CV Sciences, Inc. Issues 2025 Annual Report: Key Points for Investors

Highlights from the Annual Report

• Fiscal Year End: December 31, 2025
• Trading Venue: CV Sciences’ common stock (\$0.0001 par value) trades on the OTC:QB under the symbol “CVSI”. Trading is often sporadic, which may affect liquidity and price discovery.
• Shares Outstanding: As of March 24, 2026, the company had 193,458,420 shares of common stock issued and outstanding.
• Market Capitalization: The public float is approximately \$7 million, based on the last business day of the most recently completed second fiscal quarter.
• Registered Shareholders: 41 registered holders, with additional beneficial owners in “nominee” or “street name”.
• Dividend Policy: No cash dividends paid in 2025 or 2024, and none expected in the foreseeable future. Note agreements prohibit dividends without lender consent.
• Financial Results:
  • Product Sales, Net: \$13.8 million (down 17.6% YoY)
  • Gross Profit: \$6.75 million (down 5.8% YoY)
  • Gross Margin: 49.0%
  • Sales decline attributed to timing of orders, new product introductions, and broader economic factors.
• Cybersecurity: No material cybersecurity incidents to date, but the company acknowledges ongoing risks that could disrupt operations or expose confidential information.
• Legal Proceedings: Material pending legal proceedings are referenced in Note 13 (“Commitments and Contingencies”) of the financial statements.
• Environmental Matters: No significant pollution or hazardous emissions. Environmental compliance costs not material.
• Equity Compensation: Details about securities authorized for issuance under equity compensation plans are provided in Item 12.
• Issuer Repurchases: No repurchases of common stock during the fourth quarter.
• Reporting Compliance: The company is not a well-known seasoned issuer, not an emerging growth company, and is classified as a smaller reporting company. All required SEC filings have been made.

Price-Sensitive Information for Shareholders

• Revenue Decline: The company reported a 17.6% decrease in net product sales year-over-year, which may be viewed negatively by the market and could impact share value.
• Gross Profit Reduction: Gross profit decreased by 5.8%, indicating margin pressures.
• No Dividend Payouts: Ongoing restriction on dividend payments due to debt covenants may affect investor appeal.
• Liquidity Concerns: The OTC:QB trading venue is characterized by sporadic trading, which can increase price volatility and make it difficult for investors to buy or sell shares.
• Cybersecurity Risks: While no material incidents have occurred, the company acknowledges the risk of disruption, data loss, and reputational harm, which could materially impact operations and share price if realized.
• Legal Proceedings: Reference to material pending litigation may be price sensitive, depending on outcomes.

Additional Information

CV Sciences, Inc. emphasizes ongoing monitoring of regulatory and environmental developments, as well as improvements to its cybersecurity posture. The company maintains a corporate website (www.cvsciences.com) with SEC filings, but the website contents are not considered part of the official report.

Certain portions of the definitive proxy statement for the 2026 Annual Meeting are incorporated by reference and will be filed within 120 days after fiscal year end.

The company is not a shell company and has filed all reports required by the SEC.

Potential Share Price Movers

• Revenue and profit declines may lead to negative investor sentiment and share price weakness.
• No dividend payments and restrictions due to debt covenants may reduce attractiveness to income investors.
• Cybersecurity risks and reference to material pending legal proceedings introduce uncertainty.
• Low market capitalization and limited liquidity on OTC:QB may result in higher volatility.

Disclaimer: This article is based on the company’s 2025 Annual Report and is intended for informational purposes only. It does not constitute investment advice. Investors should conduct their own due diligence and consult with professional advisors before making investment decisions. Actual results and outcomes may differ materially from forward-looking statements due to various risks and uncertainties as outlined in the report.

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