Guardion Health Sciences, Inc. (“Guardion” or the “Company”)
(Nasdaq: GHSI), a company that (i) has developed medical foods and
medical devices in the ocular health marketplace and (ii) is
developing condition-specific nutraceuticals that the Company
believes will provide supportive health benefits to consumers,
announced today its financial results for the quarter ended March
31, 2020. The Company also provided a corporate update and product
overview.
“We are pleased with the progress made over the
first quarter of 2020. We continued to execute strategically and
were able to maintain total revenue, with a slight 1% increase,
compared to the same period of last year, despite the current
coronavirus pandemic. While our medical device sales slowed due to
doctor office closures as a result of government mandated
stay-at-home orders that commenced in March, we were able to offset
this by a 40% increase in our medical foods revenue. We are also
executing on our vision to include nutraceuticals in our product
portfolio through the NutriGuard brand,” commented Michael Favish,
CEO of Guardion®. “Additionally, in April, we launched acuMMUNE, a
proprietary immuno-supportive complex designed with the objective
of supporting effective immune function and received an initial
order for $875,000 from Astramune Sdn Bhd, a subsidiary of Ho Wah
Genting Berhad (KLSE: 9601), a Malaysian company listed on the
Malaysian Stock Exchange.”
Recent Corporate Highlights
|
● |
Announced the publication of a study demonstrating Lumega-Z®
superiority in a head-to-head comparison showing higher blood
concentration levels of carotenoids and restoring of macular
pigment density versus the current standard AREDS 2 soft gel
supplement in a tier-one peer-reviewed journal, Nutrients; |
|
● |
Announced the launch of acuMMUNE™ (trademark registration pending),
the Company’s proprietary immuno-supportive complex designed with
the objective of supporting effective immune function, under its
NutriGuard™ business line in April 2020; |
|
● |
Received net proceeds of $3.5 million from the exercise of warrants
during March 2020; |
|
● |
Selected by Malaysian company, Ho Wah Genting Berhad (“HWGB”), in
February 2020, to develop an immune-supportive formula designed to
provide immuno-supportive benefits. |
Mr. Favish continued, “As we look forward to the
remainder of the year, we intend to continue building out our
online medical foods distribution channels which were bolstered by
our acquisition of NutriGuard last year. Direct-to-consumer sales
not only has the potential to benefit users by providing an easy
way to access our products, but also helps to diversify our
business from solely relying on distribution through doctors’
offices, while introducing subscription-based recurring revenue
generation.”
Summary of First Quarter 2020 Financial
Results
For the three months ended March 31, 2020,
revenue from product sales was $245,723 compared to $242,538 for
the three months ended March 31, 2019, an increase of $3,185 or 1%.
The relatively flat overall performance reflects a combination of
improved sales of medical foods offset by a decrease in device
sales primarily due to the transition of sales and manufacturing
efforts away from our VectorVision CSV-1000 device to the CSV-2000
device. Although the CSV-1000 will continue to be sold, the Company
plans to put a greater focus on sales and marketing efforts of the
new CSV-2000. The Company commenced sales of the next generation
CSV-2000 device in February 2020.
For the three months ended March 31, 2020, cost
of goods sold was $109,108 compared to $93,492 for the three months
ended March 31, 2019, an increase of $15,616 or 17%. This
difference reflects the costs associated with the increase in
medical food sales and the effect of the decrease in device sales
noted above. in addition, an inventory adjustment affecting cost of
sales was recorded in March 2020.
For the three months ended March 31, 2020, gross
profit was $136,615 compared to $149,046 for the three months ended
March 31, 2019, a decrease of $12,431 or 8%. Gross profit
represented 56% of revenues the three months ended March 31, 2020,
versus 61% of revenue for the three months ended March 31,
2019.
For the three months ended March 31, 2020, the
Company incurred a net loss of $2,346,913, compared to a net loss
of $1,385,099 for the three months ended March 31, 2019. The
increase in net loss of $961,814 or 69% compared to the prior year
period was primarily due to increases in stock compensation, legal,
and professional services costs during the current period as
compared to the prior year.
The Company had approximately $12.9 million in
cash and cash equivalents at March 31, 2020.
About Guardion Health Sciences,
Inc.
Guardion® is a specialty health sciences company
that (i) develops medical foods and medical devices in the ocular
health marketplace and (ii) is developing nutraceuticals that the
Company believes will provide medicinal and health benefits to
consumers. Information and risk factors with respect to Guardion
and its business, including its ability to successfully develop and
commercialize its proprietary products and technologies, may be
obtained in the Company’s filings with the SEC at www.sec.gov.
About VectorVision®
VectorVision® specializes in the standardization
of contrast sensitivity, glare sensitivity, low contrast acuity,
and ETDRS acuity vision testing. Its patented standardization
system provides the practitioner or researcher the ability to
delineate very small changes in visual capability, either as
compared to the population or from visit to visit. VectorVision’s®
patented technology is considered the standard of care for clinical
trials. VectorVision® is a wholly owned subsidiary of Guardion.
Guardion has completed development of the
proprietary VectorVision® CSV-2000 standardized contrast
sensitivity test and recently introduced the commercial product to
the marketplace. The CSV-2000 is the only computer-generated vision
testing instrument available that will provide the optical
marketplace with the Company’s proprietary, industry-standard
contrast sensitivity test, along with a full suite of standard
vision testing protocols. The proprietary standardization
methodology incorporated into the CSV-2000 includes a patented
technology known as AcQviz that automatically and constantly
measures and adjusts screen luminance to a fixed standard light
level for vision testing.
Forward-Looking Statement
Disclaimer
With the exception of the historical information
contained in this news release, the matters described herein may
contain forward-looking statements within the meaning of Section
27A of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. Statements
preceded by, followed by or that otherwise include the words
“believes,” “expects,” “anticipates,” “intends,” “projects,”
“estimates,” “plans” and similar expressions or future or
conditional verbs such as “will,” “should,” “would,” “may” and
“could” are generally forward-looking in nature and not historical
facts, although not all forward-looking statements include the
foregoing. These statements involve unknown risks and uncertainties
that may individually or materially impact the matters discussed
herein for a variety of reasons that are outside the control of the
Company, including, but not limited to, the Company’s ability to
raise sufficient financing to implement its business plan, the
impact of the coronavirus (COVID-19) on the Company’s business,
operations and the economy in general, and the Company’s ability to
successfully develop and commercialize its proprietary products and
technologies. Readers are cautioned not to place undue reliance on
these forward- looking statements, as actual results could differ
materially from those described in the forward-looking statements
contained herein. Readers are urged to read the risk factors set
forth in the Company’s filings with the SEC, which are available at
the SEC’s website (www.sec.gov). The Company disclaims any
intention or obligation to update or revise any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Investor Relations Contact:
Jenene ThomasJTC Team, LLCTelephone: (833)
475-8247E-Mail: GHSI@jtcir.com
Porter, LeVay & Rose,
Inc.
Michael PorterTelephone: (212) 564-4700E-mail:
mike@plrinvest.com
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