First Quarter Financial Highlights
- Net revenue totaled
$615,000 , up 11%, driven by product line and distribution channel expansion. - Increased manufacturing and freight costs resulted in gross margin declining to 45.2% from 58.9% in the year-ago quarter. Gross margins are expected to return to normal levels in the second half of 2023 with the anticipated lowering of these costs.
- Net loss for the quarter, which was primarily due to costs related to increased manufacturing and freight costs, costs associated with the company’s previously announced corporate acquisition, and interest expense, totaled
$579,000 or$(0.00) per basic and diluted share. 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 . This compares to net income of$3,011 or$0.00 per basic and diluted share in the same year-ago quarter. - Cash totaled
$213,000 as ofMarch 31, 2023 , compared to$66,000 onDecember 31, 2022 , with the increase resulting from financing activity in the first quarter.
First Quarter Operational Highlights
- Subscription customers at
March 31, 2023 increased 64% over the previous year. Growth in subscribers helps lower customer acquisition costs and the recurring revenue stream provides greater visibility into future potential revenue. - The product line of the company’s brand influencer,
Whitney Johns , was featured on Amazon Buy with Prime in celebration of Women’s History Month. Amazon’s selectedWhitney Johns for her entrepreneurial spirit, dedication to innovation, being a thought leader in nutrition and fitness, and for launching one of the nation’s premier nutritional product lines for superior health and optimal fitness. TheseWhitney Johns products are based onHealthy Extracts plant-based proprietary and patented formulations that are supported by numerous independently published studies. - Entered agreement to acquire nutraceutical manufacturer Hyperion and its digital marketing affiliate,
Online Publishing & Marketing . The closing of this acquisition is subject to certain closing conditions and no assurances can be provided that it will be completed as contemplated.
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
“In preparation for completing our plans to acquire
“We are currently preparing for some major new product launches later this year, including the anticipated
“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
Gross profit totaled
Operating expenses increased
Net loss totaled
Cash totaled
About
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
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
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
Tel (720) 463-1004
Email contact
Investor Contact
CMA Investor Relations
Tel (949) 432-7566
Email contact
Media Contact:
CMA
Tel (949) 432-7572
Email Contact
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||
FOR THE THREE MONTH ENDING | ||||||||
(Unaudited) | ||||||||
FOR THE THREE MONTHS ENDING | ||||||||
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 | |||||
$ | (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 |
CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
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 | 4,952 | 5,501 | ||||||
Patents/Trademarks | 521,881 | 521,881 | ||||||
Deposit | 16,890 | 16,890 | ||||||
Prepaid Acquisition Costs | 85,632 | 53,015 | ||||||
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 | 595,638 | 317,284 | ||||||
Convertible debt - related party, net of discount of | - | - | ||||||
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, | - | - | ||||||
Common stock, | 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 |
Source:
2023 GlobeNewswire, Inc., source