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Viactiv® Generated Net Revenues of approximately $2.3 Million or 95% of Net Revenues for the Quarter Ended March 31, 2022
HOUSTON, May 12, 2022 (GLOBE NEWSWIRE) -- 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.
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.
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