Strong Growth Outlook Enhanced by Acquisition of Sommer Ray's Imaraïs Beauty, Bringing a New Global Brand Presence Along with Major National and International B2B Wins

1H-2026 Net Revenues Reached Record $3.7 million, up 94%, with Adj. EBITDA at $254,000

LAS VEGAS, NV / ACCESS Newswire / August 14, 2026 / Healthy Extracts Inc. (OTCQB:HYEX), a leader in nutraceutical formulations and precision dose gummy manufacturing, reported another period of record revenues and adj. EBTIDA for the second quarter and first half ended June 30, 2026. All financial comparisons are to the same year-ago period unless otherwise noted.

Q2 2026 Financial Highlights

• Net revenue increased 113% to record $2.1 million, with strong topline performance largely due to the synergistic merger with Gummy USA™ in October 2025 and acquisition of Imaraïs Beauty in May of this year. Both added new product lines and B2B customers and expanded the company's distribution channels.

• Gross profit increased 145% to $1.5 million, with gross margins increasing from 61.2% to 70.3%.

• Net loss totaled $129,000 or ($0.01) per basic and diluted share, compared to net income of $67,000 or $0.02 per basic and diluted share in the same year-ago quarter.

• EBITDA increased 75% to $169,000, with adj. EBITDA totaling $290,000 or $0.02 per basic and diluted share (see definitions of these non-GAAP terms and their reconciliation to GAAP in the section, Use of Non-GAAP Measures, below).

Q2 2026 Operational Highlights

• In April, Healthy Extracts' wholly owned subsidiary, Gummy USA, entered a U.S. manufacturing partnership with Imaraïs Beauty, the popular plant-based ingestible beauty and wellness brand founded by media personality, Sommer Ray, and award-winning supplement industry veteran, Aaron Hefter. Imaraïs has broad distribution across major U.S. retail channels, including Target, Ulta Beauty and Sprouts, as well as numerous international outlets.

• Imarais Beauty partnership launched with an initial large order totaling nearly 4 million gummies across five existing SKUs. The order has begun shipping to more than 4,000 store locations nationwide that include highly visible isle end-cap placements.

• In May, the new partnership with Imarais Beauty transformed into its acquisition by Healthy Extracts, resulting in Imarais Beauty becoming a new wholly owned operating subsidiary. Since its founding in 2020, Imaraïs Beauty has attracted worldwide acclaim and countless loyal customers and social media influencers, with the brand sold worldwide through thousands of retailer locations and online. Imaraïs Beauty's phenomenal success has been featured in major business publications, including WWD, Forbes, Beauty Independent, and Entrepreneur.

• Healthy Extracts' transformative strategic merger with Gummy USA last fall has continued to address the large unmet need in the nutraceutical and pharmaceutical industry for precision-dosed gummy manufacturing technology, with this opening the door to new specialized B2B product development.

Management Commentary

"Our second quarter of 2026 represented another great quarter of record-setting revenues and market expansion," stated Healthy Extracts CEO, Don Swanson. "As our ninth consecutive quarter of year-over-year revenue growth, our momentum has continued to build.

"Our strong topline performance reflects the continued evolution of our company into an industry leader in nutraceutical innovation. The integration of Gummy USA and Imarais Beauty has accelerated our growth and expanded our product lines and addressable markets. They have also brought to us new major retailer customers from around the world. This has resulted in a significant increase in B2B, direct-to-consumer and retail sales.

"We have continued to focus on our long-term strategic growth strategies, with this including the achievement of superior leadership in formulation and manufacturing technologies that target the high-growth, high-margin Nutra Pharma and Health & Beauty sectors.

"We are enjoying vast new opportunities where we can leverage our strengths in advanced formulations, manufacturing, and proprietary oral delivery technologies. We expect these efforts to benefit from the strong industry growth in our health and beauty category that is expected to top $730 billion this year. We also see many great opportunities in the broader health and wellness markets.

"Our new manufacturing partnership with Imaraïs Beauty quickly evolved into their acquisition due to the many strong synergies between our two companies. Their advanced formulations are unlike anything I've seen in the gummy market today, while our precision dosing technology aligns perfectly with their commitment to premium quality, innovation, and rapid global market expansion.

"We expect Imaraïs' market reach and retail momentum to accelerate our in-house gummy manufacturing output for the remainder of the year. To be sure, this is not only for the beauty and wellness category, but also as we continue to deliver the next generation of functional and OTC gummy delivery systems across multiple categories within our large consumer health market.

"We see our strong results for the second quarter as just the beginning of a highly scalable, transformational growth phase for Healthy Extracts. By leveraging our advanced U.S. manufacturing capabilities, we believe we have a tremendous opportunity to expand our brand presence worldwide.

"Given our many commercial initiatives, which includes new B2B customer engagement and product development, we continue to believe we have the potential to achieve annualized net revenue of more than $20 million by year end or up 3x over last year. While this aspirational goal is aggressive, we believe it is supported by our current sales pipeline and existing manufacturing and distribution capacity.

"We see the key to achieving our goals will be our unique precision dose manufacturing capabilities and exclusive licensed delivery systems. We believe these two factors provide exceptional differentiation within our Nutraceutical, Nutra Pharma and Functional Wellness markets, and they have set the stage for an exceptionally strong period ahead.

"Gummy USA and Imaraïs Beauty have joined us during a period of increased investor interest and consolidation within the gummy and wellness sector. Many high-profile industry deals, such as the recent $1.2 billion acquisition of Grüns Gummies by Unilever, highlight the market demand for scalable wellness brands, and especially those that possess strong consumer engagement, differentiated product positioning, and growing retail distribution.

"As we look to the second half of the year and beyond, our mission is clear: build one of the most trusted, innovative, and respected health, wellness and beauty companies in the world, while delivering sustainable long-term value to our stakeholders. We welcome you to join us on this exciting journey."

Q1 2026 Financial Summary

Net revenue increased 113% to record $2.1 million from $969,000 in the second quarter of 2025. The increase was largely due to the synergistic merger with Gummy USA™ in October 2025 and the acquisition of Imaraïs Beauty in May of this year which added new product lines and B2B customers and expanded the company's distribution channels. The company expects net revenue growth to increase as its direct consumer sales and marketing efforts continue to perform.

Gross profit increased 145% to $1.5 million or 70.3% of net revenue, compared to $593,000 or 61.2% of net revenue in the same year-ago quarter. The increase in gross profit was due to greater sales and higher margins enabled by the merger with Gummy USA and acquisition of Imaraïs Beauty.

Operating expenses increased 115% to $1.5 million compared to $699,000 in the same year-ago quarter. The increase was due in part to additional salaries and wages associated with the addition of Gummy USA and Imaraïs Beauty as well as an increase in stock-based compensation expense.

Net loss totaled $129,000 or ($0.01) per basic and diluted share, compared to net income of $67,000 or $0.02 per basic and diluted share in the same year-ago quarter. The increase in net loss was largely due to increased interest expense, change in the fair value of derivatives, and increased G&A expense related to the addition of Gummy USA and Imaraïs Beauty.

EBITDA increased 75% to $169,000 from $97,000 in the same year-ago quarter.

Adjusted EBITDA, which adjusts additionally for non-cash stock-based expense and change in fair value of derivatives, totaled $290,000 or $0.02 per basic and diluted share, compared to an adjusted EBITDA loss of $25,000 or ($0.01) per basic and diluted share in the same year-ago quarter.

Cash totaled $190,000 at June 30, 2026, up from $147,000 at December 31, 2025, with the increase primarily due to cash generated by operations and financings.

About Healthy Extracts "Live Life Young Again"

Healthy Extracts Inc. (OTCQB:HYEX) is a leader in nutraceutical innovation, precision-dose oral delivery systems, and functional wellness consumer brands. The company develops, manufactures, and markets science-based products focused on beauty, wellness, brain, heart, gut, and lifestyle health through proprietary formulations, advanced delivery technologies, and scalable national retail distribution.

Through its acquisition of Imaraïs Beauty, the celebrity-founded ingestible beauty and wellness brand co-founded by Sommer Ray and entrepreneur Aaron Hefter, Healthy Extracts has significantly expanded its position within the rapidly growing global beauty and personal care market. Imaraïs Beauty combines advanced functional beauty formulations with strong consumer engagement, influencer-driven branding, and expanding global retail distribution across major retail, including Target, Ulta Beauty, Nordstrom, and Sprouts, and international markets.

Healthy Extracts' wholly owned subsidiary, Gummy USA™, is a leading developer and manufacturer of precision-dosed nutraceutical and pharmaceutical-grade gummies. Proprietary, patent-pending SureDose™ technology is designed to deliver superior dosing accuracy, safety, efficacy, and consumer compliance for both company-owned and partner brands.

The company's portfolio also includes BergametNA™ and Ultimate Brain Nutrients™ (UBN™) which offer science-backed supplements supporting cardiovascular and cognitive health. Healthy Extracts additionally maintains exclusive agreements for innovative oral delivery technologies, including Gelteq gel delivery systems and the Gut Health Straw platform, which are designed to improve bioavailability and consumer convenience.

To learn more, visit Healthy Extracts Inc., Imaraïs Beauty, BergametNA, Ultimate Brain Nutrients, or Gummy USA.

Use of Non-GAAP Measures

This press release contains financial measures that are not recognized measures under accounting principles generally accepted in the United States of America ("GAAP"), which may include EBITDA, adjusted EBITDA and non-GAAP net income as defined below for the purpose of this press release.

EBITDA is defined as net income before income tax expense, interest expense (net of interest income), depreciation and amortization. Adjusted EBITDA is defined as EBITDA excluding the gain or loss related to stock-based option/warrant expense, stock issued for services, change in fair value of derivative, offering costs, and M&A-related expense. Non-GAAP net income excludes interest expense (net of interest income), depreciation, amortization and stock-based expenses (stock-based option/warrant expense and stock issued for services), and M&A-related expense.

Healthy Extracts' management believes that EBITDA, adjusted EBITDA, and non-GAAP net income are useful supplemental measures of the company's operating performance and can provide investors meaningful measures of overall corporate performance. EBITDA is also presented because management believes that it is frequently used by investment analysts, investors, and other interested parties as a measure of financial performance. Adjusted EBITDA and non-GAAP net income are also presented because management believes that it provides investors additional measures of the company's core business. However, such non-GAAP measures do not have a standardized meaning prescribed by GAAP, and investors are cautioned that such non-GAAP measures should not be construed as an alternative to net income or loss or other income statement data (which are determined in accordance with GAAP) as an indicator of our performance or as a measure of liquidity and cash flows. Management's method of calculating EBITDA, adjusted EBITDA, and non-GAAP net income may differ materially from the method used by other companies and accordingly may not be comparable to similarly titled measures used by other companies.

A reconciliation of EBITDA and adjusted EBITDA to net income, the most comparable GAAP measure, is included in the table below. The calculation of non-GAAP net income is derived from the amounts presented in this table. For the weighted average number of common shares used for the determination of adjusted EBITDA and non-GAAP income basic and diluted earnings per common share, see the table, Consolidated Statement of Operations, further below.

Safe Harbor Notice and Important Cautions Regarding Forward-Looking Statements

The preliminary unaudited results presented in this press release are estimates only and are subject to revision until the company officially reports its full second quarter results and files it Form 10-Q with the U.S. Securities and Exchange Commission (SEC).

All statements other than statements of historical facts included in this press release are "forward-looking statements" (as defined in the Private Securities Litigation Reform Act of 1995). Such forward-looking statements include our expectations and those statements that use forward-looking words such as "projected," "expect," "possibility" and "anticipate." The achievement or success of the matters covered by such forward-looking statements involve significant risks, uncertainties and assumptions. Actual results could differ materially from current projections or implied results. Investors should read the risk factors set forth in the Company's Annual Report on Form 10-K filed with the SEC on April 8, 2026, and future periodic reports filed with the U.S. Securities and Exchange Commission (SEC). All of the Company's forward-looking statements are expressly qualified by all such risk factors and other cautionary statements. The Company cautions that statements and assumptions made in this news release constitute forward-looking statements and make no guarantee of future performance. Forward-looking statements are based on estimates and opinions of management at the time statements are made. The information set forth herein speaks only to the date hereof. The Company and its management undertake no obligation to revise these statements following the date of this news release.

Food & Drug Administration Disclosure

The products and formulations featured in this release are not for use by or sale to persons under the age of 12. This product should be used only as directed on the label. Consult with a physician before use if you have a serious medical condition or use prescription medications. A doctor's advice should be sought before using this and any supplemental dietary product. These statements have not been evaluated by the FDA. This product is not intended to diagnose, treat, cure or prevent any disease.

Gummy USA ™, BergametNA™, Ultimate Brain Nutrients™, UBN™, Citrus Bergamot SuperFruit™ and F4T® are trademarks and registered trademarks of Healthy Extracts™ Inc.

Company Contact

Don Swanson, CEO
Healthy Extracts Inc.
Tel (801) 232-0753
Email contact

Investor Contact
CMA Investor Relations
Tel (949) 432-7554
https://www.capitalmarketaccess.com/contact

HEALTHY EXTRACTS INC.
CONSOLIDATED STATEMENT OF OPERATIONS
FOR THE THREE AND SIX MONTHS ENDING JUNE 30, 2026 AND 2025
(UNAUDITED)

The accompanying notes are an integral part of these unaudited consolidated financial statements

HEALTHY EXTRACTS INC.
CONSOLIDATED BALANCE SHEETS
AS OF JUNE 30, 2026 AND DECEMBER 31, 2025
(UNAUDITED)

SOURCE: HEALTHY EXTRACTS INC.