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PRE-MKT · 07:20 ET
Market ClerkRecap
Tue Oct 27 · pre-market1 signal on Oct 26140 insider buys this week · $73.9MCIRO short report next: Oct 31The week ahead

ETST

Earth Science Tech, Inc.
OTC · HEALTH CARE · PHARMACEUTICAL PREPARATIONS
0.09
+0.00 +5.22%
USD · close Oct 23

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MKT CAP $27.2MP/E 7.3DIV YIELD —FCF YIELD —REV TTM $36M +8.0%NET INCOME $3.9M +47.2%NET CASH $558K52W 0.08 – 0.24SEC XBRL · TTM TO Invalid Date

How ETST rewrote its risk factors

10-K ITEM 1A · FY2025 → FY2026
Text kept
73%
of sentences unchanged
Added
27
new sentences
Dropped
19
sentences removed
Length
+256
words, now 3,472

New in FY2026

  • If we fail to effectively maintain, promote, and enhance our brand in a cost-effective manner, our business and competitive advantage may be harmed. ● Our pharmacy business subjects us to additional healthcare laws and regulations beyond those we face with our telehealth business and increases the complexity and extent of our compliance and regulatory obligations. ● If we fail to comply with applicable healthcare and other governmental regulations, we could face substantial penalties, in which case our business, financial condition, and results of operations could be adversely affected, and we may be required to restructure our operations. ● Evolving government regulations and enforcement activities may require increased costs or adversely affect our results of operations. ● Security breaches, loss of data, and other disruptions could compromise sensitive information related to our business or customers or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation. ● We may be subject to legal proceedings and litigation, including intellectual property disputes, which are costly to defend and could materially harm our business and results of operations. ● We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all. ● Our Series B class Preferred stock structure has the effect of concentrating voting power with our Chief Executive Officer and Chairman of the Board, Giorgio R.
  • Risks Related to Health and Wellness sector Our limited operating history and evolving business model make it difficult to evaluate our current performance or predict our future results.
  • Our core business model, particularly through Peaks, and Villas, operates in emerging areas of telehealth and wellness.
  • Our reliance on MOC Teledoc, our affiliated healthcare provider network, exposes us to risks related to provider recruitment, retention, clinical liability, and complex regulatory compliance.
  • MOC Teledoc, a subsidiary operating under Peaks, manages our proprietary telemedicine platform and network of affiliated doctors to facilitate telehealth consultations.
  • Our continued growth and ability to seamlessly fulfill prescriptions depend heavily on recruiting, retaining, and effectively managing qualified, state-licensed healthcare professionals within this network.
  • If we encounter difficulties in expanding the MOC Teledoc network, or if we experience high turnover among affiliated providers, our capacity to handle patient volume could be severely constrained, directly impacting revenue.
  • Furthermore, facilitating medical consultations exposes us to inherent clinical risks.
  • We may face vicarious liability, medical malpractice claims, or reputational damage arising from the clinical decisions, conduct, or omissions of the independent providers utilizing the MOC Teledoc platform.
  • Additionally, we must ensure our operational relationship with MOC Teledoc strictly adheres to varying state-specific Corporate Practice of Medicine (CPOM) doctrines, which prohibit non-physician entities from interfering with the independent clinical judgment of licensed medical professionals.
  • Any regulatory scrutiny or legal challenges regarding the operational independence or classification of these physicians could result in significant fines, costly mandatory restructuring, or severe disruptions to our telehealth operations.
  • Risks Related to Asset Management Market volatility could affect asset values and returns.
  • Avenvi’s performance is closely tied to the Company’s strategic direction.
  • As Avenvi manages physical infrastructure and real estate investments for Earth Science Tech, Inc., changes in ETST’s strategic priorities, capital allocation, or liquidity may directly affect Avenvi’s development operations and financial outcomes.
  • Failure to meet development expectations or mismanagement of capital—especially in relation to the Company’s resources—may result in reputational damage or increased scrutiny from shareholders and regulators.
  • Risks Related to MagneChef Consumer We may be unable to protect our intellectual property rights, including those associated with MagneChef.
  • The MagneChef product line depends on patented technologies and trademarked branding.
  • Product liability or safety issues related to MagneChef could result in reputational harm or legal exposure.
  • MagneChef operates in a competitive consumer goods market with limited barriers to entry.
  • Shifts in consumer behavior may impact demand for MagneChef products.
  • As telehealth laws continue to evolve across jurisdictions, we must adapt to inconsistent requirements around prescribing, physician licensure, patient consent, and record keeping.
  • Our compounding pharmacy operations rely on regulatory exemptions that are subject to strict and evolving FDA interpretation, particularly regarding drug shortages.
  • RxCompound and Mister Meds operate under Section 503A of the FDCA, which provides exemptions from standard FDA drug approval processes provided certain conditions are met, including restrictions on compounding drugs that are ‘essentially a copy’ of commercially available products.
  • We rely on the FDA’s drug shortage list to legally compound certain high-demand medications.
  • If the FDA removes key active pharmaceutical ingredients from the shortage list, alters its enforcement discretion, or determines that our customized formulations do not demonstrate sufficient clinical difference from mass-market drugs, our pharmacies could be forced to immediately halt production of highly profitable product lines, which would materially and adversely affect our revenue.
  • Our success depends in part on our ability to protect proprietary technologies, trademarks, trade secrets, and other intellectual property associated with our brands, including MagneChef.
  • Risks Related to Ownership of the Company Securities Our common stock is currently quoted only on the OTCID Marketplace, which may have an unfavorable impact on our stock price and liquidity.

Gone since FY2025

  • If we fail to effectively maintain, promote, and enhance our brand in a cost-effective manner, our business and competitive advantage may be harmed. ● Our pharmacy business subjects us to additional healthcare laws and regulations beyond those we face with our telehealth business and increases the complexity and extent of our compliance and regulatory obligations. ● If we fail to comply with applicable healthcare and other governmental regulations, we could face substantial penalties, in which case our business, financial condition, and results of operations could be adversely affected, and we may be required to restructure our operations. ● Evolving government regulations and enforcement activities may require increased costs or adversely affect our results of operations. ● Security breaches, loss of data, and other disruptions could compromise sensitive information related to our business or customers or prevent us from accessing critical information and expose us to liability, which could adversely affect our business and our reputation. ● We may be subject to legal proceedings and litigation, including intellectual property disputes, which are costly to defend and could materially harm our business and results of operations. ● We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all. ● Our Series B class Preferred stock structure has the effect of concentrating voting power with our Chief Executive Officer and Director, Giorgio R.
  • Risks Related to Peaks, RxCompound, Mister Meds Business, DOC, and Villas Our limited operating history and evolving business model make it difficult to evaluate our current performance or predict our future results.
  • Our core business model, particularly through Peaks, DOC, and Villas, operates in emerging areas of telehealth and wellness.
  • The conduct of affiliated healthcare providers may expose us to liability and reputational harm.
  • Our reputation and legal standing may be affected by the actions of healthcare professionals affiliated with Peaks, DOC, Villas, RxCompound, or Mister Meds.
  • Any unethical or noncompliant conduct may result in legal exposure or loss of trust in our platform.
  • Risks Related to Avenvi Business Market volatility could affect asset values and returns.
  • Avenvi ’ s performance is closely tied to ETST ’ s strategic direction.
  • As Avenvi manages investments for Earth Science Tech, Inc., changes in ETST ’ s strategic priorities or liquidity—such as decisions surrounding the $5 million share repurchase program—may affect Avenvi ’ s operations and outcomes.
  • Failure to meet development expectations or mismanagement of capital—especially in relation to ETST ’ s resources—may result in reputational damage or increased scrutiny from shareholders and regulators.
  • Risks Related to MagneChef Consumer We may be unable to protect our intellectual property rights, including those associated with Magne.
  • The Magne product line depends on patented technologies and trademarked branding.
  • Product liability or safety issues related to Magne could result in reputational harm or legal exposure.
  • Magne operates in a competitive consumer goods market with limited barriers to entry.
  • Shifts in consumer behavior may impact demand for Magne products.
  • As telehealth laws continue to evolve across jurisdictions, we must adapt to inconsistent requirements around prescribing, physician licensure, patient consent, and recordkeeping.
  • Our success depends in part on our ability to protect proprietary technologies, trademarks, trade secrets, and other intellectual property associated with our brands, including Magne.
  • Risks Related to Ownership of the Company Securities Trading in our common stock on the Pink Exchange has been subject to wide fluctuations.
  • Our common stock is currently quoted only on the OTC Pink Marketplace, which may have an unfavorable impact on our stock price and liquidity.

Sentence-level comparison of Item 1A in the two most recent 10-Ks (FY2025 ↗, FY2026 ↗). A reworded sentence counts as one dropped and one added, so heavy edits read as low “kept”. Headings and page furniture are stripped; nothing is summarised by a model.

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