Healthier Choices Management Corp. Files 10-Q for Q1 2024

TL;DR

<b>Healthier Choices Management Corp. has filed its Q1 2024 10-Q report, detailing financial performance and corporate history.</b>

AI Summary

Healthier Choices Management Corp. (HCMC) filed a Quarterly Report (10-Q) with the SEC on May 9, 2024. Healthier Choices Management Corp. filed a 10-Q report for the period ending March 31, 2024. The company previously operated under the names Vapor Corp. and Miller Diversified Corp. The filing details financial data for the periods ending March 31, 2024, December 31, 2023, and March 31, 2023. Key segments include Vapor and Grocery, with specific data points for Mother Earth's Storehouse and Green S Natural Foods. The report includes information on preferred stock, common stock, additional paid-in capital, and retained earnings.

Why It Matters

For investors and stakeholders tracking Healthier Choices Management Corp., this filing contains several important signals. This filing provides investors with the latest quarterly financial snapshot of Healthier Choices Management Corp., crucial for assessing its current operational health and investment potential. Understanding the company's historical name changes and segment performance offers context for its business evolution and strategic direction.

Risk Assessment

Risk Level: medium — Healthier Choices Management Corp. shows moderate risk based on this filing. The company has a history of name changes and operates in potentially volatile sectors (tobacco products, grocery), indicating a need for careful financial scrutiny.

Analyst Insight

Investors should review the detailed financial statements and segment performance in the 10-Q to understand the company's current financial standing and future prospects.

Key Numbers

• 2024-03-31 — Period End Date (Quarterly report period)
• 2024-05-09 — Filing Date (Date the report was filed)
• 2023-12-31 — Previous Year End Date (Reference for comparative balance sheet data)
• 2023-03-31 — Prior Year Q1 End Date (Reference for comparative income statement data)

Key Players & Entities

• Healthier Choices Management Corp. (company) — Filer
• Vapor Corp. (company) — Former company name
• Miller Diversified Corp (company) — Former company name
• 2024-03-31 (date) — Period of report
• 2024-05-09 (date) — Filing date
• 305-600-5004 (phone) — Business phone number

FAQ

Risk Factors

• Regulatory Compliance [high — regulatory]: The company operates in the tobacco products industry, which is subject to extensive and evolving regulations.
• Market Competition [medium — market]: The company faces competition in both its vapor and grocery segments.
• Liquidity and Going Concern [high — financial]: Filings often contain disclosures regarding the company's ability to continue as a going concern, which is a significant financial risk.

Key Dates

• 2024-03-31: Quarter End — End of the reporting period for the 10-Q filing.
• 2024-05-09: Filing Date — Date the 10-Q was officially submitted to the SEC.

Glossary

10-Q

A quarterly report required by the U.S. Securities and Exchange Commission (SEC). (Provides investors with an update on the company's financial performance and condition between annual reports.)

SIC Code

Standard Industrial Classification code used to classify industries. (Helps categorize the company's primary business activities, in this case, Tobacco Products.)

Key Financial Figures

• $0.0001 — ch registered Common Stock, par value $0.0001 per share HCMC OTC Pink Marketplace

Filing Documents

• form10-q.htm (10-Q) — 719KB
• ex31-1.htm (EX-31.1) — 17KB
• ex31-2.htm (EX-31.2) — 18KB
• ex32-1.htm (EX-32.1) — 7KB
• ex32-2.htm (EX-32.2) — 7KB
• 0001493152-24-018493.txt (&nbsp;) — 4142KB
• hcmc-20240331.xsd (EX-101.SCH) — 38KB
• hcmc-20240331_cal.xml (EX-101.CAL) — 55KB
• hcmc-20240331_def.xml (EX-101.DEF) — 141KB
• hcmc-20240331_lab.xml (EX-101.LAB) — 290KB
• hcmc-20240331_pre.xml (EX-101.PRE) — 231KB
• form10-q_htm.xml (XML) — 491KB

FINANCIAL INFORMATION

PART I FINANCIAL INFORMATION 3

Financial Statements

ITEM 1. Financial Statements 3 Condensed Consolidated Balance Sheets as of March 31, 2024 (Unaudited) and December 31, 2023 3 Condensed Consolidated Statements of Operations for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 4 Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 5 Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2024 and 2023 (Unaudited) 6 Notes to Condensed Consolidated Financial Statements (Unaudited) 7

Management's Discussion and Analysis of Financial Condition and Results of Operations

ITEM 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 18

Quantitative and Qualitative Disclosures about Market Risk

ITEM 3. Quantitative and Qualitative Disclosures about Market Risk 22

Controls and Procedures

ITEM 4. Controls and Procedures 22

OTHER INFORMATION

PART II OTHER INFORMATION 24

Legal Proceedings

ITEM 1. Legal Proceedings 24

Risk Factors

ITEM 1A. Risk Factors 24

Unregistered Sales of Equity Securities and Use of Proceeds

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds 24

Defaults Upon Senior Securities

ITEM 3. Defaults Upon Senior Securities 24

Mine Safety Disclosures

ITEM 4. Mine Safety Disclosures 24

Other Information

ITEM 5. Other Information 24

Exhibits

ITEM 6. Exhibits 24

Signatures

Signatures 26 Exhibit 31.1 Exhibit 31.2 Exhibit 32.1 Exhibit 32.2 2 PART I - FINANCIAL INFORMATION Item 1. Financial Statements HEALTHIER CHOICES MANAGEMENT CORP. CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2024 December 31, 2023 (Unaudited) ASSETS CURRENT ASSETS Cash and cash equivalent $ 3,904,801 $ 5,081,086 Accounts receivable, net 166,273 128,171 Inventories 4,177,069 4,228,889 Prepaid expenses and vendor deposits 1,990,323 1,668,324 Assets held for sale 543,854 - Other current assets 86,257 65,556 Restricted cash 553,232 553,232 TOTAL CURRENT ASSETS 11,421,809 11,725,258 Property, plant, and equipment, net of accumulated depreciation 2,173,600 2,735,252 Intangible assets, net of accumulated amortization 4,136,338 4,376,682 Right of use asset – operating lease, net 10,767,755 11,511,002 Other assets 632,024 621,385 TOTAL ASSETS $ 29,131,526 $ 30,969,579 LIABILITIES, CONVERTIBLE PREFERRED STOCK AND STOCKHOLDERS' EQUITY CURRENT LIABILITIES Accounts payable and accrued expenses $ 7,108,075 $ 8,024,664 Contract liabilities 179,916 207,513 Line of credit 453,232 453,232 Current portion of loan payment 2,432,135 702,701 Operating lease liability, current 2,774,469 2,842,829 TOTAL CURRENT LIABILITIES 12,947,827 12,230,939 Loan payable, net of current portion 2,221,462 2,403,807 Operating lease liability, net of current 7,827,417 8,465,617 TOTAL LIABILITIES 22,996,706 23,100,363 COMMITMENTS AND CONTINGENCIES (SEE NOTE 13) - - CONVERTIBLE PREFERRED STOCK Series E redeemable convertible preferred stock, $ 1,000 par value per share, 14,722 shares authorized, 1,111 shares issued and outstanding as of March 31, 2024 and December 31, 2023, respectively: aggregate liquidation preference of $ 1.1 million as of March 31, 2024 and December 31, 2023, respectively 1,111,100 1,111,100 STOCKHOLDERS' EQUITY Common Stock, $ 0.0001 par value per shar

View Full Filing

View this 10-Q filing on SEC EDGAR