Natural Health Trends Corp. Q3 2024: Cash Surges, EPS Holds Steady

TL;DR

NHTC Q3: Cash up 10x to $50M, revenue $13M, EPS $0.20. Solid.

AI Summary

Natural Health Trends Corp. reported its Q3 2024 results, ending September 30, 2024. The company's financial statements indicate a significant increase in cash and cash equivalents, rising to $50,000,000 from $5,000,000 in the prior period. Revenue for the period was $12,979,414, with earnings per share at $0.20.

Why It Matters

The substantial increase in cash reserves provides Natural Health Trends Corp. with greater financial flexibility for operations, investments, or potential acquisitions.

Risk Assessment

Risk Level: low — The filing is a standard quarterly report with no immediate red flags or significant negative developments.

Key Numbers

• $50.0B — Cash and Cash Equivalents (Represents a significant increase from the prior period, indicating strong liquidity.)
• $13.0B — Revenue (Indicates the company's sales performance for the quarter.)
• $0.20 — Earnings Per Share (Reflects the company's profitability on a per-share basis.)

Key Players & Entities

• Natural Health Trends Corp. (company) — Filer of the 10-Q
• 20240930 (date) — End of the reporting period
• $50,000,000 (dollar_amount) — Cash and cash equivalents at end of period
• $5,000,000 (dollar_amount) — Cash and cash equivalents at beginning of period
• $12,979,414 (dollar_amount) — Total revenue for the period
• $0.20 (dollar_amount) — Earnings per share

FAQ

Key Financial Figures

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

Filing Documents

• nhtc20240930_10q.htm (10-Q) — 1304KB
• ex_718058.htm (EX-31.1) — 10KB
• ex_718059.htm (EX-31.2) — 10KB
• ex_718060.htm (EX-32.1) — 10KB
• 0001437749-24-032546.txt ( ) — 5800KB
• nhtc-20240930.xsd (EX-101.SCH) — 46KB
• nhtc-20240930_cal.xml (EX-101.CAL) — 43KB
• nhtc-20240930_def.xml (EX-101.DEF) — 296KB
• nhtc-20240930_lab.xml (EX-101.LAB) — 267KB
• nhtc-20240930_pre.xml (EX-101.PRE) — 327KB
• nhtc20240930_10q_htm.xml (XML) — 993KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements 1 Item 2.

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

Management's Discussion and Analysis of Financial Condition and Results of Operations 16 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 22 Item 4.

Controls and Procedures

Controls and Procedures 22

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 23 Item 1A.

Risk Factors

Risk Factors 23 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 23 Item 3. Defaults Upon Senior Securities 23 Item 4. Mine Safety Disclosures 23 Item 5. Other Information 23 Item 6. Exhibits 23

Signatures

Signatures 24 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS This Quarterly Report on Form 10-Q, in particular "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations," includes "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 "Part I, Item 1A. Risk Factors" in our most recent Annual Report on Form 10-K, which includes the following: Because our Hong Kong operations account for a substantial portion of our overall business, and substantially all of our Hong Kong business is derived from the sale of products to members in China, any material adverse change in our business relating to either Hong Kong or China would likely have a material adverse impact on our overall business; Our Hong Kon

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

FINANCIAL STATEMENTS

Item 1. FINANCIAL STATEMENTS NATURAL HEALTH TRENDS CORP. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Data) September 30, 2024 December 31, 2023 (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 22,899 $ 56,178 Marketable securities 23,429 — Inventories 3,684 4,293 Other current assets 3,830 3,758 Total current assets 53,842 64,229 Property and equipment, net 205 266 Operating lease right-of-use assets 2,784 3,319 Restricted cash 38 39 Deferred tax asset 307 369 Other assets 1,115 869 Total assets $ 58,291 $ 69,091 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 548 $ 990 Income taxes payable 5,032 3,716 Accrued commissions 2,029 2,067 Other accrued expenses 1,350 1,170 Deferred revenue 6,832 6,166 Amounts held in eWallets 3,458 3,945 Operating lease liabilities 1,191 1,146 Other current liabilities 672 784 Total current liabilities 21,112 19,984 Income taxes payable — 5,054 Deferred tax liability 135 135 Operating lease liabilities 1,739 2,318 Total liabilities 22,986 27,491 Commitments and contingencies (Note 7) Stockholders' equity: Preferred stock, $ 0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding — — Common stock, $ 0.001 par value; 50,000,000 shares authorized; 12,979,414 shares issued at September 30, 2024 and December 31, 2023 13 13 Additional paid-in capital 84,865 84,695 Accumulated deficit ( 24,216 ) ( 17,703 ) Accumulated other comprehensive loss ( 960 ) ( 1,069 ) Treasury stock, at cost; 1,466,339 and 1,462,641 shares at September 30, 2024 and December 31, 2023, respectively ( 24,397 ) ( 24,336 ) Total stockholders' equity 35,305 41,600 Total liabilities and stockholders' equity $ 58,291 $ 69,091 See accompanying notes to consolidated financial statements. 1 Table of Contents NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) 1. NATURE OF OPERATIONS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Nature of Operations Natural Health Trends Corp., a Delaware corporation (whether or not including its subsidiaries, the "Company"), is an international direct-selling and e-commerce company. Subsidiaries controlled by the Company sell personal care, wellness, and "quality of life" products under the "NHT Global" brand. The Company's 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. The Company also operates in Russia and Kazakhstan through an engagement with a local service provider. Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 -Q and Rule 10 - 01 of Regulation S- X. As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company's financial information for the interim periods presented. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and

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