Nutra Pharma's Losses Persist Amidst Plummeting Sales
Sentiment: bearish
Topics: Biotechnology, Pain Relief, Going Concern, Net Loss, Declining Sales, Accumulated Deficit, Liquidity Risk
TL;DR
**Nutra Pharma is a zombie company, avoid at all costs; its 'going concern' warning is a flashing red light for imminent failure.**
AI Summary
NUTRA PHARMA CORP. reported a net loss of $794,073 for the six months ended June 30, 2024, an improvement from the $871,806 net loss in the prior-year period. Total net sales decreased to $89,442 for the six months ended June 30, 2024, down from $106,920 in the same period of 2023, representing a 16.4% decline. Net sales to a related party also fell significantly, from $212,991 in 2023 to $71,708 in 2024, a 66.4% decrease. The company's gross profit declined by 52.0% to $90,042 from $187,734 year-over-year. Operating expenses decreased to $604,844 from $768,724, primarily due to the absence of a $105,465 bad debt expense related to a related party that was present in 2023. The accumulated deficit grew to $75,739,547 at June 30, 2024, from $74,945,474 at December 31, 2023. The company continues to face substantial doubt about its ability to continue as a going concern, with a working capital deficit of $14,640,377 and a stockholders' deficit of $14,558,881 as of June 30, 2024.
Why It Matters
This filing reveals a company in deep financial distress, with declining sales and a significant accumulated deficit, raising serious questions about its long-term viability. For investors, the 'going concern' warning and substantial working capital deficit signal extreme risk, suggesting potential for further dilution or even bankruptcy. Employees face job insecurity given the company's inability to generate sufficient revenue. Customers might experience disruptions in product availability if the company's operational challenges persist. The competitive landscape in the biotechnology and pain relief markets is intense, and Nutra Pharma's struggles indicate an inability to compete effectively or secure necessary funding.
Risk Assessment
Risk Level: high — The company explicitly states 'substantial doubt regarding our ability to continue as a going concern' due to recurring significant losses, an accumulated deficit of $75,739,547, a working capital deficit of $14,640,377, and a stockholders' deficit of $14,558,881 at June 30, 2024. Furthermore, its common stock is on the OTC Market Group's Expert Market, severely limiting its ability to raise capital.
Analyst Insight
Investors should immediately divest any holdings in NUTRA PHARMA CORP. given the severe 'going concern' warning, substantial accumulated deficit, and declining sales. The company's inability to raise capital effectively on the Expert Market makes a turnaround highly improbable. Focus on companies with strong financial health and clear growth trajectories.
Financial Highlights
- debt To Equity
- N/A
- revenue
- $89,442
- operating Margin
- N/A
- total Assets
- N/A
- total Debt
- N/A
- net Income
- -$794,073
- eps
- N/A
- gross Margin
- 100.7%
- cash Position
- N/A
- revenue Growth
- -16.4%
Revenue Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Total Net Sales | $89,442 | -16.4% |
| Net Sales to Related Party | $71,708 | -66.4% |
Key Numbers
- $794,073 — Net Loss (for the six months ended June 30, 2024, an improvement from $871,806 in 2023)
- $89,442 — Total Net Sales (for the six months ended June 30, 2024, a 16.4% decrease from $106,920 in 2023)
- $71,708 — Net Sales to Related Party (for the six months ended June 30, 2024, a 66.4% decrease from $212,991 in 2023)
- $90,042 — Gross Profit (for the six months ended June 30, 2024, a 52.0% decrease from $187,734 in 2023)
- $75,739,547 — Accumulated Deficit (at June 30, 2024, indicating significant historical losses)
- $14,640,377 — Working Capital Deficit (at June 30, 2024, highlighting liquidity issues)
- $14,558,881 — Stockholders' Deficit (at June 30, 2024, indicating negative equity)
- 7,099,727,214 — Common Stock Shares Outstanding (as of December 23, 2025, showing a large share count)
Key Players & Entities
- NUTRA PHARMA CORP. (company) — registrant
- ReceptoPharm, Inc. (company) — wholly-owned subsidiary
- Designer Diagnostics Inc. (company) — wholly-owned subsidiary, inactive since June 2011
- $794,073 (dollar_amount) — net loss for six months ended June 30, 2024
- $871,806 (dollar_amount) — net loss for six months ended June 30, 2023
- $89,442 (dollar_amount) — total net sales for six months ended June 30, 2024
- $106,920 (dollar_amount) — total net sales for six months ended June 30, 2023
- $75,739,547 (dollar_amount) — accumulated deficit at June 30, 2024
- $14,640,377 (dollar_amount) — working capital deficit at June 30, 2024
- $14,558,881 (dollar_amount) — stockholders' deficit at June 30, 2024
FAQ
What is Nutra Pharma Corp.'s net loss for the first six months of 2024?
Nutra Pharma Corp. reported a net loss of $794,073 for the six months ended June 30, 2024, which is an improvement compared to the $871,806 net loss for the same period in 2023.
How have Nutra Pharma's total net sales changed year-over-year?
Total net sales for Nutra Pharma decreased by 16.4%, from $106,920 for the six months ended June 30, 2023, to $89,442 for the six months ended June 30, 2024.
What is Nutra Pharma's current financial position regarding its ability to continue as a going concern?
Nutra Pharma has an accumulated deficit of $75,739,547, a working capital deficit of $14,640,377, and a stockholders' deficit of $14,558,881 at June 30, 2024, leading management to conclude there is 'substantial doubt' about its ability to continue as a going concern.
What is the status of Nutra Pharma's common stock on the market?
Nutra Pharma's common stock is currently traded on the OTC Market Group's Expert Market, which means it is not eligible for proprietary broker-deal quotes and limits the company's ability to raise capital.
What products does Nutra Pharma Corp. offer?
Nutra Pharma, through its subsidiary ReceptoPharm, offers consumer products such as Cobroxin, Nyloxin, Pet Pain-Away, Equine Pain-Away, and Luxury Feet, all designed as over-the-counter pain relievers. They also manufacture Cell Defender, a zeolite detoxifier, for a third-party distributor.
How much did Nutra Pharma's gross profit decline in the first half of 2024?
Nutra Pharma's gross profit declined by 52.0%, from $187,734 for the six months ended June 30, 2023, to $90,042 for the same period in 2024.
What was the change in Nutra Pharma's net sales to related parties?
Net sales to a related party decreased significantly by 66.4%, from $212,991 for the six months ended June 30, 2023, to $71,708 for the six months ended June 30, 2024.
What is Nutra Pharma's strategy to address its liquidity issues?
Nutra Pharma plans to attempt to secure adequate funding through notes payable until sales of its pain products are sufficient to fund operations, as its current sales are not adequate to sustain operations for the next twelve months.
What was the total amount of common stock issued and outstanding for Nutra Pharma as of December 23, 2025?
As of December 23, 2025, there were 7,099,727,214 shares of common stock issued and outstanding for Nutra Pharma Corp.
Has Nutra Pharma paid any income taxes in the first half of 2024?
No, Nutra Pharma Corp. reported $0 in cash paid for income taxes for the six months ended June 30, 2024, and also for the same period in 2023.
Risk Factors
- Going Concern Uncertainty [high — financial]: The company faces substantial doubt about its ability to continue as a going concern due to a significant working capital deficit of $14,640,377 and a stockholders' deficit of $14,558,881 as of June 30, 2024.
- Declining Revenue and Gross Profit [high — financial]: Total net sales fell 16.4% to $89,442 for the six months ended June 30, 2024, while gross profit declined 52.0% to $90,042, indicating weakening sales performance and profitability.
- Dependence on Related Party Sales [medium — financial]: A substantial decrease in net sales to a related party (down 66.4% to $71,708) highlights a potential over-reliance on this single revenue stream and its volatility.
- Increasing Accumulated Deficit [high — operational]: The accumulated deficit grew to $75,739,547 at June 30, 2024, reflecting persistent historical losses and a lack of sustained profitability.
- Operating Expense Management [medium — operational]: While operating expenses decreased to $604,844 from $768,724, this was largely due to the absence of a $105,465 bad debt expense from the prior year, not necessarily improved operational efficiency.
Industry Context
Nutra Pharma Corp operates in the pharmaceutical and nutraceutical sector, a highly competitive industry characterized by significant research and development costs, stringent regulatory oversight (e.g., FDA), and long product development cycles. The market demands innovation and efficacy, with companies often facing challenges in gaining market share and achieving profitability amidst established players and evolving consumer health trends.
Regulatory Implications
As a pharmaceutical company, Nutra Pharma Corp is subject to extensive regulatory scrutiny from bodies like the FDA. Compliance with manufacturing standards (cGMP), clinical trial regulations, and marketing practices is critical. Failure to adhere to these regulations can result in product recalls, fines, and significant reputational damage, impacting the company's ability to operate and generate revenue.
What Investors Should Do
- Monitor Related Party Transactions
- Assess Cash Burn Rate and Liquidity
- Evaluate Path to Profitability
Key Dates
- 2024-06-30: Six Months Ended — Reporting period for the 10-Q, showing a net loss of $794,073 and total net sales of $89,442.
- 2023-06-30: Six Months Ended — Prior year comparative period, with a net loss of $871,806 and total net sales of $106,920.
- 2024-06-30: Balance Sheet Date — Company reported a working capital deficit of $14,640,377 and a stockholders' deficit of $14,558,881.
- 2023-12-31: Balance Sheet Date — Previous year-end balance sheet, with an accumulated deficit of $74,945,474.
Glossary
- Accumulated Deficit
- The cumulative net losses of a company since its inception that have not been offset by profits or additional paid-in capital. (Indicates the company has historically incurred more losses than profits, reaching $75,739,547 as of June 30, 2024.)
- Working Capital Deficit
- Occurs when a company's current liabilities exceed its current assets, indicating potential short-term liquidity problems. (The company has a significant working capital deficit of $14,640,377 as of June 30, 2024, raising concerns about its ability to meet short-term obligations.)
- Stockholders' Deficit
- Represents negative shareholders' equity, meaning the company's liabilities exceed its assets. (A stockholders' deficit of $14,558,881 as of June 30, 2024, signifies that the company is insolvent on a book value basis.)
- Going Concern
- An assumption that a business will continue to operate for the foreseeable future without the threat of liquidation. (The company's financial condition raises substantial doubt about its ability to continue as a going concern.)
- Gross Profit
- Revenue minus the cost of goods sold. (Gross profit declined 52.0% to $90,042 for the six months ended June 30, 2024, indicating a significant drop in profitability from sales.)
Year-Over-Year Comparison
Compared to the prior-year period, Nutra Pharma Corp. reported an improved net loss of $794,073 for the six months ended June 30, 2024, down from $871,806. However, total net sales saw a significant decline of 16.4% to $89,442, driven partly by a sharp 66.4% drop in related party sales. Gross profit also fell substantially by 52.0%, indicating deteriorating sales margins. While operating expenses decreased, this was primarily due to the absence of a prior-year bad debt expense, not necessarily improved operational efficiency.
Filing Stats: 4,473 words · 18 min read · ~15 pages · Grade level 16.8 · Accepted 2025-12-23 13:15:54
Filing Documents
- form10-q.htm (10-Q) — 1431KB
- ex31-1.htm (EX-31.1) — 19KB
- ex32-1.htm (EX-32.1) — 7KB
- 0001493152-25-028946.txt ( ) — 9668KB
- nphc-20240630.xsd (EX-101.SCH) — 67KB
- nphc-20240630_cal.xml (EX-101.CAL) — 68KB
- nphc-20240630_def.xml (EX-101.DEF) — 299KB
- nphc-20240630_lab.xml (EX-101.LAB) — 496KB
- nphc-20240630_pre.xml (EX-101.PRE) — 413KB
- form10-q_htm.xml (XML) — 1539KB
FINANCIAL INFORMATION
PART I. FINANCIAL INFORMATION F-1
Financial Statements
Item 1. Financial Statements F-1 Condensed Consolidated Balance Sheets as of June 30, 2024 (Unaudited) and December 31, 2023 F-1 Condensed Consolidated Statements of Operations for the Three and Six months ended June 30, 2024 and 2023 (Unaudited) F-2 Condensed Consolidated Statements of Changes in Stockholders' Deficit for the Three months ended June 30, 2024 and 2023 (Unaudited) F-3 Condensed Consolidated Statements of Changes in Stockholders' Deficit for the Six months ended June 30, 2024 and 2023 (Unaudited) F-4 Condensed Consolidated Statements of Cash Flows for the Six months ended June 30, 2024 and 2023 (Unaudited) F-5 Notes to Condensed Consolidated Financial Statements (Unaudited) F-6
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 4
Quantitative and Qualitative Disclosures about Market Risk
Item 3. Quantitative and Qualitative Disclosures about Market Risk 10
Controls and Procedures
Item 4. Controls and Procedures 10
OTHER INFORMATION
PART II. OTHER INFORMATION 11
Legal Proceedings
Item 1. Legal Proceedings 11
Unregistered Sales of Equity Securities and Use of Proceeds
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 12
Defaults Upon Senior Securities
Item 3. Defaults Upon Senior Securities 12
Mine Safety Disclosure
Item 4. Mine Safety Disclosure 12
Other Information
Item 5. Other Information 12
Exhibits
Item 6. Exhibits 12 2 Nutra Pharma Corp ("Nutra Pharma") and its wholly owned subsidiary, ReceptoPharm, Inc. ("ReceptoPharm"), are referred to herein as "we", "our" or "us" (ReceptoPharm is also individually referred to herein). Forward Looking Statements This Quarterly Report on Form 10–Q for the period ending June 30, 2024, contains forward–looking statements that involve risks and uncertainties, as well as assumptions that if they never materialize or prove incorrect, could cause our results to differ materially from those expressed or implied by such forward–looking statements. The words or phrases "would be," "will allow, "intends to," "will likely result," "are expected to," "will continue," "is anticipated," "estimate," "project," or similar expressions are intended to identify "forward–looking statements." We are subject to risks detailed in Item 1(a). All statements other than statements of historical fact are statements that could be deemed forward–looking statements, including: (a) any projections of revenue, gross margin, expenses, earnings or losses from operations, synergies or other financial items; and (b) any statements of the plans, strategies and objectives of management for future operations; and (c) any statement concerning developments, plans, or performance. Unless otherwise required by applicable law, we do not undertake and we specifically disclaim any obligation to update any forward–looking statements to reflect occurrences, developments, unanticipated events or circumstances after the date of such statement. 3 PART I. FINANCIAL INFORMATION Item 1. Financial Statements NUTRA PHARMA CORP. Condensed Consolidated Balance Sheets June 30, December 31, 2024 2023 (Unaudited) ASSETS Current assets: Cash $ - $ - Accounts receivable 22,593 22,433 Inventory, current portion 23,760 19,544 Other receivable 5,000 5,000 Convertible notes receivable, net of discount 44,050 6,600 Receivable from sale of