YCBDMEDIUM SIGNALOPERATIONAL10-K

YCBD has expanded its product portfolio to include hemp-derived Delta-9 THC products while showing improved operational performance with reduced losses and substantially lower liabilities.

The company is diversifying beyond traditional CBD products into THC offerings where legally permitted, potentially accessing new market segments and revenue streams. The operational improvements and significant debt reduction suggest better financial management, though the business remains loss-making and faces continued NYSE American listing compliance risks.

Comparing 2025-12-19 vs 2024-12-18View on EDGAR →
FINANCIAL ANALYSIS

YCBD demonstrated meaningful operational improvement with net losses narrowing from $3.7M to $2.0M and operating losses similarly reduced. The balance sheet strengthened considerably with total liabilities dropping 63% from $8.6M to $3.2M, while working capital components like inventory and accounts receivable grew modestly. Interest expense declined dramatically, reflecting the company's deleveraging efforts and improved capital structure.

FINANCIAL STATEMENT CHANGES
Interest Expense
P&L
-99.8%
$501K955

Interest expense declined — debt repayment or refinancing at lower rates improving earnings quality.

Total Liabilities
Balance Sheet
-62.9%
$8.6M$3.2M

Liabilities reduced 62.9% — deleveraging improves balance sheet strength and financial flexibility.

Current Liabilities
Balance Sheet
-62.9%
$8.6M$3.2M

Current liabilities reduced — improved short-term financial position and working capital health.

Net Income
P&L
+44.8%
-$3.7M-$2.0M

Net income grew 44.8% — bottom-line growth signals improving overall business health.

Operating Income
P&L
+34.8%
-$3.3M-$2.2M

Operating leverage kicking in — revenue growth outpacing cost growth, a hallmark of scaling businesses.

Accounts Receivable
Balance Sheet
+26.5%
$622K$786K

Receivables grew 26.5% — monitor days sales outstanding for collection efficiency.

Inventory
Balance Sheet
+16.7%
$2.5M$2.9M

Inventory built 16.7% — monitor whether demand supports this build or if write-downs may follow.

LANGUAGE CHANGES
NEW — 2025-12-19
PRIOR — 2024-12-18
ADDED
false --09-30 FY 2025 To mitigate the threat to our business, we take a comprehensive approach to cybersecurity risk management.
9,419,410 shares of common stock are issued and outstanding as of December 16, 2025.
In addition, "fiscal 2024" refers to the year ended September 30, 2024, and fiscal 2025 refers to the year ended September 30, 2025.
material risks associated with the ownership of our securities, including; the risks for failing to comply with the continued listing standards of the NYSE American; availability of sufficient liquidity; the designations, rights and preferences of our Series B Convertible Preferred Stock; and dilution upon the issuance of shares of common stock underlying outstanding warrants, options and the Series B Convertible Preferred Stock.
is a consumer wellness company focused on the development, manufacturing, marketing, and sale of supplement brands powered by natural compounds.
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REMOVED
5,539,124 shares of common stock are issued and outstanding as of December 16, 2024.
In addition, "fiscal 2023" refers to the year ended September 30, 2023, and fiscal 2024 refers to the year ended September 30, 2024.
DESCRIPTION OF BUSINESS Our Company General We own and operate the nationally recognized CBD (cannabidiol) brands cbdMD and Paw CBD as well as our ATRx Labs brand of functional mushrooms.
We believe that we are an industry leader producing and distributing dietary supplements and topical products, with an initial focus on hemp derived products including broad spectrum CBD products and full spectrum CBD products.
Our mission is to identify and formulate products with novel, compelling ingredients and blends to enhance our customer s overall quality of life while bringing education, awareness and accessibility of high quality and effective products to all.
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