10-K/A: Healthy Extracts Inc. Amends 10-K Filing to Correct Auditor's Report Date

Healthy Extracts Inc. files an amendment to its 2024 annual report solely to correct the date and signature of the auditor's report, with no changes to the financial or other information.

Summary

• Healthy Extracts Inc. has filed an amendment to its annual report on Form 10-K for the year ended December 31, 2024.
• The amendment is solely for the purpose of correcting the date and signature of the auditor's report.
• No other changes have been made to the original filing, and the amendment does not reflect events occurring after the original filing date of April 1, 2025.
• The company's focus remains on increasing revenue, maintaining margins, and generating positive cash flow from existing operations.
• Healthy Extracts operates as a platform for acquiring, developing, patenting, marketing, and distributing plant-based nutraceuticals.
• The company's products target high-growth categories within the nutraceuticals market, such as heart, brain, and immune health.
• The overall nutraceutical market is growing at a 7.8% CAGR and is expected to reach $441 billion by 2026.
• The company's BergaMet products address the heart-health ingredients market, projected to grow at a 4.6% CAGR to reach $55.3 billion by 2027.
• UBN products tap into the brain health market, growing at a 9.4% CAGR and expected to reach $15.7 billion by 2030.
• The company's net loss from inception to December 31, 2024, was $19,240,344, with cash resources of $112,020.
• The company's ability to continue as a going concern is dependent on raising additional capital and achieving significant operating revenues.

Sentiment

Score: 4

Explanation: The document is primarily factual, reporting an amendment to correct an error. However, the financials reveal a concerning financial position with a significant accumulated deficit and limited cash, raising doubts about the company's ability to continue as a going concern. The company's future depends on raising capital and achieving significant operating revenues.

Positives

• The company operates in growing nutraceutical markets, including heart health and brain health.
• The company is focused on increasing revenue and maintaining margins.
• The company has a multi-channel marketing strategy, including e-commerce, distributors, and direct-to-consumer sales.
• The company has an influencer program to expand sales and brand awareness.
• The company is planning to expand its product portfolio and sales channels.

Negatives

• The company has a significant accumulated deficit of $19,240,344.
• The company has limited cash resources of $112,020 as of December 31, 2024.
• The company's auditors have expressed doubt about its ability to continue as a going concern.
• The company relies on a single supplier relationship for licensing and manufacturing.
• The company faces intense competition from larger, more established competitors.
• The company is subject to extensive governmental regulations.

Risks

• The company's ability to continue as a going concern is dependent on raising additional capital and achieving significant operating revenues.
• The company relies on a single supplier relationship for licensing and manufacturing, and termination of that agreement could have a material effect.
• The company faces intense competition from larger, more established competitors.
• The company is subject to extensive governmental regulations.
• The company's success depends on maintaining the value and reputation of its brands.
• The company may fail to attract, acquire, or retain customers at its anticipated growth rate.
• The company is dependent on key personnel, and the loss of their services could negatively impact operations.
• The company may be negatively affected by the risks associated with international trade and importation issues.

Future Outlook

The company plans to expand its product portfolio to include supplements that support gut health, CoQ10, weight management, and hydration, as well as introduce more products in gel-pack format. The company will continue to evaluate potential acquisition opportunities to expand its product portfolio and benefit from its marketing strength and multi-channel distribution.

Management Comments

• Over the last year, we have focused on increasing revenue, maintaining our margins, and generating positive cash flow from our existing operations.
• In part, we have been successful in meeting these objectives and our business has remained relatively unchanged.

Industry Context

The company operates in the growing nutraceuticals market, which is driven by changing lifestyles, consumer desire to move away from expensive prescription medicine, an aging population, and increased life expectancy. The company's products target specific high-growth categories within the nutraceuticals market, such as heart, brain, and immune health.

Comparison to Industry Standards

• The overall nutraceutical market is growing at a 7.8% CAGR and is expected to reach $441 billion by 2026, according to ReportLinker.
• The global heart-health ingredients market is projected to grow at a 4.6% CAGR to reach $55.3 billion by 2027, according to ResearchAndMarkets.
• The brain health market is growing at a 9.4% CAGR and is expected to reach $15.7 billion by 2030, according to Grandview Research.
• The gut health market is growing at a 7.9% CAGR to reach nearly $72 billion by 2027, according to Fortune Business Insights.
• The company's gross margin ranges from 60% to 70%, depending on product and market channel.
• The company's BergaMet PRO+ product has 47% Bergamot Polyphenolic Fraction Gold (BPF Gold) potency, compared to its closest competitor at only 38% BPF.

Legal Proceedings

• On November 14, 2022, BergaMet NA, LLC, our subsidiary, received a warning letter from the FDA regarding claims we allegedly make about our Cholesterol Command product.
• On December 1, 2022, we responded to the warning letter notifying the FDA that we had hired a third-party to review our advertising and revise portions of our website, Facebook page, and online product listings.

Related Party Transactions

• The company has entered into numerous transactions with Jay Decker, our majority shareholder, including the BergaMet acquisition, the Ultimate Brain Nutrients, LLC acquisition, warrant issuances, and promissory notes.
• On October 1, 2019, we entered into an Independent Contractor Agreement with Kevin Duke Pitts.
• Effective June 1, 2022, we entered into a Consulting Agreement with Robert Madden.

Stakeholder Impact

• Shareholders face the risk of losing their investment if the company is unable to continue as a going concern.
• Employees' jobs may be at risk if the company is unable to secure additional financing and achieve profitability.
• Customers may be affected if the company is unable to maintain its product quality and availability.
• Suppliers and creditors may be affected if the company is unable to meet its financial obligations.

Next Steps

• The company plans to expand its product portfolio and sales channels.
• The company will continue to evaluate potential acquisition opportunities.
• The company will seek additional financing through debt and equity financing.

Key Dates

Keywords

nutraceuticals, heart health, brain health, immune health, BergaMet, UBN, financials, annual report, Healthy Extracts, 10-K, amendment