Healthy Extracts Reports Record Fiscal Year 2023 Financial Results

Rhea-AI Summary

Healthy Extracts Inc. (HYEX) reports a 10% increase in net revenue to $2.5 million for the year ended December 31, 2023, driven by product line and distribution channel expansion. Gross margin expands to 65.2%. Net loss totals $2.5 million, primarily due to one-time costs associated with planned acquisitions and public offerings. Direct-to-consumer subscription customers and Amazon 'Subscribe & Save' customers show significant growth, boosting subscription-based revenue. Operational highlights include product launches and positive study results. Management anticipates continued revenue growth in Q1 2024 and plans to introduce new products, including sugar blockers and gut health supplements.

Positive

• Net revenue increases by 10% to $2.5 million in 2023 compared to 2022.
• Gross margin expands to 65.2% from 60.9% due to higher margin sales.
• Net loss amounts to $2.5 million or $(0.85) per basic and diluted share, driven by one-time costs related to planned acquisitions and public offerings.
• Direct-to-consumer subscription customers grow by 29% in 2023, leading to a 33% increase in subscription-based revenue.
• Amazon 'Subscribe & Save' customers increase by 20.7%, contributing to a 25% rise in subscription-based revenue.
• Operational highlights include new product launches and positive study results.
• Q1 2024 revenue outlook anticipates 10% to 18% growth over the first quarter of the previous year.
• New product launches planned for 2024 include sugar blockers and gut health supplements.

Negative

• None.

Net Revenue up 10% with Strong Subscription-Based Revenue Growth

Outlook for Continued Strong Overall Revenue Growth in Q1 2024

LAS VEGAS, NV / ACCESSWIRE / April 1, 2024 / Healthy Extracts Inc. (OTCQB:HYEX), a platform for acquiring, developing, patenting, marketing, and distributing plant-based nutraceuticals that target select high-growth categories within the multibillion-dollar nutraceuticals market, reported results for the year ended December 31, 2023. All comparisons are to the year-ago period unless otherwise noted.

2023 Financial Highlights

• Net revenue increased 10% to $2.5 million, driven by product line and distribution channel expansion, as well as growth in subscription-based revenue.
• Gross margin expanded to 65.2% from 60.9% due to a favorable shift to higher margin sales.
• Net loss totaled $2.5 million or $(0.85) per basic and diluted share, primarily due to one-time costs associated with the company's previously announced planned acquisition and related planned public offering and uplist to a major exchange, interest expense, and stock-based compensation (options and warrants valued under Black Sholes). Compares to net loss of $983,000 or $(0.34) per basic and diluted share in 2022.
• Net loss totaled $499,000 or $(0.17) per share after excluding costs associated with the planned acquisition and public offering expenses, regulatory expense, stock-based compensation (comprised of options and warrants), change in fair value on derivative expense, and interest expense.
• Direct-to-consumer subscription customers at December 31, 2023 increased 29% versus December 31, 2022, driving a 33% increase in subscription-based revenue for the full year of 2023.
• Amazon "Subscribe & Save" customers at December 31, 2023 increased 20.7% versus December 31, 2022, driving 25% increase in subscription-based revenue for full year of 2023. Subscription growth helps reduce customer acquisition costs, increases traction, and provides greater visibility into future revenue.

2023 Operational Highlights

• Officially launched BergametNA's Sleep Breathing Support, a natural supplement designed to improve sleep apnea and support more restful sleep, with strong initial sales.
• World Journal of Advanced Research and Reviews published a beta study that showed a positive effect of the company's UBN ACTIVATE™ effect on golfers' energy, focus and scores. The study was also presented at the American College of Sports Medicine conference in May.
• 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 selected Whitney 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. Whitney Johns products are based on Healthy 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.

Management Commentary

"In 2023, our record top line grew at a healthy double-digit pace as our product offerings, customer subscriptions, and distribution channels continued to expand," commented Healthy Extracts president, Duke Pitts.

"The performance also drove another year of gross margin improvement. Improved manufacturing efficiencies and lower freight costs we implemented last year also helped expand gross margins. Altogether, these favorable trends contributed to positive operational cash flow for the quarter after excluding stock-based compensation and interest expense.

"We continue to advance toward listing our stock on a prominent U.S. stock exchange, a move we anticipate will bolster our visibility and amplify recognition of our achievements within the financial market. We believe this listing will also enhance shareholder value by providing increased liquidity.

"Later this year, we plan to introduce several new products through our diverse sales and distribution channels. Our growth strategy includes both organic expansion and strategic acquisitions, with a focus on targets that can leverage our extensive distribution network. Overall, we anticipate another robust year ahead for Healthy Extracts."

Q1 2024 Revenue Outlook

For the first quarter of 2024, the company anticipates net revenue of approximately $675,000 to $725,000, which would represent 10% to 18% growth over the first quarter of last year.

2024 Product Outlook

Healthy Extracts' top brand ambassador and renowned fitness expert, Whitney Johns, is preparing to launch WHITNEY JOHNS™ NUTRITION on-the-go gel packs for GUT HEALTH and COLLAGEN (anti-aging) in mid-2024. These products will be based on Healthy Extracts' exclusive oral delivery system and proprietary formulations.

The company is also planning to launch in the second quarter its new BergaMet MYNUS sugar blocker, which is specially formulated to reduce up to 42% of the sugar impact from meals. The MYNUS on-the-go gel-packs will be made available under the company's exclusive U.S. and Canadian licensing and manufacturing agreement with Gelteq.

2023 Financial Summary

Net revenue in the full year of 2023 increased 10% to $2.5 million from $2.3 million in 2022, primarily due to product line and distribution channel expansion.

Gross profit totaled $1.6 million or 65.2% of net revenue as compared to $1.4 million or 60.9% of net revenue in 2022. The increase in gross margin was a result of decreased manufacturing and freight costs.

Operating expenses, excluding the costs involved in the on-going efforts in the acquisitions, planned public offering and uplist to a major exchange and stock compensation expense, decreased $204,000 to $2.1 million compared to 2022. The decrease in operating expenses was due to a decrease in general and administrative expenses.

Net loss totaled $2.5 million or $(0.85) per basic and diluted share, as compared to a net loss of $1.0 million or $(0.34) per basic and diluted share in the same year-ago period.

Excluding costs related to the company's planned acquisition and public offering expenses, regulatory expense, stock-based compensation expense (comprised of options and warrants), change in fair value on derivative expense and interest expense, net loss in the full year of 2023 totaled $499,000 or $(0.17) per basic and diluted share.

About Healthy Extracts "Live Life Young Again"

Healthy Extracts Inc.is a platform for acquiring, developing, researching, patenting, marketing, and distributing plant-based nutraceuticals.

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 North America containing Citrus Bergamot SuperFruit™. This superfruit has the highest known concentration of polyphenols and flavonoids.

UBN's KETONOMICS^® proprietary formulations, which have been designed to enhance brain activity, focus, headache and cognitive behavior, provide many sales and intellectual property licensing opportunities.

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, 2024, 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 & 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.™

Company Contact
Duke Pitts, President
Healthy Extracts Inc.
Tel (720) 463-1004
Email contact

Investor Contact
Ronald Both
CMA Investor Relations
Tel (949) 432-7566
Email contact

Media Contact:
Tim Randall
CMA Media Relations
Tel (949) 432-7572
Email Contact

HEALTHY EXTRACTS, INC. CONSOLIDATED STATEMENT OF OPERATIONS FOR THE YEAR ENDING DECEMBER 31, 2023 AND 2022 (Audited)
	FOR THE YEAR ENDING
	DECEMBER 31
	2023				2022
REVENUE
Revenue	$	2,485,866			$	2,251,469
Net revenue		2,485,866				2,251,469
COST OF REVENUE
Cost of goods sold		864,055				879,951
Total cost of revenue		864,055				879,951
GROSS PROFIT		1,621,810				1,371,517
OPERATING EXPENSES
Direct cost of revenue		-				-
General and administrative		3,865,654				2,283,107
Impairment of assets		-				-
Total operating expenses		3,865,654				2,283,107
OTHER INCOME (EXPENSE)
Interest expense, net of interest income		(176,948	)			(64,690	)
Change in fair value on derivative		(52,140	)			(9,484	)
Gain on sale of asset		-				2,643
Total other income (expense)		(229,088	)			(71,531	)
Net income/(loss) before income tax provision		(2,472,931	)			(983,121	)
NET INCOME/(LOSS)	$	(2,472,931	)		$	(983,121	)
Income/(Loss) per share - basic and diluted	$	(0.85	)		$	(0.34	)
Weighted average number of shares outstanding - basic and diluted		2,915,410				2,854,290

HEALTHY EXTRACTS, INC. CONSOLIDATED BALANCE SHEETS AS OF DECEMBER 31, 2023 AND 2022 (Audited)
							DECEMBER 31		DECEMBER 31,
							2023		2022
ASSETS
CURRENT ASSETS
Cash						$	19,441	$	65,651
Accounts receivable							30,440		105,794
Inventory, net							1,626,283		1,819,128
Offering costs							151,931		-
Prepaid acquisition costs							-		53,015
Right of use asset, net							71,583		-
	Total current assets						1,899,678		2,043,587
Fixed assets							3,306		5,501
Patents/Trademarks							521,881		521,881
Deposit							16,890		16,890
Goodwill							193,260		193,260
	Total other assets						735,336		737,531
TOTAL ASSETS						$	2,635,014	$	2,781,118
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Accounts payable						$	116,842	$	91,316
Accrued liabilities							215,069		94,554
Lease liabilities - current							65,229		-
Lease liabilities - long-term							9,222		-
Notes payable							361,093		275,370
Notes payable - related party							83,366		866
Convertible debt, net of discount							608,601		317,284
Accrued interest payable							64,386		21,387
Accrued interest payable - related party							2,465		-
Derivative liabilities							154,150		102,011
	Total current and total liabilities						1,680,424		902,788
STOCKHOLDERS' EQUITY
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, 50,000,000 shares authorized, 2,954,104 shares issued and outstanding as of December 31, 2023, and 2,876,437 shares issued and outstanding as of December 31, 2022, respectively							354,492		345,172
Additional paid-in capital							18,999,770		17,459,899
Accumulated deficit							(18,399,673)		(15,926,742)
	Total stockholders' equity						954,590		1,878,330
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY						$	2,635,014	$	2,781,118

SOURCE: Healthy Extracts Inc.

View the original press release on accesswire.com

FAQ

What was the net revenue for Healthy Extracts Inc. in 2023?

Healthy Extracts Inc. reported a net revenue of $2.5 million for the year ended December 31, 2023.

What was the gross margin percentage for Healthy Extracts Inc. in 2023?

Healthy Extracts Inc. had a gross margin of 65.2% in 2023, up from 60.9%.

What was the net loss for Healthy Extracts Inc. in 2023?

Healthy Extracts Inc. experienced a net loss of $2.5 million or $(0.85) per basic and diluted share in 2023.

How much did direct-to-consumer subscription customers grow in 2023 for Healthy Extracts Inc.?

Direct-to-consumer subscription customers grew by 29% in 2023 for Healthy Extracts Inc., leading to a 33% increase in subscription-based revenue.

What is the Q1 2024 revenue outlook for Healthy Extracts Inc.?

Healthy Extracts Inc. anticipates net revenue of approximately $675,000 to $725,000 for the first quarter of 2024, representing 10% to 18% growth over the previous year.

What new products does Healthy Extracts Inc. plan to launch in 2024?

Healthy Extracts Inc. plans to launch sugar blockers and gut health supplements in 2024, including WHITNEY JOHNS NUTRITION gel packs and BergaMet MYNUS sugar blocker.