SAN DIEGO, May 14, 2024 /PRNewswire/ -- CV Sciences, Inc. (OTCQB:CVSI) (the "Company", "CV Sciences", "our", "us" or "we"), a preeminent consumer wellness company specializing in hemp extracts and other proven science-backed, natural ingredients and products, today announced its financial results for the quarter ended March 31, 2024. First Quarter 2024 and Recent Financial and Operating Highlights Generated revenue of $4.0 million for first quarter 2024 compared to $4.1 million for the first quarter 2023 and a sequential improvement from $3.8 million for the fourth quarter 2023; Recognized gross margin of 46.3% for first quarter 2024 compared to 43.0% for the first quarter 2023 and a sequential improvement from 45.8% for the fourth quarter 2023; Cash balance of $0.7 million at quarter end compared to $1.3 million at the end of 2023; Further established number one position as top-selling hemp extract brand in the natural product retail sales channel, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry; Expanded +PlusCBD™ Pet product offering with the launch of pet chews for hip and joint health and calming care chews; Acquired Elevated Softgels, a leading manufacturer of encapsulated softgels and tinctures for the supplement and nutrition industry, based in Colorado; and Continued to build an efficient and cost effective consumer products platform and continue to evaluate inbound and outbound merger, sale, acquisition or other options for the Company. "We are pleased with our first quarter 2024 results. Our revenues increased sequentially to $4 million in the first quarter 2024 in a challenging environment. Our 46.3% gross margin in the first quarter 2024 is our best gross margin in the last 12 quarters," stated Joseph Dowling, Chief Executive Officer of CV Sciences. "Our first quarter 2024 progress demonstrates our continuous commitment to innovation and cost-efficient execution as we move closer to profitability and positive cash flow. We are thrilled that Elevated Softgels and its employees are joining CV Sciences as another milestone in our transition to a global health and wellness company. Our immediate plan is to increase the existing business of Elevated Softgels to further leverage its existing capacity. In addition, we intend to in-source production of certain of our key products." Operating Results - First Quarter 2024 Compared to First Quarter 2023 Sales for first quarter 2024 were $4.0 million, a decrease of 4% from $4.1 million in the first quarter 2023. The decline is primarily due to lower B2B sales of $0.2 million because of lower average order value. B2C sales increased by $0.1 million or 3% to $1.8 million in the first quarter 2024.  The total number of units sold during the first quarter 2024 decreased by 14.7%, partially offset by higher average sales prices per unit of 11.8%. The average sales price per unit improved due to product and channel mix. We generated an operating loss of $0.6 million in the first quarter 2024, compared to an operating income of $5.8 million in the first quarter 2023, mostly due to the reversal of accrued payroll tax of $6.2 million and improved gross margins. The Company had negative adjusted EBITDA of $0.5 million for the first quarter 2024 compared to $0.2 million in the first quarter of 2023. Conference Call and Webcast The Company will host a conference call and webcast to discuss these results today at 10:00 am EDT/7:00 am PDT. The webcast of the conference call will be available on the Investor Relations section of the Company's website at https://ir.cvsciences.com/news-events or directly at https://viavid.webcasts.com/starthere.jsp?ei=1668608&tp_key=842142989f. Investors interested in participating in the live call can also dial (877) 407-0784 from the U.S. or international callers can dial (201) 689-8560. A telephone replay will be available approximately three hours after the call concludes, and will be available through Thursday, May 21, 2024, by dialing (844) 512-2921 from the U.S. or (412) 317-6671 from international locations, and entering confirmation code 13746320. About CV Sciences, Inc. CV Sciences, Inc. (OTCQB:CVSI) is a consumer wellness company specializing in nutraceuticals and plant-based foods. The Company's hemp extracts and other proven, science-backed, natural ingredients and products are sold through a range of sales channels from B2B to B2C. The Company's +PlusCBD™ branded products are sold at select retail locations throughout the U.S. and are the top-selling brands of hemp extracts in the natural products market, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry. With a commitment to science, +PlusCBD™ product benefits in healthy people are supported by human clinical research data, in addition to three published clinical case studies available on PubMed.gov. +PlusCBD™ was the first hemp extract supplement brand to invest in the scientific evidence necessary to receive self-affirmed Generally Recognized as Safe (GRAS) status. The Company's Cultured Foods™ brand provides a variety of 100% plant-based food products. Committed to crafting nutritious and flavorful alternatives, Cultured Foods™ caters to individuals seeking vegan, gluten-free, or flexitarian options for a wholesome and satisfying culinary experience. CV Sciences, Inc. has primary offices and facilities in San Diego, California, and Warsaw, Poland. The Company also operates a drug development program focused on developing and commercializing CBD-based novel therapeutics. Additional information is available from OTCMarkets.com or by visiting www.cvsciences.com. Forward Looking Statements This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risk and uncertainties. CV Sciences does not undertake any obligation to publicly update any forward-looking statements, except as required by applicable law. As a result, investors should not place undue reliance on such forward-looking statements. Contact CV SCIENCES, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (in thousands, except per share data) Three Months Ended March 31, 2024 2023 Product sales, net $ 4,002 $ 4,148 Cost of goods sold 2,149 2,366 Gross profit 1,853 1,782 Operating expenses: Research and development 36 35 Selling, general and administrative 2,437 2,156 Benefit from reversal of accrued payroll taxes — (6,171) Total operating expenses 2,473 (3,980) Operating income (loss) (620) 5,762 Other expense, net 2 56 Income (loss) before income taxes (622) 5,706 Income tax expense 6 — Net income (loss) $ (628) $ 5,706 Weighted average common shares outstanding, basic and diluted 163,075 152,104 Net income (loss) per common share, basic and diluted $ (0.00) $ 0.04   CV SCIENCES, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except per share data) March 31,2024 December 31, 2023 Assets Current assets: Cash $ 662 $ 1,317 Accounts receivable, net 507 431 Inventory 5,756