Healthy Extracts Reports 172% Revenue Growth and Positive Net Income in First Quarter 2022
LAS VEGAS, May 16, 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 first quarter ended March 31, 2022. All comparisons are to the same year-ago period unless otherwise noted.*Q1 Financial Highlights*
· Net revenue totaled $463,000, up 172%—a record for Q1. Growth acceleration keeps full year revenue outlook on track to exceed $3 million.
· Gross profit totaled $325,000, up 152%.
· Gross margin expanded to 70.1%, compared to 47.4% in the full year of 2021.
· Net income of $3,000, improving from a net loss of $1.3 million.
*Q1 Operational Highlights*
· Recorded a four-fold increase in recurring revenue from product subscriptions.
· Published new clinical study in World Journal of Advanced Research and Reviews demonstrating UBN Relief reduces migraine incidents by 53%, decreased length of incidents by 39% and lowered severity of pain during incidents by 27%.
· Appointed J. Scott Landers as executive vice president of sales and marketing to spearhead the launch and revenue growth of new product and service offerings.*Management Commentary*
“In Q1, our record revenue performance and profitability were driven by a continued ramp up in sales through our direct-to-consumer channels, including a four-fold growth in recurring revenue from subscriptions,” commented Duke Pitts, president of Healthy Extracts. “These results also demonstrate how we have established a solid foundation for addressing the fast-growing heart health supplement market and clinical studies that support our brain health claims.
“Also during the quarter, we successfully navigated supply chain challenges by opportunistically increasing our inventories for meeting anticipated growth in demand. While freight costs have increased, our strong inventory position enables us to offset this through price adjustments. This also means we expect our strong 70.1% gross margin we achieved in Q1 to be closely maintained for the remainder of the year.
“Earlier this month, our top brand influencer, Whitney Johns, launched her new line of natural health and fitness products on her new website at whitneyjohns.com. The launch was a watershed moment for our brand influencer program that opens a new major sales channel for our patented formulations. Whitney’s launch was incredibly successful, driving more than 24 million unpaid media impressions and a major influx of orders.
“We created our brand influencer program to increase our social engagement, strengthen our brand identity and accelerate revenue growth, but at minimal cost. We see popular brand influencers like Whitney helping our natural formulations to reach millions of new consumers directly through their online presence as well as through prime shelf placements at major retailers nationwide.
“Looking ahead, we anticipate two product launches in the third quarter, Whitney’s gut health gel pack as well as a new gel pack option for our Ultimate Brain Nutrients RELIEF™, a proprietary, patent-pending natural formulation that provides relief from symptoms often associated with migraine headaches.
“The new gut health product allows us to address a large and growing global gut health market, which is projected to grow at a 7.9% CAGR to nearly $72 billion by 2027. UBN RELIEF also addresses a huge market opportunity, with an estimated 1 billion people suffering from migraine headaches worldwide, with 39 million in the U.S. alone, according to the American Migraine Foundation.
“Our new gel pack format makes our products easier and more convenient to consume. It is based on our exclusive rights to patented gel technology from Gelteq, a global leader in ingestible gel technology. It has created a revolutionary new, super-convenient way to consume our products, along with added benefits that include easier digestion and absorption.
“Given how Gelteq gels make nutritional supplements so much easier and more enjoyable to consume, we see our exclusive access to this patented technology creating many higher-margin, multi-million-dollar market opportunities as well as additional competitive advantages.
“We have also been actively working on large distributor orders from our wholesale customers. We believe the progress we have made, particularly with expanding our sales channels and portfolio of clinically proven natural products, keeps us on course for our guided 100% sales growth in 2022. Together with our continued focus on increasing our recurring revenue stream from subscriptions and maintaining our high gross margin, we anticipate our bottom line expansion to increase over the remainder of the year.”
*Q1 Financial Summary*
Net revenue in the first quarter of 2022 increased 172% to $463,000 from $170,000 in the same year-ago quarter.
Gross profit totaled $325,000 or 70.1% of net revenue as compared to $129,000 or 75.7% of revenue in the same year-ago quarter.
Operating expenses decreased 48% to $370,000 compared to $716,000 in the same year-ago quarter. The decrease in operating expense was due to decreased general and administrative expenses.
Net income totaled $3,000 or $0.00 per basic and diluted share compared to a net loss of $1.3 million or $(0.00) per basic and diluted share in the same year-ago period.
Cash totaled $92,000 as of March 31, 2022, as compared to $222,000 on December 31, 2021. As of May 14, 2022, cash on hand was $269,000.
*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 improve 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 Contact:*
Ronald Both or Justin Lumley
CMA
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 MONTH ENDING MARCH 31, 2022*
*(Unaudited)* *FOR THE MONTHS ENDED* *MARCH 31,* *2022* *2021*
*REVENUE*
Gross revenue $ 551,654 $ 181,034
Less selling fees (88,267 ) (10,601 ) *Net revenue* 463,386 170,433
*COST OF REVENUE*
Cost of goods sold 138,681 41,442
Written off inventory - - *Total cost of revenue* 138,681 41,442
*GROSS PROFIT* 324,705 128,991
*OPERATING EXPENSES*
General and administrative 370,357 716,087 *Total operating expenses* 370,357 716,087
*OTHER INCOME (EXPENSE)*
Interest expense, net of interest income (32,957 ) (15,759 )
Change in fair value on derivative 78,978 (690,780 )
Loss on extinguishment of debt - -
SBA loan forgiveness - -
Gain on sale of asset 2,643 - *Total other income (expense)* 48,664 (706,540 )
*Net gain/(loss) before income tax provision* 3,011 (1,293,636 )
*NET GAIN/(LOSS)* $ 3,011 $ (1,293,636 )
*Loss per share - basic and diluted* $ 0.00 $ (0.00 )
*Weighted average number of shares outstanding - basic and diluted* 313,764,817 313,442,910
*HEALTHY EXTRACTS, INC.*
*CONSOLIDATED BALANCE SHEETS*
*(Unaudited)* *MARCH 31,* *DECEMBER 31,* *2022* *2021*
*ASSETS*
*CURRENT ASSETS*
Cash $ 92,286 $ 222,098
Accounts receivable 109,171 133,340
Inventory 2,008,524 1,957,966 *Total current assets* 2,209,981 2,313,404
Fixed assets, net of accumulated depreciation of $45,944 and $36,895, respectively 7,147 1,035
Patents/Trademarks 521,881 521,881
Deposit 16,890 -
Goodwill 193,260 193,260 *Total other assets* 739,177 716,175
*TOTAL ASSETS* $ 2,949,158 $ 3,029,579
*LIABILITIES AND STOCKHOLDERS' DEFICIT*
*LIABILITIES*
Accounts payable $ 105,420 $ 37,267
Accrued liabilities 4,496 59,264
Notes payable - -
Notes payable - related party 150,866 170,866
Convertible debt, net of discount of $0.00 and $0.00, respectively 206,750 171,750
Convertible debt - related party, net of discount of $0.00 and $0.00, respectively - -
Accrued interest payable 5,228 13,050
Accrued interest payable - related party 17,518 14,118
Derivative liabilities 13,549 92,527 *Total current and total liabilities* 503,826 558,841
*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, 338,091,821 and 338,384,171 shares issued and outstanding, respectively 338,092 338,384
Additional paid-in capital 17,047,849 17,075,974
Accumulated deficit (14,940,609 ) (14,943,620 ) *Total stockholders' equity (deficit)* 2,445,332 2,470,738
*TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY (DEFICIT)* $ 2,949,158 $ 3,029,579