About cbdMD

cbdMD, Inc. engages in producing and distributing hemp derived solution, including broad spectrum CBD products and full spectrum CBD products. The company owns and operates the nationally recognized CBD (cannabidiol) brands cbdMD, Paw CBD, and cbdMD Botanicals, as well as hempMD. Since year ended September 30, 2023, the company added the hempMD and ATRX line of products to open up and expand its distribution channels and customer base and refreshed its website to improve the customer experience. The company sources cannabinoids, including CBD, which are extracted from non-GMO hemp grown on farms in the United States. The company's innovative broad spectrum formula utilizes one of the purest hemp extracts, containing CBD, CBG and CBN, while eliminating the presence of tetrahydrocannabinol (THC). The company's full spectrum and Delta 9 products contain a variety of cannabinoids and terpenes in addition to CBD while maintaining small amounts of THC that falls within the limits set in the 2018 Farm Act. In addition to its core brands, the company operates cbdMD Therapeutics, LLC to capture its ongoing investments in science related to its existing and future products, including research and development activities for therapeutic applications and Proline Global that houses some of its newer brands. The company's cbdMD brand of products includes an array of high-grade, premium every day and functional CBD products, including tinctures; gummies; topicals; capsules; drink mixes; and sleep, focus and calming aids. The company's Paw CBD brand of products includes a line of veterinarian-formulated products, including tinctures, chews, topicals products in varying strengths and formulas. Paw CBD products have undergone the National Animal Safety Council's rigorous audit and meet their Quality Seal standard. The company's hempMD brand is a curated line of hemp derived solutions that will open up several new customer acquisition channels. cbdMD, Paw CBD, and hempMD products are distributed through the company's e-commerce websites, third party e-commerce sites, select distributors, and marketing partners, as well as a variety of brick-and-mortar retailers. During the year ended September 30, 2023 (fiscal 2023), the company made significant changes to its marketing and overall operations, including re-platforming its website. At the end of its third fiscal quarter of 2023 the company changed its e-commerce platform to focus on its customer experience and conversion rates. As part of this plan, the company planned a site refresh that launched during November of 2023. The company continues to focus on its site optimization to ensure it has the industry-best customer experience on its website. As part of its platform change, the company concentrated on its subscription base and has seen a strong increase in subscribers year over year and this has accelerated since its platform change. During October 2023, the company launched its hempMD product line of hemp-derived functional products and have begun opening up additional sales channels, including Amazon. cbdMD recently expanded its retail reach in December 2023 by launching several products throughout Sprouts Supermarkets. During December 2023, the company launched its new functional mushroom line of products with its Super Gummy under the ATRx brand on ATRxlabs.com. The company is working to open up additional channels and is in discussions with a large retailer to anchor the launch of 4 new stock keeping units (SKUs) under the ATRx brand during the balance of fiscal 2024. Strategy The company continued to pursue many strategies to grow its revenues and expand the scope of its business in fiscal 2024 and beyond comprising product innovation; pursuing relationships with traditional retail accounts; international expansion; cultivating additional brands; and evaluating acquisitions. Marketing The company and its brands are primarily direct to consumer brands and its focus is to grow its base of customers by profitability acquiring new customers while minimizing churn. The company employs a multi-channel media approach that allows it to market its brand and products through various distribution efforts, which include sports and athletes sponsorships, professional partnerships, social media engagement, podcasts, digital and television advertising, affiliate marketing, and influencer endorsements. As of September 30, 2023, the company also operated with media partnerships with the Joe Rogan Experience, and a360 Media, LLC. In addition, it works with its retail partners on various marketing efforts to focus on shelf velocity. Sales The company distributes its products both through its online sales channel, as well as through a number of wholesalers and retailers that resell its products both in brick and mortar locations, as well as via their online websites. Sales of the company's products primarily come from online sales at its websites www.cbdmd.com, www.pawcbd.com, cbdmdbotanicals.com, and www.directcbdonline.com; and through its inside sales department. The company's inside sales team concentrates on B2B niche specialty retailers, as well as wholesale distributors, who can help amplify its reach of cbdMD products at physical retail locations. Product Manufacturing The company only uses cannabinoids extracted from hemp grown in the United States in its products. During 2022, the company completed the sale of its manufacturing assets to Steady State, LLC. The company's warehouse operation encompassing 80,000 square feet, is fully Good Manufacturing Practice (GMP) compliant and NSF dietary supplements certified. During the second quarter of fiscal 2023, the company renewed its NSF GMP 455 certification. Intellectual Property The company has filed multiple foreign trademark applications for CBDMD and PAWCBD and have secured marks in the following countries: Chile, Costa Rica, Argentina, Peru, Ecuador, European Union, the United Kingdom, the Czech Republic, New Zealand, Columbia, Australia, and Switzerland. The company continues to prosecute the CBDMD and PAWCBD trademarks in the following countries: Brazil, Canada, China, Spain, Mexico, Norway, and South Africa. Additionally, a growing number of the company's products hold sanitary registrations in certain Central and South American countries. The company's U.S. Patent Application No.: 17/359,193 is under examination and it expects it to be granted sometime in FY 2024. This patent is expected to provide protection in several key areas, including novel formulations and delivery systems, as well as methods of manufacturing and use. In addition to www.cbdmd.com, www.pawcbdmd.com, www.hempMD.co, and www.directcbdonline.com, the company owns multiple domain names. Government Regulations In 2021, the company submitted a Novel Foods dossier with both the EU Food Safety Agency (FSA) and the United Kingdom's Food Safety Agency (UK FSA). History The company was formerly known as Level Brands, Inc. and changed its name to cbdMD, Inc. in 2019.