Healthier Choices Management Corp. Reports $1.99 Million Net Loss in Q2 2025

Healthier Choices Management Corp. (HCMC) reported its financial results for the second quarter of 2025, revealing a net loss of $1.99 million for the three months ending June 30, compared to a loss of $2.51 million in the same period of 2024. For the first half of 2025, the company recorded a net loss of $4.18 million, slightly higher than the $4.07 million loss reported for the first half of 2024. Revenue remained minimal, with net sales of $1,000 for the second quarter and $2,780 for the first half, reflecting a significant decline in operational activity following the closure of all brick-and-mortar retail vape stores.

The company’s total operating expenses for the second quarter were approximately $2 million, consistent with the previous year’s figures. The cost of sales also increased to $23,834 for the quarter, up from $42 in the prior year, indicating a shift in operational focus. HCMC has transitioned its sales strategy from retail to wholesale and online channels, which has impacted its revenue generation capabilities. The company continues to face challenges in bringing new products to market, which has further constrained sales.

In terms of financial position, HCMC reported total assets of $1.54 million as of June 30, 2025, down from $2.22 million at the end of 2024. Current liabilities surged to $3.92 million, compared to $2.67 million at the end of the previous fiscal year, primarily due to an increase in amounts due to related parties. The company’s cash and cash equivalents decreased to approximately $1.12 million, with negative working capital of $2.6 million, raising concerns about its liquidity. HCMC has indicated that it will rely on its existing cash reserves and a $5 million line of credit to meet its obligations over the next twelve months.

Strategically, HCMC has focused on monetizing its intellectual property, particularly through its patented Q-Cup™ technology, which is aimed at the vaping market. The company has also undergone significant organizational changes, including the spin-off of its grocery business into a separate publicly traded entity, Healthy Choice Wellness Corp. (HCWC), which was completed in September 2024. This spin-off has allowed HCMC to concentrate on its core intellectual property and product development efforts.

Looking ahead, HCMC's management has acknowledged the need to reduce costs and secure additional capital to sustain operations. The company is actively working to improve its internal controls and operational efficiencies, although it has reported material weaknesses in its financial reporting processes. The outlook remains cautious, with expectations of continued losses as the company navigates its transition and seeks to enhance its market position.