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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  
           

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