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 year ended December 31, 2022. The Company also provided a
corporate update to stockholders.
Financial and other highlights for the year
ended December 31, 2022 include the following (all common share and
per share amounts shown below have been adjusted to reflect the
1-for-50 reverse stock split effective January 6, 2023):
-
Revenues were $11,049,772 for the year ended December 31, 2022, as
compared to $7,233,118 for the year ended December 31, 2021, an
increase of $3,816,654. The 52.8% increase in revenues in 2022 as
compared to 2021 was driven by the Viactiv product line, which the
Company owned for the entire 12 months of 2022, as compared to the
last 7 months of 2021.
-
The Viactiv product line generated 96% of the Company’s total
revenues for the year ended December 31, 2022,
-
Gross profit was $4,520,387 for the year ended December 31, 2022,
as compared to $3,110,434 for the year ended December 31, 2021, an
increase of $1,409,953 or 45.3%, which was attributable to sales
from the Viactiv product line.
-
Gross margin for the year ended December 31, 2022 was 40.9%, as
compared to 43.0% for the year ended December 31, 2021. The gross
margin decreased by 2.1 percentage points or 4.9% in 2022 because
of increased transportation, fulfillment and third-party logistics
costs.
-
The Company recorded a non-cash charge to operations for the
impairment of intangible assets of $10,065,833 at December 31,
2022, as compared to a non-cash charge to operations for the
impairment of intangible assets of $11,893,134 at December 31,
2021, almost all of which was related to the Viactiv product line
that was acquired in June 2021.
-
Loss from operations was $(17,420,598) for the year ended December
31, 2022, as compared to a loss from operations of $(24,746,806)
for the year ended December 31, 2021.
-
Basic and diluted net loss per share for the year ended December
31, 2022 was $(14.15), as compared to $(52.23) for the year ended
December 31, 2021. based on 1,121,000 weighted average common
shares outstanding in 2022, as compared to 473,772 weighted average
common shares outstanding in 2021.
-
Cash used in operations was $7,446,812 in 2022, as compared to
$10,644,416 in 2021.
-
As of December 31, 2022, the Company had unrestricted cash and cash
equivalents of $10,655,490.
-
On January 24, 2023, the Company received a letter from The Nasdaq
Stock Market LLC stating that because the Company’s common stock
had a closing bid price at or above $1.00 per share for a minimum
of 10 consecutive trading days, the Company had regained compliance
with the minimum bid price requirement of $1.00 per share for
continued listing on The Nasdaq Capital Market.
Bret Scholtes, Guardion’s President and Chief
Executive Officer, commented, “Over the course of 2022 we
diligently worked to build a stronger clinical nutrition company
despite a challenging macroenvironment that included external
economic pressures, volatile capital markets, a changing consumer
marketplace and complex supply chain issues. Compared to our
results for 2021, we have increased sales and gross profit, while
also reducing major cost categories and streamlining operations. We
plan to continue to evaluate our costs in 2023 in order to further
improve our operating efficiencies.”
“During 2022, we sought new ways to leverage our
brand and increase revenue, which included adhering to our
long-standing commitment to establishing clinical validation for
our products. We also expanded the Viactiv brand’s product
offerings through the launch of our 1,200 mg Omega Boost Gel Bites,
which we have demonstrated to significantly increase Omega-3
saturation levels on red blood cells.”
“Our management team and Board of Directors do
not believe that the current market valuation of the Company
accurately reflects the potential value of the Company,
specifically, the clinical nutrition platform and the brand that we
are building. Accordingly, in March 2023, we retained Alantra, LLC
(“Alantra”) as the Company’s exclusive financial advisor to
implement a strategic review to evaluate alternatives to maximize
stockholder value in the near-term, which could include, among
other alternatives, a sale of the Company or the Viactiv brand, or
a merger, acquisition, reverse acquisition, or other strategic
transaction.”
“We believe that our cash position, the market
position of the Viactiv product line, and our current operating
business strategy provide us with a viable platform from which to
continue our efforts to grow operations, improve financial
performance and maximize stockholder value.”
Financial Results
Additional information with respect to the
Company’s business, operations and financial condition as of and
for the year ended December 31, 2022 is contained in the Company’s
Annual Report on Form 10-K for the fiscal year ended December 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 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 impact of the Company’s exploration of
strategic alternatives, the integration of new management team
members, the implementation of new financial, management,
accounting and business software systems, the identification and
integration of possible acquisition targets and suitors, the impact
of the Covid-19 pandemic, supply chain disruptions, inflation and a
potential recession 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
continued 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
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