Fitlife Brands Reports Q2 2024 Results Amid Acquisitions

TL;DR

Fitlife Brands 10-Q filed: Q2 2024 results out, shows impact of recent MusclePharm & Mimis Rock acquisitions.

AI Summary

Fitlife Brands, Inc. filed its 10-Q for the period ending June 30, 2024. The company reported financial results for the second quarter and the first half of 2024. Key events include the acquisition of MusclePharm Corporation's assets on October 10, 2023, and the acquisition of Mimis Rock Corp. on February 28, 2023. A subsequent event on July 19, 2024, is also noted.

Why It Matters

This filing provides insight into Fitlife Brands' financial performance and strategic acquisitions, which could impact its market position and future growth.

Risk Assessment

Risk Level: medium — The company has undergone significant acquisitions, which carry inherent integration and financial risks.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the financial period covered by the report.)
• 2024-08-14 — Filing Date (The date the 10-Q was officially submitted to the SEC.)
• 2023-10-10 — MusclePharm Asset Acquisition Date (Marks a significant strategic acquisition for the company.)
• 2023-02-28 — Mimis Rock Corp Acquisition Date (Another key acquisition impacting the company's structure.)

Key Players & Entities

• Fitlife Brands, Inc. (company) — Filer of the 10-Q
• MusclePharm Corporation (company) — Assets acquired on October 10, 2023
• Mimis Rock Corp (company) — Acquired on February 28, 2023
• 20240630 (date) — End of the reporting period
• 20240814 (date) — Filing date

FAQ

Key Financial Figures

• $0.01 — registered Common Stock, par value $0.01 per share FTLF The Nasdaq Capital M

Filing Documents

• ftlf20240630_10q.htm (10-Q) — 1047KB
• ex_711571.htm (EX-31.1) — 13KB
• ex_711572.htm (EX-31.2) — 13KB
• ex_711573.htm (EX-32.1) — 4KB
• ex_711574.htm (EX-32.2) — 4KB
• 0001437749-24-026562.txt ( ) — 4537KB
• ftlf-20240630.xsd (EX-101.SCH) — 36KB
• ftlf-20240630_cal.xml (EX-101.CAL) — 37KB
• ftlf-20240630_def.xml (EX-101.DEF) — 284KB
• ftlf-20240630_lab.xml (EX-101.LAB) — 247KB
• ftlf-20240630_pre.xml (EX-101.PRE) — 306KB
• ftlf20240630_10q_htm.xml (XML) — 535KB

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION Item 1.

Financial Statements

Financial Statements Condensed Consolidated Balance Sheets (unaudited) 1 Condensed Consolidated Statements of Income and Comprehensive Income (unaudited) 2 Condensed Consolidated Statements of Stockholders' Equity (unaudited) 3 Condensed Consolidated Statements of Cash Flows (unaudited) 4 Notes to Condensed Consolidated Financial Statements (unaudited) 5 Item 2. Management's Discussion & Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 25 Item 4.

Controls and Procedures

Controls and Procedures 26

- OTHER INFORMATION

PART II - OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 27 Item 1A.

Risk Factors

Risk Factors 27 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 27 Item 3. Defaults Upon Senior Securities 27 Item 5. Other Information 27 Item 6. Exhibits 27 Special Note Regarding Forward-Looking Statements This Quarterly Report on Form 10-Q ( " Quarterly Report " ), including " Management ' s Discussion and Analysis of Financial Condition and Results of Operations " in Item 2 of Part I of this Quarterly Report, includes forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by forward-looking statements. In some cases, you can identify forward-looking statements by terminology such as " may " , " should " , " expects " , " plans " , " anticipates " , " believes " , " estimates " , " predicts " , " potential " , " proposed " , " intended " , or " continue " or the negative of these terms or other comparable terminology. You should read statements that contain these words carefully, because they discuss our expectations about our future operating results or our future financial condition or state other " forward-looking " information. There may be events in the future that we are not able to accurately predict or control. Before you invest in our securities, you should be aware that the occurrence of any of the events described in this Quarterly Report could substantially harm our business, results of operations and financial condition, and that upon the occurrence of any of these events, the trading price of our securities could decline and you could lose all or part of your investment. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, growth rates, levels of activity, performance

FINANCIAL STATEMENTS

ITEM 1. FINANCIAL STATEMENTS FITLIFE BRANDS, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (In thousands, except per share data) June 30, 2024 December 31, 2023 (Unaudited) ASSETS: CURRENT ASSETS Cash and cash equivalents $ 3,680 $ 1,139 Restricted cash 55 759 Accounts receivable, net of allowance of doubtful accounts of $ 18 and $ 17 , respectively 2,498 2,046 Inventories, net of allowance for obsolescence of $ 69 and $ 162 , respectively 9,779 9,091 Sales tax receivable 111 1,019 Prepaid expense and other current assets 911 639 Total current assets 17,034 14,693 Property and equipment, net 106 137 Right of use asset 73 121 Intangibles, net of amortization of $ 134 and $ 113 , respectively 26,308 26,309 Goodwill 13,108 13,294 Deferred tax asset 682 792 TOTAL ASSETS $ 57,311 $ 55,346 LIABILITIES AND STOCKHOLDERS' EQUITY: CURRENT LIABILITIES: Accounts payable $ 4,309 $ 3,261 Accrued expense and other liabilities 1,082 1,026 Income taxes payable 1,844 892 Product returns 530 571 Term loan – current portion 4,500 4,500 Lease liability - current portion 58 87 Total current liabilities 12,323 10,337 Term loan, net of current portion and unamortized deferred finance costs 10,778 15,509 Long-term lease liability, net of current portion 25 51 Deferred tax liability 2,329 2,413 TOTAL LIABILITIES 25,455 28,310 STOCKHOLDERS' EQUITY: Preferred stock, $ 0.01 par value, 10,000 shares authorized, none outstanding as of June 30, 2024 and December 31, 2023 - - Common stock, $ 0.01 par value, 60,000 shares authorized; 4,598 issued and outstanding as of June 30, 2024 and December 31, 2023 46 46 Additional paid-in capital 30,902 30,699 Retained earnings (accumulated deficit) 1,371 ( 3,417 ) Foreign currency translation adjustment ( 463 ) ( 292 ) TOTAL STOCKHOLDERS' EQUITY 31,856 27,036 TOTAL LIABILITIES AND STOCK

View Full Filing

View this 10-Q filing on SEC EDGAR