Healthier Choices Management Corp. Reports Third Quarter 2021 Financial Results

Delivered an increase in Gross Profit resulting in a 19% reduction in Operating Loss year-over-year

HOLLYWOOD, FL, Nov. 15, 2021 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp. (OTC Pink: HCMC) today announced its financial results for the three-month period ended September 30, 2021, and the year-to-date nine-month period ended September 30, 2021.

Third Quarter 2021 Results and Year-to-Date Highlights:

  • Gross profit from operations increased by approximately $14,000 for the three-month period ended September 30, 2021; amounting to $1.38 million compared to $1.36 million for the same period last year. For the nine-month period ended September 30, 2021, gross profit amounted to $4.33 million versus $4.44 million for the same period last year, a decrease of $113,000.
  • Net loss from continuing operations for the three-month period ended September 30, 2021, improved approximately $251,000 or 19% from the same period last year, amounting to approximately a net loss of $1.05 million compared to $1.30 million, respectively. For the nine-month period ended September 30, 2021, net loss from continuing operations improved approximately $1.24 million or 44% from the same period last year, amounting to $1.57 million versus $2.81 million, respectively.

Jeffrey Holman, Chairman and Chief Executive Officer of HCMC, said, "We had a solid third quarter and are very pleased with our margin performance and execution across the business. This was a significant achievement for HCMC in a challenging supply chain environment.”

Mr. Holman concluded, “We are continuing to explore strategic growth opportunities and are looking forward to launching some of our long-term growth plans, all the while remaining disciplined in cost management. Patience has certainly been a necessary virtue in attempting to avoid any missteps in an ever-changing and tumultuous business environment. To our loyal shareholders, I would like to say thank you for your continued support and we are working diligently to enhance shareholder value. As it becomes available, we will release any updates or news through the appropriate channels of filings and press releases, as we have done in the past.”

Results of Operations

The following table sets forth our Condensed Consolidated Statements of Operations for the Quarter and nine-months ended September 30, 2021, and 2020:


  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  2021  2020  2021  2020 
Total sales, net $3,269,507  $3,347,793  $10,121,153  $10,692,877 
Total cost of sales  1,893,119   1,985,674   5,790,399   6,249,572 
GROSS PROFIT  1,376,388   1,362,119   4,330,754   4,443,305 
Total operating expenses  2,427,255   2,575,921   6,599,224   7,116,461 
LOSS FROM OPERATIONS  (1,050,867)  (1,213,802)  (2,268,470)  (2,673,156)
Total other income (expense), net  986   (87,164)  701,997   (137,783)
NET LOSS FROM CONTINUING OPERATIONS $(1,049,881) $(1,300,966) $(1,566,474) $(2,810,939)

See non-GAAP financial measure discussion

  Three Months Ended  Nine Months Ended 
  September 30,  September 30, 
  2021  2020  2021  2020 
Adjusted EBITDA                
Loss from operations $(1,050,867) $(1,213,802) $(2,268,470) $(2,673,156)
Impairment loss  -   380,646   -   380,646 
Depreciation and amortization  117,966   137,461   379,535   424,020 
Stock compensation  -   1,875   34,375   76,154 
Adjusted EBITDA $(932,901) $(693,820) $(1,854,560) $(1,792,336)

Consolidated Balance Sheets

The following table sets forth our Condensed Consolidated Balance Sheets for the periods ended September 30, 2021, and December 31, 2020:

   September 30, 2021   December 31, 2020 
Cash and cash equivalents $28,172,447  $925,475 
Other current assets  2,333,513   2,081,717 
TOTAL CURRENT ASSETS  30,505,960   3,007,192 
Other assets  6,108,874   8,867,801 
TOTAL ASSETS $36,614,834  $11,874,993 
TOTAL CURRENT LIABILITIES $1,869,455  $5,654,095 
Other liabilities  3,040,737   3,963,530 
TOTAL LIABILITIES  4,910,192   9,617,625 
TOTAL STOCKHOLDERS’ EQUITY  31,704,642   2,257,368 

Non-GAAP – Financial Measure

The following discussion and analysis contain a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position, or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternative to, net income, operating income, and cash flow from operating activities, liquidity, or any other financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future financial results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP.

Management believes stockholders benefit from referring to the Adjusted EBITDA in planning, forecasting, and analyzing future periods. Management uses this non-GAAP financial measure in evaluating its financial and operational decision making and as a means of evaluating period to period comparison.

We define Adjusted EBITDA as net loss from operations adjusted for non-cash charges from depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investor, and analysts to evaluate and assess our core operating results from period to period after removing the impact of significant non-cash charges that effect comparability between reporting periods. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items.

We have included a reconciliation of our non-GAAP financial measure to loss from operations as calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with the reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to specific definition being used and to the reconciliation between such measures and the corresponding GAAP measure provided by each company under applicable rules of the Securities and Exchange Commission.

About Healthier Choices Management Corp. 

Healthier Choices Management Corp. ( is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. Through its wholly owned subsidiary HCMC Intellectual Property Holdings, LLC, the Company manages and intends to expand on its intellectual property portfolio. The Company currently operates six retail vape stores in the Southeast region of the United States, through which it offers e-liquids, vaporizers and related products. The Company also operates Ada’s Natural Market, a natural and organic grocery store, through its wholly owned subsidiary Healthy Choice Markets, Inc. and Paradise Health and Nutrition, stores that offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items through its wholly owned subsidiary Healthy Choice Markets 2, LLC. The Company also sells vitamins and supplements on its website The Company markets its Q-Cup technology under the vape segment. This patented technology is based on a small, quartz cup called the Q-Cup, which a customer can purchase already filled by a third party in some regions or can partially fill themselves with either cannabis or CBD concentrate (approximately 50mg), also purchased from a third party. The Q-Cupcan then be inserted into the patented Q-Unit, which heats the cup from the outside without coming in direct contact with the solid concentrate. This Q-Cup and Q-Unit technology provides significantly more efficiency and an “on the go” solution for consumers who prefer to vape concentrates either medicinally or recreationally. The Q-Cup can also be used in other devices as a convenient micro-dosing system. These products are available on the Company’s website at

Forward Looking Statements.

This press release contains forward looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward-looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management's estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward looking statements may include, but are not limited to, projections or estimates of revenue, income, or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations, expansion or restructuring plans, including our recent exit from, and winding down of our wholesale distribution operations. In addition, when used in this release, the words "anticipates," "believes," "estimates," "expects," "intends," and "plans" and variations thereof and similar expressions are intended to identify forward looking statements.

Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC.

Contact Information: 

Healthier Choices Management Corp. 
3800 North 28th Way, #1 
Hollywood, FL 33020 
Office: 305-600-5004