Q3 2022 Financial Highlights
- Net revenue totaled a record
$500,000 , up 32%. - Gross profit totaled
$431,000 , up 40%. - Gross margin was 86.3% as compared to 81.0% in the third quarter of 2021.
- Operating expenses decreased 30% to
$486,000 . - Subscription customers at
September 30, 2022 increased 82% on Amazon and 54% on direct-to-consumer versusSeptember 30, 2021 . The growth in subscription revenue helps lower customer acquisition costs and provides greater visibility into future revenue.
First Nine Months 2022 Financial Highlights
- Net revenue totaled
$1.4 million , up 80%. - Gross profit totaled
$1.0 million , up 59%. - Gross margin was 71.9% as compared to 81.4% in the first nine months of 2021. The decrease in gross margin was due to a shift in product mix to lower margin revenue.
- Operating expenses decreased 7% to
$1.7 million .
Q3 Operational Highlights
- Launched premium Citrus Bergamot SuperFruit™ heart health supplement, BergaMet PRO+™, on Fullscript.com, the nation’s leading care delivery platform for integrative medicine.
- Introduced Whitney Johns’ premium heart health supplement, Citrus Bergamot for Women, now available exclusively on Amazon.com.
- Shipped second order to Natural Grocers®, the nation's largest family-operated organic and natural grocery retailer. Launched in the second quarter of this year, National Grocers represents the company’s first strategic entrance of the retail marketplace.
- Launched a new clinical study investigating UBN ACTIVATE’s™ effect on golfers’ energy, focus and scores.
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
“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
“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
Q3 Financial Summary
Net revenue in the third quarter of 2022 increased 32% to
Gross profit totaled
Operating expenses decreased to
Net loss totaled
Cash totaled
First Nine Months 2022 Financial Summary
Net revenue in the first nine months of 2022 increased 80% to
Gross profit totaled
Operating expenses decreased 7% to
Net loss 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 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
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 & Media Contact
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Tel (949) 432-7566
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Email Contact
CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||
FOR THE THREE AND NINE MONTHS ENDING | ||||||||||||||||
(Unaudited) | ||||||||||||||||
FOR THE 3 MONTHS ENDING | FOR THE 9 MONTHS ENDING | |||||||||||||||
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 | ) | ||||||||
$ | (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 | ||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
(Unaudited) | ||||||||||
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 | 6,050 | 1,035 | ||||||||
Patents/Trademarks | 521,881 | 521,881 | ||||||||
Deposit | 16,890 | - | ||||||||
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 | 360,750 | 171,750 | ||||||||
Convertible debt - related party, net of discount of | - | - | ||||||||
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, | - | - | ||||||||
Common stock, | 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 | ||||||
Source:
2022 GlobeNewswire, Inc., source