Delivered strong results with an Adjusted EBITDA improvement of 9% year-over-year HOLLYWOOD, FL, May 10, 2021 (GLOBE NEWSWIRE) -- Healthier Choices Management Corp. (OTC Pink: HCMC) today announced its financial results for the three-month period ended March 31, 2021. First Quarter 2021 Results and Highlights: Net sales from operations amounted to approximately $3.5 million, down 14% from the same period last year; a significant portion of the decline related to last March’s COVID-19 sales surge in the grocery segment. Total operating expense was approximately $2.0 million for the three months ended March 31, 2021; a decrease of 15%. Net loss from operations was approximately $696,000; a 1% decline from the prior year. Adjusted EBITDA loss amounted to $394,000, an improvement of approximately 9% when compared to the same period last year. Jeffrey Holman, Chairman and Chief Executive Officer of Healthier Choices Management Corp., said, “We are pleased with our first quarter results which reflect the normalizing of sales and the increasingly improving momentum of our operating cost reductions.” Mr. Holman concluded, “We continue with our commitment to better the fundamentals of our operations. The progress made is largely attributable to simplifying our structure and sharpening our focus, and we believe that the our businesses are well poised to continue delivering operational improvement.” About Healthier Choices Management Corp. Healthier Choices Management Corp. (www.healthiercmc.com) is a holding company focused on providing consumers with healthier daily choices with respect to nutrition and other lifestyle alternatives. Through its wholly owned subsidiary HCMC Intellectual Property Holdings, LLC, the Company manages and intends to expand on its intellectual property portfolio. The Company currently operates eight retail vape stores in the Southeast region of the United States, through which it offers e-liquids, vaporizers and related products. The Company also operates Ada’s Natural Market, a natural and organic grocery store, through its wholly owned subsidiary Healthy Choice Markets, Inc. and Paradise Health and Nutrition, stores that offer fresh produce, bulk foods, vitamins and supplements, packaged groceries, meat and seafood, deli, baked goods, dairy products, frozen foods, health & beauty products and natural household items through its wholly owned subsidiary Healthy Choice Markets 2, LLC. The Company also sells vitamins and supplements on its website TheVitaminStore.com. The Company markets its Q-Cup™ technology under the vape segment. This patented technology is based on a small, quartz cup called the Q-Cup™, which a customer can purchase already filled by a third party in some regions, or can partially fill themselves with either cannabis or CBD concentrate (approximately 50mg), also purchased from a third party. The Q-Cup™ can then be inserted into the patented Q-Unit™, which heats the cup from the outside without coming in direct contact with the solid concentrate. This Q-Cup™ and Q-Unit™ technology provides significantly more efficiency and an “on the go” solution for consumers who prefer to vape concentrates either medicinally or recreationally. The Q-Cup™ can also be used in other devices as a convenient micro-dosing system. These products are available on the Company’s website at www.TheQcup.com. Forward Looking Statements. This press release contains forward looking statements within the meaning of that term in the Private Securities Litigation Reform Act of 1995 (Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934). Additional written or oral forward looking statements may be made by the Company from time to time in filings with the Securities and Exchange Commission (SEC) or otherwise. Statements contained in this press release that are not historical facts are forward looking statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995, and are based on management's estimates, assumptions and projections and are not guarantees of future performance. The Company assumes no obligation to update these statements. Forward looking statements may include, but are not limited to, projections or estimates of revenue, income or loss, exit costs, cash flow needs and capital expenditures, statements regarding future operations, expansion or restructuring plans, including our recent exit from and winding down of our wholesale distribution operations. In addition, when used in this release, the words "anticipates," "believes," "estimates," "expects," "intends," and "plans" and variations thereof and similar expressions are intended to identify forward looking statements. Factors that may affect our future results of operations and financial condition include, but are not limited to, fluctuations in demand for our products, the introduction of new products, our ability to maintain customer and strategic business relationships, the impact of competitive products and pricing, growth in targeted markets, the adequacy of our liquidity and financial strength to support its growth, and other information that may be detailed from time-to-time in our filings with the SEC. Contact Information: Healthier Choices Management Corp. 3800 North 28th Way, #1 Hollywood, FL 33020Office: 305-600-5004 / Fax: 954-272-7773Website: www.HealthierCMC.comEmail: email@example.com Results of Operations The following table sets forth our Condensed Consolidated Statements of Operations for the three-months ended March 31, 2021 and 2020: HEALTHIER CHOICES MANAGEMENT CORP.CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS(UNAUDITED) Three Months Ended March 31, 2021 2020 Total sales, net $3,465,753 $4,036,171 Total cost of sales 1,975,043 2,328,280 GROSS PROFIT 1,490,710 1,707,891 Total operating expenses 2,022,883 2,372,381 LOSS FROM OPERATIONS (532,173) (664,490) Total other expense, net (164,085) (26,804) NET LOSS FROM CONTINUING OPERATIONS $(696,258) $(691,294) See non-GAAP financial measure discussion Three Months Ended March 31, 2021 2020 Adjusted EBITDA Loss from operations $(532,173) $(664,490)Depreciation and amortization 136,597 147,834 Stock compensation 1,875 81,944 Adjusted EBITDA $(393,701) $(434,712) Consolidated Balance Sheets The following table sets forth our Condensed Consolidated Balance Sheets for the periods ended March 31, 2021 and December 31, 2020: HEALTHIER CHOICES MANAGEMENT CORP.CONDENSED CONSOLIDATED BALANCE SHEETS March 31, 2021 December 31, 2020 (UNAUDITED) ASSETS CURRENT ASSETS Cash and cash equivalents $5,316,169 $925,475 Other current assets 2,044,226 2,081,717 TOTAL CURRENT ASSETS 7,360,395 3,007,192 Other assets 6,625,142 8,867,801 TOTAL ASSETS $13,985,537 $11,874,993 LIABILITIES AND STOCKHOLDERS’ EQUITY CURRENT LIABILITIES Other current liabilities $2,157,750 $5,654,096 TOTAL CURRENT LIABILITIES 2,157,750 5,654,096 Other liabilities 3,779,746 3,963,529 TOTAL LIABILITIES 5,937,496 9,617,625 TOTAL STOCKHOLDERS’ EQUITY 8,048,041 2,257,368 TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY $13,985,537 $11,874,993 Non-GAAP – Financial Measure The following discussion and analysis contains a non-GAAP financial measure. Generally, a non-GAAP financial measure is a numerical measure of a company’s performance, financial position or cash flows that either excludes or includes amounts that are not normally included or excluded in the most directly comparable measure calculated and presented in accordance with generally accepted accounting principles (GAAP). Non-GAAP financial measures should be viewed as supplemental to, and should not be considered as alternative to, net income, operating income, and cash flow from operating activities, liquidity or any other financial measures. Non-GAAP financial measures may not be indicative of the historical operating results of the Company nor are they intended to be predictive of potential future financial results. Investors should not consider non-GAAP financial measures in isolation or as substitutes for performance measures calculated in accordance with GAAP. Management believes stockholders benefit from referring to the Adjusted EBITDA in planning, forecasting, and analyzing future periods. Management uses this non-GAAP financial measure in evaluating its financial and operational decision making and as a means of evaluating period to period comparison. We define Adjusted EBITDA as net loss from operations adjusted for non-cash charges from depreciation and amortization and stock compensation. Management believes Adjusted EBITDA is an important measure of our operating performance because it allows management, investor and analysts to evaluate and assess our core operating results from period to period after removing the impact of significant non-cash charges that effect comparability between reporting periods. Our management recognizes that Adjusted EBITDA has inherent limitations because of the excluded items. We have included a reconciliation of our non-GAAP financial measure to loss from operations as calculated in accordance with GAAP. We believe that providing the non-GAAP financial measure, together with the reconciliation to GAAP, helps investors make comparisons between the Company and other companies. In making any comparisons to other companies, investors need to be aware that companies use different non-GAAP measures to evaluate their financial performance. Investors should pay close attention to specific definition being used and to the reconciliation between such measures and the corresponding GAAP measure provided by each company under applicable rules of the Securities and Exchange Commission (“SEC”).