Company: HYEX
Filing Date: 2025-04-22
Form Type: 10-K/A
Source: 0001096906-25-000553
Chunk: 60

Company: HEALTHY EXTRACTS INC.
Filing Date: 2025-04-22
Form: 10-K/A
Chunk 60
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 following: excess or slow-moving inventories (12 months or more of inventory on hand), expiration dates (within 12 months of the current reporting period), current and future product demand, production planning, and market conditions. If any of these factors are found in the reporting period, management will review each item and determine if any additional allowances or write-offs need to be made. A change in any of these variable’s factors could result in an adjustment to inventory. An allowance for inventory was established in 2018 and is evaluated each quarter to determine if all items are still sellable due to the factors listed above. As of December 31, 2024 and December 31, 2023, the total of inventory allowance was $ 781,759and $ 1,611,257. The following are the classes held in inventory as of December 31, 2024 and December 31, 2023: F-7

|                      |     | DECEMBER 31, |     | DECEMBER 31, |
|                      |     |         2024 |     |         2023 |
| Inventory            |     |              |     |              |
| Inventory Classes:   |     |              |     |              |
| Raw Materials        |     |   $1,932,383 |     |   $2,998,683 |
| Finished Goods       |     |      186,938 |     |      225,567 |
| Work in process      |     |       23,954 |     |       13,290 |
| Total inventory      |     |    2,142,975 |     |    3,237,540 |
| Inventory allowance  |     |     -781,759 |     |   -1,611,257 |
| Total inventory, net |     |    1,361,216 |     |    1,626,283 |

Property and Equipment

The Company’s property and equipment are recorded at cost and depreciated using the straight-line method over the useful lives of the assets, generally from three to seven years. Upon sale or disposal of property and equipment, the related asset cost and accumulated depreciation or amortization are removed from the respective accounts and any gain or loss is reflected in current operations.

Indefinite-Lived Intangible Assets

Indefinite-lived intangible assets established in connection with business combinations consist of patents, trademarks, and trade names. The impairment test for identifiable indefinite-lived intangible assets