HEALTHY EXTRACTS INC. Annual Report - How They Did This Year

I’m putting together a simple guide to help you understand how Healthy Extracts Inc. performed this year. My goal is to explain the company’s progress and financial health so you can decide if it fits your portfolio, without the confusing Wall Street jargon.

1. What does this company do?

Healthy Extracts sells natural supplements for heart, brain, and immune health. They own three main brands: Bergamet (heart health), UBN (brain function), and Gummy USA.

In November 2025, they bought Gummy USA for $2.5 million in cash and stock. This move changed them from a simple seller into a manufacturer. By making gummies in-house, they no longer rely on outside factories and can keep the profits they previously paid to those vendors.

2. Financial health: The "Going Concern" warning

This is the most important part for any investor: The company is not currently profitable.

For the year ending December 31, 2025, they brought in $2.8 million in revenue but lost $3.2 million. Since starting, they have accumulated over $20 million in losses. As of year-end, they had only $147,000 in cash—not enough to cover their costs for the next 12 months.

Because of this, auditors issued a "going concern" warning. This means the company is in a fragile spot. They must raise more money—by borrowing or selling more shares—or significantly increase sales just to stay in business. If they cannot find more funding, the business could fail, and you could lose your entire investment.

3. Major wins and changes

• New Manufacturing: Gummies are one of the fastest-growing supplement categories. By owning their own facility, the company can launch new products in 2–3 months instead of 6–9 months.
• High Margins: The company keeps 60% to 70% of every dollar earned after paying for the cost of the products. However, their high spending on marketing, salaries, and research still outweighs this profit.
• Leadership Shift: Donald Swanson is now the majority shareholder and CEO. This move toward an owner-operator model aims to stabilize the company and focus on scaling their manufacturing business.

4. Key risks

• Survival Risk: With only $147,000 in cash and monthly losses often exceeding $200,000, the company is under pressure. Future fundraising will likely involve issuing more shares. This reduces your ownership percentage and may lower the value of your shares.
• Intense Competition: The supplement market is crowded. Healthy Extracts competes against giants like Nestlé Health Science, which have massive advertising budgets that Healthy Extracts cannot match.
• Unproven Results: These products are supplements, not drugs. The FDA has not evaluated them for safety or effectiveness. Any bad publicity or new regulations regarding health claims could hurt the brand and revenue.

5. Future outlook

Management is betting on growth in the weight management and gut health categories. They want to pivot from a marketing-focused startup to a manufacturer. They plan to use their Gummy USA facility to make products for other companies, creating a second source of income to help cover their costs.

Bottom line: This is a high-risk, speculative investment. They have a clear plan to grow, but they are currently in "survival mode." Before investing, ask yourself if you are comfortable with a company that needs to raise more capital just to keep the lights on, and whether you believe their new manufacturing strategy will be enough to turn those high margins into actual profit.