American Marconi Wireless News - Healthy Extracts Reports Record Q1 2025 Results; Remains on Target for 34%+ Growth in 2025

LAS VEGAS, NV / ACCESS Newswire / May 13, 2025 / Healthy Extracts Inc. (OTCQB:HYEX), a leader in plant-based nutraceutical innovations, reported results for the first quarter ended March 31, 2025. All comparisons are to the year-ago quarter unless otherwise noted.

Financial Highlights

• Direct-to-consumer subscription-based customers increased 83% and Amazon "Subscribe & Save" customers increased 81% as compared to the same year ago quarter. In addition to the benefits of generating recuring revenue, subscriptions enhance customer communications, improve customer retention and extend customer lifetime value.

Operational Highlights

• Record Amazon sales helped maintain Healthy Extracts' top three category ranking on Amazon, with the strong performance due to the company's highly optimized sales and marketing strategies.

• Advanced the development of several new products across new product categories, including products that feature the recently announced new fiber drinking straw technology. The planned launch of these products expected to benefit from strategic cross promotion to the company's growing customer base.

Major Subsequent Events

The company introduced the WHITNEY JOHNS™ Gut Health Straw™ , the world's first fiber pre- and probiotic delivery straw. The innovative product was developed in partnership with fitness influencer and health advocate, Whitney Johns, and has already generated strong market interest and sales.

Designed for maximum convenience and effectiveness, the revolutionary product allows consumers to reap the many health benefits of a naturally flavored, sugar-free, prebiotic and probiotic blend by simply sipping through a straw-no pills, powders or hassles, just better gut health one sip at a time.

The new product launch is benefiting from a fast-growing digestive health products market that is expected to more than double in size to more than $105 billion by 2033, according to Precedence Research .

Encouraged by the success of this product launch, the company subsequently announced it entered an exclusive joint product development agreement with Lelantos Fibre , a pioneer in the formulation and manufacturing of fiber drinking straws which produced the new WHITNEY JOHNS Gut Health Straw.

The deal expands Healthy Extracts' portfolio of unique nutritional supplement delivery systems and enables the development of exclusive nutrient-infused straw formulations. The advanced, just-in-time straw manufacturing technology will enable Healthy Extracts to efficiently and cost effectively bring new products to market in less than eight weeks, as well as offer private label options-all at dramatically lower cost points compared to capsules or gummies.

Management Commentary

"After a year of record-breaking revenue growth and strong positive cash flow, the momentum continued into the first quarter," said Healthy Extracts president, Duke Pitts. "Our first quarter record results underscore the strength of our sales performance across both direct-to-consumer and retail channels.

"During the quarter we maintained our top three ranking on Amazon in our category, demonstrating the impact of our optimized marketing strategies and consumer preference for our proprietary formulations with unique ingredients that support heart and brain health.

"Earlier this month, we launched the Whitney Johns Gut Health Straw , our first product featuring a new, proprietary oral delivery system for our nutrient formulations. We see this technology disrupting the gut health market in an unprecedented way in how it offers unmatched convenience combined with a premium consumer experience.

"Our new exclusive partnership with Lelantos Fibre announced last week accelerates our ability to deliver such cutting-edge health solutions at scale. The patent-pending technology provides us a competitive edge and first-mover advantage that will accelerate our sales and brand growth like no other innovations we've introduced to date.

"This addition to our technology portfolio of another unique oral delivery system allows us to expand into new distribution channels, such as fitness and elderly care centers, as well as further into physical retail, healthcare provider networks and direct-to-consumer subscriptions. The straws will be especially helpful for those suffering from 'pill fatigue' or have difficulty swallowing. We see it becoming very popular with the younger generation who typically don't like swallowing pills.

"Together with Lelantos, we will be developing a full range of functional straws that target additional high-demand areas of health and wellness, such as hydration, workout recovery, and metabolic health. This includes straws scientifically infused with GLP-1 for regulating blood sugar levels and appetite.

"We are already preparing to roll out product formulations across these and other new product categories, with strategic cross-promotion planned across all channels. We see these innovative products allowing us to tap a global functional foods and beverage market that is expected to exceed $793 billion by 2032, according to Fortune Business Insights , and growing at a CAGR of more than 10%-which is phenomenal for a market this size.

"As the result of years of research and development, we will soon introduce several new products across new product categories. The near-term lineup includes a groundbreaking, on-the-go hydration solution, an easy-to-consume sugar blocker, and a convenient gel pack for gut health and anti-aging.

"Perhaps most exciting of all will be our revolutionary heart health formulation that will provide a long-needed solution to the more than 40 million statin users in the U.S. We plan to drive even greater sales by cross-promoting across our product categories.

"To capture this huge market opportunity and leverage our first-mover advantage, we plan to reinvest our profits into product innovation and distribution expansion. We also believe that our solid cash flow and highly favorable capitalization structure allows us to pursue certain opportunistic M&A opportunities, particularly those which would provide additional exclusive IP that differentiates us from our industry peers.

"We believe our customer retention, product innovation, and strategic engagement continues to differentiate our company and brands from the competition. Given the strong leverage we have created in our business model, we see each of our new products generating millions in additional revenues with high gross margins. Altogether, we believe we are well-positioned to drive sustained growth and enhanced profitability over the quarters ahead."

2025 Financial Outlook

Based on the strong revenue performance in the first quarter of 2025 and better visibility into the remainder of the year, in the company's first quarter preliminary result press release issued on April 17, the company increased its outlook for total net revenue in 2025 to more than $4.2 million. This represents growth of more than 34% over 2024 and an increase of $200,000 from the previous guidance for 2025.

New product launches across new categories and formats that are scheduled for throughout the year are expected to drive this growth with greater profitability (excluding non-cash-based expenses).

The new products are expected to benefit from the broad market channels the company has strategically developed and invested in over the last several years. The company plans to drive future growth by reinvesting its profits into new product development and channel expansion.

2025 Product Outlook

Healthy Extracts is planning to launch several new products before the end of the second quarter:

• Revolutionary heart health formulation targeting an unmet need of more than 40 million statin users in the U.S.

• MYNUS sugar blocker 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.

• Hydrate EZ: on-the-go gel pack specially formulated to provide hydration, focus, recovery, and sleep benefits without need for mixing.

Healthy Extracts' top brand ambassador and renowned fitness expert, Whitney Johns, is also preparing to launch WHITNEY JOHNS™ NUTRITION on-the-go gel packs for gut health in the second quarter of 2025.

In the second half of 2025, the company plans to launch a COLLAGEN (anti-aging) in an on-the-go gel pack. These products will be based on Healthy Extracts' exclusive gel delivery system and proprietary formulations.

Also in the second half, the company plans to roll out a full range of functional fiber straws that address high-demand segments of health and wellness, such as hydration, workout recovery, and metabolic health. This is expected to include a straw product scientifically infused with GLP-1 for regulating blood sugar levels and appetite.

Q1 2025 Financial Summary

Net revenue in the first quarter of 2025 increased 35% to $931,000 from $689,000 in the first quarter 2024, primarily due to product line and distribution channel expansion.

Gross profit increased to $425,000 million or 45.6% of net revenue from $408,000 million or 59.3% of net revenue in the first quarter of 2024. The decrease in gross margin was a result of an unusually greater percentage of bulk sales during the quarter which carry a lower margin.

Operating expenses increased 13% to $534,000, compared to $470,000 in the first quarter of 2024. The increase was due in part to an increase in advertising fees which supported the growth in revenue.

Net loss totaled $399,000 or $(0.13) per basic and diluted share, as compared to a net loss of $861,000 or $(0.30) per basic and diluted share in the first quarter of 2024. The improvement in net loss was primarily due to a change in the fair value of derivative.

Adjusted EBITDA totaled negative $60,000 or $(0.02) per share, as compared to positive adjusted EBITDA of $12,000 or $0.01 per share in the first quarter of 2024. (see definition of adjusted EBITDA, a non-GAAP term, and its reconciliation to GAAP, below). The decrease was primarily due to an increase in advertising fees which supported the growth in revenue.

The company continued to generate positive operating cash flow in the quarter, totaling $60,000, which increased from $18,700 in the same year-ago quarter.

About Healthy Extracts

Healthy Extracts Inc. (OTCQB:HYEX) is an innovative platform company focused on science-based nutraceuticals for heart, brain, metabolic, and gut health. With clinically validated formulations and strategic partnerships, the company is redefining natural health through groundbreaking delivery systems and influencer-backed product lines.

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.

Use of Non-GAAP Measures

This press release contains financial measures that are not recognized measures under accounting principles generally accepted in the United States of America ("GAAP"), which are EBITDA and adjusted EBITDA. EBITDA is defined for the purposes of this press release as net income before Income tax expense, Interest expense, depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the gain or loss related to stock-based option/warrant expense, change in fair value of derivative, and offering costs.

Healthy Extracts' management believes that EBITDA and adjusted EBITDA are useful supplemental measures of our operating performance and provide our investors meaningful measures of overall corporate performance. EBITDA is also presented because management believes that it is frequently used by investment analysts, investors, and other interested parties as a measure of financial performance. Adjusted EBITDA is also presented because management believes that it provides our investors additional measures of our core business. However, non-GAAP measures do not have a standardized meaning prescribed by GAAP, and investors are cautioned that non-GAAP measures, such as EBITDA and adjusted EBITDA, should not be construed as an alternative to net income or loss or other income statement data (which are determined in accordance with GAAP) as an indicator of our performance or as a measure of liquidity and cash flows. Management's method of calculating EBITDA and adjusted EBITDA may differ materially from the method used by other companies and, accordingly, may not be comparable to similarly titled measures used by other companies.

A reconciliation of EBITDA and adjusted EBITDA to net income, the most comparable GAAP measure, is included in the table below. See the table, Consolidated Statement of Operations, provided further below for the weighted average number of common shares used for the determination of adjusted EBITDA basic and diluted earnings per common share.

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
CMA Investor Relations
Tel (949) 432-7554
Email contact

HEALTHY EXTRACTS, INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE MONTHS ENDING MARCH 31, 2025 AND 2024
(Unaudited)

HEALTHY EXTRACTS, INC.
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2025 AND DECEMBER 31, 2024
(Unaudited)

SOURCE: HEALTHY EXTRACTS INC.

View the original press release on ACCESS Newswire

L.Harper--AMWN