Joseph Dowling, CEO, commented in the press release: “We continued to make progress on our strategic priorities during the first quarter and are encouraged by recent trends, including vaccination programs and reopening of the economy. Our digital platform investment is driving customer engagement and improving metrics as well as resulting in sequential B2C revenue growth. We continue to broaden store distribution in the FDM channel, knowing that the shelf space and relationships represent an important future revenue source. We are starting to see slight improvement in the overall retail environment and continue to see significant potential in the Convenience channel.”
CV Sciences launched several products during this period, including ProCBD, a full product line of clinical strength products available exclusively through health practitioners, and PlusCBD Calm and Sleep, two gummies that support healthy stress responses and sleep cycles.
“We are pleased with results from new product introductions including our immunity and pet line products, both of which launched in 2020, targeting some of the fastest growing CBD markets,” Dowling stated. “Our January launch of ProCBD, a line of clinical strength products targeting health practitioners and natural, plant-based alternatives has also been well received. Just this week, we launched PlusCBD Calm and Sleep, two flavorful gummies that support healthy stress response and sleep cycles for people getting back to their normal routines. Quality and innovation remain key points of differentiation for CV Sciences, and we anticipate further strategic product introductions during 2021.”Other highlights include:
- Revenue of $4.8 million for first quarter of 2021, compared to $8.3 million for the first quarter of 2020;
- Gross margin of 48.7% for first quarter of 2021, improved from 48.5% for the first quarter of 2020;
- Improved total cash balance of $5.7 million at quarter end, compared to $4.5 million at year end;
- Operating loss of $3.1 million, compared to an operating loss of $5.3 million in Q1 2020;
- Entered into a partnership with Alkemist Labs to support the National Institute of Standards and Technology's Cannabis Quality Assurance program.
Dowling added: “The recently announced partnership with Alkemist Labs is further evidence of our leadership position in product safety, quality, and customer trustworthiness. We remain optimistic about the potential for positive regulatory development in our industry for 2021, and believe the Company is well positioned financially and strategically to deliver long-term value for our shareholders.”