LAS VEGAS, Nov. 09, 2022 (GLOBE NEWSWIRE) -- Healthy Extracts Inc. (OTCQB: HYEX), a leading innovator of clinically proven plant-based products for heart and brain health, reported results for the third quarter ended September 30, 2022. All comparisons are to the same year-ago period unless otherwise noted.
Q3 2022 Financial Highlights
First Nine Months 2022 Financial Highlights
Q3 Operational Highlights
Management Commentary
“Thanks to our tremendous product lineup, in Q3 we overcame many supply chain challenges, including increased freight costs, as well as inflation pressures, to generate another record quarter,” commented Duke Pitts, president of Healthy Extracts. “We also improved our gross margins, which were already exceptionally high, while decreasing expenses. As a result, our cash flow improved to nearly neutral, which contrasts strongly to other companies in our space.
“We also strengthened our recurring revenue stream with strong subscriber growth, both direct-to-consumer and through Amazon. This growth demonstrates the increasing consumer long-term adoption of our products, particularly our clinically proven heart health supplements.
“Amazon has developed into a major part of our multi-channel approach, particularly with its ‘Subscribe and Save’ option that increased by 82% over the past year. Our recent entrance of the traditional retail marketplace also strengthened with a second large order from Natural Grocers, the nation's largest family-operated organic and natural grocery retailer.
“Also driving growth during the quarter was the launch of our premium Citrus Bergamot SuperFruit™ heart health supplement, BergaMet PRO+, on Fullscript.com. Fullscript.com has greatly expanded our reach to thousands of healthcare practitioners and their millions of patients across the country.
“BergaMet PRO+ on Fullscript.com also provides strong validation of its clinically proven benefits for heart health. We continue to lead the competition with our BergaMet PRO+ having 47% BPF Gold potency as compared to our closest competitor at only 38% BPF.
“To drive continued sales growth and leverage our growing customer base, we are planning to expand our product portfolio to include supplements that support gut health as well as add additional gel-pack product formats. This will include a new Whitney Johns gut health gel pack as well as a new gel pack option for our Ultimate Brain Nutrients RELIEF™. RELIEF is our proprietary, patent-pending natural formulation that provides relief from symptoms often associated with migraine headaches.
“We also plan to launch a number of proprietary-formulated caffeine-based gel products. The gel-pack provides a super-convenient way to take our products on-the-go with no need to take or mix with water or juice. We plan to launch these new gel-pack products before the end of the year.
“We also continue to evaluate a number of attractive acquisition opportunities that could grow our product portfolio and benefit from our marketing strength and multi-channel distribution.
“For the remainder of the year, we will continue to focus on expanding our sales channels and portfolio of proprietary, clinically-proven natural formulations for heart and brain health. Given our momentum coming out of the third quarter, we believe Healthy Extracts remains on track for another record year, with 2023 looking even better.”
Q3 Financial Summary
Net revenue in the third quarter of 2022 increased 32% to $500,000 from $380,000 in the same year-ago quarter.
Gross profit totaled $431,000 or 86.3% of net revenue as compared to $308,000 or 81.0% of net revenue in the same year-ago quarter.
Operating expenses decreased to $486,000 compared to $693,000 in the same year-ago quarter. The decrease in operating expenses was due to decreased general and administrative expenses.
Net loss totaled $170,000 or $(0.00) per basic and diluted share compared to a net loss of $672,000 or $(0.00) per basic and diluted share in the same year-ago period. The third quarter of 2022 included a change in fair value on derivative of $104,000, a non-cash charge. After giving effect to the change in fair value of the derivative as well as interest expense (net of interest income) of $11,000, on a proforma basis net loss totaled $54,000.
Cash totaled $74,000 as of September 30, 2022, as compared to $159,000 as of June 30, 2022.
First Nine Months 2022 Financial Summary
Net revenue in the first nine months of 2022 increased 80% to $1.4 million from $794,000 in the same year-ago period.
Gross profit totaled $1.0 million or 71.9% of net revenue as compared to $647,000 or 81.4% of net revenue in the same year-ago period.
Operating expenses decreased 7% to $1.7 million compared to $1.9 million in the same year-ago period. The decrease in operating expenses was due to increased general and administrative expenses.
Net loss totaled $1.0 million or $(0.00) per basic and diluted share compared to a net loss of $2.5 million or $(0.01) per basic and diluted share in the same year-ago period. The first nine months of 2022 included a change in fair value on derivative of $246,000. After giving effect to the change in fair value of the derivative as well as interest expense (net of interest income $69,000, on a proforma basis net loss totaled $712,000.
About Healthy Extracts “Live Life Young Again”
Healthy Extracts Inc. is a platform for developing or acquiring science-forward, clinically proven, 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 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 more than 17 clinical studies.
UBN KETONOMICS® proprietary formulations have been clinically 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 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 "projected," "expect," "possibility" and "anticipate." 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 Annual Report on Form 10-K filed with the SEC on April 1, 2022, 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 & Media Contact
Ronald Both or Grant Stude
CMA Investor & Media 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 AND NINE MONTHS ENDING SEPTEMBER 30, | ||||||||||||||||
| (Unaudited) | ||||||||||||||||
| FOR THE 3 MONTHS ENDING | FOR THE 9 MONTHS ENDING | |||||||||||||||
| SEPTEMBER 30, | SEPTEMBER 30, | |||||||||||||||
| 2022 | 2021 | 2022 | 2021 | |||||||||||||
| REVENUE | ||||||||||||||||
| Gross revenue | $ | 573,967 | $ | 447,986 | $ | 1,668,105 | $ | 903,142 | ||||||||
| Less selling fees | (74,315 | ) | (68,111 | ) | (235,255 | ) | (108,949 | ) | ||||||||
| Net revenue | 499,653 | 379,875 | 1,432,850 | 794,193 | ||||||||||||
| COST OF REVENUE | ||||||||||||||||
| Cost of goods sold | 68,551 | 72,250 | 382,038 | 147,456 | ||||||||||||
| Written off inventory | - | - | 20,750 | - | ||||||||||||
| Total cost of revenue | 68,551 | 72,250 | 402,788 | 147,456 | ||||||||||||
| GROSS PROFIT | 431,102 | 307,625 | 1,030,062 | 646,737 | ||||||||||||
| OPERATING EXPENSES | ||||||||||||||||
| General and administrative | 485,568 | 692,940 | 1,744,326 | 1,873,858 | ||||||||||||
| Total operating expenses | 485,568 | 692,940 | 1,744,326 | 1,873,858 | ||||||||||||
| OTHER INCOME (EXPENSE) | ||||||||||||||||
| Interest expense, net of interest income | (11,336 | ) | (19,242 | ) | (68,657 | ) | (48,598 | ) | ||||||||
| Change in fair value on derivative | (104,421 | ) | (307,746 | ) | (246,260 | ) | (1,287,971 | ) | ||||||||
| Loss on extinguishment of debt | - | - | - | - | ||||||||||||
| SBA loan forgiveness | - | 39,833 | - | 39,833 | ||||||||||||
| Gain on sale of asset | - | - | 2,643 | - | ||||||||||||
| Total other income (expense) | (115,757 | ) | (287,155 | ) | (312,274 | ) | (1,296,736 | ) | ||||||||
| Net gain/(loss) before income tax provision | (170,223 | ) | (672,470 | ) | (1,026,538 | ) | (2,523,857 | ) | ||||||||
| NET GAIN/(LOSS) | $ | (170,223 | ) | $ | (672,470 | ) | $ | (1,026,538 | ) | $ | (2,523,857 | ) | ||||
| Loss per share - basic and diluted | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.00 | ) | $ | (0.01 | ) | ||||
| Weighted average number of shares outstanding - basic and diluted | 341,619,198 | 316,650,804 | 342,514,810 | 317,363,964 | ||||||||||||
| HEALTHY EXTRACTS, INC. | ||||||||||
| CONSOLIDATED BALANCE SHEETS | ||||||||||
| (Unaudited) | ||||||||||
| SEPTEMBER 30, | DECEMBER 31, | |||||||||
| ASSETS | 2022 | 2021 | ||||||||
| CURRENT ASSETS | ||||||||||
| Cash | $ | 73,884 | $ | 222,098 | ||||||
| Accounts receivable | 100,755 | 133,340 | ||||||||
| Inventory | 1,866,442 | 1,957,966 | ||||||||
| Total current assets | 2,041,081 | 2,313,404 | ||||||||
| Fixed assets, net of accumulated depreciation of $49,547 and $45,944, respectively | 6,050 | 1,035 | ||||||||
| Patents/Trademarks | 521,881 | 521,881 | ||||||||
| Deposit | 16,890 | - | ||||||||
| Goodwill | 193,260 | 193,260 | ||||||||
| Total other assets | 738,080 | 716,175 | ||||||||
| TOTAL ASSETS | $ | 2,779,161 | $ | 3,029,579 | ||||||
| LIABILITIES AND STOCKHOLDERS' DEFICIT | ||||||||||
| LIABILITIES | ||||||||||
| Accounts payable | $ | 114,066 | $ | 37,267 | ||||||
| Accrued liabilities | 6,934 | 59,264 | ||||||||
| Notes payable | 93,174 | - | ||||||||
| Notes payable - related party | 866 | 170,866 | ||||||||
| Convertible debt, net of discount of $0.00 and $0.00, respectively | 360,750 | 171,750 | ||||||||
| Convertible debt - related party, net of discount of $0.00 and $0.00, respectively | - | - | ||||||||
| Accrued interest payable | 29,671 | 13,050 | ||||||||
| Accrued interest payable - related party | - | 14,118 | ||||||||
| Derivative liabilities | 338,787 | 92,527 | ||||||||
| Total current and total liabilities | 944,248 | 558,841 | ||||||||
| 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, 345,172,442 and 338,887,410 shares issued and outstanding, respectively | 345,172 | 338,384 | ||||||||
| Additional paid-in capital | 17,459,899 | 17,075,974 | ||||||||
| Accumulated deficit | (15,970,158 | ) | (14,943,620 | ) | ||||||
| Total stockholders' equity (deficit) | 1,834,913 | 2,470,738 | ||||||||
| TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT) | $ | 2,779,161 | $ | 3,029,579 | ||||||
| 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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