{"url_path":"/sec/etst/10-k/2026/item-1","section_key":"item-1","section_title":"Item 1 BUSINESS**","topic":"sec","document":{"doc_type":"10-K","doc_date":"2026-06-18","source_url":"https://www.sec.gov/Archives/edgar/data/1538495/0001493152-26-029160-index.html","accession_number":"0001493152-26-029160","cik":"0001538495","ticker":"ETST","issuer_name":"Earth Science Tech, Inc.","edgar_url":"https://www.sec.gov/Archives/edgar/data/1538495/0001493152-26-029160-index.html","primary_entity_key":"0001538495","primary_entity_name":"Earth Science Tech, Inc."},"word_count":1952,"has_tables":true,"body_markdown":"**ITEM\n1. BUSINESS**\n\n \n\n**BUSINESS\nBACKGROUND AND OVERVIEW**\n\n** **\n\nEarth\nScience Tech, Inc. (“ETST” or the “Company”) was incorporated under the laws of the State of Nevada on April\n23, 2010, and subsequently redomiciled to the State of Florida on June 27, 2022, headquartered in Miami, Florida.\n\n \n\nETST\noperates as a diversified holding company focused on the health and wellness sector. The Company’s principal operating strategy\nis to build a vertically integrated healthcare platform that combines compounding pharmacy operations, telemedicine platforms, clinical\nsupport, and patient fulfillment. The Company’s healthcare operations are supported by investments in real estate and\nasset management activities and a consumer products business.\n\n \n\nThe\ncore of the Company’s value proposition is the seamless integration of patient care, from consultation to fulfillment. This is\nachieved through the synergy of specialized subsidiaries. The Company’s primary operating businesses include:\n\n \n\n**Business\n/ Entity**\n \n**Description**\n\n**RxCompoundStore.com,\nLLC (“RxCompound”)**\n \nMiami-based\nlicensed compounding pharmacy providing sterile and non-sterile medications in multiple U.S. states and Puerto Rico.\n\n \n \n \n\n**Mister\nMeds, LLC (“MisterMeds”)**\n \nAbilene,\nTexas compounding pharmacy that received full compounding licensure in March 2025; includes sterile compounding capabilities and\nhazardous drug handling.\n\n \n \n \n\n**Peaks\nCurative LLC(“Peaks”)**\n \nTelemedicine\nreferral platform offering asynchronous consultations for compounded medications prepared by RxCompound and Mister Meds.\n\n \n \n \n\n**DOConsultation.com\nLLC (“DOC”)**\n \nTelehealth\nbrand focused on home-based therapies and virtual consultations, with prescriptions fulfilled by the Company’s pharmacies.\n\n \n \n \n\n**Las\nVillas Health Care (“Villas”)**\n \nBrick-and-mortar\nhealthcare facility designed to expand patient access.\n\n \n \n \n\n**Avenvi\nLLC**\n \nReal\nestate and asset management arm; supports healthcare infrastructure and manages the Company’s share repurchase program.\n\n \n \n \n\n**MagneChef**\n \n80%-owned\ndirect-to-consumer kitchen products brand using proprietary intellectual property.\n\n \n\n4\n\n \n\n \n\nAs\nof the date of this filing, the Company has aggressively expanded its state licensure, allowing its pharmacy and telehealth services\nto reach a near-national footprint.\n\n \n\nStrategic\nAsset Management & Infrastructure\n\n \n\nAvenvi\nserves as the Company’s real estate and asset management arm. Avenvi provides the critical physical infrastructure required for\nthe Company’s expanding pharmacy operations and manages ETST’s real estate-related investment strategies. Additionally, Avenvi\nplays a pivotal role in the Company’s disciplined capital allocation strategy, which focuses on non-dilutive growth and the management\nof the Company’s share repurchase initiatives.\n\n \n\nDiversified\nHoldings & Innovation\n\n \n\nThe\nCompany maintains a 80% stake in MagneChef, a direct-to-consumer brand that leverages proprietary intellectual property to market innovative\nkitchen products. This subsidiary provides a diversified revenue stream and demonstrates the Company’s ability to commercialize\nunique IP across different consumer segments.\n\n \n\nCapital\nStructure & Governance Focus\n\n \n\nA\ndefining pillar of the Company’s current strategy is fiscal discipline and shareholder alignment. Since the final share issuance\nin October 2023, management has focused exclusively on non-dilutive financing, significant reductions in authorized common stock (from\n750 million to 300 million), and a robust share buyback program. This strategy is underpinned by a high level of insider ownership, with\nmanagement holding approximately 48% of outstanding shares, the vast majority of which were purchased.\n\n \n\n5\n\n \n\n \n\n**PRODUCT\nREGULATION**\n\n \n\nThe\nCompany’s operations are subject to extensive federal, state, and local laws and regulations governing the compounding, distribution,\nand delivery of pharmaceutical products, as well as the provision of telemedicine services and sale of consumer goods.\n\n \n\nPharmacy\nRegulation\n\n \n\nOur\npharmacy subsidiaries, RxCompound and Mister Meds are primarily governed by Section 503A of the Federal Food, Drug, and Cosmetic Act\n(FDCA). Unlike large-scale manufacturers, our compounding pharmacies are regulated predominantly by individual State Boards of Pharmacy.\nWe maintain strict adherence to United States Pharmacopeia (USP) standards, specifically USP <795> for non-sterile preparations\nand USP <797> for sterile preparations. These standards dictate the environmental controls, rigorous testing protocols, and quality\nassurance measures necessary to ensure the integrity and potency of customized medications dispensed upon receipt of patient-specific\nprescriptions. As we expand our geographical footprint, we continuously monitor state-level licensure requirements to ensure compliant\ndispensing across all active jurisdictions.\n\n \n\nTelemedicine\nRegulation\n\n \n\nThe\nCompany’s digital health operations, facilitated through Peaks, DOC and our integrated pharmacy platforms, navigate a multifaceted\nlandscape of federal and state laws. We currently operate under the Fourth Temporary Extension of COVID-19 Telemedicine Flexibilities,\nwhich permits our affiliated healthcare providers to prescribe Schedule II-V controlled substances via telemedicine through December\n31, 2026, without a prior in-person evaluation. Furthermore, our business structures are meticulously designed to comply with state Corporate\nPractice of Medicine (CPOM) doctrines, maintaining a clear separation between the Company’s administrative support and the independent\nclinical judgment of licensed professionals. We also maintain comprehensive data security protocols to ensure all patient interactions\nand records remain compliant with the Health Insurance Portability and Accountability Act (HIPAA).\n\n \n\nSpecialized\nClinical Services and Wellness\n\n \n\nVillas\nrepresents the Company’s commitment to personalized, in-person clinical care.\nThis subsidiary is subject to state-specific clinical licensure and must meet the stringent standards set by regional Departments of\nHealth for physical wellness facilities. In addition to medical board oversight, Villas adheres to Occupational Safety and Health Administration\n(OSHA) standards regarding the management of clinical environments and the handling of medical waste. To ensure equitable access and\ninformed consent, the facility maintains rigorous language-access protocols, ensuring all clinical documentation and patient disclosures\nmeet federal standards for accuracy and cultural competence.\n\n \n\nAsset\nManagement and Capital Allocation\n\n \n\nAvenvi\nserves as the strategic infrastructure and asset management arm of the Company, providing the logistical foundation for our pharmacy\noperations while overseeing critical financial initiatives. In its capacity managing the Company’s $10 million share repurchase\nprogram, Avenvi operates under the safe harbor provisions of SEC Rule 10b-18. This requires unwavering adherence to specific volume,\nprice, and timing constraints designed to maintain market integrity and prevent manipulative trading practices. Additionally, Avenvi\nmanages our physical properties to ensure compliance with local zoning ordinances and the specialized environmental codes required for\nhigh-capacity compounding laboratories.\n\n \n\nConsumer\nProduct Regulation\n\n \n\nMagneChef,\nour 80%-owned consumer brand, operates under the regulatory purview of agencies governing household goods and intellectual property.\nOur products are subject to the safety standards enforced by the Consumer Product Safety Commission (CPSC) and the advertising substantiation\nrequirements of the Federal Trade Commission (FTC). Given that MagneChef’s value is derived from its proprietary magnetic heat-conduction\ntechnology, we prioritize the maintenance and protection of our patent portfolio through regular filings with the U.S. Patent and Trademark\nOffice (USPTO). This ensures that our unique innovations remain legally protected as we scale our direct-to-consumer presence.\n\n \n\n6\n\n \n\n \n\nThe\nCompany maintains internal compliance protocols and engages legal and regulatory consultants as needed to ensure adherence to applicable\nlaws and industry standards across all subsidiaries and operating areas.\n\n \n\n**Marketing**\n\n \n\nThe\nCompany employs a multi-channel marketing and sales strategy designed to leverage the vertical integration of our healthcare and consumer\nportfolios. Our approach focuses on high-conversion digital acquisition, strategic demographic targeting, and the utilization of proprietary\ntechnology to drive patient retention and brand loyalty across our diverse subsidiaries. By maintaining control over both the clinical\nconsultation and the pharmaceutical fulfillment process, we are able to execute marketing campaigns that offer a seamless, high-value\nconsumer experience while maintaining a lower cost of customer acquisition (CAC) compared to non-integrated competitors.\n\n \n\nHealth\nand Wellness\n\n \n\nOur\nmarketing efforts for RxCompound, Mister Meds, and Peaks are centered on digital-first strategies that prioritize search engine optimization\n(SEO), targeted social media engagement, and performance-based digital advertising. We focus on educating consumers about the clinical\nbenefits of customized compounding and the convenience of our asynchronous telemedicine platforms. For Mister Meds, our strategy specifically\ntargets high-demand therapeutic areas, utilizing data-driven insights to reach patients in licensed jurisdictions, such as Texas, where\nwe have established a strong dispensing presence. Peaks and DOC serve as a primary funnel for these operations, utilizing a streamlined\nuser interface to convert digital traffic into long-term patients through a frictionless onboarding and consultation process.\n\n \n\nOur strategy for Villas emphasizes community-based outreach, culturally relevant digital content, and targeted traditional media to build\ntrust within its niche market. By focusing on specialized wellness and sexual health—areas often underserved by traditional healthcare\nproviders—Villas attracts a dedicated patient base that values personalized, in-person clinical support. This subsidiary also benefits\nfrom cross-promotional opportunities within the broader ETST ecosystem, directing patients to our digital pharmacy services for ongoing\nprescription fulfillment.\n\n \n\nReal\nEstate and Asset Management Division\n\n \n\nAvenvi\nhas no marketing activities as it serves as foundation for managing the Company’s assets.\n\n \n\nConsumer\nProducts\n\n \n\nThe\nmarketing strategy for MagneChef leverages the brand’s proprietary intellectual property to differentiate its products in the competitive\ndirect-to-consumer (DTC) kitchenware market. We utilize a combination of influencer partnerships, video-based social media demonstrations,\nand e-commerce optimization to showcase the unique benefits of our magnetic heat-conduction technology. By focusing on the “innovative\nkitchen” segment, MagneChef targets a demographic that values efficiency and high-performance technology, allowing us to maintain\npremium pricing and drive brand recognition independent of our healthcare operations.\n\n \n\n7\n\n \n\n \n\nThe\nCompany adheres to all applicable advertising regulations across its marketing channels, including those governing the promotion of health-related\nproducts and services. Marketing compliance is reviewed internally and through third-party consultants to reduce regulatory risk and\nensure alignment with corporate messaging.\n\n \n\nStrategic\nBrand Positioning and Retention\n\n \n\nCentral\nto the Company’s overall marketing success is our focus on patient and customer retention. We utilize Customer Relationship\nManagement (CRM) systems at each of our subsidiaries to provide personalized follow-ups, medication reminders, and targeted wellness content.\nThis holistic approach not only increases the lifetime value (LTV) of each customer but also reinforces ETST’s position as a comprehensive\nhealth and wellness provider. Furthermore, our commitment to social responsibility through the ESF enhances our brand equity, demonstrating\nto investors and consumers alike that the Company is dedicated to healthcare accessibility and community support.\n\n \n\n**COMPETITION**\n\n \n\nThe\nCompany operates in a highly competitive and fragmented landscape across several major sectors, including pharmaceutical compounding,\ntelemedicine, clinical wellness, real estate asset management, and direct-to-consumer goods. We compete with a diverse array of market\nparticipants, ranging from large, established multinational corporations with significantly greater financial resources to specialized,\nniche firms and emerging technology-driven startups. Our ability to compete effectively is predicated on our unique vertical integration,\nwhich allows us to offer a value added healthcare experience.\n\n \n\nHealth\nand wellness\n\n \n\nIn\nthe pharmaceutical compounding and telemedicine sectors the Company faces intense competition from both traditional brick-and-mortar\npharmacies and a rapidly expanding cohort of digital health platforms. The Company competes with established pharmacy chains, which have increasingly integrated specialty pharmacy and\ndigital prescription services into their models. In the telemedicine space, we compete with well-capitalized platforms as well as specialized sexual health and wellness platforms.\nOur competitive advantage in this sector lies in our ability to seamlessly link the clinical consultation with our proprietary pharmacy\nfulfillment, ensuring higher quality control and more responsive patient care than platforms that rely on third-party pharmacy networks.\n\n \n\nReal\nEstate and Asset Management\n\n \n\nAvenvi\nhas no natural competitors as it serves as the foundation for managing the Company’s assets.\n\n \n\nConsumer\nProduct Innovation\n\n \n\nMagneChef\noperates in the highly saturated direct-to-consumer (DTC) kitchenware and household goods market. We compete with established premium\ncookware brands, as well as high-growth DTC entrants. These\ncompetitors often have larger marketing budgets and established retail partnerships. MagneChef’s competitive strategy focuses on\nthe commercialization of its proprietary magnetic heat-conduction technology, allowing us to market a unique value proposition centered\non efficiency and technological innovation. By targeting the “innovative kitchen” segment through digital-first performance\nmarketing, we aim to capture market share from consumers seeking high-performance alternatives to traditional cookware.\n\n \n\n8\n\n \n\n \n\nAcross\nall business segments, the Company’s ability to compete effectively depends on its continued investment in operational scalability,\nregulatory compliance, customer service, and innovation. The Company expects competitive pressures to intensify as regulatory frameworks\nevolve, and new market entrants emerge.\n\n \n\n**EMPLOYEES**\n\n \n\nAs\nof March 31, 2026, the Company has 77 employees. None of our employees are represented by a union or covered by a collective bargaining\nagreement. We have not experienced any work stoppages, and we consider our relationship with our employees to be good."}