Exhibit 99.1


CV Sciences, Inc. Reports Third Quarter 2020 Financial Results

San Diego, CA - November 5, 2020 (GLOBE NEWSWIRE) - CV Sciences, Inc. (OTCQB:CVSI) (the “Company”, “CV Sciences”, “our”, “us” or “we”), a preeminent supplier and manufacturer of hemp cannabidiol (CBD) products, today announced its financial results for the quarter ended September 30, 2020.

Third Quarter 2020 and Recent Operating Highlights
•
Revenue of $5.6 million for the third quarter of 2020;
•
E-commerce sales of $1.8 million for the third quarter of 2020;
•
Gross margin of 44.2% for the third quarter of 2020;
•
Maintained strong total cash balance of $6.1 million at quarter end;
•
Launched PlusCBDTM brand refresh and new products;
•
Launched Happy LaneTM, a new THC-free CBD brand and product line for the convenience store channel;
•
Launched CVTM Defense, a clinically supported immune formula which provides daily support; and
•
Launched PlusCBDTM Pet, a full line of hemp extracts formulated exclusively for dogs and cats.

“We are pleased to deliver a return to modest sequential revenue growth during the third quarter and have been active with our product and business development activities. We are aggressively driving innovation to accelerate new product and category development. We have also enhanced our e-commerce activities, redesigning our CV Sciences website to support consumer sales of our growing immunity line and are actively working with new potential distribution partners and e-commerce retailers to broaden distribution. We remain confident in the long-term outlook for CBD and continue to support all efforts to drive industry-wide science and regulatory-support while leading with our industry-leading quality products,” stated Joseph Dowling, Chief Executive Officer of CV Sciences. “We are developing distribution for our recent launch of Happy LaneTM, and continue to believe there is a significant opportunity in the convenience store channel for this value-priced brand. We expanded our offering in the immunity category, announced the launch of our pet line and have further new offerings slated for launch in the fourth quarter. I could not be more pleased with how the entire CV Sciences team has aggressively driven our growth efforts amid the daily challenges of the COVID-19 pandemic. While future hurdles are difficult to forecast given the current environment, I am confident in our team’s




ability to adapt and continue to execute our key business strategies. Our focus remains on driving growth and shareholder value through our emphasis on quality, innovation, distribution expansion and category leadership.”

Operating Results - Third Quarter 2020 Compared to Third Quarter 2019
Sales for the third quarter of 2020 were $5.6 million, a decrease of 56% from $12.6 million in the third quarter of 2019. Third quarter sales were impacted by the current COVID-19 pandemic and increased market competition, which is largely due to the uncertain regulatory environment for CBD. The Company's products were sold in 6,227 retail stores nationwide as of September 30, 2020, up from 5,435 stores as of September 30, 2019.

The Company recognized an operating loss of $3.2 million in the third quarter of 2020, compared to an operating loss of $1.8 million in the prior year.

The Company had negative adjusted EBITDA for the third quarter of 2020 of $2.3 million, compared to negative adjusted EBITDA of $0.9 million for the third quarter of 2019.

Conference Call and Webcast
The Company will host a conference call and webcast to discuss these results today at 4:30 pm EDT/1:30 pm PDT. The webcast of the conference call will be available on the Investor Relations section of the Company's web site at https://ir.cvsciences.com/news-events or directly http://public.viavid.com/index.php?id=142188. Investors interested in participating in the live call can also dial (800) 909-4985 from the U.S. or international callers can dial (212) 231-2921, passcode: 21971382. A telephone replay will be available approximately two hours after the call concludes, and will be available through Thursday, November 12, 2020, by dialing (844) 512-2921 from the U.S. or (412) 317-6671 from international locations, and entering confirmation code 21971382.



About CV Sciences, Inc.
CV, or Curriculum Vitae, is Latin for "course of life", and science is the pursuit of truth. CV Sciences: our name is our mission --improving quality of life through nature and science.

CV Sciences, Inc. (OTCQB:CVSI) operates two distinct business segments: a consumer product division focused on manufacturing, marketing and selling plant-based dietary supplements and CBD products to a range of market sectors; and a drug development




division focused on developing and commercializing CBD-based novel therapeutics. The Company’s PlusCBD™ products are sold at more than 6,200 retail locations throughout the U.S. and it is the top-selling brand of hemp-derived CBD in the natural products market, according to SPINS, the leading provider of syndicated data and insights for the natural, organic and specialty products industry.  CV Sciences follows all guidelines for Good Manufacturing Practices (GMP) and the Company’s products are processed, produced, and tested throughout the manufacturing process to confirm strict compliance with company standards and specifications.  With a commitment to science, PlusCBD™ product benefits in healthy people are supported by human clinical research data, in addition to three published clinical case studies available on PubMed.gov.  PlusCBD™ was the first hemp CBD supplement brand to invest in the scientific evidence necessary to receive self-affirmed Generally Recognized as Safe (GRAS) status. CV Sciences, Inc. has primary offices and facilities in San Diego, California.  Additional information is available from OTCMarkets.com or by visiting www.cvsciences.com.

Forward Looking Statements
This press release may contain certain forward-looking statements and information, as defined within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and is subject to the Safe Harbor created by those sections. This material contains statements about expected future events and/or financial results that are forward-looking in nature and subject to risks and uncertainties. Such forward-looking statements by definition involve risk and uncertainties.

Contact Information

Investor Contact:
ICR
Scott Van Winkle
617-956-6736
scott.vanwinkle@icrinc.com

Media Contact:
ICR
Cory Ziskind
646-277-1232
cory.ziskind@icrinc.com







CV SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
(in thousands, except per share data)
 
Three Months ended
September 30,
 
Nine Months ended
September 30,
 
2020
 
2019
 
2020
 
2019
Product sales, net
$
5,564

 
$
12,603

 
$
19,230

 
$
44,368

Cost of goods sold
3,106
 
4,175
 
10,442
 
13,430
Gross Profit
2,458
 
8,428
 
8,788
 
30,938
 
 
 
 
 
 
 
 
Operating expenses:
 
 
 
 
 
 
 
Research and development
412

 
1,544

 
2,667

 
4,574

Selling, general and administrative
5,197
 
8,657
 
19,249
 
36,261
 
5,609
 
10,201
 
21,916
 
40,835
 
 
 
 
 
 
 
 
Operating Loss
(3,151
)
 
(1,773
)
 
(13,128
)
 
(9,897
)
 
 
 
 
 
 
 
 
Interest (income) expense, net
6

 
(7
)
 
—

 
(2
)
Loss before income taxes
(3,157
)
 
(1,766
)
 
(13,128
)
 
(9,895
)
Income tax expense (benefit)
—

 
3

 
(138
)
 
29

Net Loss
$
(3,157
)
 
$
(1,769
)
 
$
(12,990
)
 
$
(9,924
)
 
 
 
 
 
 
 
 
Weighted average common shares outstanding, basic and diluted
99,950

 
98,733

 
99,831

 
97,524

Net loss per common share, basic and diluted
$
(0.03
)
 
$
(0.02
)
 
$
(0.13
)
 
$
(0.10
)








CV SCIENCES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except per share data)

 
September 30,
2020
 
December 31,
2019
Assets
 

 
 

Current assets:
 

 
 

Cash and cash equivalents
$
5,563

 
$
9,107

Restricted cash
501

 
501

Accounts receivable, net
1,318

 
2,177

Inventory
8,685

 
9,971

Prepaid expenses and other
8,138

 
10,611

Total current assets
24,205

 
32,367

 
 
 
 
Property & equipment, net
3,096

 
3,615

Operating lease assets
3,199

 
8,709

Intangibles, net
3,739

 
3,766

Goodwill
2,788

 
2,788

Other assets
1,378

 
1,442

Total assets
$
38,405

 
$
52,687

 
 
 
 
Liabilities and stockholders' equity
 
 
 
Current liabilities:
 
 
 
Accounts payable
$
1,647

 
$
1,617

Accrued expenses
9,817

 
10,856

Operating lease liability - current
688

 
723

Current portion of long-term debt
363

 
—

Total current liabilities
12,515

 
13,196

 
 
 
 
Debt
2,543

 
—

Operating lease liability
3,635

 
9,517

Deferred tax liability
263

 
421

Other liabilities
—

 
406

Total liabilities
18,956

 
23,540

 
 
 
 
Commitments and contingencies
 
 
 
 
 
 
 
Stockholders' equity
 
 
 
Preferred stock, par value $0.0001; 10,000 shares authorized; no shares issued and outstanding
—

 
—

Common stock, par value $0.0001; 190,000 shares authorized, 100,029 and 99,416 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively
10

 
10

Additional paid-in capital
74,066

 
70,774

Accumulated deficit
(54,627
)
 
(41,637
)
Total stockholders' equity
19,449

 
29,147

 
 
 
 
Total liabilities and stockholders' equity
$
38,405

 
$
52,687







CV SCIENCES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW (UNAUDITED)
(in thousands)
 
Nine Months ended September 30,
 
2020
 
2019
OPERATING ACTIVITIES
 
 
 
Net loss
$
(12,990
)
 
$
(9,924
)
Adjustments to reconcile net loss to net cash flows provided by (used in) operating activities:
 
 
 
Depreciation and amortization
629

 
533

Stock-based compensation
3,116

 
4,915

Stock-based compensation associated with founders employment settlement
—

 
7,857

Deferred taxes
(158
)
 
—

Non-cash lease expense
455

 
497

Loss on sale of property and equipment
176

 
—

Other
240

 
38

Change in operating assets and liabilities:
 
 
 
Accounts receivable
717

 
(240
)
Inventory
1,858

 
(1,475
)
Prepaid expenses and other
2,640

 
(659
)
Accounts payable and accrued expenses
(2,515
)
 
857

Net cash provided by (used in) operating activities
(5,832
)
 
2,399

 
 
 
 
INVESTING ACTIVITIES
 
 
 
Purchase of property and equipment
(794
)
 
(901
)
Net cash flows used in investing activities
(794
)
 
(901
)
 
 
 
 
FINANCING ACTIVITIES
 
 
 
Proceeds from debt
2,906

 
—

Repayment of unsecured debt
—

 
(474
)
Proceeds from exercise of stock options
176

 
279

Net cash flows provided by (used in) financing activities
3,082

 
(195
)
 
 
 
 
Net increase (decrease) in cash, cash equivalents and restricted cash
(3,544
)
 
1,303

Cash, cash equivalents and restricted cash, beginning of period
9,608

 
12,935

Cash, cash equivalents and restricted cash, end of period
$
6,064

 
$
14,238

 
 
 
 
Supplemental cash flow disclosures:
 
 
 
Interest paid
$
—

 
$
9

Income taxes paid
$
18

 
$
70

Supplemental disclosure of non-cash transactions:
 
 
 
Purchase of property and equipment in accounts payable and accrued expenses
$
239

 
$
21

Operating ROU lease assets obtained in exchange for operating lease liabilities
$
—

 
$
5,405

Derecognition of operating ROU lease assets related to operating lease termination
$
(4,704
)
 
$
—

Sale of property and equipment in exchange for note receivable (recorded in prepaid expenses and other) and inventory
$
675

 
$
—









CV SCIENCES, INC.
NON-GAAP FINANCIAL MEASURES (UNAUDITED)

We prepare our condensed consolidated financial statements in accordance with generally accepted accounting principles for the United States (GAAP). The non-GAAP financial measures such as net income and loss per share and Adjusted EBITDA included in this press release are different from those otherwise presented under GAAP. We use non-GAAP measures internally to evaluate our performance and make financial and operational decisions that are presented in a manner that adjusts from their equivalent GAAP measures or that supplement the information provided by our GAAP measures. The non-GAAP financial measures exclude non-cash compensation expense for stock options and other non-recurring items. When evaluating the performance of our business and developing short and long-term plans, we do not consider share-based compensation charges. Although share-based compensation is necessary to attract and retain quality employees, our consideration of share-based compensation places its primary emphasis on overall shareholder dilution rather than the accounting charges associated with such grants. Because of the varying availability of valuation methodologies and subjective assumptions, we believe that the exclusion of share-based compensation allows for more accurate comparison of our financial results to previous periods. In addition, we believe it useful to investors to understand the specific impact of the application of the fair value method of accounting for share-based compensation on our operating results.
Adjusted EBITDA is defined by us as EBITDA (net income (loss) plus depreciation expense, amortization expense, interest and income tax expense (benefit), further adjusted to exclude certain non-cash expenses and other adjustments as set forth below. We use Adjusted EBITDA because we believe it more clearly highlights trends in our business that may not otherwise be apparent when relying solely on GAAP financial measures, since Adjusted EBITDA eliminates from our results specific financial items that have less bearing on our core operating performance.
We use Adjusted EBITDA in communicating certain aspects of our results and performance, including in this press release, and believe that Adjusted EBITDA, when viewed in conjunction with our GAAP results and the accompanying reconciliation, can provide investors with greater transparency and a greater understanding of factors affecting our financial condition and results of operations than GAAP measures alone. In addition, we believe the presentation of Adjusted EBITDA is useful to investors in making period-to-period comparison of results because the adjustments to GAAP are not reflective of our core business performance.




A reconciliation from our GAAP net loss to non-GAAP net income (loss) for the three and nine months ended September 30, 2020 and 2019 is detailed below:
 
Three Months ended
September 30,
 
Nine Months ended
September 30,
 
2020
 
2019
 
2020
 
2019
 
(in thousands, except per share data)
Net loss - GAAP
$
(3,157
)
 
$
(1,769
)
 
$
(12,990
)
 
$
(9,924
)
Stock-based compensation (1)
615

 
699

 
3,116

 
4,915

Stock-based compensation associated with founder employment settlement (2)
—

 
—

 
—

 
7,857

Payroll expense associated with founder employment settlement (3)
—

 
—

 
—

 
934

Net income (loss) - non-GAAP
$
(2,542
)
 
$
(1,070
)
 
$
(9,874
)
 
$
3,782

 
 
 
 
 
 
 
 
Diluted EPS - GAAP
$
(0.03
)
 
$
(0.02
)
 
$
(0.13
)
 
$
(0.10
)
Stock-based compensation (1)
—

 
0.01

 
0.03

 
0.04

Stock-based compensation associated with founder employment settlement (2)
—

 
—

 
—

 
0.08

Payroll expense associated with founder employment settlement (3)
—

 
—

 
—

 
0.01

Diluted EPS - non-GAAP
$
(0.03
)
 
$
(0.01
)
 
$
(0.10
)
 
$
0.03

 
 
 
 
 
 
 
 
Shares used to calculate diluted EPS - GAAP
99,863

 
98,733

 
99,771

 
97,524

Shares used to calculate diluted EPS - non-GAAP
99,863

 
98,733

 
99,771

 
117,318

_____________
(1)
Represents stock-based compensation expense related to stock options awarded to employees, consultants and non-executive directors based on the grant date fair value using the Black-Scholes valuation model.
(2)
Represents stock-based compensation expense related to accelerated vesting of RSU's and the modification of certain stock options associated with the settlement agreements with our founder.
(3)
Represents accrued payroll and related benefits associated with the separation of our founder.







A reconciliation from our net loss to Adjusted EBITDA, a non-GAAP measure, for the three months ended September 30, 2020 and 2019 is detailed below:
 
Three Months ended September 30, 2020
 
Three Months ended September 30, 2019
 
Consumer Products
 
Specialty Pharma
 
Total
 
Consumer Products
 
Specialty Pharma
 
Total
 
(in thousands)
Net loss
$
(2,855
)
 
$
(302
)
 
$
(3,157
)
 
$
(651
)
 
$
(1,118
)
 
$
(1,769
)
Depreciation
231

 
—

 
231

 
170

 
—

 
170

Amortization
—

 
9

 
9

 
—

 
9

 
9

Interest expense (income)
6

 
—

 
6

 
(7
)
 
—

 
(7
)
Income tax expense
—

 
—

 
—

 
3

 
—

 
3

EBITDA
(2,618
)
 
(293
)
 
(2,911
)
 
(485
)
 
(1,109
)
 
(1,594
)
Stock-based compensation (1)
581

 
34

 
615

 
657

 
42

 
699

Adjusted EBITDA
$
(2,037
)
 
$
(259
)
 
$
(2,296
)
 
$
172

 
$
(1,067
)
 
$
(895
)
A reconciliation from our net loss to Adjusted EBITDA, a non-GAAP measure, for the nine months ended September 30, 2020 and 2019 is detailed below:
 
Nine Months ended September 30, 2020
 
Nine Months ended September 30, 2019
 
Consumer Products
 
Specialty Pharma
 
Total
 
Consumer Products
 
Specialty Pharma
 
Total
 
(in thousands)
Net loss
$
(10,827
)
 
$
(2,163
)
 
$
(12,990
)
 
$
(7,134
)
 
$
(2,790
)
 
$
(9,924
)
Depreciation
602

 
—

 
602

 
506

 
—

 
506

Amortization
—

 
27

 
27

 
—

 
27

 
27

Interest expense (income)
—

 
—

 
—

 
(2
)
 
—

 
(2
)
Income tax expense (benefit)
(138
)
 
—

 
(138
)
 
29

 
—

 
29

EBITDA
(10,363
)
 
(2,136
)
 
(12,499
)
 
(6,601
)
 
(2,763
)
 
(9,364
)
Stock-based compensation (1)
3,048

 
68

 
3,116

 
4,794

 
121

 
4,915

Stock-based compensation associated with founder employment settlement (2)
—

 
—

 
—

 
7,857

 
—

 
7,857

Payroll expense associated with founder employment settlement (3)
—

 
—

 
—

 
934

 
—

 
934

Adjusted EBITDA
$
(7,315
)
 
$
(2,068
)
 
$
(9,383
)
 
$
6,984

 
$
(2,642
)
 
$
4,342

______________
(1)
Represents stock-based compensation expense related to stock options awarded to employees, consultants and non-executive directors based on the grant date fair value using the Black-Scholes valuation model.
(2)
Represents stock-based compensation expense related to accelerated vesting of RSU's and the modification of certain stock options associated with the settlement agreements with our founder.
(3)
Represents accrued payroll and related benefits associated with the separation of our founder.