Healthy Extracts Inc. reported its financial results for the nine months ended September 30, 2024, showing significant improvements in revenue and profitability compared to the same period in 2023. The company generated consolidated revenue of $2.34 million, a 29% increase from $1.82 million in the prior year. In the third quarter alone, revenue rose by 21% to $744,916 from $613,541 in Q3 2023. The cost of revenue also increased, but at a slower rate, leading to a gross profit of $1.50 million for the nine months, up 42% from $1.06 million in 2023.

Operating expenses saw a substantial decrease, dropping 50% to $1.49 million from $2.98 million in the previous year. This reduction in expenses contributed to a net loss of $393,742 for the nine months, significantly improved from a loss of $2.09 million in 2023. The company reported a net income of $354,466 for Q3 2024, contrasting with a net loss of $247,924 in Q3 2023.

Healthy Extracts has made strategic acquisitions, including BergaMet NA, LLC and Ultimate Brain Nutrients, LLC, which focus on health supplements. However, an acquisition agreement for Hyperion, L.L.C. and Online Publishing & Marketing, LLC was terminated in April 2024. The company continues to focus on its core business of plant-based nutraceuticals, with BergaMet NA generating revenue through various e-commerce channels.

As of September 30, 2024, the company reported total inventory of $2.34 million, down from $3.24 million at the end of 2023. The allowance for inventory also decreased significantly, indicating improved inventory management. The company’s cash position improved to $100,402, up from $19,441 at the end of 2023.

Despite these positive developments, Healthy Extracts faces challenges, including accumulated net losses of $18.79 million since its inception in 2014 and substantial doubt about its ability to continue as a going concern. The company has indicated a need to generate more revenue to fund operations and address immediate cash needs, with plans to raise capital through debt issuance or stock sales.

The company’s financial condition remains precarious, with material weaknesses identified in its internal controls over financial reporting. As of September 30, 2024, the company had 2,989,406 shares of common stock issued and outstanding, reflecting its ongoing efforts to stabilize and grow its operations in the competitive health supplement market.