Financial and other highlights for the three months ended
- Total revenue was
$3,185,689 for the three months endedMarch 31, 2023 , as compared to$2,384,619 for the three months endedMarch 31, 2022 , an increase of$801,070 or 33.6%. The increase in total revenue was driven by increased sales of the Viactiv product line, which accounted for approximately 97% of the Company’s total revenue for the three months endedMarch 31, 2023 . - Gross profit was
$1,335,302 for the three months endedMarch 31, 2023 , as compared to$1,096,457 for the three months endedMarch 31, 2022 , an increase of$238,845 or 21.8%. The increase in gross profit was primarily attributable to an increase in sales from the Viactiv product line. - Gross margin for the three months ended
March 31, 2023 was 41.9%, as compared to 46.0% for the three months endedMarch 31, 2022 . Gross margin decreased by 4.1 percentage points or 8.9% in 2023 as compared to 2022 because of increased transportation, fulfillment and third-party logistics costs. - Total operating expenses for the three months ended
March 31, 2023 were$2,799,309 , as compared to$3,716,505 for the three months endedMarch 31, 2022 , a decrease of$917,196 or 24.7%. - Loss from operations for the three months ended
March 31, 2023 decreased to$(1,464,007) , as compared to$(2,620,048) for the three months endedMarch 31, 2022 , a reduction of$1,156,041 or 44.1%. - As a result of the aforementioned factors, and the non-cash gain (loss) from the change in fair value of the warrant derivative liability of
$1,898,100 and$(2,682,500) for the three months endedMarch 31, 2023 and 2022, respectively, net income was$533,091 for the three months endedMarch 31, 2023 , as compared to a net loss of$(5,300,987) for the three months endedMarch 31, 2022 . - Basic and diluted net income (loss) for the three months ended
March 31, 2023 was net income of$0.42 per share, as compared to a net loss of$(6.77) per share for the three months endedMarch 31, 2022 , based on 1,267,340 weighted average common shares outstanding in 2023 and 783,018 weighted average common shares outstanding in 2022. - Cash used in operations for the three months ended
March 31, 2023 was$1,879,210 , as compared to$2,226,473 for the three months endedMarch 31, 2022 . - The Company had unrestricted cash and cash equivalents of
$8,774,626 as ofMarch 31, 2023 . - During the three months ended
March 31, 2023 , the Company redeemed for cash all of the outstanding shares of Series C convertible redeemable preferred stock and Series D redeemable preferred stock that were issued and outstanding atDecember 31, 2022 . - On
January 24, 2023 , the Company received a letter fromThe Nasdaq Stock Market LLC stating that the Company had regained compliance with the minimum bid price requirement of$1.00 per share for continued listing on The Nasdaq Capital Market.
“We believe that our ability to maximize stockholder value requires that we continue to build a solid corporate foundation and demonstrate growth and commercial success on top of that foundation, with the objective of reaching operating profitability.. In that regard, wee have taken a number of steps during the last two years to strengthen our corporate foundation, including acquiring Viactiv, winding down and reevaluating Vector Vision, hiring key team members, launching a new product, strengthening our eCommerce capabilities, moving our corporate headquarters from
“Despite this progress, we continue to believe that the Company remains undervalued in the public market, specifically with regard to the clinical nutrition platform and the brand that we are building. We are continuing to work closely with
“Finally, we believe that our cash position, the market position of the Viactiv product line, and our current operating business strategy provide us with a viable platform from which to continue our efforts to further grow operations, improve financial performance, and maximize stockholder value,” concluded
Financial Results
Additional information with respect to the Company’s business, operations and financial condition as of and for the three months ended
About
Forward-Looking Statement Disclaimer
With the exception of the historical information contained in this news release, the matters described herein may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements contain information about our expectations, beliefs, plans or intentions regarding our product development and commercialization efforts, research and development efforts, business, financial condition, results of operations, strategies or prospects, and other similar matters. Statements preceded by, followed by or that otherwise include the words “believes,” “expects,” “anticipates,” “intends,” “projects,” “estimates,” “plans,” “hopes” and similar expressions or future or conditional verbs such as “will,” “should,” “would,” “may” and “could” are generally forward-looking in nature and not historical facts, although not all forward-looking statements include the foregoing.
These statements are based on management’s current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict, and involve unknown risks and uncertainties that may individually or materially impact the matters discussed herein for a variety of reasons that are outside the control of the Company, including, but not limited to, the Company’s ability to raise sufficient financing to fund its business plan, the impact of the Company’s exploration of strategic alternatives, any replacement and integration of new management team members, the implementation of new financial, management, accounting and business software systems, the identification and integration of possible acquisition targets and suitors, the impact of the Covid-19 pandemic, supply chain disruptions, inflation and a potential recession on the Company’s business, operations and the economy in general, the Company’s ability to successfully develop and commercialize its proprietary products and technologies, and the Company’s ability to maintain compliance with Nasdaq’s continued listing requirements.
Readers are cautioned not to place undue reliance on these forward-looking statements, as actual results could differ materially from those described in the forward-looking statements contained herein. Readers are urged to read the risk factors set forth in the Company’s filings with the
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516-222-2560
scotta@coreir.com
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CORE IR
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julesa@coreir.com
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