We continue to aggressively manage our overall cash position with improved cash collections on our outstanding AR and daily management of our inventory and vendor payables. We continue to adjust our cost structure to be in line with our expected revenue, both overarching goal of generating positive operating cash on a continuous basis. Our inventory was $5.7 million at the end of the quarter compared to $6.6 million at the end of the year as we continue to focus on efficient cash management and converting our raw materials into cash. Our raw materials mostly consists of hemp oil, which we previously purchased and continue to convert into finished products. Our raw material balance has decreased from $3.6 million at year-end to $2.9 million as of September 30, 2023.
Also, in April 2023, we extinguished our note payable with Streeterville, and are now essentially debt-free. In addition, we have working capital of $2.4 million. With our improved balance sheet and our reduced cost structure in place, we have the financial flexibility to continue executing our plan and look forward to improving trends as the year unfolds. Now, I’ll turn the call back over to Joe.
Joseph Dowling: Joerg, thank you. As Joerg and I have discussed this morning, in spite of the challenging environment, we will continue to move the company to profitability and positive cash flow in the near term. Our Q3 results show progress not only in growing revenue but doing so profitably. The contraction and consolidation of our industry continues to be a positive trend as the number of brands and products on shelf and online both declining significantly, allowing us to increase market share in both B2B and B2C channels. As I mentioned in my earlier remarks, we are doing everything possible to advance sensible regulation at both the state and federal level. We are working closely with our industry peers and advocacy groups to bring a unified voice to Congress and FDA.
Our drug development program in treatment of smokeless tobacco use and addiction remains a valuable asset of the company, with patent already granted in the United States, Canada, Australia, Japan and 6 EU countries. We continue to believe that this drug development program has significant value. And even though we have paused development of this program internally, we continue to see collaboration partners on this program. We are excited about the short- and long-term opportunity for our company, the CBD category and the global health and wellness opportunity that we are pursuing as part of our M&A strategy. We are working through the final details of the M&A transaction I mentioned earlier in my remarks and are looking to close before the end of the year.
We are continuing to look at other domestic M&A opportunities and select international opportunities. We are making continuous improvement to ensure that we are scaled properly, operating efficiently and are focused on adding long-term shareholder value. We will continue to focus on our customers, retail partners and new product and market development as we continue to position the company for long-term success. Thank you very much for listening this morning. I will now turn the call back over to the operator for any calls from the analyst community.
Operator:
Joseph Dowling: Thank you. I would like to thank everyone for being a supporter of CV Sciences and our great team and products. We look forward to speaking again soon. Thank you.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
