LOUISVILLE — Charlotte’s Web Holdings Inc. (TSE: CWEB) (OTCQX: CWBHF) had slightly lower year-over-year revenues in the second quarter of 2023, but non-cash gains pushed net income into the black.
Charlotte’s Web recorded revenues in the second quarter of 2023 totalling $16 million, down from $18 million in the first quarter of last year.
The company posted net income of $2.8 million in the most recent period, an improvement over a net loss of $7.9 million in the second quarter of 2022.
“Net income benefited from non-cash gains during the quarter, including a $4.2 million gain in fair value of the company’s derivative instruments, and a $10.7 million gain on a non-cash investment in DeFloria,” an entity recently formed by CW in partnership with aAJNA BioSciences PBC and British American Tobacco PLC.
“Executing on our strategic pillar for growth, in the second quarter, we launched ReCreate by Charlotte’s Web, a new broad-spectrum CBD brand focused on cultural lifestyles for Millennials and GenZers who make up approximately half of the multi-billion-dollar CBD market,” CW CEO Jacques Tortoroli said in a prepared statement. “These groups are anticipated to become the largest consumer group by 2026 and often view sports and fitness as a form of self-care.”
Charlotte’s Web said the company “believes that continued positive legislative progress in Washington, D.C., for the regulation of CBD will increase consumer interest and confidence as well as unlock incremental customer opportunities.”