cbdMD, Inc. (YCBD): Business Model Canvas [Dec-2025 Updated]

You're looking at cbdMD, Inc.'s playbook as they navigate this tricky CBD landscape, and honestly, the story right now isn't just about selling tinctures; it's about disciplined survival and smart pivots toward brand diversification, especially with the Herbal Oasis seltzers. After years of heavy spending, the focus has clearly shifted to cost control while simultaneously pushing new categories to balance the core business, which still relies heavily on its established name. Here's the quick math: they are banking on fiscal 2025 net sales landing between $19.1 million and $19.3 million, with their Direct-to-Consumer channel pulling in 77% of Q2 sales, all while trying to maintain a healthy gross margin in the 61% to 66% range. To see exactly how they are balancing that tightrope walk between their four key brands and their cash position of over $2.2 million, dive into the full Business Model Canvas breakdown below.

cbdMD, Inc. (YCBD) - Canvas Business Model: Key Partnerships

You're mapping out the structure of cbdMD, Inc. (YCBD), and the Key Partnerships block shows how they are externalizing critical functions to scale and secure capital. These aren't just names on a slide; they represent tangible agreements driving revenue and research capability.

Distribution Alliances for Product Rollout

The expansion strategy heavily relies on distribution partners, particularly for the newer, high-growth Herbal Oasis brand. This is where the rubber meets the road for getting product onto shelves.

The October 9, 2025, announcement confirmed a major step: the partnership with Bevtalk Distribution to expand Herbal Oasis throughout most of Florida. This move is designed to capture a larger share of the rapidly expanding THC beverage market, which Whitney Economics estimated reached $1.1 billion in 2024 and is projected to grow more than 25% in 2025. Before Bevtalk, Oasis was already available in parts of the Panhandle via Gulf Distribution. This multi-distributor approach in a key state like Florida shows a focused effort on deep retail penetration, targeting c-stores and independent accounts.

The overall push for brick-and-mortar expansion is being funded, in part, by recent capital raises. For instance, the net proceeds of $1.5 million from the October 2025 private placement were earmarked for, among other things, 'brand distribution expansion.'

Here's a look at the key distribution and retail focus areas:

• Bevtalk Distribution: Secured for expansion across most of Florida for Herbal Oasis.
• Gulf Distribution: Previously handled distribution for Oasis in parts of the Florida Panhandle.
• Wholesale Distributors: Essential for the broader brick-and-mortar retail expansion of the core cbdMD and Oasis lines.

Strategic Research Collaborations

Scientific validation is a core partnership area for cbdMD, Inc. (YCBD), especially through its cbdMD Therapeutics division. The relationship with the University of Mississippi (UM) is foundational here.

The initial research partnership with UM's National Center for Natural Products Research (NCNPR) began in Fall 2021, focusing on identifying novel cannabinoids for therapeutic use. This relationship has evolved, as UM now leads the new Resource Center for Cannabis and Cannabinoid Research (R3CR), supported by a grant partnership led by the National Center for Complementary and Integrative Health (NCCIH). This center is expected to allow more researchers to enter the field over the next five years, providing a long-term pipeline for scientific backing.

Consider the context: cbdMD, Inc. (YCBD) is working to improve its financial footing, projecting a net loss improvement to between $1.9 million and $2.1 million for fiscal year 2025, down from $3.7 million in 2024, while maintaining a 61% gross profit margin in Q3 2025. Partnerships like the one with UM lend credibility that supports the value proposition in a market where consumer trust is paramount.

Partner Entity	Focus Area	Start/Key Date	Impact Metric/Detail
University of Mississippi (UM) / NCNPR	Novel Cannabinoid Identification	Fall 2021	Aims to support research for the next five years via the new R3CR.
National Center for Complementary and Integrative Health (NCCIH)	Research Center Grant Support	2025	Supports the R3CR, which facilitates science-backed evidence generation.

Capital Structure and Investor Relations

Securing non-debt financing is a clear strategic priority, evidenced by the recent equity placement. This partnership with institutional capital providers cleans up the balance sheet, which reported total debt of approximately $962,738 against total shareholder equity of about $6.11 million as of September 30, 2025.

On October 1, 2025, cbdMD, Inc. (YCBD) closed a $1.7 million Series B Convertible Preferred Stock private placement. A key participant was C/M Capital Master Fund, LP. The company received net proceeds of $1.5 million, which CEO Ronan Kennedy noted would be used for working capital and strategic initiatives. The terms of this preferred stock are important for valuation analysis; they carry a 10% annual dividend and are convertible into common stock at an initial price of $1.00 per share.

This capital infusion helps support the overall fiscal 2025 net sales revenue expectation, which management projects to be between $19.1 million and $19.3 million.

• C/M Capital Master Fund, LP: Participated in the $1.7 million Series B Preferred Private Placement.
• Series B Preferred Stock Terms: Carries a 10% annual dividend.
• Conversion Price: Initial conversion price set at $1.00 per share.
• Net Proceeds: The placement yielded $1.5 million in net cash.

Finance: draft 13-week cash view by Friday.

cbdMD, Inc. (YCBD) - Canvas Business Model: Key Activities

You're looking at the core actions cbdMD, Inc. (YCBD) is taking to keep the lights on and grow, focusing on hard numbers from late 2025.

Manufacturing and quality control of hemp-derived products

The activity centers on producing and ensuring the quality of hemp-derived products, including the Farm Bill-compliant Delta-9 offerings.

For the second quarter of fiscal 2025, the cost of sales represented 33.5% of net sales, a slight improvement from 33.8% in the same quarter of the prior year.

The company maintains a strong gross profit margin, which stood at 62% for the second quarter of fiscal 2025.

Disciplined cost management to narrow net loss

Sharp focus on controlling overhead is a key activity driving financial improvement.

Selling, General, and Administrative (SG&A) expenses for the second quarter of fiscal 2025 totaled $3.5 million, down from $4.1 million in the comparative quarter of the prior year.

This cost control helped reduce the net loss for the second quarter of fiscal 2025 to $480,000, a significant narrowing from the $3 million net loss reported in the second quarter of fiscal 2024.

Preliminary fiscal 2025 full-year net loss is expected to be in the range of $1.9 and $2.1 million, a substantial improvement from the $3.7 million loss recorded in fiscal 2024.

Here's the quick math on the full-year expected improvement:

Metric	Fiscal 2024 Amount	Fiscal 2025 Expected Range
Net Sales Revenue	$19.5 million	$19.1 million to $19.3 million
Net Loss	$3.7 million	$1.9 million to $2.1 million

What this estimate hides is the exact timing of the cost reductions relative to revenue fluctuations.

E-commerce operations and direct-to-consumer marketing

Direct-to-consumer (DTC) through e-commerce remains a primary channel, though its performance has seen shifts.

For the second quarter of fiscal 2025, e-commerce sales were $3.6 million, reported as flat year-over-year (YoY).

However, management noted that the e-commerce business for the Herbal Oasis brand started to scale at a much quicker pace during July 2025.

The company has been overhauling its marketing team and digital strategy to reverse a multi-year revenue slide.

• Q2 2025 Net Sales: $4.7 million
• Q2 2025 E-commerce Sales: $3.6 million
• Q2 2025 Wholesale Sales: $1.1 million

Expanding wholesale distribution for the Herbal Oasis brand

Scaling the Herbal Oasis hemp-derived THC seltzer brand through wholesale partnerships is a critical growth activity.

Wholesale revenue saw a 22% YoY increase in the second quarter of fiscal 2025.

As of August 14, 2025, the distribution of Herbal Oasis products expanded to 7 states.

Specific wholesale expansion milestones include:

• New distribution agreement with Carolina Premium Beverage in North Carolina starting May 2025.
• Expansion across most of Florida via a partnership with Bevtalk Distribution announced in October 2025.
• Prior successful launches in Alabama and Florida for the brand.

This activity targets a U.S. THC beverage category estimated at $1.1 billion in sales in 2024, projected for >25% growth in 2025.

For the third quarter of fiscal 2025, total revenue was $4.6 million, down from $5.2 million in the prior year period.

Finance: draft 13-week cash view by Friday.

cbdMD, Inc. (YCBD) - Canvas Business Model: Key Resources

You're looking at the core assets cbdMD, Inc. (YCBD) relies on to execute its strategy as of late 2025. These aren't just products; they are the infrastructure, intellectual property, and financial foundation supporting their market position.

Recognized brand portfolio: cbdMD, Paw CBD, Herbal Oasis, ATRx

The company's resource base is anchored by a portfolio of distinct brands targeting different consumer needs. This diversification across categories is a key strength, especially in a market facing regulatory shifts. The portfolio includes the core cbdMD offering, the pet-focused Paw CBD, the newer Herbal Oasis THC-infused seltzers, and ATRx functional mushroom supplements. This multi-category approach gives cbdMD, Inc. diversified revenue streams.

Here's a look at the channel performance supporting these brands in the first three quarters of fiscal 2025:

Metric	Q1 FY2025 Value	Q3 FY2025 Value	FY2024 Comparative Value
Total Net Sales	$5.1 million	$4.6 million	Q3 FY2024: $5.2 million
E-commerce Sales (DTC)	$3.9 million	$3.6 million	Q3 FY2024: $3.9 million
E-commerce Share of Total Sales	77%	78%	Q3 FY2024: 76%
Wholesale Net Sales	$1.1 million	$1.0 million	Q3 FY2024: $1.2 million

Scalable supply chain and efficient go-to-market strategy

The operational backbone involves a supply chain capable of handling domestic production of CBD products and Farm Bill-compliant Delta-9 offerings. The go-to-market strategy is visibly focused on expanding physical distribution for newer lines, like the Herbal Oasis seltzers. As of August 14, 2025, the Herbal Oasis brand had expanded its footprint into 7 states, with new distribution agreements signed for Tennessee and Minnesota product launches.

The company's focus on cost discipline is a critical operational resource, evidenced by financial performance improvements:

• SG&A expenses for the nine months ending June 30, 2025, totaled $10.7 million, down almost $1.9 million year to date.
• Gross profit remained healthy, reported at 61% for the third quarter of fiscal 2025.
• The expected net loss for the full fiscal year 2025 is projected to narrow to a range of between $1.9 million and $2.1 million, down from a $3.7 million loss in fiscal 2024.

Strengthened balance sheet with over $2.2 million in cash

Financial engineering in 2025 was a key resource focus, moving away from debt-like obligations to improve structural stability. The October 2025 Series B Preferred Placement secured $1.7 million in gross proceeds, resulting in net proceeds of $1.5 million for working capital and strategic initiatives. Following this, management projected that cbdMD, Inc. would finish its fiscal year with more than $2.2 million in cash. This is a significant improvement from the approximately $1.1 million in cash reported on June 30, 2025. Furthermore, total debt as of the end of fiscal year 2025 is reported to be approximately $962,738, with total shareholder equity at about $6.11 million.

Proprietary THC-free broad-spectrum CBD formulations

Intellectual property in the form of proprietary product science is a core asset. This includes the underlying technology for their THC-free broad-spectrum CBD products. Innovation is a stated driver for future revenue, with the company launching new and enhanced formulations on their sleep and calm products in the first quarter of fiscal 2025, focusing on improving both efficacy and taste. The 2025 Equity Compensation Plan reserves 891,316 shares of common stock for options, restricted stock, and other stock-based awards, designed to retain key personnel responsible for developing and managing these proprietary assets.

The CEO and CFO, T. Ronan Kennedy, has a base salary of $340,000 under a new three-year agreement, tying executive compensation to equity outcomes.

cbdMD, Inc. (YCBD) - Canvas Business Model: Value Propositions

cbdMD, Inc. offers its value proposition through a focus on brand trust, product breadth, and entry into high-growth adjacent categories.

Highly trusted and recognized CBD brand in the U.S.

The company positions its core cbdMD brand as one of the most trusted and recognized in the United States, a claim supported by its ability to maintain essentially flat year-over-year sales in fiscal 2025, while many public peers reported declines between 8-10% in the fiscal fourth quarter and trailing twelve months period.

• cbdMD brand offers tinctures, gummies, topicals, and capsules.
• Paw CBD brand includes veterinarian-formulated pet products.

Comprehensive line of U.S. produced, THC-free CBD products

The core offering emphasizes domestic production and the absence of THC in its primary CBD line, including NSF Certified for Sport® products. The company also offers Full Spectrum products.

Farm Bill-compliant Delta-9 THC-infused social seltzers (Herbal Oasis)

The Herbal Oasis brand provides Farm Bill-compliant Delta-9 THC-infused social seltzers, which blend hemp-derived THC, CBG, and functional mushrooms. This product line targets the rapidly expanding THC beverage category. The U.S. THC beverage market reached an estimated $1.1 billion in sales in 2024 and is projected to grow more than 25% in 2025. In October 2025, the company expanded this line with new 10mg THC flavors.

Multi-category wellness portfolio including functional mushroom supplements

The company extends its wellness portfolio through its ATRx brand, which focuses on natural functional mushroom support. The ATRx Platinum line secured distribution across approximately 1,500 GNC corporate locations as of the second quarter of fiscal 2024. The broader functional mushroom market size itself was valued at USD 12.09 billion in 2025.

Here's the quick math on the financial context supporting these value propositions as of late 2025:

Metric	Value (Late 2025)	Comparison/Context
Fiscal 2025 Net Sales (Expected Range)	$19.1 to $19.3 million	Compared to $19.5 million in fiscal 2024.
Q4 2025 Net Sales (Expected Range)	$4.7 to $4.9 million	Compared to $4.6 million in Q4 2024.
Fiscal 2025 Net Loss (Expected Range)	$1.9 to $2.1 million	Improvement from $3.7 million loss in fiscal 2024.
Q3 2025 Revenue	$4.6 million	Down from $5.2 million in the prior year period.
Q2 2025 Total Net Sales	$4.7 million	Up 8.6% year-over-year.
Q2 2025 Wholesale Sales	$1.1 million	Up 22% year-over-year.

The company's Q2 2025 gross profit margin held strong at 62%, and SG&A expenses were reduced to $3.5 million from $4.1 million year-over-year. The Q1 2025 period saw the company achieve a positive non-GAAP adjusted EBITDA for the first time in company history.

cbdMD, Inc. (YCBD) - Canvas Business Model: Customer Relationships

You're looking at how cbdMD, Inc. keeps its customers engaged and spending, which is critical given the competitive landscape and the focus on cost-efficient growth.

Direct-to-Consumer (DTC) e-commerce engagement for retention

The DTC channel remains the core relationship driver, though its share has seen some fluctuation. For the second quarter of fiscal 2025, e-commerce sales were $3.6 million, which was flat year-over-year, representing 77% of total net sales, down from 83% in the prior year comparative quarter. By the third quarter of fiscal 2025, DTC net sales were $3.6 million, making up 78% of the total revenue for that period. This channel relies heavily on keeping existing buyers active. Industry trends suggest that for subscription services, which are a key retention tool, businesses are designing flows to dampen monthly churn bands of 10-15%. For general satisfaction, cbdMD, Inc. offers a full refund on the purchase price within 60 days.

Subscription models for recurring revenue and loyalty

While specific subscription revenue numbers for cbdMD, Inc. aren't explicitly broken out in the latest reports, the strategy is clearly implied by the focus on retention in the DTC space. The goal is to convert one-time buyers into loyal, recurring customers. The industry benchmark for subscription businesses suggests they often see higher repeat purchase rates than one-time models. Management's focus on strengthening the business foundation suggests efforts to lock in customer value over the long term, moving away from purely acquisition-focused spending.

Dedicated wholesale sales representatives for retail partners

The wholesale channel has shown significant year-over-year growth, indicating successful relationship management with retail partners through dedicated sales efforts. In the second quarter of fiscal 2025, wholesale sales jumped 22% year-over-year, reaching $1.1 million compared to $750,000 in the comparative quarter of fiscal 2024. For the third quarter of fiscal 2025, wholesale revenue contributed $1.0 million, or 22% of total revenue. This growth in wholesale is a key part of the strategy to achieve profitability, alongside the DTC channel.

Here's a quick look at how the two main channels performed in recent quarters:

Metric	Q2 Fiscal 2025	Q3 Fiscal 2025
Total Net Sales	$4.7 million	$4.6 million
DTC Sales (USD)	$3.6 million	$3.6 million
DTC Share of Sales	77%	78%
Wholesale Sales (USD)	$1.1 million	$1.0 million
Wholesale YoY Growth	+22%	N/A

Customer service and community building around OASIS Social Tonic

For the newer, high-growth product line, Herbal Oasis Social Tonics, the relationship focus is on rapid expansion and data-driven product refinement. The brand expanded its distribution to 7 states as of August 14, 2025. A major step in retail engagement was the debut at select Total Wine stores in North Carolina on June 24, 2025. The company used consumer testing, including in-person tastings and social listening, to inform product updates. This research validated consumer demand, leading to the launch of two new targeted 10mg options (Berry Fusion and Tropic Wave) on October 22, 2025. The company explicitly stated, 'We didn't guess; we listened,' regarding these product updates.

Key milestones for the brand's market penetration include:

• Retail debut at Total Wine in North Carolina: June 24, 2025.
• Distribution expanded to 7 states as of August 14, 2025.
• Launch of two new 10mg potency SKUs on October 22, 2025.

Finance: draft 13-week cash view by Friday.

cbdMD, Inc. (YCBD) - Canvas Business Model: Channels

You're looking at how cbdMD, Inc. gets its products into the hands of customers, and honestly, the strategy is heavily weighted toward the digital storefront, though the wholesale push is gaining traction. The company's channel mix is a key area of focus as they manage a tough market environment.

The primary channel remains Direct-to-Consumer (DTC) e-commerce, which the plan outlines as accounting for 77% of Q2 2025 sales. This is where the highest margin sales typically occur, defintely giving them more control over the customer experience and pricing.

Wholesale distribution to brick-and-mortar retailers is the secondary focus, targeted at 23% of Q2 2025 sales. This channel is crucial for broader brand visibility, even if the margins are thinner. For instance, in the third quarter of fiscal 2025, wholesale sales were reported at $1,000,000.

The company is actively managing this mix. Here's a look at the most recent concrete quarterly breakdown we have, which is Q3 2025, showing the current reality of the channel split:

Channel Type	Q3 2025 Net Sales Amount	Q3 2025 Percentage of Total Sales
E-commerce Direct-to-Consumer (DTC)	$3,600,000	78%
Wholesale Distribution	$1,000,000	22%
Total Net Sales (Q3 2025)	$4,600,000	100%

The full fiscal year 2025 projection shows total net sales revenue expected to range between $19.1 million and $19.3 million, which is essentially flat compared to the $19.5 million in fiscal 2024. This indicates the channel strategy is aimed at stabilizing revenue while improving profitability.

Beyond these two main pillars, cbdMD, Inc. (YCBD) utilizes other avenues to reach consumers and drive sales volume. You should track these as potential growth vectors or cost centers:

• Third-party e-commerce platforms and online marketplaces are used to capture traffic outside the primary website.
• Social media platforms like Instagram and Facebook are key for direct engagement and driving traffic to the DTC site.
• The company also has a presence through its various brands like Paw CBD, which might utilize slightly different channel tactics.

To be fair, the Q2 2025 total net sales were $4.7 million, with e-commerce sales at $3.6 million and wholesale at $1.1 million. The slight shift in percentages between Q2 and Q3 shows the ongoing dynamic nature of their channel performance.

Finance: draft 13-week cash view by Friday.

cbdMD, Inc. (YCBD) - Canvas Business Model: Customer Segments

You're looking at the customer base for cbdMD, Inc. as of late 2025. The company is clearly segmenting its market, moving beyond a single focus to capture different parts of the evolving hemp and THC adjacent spaces. The core remains the established CBD user, but the growth push is heavily weighted toward the new, regulated THC beverage segment.

The primary customer segments cbdMD, Inc. targets are:

• General wellness consumers seeking CBD tinctures, gummies, and topicals.
• Pet owners buying veterinarian-formulated products under the Paw CBD brand.
• Adult consumers seeking hemp-derived THC social beverages through the Herbal Oasis brand.
• Athletes and active individuals, supported by NSF Certified for Sport® products within the main cbdMD line.

The financial data from the third quarter of fiscal year 2025, which ended June 30, 2025, shows how these segments translate into sales channels. The Direct-to-Consumer (DTC) channel, which primarily serves the general wellness consumer, remains the largest source of revenue, though it saw a slight year-over-year dip.

Here's a quick look at the revenue breakdown for Q3 FY2025:

Customer Channel/Brand Focus	Q3 FY2025 Net Sales Amount	Contribution to Total Revenue (Q3 FY2025)
Direct-to-Consumer (DTC) - Core CBD Consumers	$3.6 million	78%
Wholesale Channel - Retailers/Partners	$1.0 million	22%

The company's overall expected performance for the full fiscal year 2025 reflects this mix, with total net sales revenue projected to land between $19.1 million and $19.3 million, which is essentially flat compared to the $19.5 million reported in fiscal year 2024. The wholesale channel, which includes distribution for Paw CBD and the newer Herbal Oasis, saw its Q3 sales fall by 17.1% year-over-year to $1.0 million, indicating current pressure in that B2B segment, even as the company aggressively expands the THC beverage footprint.

The Herbal Oasis segment is a critical focus for future customer acquisition, tapping into the broader beverage market. The U.S. THC Beverage sales market is projected to grow more than 25% in 2025. To serve this segment, cbdMD, Inc. has been rapidly expanding distribution for Herbal Oasis, reaching seven states as of the end of Q3 2025, including recent additions like Tennessee and Minnesota, which are considered high-potential markets for functional alcohol-free social beverages.

For the core CBD consumer, the company maintains a high gross margin of over 61% as of Q3 2025, which is competitive in the current environment. The company's commitment to the athlete segment is evidenced by the availability of its products that are NSF Certified for Sport®.

cbdMD, Inc. (YCBD) - Canvas Business Model: Cost Structure

You're looking at the core expenses cbdMD, Inc. (YCBD) managed in 2025 to steer toward profitability. The cost structure was heavily influenced by a deliberate shift toward operational efficiency after previous periods of higher spending.

Significant Selling, General, and Administrative (SG&A) expenses showed marked improvement due to cost discipline initiatives. For instance, SG&A costs for the first quarter of fiscal 2025 totaled $3.4 million, a clear reduction from the $4.6 million reported in the prior year comparative quarter. This trend continued into the second quarter, with SG&A at $3.5 million versus $4.1 million the year before. By the third quarter of fiscal 2025, SG&A expenses were $3.7 million, which management noted remained flat versus the prior year comparative quarter. Year-to-date figures for the nine months ending June 30, 2025, showed SG&A expenses at $10.7 million, representing a reduction of almost $1.9 million year-to-date.

Maintaining healthy gross profit margins was key to offsetting operating costs. The company reported gross profit margins that landed within the targeted range of 61% to 66% across the first three quarters of 2025. To achieve this, Cost of Goods Sold (COGS) had to be managed tightly relative to net sales.

Period	Gross Profit Margin	SG&A Expense
Q1 Fiscal 2025	66%	$3.4 million
Q2 Fiscal 2025	62%	$3.5 million
Q3 Fiscal 2025	61%	$3.7 million

Marketing and customer acquisition costs presented a mixed picture within the overall SG&A reduction efforts. While the company focused on cutting other areas, marketing expense actually increased year over year in the third quarter of fiscal 2025. This suggests continued investment in customer acquisition, even as other operational costs were being trimmed.

The cost discipline was heavily focused on specific overhead areas. Management explicitly cited reductions in two major components of the cost base:

• Payroll and professional fees were reduced as part of cost discipline.
• The elimination of the headquarters lease was another significant cost-saving initiative.

Here's the quick math on the year-over-year SG&A improvement for Q1 2025: $4.6 million down to $3.4 million. What this estimate hides is the exact split between payroll savings versus professional fee reductions, though both were targeted actions.

cbdMD, Inc. (YCBD) - Canvas Business Model: Revenue Streams

You're looking at how cbdMD, Inc. (YCBD) brings in the money, which is crucial for understanding its financial health as it pushes for profitability.

The Direct-to-Consumer (DTC) sales channel remains the definitely dominant stream for cbdMD, Inc. (YCBD). For the second quarter of fiscal 2025, DTC net sales were \$3.6 million. This represented 77% of the total net sales for that quarter.

Wholesale sales to retail partners are clearly positioned as a key growth area for the business. In the second quarter of fiscal 2025, wholesale revenue hit \$1.1 million. That was a 22% rise year-over-year for that specific channel, showing traction outside of the core online business.

Here's a quick look at the channel mix from the second quarter of fiscal 2025, which shows that DTC still carries the bulk of the revenue:

Revenue Stream	Q2 Fiscal 2025 Amount	Percentage of Total Q2 Revenue
Direct-to-Consumer (DTC)	\$3.6 million	77%
Wholesale	\$1.1 million	23%

Looking at the full picture, the Total net sales revenue for fiscal 2025 is expected to range between \$19.1 million and \$19.3 million. This compares to the fiscal 2024 total net sales revenue of \$19.5 million, indicating a strategy focused on stabilizing revenue while improving the bottom line.

A significant part of the near-term revenue strategy involves sales from new product categories like hemp-derived THC seltzers under the Herbal Oasis brand. This line is expected to contribute to revenue growth starting in late 2025. The brand has already secured distribution partners in states like Alabama, Florida, and North Carolina, tapping into that fast-growing beverage sector.

The revenue composition shows a clear focus on two main avenues for cash generation:

• Maintaining the high-margin DTC base, which generated \$3.6 million in Q2 2025.
• Aggressively scaling the wholesale channel, which grew 47% year-over-year to \$1.1 million in Q2 2025, based on trailing twelve-month data comparison.
• Generating initial revenue contributions from the award-winning Herbal Oasis THC seltzer line in the latter part of the fiscal year.

Finance: draft 13-week cash view by Friday.