What is wrong with CV Sciences(CVSI) company?

Provide a renewal report of the above company for its financial part.

Financial

• Restructure, Renegotiate, Merge

• Working Capital Management

  • Cash Flow, Liquidity, bank line availability

  • Breakeven Analysis

  • Sources of Funding

  • Debt Repayment Timing

Mention what is wrong with the financial part and provide a renewal plan for the same

What is wrong with CV Sciences(CVSI) company?

Provide a renewal report of the above company for its financial part.

Financial

• Restructure, Renegotiate, Merge

• Working Capital Management

  • Cash Flow, Liquidity, bank line availability

  • Breakeven Analysis

  • Sources of Funding

  • Debt Repayment Timing

Mention what is wrong with the financial part and provide a renewal plan for the same

CASH FLOW

CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
OPERATING ACTIVITIES
Net loss	$ (6,697)	$ (12,990)
Adjustments to reconcile net loss to net cash flows used in operating activities:
Depreciation and amortization	746	629
Stock-based compensation	2,375	3,116
Non-cash lease expense, net	284	455
Gain on debt extinguishment	(2,945)	0
Gain on lease termination	(906)	(352)
Deferred taxes	0	(158)
Loss on sale of property and equipment	0	176
Other	220	240
Change in operating assets and liabilities:
Accounts receivable, net	(695)	717
Inventory	(36)	1,858
Prepaid expenses and other	916	2,640
Accounts payable and accrued expenses	417	(2,163)
Net cash used in operating activities	(6,321)	(5,832)
INVESTING ACTIVITIES
Purchases of property and equipment	(35)	(794)
Net cash flows used in investing activities	(35)	(794)
FINANCING ACTIVITIES
Proceeds from debt	0	2,906
Repayment of unsecured debt	(721)	0
Proceeds from issuance of common stock	4,212	0
Proceeds from exercise of stock options	0	176
Net cash flows provided by financing activities	3,491	3,082
Net decrease in cash, cash equivalents and restricted cash	(2,865)	(3,544)
Cash, cash equivalents and restricted cash, beginning of period	4,525	9,608
Cash, cash equivalents and restricted cash, end of period	1,660	6,064
Supplemental cash flow disclosures:
Income taxes paid	0	18
Supplemental disclosures of non-cash transactions:
Purchase of property and equipment in accounts payable and accrued expenses	0	239
Sale of property and equipment in exchange for note receivable (recorded in prepaid expenses and other) and inventory	0	675
Derecognition of operating ROU lease asset related to operating lease termination	(2,773)	(4,704)
Forgiveness of PPP loan	$ (2,945)	$ 0

BALANCE SHEET

CONDENSED BALANCE SHEETS (UNAUDITED) - USD ($) $ in Thousands	Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents	$ 1,660	$ 4,024
Restricted cash	0	501
Accounts receivable, net	1,759	1,126
Inventory	8,876	8,840
Prepaid expenses and other	1,919	2,372
Total current assets	14,214	16,863
Property & equipment, net	2,148	2,877
Operating lease assets	0	3,057
Intangibles, net	3,730	3,730
Goodwill	2,788	2,788
Other assets	730	1,310
Total assets	23,610	30,625
Current liabilities:
Accounts payable	1,509	1,677
Accrued expenses	10,802	9,805
Operating lease liability - current	0	680
Current portion of long-term debt	0	2,174
Total current liabilities	12,311	14,336
Operating lease liability	0	3,467
Debt	0	1,453
Deferred tax liability	157	157
Total liabilities	12,468	19,413
Commitments and contingencies (Note 8)
Stockholders' equity
Preferred stock, par value $0.0001; 10,000 shares authorized; no shares issued and outstanding	0	0
Common stock, par value $0.0001; 190,000 shares authorized; 109,946 and 100,664 shares issued and outstanding as of September 30, 2021 and December 31, 2020, respectively	11	10
Additional paid-in capital	81,749	75,123
Accumulated deficit	(70,618)	(63,921)
Total stockholders' equity	11,142	11,212
Total liabilities and stockholders' equity	$ 23,610	$ 30,625

INCOME STATEMENT

CONDENSED STATEMENTS OF OPERATIONS (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Income Statement [Abstract]
Product sales, net	$ 5,107	$ 5,564	$ 15,079	$ 19,230
Cost of goods sold	2,749	3,106	8,073	10,442
Gross Profit	2,358	2,458	7,006	8,788
Operating expenses:
Research and development	410	412	821	2,667
Selling, general and administrative	4,928	5,197	15,788	19,249
Total operating expenses	5,338	5,609	16,609	21,916
Operating Loss	(2,980)	(3,151)	(9,603)	(13,128)
Other Expenses [Abstract]
Gain on debt extinguishment	(2,945)	0	(2,945)	0
Interest expense, net	5	6	28	0
Loss before income taxes	(40)	(3,157)	(6,686)	(13,128)
Income tax expense (benefit)	0	0	11	(138)
Net Loss	$ (40)	$ (3,157)	$ (6,697)	$ (12,990)
Weighted average common shares outstanding, basic (shares)	109,115	99,950	107,099	99,831
Weighted average common shares outstanding for diluted (shares)	109,115	99,950	107,099	99,831
Net loss per common share, basic (in USD per share)	$ (0.00)	$ (0.03)	$ (0.06)	$ (0.13)
Net loss per common share, diluted (in USD per share)	$ (0.00)	$ (0.03)	$ (0.06)	$ (0.13)