# EDGAR Filing Document

**Accession Number:** 0000912061
**File Stem:** 0001437749-23-002741
**Filing Date:** 2023-2
**Character Count:** 16914
**Document Hash:** 749d868470cd02ccc68491ec59cca85c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-23-002741.hdr.sgml**: 20230208

**ACCESSION NUMBER**: 0001437749-23-002741

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 14

**CONFORMED PERIOD OF REPORT**: 20230206

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20230208

**DATE AS OF CHANGE**: 20230208

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** NATURAL HEALTH TRENDS CORP
- **CENTRAL INDEX KEY:** 0000912061
- **STANDARD INDUSTRIAL CLASSIFICATION:** WHOLESALE-MISCELLANEOUS NONDURABLE GOODS [5190]
- **IRS NUMBER:** 592705336
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 001-36849
- **FILM NUMBER:** 23597279

**BUSINESS ADDRESS:**
- **STREET 1:** UNITS 1205-07, 12F, MIRA PLACE TOWER A
- **STREET 2:** 132 NATHAN ROAD, TSIMSHATSUI, KOWLOON
- **CITY:** HONG KONG
- **STATE:** K3
- **ZIP:** 00000
- **BUSINESS PHONE:** 852-3107-0800

**MAIL ADDRESS:**
- **STREET 1:** UNITS 1205-07, 12F, MIRA PLACE TOWER A
- **STREET 2:** 132 NATHAN ROAD, TSIMSHATSUI, KOWLOON
- **CITY:** HONG KONG
- **STATE:** K3
- **ZIP:** 00000

nhtc20221010_8k.htm

**UNITED STATES**

 **SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934**

February 6, 2023

Date of Report (Date of earliest event reported)

**NATURAL HEALTH TRENDS CORP.**

(Exact name of registrant as specified in its charter)

---

| | | |
|:---|:---|:---|
| Delaware | 001-36849 | 59-2705336 |
| (State or other jurisdiction of incorporation)  | (Commission File Number)  | (IRS Employer Identification No.) |

---

Units 1205-07, 12F, Mira Place Tower A, 132 Nathan Road, Tsimshatsui, Kowloon, Hong Kong

(Address of principal executive offices, including zip code)

+852-3107-0800

(Registrant's telephone number, including area code)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

☐ Emerging growth company

☐ If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

Securities registered pursuant to Section 12(b) of the Exchange Act:

---

| | | |
|:---|:---|:---|
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
| Common Stock, par value $0.001 per share | NHTC | The NASDAQ Stock Market LLC |

---

------

**Item 2.02 Results of Operations and Financial Condition.**

On February 8, 2023, Natural Health Trends Corp. issued an earnings release announcing its results for the quarter and year ended December 31, 2022. The press release is attached hereto as exhibit 99.1.

**Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.**

Brunde E. Broady resigned as a member of the Board of Directors on February 6, 2023, stating that her resignation was due to unforeseen circumstances in her personal life. The Company wishes to thank Ms. Broady for her service to the Company.

**Item 9.01 Financial Statements and Exhibits.**

---

| | |
|:---|:---|
| (d) | Exhibits. |
|  | 99.1 [Press Release of Natural Health Trends Corp. dated February 8, 2023](ex_430491.htm) |
|  | 104 Cover Page Interactive Data File (embedded within the Inline XBRL document). |

---

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Date: February 8, 2023

---

| | |
|:---|:---|
| NATURAL HEALTH TRENDS CORP. | NATURAL HEALTH TRENDS CORP. |
| By: | <u>/s/ Timothy S. Davidson</u>  |
|  | Timothy S. Davidson |
|  | Senior Vice President and Chief Financial Officer |

---

## Exhibit 99.1

**Exhibit 99.1**

**Natural Health Trends Reports Fourth Quarter and Full Year 2022 Financial Results**

*– Fourth quarter revenue of $12.5 million increased 7% compared to the third quarter of 2022* 

*– Generated positive operating income, net income and cash flow from operations in the fourth quarter*

*– Declared a quarterly cash dividend of $0.20 per share* 

HONG KONG – February 8, 2023 – Natural Health Trends Corp. (NASDAQ: NHTC), a leading direct-selling and e-commerce company that markets premium quality personal care, wellness and "quality of life" products under the NHT Global brand, today announced its financial results for the fourth quarter and full year ended December 31, 2022.

**Fourth Quarter 2022 Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $12.5 million increased 7% compared to $11.7 million in the third quarter of 2022 and decreased 22% compared to $16.1 million in the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating income was $43,000 compared to operating loss of $145,000 in the third quarter of 2022 and operating income of $487,000 million in the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income was $188,000, or $0.02 per diluted share , compared to $47,000, or breakeven per diluted share, in the third quarter of 2022 and $232,000, or $0.02 per diluted share, in the fourth quarter of 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The number of Active Members<sup>1</sup> were down 6% to 38,660 at December 31, 2022, compared to 41,170 at September 30, 2022, and decreased 12% compared to 45,760 at December 31, 2021.

*<sup>1</sup>*  *Natural Health Trends defines Active Members as those that have placed at least one product order with the Company during the preceding twelve-month period.*

**Full Year 2022 Financial Highlights**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revenue of $49.1 million decreased 18% compared to $60.0 million in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operating loss was $270,000 compared to operating income of $1.6 million in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net income was $313,000, or $0.03 per diluted share , compared to $1.1 million, or $0.09 per diluted share, in 2021.

**Management Commentary** 

"During most of the 4<sup>th</sup> quarter, much of the urban Chinese population was still under some forms of restrictions. In this difficult operating environment, we focused on protecting our margin by diligently controlling costs and exercising discipline in marketing and product mix, while still managing to increase revenue sequentially compared to the third quarter. The result of our effort was positive operating and net income for the fourth quarter, as well as cash from operations," commented Chris Sharng, President of Natural Health Trends Corp.

Mr. Sharng continued, "With the ending of the "Zero-Covid" policy, we are hopeful that our members can conduct more in-person meetings while we support more events and incentive trips. We wish to thank all of our hard-working members, old and new, who have endured the past few years and demonstrated strong commitment to our products and our business."

------

**Balance Sheet and Cash Flow**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Net cash provided by operating activities was $938,000 in the fourth quarter of 2022, compared to $1.6 million in the fourth quarter of 2021. Net cash used in operating activities was $4.9 million in 2022, compared to net cash provided by operating activities of $1.0 million in 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total cash and cash equivalents were $69.7 million as of December 31, 2022, down from $83.8 million as of December 31, 2021.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• On February 6, 2023, the Company's Board of Directors declared a quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on March 3, 2023 to stockholders of record as of February 21, 2023.

The Company expects to issue its 2022 audited financial results in late February with its Annual Report on Form 10-K to be filed with the United States Securities and Exchange Commission. These financial results are preliminary and the accompanying financial statements have not been audited or have not yet been reviewed by the Company's independent accountants. Significant updates and revisions may be required before the release of the Company's 2022 audited financial results.

**Fourth Quarter and Full Year 2022 Financial Results Conference Call**

Management will host a conference call to discuss the fourth quarter and full year 2022 financial results today, Wednesday, February 8, 2023 at 11:30 a.m. Eastern Time. The conference call details are as follows:

---

| | |
|:---|:---|
| **Date:** | Wednesday, February 8, 2023 |
| **Time:** | 11:30 a.m. Eastern Time / 8:30 a.m. Pacific Time |
| **Dial-in:** | 1-877-407-0789 (Domestic)<br> 1-201-689-8562 (International) |
| **Conference ID:** | 13735133 |
| **Webcast:** | https://viavid.webcasts.com/starthere.jsp?ei=1590879&tp_key=3af4576222 |

---

For those unable to participate during the live broadcast, a replay of the call will also be available from 2:30 p.m. Eastern Time on February 8, 2023 through 11:59 p.m. Eastern Time on February 22, 2023 by dialing 1-844-512-2921 (domestic) and 1-412-317-6671 (international) and referencing the replay pin number: 13735133.

**About Natural Health Trends Corp.**

Natural Health Trends Corp. (NASDAQ: NHTC) is an international direct-selling and e-commerce company operating through its subsidiaries throughout Asia, the Americas, and Europe. The Company markets premium quality personal care products under the NHT Global brand. Additional information can be found on the Company's website at www.naturalhealthtrendscorp.com.

**Forward-Looking Statements**

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 -- Forward-looking statements in this press release do not constitute guarantees of future performance. Such forward-looking statements are subject to risks and uncertainties that could cause the Company's actual results to differ materially from those anticipated. Such risks and uncertainties include the risks and uncertainties detailed under the caption "Risk Factors" in Natural Health Trends Corp.'s Annual Report on Form 10-K filed on February 25, 2022 with the Securities and Exchange Commission (SEC), as well as in subsequent reports filed this year with the SEC. The Company assumes no obligation to update any forward-looking information contained in this press release or with respect to the announcements described herein.

------

**CONTACT:**

Scott Davidson

Senior Vice President and Chief Financial Officer

Natural Health Trends Corp.

Tel (Hong Kong): +852-3107-0800

Tel (U.S.): 310-541-0888

investor.relations@nhtglobal.com

------

**NATURAL HEALTH TRENDS CORP.**

**CONSOLIDATED BALANCE SHEETS**

**(In thousands, except share data)**

---

| | | |
|:---|:---|:---|
|  | December 31, | December 31, |
|  | 2022 | 2021 |
|  | (Unaudited) | |
| ASSETS |  |  |
| Current assets: |  |  |
| Cash and cash equivalents | $69667 | $83843 |
| Inventories | 4525 | 5257 |
| Other current assets | 3359 | 4369 |
| Total current assets | 77551 | 93469 |
| Property and equipment, net | 394 | 463 |
| Operating lease right-of-use assets | 3992 | 3021 |
| Restricted cash | 79 | 522 |
| Deferred tax asset | 195 | 309 |
| Other assets | 606 | 571 |
| Total assets | $82817 | $98355 |
| LIABILITIES AND STOCKHOLDERS' EQUITY |  |  |
| Current liabilities: |  |  |
| Accounts payable | $810 | $761 |
| Income taxes payable | 2972 | 1345 |
| Accrued commissions | 2943 | 3636 |
| Other accrued expenses | 1181 | 1933 |
| Deferred revenue | 5597 | 8536 |
| Amounts held in eWallets | 4895 | 6341 |
| Operating lease liabilities | 1135 | 1239 |
| Other current liabilities | 905 | 865 |
| Total current liabilities | 20438 | 24656 |
| Income taxes payable | 9098 | 12130 |
| Deferred tax liability | 141 | 153 |
| Operating lease liabilities | 2989 | 1928 |
| Total liabilities | 32666 | 38867 |
| Stockholders' equity: |  |  |
| Preferred stock |  |  |
| Common stock | 13 | 13 |
| Additional paid-in capital | 86102 | 86102 |
| Accumulated deficit | (9056) | (231) |
| Accumulated other comprehensive loss | (1004) | (492) |
| Treasury stock, at cost | (25904) | (25904) |
| Total stockholders' equity | 50151 | 59488 |
| Total liabilities and stockholders' equity | $82817 | $98355 |

---

------

**NATURAL HEALTH TRENDS CORP.** 

**CONSOLIDATED STATEMENTS OF OPERATIONS** 

**(In thousands, except per share data)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | Three Months Ended December 31, | Three Months Ended December 31, | Year Ended December 31, | Year Ended December 31, |
|  | 2022 | 2021 | 2022 | 2021 |
|  | (Unaudited) | (Unaudited) | (Unaudited) |  |
| Net sales | $12512 | $16108 | $49134 | $60005 |
| Cost of sales | 3263 | 4153 | 12661 | 15010 |
| Gross profit | 9249 | 11955 | 36473 | 44995 |
| Operating expenses: |  |  |  |  |
| Commissions expense | 5377 | 7110 | 20747 | 25578 |
| Selling, general and administrative expenses | 3829 | 4358 | 15996 | 17846 |
| Total operating expenses | 9206 | 11468 | 36743 | 43424 |
| Income (loss) from operations | 43 | 487 | (270) | 1571 |
| Other income (expense), net | 400 | 31 | 872 | (61) |
| Income before income taxes | 443 | 518 | 602 | 1510 |
| Income tax provision | 255 | 286 | 289 | 425 |
| Net income | $188 | $232 | $313 | $1085 |
| Net income per common share: |  |  |  |  |
| Basic | $0.02 | $0.02 | $0.03 | $0.10 |
| Diluted | $0.02 | $0.02 | $0.03 | $0.09 |
| Weighted-average number of common shares outstanding: |  |  |  |  |
| Basic | 11423 | 11159 | 11362 | 11017 |
| Diluted | 11423 | 11423 | 11423 | 11423 |

---

------

**NATURAL HEALTH TRENDS CORP.**

**CONSOLIDATED STATEMENTS OF CASH FLOWS** 

**(In thousands)**

---

| | | |
|:---|:---|:---|
|  | Year Ended December 31, | Year Ended December 31, |
|  | 2022 | 2021 |
| CASH FLOWS FROM OPERATING ACTIVITIES: | (Unaudited) |  |
| Net income | $313 | $1085 |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: |  |  |
| Depreciation and amortization | 204 | 299 |
| Noncash lease expense | 1172 | 1163 |
| Deferred income taxes | 90 | 362 |
| Changes in assets and liabilities: |  |  |
| Inventories | 680 | (1547) |
| Other current assets | 992 | (803) |
| Other assets | (67) | 68 |
| Accounts payable | 52 | 182 |
| Income taxes payable | (1404) | (1753) |
| Accrued commissions | (654) | 212 |
| Other accrued expenses | (732) | 20 |
| Deferred revenue | (2901) | 5482 |
| Amounts held in eWallets | (1432) | (2122) |
| Operating lease liabilities | (1220) | (1237) |
| Other current liabilities | 55 | (395) |
| Net cash provided by (used in) operating activities | (4852) | 1016 |
| CASH FLOWS FROM INVESTING ACTIVITIES: |  |  |
| Purchases of property and equipment | (143) | (225) |
| Net cash used in investing activities | (143) | (225) |
| CASH FLOWS FROM FINANCING ACTIVITIES: |  |  |
| Dividends paid | (9138) | (9138) |
| Net cash used in financing activities | (9138) | (9138) |
| Effect of exchange rates on cash, cash equivalents and restricted cash | (486) | (180) |
| Net decrease in cash, cash equivalents and restricted cash | (14619) | (8527) |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 84365 | 92892 |
| CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $69746 | $84365 |
| SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: |  |  |
| Right-of-use assets obtained in exchange for operating lease liabilities | $2234 | $472 |

---