CV Sciences Inc (OTCMKTS:CVSI) has posted revenues of $8.3 million in Q1 2020. It is a drop of 45% when compared to the same period last year. However, its e-commerce sales have surged by 15% when compared to the same period of 2019. E-commerce sales accounted for 24% of the overall net revenues.
CV Sciences has streamlined the operations in the past few months to move in the right direction of achieving robust growth during the global health crisis. The company maintains its distribution and production facilities amid coronavirus crisis and delivers high-quality hemp-based cannabidiol products to the customers.
Improves operational efficiency
Chief Executive Officer of CV Sciences, Joseph Dowling, said the company is confident of maintaining a positive outlook in the long term because it has taken proactive measures in the current challenging environment. It has mitigated the impact of coronavirus related effects with the help of its e-commerce arm. The company is on track to broaden its product line and maintain vertical categories. Joseph said the company implemented cost-cutting measures in the past several months to improve operational efficiency and boost earnings.
Preparing to tackle macroeconomic challenges
CV Sciences is also preparing to tackle the macroeconomic and other industry challenges. It is exploring significant opportunities for expanding the distribution and enters into new categories to realize growth. The company is also mobilizing sufficient financial resources to put the company on the growth path amid the challenges created by the coronavirus crisis and short term challenges that affect the CBD market. It is maintaining the lead in the hemp-derived cannabidiol market. The company has the right infrastructure to promote growth and derive rich dividends for the shareholders going forward.
Receives notice of allowance from USPTO
CV Sciences has received the notice of allowance from the US Patents and Trademarks Office for its patent that covers methods to treat smokeless tobacco addiction with the help of pharmaceutical formulations that comprise nicotine and CBD. According to Dowling, it’s IP, and proprietary technology provides significant opportunities for commercializing the cannabidiol based pharmaceutical drug. The market for smokeless tobacco addiction treatment expects to reach over $2 billion.
The retail store count of CV Sciences has surged to 5,799 stores across the nation as of March 31, 2020, when compared to 3,308 stores for the same period last year.