Helo Corp Announces Second Quarter Results

Rhea-AI Summary

Helo Corp. (OTC PINK:HLOC) reported its Q2 2022 results with revenue of $3.5 million, a significant 83% decline year-over-year. The gross margin fell to 5%, down 5,000 basis points, due to rising material costs. Selling expenses increased to 45% of revenue, and general and administrative costs rose to 88.6%. The company faced a loss of $4.6 million for the quarter, with earnings per share at a loss of 5 cents, compared to a profit of 1 cent last year. Helo ended the quarter with $8.1 million in net assets and no debt.

Positive

• None.

Negative

• Revenue decreased by 83% year-over-year.
• Gross margin fell to 5%, a drop of 5,000 basis points.
• Selling expenses increased to 45% of revenue.
• General and administrative costs rose to 88.6% of revenue.
• The company reported a loss of $4.6 million for the quarter.
• Earnings per share at a loss of 5 cents, compared to a profit of 1 cent last year.

SAN FRANCISCO, CA / ACCESSWIRE / September 1, 2022 / Helo Corp. (OTC PINK:HLOC) ("Helo" or the "Company"), a leading developer of wearable devices at the forefront of data-driven wellness and a partner in the Digital Health Sharing Economy, announces its second quarter 2022 results.

"The second quarter was a challenge for us," said Sean McVeigh, Chief Executive Officer. "COVID-19 restrictions on international travel and in-person meetings, which are particularly important to our sales process, have and will likely continue to negatively impact our business, especially in geographic regions where we achieved strong sales last year. Consequently, we are evaluating our business model, looking at all aspects of our organization to optimize our spending, as well as adapting our sales processes to recover revenues in our current environment. In addition, we believe we have strong products in the pipeline."

"Our second quarter 2022 revenue was $3.5 million, a decrease of 83% over the prior-year period" added Ryan Wood, Chief Financial Officer. "Gross margin decreased by 5,000 basis points to 5%, due primarily to the lack of revenue and increased costs of materials and production. Selling expenses increased to 45.0% of revenue, reflecting an increase in temporary incentives during the quarter. General and administrative costs increased to 88.6% of revenue, primarily due to the decrease in revenue in the quarter. Overall profitability resulted in a loss of $4.6 million for the quarter, primarily related to our investment in new products as well as future market opportunities. Earnings per share came in at a loss of 5 cents per share, compared to a positive 1 cent per share in the prior-year period. We ended the second quarter with total net assets of $8.1 million and no debt."

About Helo Corp.

Helo Corp. (OTC PINK:HLOC) is a data-driven wellness technology company at the forefront of data driven wellness and a partner in the Digital Health Sharing Economy. Helo uses its life watches and other personal devices and its proprietary bio-metrics data platform to encourage wellness-centered lifestyles and consumer data empowerment under its Vyvo ^TM brand and to power the self-funding, Digital Health Sharing Economy. Our Life Sensing Technology^TM uses state-of-the-art sensors, enhanced signal processing, and algorithms to collect and process specific bio-parameters for the user and Healthtech market. We incentivize our customers with token rewards to continuously build up our shared bio-bank through self-tracking. Our data rich platform empowers our customers to own and control their bio-metric data, while providing AI-formulated personalized reports and alerts, as well as customized Nutrapak supplements. Our platform also presents Big Data opportunities for technology development, medical research and diagnostics.

For further information on Vyvo and Helo, please click on the links below:
https://www.vyvo.com and http://www.helocorp.com

The Company's disclosure statements and unaudited financial statements are available at https://www.otcmarkets.com/stock/HLOC/disclosure.

Forward Looking Statements

This news release contains "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, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by terminology such as may, "will," "expects," "anticipates," "future," "intends," "plans," "believes," "estimates," potential and similar statements. All statements other than statements of historical fact in this press release are forward-looking statements and involve certain risks and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These forward-looking statements are based on management's current expectations, assumptions, estimates and projections about the Company and the industry in which the Company operates, but involve a number of unknown risks and uncertainties. Further information regarding these and other risks is included in the Company's filings with the OTC Markets and the Securities and Exchange Commission. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances, or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and actual results may differ materially from the anticipated results. You are urged to consider these factors carefully in evaluating the forward-looking statements contained herein and are cautioned not to place undue reliance on such forward-looking statements, which are qualified in their entirety by these cautionary statements.

Investors Contact:
investors@helocorp.com
650-646-2193

SOURCE: Helo Corp.

View source version on accesswire.com:
https://www.accesswire.com/713089/Helo-Corp-Announces-Second-Quarter-Results

FAQ

What were Helo Corp.'s Q2 2022 revenues?

Helo Corp. reported revenues of $3.5 million for Q2 2022.

How did Helo Corp.'s earnings per share change in Q2 2022?

Earnings per share were a loss of 5 cents in Q2 2022, down from a profit of 1 cent in the prior-year period.

What is the current financial status of Helo Corp.?

As of Q2 2022, Helo Corp. has total net assets of $8.1 million and no debt.

What challenges did Helo Corp. face in Q2 2022?

Helo Corp. faced challenges due to COVID-19 restrictions impacting international travel and in-person meetings.

What was the loss reported by Helo Corp. in Q2 2022?

Helo Corp. reported a loss of $4.6 million for Q2 2022.