Healthy Extracts Inc

Healthy Extracts Inc operates with a highly leveraged capital structure, as evidenced by a debt-to-equity ratio of 7.27, indicating that the company is financed predominantly through debt. The company's liquidity position is weak, with a current ratio of 0.76, suggesting that it may struggle to meet short-term obligations without additional financing. The negative net cash position, after subtracting total debt, further underscores the company's liquidity challenges.

Profitability metrics are deeply negative, with a return on equity of -5.68 and a return on assets of -0.33, both significantly below the industry median for pharmaceutical companies. The company reported a net loss of $861,260 and an operating loss of $62,070, indicating that it is not currently generating sustainable earnings. Gross profit of $408,360 is insufficient to cover operating expenses, which is a red flag for long-term viability in a capital-intensive industry.

The company's revenue is concentrated in a single business segment, with no disclosed geographic diversification. This lack of diversification increases exposure to market-specific risks, particularly in the evolving regulatory environment for hemp-derived products. No material revenue is attributed to international markets, which limits the company's ability to hedge against domestic regulatory or economic shifts.

Growth trajectory is negative, with no disclosed revenue growth in the most recent period. The company's free cash flow is negative at -$860,710, and operating cash flow is only $18,730, indicating that the company is not generating sufficient cash to fund operations or growth. The outlook for the current fiscal year is not explicitly provided, but the negative financial performance suggests a challenging path to profitability.

Risk factors include high leverage, negative cash flow, and a lack of profitability. The company's liquidity risk is rated as medium, and the risk of dilution is currently low, though the potential for future dilution remains if the company requires additional capital. The company has not disclosed any recent equity offerings or share buybacks, but the presence of a negative net cash position suggests that it may need to raise capital in the near term.

Recent events include the company's continued focus on hemp-derived product development and regulatory compliance. No material changes in management or strategic direction have been disclosed in the latest filings. The company has not issued any new products or entered into significant partnerships in the most recent period.

Revenue grew 44.9% year-over-year to $4.5 million, demonstrating strong top-line expansion momentum.

The company achieved a robust 28.1% revenue CAGR over the last four years, indicating sustained growth.

Gross profit increased to $2.4 million in the latest period, reflecting improved production or pricing power.

Dilution risk is assessed as low, suggesting limited immediate threat to existing shareholder equity value.

A current ratio of 0.79 suggests potential liquidity constraints in meeting short-term financial obligations.