$CWBHF

Charlotte's Web Holdings, Inc.

CIK:0001750155|SEC Filings

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands	3 Months Ended				6 Months Ended
	Jun. 30, 2026	Mar. 31, 2026	Jun. 30, 2025	Mar. 31, 2025	Jun. 30, 2026	Jun. 30, 2025
Income Statement [Abstract]
Revenue	$ 10,855		$ 12,806		$ 22,014	$ 25,068
Cost of goods sold	5,698		6,816		11,653	12,848
Gross profit	5,157		5,990		10,361	12,220
Selling, general and administrative expenses	9,515		10,062		19,043	21,640
Operating loss	(4,358)		(4,072)		(8,682)	(9,420)
Change in fair value of financial instruments	5,557		(1,543)		(3,311)	(1,669)
Loss from extinguishment of debt	(4,216)		0		(4,216)	0
Other income (expense), net	(1,075)		(675)		(998)	(1,413)
Loss before provision for income taxes	(4,092)		(6,290)		(17,207)	(12,502)
Income tax benefit (expense)	(35)		2		(32)	2
Net loss	$ (4,127)	$ (13,112)	$ (6,288)	$ (6,212)	$ (17,239)	$ (12,500)
Per common share amounts (Note 10)
Net loss per common share, basic (in usd per share)	$ (0.02)		$ (0.04)		$ (0.10)	$ (0.08)
Net loss per common share, diluted (in usd per share)	$ (0.02)		$ (0.04)		$ (0.10)	$ (0.08)

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
Cash flows from operating activities:
Net loss	$ (17,239)	$ (12,500)
Adjustments to reconcile net loss to net cash used in operating activities:
Loss on extinguishment of debt	4,216	0
Change in fair value of financial instruments	3,311	1,669
Depreciation and amortization	3,171	2,961
Convertible debenture and other accrued interest	1,321	1,471
Share-based compensation	657	367
Changes in right-of-use assets	355	950
(Gain)/loss on foreign currency transaction	(190)	2,522
Gain on disposal of assets	0	(2,326)
Other	53	742
Changes in operating assets and liabilities:
Accounts receivable, net	(570)	(760)
Inventories, net	1,520	(311)
Prepaid expenses and other current assets	700	22
Accounts payable, accrued and other liabilities	(94)	(202)
Operating lease obligations	(552)	(1,220)
Other operating assets and liabilities, net	(364)	(171)
Net cash used in operating activities	(3,705)	(6,786)
Cash flows from investing activities:
Purchases of property and equipment and intangible assets	(50)	(652)
Proceeds from sale of assets	5	113
Net cash used in investing activities	(45)	(539)
Cash flows from financing activities:
Proceeds from issuance of common stock	10,000	0
Other financing activities	(297)	(25)
Net cash provided by (used in) financing activities	9,703	(25)
Net increase (decrease) in cash and cash equivalents	5,953	(7,350)
Cash and cash equivalents —beginning of period	8,035	22,618
Cash and cash equivalents —end of period	13,988	$ 15,268
Supplemental disclosures of non-cash investing and financing activities
Conversion of debt to equity	52,942
Extinguishment of embedded derivatives liability upon debt conversion	8,062
Extinguishment of embedded derivatives asset upon debt conversion	$ 214

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($)	Jun. 30, 2026	Dec. 31, 2025
Current assets:
Cash and cash equivalents	$ 13,988,000	$ 8,035,000
Accounts receivable, net	1,359,000	811,000
Inventories, net	16,517,000	18,022,000
Prepaid expenses and other current assets	2,738,000	3,491,000
Total current assets	34,602,000	30,359,000
Property and equipment, net	20,600,000	22,679,000
Operating lease right-of-use assets, net	10,941,000	11,297,000
Investment in unconsolidated entity	8,300,000	8,800,000
Intangible assets, net	737,000	785,000
Derivative and other long-term assets	1,209,000	1,353,000
Total assets	76,389,000	75,273,000
Current liabilities:
Accounts payable	1,984,000	2,186,000
Accrued and other current liabilities	4,874,000	5,053,000
Lease obligations – current	1,398,000	1,420,000
Total current liabilities	8,256,000	8,659,000
Converted debenture	0	50,849,000
Lease obligations	11,657,000	12,186,000
Derivative and other long-term liabilities	412,000	5,618,000
Total liabilities	20,325,000	77,312,000
Commitments and contingencies (Note 7)
Shareholders’ equity (deficit):
Common shares, nil par value; unlimited shares authorized; 270,549,931 and 159,420,141 shares issued and outstanding as of June 30, 2026 and December 31, 2025	1,000	1,000
Additional paid-in capital	404,612,000	329,270,000
Accumulated deficit	(348,549,000)	(331,310,000)
Total shareholders’ equity (deficit)	56,064,000	(2,039,000)
Total liabilities and shareholders’ equity (deficit)	$ 76,389,000	$ 75,273,000