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UNITED STATES 
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 10-K/A
(Amendment No. 1)
 
(Mark One) 
☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the fiscal year ended September 30, 2024
 
or
 
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from _________ to __________
 
Commission file number 001-38299
 
ycbd01.jpg
 
cbdMD, INC.
(Exact Name of Registrant as Specified in its Charter)
 
North Carolina
  
47-3414576
State or Other Jurisdiction of
Incorporation or Organization
  
I.R.S. Employer
Identification No.
     
2101 Westinghouse Blvd., Suite A, Charlotte, NC
  
28273
Address of Principal Executive Offices
  
Zip Code
 
704-445-3060
Registrant’s Telephone Number, Including Area Code
 
Former Name, Former Address and Former Fiscal Year, if Changed Since Last Report
Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
common
YCBD
NYSE American
8% Series A Cumulative Convertible Preferred Stock
YCBDpA
NYSE American
 
Securities registered pursuant to Section 12(g) of the Act:
 
None
(Title of class)
 
Indicate by check mark if the registrant is a well-known seasonal issuer, as defined in Rule 405 of the Securities Act. Yes ☐     No ☒
 
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 of Section 15(d) of the Act. Yes ☐     No ☒
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒     No ☐
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒     No ☐
 
 
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Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
☐
Accelerated filer
☐
Non-accelerated filer
☒
Smaller reporting company
☒
   
Emerging growth company
☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☐
 
If securities are registered pursuant to Section 12(b) of the Act, indicate by check mark whether the financial statements of the registrant included in the filing reflect the correction of an error to previously issued financial statements. ☐
 
Indicate by check mark whether any of those error corrections are restatements that required a recovery analysis of incentive-based compensation received by any of the registrant’s executive officers during the relevant recovery period pursuant to § 240.10D-1(b). ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Act). Yes ☐ No ☒
 
State the aggregate market value of the voting and non-voting common equity held by non-affiliates computed by reference to the price at which the common equity was sold, or the average bid and asked prices of such common equity, as of the last business day of the registrant’s most recently completed second fiscal quarter. $2,832,040 on March 31, 2024.
 
APPLICABLE ONLY TO CORPORATE ISSUERS
 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. 5,539,124 shares of common stock are issued and outstanding as of December 16, 2024.
 
 
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EXPLANATORY NOTE
 
This Amendment No. 1 on Form 10-K/A (the “Amendment”) amends our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 (the “2024 10-K”), originally filed with the Securities and Exchange Commission on December 18, 2024 (the “Original Filing”). We are filing this Amendment to amend Part III of the Original Filing to include the information required by and not included in Part III of the Original Filing because we no longer intend to file a definitive proxy statement which involves the election of directors within 120 days of the end of our fiscal year ended September 30, 2024. The information required by Part III was previously omitted from the Original Filing in reliance on General Instruction G(3) to Form 10-K, which permits the information in Part III to be incorporated in the Form 10-K by reference from a definitive proxy statement which involves the election of directors if such statement is filed no later than 120 days after the end of our fiscal year.
 
Part IV of the Original Filing is being amended solely to add as exhibits certain new certifications by our co-principal executive officers and our principal financial officer in accordance with Rule 13a-14(a) promulgated by the SEC under the Securities Exchange Act of 1934. Because no financial statements have been included in this Amendment and this Amendment does not contain or amend any disclosure with respect to Items 307 or 308 of Regulation S-K, paragraphs 3, 4 and 5 of the certifications have been omitted. We are not including the certificate under Section 906 of the Sarbanes-Oxley Act of 2002 because no financial statements have been included in this Amendment.
 
Except as described above, no other changes have been made to the Original Filing. The Original Filing continues to speak as of the date of the Original Filing, and we have not updated the disclosures contained therein to reflect any events which occurred at a date subsequent to the filing of the Original Filing other than as expressly indicated in this Amendment. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings made with the SEC on or subsequent to December 18, 2024.
 
 
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OTHER PERTINENT INFORMATION
 
Unless the context otherwise indicates, when used in this report, the terms the “Company,” “cbdMD, “we,” “us, “our” and similar terms refer to cbdMD, Inc., a North Carolina corporation formerly known as Level Brands, Inc., and our subsidiaries CBD Industries LLC, a North Carolina limited liability company formerly known as cbdMD LLC, which we refer to as “CBDI”, Paw CBD, Inc., a North Carolina corporation which we refer to as “Paw CBD” and cbdMD Therapeutics LLC, a North Carolina limited liability company which we refer to as “Therapeutics” and Proline Global, LLC a North Carolina limited liability company which we refer to as “Proline Global”. In addition, “fiscal 2023” refers to the year ended September 30, 2023, and “fiscal 2024” refers to the year ended September 30, 2024.
 
We maintain a corporate website at www.cbdmd.com. The information contained on our corporate website and our various social media platforms are not part of this report.
 
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PART III
 
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE.
 
The following table provides information on our executive officers and directors:
 
Name
Age
Positions
T. Ronan Kennedy
46
Chief Executive Officer, Chief Financial Officer and Director
Bradley Whitford
43
Chief Accounting Officer, Treasurer and Secretary
Scott G. Stephen
59
Chairman of the Board of Directors
Bakari Sellers
40
Director
William F. Raines, III
65
Director
Dr. Sibyl Swift
44
Director
 
Ronan Kennedy. Mr. Kennedy has served as our Chief Financial Officer since October 2020. On March 3, 2021, he was appointed to serve as our Chief Operating Officer. On March 1, 2023, he was appointed Interim Chief Executive Officer and resigned as Chief Operating Officer. During March 2024 he was appointed full time chief executive officer. He has served as a member of our board of directors since December 2024. Prior to joining cbdMD, he served as Chief Financial Officer of AMV Holdings, LLC, a Mooresville, NC-based vaping and e-cigarette retailer, manufacturer and wholesaler from 2015 through October 2020. During his tenure, AMV grew from a nine-store regional chain to a platform of over 100 U.S. locations and a growing European footprint. Following the passing of the Farm Bill in late 2018, Mr. Kennedy assisted AMV expand into the manufacturing and retailing of CBD products. Prior to his role at AMV, Mr. Kennedy spent nine years at Meriturn Partners, LLC, a Raleigh, NC-based middle-market private equity firm focused on acquiring and advising middle-market companies, where he was a Principal. In his role with Meriturn Partners, LLC, Mr. Kennedy has led all facets of transactions, including due diligence, financial analysis and capital raising and in 2014 helped lead Meriturn’s original acquisition of AMV’s predecessor. Since 2014 Mr. Kennedy has also provided independent advisory and consulting services with select organizations and his engagements have included leading the financial analysis on sale-side engagements, assistance in negotiating a $40 million sale to a strategic buyer, advising secured creditors through restructuring of a restaurant group, and serving as a co- trustee for a specialty pharmaceutical company. From 2001 to 2004 Mr. Kennedy held engineering and manufacturing roles with Visteon Corporation, a $16 billion Tier 1 automotive supplier. Mr. Kennedy received a B.S. in Mechanical Engineering from Virginia Polytechnic Institute & State University and a M.B.A. from the Fuqua School of Business, Duke University. Mr. Kennedy previously served on the Board of Directors of Nexus Capital Real Estate Inc., a Rochester, NY-based real estate investment firm.
 
Bradley Whitford. Mr. Whitford has been employed by the Company since 2021. He has served as Chief Accounting Officer, Treasurer and Secretary since March 2024.  Prior to joining the Company he served as Corporate Accounting Manager – Global Close and Consolidations for Diversey, Inc., a hygiene, infection prevention and cleanings solutions company from 2019 to 2021. Prior to his role at Diversey, he served as Corporate Controller for Four S LLC, a franchisee of Sola Salons Studios in the US from 2017 to 2019 and as Vice President and Corporate Controller of Campus Crest Communities, Inc., a vertically integrated developer of luxury student housing in the US and Canada from 2014 to 2016. Mr. Whitford graduated from the University of North Carolina at Wilmington with a BA in Psychology and Master of Science in Accountancy.
 
Scott G. Stephen. Mr. Stephen has been a member of our board of directors since April 2019 and Chairman since June 2022. Mr. Stephen has served as Chief Growth Officer of Guaranteed Rate Inc., a U.S. residential mortgage company headquartered in Chicago, IL, since February 2012. Mr. Stephen also serves as President of Guaranteed Rate Insurance and Ravenswood Title, affiliates of Guaranteed Rate Inc. From 2003 until 2012, he was employed by Playboy Enterprises, Inc., a leading men’s global entertainment and lifestyle company, serving in a variety of positions including Chief Operations Officer, Executive Vice President, Playboy Print/Digital Group and Executive Vice President and General Manager of Playboy Digital Media. From 1999 to 2003 Mr. Stephen was employed by Yesmail, Inc., an online relationship marketing company, serving as Chief Operating Officer and Vice President of Client Services and Operations. Mr. Stephen received a Bachelor of Business Administration in Finance from the University of Notre Dame and a Master of Management in Marketing and Organizational Behavior from the Kellogg School of Management at Northwestern University. We selected Mr. Stephen to serve on the board of directors because of his executive leadership positions, his positions with Guaranteed Rate Inc. and Playboy Enterprises and his extensive business background.
 
Bakari Sellers. Mr. Sellers has been a member of our board of directors since March 2017. Mr. Sellers, an attorney, has been a member of the Strom Law Firm, LLC, in Columbia, South Carolina since 2007. Mr. Sellers is a former member of the South Carolina House of Representatives, where he represented the 90th District beginning in 2006, making history as the youngest member of the South Carolina state legislature and the youngest African American elected official in the nation. In 2014, he ran as the Democratic nominee for Lt. Governor of South Carolina. He has worked for United States Congressman James Clyburn and former Atlanta Mayor Shirley Franklin. Earning his undergraduate degree from Morehouse College, where he served as student body president, and his law degree from the University of South Carolina, Mr. Sellers has followed in the footsteps of his father, civil rights leader Cleveland Sellers, in his tireless commitment to service taking championing progressive policies to address issues ranging from education and poverty to preventing domestic violence and childhood obesity. He has served as a featured speaker at events for the National Education Association, College Democrats of America National Convention, the 2008 Democratic National Convention and, in 2007, delivered the opening keynote address to the AIPAC Policy Conference in Washington, DC. Mr. Sellers is also a political commentator at CNN. We selected Mr. Sellers because of his leadership experience, commitment to public policy and legal background.
 
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William F. Raines, III. Mr. Raines has been a member of our board of directors since April 2019. Since 2008 Mr. Raines has been employed by DataTech Global, LLC, a privately held technology company which focuses on online sales and marketing, serving as Chief Financial Officer from 2008 to 2012 and Chief Executive Officer since 2012. Mr. Raines has over 35 years of accounting and financial experience with a primary focus on financial control of operations, financial reporting, acquisitions and implementation of acquisition plans. Earlier in his career, from 1991 until 2006 Mr. Raines served in various capacities from Corporate Controller of Speedway Motorsports, Inc. (NYSE:TRK) to General Manager of SMI Properties, Inc., a subsidiary of Speedway Motorsports, Inc., and from 2009 until 2012 he was Chief Executive Officer and Chief Financial Officer of Intermark Brands, LLC, the manufacturer of Blu, an e-cigarette, and its related entities BLEC, LLC and QSN Technologies, LLC, which were subsequently sold to Lorillard Tobacco in 2012. Mr. Raines received a B.S. in Accounting from the University of Maryland in 1981. We selected Mr. Raines to serve on the board because of his extensive technology, accounting and mergers and acquisitions experience.
 
Dr. Sibyl Swift. Dr. Swift has been a member of our board of directors since August 2022. Dr. Swift served as our Chief Science Officer & VP Regulatory Affairs and the co-chair of cbdMD Therapeutics, LLC, from March 2021 to August 2024, and remains engaged as a consultant. She initially joined our company as a Regulatory Consultant in Jan 2021. Prior to joining our company, from January 2020 to December 2020, Dr. Swift was the Senior Vice President for Scientific & Regulatory Affairs at the Natural Products Association. Dr. Swift served in multiple roles during her 5 years within the U.S. Food and Drug Administration's Office of Dietary Supplement Programs; the last role was the Associate Director for Research and Strategy. As Associate Director, Dr. Swift directed the office’s research portfolio and was responsible for ensuring alignment between its science, research, compliance, enforcement, and policy initiatives. Dr. Swift was also the co-chair of the Botanical Safety Consortium, a collaboration between scientists from government agencies, academia and industry. Dr. Swift earned her Ph.D. in Nutrition has and M.S. in Kinesiology from Texas A&M University. She is currently a member of the American Society for Nutrition, the Global Retailer & Manufacturer Alliance (GRMA), the Natural Products Association (NPA) ComPLI Committee, and the Council for Federal Cannabis Regulation's (CFCR) SRAC. In keeping with the Company’s stated commitment to increase diversity on the board which it believes supports the Company’s core values and is an essential measure of sound governance and critical to a well-functioning board, the board of directors recognizes that Dr. Swift is a minority. We selected Dr. Swift to serve on the board of directors because of her significant experience the dietary supplement industry, including her 5 years within the U.S. Food and Drug Administration's Office of Dietary Supplement Programs and her responsibilities at the FDA for ensuring alignment between its science, research, compliance, enforcement, and policy initiatives.
 
Family Relationships
 
There are no family relationships between any of the executive officers and directors.
 
Key Employees
 
While not executive officers of our company, the following individuals have been deemed key employees of our company for fiscal 2024 and/or are expected to make significant contributions to our business.
 
Dr. Swift served as our chief science officer and vice president of regulatory affairs from March 2021 to August 2024. She is currently engaged as a consultant and serves on our board of directors.
 
Corporate Governance
 
Corporate Governance Framework
 
We are committed to maintaining the highest standards of honest and ethical conduct in running our business efficiently, serving our shareholders’ interests and maintaining our integrity in the marketplace. To assist in its governance, our board has formed two standing committees composed entirely of independent directors, the Audit Committee and the Compensation, Corporate Governance and Nominating Committee, and we have adopted a Code of Business Conduct, a Whistleblower Policy and an Insider Trading Policy. Copies of our committee charters, Code of Business Conduct and Ethics, Whistleblower Policy and Insider Trading Policy may be found on our website at www.cbdmd.com. Copies of these materials also are available without charge upon written request to our Corporate Secretary.
 
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Board of Directors
 
The board of directors oversees our business affairs and monitors the performance of management. In accordance with our corporate governance principles, the board of directors does not involve itself in day-to-day operations. The directors keep themselves informed through discussions with our Chief Executive Officer and our Chief Financial Officer, by reading materials that we may send them and by participating in board of directors and committee meetings. Directors are elected for a term of one year, serving until our next annual meeting. Our directors hold office until their successors have been elected and duly qualified unless the director resigns or by reason of death or other cause is unable to serve in the capacity of director. If any director resigns, dies or is otherwise unable to serve out his or her term, or if the board increases the number of directors, the board may fill any vacancy by a vote of a majority of the directors then in office, although less than a quorum of directors then exists. A director elected to fill a vacancy shall serve for the unexpired term of his or her predecessor. Vacancies occurring by reason of the removal of directors without cause may only be filled by vote of the shareholders.
 
The board of directors conducts its business through meetings and actions taken by written consent in lieu of meetings. Our independent directors meet in executive session at each regularly scheduled board meeting. During fiscal 2024, the board of directors held 16 meetings including Annual Meetings. During fiscal 2024, each director attended at least 80% of the aggregate of (i) the total number of meetings of the board of directors held during the period of such member’s service and (ii) the total number of meetings of the committees of the board of directors on which he served held during the period of such member’s service.
 
Board Leadership Structure and Board’s Role in Risk Oversight
 
Messrs. Sellers, Raines, and Stephen are each considered an independent director within the meaning of Section 803 of the NYSE American LLC Company Guide. Dr. Swift is a former employee of our company. Mr. Kennedy serves as chief executive officer and chief financial officer. We do not have a “lead” independent director.
 
Risk is inherent with every business, and how well a business manages risk can ultimately determine its success. We face a number of risks, including operational risk, regulatory risk, strategic risk, reputation risk, credit risk, interest rate risk, and liquidity risk. Management is responsible for the day-to-day management of risks we face, while the board, as a whole and through its committees, has responsibility for the oversight of risk management. In its risk oversight role, the board of directors has the responsibility to satisfy itself that the risk management process designed and implemented by management are adequate and functioning as designed. Our Interim Chief Executive Officer and Chief Financial Officer attend the board meetings and are available to address any questions or concerns raised by the board on risk management and any other matters. Our employee board member and the independent members of the board work together to provide strong, independent oversight of our company’s management and affairs through its standing committees and, when necessary, meetings of independent directors. If the identified risk poses an actual or potential conflict with management, our independent directors may conduct the assessment. Presently, the primary risks affecting us are: (i) our ability to continue as a going concern, (ii) increasing our customer base, (iii) diversifying our sales, and (iv) improving profitability.
 
Board Committees
 
The board of directors has a standing Audit Committee and a standing Compensation, Corporate Governance and Nominating Committee. Each committee has a written charter. The charters are available on our website at www.cbdmd.com. All committee members are independent directors. Information concerning the current membership and function of each committee is as follows:
 
Audit Committee
  
Responsibilities
     
Members:
  
The Audit Committee assists the board in fulfilling its oversight responsibility relating to:
     
● William F. Raines, III (Chairman)
  
● the integrity of our financial statements;
● Bakari Sellers
  
● our compliance with legal and regulatory requirements; and
● Scott G. Stephen
  
● the qualifications and independence of our independent registered public accountants.
     
Meetings in fiscal 2024: 4
  
The Audit Committee has the ultimate authority to select, evaluate and, where appropriate, replace the independent auditor, approve all audit engagement fees and terms, and engage outside advisors, including its own counsel, as it deems necessary to carry out its duties. The Audit Committee is also responsible for performing other related responsibilities set forth in its charter. Mr. Raines, the chairman of the Audit Committee is considered a “financial expert” under applicable SEC and NYSE American rules.
 
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Compensation, Corporate Governance and Nominating Committee
  
In April 2020 following our 2020 annual meeting of shareholders, our board of directors approved the consolidation of two previously constituted board committees, the Compensation Committee and the Nominating and Corporate Governance Committee, into one consolidated committee titled the Compensation, Corporate Governance and Nominating Committee.
     
Members:
  
Responsibilities
     
● Bakari Sellers (Chairman)
● William F. Raines, III
● Scott Stephen
 
Meetings in fiscal 2024: 1
  
The Compensation, Corporate Governance and Nominating Committee is charged with ensuring that our compensation programs are competitive, designed to attract and retain highly qualified directors, officers and employees, encourage high performance, promote accountability and assure that employee interests are aligned with the interests of our shareholders. The committee is also tasked with assessing the performance of the board and to make recommendations to the board from time to time, or whenever it shall be called upon to do so, regarding nominees for the board and to ensure our compliance with appropriate corporate governance policies and procedures. The Compensation, Corporate Governance and Nominating Committee also administers our equity compensation plans.
     
   
Use of Outside Advisors
   
All compensation decisions are made with consideration of the committee’s guiding principles to provide competitive compensation for the purpose of attracting and retaining talented executives and of motivating our executives to achieve improved cbdMD executive performance, which ultimately benefits our shareholders. The committee has the sole authority to retain and terminate any advisors, including independent counsel, compensation consultants and other advisors to assist as needed, and has sole authority to approve the advisors’ fees, which will be paid by us, and the other terms and conditions of their engagement. The committee considers input and recommendations from management, including our Chief Executive Officer and Chief Financial Officer (who are not present during any committee deliberations with respect to compensation) in connection with its review of our compensation programs and its annual review of the performance of the other executive officers. During fiscal 2020 and 2021 the committee engaged the services of an independent compensation consultant, Willis Towers Watson, to provide it with an executive pay review. The committee takes into consideration the recommendations of the outside compensation consultant and our executive officers but retains absolute discretion as to whether to adopt such recommendations in whole or in part, as it deems appropriate.
 
ITEM 11. EXECUTIVE COMPENSATION.
 
Summary Compensation Table
 
The following table summarizes all compensation recorded by us in each of the last two completed fiscal years for:
 
 
●
all individuals serving as our principal executive officer or acting in a similar capacity during fiscal 2024;
 
 
●
our two most highly compensated named executive officers at September 30, 2024 whose annual compensation exceeded $100,000; and
 
 
●
up to two additional individuals for whom disclosure would have been made in this table but for the fact that the individual was not serving as a named executive officer of our company at September 30, 2024.
 
Name and Principal Position
  
Year
  
Salary ($)
    
Bonus ($)
    
Stock
Awards
($) (1)
    
Options
Awards
($) (1)
    
Non-equity
incentive
plan
compensation
($)
    
Non-qualified
deferred
compensation
earnings ($)
    
All other
compensation
($)
    
Total ($)
  
                                                                     
Ronan Kennedy,
  
2024
     275,000       -       -       -       -       -       -       275,000  
CEO and CFO
  
2023
     275,000       -       -       -       -       -       -       275,000  
                                                                     
Bradley Whitford
  
2024
     181,375               -       -       -       -       -       181,375  
Chief Accounting Officer (2)
  
2023
     185,750       -       3,510       2,175       -       -       -       191,435  
                                                                     
Kevin MacDermott (3)
  
2023
     109,615               -       -       -       -       -       109,615  
 
(1)
Represents the grant date value of the options and awards granted during the years presented, determined in accordance with FASB ASC Topic 718. The assumptions made in the valuations of the awards are included in Note 9 of the notes to our consolidated financial statements appearing in our 2024 10-K.
(2)
Mr. Whitford commenced serving as our Chief Accounting Officer in March 2024 and since 2021 is an employee of the Company.
(3)
Mr. MacDermott commenced serving as our President on May 16, 2022 and resigned on February 26, 2023.
 
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Executive Employment Agreements
 
T. Ronan Kennedy. Mr. Kennedy is currently an at-will officer of the Company. Effective October 1, 2021, the Company entered into an Executive Employment Agreement with Mr. Kennedy to serve as our Chief Financial Officer and Chief Operating Officer (the “Kennedy Employment Agreement”) which expired in 2023. The material terms of the agreement were as follows:
 
Term:
  
One year, with the option of extending for additional one-year terms by mutual consent of the parties upon 60 day’s prior notice by us.
     
Annual base salary:
  
$275,000, an increase of $25,000 from his initial annual base salary.
     
Restricted stock awards and stock options:
  
As additional compensation on the effective date of the agreement we granted him (i) a restricted stock award of an aggregate of 556 shares of our common stock vesting subject to continued employment on January 1, 2022, and (ii) five-year stock options to purchase 1,667 shares of our common stock at an exercise price of $88.20 per share, vesting subject to continued employment on October 1, 2022.
     
   
Under Mr. Kennedy’s employment agreement dated October 1, 2021 we granted Mr. Kennedy: (i) a restricted stock award of 1,112 shares of our common stock, and (ii) 10 year stock options to purchase 7,778 shares of our common stock, vesting subject to continued employment as follows: (A) 2,223 shares at an exercise price of $157.50 per share which have vested; (B) an additional 2,778 shares at an exercise price of $225.00 per share which have vested; and (B) an additional 2,778 shares at an exercise price of $292.50 per share, which have also vested.
     
Performance bonus:
  
Mr. Kennedy is eligible for a performance bonus payable in a combination of cash and awards of common stock, to be based upon his relative achievement of annual performance goals to be established by our board of directors upon recommendation of the Compensation, Corporate Governance and Nominating Committee.
     
Discretionary bonus:
  
The Compensation, Corporate Governance and Nominating Committee will review his performance on an annual basis, and in connection with such annual review, Mr. Kennedy may be entitled to receive an annual discretionary bonus in such amount as may be determined by our board of directors, upon the recommendation of the committee, in its sole discretion.
     
Other benefits:
  
Mr. Kennedy is entitled to participate in all benefit programs we offer our employees, reimbursement for business expenses and four weeks of paid vacation.
     
Claw back provision:
  
Any incentive-based compensation, or any other compensation, paid to Mr. Kennedy pursuant to the terms of the Kennedy Employment Agreement, or otherwise, is subject to recovery under any law, government regulation or stock exchange listing requirement, and will be subject to such deductions and claw back as may be required to be made pursuant to such law, government regulation or stock exchange listing requirement, or any policy adopted by cbdMD pursuant to any such law, government regulation or stock exchange listing requirement.
     
Termination:
  
The Kennedy Employment Agreement will terminate upon his death or as follows:
     
Disability
  
If we should terminate the Kennedy Employment Agreement as a result of his disability (as defined in the agreement) he is entitled to his base salary for a period of three months following the date of termination.
     
By cbdMD for cause or by Mr. Kennedy without cause:
  
We may terminate the Kennedy Employment Agreement without notice for “cause” (as defined in the Kennedy Employment Agreement) following a 30 day cure period. If we should terminate the Kennedy Employment Agreement for cause, he is not entitled to any compensation or severance benefits. Mr. Kennedy may also terminate the agreement without cause. In such event, he is not entitled to any compensation or severance benefits.
 
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By cbdMD other than for cause and not in connection with a change of control:
  
We may terminate the Kennedy Employment Agreement upon 30 days’ notice to Mr. Kennedy. In such event, he is entitled to receive his base salary and executive benefits through the remaining period of the then current term of the agreement, and all granted but unvested options or restricted shares shall become fully vested on the date of termination and may be exercised by him for a period of 12 months following the date of termination.
     
Constructive termination:
  
Constructive termination of the Kennedy Employment Agreement shall occur if we materially breach the agreement, a successor company to us fails to assume the obligations under the agreement, or a material change in Mr. Kennedy’s duties and responsibilities occurs, all subject to waiver by him. In such event, subject to a 30-day cure period, he is entitled to the same compensation as if we had terminated the agreement without cause.
     
Change of control:
  
If the Kennedy Employment Agreement is terminated not for cause within two years of a change of control of cbdMD (as defined in the agreement), or in the 90 days prior to a change of control, we are obligated to pay Mr. Kennedy an amount equal to the greater of (i) 1.5 multiplied by his then base salary, or (ii) the base salary remaining to be paid during the then current term of the agreement, payable in a lump-sum payment on the termination date.
     
Non-compete, confidentially and indemnification:
  
The Kennedy Employment Agreement contains customary non-compete, for a period of one year following the date of termination, confidentiality and indemnification provisions.
     
 
Bradley Whitford. Mr. Whitford is an at-will employee with a base salary of $200,000 and eligible for discretionary performance bonuses and participation in the Company’s equity compensation plans.
 
Equity Compensation Plans
 
On June 2, 2015, our board of directors and shareholders adopted our 2015 Equity Compensation Plan (the “2015 Plan”) initially covering 26,112 shares of common stock. At the 2019 annual meeting of our shareholders, our shareholders approved an increase in the based number of shares of our common stock reserved for grants under the plan to 45,445 shares. The 2015 Plan also contains an “evergreen formula” pursuant to which the number of shares of common stock available for issuance under the 2015 Plan will automatically increase on the first trading day of October each calendar year during the term of the 2015 Plan by an amount equal to 1% of the total number of shares of common stock outstanding on the last trading day in September of the immediately preceding calendar year, up to a maximum annual increase of 2,223 shares of common stock.
 
On January 8, 2021, our board of directors approved the 2021 Equity Compensation Plan (the “2021 Plan”) and our shareholders approved the 2021 at our 2021 annual meeting. The 2021 Plan reserves 111,112 shares of our common stock for issuance pursuant to the terms of the plan upon the grant of plan options, restricted stock awards, or other stock-based awards granted under the 2021 Plan. The 2021 Plan also contains an “evergreen formula” pursuant to which the number of shares of common stock available for issuance under the 2021 Plan will automatically increase on October 1 of each calendar year during the term of the 2021 Plan, beginning with calendar year 2022, by an amount equal to 1% of the total number of shares of common stock outstanding on September 30 of the such calendar year, up to a maximum of 5,556 shares.
 
The purpose of each of the 2015 Plan and 2021 Plan (collectively, the “Plans”) is to enable us to offer to our employees, officers, directors and consultants, whose past, present and/or potential contributions to our company have been, are or will be important to our success, an opportunity to acquire a proprietary interest in our company. The Plans are administered by our Compensation, Corporate Governance and Nominating Committee.
 
7
Table of Contents
 
Securities Authorized for Issuance under Equity Compensation Plans
 
The following table sets forth securities authorized for issuance under any equity compensation plans approved by our shareholders as well as any equity compensation plans not approved by our shareholders as of September 30, 2024.
 
Plan category
  
Number of securities to be issued upon exercise of outstanding options, warrants and rights
    
Weighted average exercise price of outstanding options, warrants and rights ($)
    
Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column)
  
                         
Plans approved by our shareholders
                        
2015 Plan
     23,358       187.09       18,617  
2021 Plan
     20,678       51.75       63,958  
                         
Plans not approved by shareholders
     -       -       -  
 
Please see Note 9 of the notes to our audited consolidated financial statements appearing in our 2024 10-K for more information on our 2015 Plan and 2021 Plan.
 
Outstanding Equity Awards at Year End
 
The following table provides information concerning unexercised options, stock that has not vested and equity incentive plan awards for each named executive officer outstanding as of September 30, 2024.
 
Name
  
Number of securities underlying unexercised options (#) exercisable
   
Number of securities underlying unexercised options (#) unexercisable
   
Equity incentive plan awards: Number of securities underlying unexercised
unearned options
   
Option exercise
price
($)
  
Option expiration
date
  
Number of shares of unit of stock that have not vested
(#)
   
Market value of shares or
units of stock that have not vested
($)
   
Equity incentive plan awards: Number of unearned
shares, units or other rights that have not vested
    
Equity incentive plan awards:
Market of payout value of unearned
shares, units or
other rights that have not vested
  
                                                                   
T. Ronan Kennedy
     2,223       -       -       157.50  
10/1/2025
     -       -       -       -  
 
     2,778       -       -       225.00  
10/1/2025
     -       -       -       -  
      2,778       -       -       292.50  
10/1/2025
     -       -       -       -  
      1,667       -       -       88.65  
10/1/2026
     -       -       -       -  
Bradley Whitford
     334       -       -       45.00  
1/27/2027
     -       -       -       -  
      334       -       -       10.53  
1/9/2028
     -       -       -       -  
 
8
Table of Contents
 
Compensation of Directors
 
In March 2021, after reviewing the results of an independent compensation study on public company executive and board compensation, the Compensation, Corporate Governance and Nominating Committee of our board of directors adopted a new compensation program for our independent directors. For the 2024 board term which began in March 2024, the components are set forth below:
 
Annual retainer
   $ 35,000  
Stock award, 4,000 shares of common stock, vesting quarterly on June 30, 2024, September 30, 2024, December 31, 2024 and March 31, 2025
        
Common stock option grant, 2,000 shares, five year term, strike price fair market value on the grant date, vesting immediately
        
         
Additional committee chairperson annual compensation:
        
Chairman of the Board of Directors
   $ 22,500  
Audit Committee
   $ 17,000  
Compensation, Corporate Governance and Nominating Committee
   $ 7,000  
         
Additional committee membership annual compensation (excluding committee chairperson):
        
Audit Committee
   $ 8,500  
Compensation, Corporate Governance and Nominating Committee
   $ 4,000  
No additional compensation for meeting attendance
        
 
Our non-executive employee director, Dr. Sibyl Swift, received the stock award and option grant disclosed above for her services as a member of our board of directors in fiscal 2024.
 
The following table sets forth the compensation paid or earned for fiscal 2024 by our independent directors and our non-management employee director.
 
Name
  
Fees
earned or
paid in
cash ($)
    
Stock
Awards
($)
(1)
    
Options
Awards
($)
(1)
    
Non equity
incentive plan
compensation ($)
    
Non-qualified deferred compensation earnings ($)
    
All other compensation ($)
    
Total ($)
  
                                                         
William F. Raines, III
   $ 56,000     $ 3,440     $ 1,074       -       -       -     $ 60,514  
Bakari Sellers
   $ 50,500     $ 3,440     $ 1,074       -       -       -     $ 55,014  
Scott G. Stephen
   $ 70,000     $ 3,440     $ 1,074       -       -       -     $ 74,514  
Dr. Sibyl Swift (2)
   $ -     $ 3,440     $ 1,074       -       -       -     $ 4,514  
 
(1)
Represents the grant date value of the options and awards granted during the years presented, determined in accordance with FASB ASC Topic 718. The assumptions made in the valuations of the awards are included in Note 9 of the notes to our consolidated financial statements appearing in our 2024 10-K.
 
(2)
Only includes compensation specific to board role and excludes compensation as VP of Scientific and Regulatory Affairs and for consulting services. See “Item 13. Certain Relationships and Related Transaction, and Director Independence.”
 
The Company’s Policies and Practices Related to the Grant of Certain Equity Awards Close in Time to the Release of Material Nonpublic Information
 
The Company does not have any formal policy that requires the Company to grant, or avoid granting, equity-based compensation to its executive officers at certain times. Consistent with its annual compensation cycle, the Compensation, Corporate Governance and Nominating Committee has for several years granted annual equity awards to its executive officers and directors following the Company’s annual meeting. The timing of any equity grants to executive officers in connection with new hires, promotions, or other non-routine grants is tied to the event giving rise to the award (such as an executive officer’s commencement of employment or promotion effective date). As a result, in all cases, the timing of grants of equity awards, including stock options, occurs independent of the release of any material nonpublic information, and the Company does not time the disclosure of material nonpublic information for the purpose of affecting the value of equity-based compensation.
 
No stock options were issued to executive officers in 2024 during any period beginning four business days before the filing of a periodic report or current report disclosing material non-public information and ending one business day after the filing or furnishing of such report with the SEC.
 
Anti-Hedging Policies
 
Under the Company’s Insider Trading Policy, all officers, directors and employees are prohibited from engaging in hedging, pledging or shorting transactions.
 
9
Table of Contents
 
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS.
 
As of January 20, 2025, we had 6,262,833 shares of our common stock issued and outstanding. The following table sets forth information known to us as of January 20, 2025 relating to the beneficial ownership of shares of our common stock by:
 
 
❖
each person who is known by us to be the beneficial owner of more than 5% of our outstanding common stock;
 
 
❖
each director;
 
 
❖
each named executive officer; and
 
 
❖
all named executive officers and directors as a group.
 
Unless otherwise indicated, the address of each beneficial owner in the table set forth below is care of 2101 Westinghouse Blvd., Suite A, Charlotte, NC 28273. We believe that all persons, unless otherwise noted, named in the table have sole voting and investment power with respect to all shares of our common stock shown as being owned by them. Under securities laws, a person is considered to be the beneficial owner of securities owned by him (or certain persons whose ownership is attributed to him) and that can be acquired by him within 60 days from January 25, 2025, including upon the exercise of options, warrants or convertible securities. We determine a beneficial owner’s percentage ownership by assuming that options, warrants or convertible securities that are held by him, but not those held by any other person, and which are exercisable within 60 days of the that date, have been exercised or converted.
 
Name of Beneficial Owner
  
No. of Shares
Beneficially Owned
    
% of
Class
  
                 
Directors and Officers
                
T. Ronan Kennedy (1)
     17,623       *  
William F. Raines, III (2)
     85,314       1.4%  
Bakari Sellers (3)
     8,438       *  
Scott G. Stephen (4)
     9,138       *  
Dr. Sibyl Swift (5)
     7,008       *  
Brad Whitford (6)
     1,114       *  
All names executive officers and directors as a group (six persons)
     128,635       2.1%  
R. Scott Coffman (7)
     387,695       6.2%  
Marianne & Lloyd Lambeth
     373,599       6.0%  
*         Less than 1%
 
(1)
The number of shares of our common stock beneficially owned by Mr. Kennedy includes (a) 6,632 shares of common stock, (b) 1,545 shares of common stock issuable upon conversion of 41,765 shares of our Series A Preferred and (c) 9,446 shares of common stock underlying stock options with exercise prices ranging from $88.65 to $292.5 per share. Includes shares Mr. Kennedy holds through the CRED Trust, which Mr. Kennedy serves as trustee and holds voting and dispositive control.
 
(2)
The number of shares of common stock beneficially owned by Mr. Raines includes (a) 3,365 shares held by him directly; (b) 4,891 shares of common stock underlying vested stock options with exercise prices ranging from $0.93 to $243.45 per share and (c) 2,058 shares held of record by Board Investor Group II, LLC that Mr. Raines controls voting. Mr. Raines disclaims beneficial ownership of all securities held by Board Investors Group II, LLC except to the extent of his pecuniary interest therein. Also includes 75,000 shares held of record by Majik Medicine that Mr. Raines controls voting through August of 2025. Excludes 1,000 shares of common stock underlying unvested restricted stock awards.
 
(3)
The number of shares of our common stock beneficially owned by Mr. Sellers includes 3,391 shares of common stock as well as 5,047 shares of our common stock underlying vested stock options with exercise prices ranging from $0.93 to $243.45 per share. Excludes 1,000 shares of common stock underlying unvested restricted stock awards.
 
(4)
The number of shares of our common stock beneficially owned by Mr. Stephen includes 4,247 shares of common stock as well as 4,891 shares of common stock underlying vested stock options with exercise prices ranging from $0.93 to $243.45 per share. Excludes 1,000 shares of common stock underlying unvested restricted stock awards.
 
(5)
The number of shares of our common stock beneficially owned by Dr. Swift includes 3,340 shares of common stock as well as 3,668 common stock options with exercise prices ranging from $0.93 to $45.00. Excludes 1,000 shares of common stock underlying unvested restricted stock awards.
 
(6)
The number of shares of our common stock beneficially owned by Mr. Whitford includes 445 shares of common stock as well as 668 shares of common stock underlying vested stock options with exercise prices ranging from $10.35 to $45.00.
 
10
Table of Contents
 
(7)
The number of outstanding shares of our common stock beneficially owned by Mr. Coffman includes: (a) 81,867 shares held of record by Edge of Business, LLC (“Edge of Business”); and (b) 305,828 shares held of record by the Coffman Family Office, LLC (“Coffman Family Office”). Except as set forth herein, Mr. Coffman has voting and dispositive control over securities owned of record by Edge of Business. Coffman Management, LLC (“Coffman Management”) is the Manager of Coffman Family Office and Mr. Coffman is the Manager of Coffman Management. Mr. Coffman disclaims beneficial ownership of the securities held of record by each of these entities except to the extent of his pecuniary interest therein.
 
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE.
 
Dr. Sibyl Swift, a member of the board of directors, served as our Chief Science Officer and VP Regulatory Affairs and the co-chair of cbdMD Therapeutics, LLC, from March 2021 to August 2024. In addition to any compensation she received as a board member, Dr. Swift received a salary of $240,000 for fiscal 2024 and participated in the Company’s normal benefit plan through September 3, 2024. Dr. Swift remains engaged as a consultant to the Company on a month to month basis with a monthly retainer of $8,000.
 
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES.
 
The following table shows the fees that were billed for the audit and other services provided for fiscal 2024 and fiscal 2023:
 
   
Fiscal 2024
    
Fiscal 2023
  
                 
Audit Fees
   $ 231,653     $ 240,000  
Audit Related Fees
   $ 27,289     $ 89,069  
Tax Fees
   $ 39,200     $ 26,000  
All other Fees     -       -  
Total
   $ 298,142     $ 355,069  
 
Audit Fees — This category includes the audit of our annual financial statements and services that are normally provided by the independent registered public accounting firm in connection with engagements for those fiscal years. This category also includes advice on audit and accounting matters that arose during, or because of, the audit or the review of interim financial statements.
 
Audit-Related Fees — This category consists of assurance and related services by the independent registered public accounting firm that are reasonably related to the performance of the audit or review of our financial statements and are not reported above under “Audit Fees.” The services for the fees disclosed under this category include consultation regarding our correspondence with the SEC, other SEC filings and other accounting consulting.
 
Tax Fees — This category consists of professional services rendered by our independent registered public accounting firm for tax compliance and tax advice. The services for the fees disclosed under this category include tax return preparation and technical tax advice.
 
Pre-Approval Policy
 
Our board of directors has adopted a procedure for pre-approval of all fees charged by our independent registered public accounting firm. Under the procedure, the Audit Committee of the board approves the engagement letter with respect to audit, tax and review services. Other fees are subject to pre-approval by the Audit Committee of the board. The audit and tax fees paid to the auditors with respect to the fiscal 2024 and fiscal 2023 were approved by the Audit Committee of the board of directors.
 
PART IV
 
ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES.
 
(a)
(1) Financial statements.
 
The consolidated financial statements and Report of Independent Registered Accounting Firm begin on page 32 of the Original Filing.
 
(2) Financial statement schedules
 
All schedules for which provision is made in the applicable accounting regulations of the SEC are either not required under the related instructions, are not applicable (and therefore have been omitted), or the required disclosures are contained in the consolidated financial statements herein.
 
(3) Exhibits.
 
The exhibits that are required to be filed or incorporated by reference herein are listed in the Exhibit Index.
 
(4) The Auditor Firm ID for our external auditors, Cherry Bekaert LLP, is 677 and they are located in Charlotte, NC.
 
ITEM 16. FORM 10-K SUMMARY.
 
None.
 
11
Table of Contents
 
EXHIBIT INDEX
 
       
Incorporated by
Reference
  
Filed or Furnished Herewith
No.
  
Exhibit Description
  
Form
  
Date Filed
  
Number
    
                     
   
8-K
  
5/3/23
  
1.1
    
   
8-K
  
12/4/18
  
2.1
    
   
10-Q
  
2/14/19
  
2.2
    
   
10-Q
  
2/14/19
  
2.3
    
   
10-Q
  
2/14/19
  
2.4
    
   
10-Q
  
2/14/19
  
2.5
    
   
1-A
  
9/18/17
  
2.1
    
   
1-A
  
9/18/17
  
2.2
    
   
1-A
  
9/18/17
  
2.3
    
   
1-A
  
9/18/17
  
2.4
    
   
1-A
  
9/18/17
  
2.5
    
   
1-A
  
9/18/17
  
2.6
    
   
8-K
  
4/29/19
  
3.7
    
   
8-A
  
10/11/19
  
3.1(f)
    
   
1-A
  
9/18/17
  
3.7
    
   
1-A
  
9/18/17
  
3.8
    
   
1-A
  
9/18/17
  
3.9
    
   
8-K
  
1/14/21
  
10.1
    
   
8-K
  
5/14/19
  
4.1
    
   
8-K
  
10/16/19
  
4.1
    
   
8-K
  
1/10/20
  
4.1
    
   
8-K
  
12/9/20
  
4.1
    
   
8-K
  
6/30/21
  
4.1
    
   
8-K
  
5/3/23
  
4.1
    
   
8-K
  
2/2/24
  
4.1
    
   
1-A
  
9/18/17
  
6.21
    
   
10-Q
  
8/14/19
  
10.1
    
   
10-Q
  
2/13/20
  
10.1
    
   
8-K
  
4/21/21
  
10.1
    
   
8-K
  
4/21/21
  
10.2
    
   
8-K
  
7/27/21
  
10.1
    
   
8-K
  
10/5/21
  
10.1
    
   
8-K
  
1/18/22
  
10.1
    
   
10-Q
  
5/13/22
  
10.21
    
   
8-K
  
6/13/22
  
10.1
    
   
10-Q
  
8/11/22
  
10.22
    
   
S-1
  
3/13/23
  
10.17
    
   
S-1
  
3/13/23
  
10.20
    
   
8-K
  
3/2/23
  
10.1
    
   
8-K
  
3/2/23
  
10.2
    
   
8-K
  
2/2/24
  
10.1
    
 
12
Table of Contents
 
       
Incorporated by
Reference
  
Filed or Furnished Herewith
No.
  
Exhibit Description
  
Form
  
Date Filed
  
Number
    
   
8-K
  
2/2/24
  
10.2
    
   
8-K
  
2/2/24
  
10.3
    
   
8-K
  
3/18/24
  
10.1
    
   
8-K
  
3/18/24
  
10.2
    
   
8-K
  
11/26/24
  
10.1
    
   
1-A
  
9/18/17
  
15.1
    
   
10-K
  
12/22/23
  
19.1
    
   
10-K
  
12/17/21
  
21.1
    
               
#Filed
               
#Filed
               
#Filed
               
#Filed
               
Filed
               
Filed
               
#Furnished
   
10-K
  
12/22/23
  
97.1
    
101 INS
  
Inline XBRL Instance Document
              
#Filed
101 SCH
  
Inline XBRL Taxonomy Extension Schema
              
#Filed
101 CAL
  
Inline XBRL Taxonomy Extension Calculation Linkbase
              
#Filed
101 LAB
  
Inline XBRL Taxonomy Extension Label Linkbase
              
#Filed
101 PRE
  
Inline XBRL Taxonomy Extension Presentation Linkbase
              
#Filed
101 DEF
  
Inline XBRL Taxonomy Extension Definition Linkbase
  
104
  
Cover Page Interactive Data File (embedded within the Inline XBRL and contained in Exhibit 101)
  
 
 
+
Indicates management contract or compensatory plan.
 
*
Certain exhibits and schedules have been omitted in accordance with Item 601(a)(5) of Regulation S-K. The registrant agrees to furnish supplementally a copy of any omitted exhibit or schedule to the Commission upon its request.
 
#
Previously filed (or with respect to Exhibit 32.1 furnished) with our 2024 10-K, originally filed with the SEC on December  18, 2024.
 
13
Table of Contents
 
SIGNATURES
 
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Date: January 27, 2025
cbdMD, Inc.
       
 
By:
/s/ T. Ronan Kennedy
  
   
T. Ronan Kennedy
  
   
Chief Executive Officer (Principal Executive Officer)
  
   
   
Date: January 27, 2025
cbdMD, Inc.
       
 
By:
/s/ T. Ronan Kennedy
  
   
T. Ronan Kennedy
  
   
Chief Financial Officer (Principal Financial Officer)
  
       
Date: January 27, 2025
cbdMD, Inc.
  
       
 
By:
/s/ Brad Whitford
  
   
Brad Whitford
  
   
Chief Accounting Officer
  
 
14

EXHIBIT 31.3

 

Rule 13a-14(a)/15d-14(a) Certification

 

I, T. Ronan Kennedy, certify that:

 

1.

I have reviewed this report on Form 10-K/A for the year ended September 30, 2024 of cbdMD, Inc.;
 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
 

 

 

Dated: January 27, 2025

/s/ T. Ronan Kennedy

  
 

T. Ronan Kennedy, Chief Executive Officer (Principal executive officer)

  

 

 

 

EXHIBIT 31.4

 

Rule 13a-14(a)/15d-14(a) Certification

 

I, T. Ronan Kennedy, certify that:

 

1.

I have reviewed this report on Form 10-K/A for the year ended September 30, 2024 of cbdMD, Inc.;
 

 

2.

Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report.
 

 

 

Dated: January __, 2025

/s/ T. Ronan Kennedy

  
 

T. Ronan Kennedy, Chief Financial Officer and principal financial officer

  

 

 
v3.24.4
Document And Entity Information - USD ($)
 12 Months Ended
Sep. 30, 2024
Dec. 16, 2024
Mar. 31, 2024
Document Information [Line Items]      
Entity, Registrant Name cbdMD, INC.    
Current Fiscal Year End Date --09-30    
Document, Fiscal Period Focus FY    
Document, Fiscal Year Focus 2024    
Document, Type 10-K/A    
Document, Annual Report true    
Document, Period End Date Sep. 30, 2024    
Document, Transition Report false    
Entity, File Number 001-38299    
Entity, Incorporation, State or Country Code NC    
Entity, Tax Identification Number 47-3414576    
Entity, Address, Address Line One 2101 Westinghouse Blvd., Suite A    
Entity, Address, City or Town Charlotte    
Entity, Address, State or Province NC    
Entity, Address, Postal Zip Code 28273    
City Area Code 704    
Local Phone Number 445-3060    
Entity, Well-known Seasoned Issuer No    
Entity, Voluntary Filers No    
Entity, Current Reporting Status Yes    
Entity, Interactive Data, Current Yes    
Entity, Filer Category Non-accelerated Filer    
Entity, Small Business true    
Entity, Emerging Growth Company false    
ICFR Auditor Attestation Flag false    
Document, Financial Statement Error Correction Flag false    
Entity, Shell Company false    
Entity, Public Float     $ 2,832,040
Entity, Common Stock Shares, Outstanding   5,539,124  
Amendment Description This Amendment No. 1 on Form 10-K/A (the “Amendment”) amends our Annual Report on Form 10-K for the fiscal year ended September 30, 2024 (the “2024 10-K”), originally filed with the Securities and Exchange Commission on December 18, 2024 (the “Original Filing”). We are filing this Amendment to amend Part III of the Original Filing to include the information required by and not included in Part III of the Original Filing because we no longer intend to file a definitive proxy statement which involves the election of directors within 120 days of the end of our fiscal year ended September 30, 2024. The information required by Part III was previously omitted from the Original Filing in reliance on General Instruction G(3) to Form 10-K, which permits the information in Part III to be incorporated in the Form 10-K by reference from a definitive proxy statement which involves the election of directors if such statement is filed no later than 120 days after the end of our fiscal year.   Part IV of the Original Filing is being amended solely to add as exhibits certain new certifications by our co-principal executive officers and our principal financial officer in accordance with Rule 13a-14(a) promulgated by the SEC under the Securities Exchange Act of 1934. Because no financial statements have been included in this Amendment and this Amendment does not contain or amend any disclosure with respect to Items 307 or 308 of Regulation S-K, paragraphs 3, 4 and 5 of the certifications have been omitted. We are not including the certificate under Section 906 of the Sarbanes-Oxley Act of 2002 because no financial statements have been included in this Amendment.   Except as described above, no other changes have been made to the Original Filing. The Original Filing continues to speak as of the date of the Original Filing, and we have not updated the disclosures contained therein to reflect any events which occurred at a date subsequent to the filing of the Original Filing other than as expressly indicated in this Amendment. Accordingly, this Amendment should be read in conjunction with the Original Filing and our other filings made with the SEC on or subsequent to December 18, 2024.    
Auditor Name Cherry Bekaert LLP    
Auditor Firm ID 677    
Auditor Location Charlotte, NC    
Amendment Flag true    
Entity, Central Index Key 0001644903    
Common Custom [Member]      
Document Information [Line Items]      
Title of 12(b) Security common    
Trading Symbol YCBD    
Security Exchange Name NYSE    
SeriesACumulativeConvertiblePreferredStock8 Custom [Member]      
Document Information [Line Items]      
Title of 12(b) Security 8% Series A Cumulative Convertible Preferred Stock    
Trading Symbol YCBDpA    
Security Exchange Name NYSE    
cbdMD (AMEX:YCBD)
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