Healthier Choices Management Corp. SEC 10-Q Report

Healthier Choices Management Corp. (HCMC), a company focused on monetizing its intellectual property through its subsidiary HCMC Intellectual Property Holdings, LLC, has released its Form 10-Q report for the second quarter of 2025. The report provides a detailed overview of the company's financial performance and operational highlights, reflecting its strategic focus on intellectual property and vaping technology. Financial Highlights Sales, Net: $1,000 for the three months ended June 30, 2025, compared to $174 for the same period in 2024, reflecting an increase of $826.Sales, Net: $2,780 for the six months ended June 30, 2025, compared to $293 for the same period in 2024, reflecting an increase of $2,487.Gross Profit: $(22,834) for the three months ended June 30, 2025, compared to $132 for the same period in 2024, indicating a decrease of $22,966.Gross Profit: $(22,532) for the six months ended June 30, 2025, compared to $119 for the same period in 2024, indicating a decrease of $22,651.Loss from Operations: $(2,003,610) for the three months ended June 30, 2025, compared to $(1,966,380) for the same period in 2024, reflecting a decrease of $37,230.Loss from Operations: $(4,173,022) for the six months ended June 30, 2025, compared to $(4,169,287) for the same period in 2024, reflecting a decrease of $3,735.Net Loss: $(1,991,797) for the three months ended June 30, 2025, compared to $(1,910,971) for the same period in 2024, reflecting a decrease of $80,826.Net Loss: $(4,175,473) for the six months ended June 30, 2025, compared to $(4,070,655) for the same period in 2024, reflecting a decrease of $104,818. Business Highlights Company Overview: Healthier Choices Management Corp. (HCMC) is focused on monetizing its intellectual property through its subsidiary, HCMC Intellectual Property Holdings, LLC. The company aims to expand its patent suite, including the Q-Cup™ technology, through development, licensing, and enforcement actions.Product Focus: The company markets its patented Q-Cup™ technology, which is designed for use with cannabis or CBD concentrates. This technology offers a unique vaping solution by heating the concentrate externally, providing efficiency and convenience for users.Operational Strategy: HCMC has shifted its retail sales focus from brick-and-mortar stores to wholesale and online channels, reflecting a strategic pivot in its business model.Future Outlook: The company plans to continue its focus on reducing costs and securing additional capital to support its operations. HCMC believes its current cash reserves and a $5 million line of credit will meet its financial obligations for at least the next twelve months.Legal Proceedings: HCMC is involved in ongoing patent infringement litigation, including actions against Philip Morris and R.J. Reynolds Vapor Company, which could impact its operational focus and resources.Spin-Off Impact: The spin-off of the Grocery business into HCWC has resulted in a focus on intellectual property and vaping technology, with transitional services being provided between HCMC and HCWC to ensure a smooth separation.SEC Filing: Healthier Choices Management Corp. [ HCMC ] - 10-Q - Aug. 13, 2025