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Note 6 - Contingent Liability | 12 Months Ended
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Sep. 30, 2024
Notes to Financial Statements |
Business Combination Disclosure [Text Block] | NOTE 6 – CONTINGENT LIABILITY Pursuant to a merger agreement entered into in 2018, the Company had a contractual obligation to issue 338,889 shares of its common stock, after approval by its shareholders, to the members of Cure Based Development, issued in two tranches 144,445 shares and 194,945 shares, both of which were subject to leak out provisions, and the unrestricted voting rights to 194,445 tranche of shares which vested over a five year period and were subject to a voting proxy agreement. The contractual obligations and earn out provision were accounted for as a contingent liability and fair value was determined using Level 3 inputs, as estimating the fair value of these contingent liabilities require the use of significant and subjective inputs that may and are likely to change over the duration of the liabilities with related changes in internal and external market factors. The agreement also provided that an additional 338,889 Earnout Shares would be issued as part of the consideration, upon the satisfaction of certain aggregate net revenue criteria by cbdMD within 60 months following the closing date of the merger
Aggregate Net Revenues |  | Shares Issued/ Each $ of Aggregate Net Revenue Ratio |
$1 - $20,000,000 |  |  | 0.004236111 |
$20,000,001 - $60,000,000 |  |  | 0.002118056 |
$60,000,001 - $140,000,000 |  |  | 0.001059028 |
$140,000,001 - $300,000,000 |  |  | 0.005295139 |
The Company determined the final Earnout shares to be issued were 19,818 and were issued on January 11, 2024. There is no further Earnout obligation.

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