan members of Congress, pro-hemp advocacy and consumer groups, and other industry participants to lobby and support Congress for a balanced and responsible regulatory framework that preserves access to hemp-derived health and wellness products that are relied upon by millions of consumers across the United States. The restrictive hemp language in the legislation to reopen the federal government conflicts with bipartisan support in Congress for the hemp industry and hemp-derived cannabinoids. Recent social media posts from the White House highlighting CBD as a wellness supplement are more than encouraging. Bipartisan members of Congress, including Senators Paul and Wyden and Congressman Comer, have been staunch advocates for the hemp industry We believe there is significant political awareness and support from both parties to engage in an effort to achieve sensible regulation and not prohibition. A recent statement from Senator Paul summarizes the pressing need to regulate but also support the hemp industry. In summary, Senator Paul stated, quote, Hemp is an agricultural crop used for textiles, rope, insulation, composite wood, paper, grain, and CBD products that veterans, seniors, and people with chronic pain rely on every day. Senator Paul further stated, the issue at hand is a last-minute federal ban slipped into the funding bill that would recriminalize legal hemp products and shut down farms across the country. If there are bad actors selling high-potency products in gas stations, then the solution is regulation, not destroying a $28 billion industry and the rural communities who depend on it." Senator Paul is right. We need sensible regulation, and we, CB Sciences, are ready to engage in a bipartisan effort as needed to enact regulation that will ensure product quality and safety, that will eliminate bad actors, and most importantly, that will protect consumers. Again, we are disappointed, but we are not defeated. The hemp industry was able to secure a major concession 365 days before the language will go into effect. We, along with the hemp industry, have until November 13, 2026 to help the federal government understand how to regulate hemp and protect Americans, not to ban hemp, which is essential for the health and wellness benefits relied upon by millions of Americans. Federal regulatory reform will greatly benefit the hemp industry. At the state level, we continue to fight for a sensible and consistent framework in as many states as possible. A sensible framework at the federal and state level will help advance our industry and would create an environment where quality companies and products are trusted politically and by consumers to produce safe and high-quality products in a responsible way. We recognize this new regulatory challenge and we are adapting to this reality. We are positioning ourselves to compete in the current environment in spite of regulatory uncertainty. We are doing this in numerous ways, including by streamlining operations and increasing our cost efficiency to align the company for growth and profitability and by adapting our new product development efforts in both cannabinoid and non-cannabinoid products. We continue to make good progress. Let me pause now and I will turn the call over to Jorg to go over the numbers.