Guardion Health Sciences, Inc. (Nasdaq: GHSI) (“Guardion” or the
“Company”), a clinical nutrition company that offers a portfolio of
science-based, clinically-supported products designed to support
the health needs of consumers, healthcare professionals and
providers and their patients, announced its financial results for
the quarter ended March 31, 2022. The Company also provided a
corporate update to shareholders.
The financial highlights presented below were
materially impacted by the Company’s June 1, 2021 acquisition of
the Viactiv® line of supplement chews for bone health, immune
health and other applications, which are profitably marketed
through many of the nation’s largest retailers, including, among
others, Walmart (retail and online), Target and Amazon. The
acquisition significantly transformed the business and operations
of the Company during 2022 as compared to 2021, such that the
required comparisons to the three months ended March 31, 2021
demonstrate the substantial impact that this acquisition has had on
the Company’s results of operations.
Financial highlights for the quarter ended March
31, 2022 include the following:
-
Total revenues were $2,384,619 for the three months ended March 31,
2022, as compared to $233,297 for the three months ended March 31,
2021.
-
Gross profit was $1,096,457 for the three months ended March 31,
2022, as compared to $100,282 for the three months ended March 31,
2021.
-
Loss from operations was $(2,620,048) for the three months ended
March 31, 2022, as compared to $(2,669,525) for the three months
ended March 31, 2021.
-
Basic and diluted net loss per share for the three months ended
March 31, 2022 was $(0.07), as compared to $(0.13) for the three
months ended March 31, 2021, based on 39,150,882 weighted average
common shares outstanding for the first quarter of 2022, as
compared to 21,351,380 weighted average common shares outstanding
for the first quarter of 2021.
-
Net cash used in operations was $(2,226,473) for the three months
ended March 31, 2022, as compared to $(2,420,070) for the three
months ended March 31, 2021.
-
As of March 31, 2022, the Company had cash and short-term
investments of $16,829,612 and working capital of $18,741,555.
Additional significant events that occurred
during the quarter ended March 31, 2022 include the following:
- The Viactiv®
branded e-commerce site via Shopify was opened.
- Omega Boost Gel
Bites, the Company’s first expansion of the Viactiv® brand since
the Company acquired it in June 2021, were launched. The 1,200 mg
Omega-3 Gel Bites are designed to provide total body support,
including cardiovascular, brain, joint and eye health.
- A public
offering of shares of common stock, Class A Warrants and Class B
Warrants for gross proceeds of $11,100,000 was completed in
February 2022.
Bret Scholtes, Guardion’s President and Chief
Executive Officer, commented, “As we reflect on financial and
business developments during the first quarter of 2022, we remain
focused on building a strong foundation for our business and
demonstrating growth and commercial success on top of that
foundation. Of particular note, although the loss from operations
for the three months ended March 31, 2022 was very similar to the
loss from operations for the three months ended March 31, 2021, the
Company had a much more robust business with significant upside in
2022 as compared to 2021, with revenues for 2022 increasing by
10-fold as compared to 2021.
“We are focused on three key objectives as we
seek to maximize shareholder value by acquiring, developing and
marketing a portfolio of science-based, clinically-supported
products designed to support the health needs of consumers,
healthcare professionals and providers and their patients. These
key objectives consist of demonstrating commercial success with our
products, broadening our commercial engine, and strengthening our
clinical nutrition strategy.
“We took a number of steps in the first quarter
of 2022 to help achieve our objectives, including the launch of our
direct-to-consumer website and the new product introduction for our
Omega Boost Gel Bites. The direct-to-consumer website improves our
e-commerce presence for the Viactiv® brand, as well as offering
customers an additional channel to purchase Viactiv products. The
launch of our Viactiv® Omega Boost Gel Bites was our first product
launch under the Viactiv® brand since we acquired the brand in June
2021. This product greatly expands the total addressable market for
Viactiv® and represents an important expansion of the Viactiv®
brand beyond calcium products.
“While the supply chain issues that have plagued
nearly every business certainly have slowed the speed of our
progress, we continue to make headway in achieving our long-term
goals of increased revenue and bringing compelling products to
market under meaningful and differentiated brands that are
supported by strong science. Although these supply chain issues
impacted our business during the three months ended March 31, 2022
and we expect these supply chain challenges to continue into the
third quarter of 2022, we have begun to see some improvement in the
inventory production cycle. Launching new products that utilize a
new supply chain -- such as our Omega Boost Gel Bites -- is an
impactful way to address supply chain issues. We believe that the
launch of our Omega Boost Gel Bites was an important step to
mitigating the supply chain issues that have impacted our calcium
products.
“Our goals are supported by our dedication to
continuing to develop our brand strategy and expanding our sales
channels, while also focusing on ensuring that our scientific
support for each of our products meets our exacting standards. In
the meantime, we are continuing efforts to develop and/or acquire
new products that fit into our existing strategy, while also
constantly evaluating our existing business lines to ensure they
continue to meet our overall strategies.
“Our recently completed $11.1 million securities
offering in February 2022 allows us to focus on and accelerate
these strategic initiatives. We plan to utilize our cash resources
to advance the Company’s evolution over the next few years into a
vital and profitable clinical nutrition company with recognized
brands and consumer trust. We continue to appreciate our
shareholders’ patience as we embark on these important strategic
initiatives and we look forward to reporting our progress to you,”
concluded Mr. Scholtes.
Financial Results
Additional information with respect to the
Company’s business, operations and financial condition as of and
for the quarter ended March 31, 2022 is contained in the Company’s
Quarterly Report on Form 10-Q for the quarterly period ended March
31, 2022, which has been filed with the U.S. Securities and
Exchange Commission (the “SEC”) at www.sec.gov.
About Guardion Health Sciences,
Inc.
Guardion Health Sciences, Inc. (Nasdaq: GHSI),
is a clinical nutrition company that offers a portfolio of
science-based, clinically supported products designed to support
the health needs of consumers, healthcare professionals and
providers and their patients. The Company’s combination of
expertise and scientifically supported products is the foundation
of Guardion’s growing position within the clinical nutrition
marketplace. Information and risk factors with respect to Guardion
and its business may be obtained in the Company’s filings with the
SEC at www.sec.gov.
Forward-Looking Statement
Disclaimer
With the exception of the historical information
contained in this news release, the matters described 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 contain information about our
expectations, beliefs, plans or intentions regarding our product
development and commercialization efforts, research and development
efforts, business, financial condition, results of operations,
strategies or prospects, and other similar matters. Statements
preceded by, followed by or that otherwise include the words
“believes,” “expects,” “anticipates,” “intends,” “projects,”
“estimates,” “plans,” “hopes” and similar expressions or future or
conditional verbs such as “will,” “should,” “would,” “may” and
“could” are generally forward-looking in nature and not historical
facts, although not all forward-looking statements include 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, and involve unknown
risks and uncertainties that may individually or materially impact
the matters discussed herein for a variety of reasons that are
outside the control of the Company, including, but not limited to,
the Company’s ability to raise sufficient financing to implement
its business plan, the integration of new management team members,
the implementation of new financial, management, accounting and
business software systems, the integration of the Viactiv
acquisition and possibly additional acquisition targets, the impact
of the COVID-19 pandemic on the Company’s business, operations and
the economy in general, the Company’s ability to successfully
develop and commercialize its proprietary products and
technologies, and the Company’s ability to maintain compliance with
Nasdaq’s listing requirements. Readers are cautioned not to place
undue reliance on these forward-looking statements, as actual
results could differ materially from those described in the
forward-looking statements contained herein. Readers are urged to
read the risk factors set forth in the Company’s filings with the
SEC, which are available at the SEC’s website (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.
Investor Relations Contact:CORE IRScott
Arnold516-222-2560scotta@coreir.com
Media Relations Contact:Jules AbrahamDirector
of Public RelationsCORE IR917-885-7378julesa@coreir.com
Guardion Health Sciences (NASDAQ:GHSI)
Historical Stock Chart
From Aug 2024 to Sep 2024
Guardion Health Sciences (NASDAQ:GHSI)
Historical Stock Chart
From Sep 2023 to Sep 2024