CV Sciences Inc Q1 Revenue Stagnates YoY, Here Is What You Need To Know - CV Sciences (OTC:CVSI)

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CV Sciences, Inc. (OTCQB:CVSI) released its financial results today for the first quarter ended March 31, 2023, revealing revenues of $4.1 million for the first quarter of 2023 compared to $4.4 million for the first quarter of 2022 and a sequential increase of 7%.

Q1 2023 Financial Results

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Generated revenue of $4.1 million for the first quarter of 2023 compared to $4.4 million for the first quarter of 2022 and a sequential increase of 7% from $3.9 million in the fourth quarter of 2022.
Recognized gross margin of 43.0% for the first quarter of 2023 compared to 26.0% for the first quarter of 2022 and a sequential improvement from 40.4% for the fourth quarter of 2022;
Cash balance of $0.7 million at quarter end compared to $0.6 million at the end of 2022;
Generated cash flow from operations of $1.0 million in the first quarter of 2023 compared to cash used in operations of $0.4 million in the first quarter of 2022;

"Our first quarter gross margins exceeded our expectations and we are encouraged by improvements we have made to reduce operating expense,” said Joseph Dowling, CEO of CV Sciences. “(...) We have strengthened our balance sheet and continue to operate cost-efficiently and plan to continue participating in the consolidation and brand contraction of the CBD market as we execute our key strategic initiatives, and leverage core competitive advantages to drive long-term growth and shareholder value."

Operating Results - First Quarter 2023 Compared To First Quarter 2022

Sales for the first quarter of 2023 were $4.1 million, a 7% decrease from $4.4 million in the first quarter of 2022.
The decline in sales was primarily attributed to a 13% decrease in the number of units sold during the first quarter of 2023, although this was partially offset by increases in the average sales price per unit in the second half of 2022.
The company achieved an operating income of $5.8 million in the first quarter of 2023, compared to an operating loss of $1.5 million in the first quarter of 2022.
The operating income improvement was mainly due to the reversal of accrued payroll tax amounting to $6.2 million.
The company had a negative adjusted EBITDA of $0.2 million in the first quarter of 2023, compared to a negative adjusted EBITDA of $2.5 million in the first quarter of 2022.

CV Sciences FY22 Revenue Declines 19% To $16.2M

Photo: Courtesy Of Giorgio Trovato On Unsplash