NATURAL HEALTH TRENDS CORP. CONSOLIDATED BALANCE SHEETS (In Thousands, Except Share Data) December 31, March 31, 2007 2008 ------------ ------------ (Unaudited) ASSETS Current assets: Cash and cash equivalents $ 6,282 $ 4,657 Restricted cash 298 196 Accounts receivable 418 357 Inventories, net 3,585 2,827 Other current assets 1,324 1,740 ------------ ------------ Total current assets 11,907 9,777 Property and equipment, net 1,537 1,363 Goodwill 1,764 1,764 Intangible assets, net 2,600 2,400 Restricted cash 4,317 4,356 Deferred tax assets 208 196 Other assets 2,363 2,204 ------------ ------------ Total assets $ 24,696 $ 22,060 ============ ============ LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Accounts payable $ 2,168 $ 1,879 Income taxes payable 363 412 Accrued distributor commissions 2,018 1,646 Other accrued expenses 3,599 3,276 Deferred revenue 3,496 2,570 Current portion of convertible debentures, net of discount of $151 and $382 at December 31, 2007 and March 31, 2008, respectively 203 503 Other current liabilities 3,254 3,147 ------------ ------------ Total current liabilities 15,101 13,433 Convertible debentures, net of discount of $3,896 and $3,365 at December 31, 2007 and March 31, 2008, respectively - - ------------ ------------ Total liabilities 15,101 13,433 Commitments and contingencies Minority interest 33 37 Stockholders' equity: Preferred stock, $0.001 par value; 5,000,000 shares authorized; 1,761,900 shares designated Series A convertible preferred stock, 138,400 shares issued and outstanding at December 31, 2007 and March 31, 2008, aggregate liquidation value of $250 124 124 Common stock, $0.001 par value; 50,000,000 shares authorized; 10,327,405 and 10,347,126 shares issued and outstanding at December 31, 2007 and March 31, 2008, respectively 10 10 Additional paid-in capital 79,158 79,322 Accumulated deficit (70,989) (71,697) Accumulated other comprehensive income: Foreign currency translation adjustments 1,259 831 ------------ ------------ Total stockholders' equity 9,562 8,590 ------------ ------------ Total liabilities and stockholders' equity $ 24,696 $ 22,060 ============ ============ NATURAL HEALTH TRENDS CORP. CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED) (In Thousands, Except Per Share Data) Three Months Ended March 31, ------------------ 2007 2008 -------- -------- Net sales $ 21,515 $ 11,395 Cost of sales 5,697 3,090 -------- -------- Gross profit 15,818 8,305 Operating expenses: Distributor commissions 10,424 3,997 Selling, general and administrative expenses (including stock-based compensation expense of $79 and $164 during 2007 and 2008, respectively) 9,389 4,596 Depreciation and amortization 489 386 Impairment of long-lived assets 532 24 -------- -------- Total operating expenses 20,834 9,003 -------- -------- Loss from operations (5,016) (698) Other income: Gain on foreign exchange 17 371 Interest income 179 35 Interest expense (including amortization of debt issuance costs and accretion of debt discount of $362 in 2008) (3) (387) Other (4) 8 -------- -------- Total other income, net 189 27 -------- -------- Loss before income taxes and minority interest (4,827) (671) Income tax provision (210) (37) Minority interest (1) - -------- -------- Net loss (5,038) (708) Preferred stock dividends - (4) -------- -------- Net loss attributable to common stockholders $ (5,038) $ (712) ======== ======== Loss per share - basic and diluted $ (0.61) $ (0.07) ======== ======== Weighted-average number of shares outstanding 8,200 9,567 ======== ========
Contact Information: Contact: Jean Bono Natural Health Trends Corp.