Natural Health Trends Corp. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Natural Health Trends Corp. reported $12.98 million in revenue and $1.46 million in net income for fiscal year 2023.</b>

AI Summary

NATURAL HEALTH TRENDS CORP (NHTC) filed a Annual Report (10-K) with the SEC on February 28, 2024. Revenue for the fiscal year ending December 31, 2023, was $12,979,414. Net income for the fiscal year ending December 31, 2023, was $1,462,641. Earnings per share (EPS) for the fiscal year ending December 31, 2023, was $0.20. Total assets as of December 31, 2023, were $50,000,000. Total debt as of December 31, 2023, was $0.

Why It Matters

For investors and stakeholders tracking NATURAL HEALTH TRENDS CORP, this filing contains several important signals. The company's revenue is heavily reliant on product sales delivered to members in China, making it susceptible to geopolitical and economic factors affecting that region. The filing details the company's financial position, including assets, liabilities, and equity, providing a snapshot of its financial health as of year-end 2023.

Risk Assessment

Risk Level: — NATURAL HEALTH TRENDS CORP shows moderate risk based on this filing. The company's significant revenue concentration from sales delivered to China exposes it to substantial market and regulatory risks specific to that region.

Analyst Insight

Investors should monitor sales performance in China and any regulatory changes impacting cross-border e-commerce or health product sales in the region.

Financial Highlights

revenue

12,979,414

total Assets

50,000,000

total Debt

0

net Income

1,462,641

eps

0.20

Key Numbers

• 12,979,414 — Revenue (Fiscal year ended December 31, 2023)
• 1,462,641 — Net Income (Fiscal year ended December 31, 2023)
• 0.20 — EPS (Fiscal year ended December 31, 2023)
• 50,000,000 — Total Assets (As of December 31, 2023)
• 0 — Total Debt (As of December 31, 2023)

Key Players & Entities

• NATURAL HEALTH TRENDS CORP (company) — Filer
• China (location) — Substantially all of our Hong Kong revenues are derived from the sale of products that are delivered to members in China.
• 2023-12-31 (date) — Fiscal year end
• 2024-02-28 (date) — Filing date

FAQ

Risk Factors

• Dependence on China Market [high — market]: Substantially all of the company's Hong Kong revenues are derived from product sales delivered to members in China, creating significant market concentration risk.

Industry Context

Natural Health Trends Corp. operates in the wholesale-nondurable goods sector, with a business model heavily reliant on direct sales and distribution channels.

Regulatory Implications

The company's operations and revenue are significantly tied to the Chinese market, making it subject to the regulatory environment and economic conditions within China.

What Investors Should Do

1. Monitor sales performance and regulatory changes in China.
2. Analyze the company's product delivery and member engagement strategies in its key markets.
3. Evaluate the company's financial health and debt levels for future investment decisions.

Key Dates

• 2023-12-31: Fiscal Year End — Reporting period for financial results
• 2024-02-28: Filing Date — Date the 10-K was submitted to the SEC

Glossary

Fair Value Measurements

A framework for measuring the fair value of assets and liabilities using observable market data. (Relevant for understanding how the company values its financial instruments.)

Year-Over-Year Comparison

The 2023 10-K provides updated financial figures for the fiscal year ending December 31, 2023, compared to the previous fiscal year.

Key Financial Figures

• $0.001 — ich registered Common Stock, par value $0.001 per share NHTC The NASDAQ Stock Mar

Filing Documents

• nhtc20231231_10k.htm (10-K) — 1325KB
• ex_595117.htm (EX-21.1) — 16KB
• ex_595118.htm (EX-31.1) — 11KB
• ex_595119.htm (EX-31.2) — 11KB
• ex_595120.htm (EX-32.1) — 11KB
• ex_615183.htm (EX-97.1) — 29KB
• 0001437749-24-005850.txt (&nbsp;) — 6541KB
• nhtc-20231231.xsd (EX-101.SCH) — 54KB
• nhtc-20231231_cal.xml (EX-101.CAL) — 60KB
• nhtc-20231231_def.xml (EX-101.DEF) — 372KB
• nhtc-20231231_lab.xml (EX-101.LAB) — 339KB
• nhtc-20231231_pre.xml (EX-101.PRE) — 409KB
• nhtc20231231_10k_htm.xml (XML) — 975KB

Business

Business 1 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 26 Item 1C. Cybersecurity 26 Item 2.

Properties

Properties 26 Item 3.

Legal Proceedings

Legal Proceedings 26 Item 4. Mine Safety Disclosures 26 PART II Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 27 Item 6. [Reserved] 27 Item 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 28 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 35 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 36 Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosure 59 Item 9A.

Controls and Procedures

Controls and Procedures 59 Item 9B. Other Information 59 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 59 PART III Item 10. Directors, Executive Officers and Corporate Governance 60 Item 11.

Executive Compensation

Executive Compensation 60 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 60 Item 13. Certain Relationships and Related Transactions, and Director Independence 60 Item 14. Principal Accountant Fees and Services 60 PART IV Item 15. Exhibits and Financial Statement Schedules 61 Item 16. Form 10-K Summary 61

Signatures

Signatures 62 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Annual Report on Form 10-K, in particular "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations," and "Item 1. Business," include "forward-looking statements" within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). When used in this report, the words or phrases "will likely result," "expect," "intend," "will continue," "anticipate," "estimate," "project," "believe" and similar expressions are intended to identify "forward-looking statements" within the meaning of the Exchange Act. These statements represent our expectations or beliefs concerning, among other things, future revenue, earnings, growth strategies, new products and initiatives, future operations and operating results, and future business and market opportunities. Forward-looking statements in this report speak only as of the date hereof, and forward-looking statements in documents incorporated by reference speak only as of the date of those documents. We undertake no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise, except as required by law. We caution and advise readers that these statements are based on certain assumptions that may not be realized and involve risks and uncertainties that could cause actual results to differ materially from the expectations and beliefs contained herein. For a summary of certain risks related to our business, see "Item 1A. Risk Factors" in this report. Additional factors that could cause actual results to differ materially from our forward-looking statements are set forth in this report, including under the heading "Management's Discussion and Analysis of Financial Condition and Results of Operations" and in our financial statements and the related notes. Unless otherwise noted, the terms "we," "our," "us," and "Company," refer to Natural Health Trends Cor

BUSINESS

Item 1. BUSINESS Overview of Business Natural Health Trends Corp. is an international direct-selling and e-commerce company. Subsidiaries controlled by us sell personal care, wellness, and "quality of life" products under the "NHT Global" brand. Our wholly-owned subsidiaries have an active physical presence in the following markets: the Americas, which consists of the United States, Canada, Cayman Islands, Mexico and Peru; Greater China, which consists of Hong Kong, Taiwan and China; Southeast Asia, which consists of Malaysia, Singapore and Thailand; South Korea; Japan; India; and Europe. We also operate in Russia and Kazakhstan through our engagement with a local service provider. Most of our order volume, particularly in our Hong Kong subsidiary, is for personal consumption through existing members' referrals. Our objectives are to enrich the lives of our customers and enable our members to benefit financially from the sale of our products. We are incorporated in Delaware and maintain our corporate headquarters in Hong Kong. Our common stock is currently traded on the NASDAQ Capital Market under the symbol "NHTC." Available Information Our website is located at www.naturalhealthtrendscorp.com. Our Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to such reports are available, free of charge, on our website as soon as reasonably practicable after we file electronically such material with, or furnish it to, the United States Securities and Exchange Commission, or SEC. The information provided on our website should not be considered part of this report. The SEC maintains an internet website at http://www.sec.gov that contains reports, proxy and information statements, and other information regarding issuers that file electronically with the SEC. Our Principal Products We offer a line of "NHT Global" branded products in six distinct categories: wellness, herbal, beauty, lifestyle, home, and daily. Th

View Full Filing

View this 10-K filing on SEC EDGAR