Natural Health Trends Corp. | ||||
(Exact Name of Registrant as Specified in Its Charter) | ||||
Delaware | ||||
(State or Other Jurisdiction of Incorporation) | ||||
0-26272 | 59-2705336 | |||
(Commission File Number) | (IRS Employer Identification No.) | |||
2603 Oak Lawn Avenue, 5th Floor, Dallas, Texas | 75219 | |||
(Address of Principal Executive Offices) | (Zip Code) | |||
(972) 241-4080 | ||||
(Registrant’s Telephone Number, Including Area Code) |
NATURAL HEALTH TRENDS CORP.
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By:
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/s/ Gary C. Wallace | ||
Gary C. Wallace
General Counsel
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December 31, 2010
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September 30, 2011
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December 31, 2011
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(Unaudited)
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ASSETS
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Current assets:
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Cash and cash equivalents
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$ | 648 | $ | 1,727 | $ | 1,617 | ||||||
Restricted cash
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422 | 496 | 494 | |||||||||
Accounts receivable
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105 | 91 | 93 | |||||||||
Inventories, net
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751 | 1,105 | 1,089 | |||||||||
Other current assets
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639 | 576 | 537 | |||||||||
Total current assets
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2,565 | 3,995 | 3,830 | |||||||||
Property and equipment, net
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203 | 131 | 68 | |||||||||
Goodwill
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1,764 | 1,764 | 1,764 | |||||||||
Intangible assets, net
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200 | – | – | |||||||||
Restricted cash
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225 | 217 | 220 | |||||||||
Other assets
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406 | 237 | 241 | |||||||||
Total assets
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$ | 5,363 | $ | 6,344 | $ | 6,123 | ||||||
LIABILITIES AND STOCKHOLDERS’ DEFICIT
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Current liabilities:
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Accounts payable
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$ | 3,115 | $ | 2,452 | $ | 2,208 | ||||||
Income taxes payable
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330 | 325 | 11 | |||||||||
Accrued distributor commissions
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723 | 1,031 | 1,177 | |||||||||
Other accrued expenses
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1,792 | 1,086 | 1,471 | |||||||||
Deferred revenue
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1,029 | 1,458 | 967 | |||||||||
Deferred tax liability
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178 | 177 | 148 | |||||||||
Advance from related party
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4 | 123 | – | |||||||||
Other current liabilities
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1,013 | 1,046 | 950 | |||||||||
Total liabilities
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8,184 | 7,698 | 6,932 | |||||||||
Commitments and contingencies
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Stockholders’ deficit:
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Natural Health Trends stockholders’ deficit:
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Preferred stock
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124 | 124 | 124 | |||||||||
Common stock
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11 | 11 | 11 | |||||||||
Additional paid-in capital
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80,414 | 80,471 | 80,493 | |||||||||
Accumulated deficit
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(83,643 | ) | (81,813 | ) | (81,338 | ) | ||||||
Accumulated other comprehensive income (loss):
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Foreign currency translation adjustments
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366 | (39 | ) | (99 | ) | |||||||
Total Natural Health Trends stockholders’ deficit
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(2,728 | ) | (1,246 | ) | (809 | ) | ||||||
Noncontrolling interest
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(93 | ) | (108 | ) | – | |||||||
Total stockholders’ deficit
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(2,821 | ) | (1,354 | ) | (809 | ) | ||||||
Total liabilities and stockholders’ deficit
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$ | 5,363 | $ | 6,344 | $ | 6,123 |
Three Months Ended December 31,
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Year Ended December 31,
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2010
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2011
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2010
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2011
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(Unaudited)
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Net sales
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$ | 6,192 | $ | 8,217 | $ | 23,576 | $ | 31,162 | ||||||||
Cost of sales
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1,894 | 2,130 | 6,969 | 8,172 | ||||||||||||
Gross profit
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4,298 | 6,087 | 16,607 | 22,990 | ||||||||||||
Operating expenses:
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Distributor commissions
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2,358 | 3,215 | 8,671 | 11,857 | ||||||||||||
Selling, general and administrative expenses
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2,216 | 2,573 | 9,802 | 9,052 | ||||||||||||
Depreciation and amortization
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246 | 17 | 1,213 | 298 | ||||||||||||
Total operating expenses
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4,820 | 5,805 | 19,686 | 21,207 | ||||||||||||
Income (loss) from operations
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(522 | ) | 282 | (3,079 | ) | 1,783 | ||||||||||
Other income (expense), net:
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Gain (loss) on foreign exchange
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103 | (129 | ) | 524 | 226 | |||||||||||
Interest income
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2 | 2 | 9 | 5 | ||||||||||||
Interest expense
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(7 | ) | (2 | ) | (18 | ) | (16 | ) | ||||||||
Other
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(1 | ) | 117 | 68 | 129 | |||||||||||
Total other income (expense), net
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97 | (12 | ) | 583 | 344 | |||||||||||
Income (loss) before income taxes
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(425 | ) | 270 | (2,496 | ) | 2,127 | ||||||||||
Income tax benefit
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(39 | ) | (334 | ) | (27 | ) | (298 | ) | ||||||||
Net income (loss)
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(386 | ) | 604 | (2,469 | ) | 2,425 | ||||||||||
Net (income) loss attributable to the noncontrolling interest
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18 | (129 | ) | 21 | (120 | ) | ||||||||||
Net income (loss) attributable to Natural Health Trends
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(368 | ) | 475 | (2,448 | ) | 2,305 | ||||||||||
Preferred stock dividends
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(4 | ) | (4 | ) | (16 | ) | (16 | ) | ||||||||
Net income (loss) attributable to common stockholders of Natural Health Trends
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$ | (372 | ) | $ | 471 | $ | (2,464 | ) | $ | 2,289 | ||||||
Income (loss) per share of Natural Health Trends – basic and diluted
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$ | (0.04 | ) | $ | 0.04 | $ | (0.23 | ) | $ | 0.21 | ||||||
Weighted-average number of shares outstanding – basic
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10,588 | 10,806 | 10,507 | 10,704 | ||||||||||||
Weighted-average number of shares outstanding – diluted
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10,588 | 11,074 | 10,507 | 10,825 |