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Healthier Choices Management Corp (HCMC0.00%) has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing reports net sales of $52 for the quarter, with cost of sales at $15, resulting in a gross profit of $37. The company has closed its brick-and-mortar retail vape stores, focusing on wholesale and online channels.
Operating expenses for the quarter remained consistent at $2,143,442 compared to the same period the previous year.
Total other income (expense), net was $274,762, which includes a $260,000 reversal of accrued professional fees and $15,105 in interest income.
The net loss from continuing operations for the quarter was $1,868,643, compared to $2,071,316 in the previous year.
For the nine months ended September 30, 2024, net sales were $345 with a gross profit of $155. Operating expenses increased to $6,312,846 from $5,448,812 due to higher stock compensation and payroll expenses.
Total other income (expense), net for the nine months was $373,396, including $114,732 in interest income and $260,000 from professional fee accrual reversals.
The net loss from continuing operations for the nine months was $5,939,295, compared to $5,110,093 in the previous year.
Cash and cash equivalents were $2,533,980 as of September 30, 2024, with total assets of $3,784,648. The company has positive working capital of $0.2 million.
HCMC completed the spin-off of its Grocery business into an independent publicly traded company, HCWC, on September 13, 2024. The operating results for HCWC are reported as discontinued operations.
The company is engaged in litigation against Philip Morris (PM-0.87%) and R.J. Reynolds (BTI-0.75%) for patent infringement. The U.S. Court of Appeals for the Federal Circuit ruled in favor of HCMC in its appeal against Philip Morris.
HCMC continues to focus on monetizing its intellectual property through royalty and licensing agreements, facilitated by its subsidiary, HCMC Intellectual Property Holdings, LLC.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Healthier Choices Management Corp quarterly 10-Q report dated November 14, 2024. To report an error, please email earnings@qz.com.