Guardion Health Sciences Announces Financial Results for the Three Months and Six Months Ended June 30, 2023

Viactiv Product Line Total Revenue Increased Approximately 6% for the Six Months Ended June 30, 2023, as Compared to the Six Months Ended June 30, 2022; Robust Growth in Amazon Sales Channel Demonstrates Positive Results of Company’s Focus on eCommerce Initiatives

HOUSTON, Aug. 14, 2023 (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 three months and six months ended June 30, 2023. The Company also provided a corporate update to stockholders.

Financial highlights for the three months and six months ended June 30, 2023 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):

• Total revenue was $2,789,817 for the three months ended June 30, 2023, as compared to $3,275,213 for the three months ended June 30, 2022, a decrease of $485,396 or 14.8%. The decrease in total revenue was driven by reduced sales of the Viactiv product line, which accounted for approximately 97% and 97% of the Company’s total revenue for the three months ended June 30, 2023 and 2022, respectively. Shipments of Viactiv to retail customers were delayed in the month of June 2023 due to the short-term impact of a third-party warehouse expansion, which was fully resolved in July 2023. eCommerce logistics were unaffected by this issue. Amazon net sales for the three months ended June 30, 2023, increased by approximately 334.3% as compared to the three months ended June 30, 2022 and by approximately 124.3% as compared to the three months ended March 31, 2023.
• Gross profit was $1,249,268 for the three months ended June 30, 2023, as compared to $1,399,544 for the three months ended June 30, 2022, a decrease of $150,276 or 10.7%. The reduction in gross profit was primarily attributable to the decrease in sales from the Viactiv product line.
• Gross margin for the three months ended June 30, 2023 was 44.8%, as compared to 42.7% for the three months ended June 30, 2022, an increase of 4.9%, which was driven primarily by an inventory reserve recorded in 2022.
• Total operating expenses for the three months ended June 30, 2023 were $2,261,914, as compared to $3,111,122 for the three months ended June 30, 2022, a decrease of $849,208 or 27.3%. The variance was attributable to a combination of factors, including the amortization of intangible assets in 2022 that was no longer occurring in 2023 and reduced payroll expense and lower executive stock compensation expense.
• Loss from operations for the three months ended June 30, 2023 decreased to $(1,012,646), as compared to $(1,711,578) for the three months ended June 30, 2022, a reduction of $698,932 or 40.8%.
• As a result of the aforementioned factors, and also including the non-cash gain (loss) from the change in fair value of the warrant derivative liability of $(255,300) and $5,357,600 for the three months ended June 30, 2023 and 2022, respectively, net loss was $(1,172,411) for the three months ended June 30, 2023, as compared to net income of $3,655,637 for the three months ended June 30, 2022.
• Basic and diluted net loss for the three months ended June 30, 2023 was $(0.93) per share, as compared to basic and diluted net income of $2.97 per share for the three months ended June 30, 2022, based on 1,267,340 weighted average common shares outstanding in 2023 and 1,231,063 weighted average common shares outstanding in 2022.