December 21, 2021

Healthe Files for Chapter 7 Bankruptcy Protection

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The company's COVID-pivot fueled good growth in 2020, but as revenues subside, Healthe is seeking to liquidate.

In recent years, Lighting Science Group (LSG) has transitioned from a lighting company and brand into a holding company of various lighting companies. One of LSG’s three companies, Healthe Inc., launched in February 2019 around human-centric lighting and evolved to include a strong focus on disinfection lighting, has filed for Chapter 7 bankruptcy protection in United States Bankruptcy Court for the District of Delaware.

The Chapter 7 filing is an indication that the company is not seeking to operate and restructure like Chapter 11 companies do. Chapter 7 means liquidation. Healthe is petitioning the court to sell its assets in order to pay off its debts.

Revenues
When the world was scrambling for virus-deactivating products in mid-2020, Healthe made the rounds on Fox News, Good Morning America and various local news outlets to promote the company’s UV disinfection solutions. The Covid disinfection pivot seemed to help the company grow its revenues from $1.7 million in 2019 to $6.7 million in 2020. But, Healthe’s revenues dipped in 2021 to $3.2 million through 11+ months.

What do they own?
In the bankruptcy filing, Healthe states that it owes creditors a total of $15.1 million and is seeking to liquidate $12.2 million in assets to repay most of the debts. Finished goods, sub-assemblies and components make up approximately $8 million of Healthe’s assets. Items such as the company’s 107 patents and internet domain name have an undefined value attached to them.

Who do they owe?
Healthe’s creditors include Crystal IS – a New York germicidal LED maker that is owed $2.7 million. Fred Maxic, a LSG founder, and Chief Scientific Officer at Healthe is owed $252,963. The majority of the debt, $8.2 million, is due to SMR Trust for what appears to be a business loan.

LSG’s other two companies seem to be continuing operation. VividGro is a provider of horticultural lighting products. And Global Value Lighting – a joint venture with MLS – continues to make private label lamp solutions that are often found in big box retailers. LSG is a portfolio company of Pegasus Capital Advisors.

News of Healthe's bankruptcy filing was first reported by EdisonReport.