Healthier Choices Management Corp.

What they do

HCMC operates through wholly owned subsidiaries HCMC Intellectual Property Holdings, LLC, which holds and seeks to license its patent portfolio, and The Vape Store, Inc., which markets its patented Q-Cup and Imitine products. The Q-Cup is a small quartz cup that consumers fill with cannabis or CBD concentrate and insert into a Q-Cup Tank or Globe for external heating without direct concentrate contact. The company has no manufacturing capabilities and relies on third-party manufacturers. Its former Grocery and wellness business was spun off as Healthy Choice Wellness Corp. on September 13, 2024, and is reported as discontinued operations.

Revenue drivers

• Q-Cup vaporizer products — Marketed through The Vape Store, Inc. to consumers in the vaping market for cannabis and CBD concentrates; sales have been de minimis, with total annual sales of $2,979 in 2025 and $501 in 2024.
• Quitcubes — New product line utilizing the company's NatureTine ingredient, to be commercialized under a November 27, 2025 distribution agreement where the distributor handles marketing and fulfillment; no net sales were recorded for the three and six months ended June 30, 2026.
• Intellectual property licensing and royalties — HCMC Intellectual Property Holdings, LLC holds patents, including nine new electronic vaporizer patents granted from 2019 through December 31, 2025, and the company pursues exclusive and non-exclusive licensing agreements and enforcement actions; no licensing revenue figures were disclosed.

Recent performance

For the year ended December 31, 2025, HCMC reported sales of $2,979 and a net loss from continuing operations of $7.0 million, compared with sales of $501 and a net loss of $8.1 million in 2024. Operating expenses fell $1.4 million to $7.0 million, primarily due to lower stock compensation. Recent quarterly revenue declined from $1,780 in the quarter ended March 31, 2025, to $1,000 in the June 2025 quarter, $199 in the September 2025 quarter, and zero in the December 2025 quarter. As of June 30, 2026, the company had approximately $1.2 million in cash and negative working capital of $0.7 million.

Strategy

The company's stated strategy centers on maximizing the value of its intellectual property through HCMC Intellectual Property Holdings, LLC, pursuing licensing and royalty agreements and enforcement actions against infringers. It terminated its prior $5 million credit facility on March 27, 2026 and entered a new $5 million Sabby Loan Agreement maturing December 31, 2026, bearing 12% interest, with an initial $500,000 advance and $4.5 million available for future draws. Management says the Quitcubes launch is critical to generating future revenue and addressing recurring losses, and it expects the official commercial launch in the third quarter of 2026. The company also received $50,000 on June 26, 2026 from a convertible note with Pinz Capital Special Opportunities Fund, LP, formalized July 6, 2026.

Risks

• Going concern and liquidity — The company has historically reported net losses and cash outflows from operations, with negative working capital of $0.7 million as of June 30, 2026, and says there is no assurance its cost-reduction and capital-raising plans will succeed.
• Quitcubes launch delay — The Quitcubes launch was originally anticipated in the first quarter of 2026 but was delayed, and management states the successful launch is critical to generating future revenue.
• No manufacturing capability — HCMC has no manufacturing capabilities and does not intend to develop any, depending on third-party manufacturers for its vaporizer products, so any supply interruption could harm its business.
• Unproven IP monetization — The company states there is no assurance it will be awarded pending patents or that it can monetize its patents, and sales in 2025 and 2024 continued to be significantly affected by the inability to bring new products to market via distribution.

Outlook

Management expects the official commercial launch of Quitcubes to occur in the third quarter of 2026 and believes it is critical to generating future revenue. The company states that its cash on hand, up to $4.5 million in additional draws under the Sabby Loan Agreement, and the $50,000 Pinz proceeds should enable it to meet obligations and capital requirements for at least the near term. No assurance is given that these plans will be successful.