cbdMD Inc (YCBD) 2025 Q3 法說會逐字稿

Good afternoon. Welcome to cbdMDs third-quarter fiscal 2025 results conference call. This afternoon, the company issued a press release that provided an overview of its third-quarter results, which followed the filings of its quarterly report on Form 10-Q.

午安.歡迎參加 cbdMD 2025 財年第三季業績電話會議。今天下午，該公司發布了一份新聞稿，概述了其第三季度業績，此前該公司已提交了 10-Q 表季度報告。

Today's conference call is being recorded and will be available online along with our earning press release covering our financial results and non-GAAP presentation at cbdMD.com in accordance with cbdMD's retention policies. (Operator Instructions)

今天的電話會議正在錄製中，並將根據 cbdMD 的保留政策，與涵蓋我們的財務業績和非 GAAP 演示的收益新聞稿一起在 cbdMD.com 上在線提供。（操作員指示）

At this time, I would now like to turn the conference over to Brad Whitford, the company's Chief Accounting Officer. Brad, please go ahead.

現在，我想將會議交給公司首席會計官布拉德·惠特福德 (Brad Whitford)。布拉德，請繼續。

Thank you, Renju, and thank you all for joining cbdMD's June 30, 2025, third-quarter 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 the 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.

謝謝你，Renju，也謝謝大家參加 cbdMD 2025 年 6 月 30 日的 2025 財年第三季財報電話會議和更新。參加今天電話會議的還有我們的執行長兼財務長羅南肯尼迪 (Ronan Kennedy)。我們想提醒大家，關於未來預期、計畫和前景的各種評論均構成 1995 年《私人證券訴訟改革法案》安全港條款規定的前瞻性陳述。

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 10K for the year ended September 30, 2024, 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.

cbdMD 警告稱，這些前瞻性陳述受風險和不確定性的影響，可能導致我們的實際結果與所示的結果存在重大差異，包括公司截至 2024 年 9 月 30 日的 10K 表年度報告中描述的風險以及我們向美國證券交易委員會提交的其他文件，所有這些文件均可在公司網站 www.cbdmd.com 或美國證券交易委員會上查閱。

Any forward-looking statements made on this conference call speak only as of today's date, Thursday, August 14, 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 as they may be required by Federal Security Laws.

本次電話會議上所做的任何前瞻性陳述僅代表截至今天（2025 年 8 月 14 日星期四）的觀點，cbdMD 不打算更新任何前瞻性陳述以反映今天之後發生的事件或情況，除非聯邦安全法可能要求。

With that, I'd like to turn the call over to Ronan.

說完這些，我想把電話轉給羅南。

Good afternoon, everyone, and thank you for joining us today. This quarter was a mix of continued transformation, important progress, and some short-term challenges that we were addressing head on. While our financial results didn't meet our own standard, the actions we've taken over the past several months are already showing encouraging signs that our trajectory is improving.

大家下午好，感謝大家今天的參與。本季我們經歷了持續的轉型、重要的進展以及一些我們正在應對的短期挑戰。雖然我們的財務表現沒有達到我們自己的標準，但過去幾個月我們採取的行動已經顯示出令人鼓舞的跡象，表明我們的軌跡正在改善。

The big picture is this: we spent the past year making structural changes to reverse a multi-year revenue decline, streamline operations, and strengthen our capital structure. Those efforts have positioned us with a healthier balance sheet, [nearer] and more agile organization, and more focused growth strategy.

整體情況是這樣的：我們在過去一年中進行了結構性改革，以扭轉多年的收入下滑趨勢、精簡營運並加強資本結構。這些努力使我們擁有了更健康的資產負債表、更緊密、更靈活的組織以及更有針對性的成長策略。

Our third quarter was about putting those changes in motion, rebuilding our marketing execution, expanding Oasis distribution, and navigating on the [usual] active regulatory environment that affected parts of our wholesale business.

我們的第三季致力於推動這些變革，重建我們的行銷執行，擴大 Oasis 分銷，並應對影響我們部分批發業務的[通常]積極的監管環境。

On the operational front, our Oasis brand continues to be the focus of our growth strategy. Since the end of Q3, we added Tennessee and Minnesota to our distribution footprint, bringing distribution up to seven states with several others in the pipeline. These are high potential markets with consumer demographics aligned with our target profile for functional alcohol-free social beverages. Shipments to these states are scheduled for August with in-market availability in September.

在營運方面，我們的 Oasis 品牌繼續成為我們成長策略的重點。自第三季末以來，我們將田納西州和明尼蘇達州添加到我們的分銷範圍中，使分銷範圍擴大到七個州，另有幾個州正在籌備中。這些都是具有高潛力的市場，其消費者人口統計與我們的功能性無酒精社交飲料的目標形象相符。預計 8 月將向這些州發貨，9 月將上市。

Oasis is an entry in one of the fast-growing segments of the beverage market. The THC seltzer category is growing rapidly, and we remain encouraged by the feedback we're getting from distributors and consumers. Our direct-to-consumer sales for Oasis began to accelerate in July and helped a more focused digital marketing approach, stronger influencer partnerships, and optimized e-commerce files. In wholesale, we faced some short-term disruptions from shifting regulations in certain states, which caused hesitation or delays in orders from some accounts. We view this as temporary, but it did have an impact on Q3 revenue.

Oasis 是飲料市場中成長最快的細分市場之一。THC 氣泡水類別正在快速成長，我們從經銷商和消費者那裡得到的回饋仍然令人鼓舞。我們對 Oasis 的直接面向消費者的銷售在 7 月開始加速，並有助於更有針對性的數位行銷方法、更強大的影響力合作夥伴關係以及優化的電子商務文件。在批發方面，我們面臨某些州法規變化帶來的短期中斷，這導致一些帳戶的訂單出現猶豫或延遲。我們認為這只是暫時的，但確實對第三季的收入產生了影響。

In response, our sales teams have been proactively securing new retail commitments, deepening relationships with the most supportive accounts, and adjusting our geographic focus to prioritize states with stable regulatory environments.

作為回應，我們的銷售團隊一直在積極爭取新的零售承諾，深化與最支持客戶的關係，並調整我們的地理重點，優先考慮監管環境穩定的州。

Across our legacy cbdMD and POS CBD lines, we continue to optimize our [schemics], streamline our supply chain, and focus marketing on high margin, high velocity products. Our ATRx functional mushroom line remains smaller contributor but has a long-term strategic role as the category matures and provides a platform to diversify into other non-cannabinoid botanicals.

在我們的傳統 cbdMD 和 POS CBD 產品線中，我們不斷優化我們的 [方案]，簡化我們的供應鏈，並將行銷重點放在高利潤、高速度的產品上。我們的 ATRx 功能性蘑菇系列貢獻較小，但隨著該類別的成熟，它具有長期戰略作用，並為向其他非大麻素植物藥多元化發展提供了平台。

Regulatory activity has been unusually high in recent months, both at the state and federal level. In some states, proposed or enacted changes have created confusion in the market, which in turn impacted wholesale order patterns. Rather than be reactive, we've been proactive. cbdMD is actively engaged with industry associations, lobbying directly in key state capitals and mobilizing our customer base. To communicate with lawmakers, our message is clear, responsible regulation that protects consumers also protects legitimate businesses and supports economic growth.

近幾個月來，無論是州級還是聯邦級的監管活動都異常活躍。在一些州，提議或頒布的變更造成了市場混亂，進而影響了批發訂單模式。我們不是被動應對，而是主動出擊。 cbdMD 積極與行業協會合作，直接在主要州首府進行遊說並動員我們的客戶群。為了與立法者溝通，我們的訊息很明確，負責任的監管不僅保護消費者，也保護合法企業並支持經濟成長。

At the national level, we're encouraged by signs of progress on the Farm Bill and by recent statements from the White House regarding cannabis scheduling. If enacted as expected, these changes could create clearer, more stable operating environment and expand market opportunities.

在國家層面，農業法案取得進展的跡像以及白宮最近關於大麻管制的聲明令我們感到鼓舞。如果這些變化能夠如預期實施，將創造更清晰、更穩定的經營環境，擴大市場機會。

In the big picture, we believe heightened regulatory scrutiny will benefit well-prepared and regulatory compliant companies such as cbdMD. We believe brands with deep compliance expertise, robust quality systems, and the ability to adapt quickly will gain share as weaker players exit. This environment could also accelerate industry consolidation, something we see as a potential growth lever for cbdMD, given our clean balance sheet and improved financial flexibility.

從整體來看，我們相信加強監管審查將使 cbdMD 等準備充分且遵守監管規定的公司受益。我們相信，隨著實力較弱的參與者退出，擁有深厚合規專業知識、強大品質系統和快速適應能力的品牌將獲得市場份額。這種環境也可能加速產業整合，鑑於我們的資產負債表清晰且財務靈活性提高，我們認為這是 cbdMD 的潛在成長槓桿。

One of cbdMD's key strengths is our ability to operate across multiple categories. CBD wellness products, pet CBD, functional mushroom supplements, and now hemp-derived THC beverages. This multi-category approach gives us diversified revenue streams and the ability to shift resources toward the highest growth opportunities.

cbdMD 的主要優勢之一是我們能夠在多個類別中運作。CBD 保健產品、寵物 CBD、功能性蘑菇補充劑，以及現在的大麻衍生的 THC 飲料。這種多類別方法為我們提供了多樣化的收入來源，並能夠將資源轉向最高的成長機會。

Operationally, we believe our gross margins remain among the strongest in our peer group, thanks to discipline, cost control, and scalable supply chain, and efficient go-to-market strategy. Financially, the elimination of preferred dividend obligations and simplification of our capital structure means we can focus more attention into growth activity.

從營運角度來看，我們相信，由於紀律、成本控制、可擴展的供應鏈和高效的市場進入策略，我們的毛利率仍將是同業中最高的。從財務角度來看，取消優先股息義務和簡化資本結構意味著我們可以將更多注意力集中在成長活動上。

I'll now turn things over to Brad for an overview on financials.

現在我將把財務概況交給布萊德。

Thanks, Ronan. Total net sales for the third quarter of fiscal 2025 were $4.6 million, representing a 10.9% decrease from the prior year comparative quarter total and a 2% decrease from the second quarter. While this is disappointing, we are pleased to see revenues stabilize quarter over quarter.

謝謝，羅南。2025 財年第三季的總淨銷售額為 460 萬美元，比去年同期總額下降 10.9%，比第二季下降 2%。雖然這令人失望，但我們很高興看到收入逐季穩定下來。

Our quarterly e-commerce direct-to-consumer business was $3.6 million in the third quarter of fiscal 2025, representing a decrease of $0.3 million, or 7.7% over the prior year quarter. In the third quarter of 2025, e-commerce represented 78% of our total net sales versus 76% in the prior year comparative quarter.

2025 財年第三季度，我們的季度電子商務直接面向消費者業務為 360 萬美元，比去年同期減少 30 萬美元，即 7.7%。2025 年第三季度，電子商務占我們總淨銷售額的 78%，而去年同期為 76%。

Our wholesale business generated $1 million of net sales for the third quarter of fiscal 2025, down 17.1% as compared to $1.2 million for the comparative quarter in fiscal 2024. State level regulatory uncertainty impacted our core wholesale business and momentum of our Oasis brand. For the third quarter of 2025, our gross profit remained healthy at 61%, or essentially flat sequentially from the previous quarter.

我們的批發業務在 2025 財年第三季實現了 100 萬美元的淨銷售額，與 2024 財年同期的 120 萬美元相比下降了 17.1%。國家層級監管的不確定性影響了我們的核心批發業務和 Oasis 品牌的發展勢頭。2025 年第三季度，我們的毛利保持健康，達到 61%，與上一季基本持平。

Our SG&A expenses for the third quarter of fiscal 2025 totaled $3.7 million and remained flat versus the prior year comparative quarter. Year over year, our marketing expense increased while we were able to reduce payroll and eliminate our headquarter's rent. For the nine months ending June 30, 2025, SG&A expenses totaled $10.7 million, down almost $1.9 million year-to-date.

我們 2025 財年第三季的銷售、一般及行政費用總計 370 萬美元，與去年同期持平。與去年同期相比，我們的行銷費用有所增加，但我們卻減少了工資並免除了總部的租金。截至 2025 年 6 月 30 日的九個月，銷售、一般及行政費用總計 1,070 萬美元，比年初至今減少近 190 萬美元。

Overall, this resulted in a loss from operations of approximately $905,000 for the third quarter of fiscal 2025 as compared to a loss from operations of $382,000 in the prior year period. After adjustments to the fair value of the promissory notes and interest expense, net loss for the third quarter of 2025 totaled $895,000 as compared to income of $459,000 in the prior year period.

總體而言，這導致 2025 財年第三季的營業虧損約為 905,000 美元，而去年同期的營業虧損為 382,​​000 美元。調整本票公允價值和利息費用後，2025 年第三季淨虧損總計 895,000 美元，而去年同期的收入為 459,000 美元。

Year-to-date, we've cut our net loss almost in half, down from $3.5 million loss in fiscal 2024 to $1.3 million in 2025. Our non-GAAP adjustments to operating expenses for the third quarter of fiscal 2025 include $1,000 in non-cash employee stock expense and $280,000 in depreciation and amortization expense, resulting in a non-GAAP adjusted EBITDA loss of $624,000 for the third quarter of fiscal 2025 as compared to an $84,000 non-GAAP adjusted EBITDA loss in the third quarter of fiscal 2024.

年初至今，我們的淨虧損幾乎減少了一半，從 2024 財年的 350 萬美元虧損降至 2025 年的 130 萬美元。我們對 2025 財年第三季營運費用的非 GAAP 調整包括 1,000 美元的非現金員工股票費用和 280,000 美元的折舊和攤銷費用，導致 2025 財年第三季度的非 GAAP 調整後 EBITDA 虧損為 624,000 美元，而 2024 年 2024,000 美元84,000 美元。

We had cash and cash equivalents of approximately $1.1 million and working capital of approximately $2 million on June 30, 2025, as compared to a $2.4 million in cash and a working capital deficit of approximately $2.2 million on September 30, 2024. The main factor contributing to the improvement in our networking capital is the elimination of the accrued preferred dividends that were a short-term liability on our balance sheet.

截至 2025 年 6 月 30 日，我們的現金和現金等價物約為 110 萬美元，營運資金約為 200 萬美元，而 2024 年 9 月 30 日我們的現金和現金等價物約為 240 萬美元，營運資金赤字約為 220 萬美元。促使我們網路資本改善的主要因素是消除了資產負債表上的短期負債即應計優先股股利。

We invested an additional $300,000 in inventory during the quarter as we continue to bolster a few key SKUs and continue to prepare to roll out Oasis inventory to distributors in the fourth quarter with several new state distribution contracts that are now in place. We continue to focus on improving our working capital and managing our cash carefully.

我們在本季度額外投資了 30 萬美元用於庫存，繼續加強一些關鍵 SKU，並繼續準備在第四季度向分銷商推出 Oasis 庫存，目前已簽訂了幾份新的州分銷合約。我們繼續致力於改善我們的營運資金並謹慎管理我們的現金。

With that, I'll turn the call back over to Ronan.

說完這些，我就把電話轉回給羅南。

Thank you, Brad. Looking to the remainder of fiscal 2025 and end of 2026, our priorities are clear. First, drive sustained, direct-to-consumer growth by leveraging our restructure marketing team, refining acquisition strategies, and building brand communities around Oasis and cbdMD.

謝謝你，布拉德。展望 2025 財年剩餘時間和 2026 年底，我們的優先事項很明確。首先，透過利用我們重組的行銷團隊、完善收購策略以及圍繞 Oasis 和 cbdMD 建立品牌社群來推動持續的直接面向消費者的成長。

Second, expand wholesale distribution in jurisdictions with favorable regulatory environments, deepening penetration in existing accounts while adding new retail partners. Third, maintaining operational discipline to preserve margins and ensure capital efficiency. Finally, evaluating strategic opportunities including partnerships, acquisitions, or category expansions that can deliver incremental growth and shareholder value.

其次，在監管環境良好的司法管轄區擴大批發分銷，深化現有帳戶的滲透，同時增加新的零售合作夥伴。第三，維持經營紀律，維持利潤率並確保資本效率。最後，評估能夠帶來增量成長和股東價值的策略機會，包括合作夥伴關係、收購或類別擴展。

We expect momentum in Oasis to build as distribution matures and customer awareness increases. We also see opportunities to cross sell Oasis into our existing retail accounts for cbdMD products and vice versa, creating synergies across our portfolio.

我們預計，隨著分銷的成熟和客戶意識的增強，Oasis 的發展勢頭將會增強。我們還看到了將 Oasis 交叉銷售到我們現有的 cbdMD 產品零售帳戶中以及反之亦然的機會，從而在我們的產品組合中創造協同效應。

In closing, this quarter represents a period of heavy lifting and execution against our [reset] strategy. We're seeing early signs that those efforts are working, especially in the Oasis growth and improving customer acquisition at cbdMD.

最後，本季是我們[重置]策略的艱苦工作和執行時期。我們看到了這些努力正在發揮作用的早期跡象，特別是在 Oasis 的成長和 cbdMD 的客戶獲取率的提高方面。

While challenges remain, particularly on the regulatory front, we believe the long-term outlook remains strong. The combination of cleaner capital structure, category leading brands, and focused execution plan gives us confidence in our ability to deliver improved results in the quarters ahead.

儘管挑戰依然存在，特別是在監管方面，但我們相信長期前景仍然強勁。更清晰的資本結構、品類領先的品牌以及有針對性的執行計劃相結合，讓我們對未來幾季取得更好業績的能力充滿信心。

I want to thank our employees for the resiliency and dedication, our retail and distribution partners for their continued trust, and our shareholders for their ongoing support as we position cbdMD for sustainable profitable growth.

我要感謝我們員工的堅韌和奉獻精神、我們的零售和分銷合作夥伴的持續信任以及我們的股東在我們為 cbdMD 實現可持續盈利增長所做的持續支持。

Now I'm happy to open up the call for questions.

現在我很高興開始回答問題。

(Operator Instructions) Adam Waldo, Lismore Partners LLC.

（操作員指示）Adam Waldo，Lismore Partners LLC。

I want to start on the strategic side. With the capital structure cleaned up from the preferred stock conversion of common, you offered commentary on last quarter's call about the kinds of strategic activity the Board of management might find to be attractive going forward. Can you offer any updates today on the Board's thinking and strategic activities progress over the last quarter?

我想從戰略方面開始。隨著優先股轉換為普通股後資本結構得到清理，您在上個季度的電話會議上對管理委員會未來可能認為有吸引力的策略活動類型發表了評論。您今天能否提供有關董事會上個季度的思考和策略活動進展的最新資訊？

Look, we have seen a pretty significant increase in opportunities that we're looking at. We continue to diligence them and look at what opportunities we think have reasonable execution risk and can be accretive for a shareholder base. So we're encouraged by the increased volume, but can't really comment at this point about any further discussions that we're having.

瞧，我們看到我們所關注的機會有了相當大的增加。我們將繼續對其進行盡職調查，並尋找我們認為具有合理執行風險並可以為股東基礎帶來增值的機會。因此，我們對交易量的增加感到鼓舞，但目前無法對我們正在進行的任何進一步討論發表評論。

Fair enough. But basically, the profile of the right strategic partners is pretty much unchanged from what you articulate last quarter. Is that fair?

很公平。但基本上，合適的策略夥伴的概況與您上個季度所闡述的相比幾乎沒有變化。這樣公平嗎？

That's fair. Okay, switching gears to the reverse stock split for a minute. Obviously when you all did the conversion of the preferred common and got the shareholder vote in support of that, you did a concurrent share, reverse split on the common that you hoped would achieve a sustained trading price in the stock above $1 that hasn't materialized. So should we expect in the near term another shareholder proposal on a further reverse stock split of, let's say, 4 or 5 or 6 to 1 to get us sustainably above that dollar trading price?

這很公平。好的，我們暫時轉到反向股票分割的話題。顯然，當你們都完成了優先普通股的轉換並獲得股東投票支持時，你們對普通股進行了同時股票反向拆分，你們希望實現股票交易價格持續高於 1 美元，但這並沒有實現。那麼，我們是否應該期待近期有另一項股東提議進一步進行反向股票分割，比如說 4 比 1、5 比 1 或 6 比 1，以使我們的股價持續高於美元交易價格？

At this point, we can't comment about any future stock splits, but we're constantly evaluating sort of what we can do to continue to drive interest and share appreciation.

目前，我們無法對任何未來的股票分割發表評論，但我們正在不斷評估我們可以採取哪些措施來繼續推動興趣和分享升值。

Okay. Switching gears on the financial side, can you all provide any more specificity around the drivers of the 500-basis point year-over-year decline in the gross margin in the latest quarter? And then you had a bit of an uptick, about $200,000 in the SG&A expense in the latest quarter relative to $3.5 million that had prevailed over the prior three quarters. And any color on that would also be helpful. Thanks.

好的。換到財務方面，您能否更具體地說明導致最近一個季度毛利率年減 500 個基點的原因？然後又出現了小幅上漲，最新一個季度的銷售、一般和行政費用 (SG&A) 約為 20 萬美元，而前三個季度則為 350 萬美元。任何顏色都會有幫助。謝謝。

Sure. So on the gross margin side of things, I think what you've seen, especially over last year, you did see some absorption losses with lower revenues. We also incurred sort of an increase in our warehousing cost, when we resigned the lease extension, so we saw increase in costs that go into kind of our gross margins related to that.

當然。因此，就毛利率方面而言，我認為您所看到的，尤其是去年，您確實看到了一些吸收損失以及收入的下降。當我們重新簽訂續約合約時，我們的倉儲成本也出現了一定程度的增加，因此，與此相關的成本也增加了，影響了我們的毛利率。

And then I think in particular this quarter, we did incur some incremental packaging related expenses as we're dealing with some of the regulation whiplash on state level requirements that came out as we're trying to react quickly. I think what I would say is as Oasis continues to grow, that does not have the same gross margin percent as our traditional CBD business, so I would expect some kind of averaging down a little bit as we go, but still expect as revenue grows, we should be able to get above on the overhead absorption side of things.

然後我認為特別是在本季度，我們確實產生了一些與包裝相關的增量費用，因為我們正在處理一些州級要求的監管限制，而我們正試圖迅速做出反應。我想說的是，隨著 Oasis 的持續增長，它的毛利率與我們傳統的 CBD 業務不一樣，所以我預計平均毛利率會略有下降，但隨著收入的增長，我們應該能夠在間接費用吸收方面取得進步。

On the SG&A, we did spend a little bit more on the marketing side as we were rebuilding our marketing team, and then I think we did have an increase. We had a catch up in sort of an insurance accrual that did hit this quarter a little bit that impacted our SG&A costs.

在銷售、一般和行政費用方面，由於我們正在重建行銷團隊，我們在行銷方面的支出確實增加了一些，然後我認為我們的支出確實有所增加。我們彌補了某種保險應計費用，這確實對本季產生了一些影響，對我們的銷售、一般和行政費用 (SG&A) 成本產生了一定影響。

Okay. And so going forward, can you give any sort of guidance range for gross margin over the next couple of quarters as Oasis scales? I know it's a little hard because it's scaling quickly and you're gaining a lot of distribution. But should we expect a low 60% gross margin going forward or might it pick back up a little bit as some of the issues from the last fiscal quarter around regulatory whiplash hopefully would dissipate?

好的。那麼展望未來，隨著 Oasis 規模的擴大，您能否對未來幾季的毛利率給出任何指導範圍？我知道這有點難，因為它正在快速擴展，而且你正在獲得大量的分佈。但是，我們是否應該預期未來的毛利率會處於 60% 的低位，還是會隨著上一財季監管方面的一些問題逐漸消散而略有回升？

I would say, for the near term, sort of in the lower half of the 60s, and our goal is constantly to focus on margin improvement opportunities to make sure that we can get back a few margin points to get back to where we've been.

我想說，就短期而言，利潤率大概在 60 年代下半期，我們的目標是不斷關注利潤率的提高機會，以確保我們能夠恢復幾個利潤點，回到原來的水平。

Tom McGovern, Maxim Group.

湯姆麥戈文，馬克西姆集團。

Yeah, so let's start with the wholesale channel. You guys mentioned how the shifting state regulations has caused a little bit of uncertainty and maybe a decline in confidence among your partners. Just curious how you guys are adjusting your wholesale strategy moving forward. Ronan, you included that as one of your key drivers or growth or key focus at the end of the call. So I just want to know if you could provide any color on how you expect to stabilize that in the back half of the year or maybe target more specific markets where regulation's a little bit more friendly for you guys.

是的，那麼讓我們從批發管道開始。你們提到了國家法規的變化如何導致一些不確定性，甚至可能導致合作夥伴信心下降。只是好奇你們未來將如何調整批發策略。羅南，在通話結束時，您將其列為您的關鍵驅動力、成長或重點之一。所以我只是想知道您是否可以提供一些細節，說明您預計如何在下半年穩定這一局面，或者可能針對對您們監管更友好的更具體的市場。

Yeah. Look, Thomas, I think, a perfect example like Georgia came out, they made a change and sort of -- you have to have an approved Georgia lab. Most of the industry was using labs that weren't necessarily approved at first and it created chaos to make sure that everything was tested by an approved lab and they made some label changes. And so I think there just was this 90-day period where people weren't quite sure and like with the product do they have the right testing lab associated with it, did they have the right updated labels.

是的。聽著，托馬斯，我認為，像喬治亞州這樣的完美例子出現了，他們做出了改變，而且——你必須有一個經批准的喬治亞州實驗室。大多數行業最初使用的實驗室並不一定經過批准，這造成了混亂，以確保所有東西都經過批准的實驗室的測試，並且他們對一些標籤進行了更改。所以我認為在這 90 天的時間裡，人們不太確定產品是否有正確的測試實驗室，是否有正確的更新標籤。

So I think as we're going through this process and getting product back out there, it's spending time with our customers and making sure that our team is on top of the [rags], reacting quickly to provide them the updates that they need so they're confident that they understand the rules and they're starting to sell through as well.

因此，我認為，當我們經歷這個過程並將產品重新推向市場時，我們需要花時間與客戶溝通，確保我們的團隊能夠及時了解情況，並迅速做出反應，為他們提供所需的更新，這樣他們就會確信自己了解規則，並且也開始銷售產品。

But I think as we track, I think there's 26 states or something like that over the last several months that have had proposed or enacted regulation. I think, we're looking at states that I think -- we're trying to make sure we focus on states where we think the opportunity is big enough, but also making sure that we're staying ahead of rules and rags talking with the regulators, working with trade groups, so that we're focused on the states that we think we're going to have the highest opportunity to grow our revenue on a go-forward basis.

但我認為，根據我們的追踪，在過去幾個月裡，有 26 個州或類似的州提出或頒布了法規。我認為，我們正在關注那些我認為機會足夠大的州——我們試圖確保我們專注於那些我們認為機會足夠大的州，同時也確保我們領先於規則和法規，與監管機構交談，與貿易集團合作，以便我們專注於那些我們認為在未來最有可能增加收入的州。

Understood. I appreciate that insight. So just kind of to tie it up better, as you guys look at this, is this -- you had 26 states. You gave Georgia as the example. But in terms of stability as we return to maybe a more normal wholesale trajectory, is that something you see as a second half '25 event or something that we'll have to wait until '26 to really kind of see flesh out?

明白了。我很欣賞這種見解。因此，為了更好地將其聯繫起來，當你們看到這一點時，這是——你們有 26 個州。您以喬治亞州為例。但就穩定性而言，隨著我們恢復到可能更正常的批發軌跡，您是否認為這是 25 年下半年的事件，還是必須等到 26 年才能真正看到具體情況？

Our mission is to grow on a quarterly basis, and so we hope that that continues to accelerate over time. So I guess the further out, I would expect stronger growth, but we're focusing every day on building our wholesale business state by state.

我們的使命是按季度實現成長，因此我們希望隨著時間的推移，這一增長能夠繼續加速。因此，我預計未來會有更強勁的成長，但我們每天都專注於逐州建立我們的批發業務。

Got it. I appreciate that. So moving on to the marketing, you guys discussed the marketing overhaul, contributed to that uptick in SG&A. You also mentioned that there were some signs of improvement with your digital marketing team or digital marketing strategy rather than your marketing team. Just curious if you could elaborate a little bit more maybe some key KPIs you guys are looking at, or any consumer behavior trends that you guys have identified that'll kind of support your confidence in your revised marketing team and strategy.

知道了。我很感激。那麼，談到行銷，你們討論了行銷改革，這對銷售、一般和行政費用的上升做出了貢獻。您也提到，您的數位行銷團隊或數位行銷策略（而不是您的行銷團隊）出現了一些改進的跡象。我只是好奇你們是否可以更詳細地闡述一下，也許是您正在關注的一些關鍵 KPI，或者您已經確定的任何消費者行為趨勢，這些趨勢將在某種程度上增強您對修訂後的行銷團隊和策略的信心。

Sure. I think, look, we spent a lot of time since we added a new leadership in in March. We've sort of changed out certain parties. We've really looked at our customer journey, our pages our copies or videos, everything sort of from the bottoms up. And I think what we've been able to find is sort of since July we've seen a reduction in sort of our [CAC] for our consumer and we're acquiring more new customers for less spend than we were during the third fiscal quarter.

當然。我認為，自從三月我們增加了新的領導以來，我們花費了很多時間。我們已經改變了某些政黨。我們確實從下往上審視了我們的客戶旅程、我們的頁面、我們的副本或影片等一切。我認為，我們發現，自 7 月以來，我們的消費者客戶獲取成本 (CAC) 有所下降，而且與第三財季相比，我們以更少的支出獲得了更多的新客戶。

So I think it's showing promising signs. We've got to be careful to do it in a smart way and not put gas on the fire too quickly because I think it has the risk of being inefficient. So I think we're very cautiously approaching this, but I think we're very encouraged with the level of details and how our team is managing the numbers and the metrics and really focusing on that customer acquisition and retention and specificity that we haven't been over the last few prior quarters.

所以我認為它顯示出了令人鼓舞的跡象。我們必須小心謹慎地採取明智的方式來做這件事，不要火上澆油，因為我認為這有效率低下的風險。所以我認為我們非常謹慎地對待這個問題，但我認為我們對細節水平以及我們的團隊如何管理數字和指標感到非常鼓舞，並且真正關注客戶獲取和保留以及過去幾個季度我們從未關注過的特殊性。

Understood. And then final question for me is on Herbal Oasis. So congrats on expanding it into seven states now with those shipments coming out in August and retail availability in September. That's really exciting for you guys. Just curious what we should be expecting in the back half of the year. Are you guys looking at, continuing kind of what I would describe as a somewhat aggressive expansion strategy for this getting into more markets in more states? Or is it kind of similar to maybe the marketing strategy that you guys need to be prudent about where you're spending, what states you're trying to get into, particularly as regulators -- regulatory agencies on a state level continue to propose legislation that that might present challenges or hurdles to you guys as you enter new markets.

明白了。我的最後一個問題是關於 Herbal Oasis 的。恭喜您已將其擴展到七個州，這些貨物將於 8 月發貨，9 月開始零售。這對你們來說確實令人興奮。只是好奇我們對今年下半年該期待什麼。你們是否正在考慮繼續採取我所描述的有點積極的擴張策略，以進入更多州的更多市場？或者這是否有點類似於行銷策略，你們需要謹慎考慮在哪裡花錢，在哪些州試圖進入，特別是當監管機構——州一級的監管機構不斷提出立法時，這可能會給你們進入新市場帶來挑戰或障礙。

Great question. We're really focused -- yeah, I think we're trying to be opportunistic about the states that we have opportunities in and the retail partnerships that we get access to. We're very much focused on the Southeast and making sure that we can drive the right sell through.

好問題。我們確實很專注——是的，我認為我們正在嘗試抓住機會，抓住我們有機會的州和我們可以獲得的零售合作夥伴關係。我們非常關注東南部地區，並確保我們能夠推動正確的銷售。

And as long as our sell through continues to be robust, will keep us in a good spot. And so our goal is as we're launching into new territory we want to make sure we are careful about focusing on our territory that we're in and being the right partner for both our retailers and distributors, but still taking advantage if there are opportunities to expand to new states.

只要我們的銷售量持續強勁，我們就能保持良好的狀態。因此，我們的目標是，當我們進入新領域時，我們要確保謹慎地專注於我們所在的領域，並成為我們的零售商和分銷商的合適合作夥伴，但如果有機會擴展到新的州，我們仍然會利用它。

Adam Waldo, Lismore Partners LLC.

亞當‧沃爾多 (Adam Waldo)，利斯莫爾合夥有限責任公司 (Lismore Partners LLC)。

Just a couple quick clean up items. You all have seen a $700,000 increase in your inventory so far this fiscal year; $300,000 just over the last quarter on a [length] quarter basis. Can you give us a little more color? Is that highly driven by the Oasis product line? Or are you building inventory in the traditional business as well? And do we think we've now reached kind of a plateau in the inventory build that's going to be needed to support both businesses?

只需進行一些快速清理即可。本財年到目前為止，你們的庫存已經增加了 70 萬美元；按季度計算，上個季度的庫存增加了 30 萬美元。您能給我們多講講嗎？這是由 Oasis 產品線推動的嗎？或者您也在傳統業務中建立庫存？我們是否認為現在庫存建設已經達到了支撐兩家企業所需的水準？

Yeah, good [question]. I think we alluded -- I guess there's two parts to that answer. I think the last quarter we highlighted, we ran into a little bit of trouble early in the second quarter because we ran our inventory down a little too low and we're out of stock of some of our key products, so we did boost inventory early in the quarter to make sure that we maintain sort of the right level stock for our core [SKUs].

是的，很好[問題]。我想我們已經提到過——我想這個答案有兩個部分。我認為上個季度我們強調過，我們在第二季度初遇到了一些麻煩，因為我們的庫存太低了，一些關鍵產品缺貨，所以我們在本季度初確實增加了庫存，以確保我們的核心產品保持適當的庫存水平[SKU]。

And then more recently, we have boosted our Oasis inventory in anticipation of some of these products or some of these regional launches. So I would say I think we're probably reasonably well positioned for now, but depending on the velocity of growth, I think it could require some minor inventory investment.

最近，我們增加了 Oasis 庫存，以期推出其中一些產品或在某些地區推出這些產品。所以我想說，我認為我們現在可能處於相當有利的位置，但根據成長速度，我認為可能需要一些小額的庫存投資。

Okay. And then final thing for me is just as it relates to the Herbal Oasis pipeline, while Thomas was asking his questions, I finished skimming through the 10-Q that you just filed this afternoon, and I didn't see any mention of that business in terms of breaking it out in any kind of segment reporting having crossed the materiality threshold.

好的。對我來說，最後一件事是關於 Herbal Oasis 管道，當托馬斯提出問題時，我瀏覽了您今天下午提交的 10-Q 表，我沒有看到任何關於該業務的提及，也沒有看到任何關於該業務的細分報告已跨越重要性閾值。

Last quarter, Ronan, you said you hoped it would cross the materiality threshold in the current quarter, i.e., fiscal fourth quarter of '25. Do you still expect it will cross the materiality threshold in the current quarter?

羅南，上個季度，您說希望它能在本季度，即 25 財年第四季度，突破實質門檻。您是否仍預計它會在本季跨越實質門檻？

I guess I'm going to have to wait and see. I hate not to answer, Adam, but I want to just be careful. I don't get out of my skis.

我想我得拭目以待了。亞當，我不想不回答，但我只是想小心一點。我沒有離開我的滑雪板。

Okay, fair. So unclear in the current quarter whether we'll hit the materiality threshold. If we don't, will you start to provide some additional disclosure on it anyway in your financial reporting, with the fiscal fourth-quarter report in November? Or might it be until fiscal 2026 before we get a look at that segment or that business's economics?

好的，公平。因此，尚不清楚本季我們是否會達到實質門檻。如果我們不這樣做，您是否會在 11 月的第四季財務報告中開始對此進行一些額外的揭露？或者可能要到 2026 財年我們才能了解該細分市場或該業務的經濟狀況？

Look, I think we'll probably make that determination closer to our next filing. And I think just want to make sure that once we start reporting, we're required to maintain reporting, so I think we want to make sure we feel we're in a good position to provide strong regular KPIs [wrap] around that at the time.

聽著，我想我們可能會在下次提交申請時做出這項決定。我認為我們只是想確保一旦我們開始報告，我們就必須保持報告，所以我認為我們要確保我們處於有利位置，能夠在當時提供強有力的常規 KPI。

Thank you. This concludes our question-and-answer session. I would now like to turn the conference back over to Ronan Kennedy for closing remarks.

謝謝。我們的問答環節到此結束。現在我想將會議交還給羅南·肯尼迪，請他致閉幕詞。

Thank you again, dear shareholders, for support and everyone for attending today's call. We look forward to our next earning call in December. Thank you.

再次感謝各位股東的支持以及大家參加今天的電話會議。我們期待 12 月的下一次財報電話會議。謝謝。

Thank you. This brings to a close today's conference call. You may disconnect your lines. Thank you for participating and have a pleasant day.

謝謝。今天的電話會議到此結束。您可以斷開線路。感謝您的參與並祝您有個愉快的一天。