Healthier Choices Management Corp. (HCMC) reported essentially no operating revenue for the three and six months ended June 30, 2026, as legacy vape retail operations remain closed and new products have not yet launched. For the quarter, HCMC generated a small net income of $75,236 versus a loss of $1,991,797 a year earlier, driven almost entirely by a sharp reduction in operating expenses and a $328,373 reclassification of payroll costs to former subsidiary HCWC after termination of a Transition Services Agreement. For the six months, the net loss narrowed to $711,559 from $4,175,473.
Liquidity remains tight: at June 30, 2026, HCMC held $1.2 million in cash and had negative working capital of $0.7 million, with total assets of $1.5 million and a stockholders’ deficit of $1.7 million. The company depends on external financing, including a new $5.0 million unsecured revolving credit facility with Sabby Volatility Warrant Master Fund, of which $500,000 was drawn, and a $50,000 12% convertible note that can convert at $0.00009 per share. As of August 19, 2026, there were 527.2 billion common shares outstanding, with substantial additional potential dilution from preferred stock, options, and warrants. Management believes existing cash plus available borrowing capacity can fund operations for at least 12 months, but ongoing losses and reliance on financing remain significant risks.
The business strategy centers on monetizing intellectual property, particularly Q‑Cup™ and related patents, and launching the Quitcubes product using the NatureTine™ ingredient under a 2025 distribution agreement. The Quitcubes launch was delayed, producing no sales in the first half of 2026; management now targets a third‑quarter 2026 launch, while cautioning there is no assurance of material revenue or cash flow. Subsequent to quarter end, HCMC announced a digital asset initiative using its RAGE platform and the planned acquisition of two tokens; as of the reporting date no tokens had been delivered and no asset was recorded. The company also continues to pursue a patent infringement case against R.J. Reynolds Vapor Company after an adverse Patent Trial and Appeal Board decision, which HCMC has appealed. Internal control over financial reporting was assessed as ineffective, with material weaknesses in segregation of duties and IT controls; remediation efforts, including additional hiring and stronger IT policies, are underway.
Healthier Choices Management Corp. reported a net loss of $786,795 for the three months ended March 31, 2026, with no net sales as product launches were delayed. Operating expenses fell sharply to $806,624 from $2.17M a year earlier, mainly due to lower stock-based compensation and professional fees.
Cash and cash equivalent were about $1.1M with negative working capital of $0.8M, so the company is relying on a new $5M Sabby revolving credit facility, of which $500,000 has been drawn. Management expects a June 2026 launch of the Quitcubes product line but cautions there is no assurance it will generate material revenue.
The company continues to carry a stockholders’ deficit and recurring losses, and its key patent portfolio faced a setback when the Patent Trial and Appeal Board issued a decision in favor of R.J. Reynolds in an inter partes review, which HCMC plans to appeal. Management also reports material weaknesses in internal control over financial reporting, including segregation of duties and IT control deficiencies, and is implementing remediation plans.
Healthier Choices Management Corp. disclosed that a prior financing arrangement has been terminated. Under a Commitment Letter dated May 16, 2024, HCMC had access to a revolving line of credit allowing it to borrow up to $5.0 million for general working capital purposes. On March 27, 2026, HCMC and the private lender entered into a Termination Letter, ending this Commitment Letter. The Termination Letter is filed as an exhibit and incorporated by reference.
Healthier Choices Management Corp. entered a new loan agreement with Sabby Volatility Warrant Master Fund, Ltd. The company may borrow up to $5 million for working capital at an interest rate of 12% per annum, with the facility running through December 31, 2026. The debt is unsecured, and the company drew an initial $500,000 on March 27, 2026.
Healthier Choices Management Corp. reported a 2025 net loss from continuing operations of $7.0 million, narrowing from $8.1 million in 2024, on de minimis sales as it pivots away from closed vape retail stores toward monetizing its Q-Cup and other vaporizer patents.
The company completed the September 2024 spin-off of its grocery and wellness segment into HCWC, which is now reported as discontinued operations. As of December 31, 2025, cash was $1.1 million and working capital was negative $0.3 million. A key step was settling $4.0 million of related-party debt through issuing 43,889,786,222 common shares.
Healthier Choices also secured an undrawn $5 million revolving credit facility at 12% interest, maturing on December 31, 2026, to support liquidity. Even with these measures, auditors highlighted recurring losses and operating cash outflows, raising substantial doubt about the company’s ability to continue as a going concern despite management’s plans to cut costs, expand licensing, and seek additional capital.
Healthier Choices Management Corp. (HCMC) filed its Q3 2025 report, showing continued operating losses and tight liquidity. Net sales were minimal, while operating costs remained high, resulting in a net loss from continuing operations of $2.08 million for the quarter and $6.25 million year‑to‑date. Cash and cash equivalent were $1.12 million with total assets of $1.53 million, and current liabilities of $4.86 million, reflecting negative working capital.
The company reported a stockholders’ deficit of $(4.44) million and noted reliance on related‑party funding under a transition services framework following the HCWC spin‑off. As of November 6, 2025, 481,266,632,384 common shares were outstanding. Management believes cash on hand and the ability to draw on a $5 million line of credit will cover obligations for at least twelve months. HCMC disclosed material weaknesses in internal controls (segregation of duties and IT controls) and paid a previously accrued $1.5 million litigation settlement. A subsequent amendment extended preferred-stock agreement timelines to April 1, 2027.
Healthier Choices Management Corp. (HCMC) filed an 8-K/A announcing a Ninth Amendment to its Securities Purchase Agreement, extending the “Completion Date” to April 1, 2027.
The SPA, originally signed on August 18, 2022, covered the sale of 14,722.075 shares of Series E Redeemable Convertible Preferred Stock for an aggregate $13,250,000 to five institutional investors. Subsequent amendments linked investor obligations to a planned spin-off, added a 10% Conversion Payment upon certain conversions before the spin-off record date, and set/reset conversion-price mechanics for the spin-off entity’s Series A Preferred. The latest amendment solely moves the Completion Date.