Breaking Down Guardion Health Sciences, Inc. (GHSI) Financial Health: Key Insights for Investors

If you're still holding Guardion Health Sciences, Inc. (GHSI) stock, you're not looking at a traditional operating company anymore-you're looking at a liquidation event, and the financial health story is all about the wind-down value, not the old P&L. Honestly, forget the analyst forecasts that projected a full-year 2025 revenue of $15 million and an annual EBIT (Earnings Before Interest and Taxes) loss of -$3 million; those numbers are moot. The real action happened when the company sold its Viactiv® brand for $17.2 million gross cash and filed a certificate of dissolution in late 2024. The crucial financial insight for you now is the return of capital: the company declared a cash distribution of $3.25 per share to stockholders in December 2024, a direct and concrete return of value. This is a rare, clean exit, so your focus should shift entirely from growth potential to the final, total liquidating dividend (the remaining net assets distributed to shareholders) as the company completes its wind-down activities in 2025.

Revenue Analysis

You need to know the core truth about Guardion Health Sciences, Inc. (GHSI)'s revenue: the company's financial profile has undergone a near-total transformation in 2024, moving from a multi-million dollar business to a minimal operation focused solely on ocular health. The sale of its dominant asset means historical revenue figures are largely irrelevant for projecting the near-term future, so you must adjust your models immediately.

The primary revenue stream for Guardion Health Sciences, Inc. was, for years, the Viactiv product line, a nutritional supplement business. In 2023, Viactiv generated approximately $11.9 million in net revenue, which constituted a staggering 97.2% of the company's total revenue of $12.2 million for the year ended December 31, 2023.

However, that entire revenue base is gone. The company completed the sale of the Viactiv business for a gross cash consideration of $17.2 million in Q2 2024. This strategic move, coupled with the subsequent approval of a Plan of Liquidation and Dissolution, means the remaining business-the ocular health segment-is now the sole source of continuing operations revenue, and it is minimal. In Q2 2024, the continuing operations (ocular products) generated only $0.07 million (or $72,918) in revenue. That's a massive, sudden decline in the core business revenue base. Honestly, the company is now essentially a liquidation play, not an operating entity.

Shifting Revenue Streams: Pre- and Post-Sale

Before the sale, the company showed a respectable year-over-year revenue growth rate of 10.8% in 2023, increasing total revenue from $11.0 million in 2022 to $12.2 million in 2023. This growth was almost entirely attributable to the Viactiv line. The current revenue picture is dramatically different, based on the remaining ocular health segment.

The continuing revenue streams are now focused on specialty clinical nutrition and diagnostic devices for ocular health, including products like Lumega-Z and GlaucoCetin (dietary supplements) and the MapcatSF diagnostic technology. The near-term revenue potential from these products is highly limited, as evidenced by the Q2 2024 figure. For the 2025 fiscal year, one consensus forecast projects a total annual revenue of $15 million, but this figure is highly suspect, likely obsolete, and does not align with the continuing operations revenue of $0.07 million in Q2 2024. What this estimate hides is the fact that the company is actively liquidating.

Here's the quick math on the segment contribution from 2023, which highlights the severity of the change:

The significant change is the shift from a high-volume consumer product business to a niche, low-volume clinical products business, plus the company's decision to pursue a Plan of Liquidation and Dissolution. This means the future value for investors is defintely tied to cash distributions from the sale proceeds, not operational growth. For a deeper dive into the valuation implications, you should read Breaking Down Guardion Health Sciences, Inc. (GHSI) Financial Health: Key Insights for Investors.

• Focus on the $17.2 million sale proceeds, not the $0.07 million quarterly revenue.
• The remaining business is not material for valuation purposes.

Profitability Metrics

You need a clear picture of Guardion Health Sciences, Inc. (GHSI)'s profitability, and the direct takeaway is this: the company is currently unprofitable on an operating basis, which is a critical risk, especially as it moves through its plan of dissolution and liquidation. The forecasted annual revenue for the 2025 fiscal year is approximately $15 million, but this is projected to result in an Operating Profit (Earnings Before Interest and Taxes, or EBIT) of negative $3 million.

This negative EBIT translates to a substantial Operating Profit Margin of -20.0%, meaning the company is spending 20 cents more than it earns just to run its core operations before accounting for interest and taxes. The forecasted Net Loss per share for 2025 is -$1.04, confirming significant bottom-line losses.

Here's the quick math on the operational performance for the remaining business:

• Revenue (Forecasted 2025): $15,000,000
• Operating Profit (EBIT, Forecasted 2025): -$3,000,000
• Operating Profit Margin: -20.0%

Gross Margin Trends and Operational Efficiency

The Gross Profit Margin-which measures how efficiently the company produces its goods-shows a mixed but improving picture for the continuing ocular products business, which is the only remaining operation following the sale of the Viactiv® brand in May 2024. This sale fundamentally changed the company's financial profile, so we must focus on the continuing operations.

For the three months ended June 30, 2024, the Gross Profit for the ocular products business was $36,346 on revenue of $72,918, which resulted in a Gross Margin of 49.8%. This is a massive improvement from the same quarter in 2023, where the Gross Margin was actually negative (8.7%), reflecting poor cost management or pricing issues at that time. The current 49.8% Gross Margin shows better cost management on the product side, but it's clearly not enough to cover the high operating expenses.

The challenge isn't the cost of goods sold (COGS) anymore; it's the operational expenses. For the first six months of 2024, total operating expenses for the continuing business were $2,855,944, which is nearly 18.5 times the revenue of $154,037 for that same period. That's a huge structural cost problem. You can see more about the remaining business focus in the Mission Statement, Vision, & Core Values of Guardion Health Sciences, Inc. (GHSI).

Industry Comparison: A Sobering Reality

When you stack Guardion Health Sciences, Inc.'s profitability against the industry, the negative operating performance stands out sharply. The company is classified in the healthcare sector, and a good comparison is with the average for U.S. Healthcare Product companies.

The comparison shows the gap between GHSI's current state and a healthy peer group. The company is defintely not a growth story right now; it's a liquidation story.

While the 49.8% Gross Margin is close to the industry average of 55.64%, the negative -20.0% Operating Margin is the real issue. It confirms that the company's core products are priced reasonably and cost-controlled well enough, but the overhead structure is unsustainable for the current revenue base. The high operating expenses are overwhelming the gross profit, which is why the board approved a plan of dissolution and liquidation.

Actionable Insight: Your focus shouldn't be on a turnaround, but on the liquidation process. The profitability metrics confirm the company's decision to dissolve. Track the Net Asset Value per share, not the income statement.

Debt vs. Equity Structure

The conversation around Guardion Health Sciences, Inc. (GHSI)'s debt-to-equity structure is unique, as the company is no longer a going concern. The critical financial event for 2025 is the company's Breaking Down Guardion Health Sciences, Inc. (GHSI) Financial Health: Key Insights for Investors, which is a strategic exit, not a traditional growth strategy. Stockholders approved the Plan of Liquidation and Dissolution in May 2024, and the certificate of dissolution was filed on October 30, 2024. This means the focus shifts from managing debt for expansion to settling liabilities for a final cash distribution.

As of the last reported balance sheet data before the final dissolution steps in late 2024, Guardion Health Sciences, Inc. maintained an extremely conservative debt profile. This is a clean balance sheet, which is defintely a positive in a liquidation scenario. Specifically, the company reported $0 USD in Short-Term Debt as of June 30, 2024. The total long-term liabilities were minimal, consisting primarily of $0.63 million in Other Long-Term Liabilities.

Here's the quick math on their leverage ratio based on the June 30, 2024, financials, which is the most relevant data for the 2025 wind-down. We calculate the Debt-to-Equity (D/E) ratio by dividing total liabilities by shareholder equity. Total liabilities stood at approximately $1.55 million ($0.92 million in current liabilities plus the $0.63 million in long-term liabilities). With total assets of $15.3 million, this implies a shareholder equity of roughly $13.75 million.

• Total Liabilities (Jun 30, 2024): $1.55 million
• Shareholders' Equity (Jun 30, 2024): $13.75 million
• Calculated Debt-to-Equity Ratio: 0.11:1

This calculated D/E ratio of approximately 0.11:1 is exceptionally low. For context, the average D/E ratio for the Biotechnology sector-a reasonable proxy for this clinical nutrition company-is around 0.17 as of November 2025. Guardion Health Sciences, Inc. was significantly under-leveraged compared to its peers, meaning its capital structure was overwhelmingly funded by equity, not debt. This low leverage minimized risk for the company's final phase.

The most significant 'financing' activity in this period was the strategic sale of its Viactiv brand and business to Doctor's Best Inc. for $17.2 million in cash. This action, completed in May 2024, was the ultimate balancing act: an equity-focused move to monetize its primary asset and return value to shareholders, rather than using debt to fund continued operations. This clear preference for equity funding-and ultimately, equity return-over debt financing defines the company's final financial strategy. The subsequent cash distributions to stockholders, totaling approximately $3.25 per share, are the direct result of this strategy, effectively liquidating the equity value.

Liquidity and Solvency

When you look at Guardion Health Sciences, Inc. (GHSI), you have to understand the context first: the company is executing a Plan of Liquidation and Dissolution, which fundamentally changes how you read its metrics. The numbers you see are not for a going concern, but for a company winding down its operations and distributing capital. We are using the Trailing Twelve Months (TTM) data ending around mid-2024 as the most recent, concrete proxy for the 2025 fiscal year financial health.

The company's short-term liquidity position looks incredibly strong, but this is by design. The TTM Current Ratio, which measures the ability to cover short-term debts with short-term assets, stands at an exceptional 16.67. The Quick Ratio (or acid-test ratio), which strips out inventory-a smart move for a company in liquidation-is nearly identical at 16.17. Honestly, anything over 1.0 is considered healthy, so these figures are a massive strength, reflecting the cash-heavy nature of a business preparing to close its books.

This liquidity strength is clearly mapped in the working capital. As of the TTM period ending in June 2024, Guardion Health Sciences, Inc. held total Current Assets of $15.29 million against minimal Current Liabilities of only $0.92 million. Here's the quick math: that leaves a net positive working capital of approximately $14.37 million. This massive buffer exists specifically to cover all remaining obligations and facilitate the final cash distributions to shareholders.

The cash flow statements tell the real story of the liquidation strategy and the company's past operational struggles.

• Operating Cash Flow (OCF): This was negative, sitting at -$3.92 million TTM through June 2024. A negative OCF means the core business was still burning cash, not generating it.
• Investing Cash Flow (ICF): This was a significant positive inflow of $16.27 million. This massive cash injection comes directly from the sale of assets, most notably the Viactiv® brand and business, which was completed in 2024.
• Financing Cash Flow (FCF) Trends: The major FCF event was a massive outflow-the cash distribution of $3.25 per share declared in late 2024. This is the ultimate goal of the liquidation process and represents the return of capital to stockholders.

What this all means is that while the underlying operations were defintely not self-sustaining (negative OCF), the liquidity is a non-issue. The company is flush with cash from asset sales, and that cash is earmarked for you, the shareholder. The only real liquidity concern is the timing and final amount of the remaining distributions, which you can learn more about by Exploring Guardion Health Sciences, Inc. (GHSI) Investor Profile: Who's Buying and Why?

Valuation Analysis

You're looking at Guardion Health Sciences, Inc. (GHSI) and trying to figure out if there's any value left, especially with the company's announced plan of dissolution and liquidation. The short answer is that traditional valuation metrics are largely distorted or non-existent, suggesting the stock is a liquidation play, not an operating investment.

The company's status as a liquidating entity means you should treat its stock less like a growth investment and more like a claim on the remaining assets. The current stock price is around $3.22 as of November 2025, but the valuation ratios tell a much more complex story about its financial health.

Here's the quick math on the key valuation multiples, keeping in mind the company's liquidation context:

• Price-to-Earnings (P/E): The P/E ratio is not meaningful because the company is not profitable. The forecasted annual Earnings Per Share (EPS) for the 2025 fiscal year is expected to be a loss of -$1.04 per share. When a company has negative earnings, the P/E ratio is negative, which is useless for comparison.
• Price-to-Book (P/B): The most recent Price-to-Book ratio is approximately 0.30. This is a crucial metric in a liquidation scenario. A P/B ratio significantly below 1.0 suggests the market values the company's equity at less than its net tangible assets (assets minus liabilities). Honestly, a P/B of 0.30 could signal the stock is technically 'undervalued' based on book value, but only if those assets can be sold at or near their stated value.
• Enterprise Value-to-EBITDA (EV/EBITDA): The forecasted annual Earnings Before Interest and Taxes (EBIT) for 2025 is expected to be a loss of -$3 million. Since the company is unprofitable, the EV/EBITDA ratio is also negative or highly volatile, making it an unreliable tool for a delisting stock.

What this estimate hides is the true recoverable value of the assets, which is the real driver in a liquidation. You need to look at the net cash per share after all liabilities and liquidation costs are settled.

Stock Price Trend and Liquidation Dividend

The stock price trend over the last 12 months has been volatile, which is typical for a micro-cap company undergoing a major corporate action like dissolution. The 52-week range has stretched from a low of $3.04 to a high of $11.34. This wide range reflects speculation and the impact of corporate announcements, not stable operating performance.

Guardion Health Sciences, Inc. is not a traditional dividend stock. The large cash distribution of $5.00 per share paid in September 2024 was a special dividend related to the company's plan of dissolution and liquidation, following the sale of its Viactiv® brand and business. It is not a recurring dividend yield you can rely on. The reported forward dividend yield of over 150% is a mathematical anomaly caused by this one-time payout and should be ignored for future investment planning.

Analyst Consensus: The Bearish Reality

To be fair, there is no formal, traditional Wall Street analyst consensus (buy, hold, or sell) for Guardion Health Sciences, Inc. Most major firms stop covering a stock once it announces liquidation or moves to the Over-The-Counter (OTC) market. Still, the overall market sentiment, based on technical indicators and forecasts, has been largely Bearish. This reflects the inherent risk and uncertainty of a company winding down operations, plus the fact that the stock is now an illiquid security.

Your action here is simple: if you own the stock, monitor the liquidation process closely for updates on final cash distributions. If you're considering buying in now, you are betting solely on the net asset value exceeding the current $3.22 price. You can find more details on this situation in Breaking Down Guardion Health Sciences, Inc. (GHSI) Financial Health: Key Insights for Investors.

Risk Factors

You're not looking at a growth stock here; you're assessing a liquidation play. The single most important risk for Guardion Health Sciences, Inc. (GHSI) is no longer market competition or product failure, but the successful execution of its Plan of Liquidation and Dissolution, approved by stockholders on May 31, 2024. The company filed its certificate of dissolution on October 30, 2024, so the investment thesis has fundamentally shifted from operations to asset distribution. This is a completely different ballgame.

The primary risk now is that the final liquidating distribution will be less than the current market expectation. While the company declared a cash distribution of $3.25 per share in late 2024 (following a prior $5.00 per share dividend), this total is not guaranteed to be the final cash-out. The company will continue to operate for up to three years solely to wind down its business, settle liabilities, and distribute remaining assets.

Operational and Financial Risks in Wind-Down

Even in liquidation, the company faces concrete financial and operational risks that can erode the remaining cash pool. The forecasted annual earnings per share (EPS) for the fiscal year ending 2025-12-31 was -$1.04 per share, and the forecasted annual EBIT (Earnings Before Interest and Taxes) was -$3 million (MM). While these are legacy operating forecasts, they underscore the historical struggle with profitability that led to the dissolution. The focus shifts to minimizing these costs during the wind-down period.

• Litigation Exposure: The company remains subject to existing and future legal claims, which could require significant unanticipated cash outlays.
• Administrative Costs: Winding-down requires ongoing expenses for legal, accounting, and administrative services over the multi-year period, which will reduce the final distributable cash.
• Asset Valuation: The value realized from the final disposition of remaining assets, which includes the Lumega-Z and GlaucoCetin product lines, may be less than their book value.

For context, the company's cash position was $14.8 million as of June 30, 2024, following the sale of the Viactiv® brand for $17.2 million gross cash consideration. The net income for Q2 2024 was $10,324,330, but this was almost entirely driven by a one-time $12,742,385 gain on the sale of discontinued operations. That's a clean one-liner: The only thing making money was the sale of the business itself.

Market and Regulatory Status

The stock's market status is a definitive risk. The company announced its intent to delist from the Nasdaq Capital Market, with trading suspension expected in October 2024, and has since moved to the over-the-counter market. Plus, the SEC has approved the indefinite suspension of its reporting obligations. This severely limits transparency and liquidity for shareholders.

Here's the quick math on the shift: The company is no longer a clinical nutrition firm developing products like Lumega-Z or GlaucoCetin; it is a cash-holding vehicle. The analyst consensus revenue forecast of $15 million for 2025-12-31 is largely irrelevant now, as the core revenue stream (Viactiv) is gone, and the remaining operations are solely for liquidation.

If you want to understand who is still holding this stock and why, you should be Exploring Guardion Health Sciences, Inc. (GHSI) Investor Profile: Who's Buying and Why?

Next Step: Track the 8-K filings for any updates on the wind-down costs and the timing of the next liquidating distribution. Finance: Model a worst-case scenario for the final distribution based on a 20% increase in estimated wind-down costs.

Growth Opportunities

You're looking at Guardion Health Sciences, Inc. (GHSI) and wondering about its future, but honestly, the traditional growth playbook is out the window here. The company's future is now defined by its Plan of Liquidation and Dissolution, not by product sales growth, so your focus needs to shift from earnings to liquidating distributions.

The most important strategic initiative for Guardion Health Sciences, Inc. today is the orderly winding down of the business, a process that began when stockholders approved the plan on May 31, 2024. This isn't a turnaround story; it's a value extraction exercise. The company officially filed a certificate of dissolution on October 30, 2024, and will continue operations for up to three years under Delaware law solely to settle affairs and distribute remaining assets.

The New Strategic Reality: Asset Liquidation

The biggest near-term action was the sale of the Viactiv® brand and business to Doctor's Best Inc. for $17.2 million. That transaction immediately crystallized value for shareholders. This is the new 'growth driver'-converting intangible assets into hard cash for distribution. The goal now is maximizing the net proceeds from the remaining assets, primarily the ocular health product portfolio, before the final curtain.

The strategic roadmap shifted from 'product innovation' to 'asset disposition.' The cash distribution of $3.25 per share to stockholders of record as of October 30, 2024, is a concrete example of this strategy in action, with payment expected before December 27, 2024. That's the real return you're chasing now. Here's the quick math: the aggregate potential liquidating distributions were estimated to range from approximately $9.00 to $11.00 per share, assuming the Viactiv sale was approved.

• Sell off remaining inventory and intellectual property.
• Settle all liabilities and legal claims.
• Distribute final cash to shareholders.

Reframing 2025 Financial Projections

You might see old forecasts floating around, like a projected annual revenue of $15 million for the fiscal year ending December 31, 2025, or an earnings per share (EPS) estimate of -$1.04 per share. To be fair, those numbers are defintely misleading now. The Viactiv brand alone generated approximately $11.9 million in net revenues in 2023, and since that's gone, the $15 million forecast for the full company is essentially obsolete.

Instead of a traditional income statement, you should be looking at the balance sheet and the estimated liquidating value. The future earnings story is replaced by the distribution schedule. The company's competitive advantage in this final phase is its focus on science-based, clinically supported products in the ocular health space, which may still hold a specific, discrete value for a potential buyer of the remaining assets. That niche focus is the last piece of value to be unlocked.

If you want a deeper dive into the historical performance that led to this decision, check out the full analysis: Breaking Down Guardion Health Sciences, Inc. (GHSI) Financial Health: Key Insights for Investors. Your next step is to track the remaining cash distributions and the progress of the final wind-down, not quarterly sales.