Healthy Extracts Inc. Reports 35% Revenue Growth to $931,280 in Q1 2025

Healthy Extracts Inc. reported a revenue of $931,280 for the first quarter of 2025, marking a 35% increase from $688,786 in the same period of 2024. The company's cost of revenue also rose significantly, reaching $506,295 compared to $280,428 a year earlier, resulting in a gross profit of $424,985, which is a modest increase of 4% from $408,358. Despite the revenue growth, the company recorded a net loss of $398,860 for the quarter, an improvement from the loss of $861,259 reported in the first quarter of 2024.

The increase in revenue can be attributed to enhanced direct consumer sales and marketing efforts, which the company expects to continue driving growth. However, the cost of revenue as a percentage of total revenue increased to 54% in Q1 2025 from 41% in Q1 2024, indicating rising costs associated with sales. Operating expenses also grew, totaling $533,833, up from $470,431, primarily due to increased advertising and consulting fees.

Healthy Extracts' total assets increased to $2.41 million as of March 31, 2025, compared to $2.38 million at the end of 2024. The company’s cash position improved slightly, with cash on hand rising to $118,798 from $112,020. However, total liabilities also increased significantly to $2.35 million, up from $1.97 million, largely due to an increase in accounts payable and accrued liabilities. The accumulated deficit grew to $19.64 million, reflecting ongoing financial challenges.

Operationally, the company has focused on maintaining its market presence in the nutraceutical sector, particularly through its subsidiaries, BergaMet NA, LLC and Ultimate Brain Nutrients, LLC. Despite the challenges, Healthy Extracts remains committed to its strategy of acquiring and developing health products that cater to high-growth categories within the nutraceutical market. The company has not completed any new acquisitions since the termination of its agreement with Hyperion, L.L.C. and Online Publishing & Marketing, LLC in April 2024.

Looking ahead, Healthy Extracts plans to continue seeking funding through debt and equity financing to support its operations and growth initiatives. The management acknowledges the uncertainty surrounding its ability to sustain operations without additional capital and emphasizes the importance of increasing revenues to meet cash flow needs. The company remains focused on enhancing its product offerings and expanding its market reach, particularly in the United States and Canada.