Earth Science Tech, Inc. SEC 10-K Report

Earth Science Tech, Inc. (ETST), a strategic holding company with diversified operations in pharmaceutical compounding, telemedicine, real estate development, and direct-to-consumer products, has released its Form 10-K report for the fiscal year ended March 31, 2025. The report highlights significant financial growth, strategic acquisitions, and an expanding operational footprint, positioning the company for continued success in the healthcare and wellness sectors.

Financial Highlights

• Revenue: $33.12 million, driven by increased demand for compounded medications.
• Gross Profit: $24.30 million, representing a gross margin of 73%, up from 65% in the previous year.
• Net Income: $3.25 million, a significant increase from approximately $812,000 in the prior year.
• Earnings per Common Share (Basic and Diluted): $0.011, reflecting improved profitability.

Business Highlights

• Business Overview: ETST operates as a strategic holding company focused on value creation through acquisitions, operational optimization, and management of its subsidiaries. The company is involved in pharmaceutical compounding, telemedicine, real estate development, and direct-to-consumer products.
• Subsidiary Operations: ETST's subsidiaries include RxCompoundStore.com, LLC, Peaks Curative, LLC, Avenvi, LLC, Mister Meds, LLC, and Earth Science Foundation, Inc., covering a range of operations from compounding pharmacies to telemedicine platforms and real estate development.
• Pharmaceutical Compounding: RxCompound and Mister Meds operate as licensed compounding pharmacies, offering both sterile and non-sterile preparations. They are expanding their licensure to cover more states, aiming for nationwide service.
• Telemedicine Services: Peaks Curative and DOConsultations provide telemedicine services, facilitating consultations and prescription generation. They are expanding their provider network and licensure to offer services nationwide.
• Real Estate Development: Avenvi, LLC is engaged in real estate development, asset management, and financing. It supports ETST's operations by providing infrastructure and managing investment activities, including a $5 million share repurchase program.
• Consumer Products: MagneChef, a direct-to-consumer retail brand, focuses on developing and marketing patented products, primarily in the cooking sector. The company is expanding its product line to incorporate its intellectual property.
• Nonprofit Operations: Earth Science Foundation, Inc. (ESF) is a nonprofit subsidiary that provides financial assistance for prescription costs through donation-based programs.
• Recent Acquisitions: During the reporting period, ETST acquired 100% of Las Villas Health Care, Inc., DOConsultations, LLC, and an 80% interest in MagneChef. These acquisitions aim to diversify ETST's presence in targeted demographic and product segments.
• Regulatory Compliance: The company's operations are subject to extensive regulations, including pharmacy and telemedicine laws, consumer product safety standards, and nonprofit guidelines. ETST actively monitors regulatory developments to ensure compliance.
• Marketing Strategy: ETST employs a comprehensive marketing strategy that includes digital advertising, strategic partnerships, and cross-brand promotion to support growth across its pharmaceutical, telehealth, real estate, and consumer product operations.
• Competitive Landscape: ETST faces competition in multiple sectors, including compounding pharmacies, telemedicine services, real estate development, and consumer products. The company leverages its licensure coverage, quality standards, and integrated services to maintain a competitive edge.
• Employee Overview: As of March 31, 2025, ETST employs 76 individuals, with no union representation or collective bargaining agreements. The company maintains a positive relationship with its workforce.
• Future Outlook: ETST plans to continue expanding its licensure for pharmacy and telehealth operations nationwide, diversify its holdings through strategic acquisitions, and enhance its product offerings in the consumer market.

Strategic Initiatives

• Strategic Initiatives: The company has been actively expanding its operations through acquisitions, including the purchase of Las Villas Health Care, LLC, DOConsultations, LLC, and an 80% interest in Magnefuse, LLC. These acquisitions are part of the company's strategy to enhance its presence in the healthcare and wellness sector. Additionally, the company is focusing on expanding its telemedicine platform and real estate development through its subsidiaries.
• Capital Management: The company repurchased 14,583,916 shares of its common stock for $1,465,837.70 during the fiscal year ended March 31, 2025, as part of its ongoing $5 million share repurchase program. This repurchase activity is aimed at enhancing shareholder value. The company did not issue any stock-based compensation during the fiscal year and has not paid any dividends since its inception. The company also managed its debt by maintaining a balance of $69,305 in long-term liabilities as of March 31, 2025.
• Future Outlook: The company does not anticipate needing any future financing, indicating a stable financial position. It plans to continue its strategic acquisitions and expansion in the healthcare sector, leveraging its subsidiaries to drive growth. The focus will remain on enhancing operational capabilities and expanding market reach through strategic investments and acquisitions.

Challenges and Risks

• Market Risks: The company operates in highly competitive markets, facing competition from large, well-established healthcare providers and traditional retailers. This competition may limit the company's ability to compete effectively.
• Operational Risks: The company's limited operating history and evolving business model make it difficult to predict future results. The need to expand offerings and attract new customers is critical for growth, but failure to do so could materially harm the business.
• Regulatory Risks: The company is subject to extensive healthcare and governmental regulations. Noncompliance could result in substantial penalties and operational restrictions. Evolving telemedicine regulations create compliance uncertainty, potentially limiting geographic reach.
• Security Risks: Security breaches and data loss could compromise sensitive information, exposing the company to liability and reputational harm.
• Financial Risks: The company may require additional capital for growth, which might not be available on acceptable terms. The Series B class Preferred stock structure concentrates voting power, limiting investor influence.
• Management Strategies: The company is focused on expanding its operations and improving its buying power to negotiate better prices on raw materials. Management is also pursuing additional licensure to expand pharmacy and telehealth operations nationwide.

SEC Filing: Earth Science Tech, Inc. [ ETST ] - 10-K - Jun. 26, 2025