Natural Health Trends Stock

Natural Health Trends Corp. operates as an international direct-selling and e-commerce company.

Subsidiaries controlled by the company sells 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 the company’s engagement with a local service provider.

Most of the company’s order volume, particularly in the company’s Hong Kong subsidiary, is for personal consumption through existing members’ referrals.

Principal Products

The company offers a line of ‘NHT Global’ branded products in six distinct categories: wellness, herbal, beauty, lifestyle, home, and daily. These product categories, along with the business opportunity the company offers in most of its markets, provide the company’s members a platform to further their goal of achieving and maintaining healthy, quality lifestyles complete with product supplementation and the opportunity for financial rewards.

The following table summarizes the company’s product offering by category:

Wellness: Products formulated and designed to meet specific wellness goals of the company’s customers. Includes targeted nutrition for joint health, antioxidant support, digestive health, heart health, vision health, immune support and cellular health. Products include Premium Noni Juice, Triotein, Cluster X2, Children’s Chewable Multivitamin, ReStor Silver, ReStor Vital, Glucosamine 2200, FibeRich, Energin, Enhanced Essential Probiotics, Omega-3 Essential Fatty Acids, StemRenu, OcuFocus, CurcuMore, Biotic Trio, Ultra B Complex, CalComplex, Colostrum Chewable Tablets, and Collagen Supreme.

Herbal: Products formulated incorporating ingredients commonly found in traditional Chinese medicine. Products include LivaPro, Cordyceps Mycelia CS-4, Purus, and RespFactor.

Beauty: Products to help improve skin health and bring an appearance of youthful vibrancy. This product line includes age-defying and hydrating cleansers, creams, lotions, serums and toners to moisturize, protect and improve the appearance of skin. Products include Skindulgence 30 Minute Firming System, BioCell SC Mask, Skindulgence Essence Gel, Valesce Eye Cream, Floraeda Toner and Primer, Botanical Hand Protector, Airelle Age-Defying Facial Serum, Airelle Intense Hydrating Repair Complex, Airelle Age-Defying Eye & Lip Treatment, Color Awakening Lipstick, Adamas Brightening Series, Micellion Cleansing Water, Skindulgence Probiotic Ampoule, and Skindulgence Daily Gentle Facial Cleanser.

Lifestyle: Products uniquely formulated to improve overall quality of life and to support active, physical and healthy lifestyles including weight management, and energy enhancing supplements. Products include Alura Lux by NHT Global, Valura Lux, LaVie+, TwinSlim Probiotics, and NaturalGlo.

Home: Products designed to create a clean and natural living environment for the home. Products include Air Purifier and AquaPur Desktop Water Purifier.

Daily: Daily care products designed to cleanse and protect the body and promote personal hygiene. Product includes Smart Sonic Toothbrush.

The company continuously source unique, proprietary and immediate impact products to offer to the company’s members and customers. The company’s product development is an ongoing process that is fueled by marketplace trends, new technologies and scientific findings, members’ input, research and vendor proposals.

The company’s manufacturers are primarily located in the United States, as well as a few in South Korea, Hong Kong, Taiwan, Europe and China.

Marketing and Distribution

The company distributes its products internationally primarily through a network marketing system, which is a form of person-to-person direct selling. Under this system, members primarily refer the company’s products to prospective consumers or they may buy at wholesale or discounted prices for personal consumption or for resale to consumers. The concept of network marketing is based on the strength of personal recommendations that frequently come from friends, neighbors, relatives, and close acquaintances.

Virtually all of the company’s members are independent full-time or part-time contractors who purchase products directly from the company’s subsidiaries via the internet for their own personal consumption or for resale to retail consumers.

Seasonality

From quarter to quarter, the company is somewhat impacted by seasonal factors and trends, such as major cultural events and vacation patterns. For example, most Asian markets celebrate their respective local New Year in the first quarter (year ended December 2022). In addition, the national holidays in Hong Kong, China and Taiwan in early October tend to have an adverse effect on sales in those markets.

Government Regulations

The company’s products and related promotional and marketing activities are subject to extensive governmental regulation by numerous governmental agencies and authorities in the United States, including the U.S. Food and Drug Administration (the ‘FDA’), the Federal Trade Commission (the ‘FTC’), the Consumer Product Safety Commission, the U.S. Department of Agriculture, state attorneys general and other state regulatory agencies. In the company’s foreign markets, the products are generally regulated by similar government agencies.

In Japan, the Ministry of Health, Labor and Welfare regulates the sale and distribution of cosmetics and requires the company to have an import business license and to register each personal care product imported into Japan.

The company’s business is subject to additional FDA regulations, such as those implementing an adverse event reporting system (‘AERS’), which requires the company to document and track adverse events and report serious adverse events, which are events involving hospitalization or death, associated with consumers’ use of the company’s products.

History

Natural Health Trends Corp. was incorporated as a Florida corporation in 1988 and reincorporated in Delaware in 2005.