Healthier Choices Management Corp. (HCMC) reported significant financial developments in its 10-Q filing for the quarter ending September 30, 2024. The company experienced a notable increase in net sales, reporting $52,000 for the three months ended September 30, 2024, compared to $0 for the same period in 2023. For the nine months ended September 30, 2024, net sales reached $345,000, a substantial rise from $39,000 in the prior year. Gross profit also improved, with $37,000 for the third quarter of 2024 versus $0 in 2023, and $155,000 for the nine-month period compared to a loss of $614,000 in 2023.

Despite these positive sales figures, HCMC continued to report net losses. The net loss from continuing operations for the three months ended September 30, 2024, was $(1,868,643), a slight improvement from $(2,071,316) in 2023. For the nine-month period, the net loss increased to $(5,939,295) from $(5,110,093) in the previous year. The total net loss for the third quarter was $(4,347,031), compared to $(2,990,989) in 2023, while the nine-month total net loss rose to $(9,714,854) from $(7,551,045).

The company’s financial position showed a significant decline in total assets, which decreased to $3,784,648 as of September 30, 2024, from $30,969,579 at the end of 2023. Total current assets also fell sharply to $3,391,173 from $11,725,258. Cash and cash equivalents were reported at $2,533,980, down from $3,658,506 at the end of 2023.

Strategically, HCMC completed a spin-off on September 13, 2024, separating its grocery segment into an independent entity, Healthy Choice Wellness Corp. (HCWC). This move resulted in a net reduction to retained earnings of $1.0 million in Q3 2024 and a cash transfer of $2.2 million to HCWC. The company also engaged in various financing activities, including a $5 million line of credit and proceeds from an acquisition loan totaling $7.5 million.

HCMC's operational focus remains on monetizing its intellectual property, particularly through its patented Q-Cup™ technology for vaping. The company is involved in ongoing litigation against major tobacco firms for patent infringement, which may impact its financial outlook. As of September 30, 2024, HCMC reported positive working capital of $200,000 and believes it can meet its obligations for at least the next twelve months, supported by its cash reserves and credit facilities.