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cbdMD (YCBD)

Participants
Mark Elliott CFO
Martin Sumichrast CEO
William Sutherland The Benchmark Company
Paul Cooney Joseph Gunnar
Steven Emerson Emerson Investment Group
Scott Fortune Roth Capital Partners
Call transcript
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Operator

Good afternoon. Welcome to the cbdMD Fourth Quarter and Fiscal 2019 Earnings Call and Update. This afternoon, the company issued a press release that provided an overview of its fourth quarter and full fiscal year results which followed the filing of its annual report on Form 10-K. Today's conference is being recorded and will be available online at cbdmd.com in accordance with cbdMD's retention policies. [Operator Instructions].

would the turn company's I to conference time, Elliott, Mark Chief this like the to over At Financial Officer. ahead. go please Mark,

Mark Elliott

Thanks, Conference all and you Jess, cbdMD and Quarter Fourth for Fiscal Call. joining Earnings XXXX thank

On Co-CEO, Sumichrast. and our Marty today, the we call have Chairman also

business, quarterly Following safe and results. our annual Marty provide a an overview will financial the I'll provide summary statement, of harbor then of the

risks may for expectations, questions. various Following our the materially the on the filings and We'd and the Act to Securities the or fiscal with www.sec.com. that the that, the statements subject differ from in cautions be viewed cause www.cbdmd.com report Form we'll statements XXXX including SEC's that future open Litigation these cbdMD company's XX, SEC remind of safe SEC, under with September are on forward-looking actual remarks website all indicated, those constitute to call about of is XX-K harbor plans at that up described on prospects everyone at Reform purposes to filed website and the today, risks XXXX. forward-looking year for like which for of provisions annual Private can company's other uncertainties results our ended

made events reflect after does intend to to not that speak Any only of December cbdMD and forward-looking date. as circumstances on statements today's call statements this conference would Wednesday, update forward-looking XXXX, of today's XX, date, or these occur any

Marty the With that, Marty? to Sumichrast. like call Chairman over Co-CEO, turn to I'd and

Martin Sumichrast

afternoon. call listening who's in to the thank Mark, thanks you, and this everyone on

the put America, accomplishments last CBD. our we in this facilities. U.S. part plan competitors have over a CBD than employees, and let's several our been advanced and I full-scale warehousing important XXX has year, history SKUs, We since of of leading now perspective. XXX departments, industry X so X is that XX envision Building be infrastructure cbdMD over get just infrastructure minute the most years. next recent our quarter fiscal the we in XXXX, the and built into an significant in growth with In take Before results in built of brands the our an review more CBD that can some distribution from manufacturing, Paw

our talk let's Now about results.

Our overall $XX.X September net sales. of $X.X ended million September our were for fiscal net and sales e-commerce XX% sales e-commerce sales, for the million or total our our quarter XX% total the were fiscal of or XXXX year XXXX,

and athletic as affiliate use to to marketing, and sales continue online experience gorilla social sales very continue sponsorships growth our remain metrics strong programs. influencer the rapid We we media, drive of through

XXX,XXX As over of XX, subscribers. e-commerce November had active and we

throughout very rate increased Our customer average and now the our online strong exceeds repeat reorder $XXX year. has These metrics. are order online

On side our our of amount we're retail experiencing the stores carry of in also the currently brick-and-mortar business, brand. growing tremendous who success

very is the were fiscal the September This for Our retail since February Bill. million $X.X September year our wholesale ended for And of Farm all passage generated $X.X customer of brick-and-mortar XX%. after or almost XXXX, of were or impressive million XXXX quarter the since this sales XXXX and were year, sales fiscal XX%.

and reach climbing. over Our retail is X,XXX retail doors now

We have started as to add travel national well as retailers retailers.

a and is XX and our nations. Mexico. South including our products Ireland United of are Kingdom, Kingdom, Africa, in in customers Rica, international in currently Belize Ireland, as the providing EU, reselling partnership products markets. this wholesale Costa month, Peru, wholesalers And distribution with Bermuda, markets, for several European have key the our demand Guam, Guatemala, international who Ultra experienced even created Our Sports other We've United

World include Nitro Surf the have and Rallycross and and, Fitness, The the CBD we partnerships Life industry League, built first-in-class MMA. Circus, of Bellator The course, Supercross, in influencer are ARX Time sponsorship BigX,

names reach by some enhanced podcast Our social biggest of the including that include our Barstool relationships podcasts, Sports. in is media

champions Our and Team Ryan ambassadors and and CBD MMA Jennings Cross Masvidal like to to Cormier, Daniel Sheckler, be brand. few, Athletes, including Rally Block superstars PGA just Golfer Jorge Olympians Ken Kerri Bubba our Jones, continue a professional Watson, Lolo skateboarder, for name tremendous Walsh

have that will significant partners XXXX, more believe convert assets, built XXXX and brands. these customers to help we've momentum our of Now CBD of activating accelerate growth We market Paw additional ultimately, in all CBD, our share, and assembled the be this more in will ambassadors. all we'll of and campaigns brand-building with we which result in

brand also strategy CBD of XX saying, to market and Our and look move ranked and as well the as any industry, leading the November, research CBD CBD by industry. Group, "Trend in also brand unaided satisfaction should survey overall cbdMD the newly part of to Skincare/Beauty, customer leading not only top Group in legal the users, firms awareness in than a creativity the one brands. of efforts using more And highest brand cbdMD's to Topicals cbdMD, X,XXX emulate CBD Brightfield categories, Brightfield a watch of highest the followers conducted July, brands top released named in consumer forward." the In the domestic in have predictive for XX but analytics CBD received two recognition the in in booming named of terms

to cbdMD addition, XX, X September voice In the entire a industry ended CBD according and the has monitoring throughout intelligence highest the XXXX. months for of media Meltwater, share company

for of products store aids XXXX. product pets line, channels SKUs. CBD Business top of Paw retail dog also includes online goal and CBD Pet big-box brand CBD in Paw XX as to has already via the Calming being growing named is with in currently Turkey pet months calming that the market, unique cats received a only comprehensive dogs, independent fiscal the pet early www.cbd.com, deployment pet CBD, honors is at horses And Chews flagship and Paw Magazine CBD The despite CBD's Soft few consists top sold offering Paw strong. category. for product line a Our of CBD

grooming Our the be CBD and goal retail clinics Paw end X,XXX salons XXXX. veterinary stores, of over calendar is by for to in

noted, we market one base important industry I've believe the brands for most remain XXXX. of the growing As are our top our fiscal share, and CBD goals our to continuing in revenue expanding

are We fact extremely is revenue, reporting another proud of the trend we record this that of continue. quarter believe cbdMD and will

million operations, on XX, to we potential high on guidance between XX% focus We from fiscal can and trajectory XXXX. fiscal revenue in While $XX retail new mass are of XXXX is our XX% which significantly the we're of October adjusting the believe we based relationships, positive year still are sales achieve $XX and on e-commerce addition XXX% focusing we we we ending flow, have to sales from now we increase in retail flow This approximately include achieve cash to This cash XXXX. invested by any a attaining of many guidance a anticipate of which net brick-and-mortar. begin But guidance as developing. significant million not September for process does XXXX. the growth,

me things a regulatory Mark, And update. let to brief over before I turn provide

of a significant our testing and our amount We quality ensure are R&D and safety to spending budget products. on of

raw and Bill a We have to ensure testing quality dedicated materials with the Farm goods use. purity XXXX highest farms established hemp chain of batch panel for ensure are a certified to facilities quality we compliant ensure potency. full as and our the as finished tested extraction by to laboratory supply we the Every label with of ISO meet and claims well secure integrity

with on are pursuant products in and seek currently per to conduct clinical XXXX. initiate and In conducted our to third-party submitting formulations conducting before new ensure certification and continued of applications All to testing and GRAS the also for claims further manufactured substantiation is the GMP trials are we'll scheduled GMP of facility NDI multiple FDA. in testing to year plan our and options we with upgrade third-party formulations, to our safety the compliance regards audits this both we end to We XXXX, of an are on FDA. anticipation manufacturing certifications a and GMP be on year. Product to Safety NSF GMP exploring standards, times intend

which the pet industry obtaining placement. for certification, in retailers also product large in process require of the are our NASC We many

most turn to over to call the me Go Mark results. our financial ahead, let recent review Now Mark.

Mark Elliott

Cure Thank you, business our discontinued our accounted have focused our now this included XX, as Based as we we last XX, some statements was only financial comparatives reflective completely and being I Marty. our are business involvement comparatives efforts however, began This business in therefore, will, Effective to in current year them indicate operations for With accomplished ceased legacy Form XX-K. December our in business as and of progress the on acquisition has the following operations appropriate. our of what of CBD to September XXXX, have XXXX. not the have business the operations, CBD as on provide Development. case,

On our from ended XX, net basis, third for XX, quarter the million, approximately XX% fourth approximately quarter our September a were ended sales was GAAP which total up June XXXX. $X.X

September ended CBD X we reflective months of over XXXX, had year $XX.X of just sales approximately of XX, the For sales. million, is net which

million million $X.X XXXX. sales the cbdMD Cure approximately on for include financials don't cbdMD December Based comparative Cure the we in in year-over-year with ended XXX% Based XX, in XXX% September up the would based Development prior year XX, accordance fourth and brand for of increases the quarter XXXX our XXXX, reviewed, to which acquisition we and This financials for sales quarter Development unaudited in While sales year. reflect ended generated for the our the from GAAP, $X.X have September the brand

$X.X gross $XXX,XXX quarter or were discounts. approximately allowances sales the for total with fourth Our of million

were -- and with Our discounts. million, year of for allowances the approximately fiscal for gross sales XXXX total $XX.X $X.X million year

sales related slight the in sales. quarter fourth fourth a wholesale for profit relabeling process increase XX.X% a at as we came an year. as through the XX.X% as net The to in quarter is primarily for percentage Gross went well our of and in the decrease

our a XX% We between XX% net gross and forward. percentage as of profit sales expect maintain to going

media, believe alluded, the and the the the XXXX creating approximately of as results being being events, had but key brands. is shows, we recognized part were all of This is We accounting XXX We our and of grew customer expenses laboratory, expenses includes, marketing, million as operating departments under $X.X from advertising. limited service wages $X as our marketing not and people of is building one of this areas. now accomplished. this Again, warehouse, And of major million. all part as Marty strategy technology, to, brand social from had sponsorships Our employees, strategy in XX we over sales, in $X.X up visibility. in fiscal the trade top and million follows: in all a indicate staffed and brand to building the approximately included

of $X.X commissions multiple we Affiliate built our for consumers. reaching channels million as

Our insurance Professional merchant processed $X.X accounting, as million providers growing third-party as services accounting exposure and expanding predominantly in we internal for online. approximately coverages legal our transactions, filings includes million and related We rapidly. while our merger services growth operations of Development the fees CBD of additional many we to our related were increased infrastructure legal Cure $X.X built $X.X industry. and million, we and as risk our CBD insurance Based which sales had business SEC use the of approximately and fees and

moved laboratory well We the growth address had to expense rent to million. had we manufacturing. our compensation for and And $XXX,XXX $X.X stock approximately also a as facilities office in expense as options issued noncash accounted new expense stock as approximately warehouse staff increase corporate related we upgraded about our $XXX,XXX. to of support Travel of into

by which the Cure a of of liability to And during XXXX quarter. other quarter, for noncash created income includes contingent contingent other Our related revalued large Based acquisition change. million, the December value liability the the declined end This is and fourth expense amount. Development. income at that The each is $XX

change liability from liability, valuation For created to Again, the price stock was charge. contingent the which of primarily noncash year the the created expense. the of XXXX, is result charge The period $XX.X in in our common fiscal noncash a this September of a other in increase ended XX, this market the changes contingent a million period.

to attributed cash and also We obviously capital XX, accounting going will forward. and million working that discontinued impairments, $XX had in for $X.X million $X.X XX, approximately write-downs a be $X.X million cash businesses. capital approximately of million in on This operations September of of September million compared equivalents $XX.X and cash to XXXX. not Those We at XXXX. is recorded of loss working as hand fiscal is of XXXX losses those the and

XX, September current million growth our A increase year the million. in was in business. XXXX, of for assets of as our in of increased Our driver from $XX.X current assets XXXX, invested as inventory the to XX.X% the of September the XX, we primary growth $X.X

offering we in In Convertible our proceeds Series did X.X% not reflected $X XXXX, of October Preferred complete Stock Cumulative A for of year-end is an million, financials. initial gross our which

the The long-term is As $X $X.X of deferred company XXXX, of of for XX, equipment on manufacturing payable. which were company's financing liabilities of total which facility. September approximately and accounts debt, rent million made is $XXX,XXX million, up has current our

to With turn now that, call I'd to Marty. like back over the

Martin Sumichrast

Mark. Thanks,

in and everyone we and see, the just about we're XXXX what we're we've can finished, And made shareholders just we're in on progress tremendous about to quarter year. in quarter As beyond. X we can our excited deliver the excited

the and open questions line with up for I'd So like that, answers. to

Operator

Bill [Operator Company. first Instructions]. to at go Benchmark Sutherland We'll

William Sutherland

acquisition you sense influencers coming can't a isolate well, know The that your -- that be now asset the cost assets? marketing very number -- you customer this other is it you down it's will as costs. base and of built really up but I

Martin Sumichrast

Yes.

cash down, next flow year the talking October reduced fiscal come that the showing, into of flow second, into said, that our as year. I year, We've a overall decline. be next the those And quarter, start next we'll to of quarter show is third, the end in costs positive. to we're coming calendar quarter Starting will going first we calendar we're push year, be that think that model, we of spend fiscal as down. at fourth the of X and positive, cash about

see know, And we And invest, we're activating what costs assets. those XXXX. as on heavily focusing did now a question So coming and We these down. deploying you of for acquiring into it's that's them all them.

William Sutherland

based came line a revenue allowance doing Is sales the lot. the down just move just noticed on if I right, going mix? quarter, to my that I'm And in math around

Martin Sumichrast

run We little to constantly bit a next consistent promotions. going what We're quarter-to-quarter. in Yes, we're into obviously, out it market the does. little a trying, as to year. that testing around more that's we make different go programs, works, so from different bounce But

William Sutherland

slightly, clearly, quite maybe just the now much, not understand, just this guidance us but And having didn't year. then, in Marty, about I revenue pulled it think I'm that curious. I for didn't hear fiscal you're It's

have it cash related more on it's said this just You feet dragging the FDA -- focus so to with to a related to flow, or its we forth? backdrop is and

Martin Sumichrast

under to we consensus everything of space it's couple general No, -- you've a has market done a of growth. the -- is any We be even to fact don't so don't as really going think some ago, better want in unheard to it we've of The think we the And which people up give we've space. comparative the as done, incredible you despite changed space you cannabis I capital, And there's to time get was that know, at in cost. or to our to customers. stewards consensus peers million, heard, this get share been out to look, growth get profitability quicker. we've and the $XX quarters know, extent everything in high

new on partners We're And lever going We're continue spends. and up activating back to to that, we push on have the so as to just of we have. we're going some pick going not to many the probably pulled but athletes. focus on what

next $XX of the very going I still million. months. $XX million revenue we over are So think, And -- to anticipate maintain, a we burn healthy between and -- and but growth we've reduced that the X we

get. does smaller we business And our not remember, include deals that channel. Bill, retail mass retail we the built on Again, could any this

bigger out XXX the the everything selling -- rest X,XXX of farm is done companies under we then are largest have okay? the exact some the plays, kind and We've are opposite, on So bet that. there have the And doors. retail to XXX and I mean, have smaller. we mass we've one about doors over called

and strong which have big to platform not on the continued the e-commerce not pay beholden These don't to they upfront, retailers, any groups we it build we're and kind of is We're that. So building a building a give terms on nice. retail on we're channel. company in and

have trauma bad don't about So we don't the And to retailer of a getting expense. debt any returns. worry we and have big product

So that's right at that's where the think we're it. exceed We and guidance. But doable. new now. think And it's obviously, always, we to it's strong, looking very we're as

William Sutherland

And Maybe just give there? interesting what us most see on that, I channel, opened Fitness. some up Life impressive. thought No, can you the it's more was that you the color you

Martin Sumichrast

Yes.

Time Life facilities. in with Life pure Time and all be deal their the marketing So done PR. were -- We was to originally, fitness

met because that largest just into one their our of use is their of spas, and They said, and in many Life we it? where very of their us code so in to buy into early could to of facilities them. start in Time get of You that what we're we Where we now their the was happened later." and buy facilities areas. are product. sooner process, spa the the their training we and hope "Hey, the need cafes, And coupon fitness were a coming all chains you "Hey, they've into next called And into going size buy the members so cbdMD?" products our with chain. to we loading year, But America than North asking, can can We're

think we're it. the it's great enormous. excited to great Time and company, we So They're really great people, brand, a great about is potential with And have. Life relationship

Operator

at Cooney Paul Joseph We Instructions]. next Gunnar. to [Operator move

Paul Cooney

on quarter. Congratulations another growth great

you bit about the expansion? can more talk wondering, little a international Just Marty, maybe

Martin Sumichrast

Paul. Thanks, Yes.

so looking because necessarily it's internationally." ago, in accounts done great because "Look, couple establish partnerships we and different we said products is we've so said, us, with wholesalers and we international really quarters that have relationships for our see starting we then And huge. ship to U.S. to countries. wholesale market us And But the sell what distribute promote overseas. found lot these to of location to just had they that can is expansion what we we're a is weren't ship a of we X -- So and come

in And And countries. we're market big We think a is we international expansion Asian pretty looking the heavily. opportunity significant. trend that already at We couple think the think is international the over a going there. for factor very into you're XXXX, markets. and I We're think opportunity estimates huge in, the XXXX, lot growth in didn't to more our those numbers. see And expansion we

to going as be are expand. bonus those So we numbers

Operator

next Emerson Group. Steve to move We'll Investment Emerson at

Steven Emerson

Congratulations on could quarter? is us give carrying current another how September or us into you great the granularity you on a looked? as quarter. flavor some going give month And Can the acceleration any how

Martin Sumichrast

holiday you we're talk record tell e-commerce to on Well, another side, where having both we this is both about that we we incredible what sides, quarter, Christmas. an period the blown on can I and -- We a excited expect when into we're we up quarter finish away holiday strong sales by just And were we're the just right numbers. now over had going really seeing Thanksgiving. strong --

expecting we're record another So quarter.

mix XX% for up is there We for taking we're A e-commerce, -- from on mix brands be to We're bigger will think we XX% market enormous XXXX the taking concerned, right are the us. think brands. as is continue. are out yes, share. now. we far of that that market target shaping where lot are share -- I that's As year mean, the And an of continue brick-and-mortar. And to we're the smaller

Operator

at [Operator Capital Fortune Instructions]. Roth Scott We'll Partners. move next to

Scott Fortune

a the that, pet. be to can have provide trajectory and know more know that kind that expect percentage I revenues your guys expecting where that's you the in you standpoint? little how a from the I launched but dent trending? in of CBD just on XXXX the in Paw of you're Can color to a revenues, make but we it

Martin Sumichrast

to Scott. now, about we're of for Yes, X% X.X% sales at Right Paw. running

now. important to certification next NASC you can for retailers. we're a year certification, us. I With on the will of The certification, mass working with think, right expect into be that get really that We bunch increase that the

Our end be retail X,XXX goal by calendar in next the Paw of at year. locations was to

it's -- XX% we're not lot I a hope easily a already think is much There's next a XX% we products And of year. think in of -- award and the year. field. And we sort going of well, for our would got in which that see sales amazing. be earlier hit going an that for Paw really greener that, to We competition. in to formulated I that just is the really were to

that's Paw. So on the

$XX brick-and-mortar. counting as XXXX, e-commerce. said, be far I many million on we're looking ramp, As will we're $XX right to that. orders, we're million will large for now at to fiscal on of over as retail mass be And the XX% any fill retail, which The overall slightly balance of not working sort

So get we numbers. exceed those and we hope hope we those -- that

Scott Fortune

Okay. bit And then follow-up. a little of

third on board So it kind guys guidance a FDA did of flatness? whole flatness where then you very include the I you your is the not I of seasonal know kind grow, any color from the kind FDA? of ramp in indications seems And a industry, up again. of but coming like seasonal from Any from sense general, in is take the then here. it does why And flat. Kind quarter-over-quarter. quarter

Martin Sumichrast

necessarily industry, it's seasonal. so It's to a saw as I'm I'm It's we and Yes. say sure interesting. prepared that new not well, but

-- much in I in ago. pretty think business like we're the significant that we're the a now, a saw seeing quarter clearly, uptick right year

I that your I guess, point. in see respect, So

a of a spending this we're to budget as certified And my far be the we R&D our are on said lot money, FDA As and amount testing. of as concerned, significant GMP we're look, in month. I statement, -- is scheduled really

D.C. working in with lobbying our We groups are

of to data the they And discussions some a anywhere. I And the we comply rules that we're think beneficial them them to the the the by serious results is hopefully, some is FDA the going that at table and the that out in sure to with and -- providing it's business, market. think of everybody seat CBD I bad getting, not guide that, what plays has we think the space. in and have the are. towards who have us, to think the brands continue I FDA. And want as that different far the of with of companies we're with anybody this we're a way know rules how that decisions is and making couple address any The is will actors is such as we as in industry. in doing. neighborhood. a in that industry they knows make positive growing, trials I They the who don't are want to have the And are

letters you. thing to when honest just FDA of you that so ridiculous, people claims times don't read it's lots look you out health were And of recently, our that be went them, warning kind in that with at when And those were industry. those we making the clearly, want

know well do, we as as You the stay the middle fairway. And down we that. do right don't I of

So the provided, proper our on planning -- any industry. regimen, we're of how And FDA XXXX the you very -- we views far industry, FDA CBD dislocation into into we're from business as the not a about as maintain however, that type in the hopeful which do. going

So...

Operator

Company. Benchmark at to return Bill We'll Sutherland

William Sutherland

in should as your fiscal want the idea at cadence -- terms about real on think to up look you we of general follow the revenue seasonality rolling 'XX? just the for just I out Yes, how just

Martin Sumichrast

for to think we've we've -- early Bill end We been it the We again, long-standing hard on The me give passed. 'XX. cbdMD 'XX. come hadn't market because at to Farm of acquired where it. at historical that it's went a view in

islets flat So And we was saw this flat. concerned, in first far an due as XXXX, is is business. see did seasonality sequential growth was there year In as fact partly that the the that the a but to really year shortage. true brand

bit face difficult was it little the in to a that. And so grow of

like the exceed think growth we I that certainly right which quarter million our we're grow we is of now. or that think did $X highest million, rate feel the I to probably of And from can continue any growth in competitors. in rate $X.X we

now, far so not from I a have hard as that I think more sure, sure, fast. I necessarily And view -- A on not think a as I'm I bit and little as said, seasonality, clarity I'll I it. I'm as year

business how and at far growth, necessarily again, that at fiscal at end now and looking We're looking we're year as we're As could -- the it we looking the go continued the through could get quarter, increase We could steady in change, pretty at a right? not between we're year. piece next that it of of the a beyond. growth look month-over-month we bump but a of as looking generally end as out

William Sutherland

in but about I'm I've some of the having benefiting growers not sure the guys cases, it, degree the... sales, Marty, then from perspective to the about of read that's some curious to I'm And press cost helpful. excess you supply are Okay, some your quality from

Martin Sumichrast

infuse. deep pockets and we're are group, but year, in well-funded, to I a we and we're processing CBD, behind of And discussions private, able group, job tremendous lot that in. and X probably does give of -- quality, tremendous -- them, And only just Yes. we're Yes. buy we cannabinoids announce, high getting think there's certain not next pricing. other have hopefully, confidence a beginning with It's we is that and going us to very

materials the our the highest compliant product that customers which want to because know reputable in forward have our sure are quantity, all of extraction of quality to and critical out seed we ability make to pricing secure, to are able I partly quantity that facilities from of in from our the is and everything and integrity deliver. we're we margins so going And we the because think, in best some use maintain in the today market

Operator

next a Private to move We'll David Chuleta [ph], Investor.

Unidentified Analyst

attribute Marty, and a I noticed to? that what I'm that in you fairly if significant order there value. you can And be a average account bit flesh increase out seems wondering to for

Martin Sumichrast

in that. Yes. we our I about we're really ordered up, repeat come mean, we've -- happy and customers -- seen and

to marketing I product. think -- of brand. advertising power are of or People goes they or might our the They the that see love and and the brand the try from in. product the they some coming then

what's reorder at of pets. orders. we we order significant So they our have Paw and reordering is, a of initial there's cross-sell have and lot a interesting that come the they're themselves, customers Also, customers increase CBD a from and who brand, for in lot and

And so we're finding CBD for pets. that they're ordering their Paw

that's well. helped so as And

of of is factors, bunch trending a that. in combination we're it's the right report happy And but So to direction. certainly it

Operator

other And no time, this gentlemen, I questions holding. at have

I'll the back closing any conference additional So turn or for comments.

Martin Sumichrast

Well, listen, very to thank year. a at and happy happy you much support and right. and holidays for Thank everybody for you, new cbdMD here all. time All all your your

Mark Elliott

Thank you.

Operator

conference. Ladies today's gentlemen, We thank that and will conclude for you your participation.

at your time, day. line have a great disconnect may phone and this You