CBD Global Sciences, Inc. is pleased to share their Q3 2021 results with highlighted details on the Company’s progress. The Company filed its Q3 financials and MD&A on November 29, 2021 to the regulators and the Canadian Securities Exchange.
The financials submitted reflect some of the positive results of the debt restructuring that followed activities that dealt with the impact of the global pandemic in 2020 and the filing of Chapter 7 bankruptcies for two of its subsidiary companies in US Federal Bankruptcy courts in March of 2021.
The revenues for brands Aethics ™ and CannaOil ™ grinded to a halt with the bankruptcy of Global NV, a subsidiary of the Company that owned both brands. During the bankruptcy process all sales generated from those brands were the property of the estates for the two subsidiaries and were not recognized by the Company. Since then, the Company has successfully re-acquired both brands, their trademarks, URLs, websites and all related inventory from the Federal Trustee overseeing the bankruptcies of the subsidiaries. Prior to that event it was not beneficial for the Company to engage in any activities that promoted the brands while the brands were the property of the estate. This included pursuit of large retail sales and e-commerce sales. For that reason, top line revenue prior to and including Q3 2021 are lower, relative to what was seen prior to 2020. With that background information we are pleased to see in the Q3 2021 financial report signs of success that will preview more of what is to come in the new year.
Same quarter revenues increased by $20,491.00 USD for Q3 2021 and the gross profit for that activity increased by 2654%, mainly due to reduction in operating costs that resulted from proactive cost reductions in response to the global pandemic the year prior. Now that the brands are being ‘reactivated’ we anticipate improvement to both topline revenues and profit in the new year.
The acquisition of Resinosa LLC, a cGMP manufacturing company that CBDGS acquired in October 2021, will enhance both top line revenue and profitability of the Company, which should impact the financials beginning in Q4 2021.
Investors will also see an operating net income of $3,403,412.00 for Q3 2021 that is due to the positive effect of the deconsolidation of the two bankrupt subsidiaries from the Company’s financials. This will carry over to a year-to-date Operating Net Income of $1,554,502.00 USD for the company compared to a $(3,032,455.00) USD loss for same period in 2020.
For the balance sheet we reported a reduction of liabilities down from $8,747,885.00 USD to $6,157,883.00 USD YTD. This is anticipated to continue to improve through Q4 2021, all from the deconsolidation and debt restructuring efforts. When the Company’s debt restructuring activities are completed, we anticipate to report a total liability for the Company of less than $1M USD (1) as a result of the continued efforts of the company to restructure its liabilities.
Brad Wyatt, CEO of CBD Global Sciences, shared, “Our Company has endured a very tumultuous period of time with all that has transpired over the past 18 months. I am pleased to share the fruits of our labor and will highlight that the best is yet to come. I am extremely thankful for those behind the scenes that continue to support our efforts to get our Company positioned where we should be in our industry – at the top.”
