Viactive® The product line generated net revenues of approximately $11.9 million for the year ended December 31, 2023, an increase of approximately 12% compared to the year ended December 31, 2022.
HOUSTON, Texas, March 29, 2024 (GLOBE NEWSWIRE) — Guardion Health Sciences, Inc. (Nasdaq: GHSI) (“Guardion” or the “Company”) provides a portfolio of science-based clinical nutrition products. A clinical nutrition company that provides The company, whose support products are designed to support the health needs of consumers, medical professionals, providers and their patients, announced its financial results for the year ended December 31, 2023. The company also provided shareholders with a corporate update.
Financial highlights for the year ended December 31, 2023 include:
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Total revenue for the year ended December 31, 2023 was $12,248,550 compared to $11,049,772 for the year ended December 31, 2022, an increase of $1,198,778, or 10.8%.Viactive® Net revenues from our product lines increased $1,267,748, or 11.9%, to $11,907,867 for the year ended December 31, 2023 and $10,640,119 for the year ended December 31, 2022.Viactive® Our product lines accounted for approximately 97.2% and 96.3% of our total revenue for the years ended December 31, 2023 and 2022, respectively.
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Gross profit for the year ended December 31, 2023 was $5,394,517 compared to $4,520,387 for the year ended December 31, 2022, an increase of $874,130, or 19.3%. This was due to increased sales of the Viactiv product line.
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Gross margin for the year ended December 31, 2023 was 44.0%, compared to 40.9% for the year ended December 31, 2022, an increase of 3.1 percentage points. This was driven by several factors such as lower transportation costs and increased sales. In 2023.
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Total operating expenses for the year ended December 31, 2023 were $9,730,834 compared to $21,940,985 for the year ended December 31, 2022. This was due to several factors, including the amortization of intangible assets. Reducing executive stock compensation costs and consulting fees.
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Operating loss for the year ended December 31, 2023 was $(4,336,317). In comparison, operating loss for the year ended December 31, 2022 was ($17,420,598).
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Other income was $4,494,350 for the year ended December 31, 2023, compared to $2,498,370 for the year ended December 31, 2022. This was primarily the result of a non-cash gain of $3,984,900 from changes in the fair value of our warrant derivative liability for the year ended December 31, 2022. in 2023 compared to $2,345,800 in 2022.
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As a result of the foregoing factors, our net income for the year ended December 31, 2023 was $158,033. This compared to a net loss of $14,922,228 for the year ended December 31, 2022.
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Basic and diluted net income per share for the year ended December 31, 2023 was $0.12. In comparison, basic and diluted net loss per share for the year ended December 31, 2022 was based on weighted average common shares outstanding of $1,270,846. The weighted average number of common shares outstanding in 2022 was 1,121,000 shares and in 2023 it was 1,121,000 shares.
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Cash used in operating activities was $4,369,885 for the year ended December 31, 2023, compared to $7,446,812 for the year ended December 31, 2022. The decrease of $3,076,927 compared to 2017 was primarily due to expense reductions. General and administrative expenses.
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As of December 31, 2023, our unrestricted cash and cash equivalents were $6,359,646 compared to $10,655,490 for the year ended December 31, 2022.
Jan Hall, Guardion's president and chief executive officer, commented on the company's results for the year ended December 31, 2023: And cash burn will also decrease. ”
Recent trends in 2024
Activ Nutritional, LLC Sales Agreement
On January 30, 2024, the Company entered into a stock purchase agreement (the “Purchase Agreement”) with Doctor's Best Inc., a Delaware corporation, to sell all outstanding equity interests in Activ Nutritional, LLC (“Activ”). It has been concluded. ) Total cash consideration of $17.2 million was paid, of which $1.7 million was placed in a third-party escrow account pursuant to the terms of the purchase agreement. Doctor's Best Inc. is a wholly owned subsidiary of Kingdom Way USA Corp., a U.S. subsidiary holding company of Xiamen Kingdom Way Group Company (“XKDW”), which is listed on the Shenzhen Stock Exchange.
The sale of Activ as contemplated in the Purchase Agreement is subject to approval by our stockholders as a sale of Activ, which owns Viactiv.® The sales represented 97.2% and 96.3% of our revenue for the years ended December 31, 2023 and 2022, respectively, and represented the sale of substantially all of our assets and revenue-generating operations. The transactions contemplated by this purchase agreement are the result of extensive consideration of strategic alternatives by our board of directors. Our board of directors has determined that it is prudent and in the best interest of our company and our stockholders to approve this transaction.
Possibility of dissolution
If our stockholders approve the transaction and the transaction is completed, we will be left with minimal operations. The Board of Directors has further determined that it is prudent and in the best interest of the Company and its stockholders to approve the voluntary dissolution and liquidation of the Company in accordance with the Plan of Liquidation and Dissolution. If this is approved, we will be accredited. However, such decisions are subject to our ability to abandon or postpone our plans for liquidation and dissolution if our board of directors determines that an alternative transaction is in our best interests. shareholder of the company. Subject to approval of our plan of liquidation and dissolution by our stockholders, our board of directors will determine in its sole discretion whether to proceed with the dissolution and when to file a certificate of dissolution.
On March 15, 2024, the Company filed a preliminary proxy statement with the U.S. Securities and Exchange Commission (the “SEC”) seeking stockholder approval in connection with the planned sale and liquidation of Activ. dissolution. The Company has set May 23, 2024 as the date for a special meeting of stockholders to vote on these transactions (and other matters described in the definitive proxy statement) (the “Special Meeting”); The end date of the general meeting of shareholders has been decided. The record date for notice and voting shareholders of the special meeting will be April 5, 2024.
Summary of financial results
Additional information regarding our business, operations and financial condition for the year ended December 31, 2023 is included in our filed Annual Report on Form 10-K for the year ended December 31, 2023. Contact the SEC at www.sec.gov.
About Guardion Health Sciences, Inc.
Guardion Health Sciences, Inc. (Nasdaq: GHSI) provides science-based, clinically supported products designed to support the health needs of consumers, healthcare professionals, providers, and their patients. A clinical nutrition company with a portfolio of Information and risk factors about Guardion and its business are available in the company's SEC filings at www.sec.gov.
Additional information and where to find it
In connection with the Acquisition Agreement and the proposed transaction, the Company intends to file a definitive proxy statement with the SEC, which will be provided to the Company's stockholders in connection with the solicitation of proxies to vote stockholders with respect to the Shares. It is scheduled to be distributed. the proposed transaction and other matters contained in the definitive proxy statement. This press release does not contain any information that our stockholders should consider with respect to the proposed transaction and is not intended to serve as the basis for any voting or investment decision with respect to the proposed transaction. Our stockholders and other interested parties are urged to read the definitive proxy statement and any amendments thereto and the documents incorporated by reference filed with the SEC in connection with the proposed transaction, when available. It is recommended. These materials contain important information. About the Company, Purchase Agreement, and Proposed Transaction.
Non-solicitation
This press release shall not be deemed a proxy statement or solicitation of a proxy, solicitation material regarding any consent or authorization with respect to the securities or the proposed transaction, and shall not constitute an offer to sell or the solicitation of an offer. There may be no purchase or sale of any securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such state or jurisdiction. It won't. No securities may be offered except by means of a prospectus meeting the requirements of the Securities Act of 1933, as amended.
Disclaimer regarding forward-looking statements
Certain matters herein may contain “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include our expectations, beliefs regarding our product development and commercialization efforts, research and development efforts, business, financial condition, results of operations, strategies or prospects, and other similar matters; Contains information about plans or intentions. “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, “plan”, “hope” and similar expressions, words referring to the future or conditions; Sentences that include words before, after, or other than verbs such as “would,'' “should,'' “would,'' “might,'' and “could'' generally Although forward-looking statements are inherently forward-looking and not historical facts, not all forward-looking statements contain the foregoing.
These statements are based on management's current expectations and assumptions about future events, which are inherently subject to uncertainties, risks and changes in circumstances that are difficult to predict. , involve unknown risks and uncertainties that may individually or materially affect the matters discussed herein. For various reasons beyond our control. these include, but are not limited to, the successful completion of the sale of Activ to Doctor's Best Inc., the use of the proceeds of the sale and our continued ability to provide financing; the Company's operations, including the post-sale eye health care business, the replacement and integration of new management team members, the implementation of new financial, administrative, accounting and business software systems, supply chain disruptions, inflation and the Company's potential economic downturn; . our business, operations and general economics; our ability to successfully develop and commercialize our proprietary products and technologies; and our ability to maintain compliance with Nasdaq's continued listing requirements.
Readers are cautioned not to place undue reliance on the forward-looking statements contained herein, as actual results may differ materially from those described in such forward-looking statements. We encourage readers to read the risk factors described in our SEC filings. The filing is available on the SEC's website at www.sec.gov. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
For more information about Guardion Health Sciences, Inc., please contact us at:
investor@guardionhealth.com
Phone: 1-800 873-5141 extension 208
