Executive Summary

Q2 2024 was dominated by the sale of Viactiv; continuing operations were minimal, with ocular products revenue of $0.07M and gross margin improving to 49.8% while the company recorded a net income of $10.32M driven by a $12.74M gain from discontinued operations (Viactiv sale) .
Loss from continuing operations widened to $(2.13)M due to higher warrant-related fair value losses and settlement costs; diluted net EPS surged to $7.96 on the gain, versus $(3.71) in Q1 and $(0.92) in Q2’23 .
Liquidity strengthened post-sale with cash of $14.82M and working capital of $14.37M; the Board evaluated cash distributions for Q3 and subsequently declared a $5.00 per-share cash dividend (record date Sept 9; pay date Sept 23) .
No Wall Street consensus (S&P Global) estimates were available for GHSI; comparison to estimates is not possible. S&P Global consensus unavailable.

What Went Well and What Went Wrong

Material value realization: Completed sale of Viactiv for gross $17.2M, recording a $12.74M gain, which drove Q2 net income of $10.32M .
Ocular gross margin inflected: Gross margin improved to 49.8% vs (8.7)% YoY as COGS fell and prior inventory write-downs did not repeat .
Liquidity fortified: Cash rose to $14.82M and working capital to $14.37M, enabling distributions and warrant redemptions .

Continuing ops remain subscale: Ocular revenue decreased to $0.07M, with continuing operations posting a $(2.13)M loss .
Warrant headwinds: Non-cash losses from warrant derivative liability increased, and cash payments for warrant redemptions totaled ~$5.63M, reducing distributable cash .
Strategic/Listing risks: With Viactiv sold, remaining ocular business is not material and Nasdaq listing compliance risk increased (potential delisting discussed) .

Metric	Q2 2023	Q1 2024	Q2 2024
Loss from Continuing Operations ($USD)	$(1,580,150)	$(1,553,801)	$(2,133,026)
Net Income (Loss) ($USD)	$(1,172,411)	$(4,746,744)	$10,324,330
Net Diluted EPS ($USD)	$(0.92)	$(3.71)	$7.96
Weighted Avg Diluted Shares	1,268,103	1,280,306	1,297,638

Metric	Q2 2023	Q2 2024
Ocular Products Revenue ($USD)	$79,633	$72,918
Gross Profit ($USD)	$(6,941)	$36,346
Gross Margin (%)	(8.7)%	49.8%
Total Operating Expenses ($USD)	$1,413,443	$1,417,672
Loss from Operations ($USD)	$(1,420,384)	$(1,381,326)

Metric	Q2 2023	Q2 2024
Revenue ($USD)	$2,710,184	$1,889,472
Income from Operations ($USD)	$463,837	$200,923
Transaction Costs ($USD)	$(56,098)	$(485,952)
Gain on Sale ($USD)	—	$12,742,385
Total Income from Discontinued Ops ($USD)	$407,739	$12,457,356

Metric	Continuing (Ocular)	Discontinued (Viactiv)
Revenue ($USD)	$72,918	$1,889,472
Gross Profit ($USD)	$36,346	N/A
Income (Loss) from Operations ($USD)	$(1,381,326)	$200,923
Contribution to Net Income ($USD)	$(2,133,026)	$12,457,356

KPI	Q1 2024	Q2 2024
Cash and Equivalents ($USD)	$5,605,035	$14,822,826
Working Capital ($USD)	$9,110,684	$14,374,922
Warrant Derivative Liability ($USD)	$5,721,688	$631,254
Series A Warrants Outstanding (Shares)	690,100	68,800
Cash Paid to Redeem Warrants ($USD)	—	$5,632,429
Shares Outstanding (Common)	1,284,156	1,284,156

Metric	Period	Previous Guidance	Current Guidance	Change
Aggregate cash return per share	2024 (distribution program)	$9.00–$11.00 combined liquidating distributions (Board view)	$5.00 cash dividend declared (Record: Sept 9, 2024; Pay: Sept 23, 2024)	Initiated interim cash return; timing specified
Cash distributions (Board intent)	Determination expected by Q3 2024	Board evaluating timing of one or more distributions	Dividend declared; further distributions remain at Board discretion	Clarified initial action; broader distribution plan pending
Operational guidance (Revenue/Margins)	2024	None provided	None provided	Maintained

No Q2 2024 earnings call transcript was found; themes tracked from filings and press releases.

Topic	Previous Mentions (Q4 2023)	Previous Mentions (Q1 2024)	Current Period (Q2 2024)	Trend
Strategic alternatives & Viactiv sale	FY 2023 results; strategy progress	Signed Equity Purchase Agreement (Jan 30, 2024)	Sale closed May 31; $12.74M gain recognized	Completed; value realized
Shareholder cash returns	Not specified	Plan of Liquidation proposed; distributions contemplated	Board evaluated Q3 distributions; $5 dividend declared Aug 21	Increasing clarity; execution started
Supply chain & macro	2023 margin benefit from lower transport costs	Packaging delays impacted Q1 shipments	Minimal operations post-sale; ocular remains; macro/listing risks highlighted	Operational downsizing; risk elevation
Ocular product strategy	Portfolio overview	Lumega-Z reformulated to powder; email marketing	Ocular revenue small; margin improved; continuing ops subscale	Focused but small scale
Warrants & capital structure	—	Fundamental transaction likely to trigger cash redemption rights	621,300 Series A redeemed; derivative liability fell sharply	De-risked post-redemptions
Listing/compliance risk	—	Nasdaq compliance risks noted	Ongoing risk post-Transaction	Persistent risk

“We appreciate the support of our stockholders in approving the sale of our Viactiv business... we continue to believe that the closing of the Viactiv transaction, followed by an orderly and efficient wind-down of the Company... is the best result for our stockholders.” — Robert N. Weingarten, Chairman (May 23, 2024) .
Q2 8-K emphasized minimal operations post-sale and Board evaluation of cash distributions during Q3 2024 .
FY 2023 context: “We are pleased with the progress made during 2023, which was driven by strong topline growth combined with improved operating margins and a reduced cash burn.” — Jan Hall, CEO (Mar 29, 2024) .

No Q2 2024 earnings call transcript available; no Q&A to report [ListDocuments, earnings-call-transcript returned 0].

Wall Street consensus (S&P Global) EPS and revenue estimates for Q2 2024 were unavailable for GHSI; a comparison to consensus cannot be provided. S&P Global consensus unavailable.

Value realization complete: Viactiv divestiture generated a $12.74M gain, swinging net income positive and dramatically lifting diluted EPS to $7.96 in Q2 .
Core business is small: Continuing ocular operations posted $0.07M revenue and $(2.13)M continuing loss; future value likely driven by distributions and strategic outcomes rather than operations .
Capital returns underway: Board declared a $5.00 per-share cash dividend; further distributions remain at Board discretion, previously referenced at $9–$11 per share combined under the plan context .
Warrant overhang reduced: ~$5.63M cash paid to redeem Series A warrants; derivative liability fell to ~$0.63M, improving balance sheet clarity .
Listing risk persists: With minimal operations, Nasdaq continued listing compliance risk remains a watchpoint and could affect liquidity and trading dynamics .
Near-term trading: Catalysts center on distribution timing/amounts, any alternative transactions to dissolution, and additional corporate actions post-divestiture .
Monitoring: Cash balance ($14.82M) and working capital ($14.37M) support returns; watch escrow release and any post-closing adjustments ($225k escrow) .