Guardion Health Sciences Announces Financial Results for the Year Ended December 31, 2023

Viactiv Product Line Generated Net Revenues of Approximately $11.9 Million for the Year Ended December 31, 2023, an Increase of Approximately 12% as Compared to the Year Ended December 31, 2022

HOUSTON, TEXAS, March 29, 2024 (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 year ended December 31, 2023. The Company also provided a corporate update to stockholders.

Financial highlights for the year ended December 31, 2023 include the following:

• Total revenue was $12,248,550 for the year ended December 31, 2023, as compared to $11,049,772 for the year ended December 31, 2022, an increase of $1,198,778, or 10.8%. The Viactiv product line generated net revenues of $11,907,867 for the year ended December 31, 2023, as compared to $10,640,119 for the year ended December 31, 2022, an increase of $1,267,748, or 11.9%. The Viactiv product line accounted for approximately 97.2% and 96.3% of total revenue for the years ended December 31, 2023 and 2022, respectively.
• Gross profit was $5,394,517 for the year ended December 31, 2023, as compared to $4,520,387 for the year ended December 31, 2022, an increase of $874,130, or 19.3%, which was attributable to the increase in sales from the Viactiv product line.
• Gross margin for the year ended December 31, 2023 was 44.0%, as compared to 40.9% for the year ended December 31, 2022, an increase of 3.1 percentage points, which was driven by several factors, including lower transportation costs, and higher sales in 2023.
• Total operating expenses for the year ended December 31, 2023 were $9,730,834, as compared to $21,940,985 for the year ended December 31, 2022. The decrease was attributable to several factors, including the write-off of intangible assets at December 31, 2022, lower executive stock compensation expense, and lower consultant fees.
• Loss from operations for the year ended December 31, 2023 was $(4,336,317), as compared to $(17,420,598) for the year ended December 31, 2022.
• Other income was $4,494,350 for the year ended December 31, 2023, as compared to $2,498,370 for the year ended December 31, 2022, primarily as a result of the non-cash gain from the change in fair value of the warrant derivative liability of $3,984,900 in 2023 as compared to $2,345,800 in 2022.
• As a result of the aforementioned factors, net income was $158,033 for the year ended December 31, 2023, as compared to a net loss of $(14,922,228) for the year ended December 31, 2022.
• Basic and diluted net income per share for the year ended December 31, 2023 was $0.12, as compared to basic and diluted net loss per share of $(14.15) for the year ended December 31, 2022, based on 1,270,846 weighted average common shares outstanding in 2023, as compared to 1,121,000 weighted average common shares outstanding in 2022.
• Cash used in operations for the year ended December 31, 2023 was $4,369,885, as compared to $7,446,812 for the year ended December 31, 2022. The decrease of $3,076,927 in cash used by operating activities in 2023 as compared to 2022 was primarily due to a reduction in general and administrative expenses.
• As of December 31, 2023, the Company had unrestricted cash and cash equivalents of $6,359,646, as compared to $10,655,490 for the year ended December 31, 2022.

Commenting on the results of operations for the year ended December 31, 2023, Jan Hall, Guardion’s President and Chief Executive Officer, said, “We are pleased with the progress made during 2023, which was driven by strong topline growth combined with improved operating margins and a reduced cash burn.”