cbdMD, Inc. (YCBD): History, Ownership, Mission, How It Works & Makes Money

Ever wondered about the story behind cbdMD, Inc. (YCBD), one of the leading names in the CBD industry? This article dives into the company's history, ownership, mission, and how it operates, providing a comprehensive overview of its role in today's market. With the company achieving $5.1 million in revenue and its first-ever positive non-GAAP Adjusted EBITDA of $214,000 for Q1 FY2025, what strategies have driven its success and what challenges does it still face?

From its comprehensive line of THC-free CBD products to its innovative approach to pet wellness and functional mushrooms, cbdMD has carved a unique space in the health and wellness sector. How does cbdMD plan to navigate the competitive landscape and maintain its position as a trusted CBD brand, especially with the need to increase its net book value of equity from $2.0 million to at least $4 million by December 2025 to maintain its NYSE American listing?

cbdMD, Inc. (YCBD) History

cbdMD's Founding Timeline

Year established

cbdMD, Inc. was established in 2014.

Original location

The company is headquartered in Charlotte, North Carolina.

Founding team members

While specific founding team members are not explicitly detailed in the provided context, the company's leadership and key figures have been instrumental in its development. As of 2017, Martin A. Sumichrast took the helm as Chairman and Co-Chief Executive Officer, steering the company's strategic direction.

Initial capital/funding

Information regarding the precise initial capital or funding for cbdMD's establishment is not available in the provided search results.

cbdMD's Evolution Milestones

cbdMD's Transformative Moments

cbdMD has undergone several transformative moments that have significantly shaped its trajectory:

• Strategic Leadership Transition: The appointment of Martin A. Sumichrast as Chairman and Co-Chief Executive Officer in 2017 was a crucial turning point, setting the stage for strategic realignment and growth initiatives.
• Brand Consolidation: Acquiring the 'cbdMD' trademark in 2018 was pivotal in establishing a strong, recognizable brand identity in a competitive market.
• Public Listing: The listing on the NYSE American in 2019 elevated the company's profile, providing access to broader investment and enhancing corporate credibility.
• Product Diversification: The launch of Paw CBD in 2020 demonstrated the company's ability to innovate and capture new market segments, specifically targeting the growing pet wellness industry.
• Navigating Regulatory Landscape: cbdMD has continually adapted to the evolving regulatory landscape, ensuring compliance and maintaining consumer trust.

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cbdMD, Inc. (YCBD) Ownership Structure

Understanding the ownership structure of cbdMD, Inc. (YCBD) provides insights into who controls the company and how it's governed. The following sections clarify the company's public status, detail the ownership percentages, and introduce the leadership team.

cbdMD, Inc.'s Current Status

cbdMD, Inc. is a publicly traded company, which means its shares are available for purchase by the general public on stock exchanges. As a publicly traded entity, it is subject to regulatory oversight and reporting requirements, providing a level of transparency to investors.

cbdMD, Inc.'s Ownership Breakdown

Understanding the ownership breakdown of a publicly traded company like cbdMD, Inc. involves identifying major shareholders and their respective stakes. These shareholders can include institutional investors, individual investors, and company insiders. Please note that ownership percentages can fluctuate due to trading activity.

cbdMD, Inc.'s Leadership

The leadership team is crucial for guiding the strategic direction and operational execution of cbdMD, Inc. Key members of the leadership team typically include:

• Martin A. Sumichrast: Chairman & Chief Executive Officer
• Ronan Kennedy: President & Chief Financial Officer
• Dr. Sibyl Swift: Sr. VP of Science & Innovation

For more insights into the company's goals and values, explore the Mission Statement, Vision, & Core Values of cbdMD, Inc. (YCBD).

cbdMD, Inc. (YCBD) Mission and Values

cbdMD, Inc. aims to improve the overall quality of life by offering accessible, high-quality hemp-derived products while maintaining transparency and sustainability. The company is committed to innovation, customer satisfaction, and ethical practices.

cbdMD, Inc.'s Core Purpose

Official mission statement

While an exact official mission statement for cbdMD, Inc. isn't available in the provided search results, we can infer their core mission from their business practices and public statements. cbdMD seems dedicated to:

• Providing high-quality, THC-free CBD products.
• Ensuring transparency through rigorous testing and clear labeling.
• Promoting accessibility by offering a wide range of products and price points.
• Committing to innovation in product development and sustainable practices.

Vision statement

Similarly, a specific vision statement isn't provided in the search results. However, based on available information, cbdMD's vision appears to be:

• To be a leading and trusted brand in the CBD industry.
• To expand the understanding and acceptance of CBD's potential benefits.
• To improve the quality of life for their customers through innovative CBD solutions.
• To set the standard for quality and transparency in the CBD market.

Company slogan/tagline

The search results do not explicitly mention a current official slogan or tagline for cbdMD. It's worth noting that taglines can change over time as a company's marketing strategies evolve.

Read more about cbdMD: Exploring cbdMD, Inc. (YCBD) Investor Profile: Who’s Buying and Why?

cbdMD, Inc. (YCBD) How It Works

cbdMD, Inc. operates by developing, manufacturing, marketing, and distributing a comprehensive range of cannabidiol (CBD) products, focusing on providing accessible health and wellness solutions to consumers and pets.

cbdMD's Product/Service Portfolio

cbdMD's Operational Framework

cbdMD's operational framework is built around several key processes:

• Product Development and Manufacturing: cbdMD formulates and manufactures its CBD products, ensuring quality control from raw material sourcing to finished goods.
• Marketing and Sales: The company employs a multi-channel marketing strategy, including online sales, partnerships with retailers, and targeted advertising campaigns to reach a broad customer base.
• Distribution: cbdMD distributes its products through its e-commerce platform and a network of retail partners, ensuring wide availability and efficient delivery.
• Customer Service: Providing customer support and education to enhance customer satisfaction and build brand loyalty.

cbdMD's Strategic Advantages

cbdMD maintains several strategic advantages in the competitive CBD market:

• Brand Recognition: cbdMD has established a strong brand presence through consistent marketing efforts and high-quality products.
• Product Diversification: A wide range of product offerings caters to various consumer needs and preferences.
• Quality Assurance: Focus on quality control and third-party testing to ensure product safety and efficacy.
• Strategic Partnerships: Collaborations with retailers and influencers to expand market reach and enhance brand credibility.

To gain more in-depth insights into the company's financial stability and performance, consider exploring this resource: Breaking Down cbdMD, Inc. (YCBD) Financial Health: Key Insights for Investors

cbdMD, Inc. (YCBD) How It Makes Money

cbdMD, Inc. primarily generates revenue through the sale of cannabidiol (CBD) products. These products span various categories, including tinctures, topicals, capsules, and pet products, catering to a diverse customer base seeking wellness solutions.

cbdMD, Inc.'s Revenue Breakdown

As the latest complete fiscal year revenue breakdown is not available as of April 2025, the following data represents the most recent insights based on available information.

cbdMD, Inc.'s Business Economics

The business economics of cbdMD, Inc. are influenced by several key factors:

• Pricing Strategy: cbdMD employs a competitive pricing strategy, balancing affordability with premium product positioning. The average price for tinctures ranges from $30 to $150, depending on concentration and size.
• Cost of Goods Sold (COGS): Managing the cost of raw materials (primarily hemp-derived CBD) and manufacturing is crucial. Economies of scale and efficient supply chain management help in reducing COGS.
• Operating Expenses: Significant investments in marketing and sales are necessary to maintain brand visibility and drive customer acquisition. Operational efficiency in administrative and R&D functions also impacts profitability.
• Market Dynamics: The overall demand for CBD products, regulatory changes, and competition within the CBD market significantly affect cbdMD's revenue and profitability.

cbdMD, Inc.'s Financial Performance

Analyzing the financial performance of cbdMD, Inc. involves looking at key indicators:

• Revenue Growth: Monitoring year-over-year revenue growth indicates the company's ability to expand its market presence and increase sales. While specific figures for 2024 aren't available, historical trends show a fluctuating growth pattern influenced by market conditions and strategic initiatives.
• Gross Margin: The gross margin, calculated as (Revenue - COGS) / Revenue, reflects the efficiency of production and pricing strategies. A healthy gross margin is essential for covering operating expenses and achieving profitability.
• Operating Income: Operating income, which is gross profit minus operating expenses, shows the profitability of the core business operations. This metric indicates how well the company manages its expenses relative to its revenue.
• Net Income: Net income, or the bottom line, represents the overall profitability of the company after all expenses, including taxes and interest, are accounted for.
• Cash Flow: Analyzing cash flow from operations, investing, and financing activities provides insights into the company's liquidity and financial stability. Positive cash flow from operations is particularly important for sustainable growth.

For more insights into the company's values, see: Mission Statement, Vision, & Core Values of cbdMD, Inc. (YCBD).

cbdMD, Inc. (YCBD) Market Position & Future Outlook

The company faces a challenging market, but is strategically positioned to capitalize on emerging opportunities within the evolving landscape. For more detailed financial insights, see: Breaking Down cbdMD, Inc. (YCBD) Financial Health: Key Insights for Investors.

Competitive Landscape

Opportunities & Challenges

Industry Position

The company holds a notable position within the competitive industry, focusing on product innovation and strategic market expansion.

• The company aims to strengthen its market presence through:
  • Strategic partnerships.
  • Targeted marketing initiatives.
• Continued investment in research and development to create differentiated product offerings.
• Expanding distribution channels to reach a broader customer base.