Healthy Extracts Reports Fourth Quarter and Full Year 2021 Results
Healthy Extracts Reports Fourth Quarter and Full Year 2021 Results
LAS VEGAS, April 01, 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 fourth quarter and full year ended December 31, 2021.
Q4 Financial Highlights
- Net revenue totaled $672,000, up 77% sequentially and up 394% from the same year-ago quarter.
- Net income of $535,000, improving from a net loss of $1.6 million in the same year-ago quarter.
Full Year 2021 Financial Highlights
- Net revenue increased 15% to record $1.5 million.
- Gross profit was $695,000 or 47.4% of net revenue.
- Operating expenses reduced by $471,000 to $2.6 million.
2021 Operational Highlights
- Introduced breakthrough nutraceutical formulation, Ultimate Brain Nutrients™ (UBN™) ACTIVATE™, clinically shown to increase key brain activity by as much as 46%. Clinical study highlighting the product’s benefits was published in Annals of Reviews and Research.
- Introduced Ultimate Brain Nutrients RELIEF™ for migraine sufferers, a breakthrough natural treatment clinically shown to reduce symptom duration by 61% and frequency by 39%.
- Launched innovative brand influencer program that offers private label products and custom formulations for brand influencers.
- Engaged Whitney Johns, an accomplished fitness athlete, model, personal trainer and nutrition advocate, as the company’s first major influencer under the new brand influencer program.
- Unveiled new exclusive line of Whitney Johns natural health and fitness formulations.
- Introduced on-the-go gel packs with Healthy Extracts’ Citrus Bergamot and UBN ingredients under new exclusive U.S. and Canada licensing and manufacturing agreement with Gelteq.
- Secured two-year extension to exclusively offer Citrus Bergamot SuperFruit™ in the U.S. and Canada.
“Our record performance in 2021 was driven by the strong ramp up in sales through both our wholesale distribution and direct-to-consumer channels, which includes subscription options,” commented Duke Pitts, president of Healthy Extracts. “These results also reflect our rapidly expanding customer base, with estimated customer lifetime value or CLV now exceeding $500. Our growth in CLV and subscriptions demonstrates that once customers discover our products, they come back for more.
“The growth was also supported by the continued expansion of our portfolio of natural products for heart and brain health. This included the mid-year launch of UBN ACTIVATE, representing our entrance into the multi-billion dollar brain health supplements market. Then in the fourth quarter, we introduced UBN RELIEF, which is specially formulated to reduce the symptoms associated with migraine headaches. In fact, we recently reported clinical study results that demonstrate UBN RELIEF naturally alleviates migraine symptoms. We believe such peer-reviewed, published clinical research highly differentiates our products in the marketplace and assures our customers they will see results. Like with ACTIVATE, we believe RELIEF is like no other product available today, and we see these products creating a tremendous market opportunity that supports the continued ramp up in sales over the months to come.
“One of the most exciting events of 2021 was the introduction of our exclusive line of Whitney Johns natural health and fitness formulations. Backed by Whitney’s tremendous personal endorsement and brand marketing strength, we see this new line dramatically elevating our social engagement, strengthening our brand identity, and especially accelerating our revenue growth at minimal cost. We believe major brand influencers like Whitney will help our formulations reach millions of new consumers and enable us to secure prime shelf placements at major retailers nationwide.
“While we were able to grow our direct sales business at a fast pace in 2021, we saw reduced sales in our wholesale business due to the COVID-19 pandemic. This turned around at the beginning of this year with a large follow-on purchase order for our exclusive Citrus Bergamot SuperFruit™ from XYMOGEN®, a major distributor to healthcare practitioners of clinical-grade nutraceuticals. This and similar follow-on wholesale orders demonstrates the growth of our B2B distribution segment is back on track for this year.
“To support the further growth across all of our segments, we recently appointed Scott Landers as EVP of sales and marketing. He brings to us more than 20 years of exceptional executive experience and accomplishment, including the successful launch of new products and services for KPMG, IBM, DISH Network, CenturyLink, NEC and other industry leaders.
“To add further fuel to our growth in 2022, we have in the works a number of new clinically-backed formulations for additional health offerings like hormone support and gut health. Combined with our expanding sales channels, including Amazon, where we have become a very active seller, we believe we are well on course for at least a doubling of our organic revenue growth in 2022. This excludes the potential positive impact of our active M&A program.
“We also expect to realize certain advantages from our supply chain management and significant post-acquisition overhead reductions we implemented last year, which we see supporting a transition to cash flow positive in the second half of this year.”
Q4 Financial Summary
Net revenue in the fourth quarter of 2021 increased 77% to $672,000 from $380,000 in the previous quarter and up 394% compared to $136,000 in the same year-ago quarter.
Gross profit totaled $48,000 or 7.2% of net revenue as compared to negative $1.3 million in the same year-ago quarter. The increase in gross profit was primarily due to the increased focus on Amazon marketplace along with a reduction in written off inventory.
Operating expenses increased 85% to $712,000 compared to $386,000 in the same year-ago quarter.
Net income totaled $535,000 or $0.00 per basic and diluted share compared to a net loss of $1.6 million or ($0.01) per basic and diluted share in the same year-ago period.
Cash totaled $222,000 as of December 31, 2021, as compared to $59,000 on December 31, 2020. In the first quarter of 2022, the company eliminated virtually all of its convertible debt.
Full Year 2021 Financial Summary
Net revenue in the full year 2021 increased 15% to a record $1.5 million from $1.3 million in 2020. The increase was due primarily to increased sales from heart health products and the focus on Amazon marketplace.
Gross profit was $695,000 or 47.4% of net revenue, compared to negative $578,000 in 2020.
Operating expenses decreased $471,000 to $2.6 million from $3.1 million in 2020. The decrease in operating expenses is primarily attributable to an impairment of assets of $1.6 million in 2020, partially offset by an increase in general and administrative expenses in 2021.
Net loss totaled $2.0 million or $(0.01) per basic and diluted share, as compared to a loss of $2.6 million or $(0.01) per basic and diluted share in 2020.
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 February 19, 2021, 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
Ronald Both or Justin Lumley
Tel (949) 432-7566
Tel (949) 432-7572
HEALTHY EXTRACTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
|FOR THE 3 MONTHS ENDED||FOR THE 12 MONTHS ENDED|
|DECEMBER 31,||DECEMBER 31,
|Less selling fees||(94,783||)||(6,497||)||(210,816||)||(22,839||)|
|COST OF REVENUE|
|Cost of goods sold||199,481||29,459||346,156||465,010|
|Written off inventory||423,767||1,382,364||424,548||1,389,991|
|Total cost of revenue||623,248||1,411,823||770,704||1,855,001|
|General and administrative||711,897||385,701||2,584,256||1,474,891|
|Impairment of assets||–||–||–||1,579,883|
|Total operating expenses||711,897||385,701||2,584,256||3,054,774|
|OTHER INCOME (EXPENSE)|
|Interest expense, net of interest income||(3,855||)||(655||)||(52,453||)||(72,882||)|
|Change in fair value on derivative||1,202,646||3,077||(85,325||)||1,053,186|
|Loss on extinguishment of debt||–||–||–||46,836|
|SBA loan forgiveness||–||29,700||39,833||29,700|
|Gain on sale of asset||–||–||–||–|
|Total other income (expense)||1,198,791||32,122||(97,945||)||1,056,841|
|Net gain/(loss) before income tax provision||535,235||(1,629,500||)||(1,987,122||)||(2,576,375||)|
|Loss per share – basic and diluted||$||0.00||$||(0.01||)||$||(0.01||)||$||(0.01||)|
|Weighted average number of shares outstanding – basic and diluted||319,209,932||237,300,091||319,209,932||237,300,091|
HEALTHY EXTRACTS, INC.
CONSOLIDATED BALANCE SHEETS
|DECEMBER 31,||DECEMBER 31,|
|Total current assets||2,313,404||2,490,158|
|Fixed assets, net of accumulated depreciation of $45,944 and $36,895, respectively||1,035||6,135|
|Total other assets||716,175||625,272|
|LIABILITIES AND STOCKHOLDERS’ DEFICIT|
|Notes payable – related party||170,866||170,866|
|Convertible debt, net of discount of $0.00 and $0.00, respectively||171,750||6,750|
|Convertible debt – related party, net of discount of $0.00 and $0.00, respectively||–||–|
|Accrued interest payable||13,050||2,379|
|Accrued interest payable – related party||14,118||518|
|Total current and total liabilities||558,841||261,604|
|STOCKHOLDERS’ EQUITY (DEFICIT)|
|Preferred stock, $0.001 par value, 75,000,000 shares authorized, none and none shares issued and outstanding, respectively||–||–|
|Common stock, $0.001 par value, 2,500,000,000 shares authorized, 338,384,171 and 308,887,410 shares issued and outstanding, respectively||338,384||308,887|
|Additional paid-in capital||17,075,974||15,501,436|
|Total stockholders’ equity (deficit)||2,470,738||2,853,826|
|TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY (DEFICIT)||$||3,029,579||$||3,115,430|