Natures Sunshine Products Inc. Files 2023 Annual Report (10-K)

TL;DR

<b>Natures Sunshine Products Inc. has filed its 2023 10-K annual report detailing financial performance and operations.</b>

AI Summary

NATURES SUNSHINE PRODUCTS INC (NATR) filed a Annual Report (10-K) with the SEC on March 12, 2024. Natures Sunshine Products Inc. filed its 10-K report for the fiscal year ending December 31, 2023. The company is incorporated in Utah and operates in the Pharmaceutical Preparations industry (SIC 2834). The filing covers the period from January 1, 2023, to December 31, 2023. The report includes financial data for the fiscal years 2023, 2022, and 2021. Key executive compensation details and asset valuations are part of the filing.

Why It Matters

For investors and stakeholders tracking NATURES SUNSHINE PRODUCTS INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Natures Sunshine Products Inc.'s financial health, operational performance, and strategic initiatives for the fiscal year 2023, crucial for investors and stakeholders to assess the company's current standing and future prospects. The detailed financial statements and risk factors within this report are essential for understanding the company's market position, potential challenges, and compliance with regulatory requirements in the pharmaceutical preparations sector.

Risk Assessment

Risk Level: medium — NATURES SUNSHINE PRODUCTS INC shows moderate risk based on this filing. The company operates in the Pharmaceutical Preparations industry, which is subject to significant regulatory oversight and market competition, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to assess Natures Sunshine Products Inc.'s performance and outlook.

Key Numbers

• 2023-12-31 — Fiscal Year End (Reporting period)
• 2024-03-12 — Filing Date (Date of submission)
• 2023 — Fiscal Year (Primary reporting year)
• 2022 — Previous Fiscal Year (Comparative year)
• 2021 — Prior Fiscal Year (Comparative year)

Key Players & Entities

• NATURES SUNSHINE PRODUCTS INC (company) — Filer name
• 20231231 (date) — Fiscal year end
• 20240312 (date) — Filing date
• UT (location) — State of incorporation
• 2834 (industry) — Standard Industrial Classification
• 001-34483 (filing_id) — SEC file number
• LEHI (location) — Business address city
• 870327982 (tax_id) — IRS number

FAQ

Industry Context

Natures Sunshine Products Inc. operates within the pharmaceutical preparations industry, which is characterized by research, development, manufacturing, and marketing of drugs and medicines.

Regulatory Implications

Companies in the pharmaceutical preparations sector are subject to stringent regulations from bodies like the FDA concerning product safety, efficacy, and manufacturing practices.

What Investors Should Do

1. Review the detailed financial statements for revenue, net income, and other key performance indicators for FY2023.
2. Analyze the risk factors section to understand potential challenges and mitigation strategies for Natures Sunshine Products Inc.
3. Examine any disclosed executive compensation details to understand management incentives and remuneration.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-12: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year ending December 31, 2023, providing a baseline for future comparisons.

Key Financial Figures

• $13.65 — 8,821,320 based on the closing price of $13.65 as quoted by Nasdaq Capital Market on J

Filing Documents

• natr-20231231.htm (10-K) — 1615KB
• natr-12312023xex21subs.htm (EX-21) — 32KB
• natr-12312023xex231.htm (EX-23.1) — 4KB
• natr-12312023xex311.htm (EX-31.1) — 11KB
• natr-12312023xex312.htm (EX-31.2) — 11KB
• natr-12312023xex313.htm (EX-31.3) — 11KB
• natr-12312023xex321.htm (EX-32.1) — 6KB
• natr-12312023xex322.htm (EX-32.2) — 6KB
• natr-12312023xex323.htm (EX-32.3) — 6KB
• incentivecompensationrecov.htm (EX-97) — 26KB
• natr-20231231_g1.jpg (GRAPHIC) — 115KB
• natr-20231231_g2.jpg (GRAPHIC) — 78KB
• 0001628280-24-010625.txt (&nbsp;) — 8757KB
• natr-20231231.xsd (EX-101.SCH) — 56KB
• natr-20231231_cal.xml (EX-101.CAL) — 105KB
• natr-20231231_def.xml (EX-101.DEF) — 213KB
• natr-20231231_lab.xml (EX-101.LAB) — 670KB
• natr-20231231_pre.xml (EX-101.PRE) — 462KB
• natr-20231231_htm.xml (XML) — 1212KB

Business

Business 4 Item 1A.

Risk Factors

Risk Factors 10 Item 1B. Unresolved Staff Comments 19 Item 1C. Cybersecurity 20 Item 2.

Properties

Properties 20 Item 3.

Legal Proceedings

Legal Proceedings 20 Item 4. Mine Safety Disclosures 20 Part II. Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities 21 Item 6. [Reserved] 22 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 22 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 31 Item 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 35 Item 9. Change in and Disagreements With Accountants on Accounting and Financial Disclosure 64 Item 9A.

Controls and Procedures

Controls and Procedures 64 Item 9B. Other Information 68 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspection 68 Part III. Item 10. Directors, Executive Officers and Corporate Governance 68 Item 11.

Executive Compensation

Executive Compensation 68 Item 12.

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

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 68 Item 13. Certain Relationships and Related Transactions and Director Independence 68 Item 14. Principal Accountant Fees and Services 69 Part IV. Item 15. Exhibits and Financial Statement Schedules 70 Item 16. Form 10-K Summary 72

Signatures

Signatures 73 2 Table of Contents CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS Certain information included or incorporated herein by reference in this report may be deemed to be "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may include, but are not limited to, statements relating to our objectives, plans and strategies. All statements (other than statements of historical fact) that address activities, events or developments that we intend, expect, project, believe or anticipate will or may occur in the future are forward-looking statements. These statements are often characterized by terminology such as "believe," "hope," "may," "anticipate," "should," "intend," "plan," "will," "expect," "estimate," "project," "positioned," "strategy" and similar expressions, and are based on assumptions and assessments made in light of our experience and perception of historical trends, current conditions, expected future developments and other factors we believe to be appropriate. For example, information appearing under "Management's Discussion and Analysis of Financial Condition and Results of Operations" includes forward-looking statements. Forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties. Important factors that could cause actual results, developments and business decisions to differ materially from forward-looking statements are more fully described in this report, including the risks set forth under "Risk Factors" in Item 1A, but include the following: extensive government regulations to which the Company's products, business practices and manufacturing activities are subject; registration of products for sale in foreign markets, or difficulty or increased cost of importing products into foreign markets; legal challenges to the Company's direct selling program or to the classification of its independent cons

Business

Item 1. Business The Company We are a natural health and wellness company primarily engaged in the manufacturing and direct selling of nutritional and personal care products. We are a Utah corporation formed in 1976 with our principal place of business in Lehi, Utah, and sell our products to a sales force of independent consultants who use the products themselves or resells them to consumers. Business Segments We have four business segments (Asia, Europe, North America, and Latin America and Other) based primarily upon the geographic region where each segment operates, as well as the internal organization of our officers and their responsibilities. Each of the geographic segments operate under the Nature's Sunshine Products and Synergy WorldWide brands. The Latin America and Other segment includes our wholesale business in which we sell products to various locally-managed entities, independent of the Company, that we have granted distribution rights for the relevant market. Product Categories Our line of over 800 products includes several different product classifications, such as immune, cardiovascular, digestive, personal care, weight management and other general health products. We purchase herbs and other raw materials in bulk, and after rigorous quality control testing, we formulate, encapsulate, tablet or concentrate them, label and package them for shipment. Most of our products are manufactured at our facility in Spanish Fork, Utah. Contract manufacturers produce some of our products in accordance with our specifications and standards. We have implemented stringent quality control procedures to verify that our contract manufacturers have complied with our specifications and standards. A summary of the U.S. dollar amounts from the sale of general health, immune, cardiovascular, digestive, personal care and weight management products for the years ended December 31, 2023 and 2022, by business segment can be found in Note 12, "Operating Business S

View Full Filing

View this 10-K filing on SEC EDGAR