Investors are nowadays increasingly interested in the wellness sector owing to its growth prospects, and a company that may well be worth watching is the consumer wellness company CV Sciences Inc. (OTC:CVSI). The company is a specialist in hemp extracts and other science-proven natural ingredients and products.
On March 28, the company was in the news after it announced its financial results for the fiscal year and the fourth fiscal quarter, both of which ended on December 31, 2023. In the 2023 fiscal year, the company generated revenues of $16 million, which was a slight drop from the revenues of $16.2 million in the 2022 fiscal year. In the fourth quarter, CV Sciences brought in revenues of $3.8 million as opposed to $4.1 million in the previous quarter. In the fiscal year, the company recognized gross margins to the tune of 44.3%, and that marked a considerable improvement on the gross margins of 34.2% in the 2022 fiscal year.
In the fourth fiscal quarter, the gross margins were 45.8%, and that reflected an improvement from the 45.1% in the third fiscal quarter of 2023. At the end of 2023, CV Sciences reported a cash balance of $1.3 million, as opposed to $0.6 million at the end of 2022. In the 2023 fiscal year, the company generated cash flow of $2.3 million from operations, which was a strong improvement from $1.9 million under the same overhead in the 2022 fiscal year.
The cash flow from operations that had been generated by CV Sciences also included ERC (employee retention credit) under the provisions of the CARES Act, to the tune of $2.5 million. The operating expenses were reduced once again to $9.9 million, which worked out to a reduction of 20% from the operating expenses of $12.4 million in the 2022 fiscal year.
