HEALTHY EXTRACTS INC. Overview
We are a platform for acquiring, developing, researching, patenting, marketing,
and distributing plant-based nutraceuticals. Our products have not been
evaluated by the
Guided by this mission, our first two acquisitions formed our current operating subsidiaries, Bergamet, which offers nutraceutical heart and immune health products, and UBN, which offers nutraceutical products for brain health.
Through published research, our Bergamet products have been shown to support heart health, support immune response, and address metabolic syndrome.
On
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proceeds from this offering to fund this acquisition. Hyperion products have
been formulated to support brain, memory, vision, sinus and digestive health, as
well as healthy sleep and aging. OPM provides online advertising and marketing
for Hyperion as well as other companies in the health and wellness space. The
closing of these two acquisitions is expected to occur following the completion
of and using the proceeds from this Offering. We anticipate the acquisition of
Hyperion and OPM to be transformative to our business, significantly
strengthening our manufacturing, marketing and distribution capabilities,
expanding our nutraceutical product portfolio, adding positive cash flow, and
significantly increasing our annualized gross revenues. Revenues for Hyperion
and OPM were over
We expect the combination of these synergistic and accretive acquisitions to
help accelerate our growth and expand our market reach. Our existing natural
heart and brain health formulations are perfect for cross selling with
Hyperion's Green Valley Natural Solutions branded product line. Likewise, we see
Going Concern
As a result of our financial condition, we have received a report from our
independent registered public accounting firm for our financial statements for
the years ended
Results of Operations for the Years Ended
Introduction
We had revenues of
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Revenues and Net Operating Loss
Our revenues, operating expenses, and net operating loss for the years ended
Year Ended Year Ended Increase/
December 31, 2022 December 31, 2021 (Decrease)
Revenue $ 2,251,469 $ 1,676,598 $ 574,871
Cost of Revenue 879,951 981,520 (101,568)
Operating expenses:
General and administrative 2,283,107 2,584,256 (301,148)
Total operating expenses 2,283,107 2,584,256 (301,148)
Net operating loss
Other income/(expense) (71,531) (97,945) (26,414)
Net gain/(loss) $ (983,121) $ (1,987,122) $ (1,004,000)
Revenues
We had revenues of
Cost of Revenue
Cost of revenue was
General and Administrative
General and administrative expense was
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consisted mainly of consulting of
Net Operating Gain/Loss
As a result of the items discussed above, our net operating loss was
Other Income and Expense
Other income (expense) was
Net Gain /(Loss)
Our net gain (loss) for the year ended
Liquidity and Capital Resources
Introduction
During the years ended
Our cash, current assets, total assets, current liabilities, and total
liabilities as of
December 31, 2022 December 31, 2021 Change
Cash $ 65,651 $ 222,098 $ (156,447)
Total Current Assets 1,990,572 2,313,404 (322,832)
Total Assets 2,781,118 3,029,579 (248,461)
Total Current Liabilities 902,788 558,841 343,947
Total Liabilities $ 902,788 $ $558,841 $ 343,947 Our cash decreased by
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Our current and total liabilities increased by
In order to repay our obligations in full or in part when due, we will be required to raise significant capital from other sources. There is no assurance, however, that we will be successful in these efforts.
Cash Requirements
Our cash on hand as of
Sources and Uses of Cash Operations
Our net cash used in operating activities for the years ended
Investments
Our cash flow provided by (used in) investing activities for the years ended
Financing
Our net cash provided by financing activities for the years ended
Critical Accounting Policies and Estimates
The preparation of financial statements in conformity with
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described in Note 2 to our consolidated financial statements included in our
Annual Report on Form 10-K for the year ended
Management considers the following policies critical because they are both important to the portrayal of our financial condition and operating results, and they require management to make judgments and estimates about inherently uncertain matters.
Use of Estimates
The preparation of financial statements in conformity with accounting principles
generally accepted in
Recent Accounting Pronouncements
Our management has considered all recent accounting pronouncements issued since the last audit of our financial statements. Our management believes that these recent pronouncements will not have a material effect on our financial statements.
Inventory
Inventories consist of health supplements held for sale in the ordinary course of business. The Company uses the weighted average cost method to value its inventories at the lower of cost and net realizable value. The components of inventory cost include raw materials, labor, and overhead. Net realizable value is determined using various assumptions with regard to excess or slow-moving inventories, expiration dates, current and future product demand, production planning, and market conditions. A change in any of these variables could result in an adjustment to inventory.
An allowance for inventory was established in 2018 and is evaluated each quarter
to determine if all items are still sellable due to expiration dates. As of
DECEMBER 31, DECEMBER 31,
2022 2021
Inventory
Inventory Classes:
Raw Materials $ 1,483,764 $ 1,757,808
Finished Goods 310,600 194,490
Work in process 24,764 5,668
Total inventory 1,819,128 1,957,966
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Revenue Recognition
The Company applies
Generally, revenues are recognized at the time of shipment to the customer with the price being fixed and determinable and collectability assured, provided title and risk of loss is transferred to the customer. Most of our shipping and handling costs are built into the transaction price, but if the customer asks for express shipping, the costs charged to customers are classified as sales, and the shipping and handling costs incurred are included in cost of sales.
The Company's subsidiary,
The Company evaluates the criteria outlined in ASC 606-10-55, Principal versus Agent Considerations, currently we are the principal and have not engaged any agents at this time. Currently, we have not recognized any revenues under the agent considerations.
Revenue is recognized when, or as, control of a promised merchandise or service is shipped to the customer, in an amount that reflects the consideration to which the Company expects to be entitled in exchange for transferring title of those products or services and are recorded net of and discounts or allowances.
Shipping costs paid by the customer are included in revenue. Merchandise sales
are fulfilled with inventory held in our warehouse in
If the Company receives a request for refund on a customer obligation, the Company will refund the full cost of the obligation due to our money back guarantee.
Revenue recognition is evaluated through the following five-step process:
1.identification of the contract with a customer;
2.identification off the performance obligations in the contract;
3.determination of the transaction price;
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4.allocation of the transaction price to the performance obligations in the contract; and
5.recognition of revenue when or as a performance obligation is satisfied.
These steps are met when an order is received, a price agreed and the product shipped or delivered to that customer.
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