Business Context and Reporting Period
This Form 8-K filing by cbdMD, Inc. (YCBD) is dated August 20, 2024, with the report signed on August 26, 2024. The filing addresses the Company's status regarding its listing on the NYSE American following a previous notice of non-compliance with continued listing standards.
Key Financial Metrics
The filing references specific financial data from the Company's most recent fiscal period to explain the listing issue:
- Stockholders' Equity: A deficit of $3.1 million as of March 31, 2024.
- Profitability: The Company reported losses from continuing operations and/or net losses in three of its four most recent fiscal years ended September 30, 2023.
- Compliance Threshold: NYSE American Section 1003(a)(ii) requires stockholders' equity of at least $4 million for companies with such loss histories.
The filing text does not provide current revenue, cash flow, margin, or debt figures for the period ending August 2024.
Material Changes and Listing Status
On August 20, 2024, the NYSE American accepted the Company's plan to regain compliance with listing standards. This action grants the Company a plan period extending through December 5, 2025. During this period, the Company is subject to quarterly reviews to assess progress. Failure to regain compliance by the deadline or to make sufficient progress may result in delisting proceedings. The Company's common and preferred stock will remain listed on the NYSE American during this extension.
Outlook, Risks, and Management Commentary
Management explicitly states that the Company can provide no assurances that it will make satisfactory progress, regain compliance by the December 5, 2025 deadline, or that future events will not adversely affect its ability to comply. The filing notes that the receipt of the notice does not affect the Company's business operations or SEC reporting requirements. A press release detailing this acceptance was issued on August 26, 2024.
Key Facts for Investor Verification
- Verify the specific details of the compliance plan accepted by the NYSE American to determine the feasibility of reaching the $4 million equity threshold.
- Monitor quarterly review outcomes to assess if the Company is making sufficient progress toward compliance.
- Review the Company's most recent 10-Q or 10-K filings for updated revenue, cash flow, and debt metrics not included in this 8-K.
- Confirm the trading status of both Common Stock (YCBD) and 8% Series A Cumulative Convertible Preferred Stock (YCBD PR A) on the NYSE American.