LAS VEGAS, May 15, 2023 (GLOBE NEWSWIRE) -- Healthy Extracts Inc. (OTCQB: HYEX), a leading developer and distributor of plant-based nutraceutical products for heart and brain health, reported results for the first quarter ended March 31, 2023. All comparisons are to the year-ago period unless otherwise noted.
First Quarter Financial Highlights
First Quarter Operational Highlights
Management Commentary
“In Q1, our top-line growth was driven by a continued ramp up in sales, especially through our direct-to-consumer channels, which included continued growth in recurring revenue from product subscriptions,” commented Healthy Extracts president, Duke Pitts. “These results demonstrate how we have established a solid foundation for addressing the fast-growing heart health supplement market with published studies that support our brain health claims.
“In preparation for completing our plans to acquire Hyperion and Online Publishing & Marketing, our EVP of sales and marketing, Scott Landers, has begun the initial phase of integrating our companies. We believe these steps will help ensure optimal synergies and efficiencies upon the closing of the transaction, with this driving a substantial increase in revenue from additional product sales.
“We are currently preparing for some major new product launches later this year, including the anticipated Whitney Johns ‘gut health’ gel pack. This product will enable us to address the very large and growing global gut health market that is projected to grow at a 7.9% CAGR to reach nearly $72 billion by 2027 according to data published by Fortune Business Insights.
“Our other new products under development include natural solutions for optimal sleep breathing, weight loss and glucose management. We expect these to be quickly adopted by our extensive existing customer base who value plant-based products that support their health without negative side effects.
“Our new gel pack format for brain and gut health makes their formulations easier and more convenient to consume, with the added benefits of easier digestion and greater absorption. We see our exclusive access to this patented gel technology creating many higher-margin, multi-million-dollar market opportunities and an added competitive advantage.
“As we continue to focus on increasing our recurring revenue stream from subscriptions and maintaining our traditional high gross margin, we anticipate both our top and bottom-line to expand over the coming quarters.
“We will also continue to pursue strategic acquisitions that would complement our portfolio of plant-based products and leverage our broad distribution channels. Such potential transactions would build upon our acquisitions of BergametNA™ for heart health in 2019 and Ultimate Brain Nutrients™ for brain health in 2020. We believe these acquisitions have laid the foundation for continued growth and broadening market reach.”
First Quarter Financial Summary
Net revenue in the first quarter of 2023 increased 11% to $615,000 from $552,000 in the same year-ago quarter, primarily due to product line and distribution channel expansion.
Gross profit totaled $278,000 or 45.2% of net revenue as compared to $325,000 or 58.9% of net revenue in the same year-ago quarter. The decrease in gross margin was a result of the increase in manufacturing and freight costs. Gross margins are expected to return to normal levels in the second half of 2023.
Operating expenses increased $313,000 to $683,000 compared to the same year-ago quarter. The increase in operating expenses was due to increased general and administrative expenses.
Net loss totaled $579,000 or $(0.00) per basic and diluted share compared to a net income of $3,011 or $0.00 per basic and diluted share in the same year-ago quarter. Excluding costs related to the company’s planned acquisition and public offering expenses, regulatory expense, change in fair value on derivative expense and interest expense, net loss totaled $135,000.
Cash totaled $213,000 as of March 31, 2023, as compared to $66,000 on December 31, 2022.
About Healthy Extracts “Live Life Young Again”
Healthy Extracts Inc. is a platform for acquiring, developing, researching, patenting, marketing, and distributing, plant-based proprietary products in select high-growth categories within the multibillion-dollar nutraceuticals market.
The company’s subsidiaries, BergametNA™ and Ultimate Brain Nutrients™ (UBN), offer nutraceutical natural heart and brain health supplements. This includes the only heart health supplement distributed in North America containing Citrus Bergamot SuperFruit™. This superfruit is known to have the highest quality and concentration of polyphenols and flavonoids, and with healthy heart benefits backed by multiple published studies.
UBN KETONOMICS® proprietary formulations have been shown to support brain health, including memory, cognition, focus and neuro-energy. UBN is pursuing intellectual property license opportunities for monetizing its IP portfolio of multiple issued and pending patents.
For more information visit: healthyextractsinc.com, bergametna.com or tryubn.com.
Forward-Looking Statements and Safe Harbor Notice
All statements made by Healthy Extracts Inc. (the “Company”) other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as “believe,” "projected," "expect," "possibility," "anticipate" and similar terminology. The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company's 2022 Annual Report on Form 10-K filed with the SEC on March 31, 2023, and future periodic reports filed with the SEC. All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements.
The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only as of the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.
Food and Drug Administration Disclosure
The product and formulation featured in this release is not for use by or sale to persons under the age of 12. This product should be used only as directed on the label. Consult with a physician before use if you have a serious medical condition or use prescription medications. A doctor’s advice should be sought before using this and any supplemental dietary product. These statements have not been evaluated by the FDA. This product is not intended to diagnose, treat, cure or prevent any disease.
BergametNA™, Ultimate Brain Nutrients™, UBN™, Citrus Bergamot SuperFruit™ and F4T® are registered trademarks of Healthy Extracts Inc.™
Healthy Extracts Company Contact
Duke Pitts, President
Healthy Extracts Inc.
Tel (720) 463-1004
Email contact
Investor Contact
Ronald Both
CMA Investor Relations
Tel (949) 432-7566
Email contact
Media Contact:
Tim Randall
CMA
Tel (949) 432-7572
Email Contact
| HEALTHY EXTRACTS, INC. | ||||||||
| CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
| FOR THE THREE MONTH ENDING MARCH 31, | ||||||||
| (Unaudited) | ||||||||
| FOR THE THREE MONTHS ENDING | ||||||||
| MARCH 31 | ||||||||
| 2023 | 2022 | |||||||
| REVENUE | ||||||||
| Gross revenue | $ | 614,943 | $ | 551,654 | ||||
| Net revenue | 614,943 | 551,654 | ||||||
| COST OF REVENUE | ||||||||
| Cost of goods sold | 320,724 | 226,949 | ||||||
| Written off inventory | 16,378 | - | ||||||
| Total cost of revenue | 337,102 | 226,949 | ||||||
| GROSS PROFIT | 277,841 | 324,705 | ||||||
| OPERATING EXPENSES | ||||||||
| General and administrative | 683,029 | 370,357 | ||||||
| Total operating expenses | 683,029 | 370,357 | ||||||
| OTHER INCOME (EXPENSE) | ||||||||
| Interest expense, net of interest income | (89,060 | ) | (32,957 | ) | ||||
| Change in fair value on derivative | (84,908 | ) | 78,978 | |||||
| Loss on extinguishment of debt | - | - | ||||||
| SBA loan forgiveness | - | - | ||||||
| Gain on sale of asset | - | 2,643 | ||||||
| Total other income (expense) | (173,968 | ) | 48,664 | |||||
| Net gain/(loss) before income tax provision | (579,157 | ) | 3,011 | |||||
| NET GAIN/(LOSS) | $ | (579,157 | ) | $ | 3,011 | |||
| Loss per share - basic and diluted | $ | (0.00 | ) | $ | 0.00 | |||
| Weighted average number of shares outstanding - basic and diluted | 342,514,810 | 313,764,817 | ||||||
| HEALTHY EXTRACTS, INC. | ||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||
| (Unaudited) | ||||||||
| MARCH 31 | DECEMBER 31, | |||||||
| 2023 | 2022 | |||||||
| ASSETS | ||||||||
| CURRENT ASSETS | ||||||||
| Cash | $ | 213,204 | $ | 65,651 | ||||
| Accounts receivable | 135,398 | 105,794 | ||||||
| Inventory | 1,654,206 | 1,819,128 | ||||||
| Total current assets | 2,002,808 | 1,990,572 | ||||||
| Fixed assets, net of accumulated depreciation of $44,709 and $45,474, respectively | 4,952 | 5,501 | ||||||
| Patents/Trademarks | 521,881 | 521,881 | ||||||
| Deposit | 16,890 | 16,890 | ||||||
| Prepaid Acquisition Costs | 85,632 | 53,015 | ||||||
| Goodwill | 193,260 | 193,260 | ||||||
| Total other assets | 822,614 | 790,546 | ||||||
| TOTAL ASSETS | $ | 2,825,422 | $ | 2,781,118 | ||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||
| LIABILITIES | ||||||||
| Accounts payable | $ | 114,485 | $ | 91,316 | ||||
| Accrued liabilities | 85,871 | 94,554 | ||||||
| Notes payable | 487,445 | 275,370 | ||||||
| Notes payable - related party | 866 | 866 | ||||||
| Convertible debt, net of discount of $0.00 and $0.00, respectively | 595,638 | 317,284 | ||||||
| Convertible debt - related party, net of discount of $0.00 and $0.00, respectively | - | - | ||||||
| Accrued interest payable | 39,023 | 21,387 | ||||||
| Accrued interest payable - related party | - | - | ||||||
| Derivative liabilities | 186,919 | 102,011 | ||||||
| Total current and total liabilities | 1,510,248 | 902,788 | ||||||
| STOCKHOLDERS' EQUITY (DEFICIT) | ||||||||
| Preferred stock, $0.001 par value, 75,000,000 shares authorized, none and none shares issued and outstanding, respectively | - | - | ||||||
| Common stock, $0.001 par value, 2,500,000,000 shares authorized, 345,492,442 and 345,172,442 shares issued and outstanding, respectively | 345,492 | 345,172 | ||||||
| Additional paid-in capital | 17,475,579 | 17,459,899 | ||||||
| Accumulated deficit | (16,505,898 | ) | (15,926,742 | ) | ||||
| Total stockholders' equity (deficit) | 1,315,174 | 1,878,330 | ||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 2,825,422 | $ | 2,781,118 | ||||
| Last Trade: | US$2.50 |
| Daily Volume: | 0 |
| Market Cap: | US$7.480M |
December 02, 2024 November 12, 2024 October 17, 2024 | |
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