Financial Performance - Net sales for Q3 2025 were $29.2 million, a decrease of $2.6 million or 8.1% compared to $31.7 million in Q3 2024[6] - Gross profit as a percentage of net sales increased to 76.4% in Q3 2025 from 74.5% in Q3 2024, driven by higher sales prices and lower inventory reserve additions[6] - Income from operations was $2.0 million in Q3 2025, compared to $0.9 million in Q3 2024[6] - Net income for Q3 2025 was $1.9 million, or $1.01 per diluted share, compared to a net loss of $0.3 million, or $0.17 per diluted share in Q3 2024[6] - For the three-month period ended September 30, 2025, net sales were $29.2 million, reflecting a decrease of 7.3% compared to $31.7 million in the same period of 2024[17] - Gross profit for the same period was $22.3 million, down 5.1% from $23.6 million year-over-year[17] - For the nine-month period ended September 30, 2025, net sales totaled $81.4 million, representing a 6.5% decline from $88.9 million in the same period of 2024[17] - Gross profit for the nine-month period was $60.9 million, down 8.5% from $68.1 million year-over-year[17] - The loss from operations for the nine-month period was $(0.3) million, a 66.7% improvement compared to a loss of $0.6 million in the prior year[17] Expenses - Commission expenses decreased by 10.7% to $10.9 million in Q3 2025, representing 37.5% of net sales, down from 38.3% in Q3 2024[6] - Selling and administrative expenses decreased by 7.8% to $9.1 million in Q3 2025, with a slight increase in percentage of net sales to 31.1%[6] Cash and Assets - Cash and cash equivalents decreased by 37.3% to $7.1 million as of September 30, 2025, down from $11.4 million at the end of 2024[6] - Total assets decreased to $33.9 million as of September 30, 2025, from $36.1 million at the end of 2024[12] - Total liabilities decreased slightly to $27.0 million as of September 30, 2025, compared to $27.4 million at the end of 2024[12] Associate and Customer Metrics - The number of independent associates and preferred customers decreased to approximately 119,000 from 136,000 in the same period of 2024, with a 21.9% decline in recruiting[6] Non-GAAP Financial Measures - The company utilizes Constant dollar measures to provide a clearer view of financial performance by excluding currency translation impacts[16] - Constant dollar net sales for Q3 2025 were $29.4 million, adjusted from GAAP results of $29.2 million[17] - Constant dollar gross profit for Q3 2025 was $22.4 million, adjusted from GAAP results of $22.3 million[17] - The company believes that these non-GAAP financial measures offer investors additional insights into operational trends[16]

Financial Performance - Consolidated net sales for Q3 2025 were $29.2 million, a decrease of $2.6 million or 8.1% compared to Q3 2024[133] - Consolidated net sales for the nine months ended September 30, 2025 were $81.4 million, down $7.5 million or 8.4% from the same period in 2024[133] - Net income for Q3 2025 was $1.9 million, or $1.01 per diluted share, compared to a net loss of $0.3 million, or $0.17 per diluted share in Q3 2024[135] - Net loss for the nine months ended September 30, 2025 was $3.9 million, or $2.06 per diluted share, compared to net income of $0.2 million, or $0.12 per diluted share in the same period in 2024[136] - For the nine months ended September 30, 2025, total net sales decreased by $7.5 million, or 8.4%, to $81.4 million compared to $88.9 million for the same period in 2024[151] Cost and Expenses - Cost of sales for Q3 2025 was $6.9 million, representing 23.6% of net sales, down from 25.5% in Q3 2024[137] - Total operating expenses for Q3 2025 were $20.3 million, or 69.5% of net sales, compared to 71.7% in Q3 2024[137] - Commission expense for the three months ended September 30, 2025, decreased by 10.7%, or $1.3 million, to $10.9 million compared to $12.2 million for the same period in 2024[165] - Selling and administrative expenses for the three months ended September 30, 2025 decreased by $0.7 million, or 7.8%, to $9.1 million, while as a percentage of net sales, it increased to 31.1% from 31.0% in 2024[170] - For the nine months ended September 30, 2025, selling and administrative expenses decreased by $1.4 million, or 4.6%, to $29.9 million, with the percentage of net sales increasing to 36.7% from 35.2% in 2024[171] Sales and Market Performance - Operations outside of the Americas accounted for approximately 72.9% of consolidated net sales in Q3 2025, up from 66.6% in Q3 2024[142] - In the Americas, net sales for the three months ended September 30, 2025, decreased by $2.7 million, or 25.5%, to $7.9 million compared to $10.6 million for the same period in 2024[144] - Asia/Pacific net sales for the three months ended September 30, 2025, increased by $0.2 million, or 1.1%, to $18.8 million compared to $18.6 million for the same period in 2024[146] - EMEA net sales remained constant at $2.5 million for the three months ended September 30, 2025, compared to the same period in 2024[148] - Product sales for the three months ended September 30, 2025, decreased by $2.6 million, or 8.3%, compared to the same period in 2024[152] Customer and Associate Metrics - The number of active independent associates and preferred customers decreased by 13.0% for the three months ended September 30, 2025[144] - Recruitment of new independent associates and preferred customers decreased by 21.9% to 13,078 in the third quarter of 2025 compared with 16,741 in the third quarter of 2024[154] Cash Flow and Liquidity - As of September 30, 2025, cash and cash equivalents decreased by 37.3%, or $4.3 million, to $7.1 million from $11.4 million as of December 31, 2024[179] - Working capital at September 30, 2025 was $2.6 million, down from $5.2 million at December 31, 2024[180] - Operating activities used $2.7 million in cash for the nine months ended September 30, 2025, compared to cash provided of $2.5 million for the same period in 2024[182] - The company invested $1.2 million in cash for back-office software projects for the nine months ended September 30, 2025, compared to $0.4 million in 2024[183] Foreign Exchange and Market Risks - The company reported net realized and unrealized foreign currency gains of $0.6 million for Q3 2025, compared to a loss of $1.5 million in Q3 2024[134] - Foreign exchange gains were $0.6 million for the three months ended September 30, 2025, while losses were $2.6 million for the nine months ended September 30, 2025[172] - The company is exposed to currency exchange rate fluctuations, which could positively or negatively affect consolidated financial results[206] - The company closely monitors exposure to currency fluctuations to mitigate market risks[208] Return Policies - Sales returns have historically averaged 0.5% or less of gross sales, indicating stable return rates[203] - Retail customers in the U.S. and Canada can return products for a full cash refund within 180 days, while other countries allow returns within 90 days[204] - Associates and preferred customers can return unopened products within one year for a full refund minus a 10% restocking fee[204] - Historical estimates of sales returns have not materially deviated from actual returns, supporting the reliability of the company's return policies[203]

FLOWER MOUND, Texas, Nov. 12, 2025 (GLOBE NEWSWIRE) -- Mannatech, Incorporated (NASDAQ: MTEX), ("Mannatech" or "Company"), global health and wellness company committed to transforming lives to make a better world, today announced financial results for its third quarter of 2025. Third Quarter Results Net sales for the quarter ended September 30, 2025 were $29.2 million, as compared to $31.7 million for the same period in 2024, a decrease of $2.6 million, or 8.1%. On a Constant dollar basis (see Non-GAAP Meas ...

Core Insights - Premarket trading is showing notable activity with significant price movements indicating potential investment opportunities before the market opens [1] Premarket Gainers - Powell Max Limited (PMAX) increased by 115% to $5.59 - Solidion Technology, Inc. (STI) rose by 102% to $11.14 - ESS Tech, Inc. (GWH) saw a 44% increase to $6.11 - Aclarion, Inc. (ACON) gained 27% reaching $10.98 - Mannatech, Incorporated (MTEX) was up 20% at $10.80 - USA Rare Earth, Inc. (USAR) increased by 19% to $38.80 - Critical Metals Corp. (CRML) rose by 18% to $17.73 - United States Antimony Corporation (UAMY) gained 13% to $13.86 - Compass Diversified (CODI) increased by 12% to $9.46 - Forward Industries, Inc. (FORD) was up 11% at $22.69 [3] Premarket Losers - Yunhong Green CTI Ltd. (YHGJ) decreased by 24% to $7.00 - Kentucky First Federal Bancorp (KFFB) fell by 22% to $2.85 - One and One Green Technologies, Inc. (YDDL) dropped 20% to $5.23 - Safe & Green Holdings Corp. (SGBX) declined by 15% to $5.25 - Lazydays Holdings, Inc. (GORV) was down 14% at $2.12 - Acurx Pharmaceuticals, Inc. (ACXP) decreased by 10% to $6.69 - Top KingWin Ltd (WAI) fell by 10% to $3.82 - Super League Enterprise, Inc. (SLE) dropped 10% to $3.75 - Chanson International Holding (CHSN) decreased by 10% to $2.28 - Alaunos Therapeutics, Inc. (TCRT) was down 5% at $3.28 [4]

Core Insights - Premarket trading is showing notable activity with early price movements indicating potential opportunities before the market opens [1] Premarket Gainers - Galaxy Payroll Group Limited (GLXG) increased by 39% to $5.34 - Lithium Americas Corp. (LAC) rose by 31% to $7.52 - Senmiao Technology Limited (AIHS) gained 22% to $2.45 - The AES Corporation (AES) saw a 10% increase to $14.53 - Strive, Inc. (ASST) also increased by 10% to $2.77 - Shoulder Innovations, Inc. (SI) rose by 9% to $13.78 - Top KingWin Ltd (WAI) increased by 8% to $3.80 - Southland Holdings, Inc. (SLND) saw a 7% increase to $4.61 - CaliberCos Inc. (CWD) rose by 6% to $4.75 - Mannatech, Incorporated (MTEX) increased by 5% to $10.53 [3] Premarket Losers - Real Messenger Corporation (RMSG) decreased by 16% to $2.01 - Etoiles Capital Group Co., Ltd (EFTY) fell by 14% to $14.45 - Enanta Pharmaceuticals, Inc. (ENTA) dropped by 13% to $10.41 - CollPlant Biotechnologies Ltd. (CLGN) saw an 11% decrease to $2.39 - Fortress Biotech, Inc. (FBIO) declined by 10% to $3.30 - Uni-Fuels Holdings Limited (UFG) fell by 9% to $7.52 - Alset Inc. (AEI) decreased by 9% to $2.30 - JFB Construction Holdings (JFB) saw a 5% decline to $12.20 - SHF Holdings, Inc. (SHFS) dropped by 5% to $6.80 - Phio Pharmaceuticals Corp. (PHIO) decreased by 5% to $2.34 [4]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: June 30, 2025 OR ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ___________ to ___________. Commission File No. 000-24657 MANNATECH, INCORPORATED (Exact Name of Registrant as Specified in its Charter) (State or other Juris ...

Financial Performance - Consolidated net sales for Q1 2025 were $26.6 million, a decrease of $2.8 million or 9.6% compared to $29.4 million in Q1 2024, primarily due to slowing demand in Asia [118]. - The net loss for Q1 2025 was $1.5 million, or $0.80 per diluted share, compared to a net income of $1.2 million, or $0.63 per diluted share in Q1 2024 [120]. - Net sales in the Americas decreased by $1.2 million, or 11.8%, to $9.0 million in Q1 2025, while Asia/Pacific net sales decreased by $1.7 million, or 9.9%, to $15.4 million [124][125]. - Product sales decreased by $2.4 million, or 8.6%, in Q1 2025, with a decrease in average order value to $153 from $168 in Q1 2024 [128]. - Gross profit for the three months ended March 31, 2025, decreased by $3.4 million, or 14.6%, to $19.7 million, with gross profit as a percentage of net sales decreasing to 74.3% from 78.6% in 2024 [136]. Customer Metrics - Active independent associates and preferred customers decreased by 12.0% to approximately 129,000 as of March 31, 2025, down from 143,000 in the same period last year [130]. - Recruitment of new independent associates and preferred customers decreased by 13.9% to 13,749 in Q1 2025 compared to 15,970 in Q1 2024 [129]. - Pack sales and associate fees decreased by $0.4 million, or 36.4%, to $0.7 million for the three months ended March 31, 2025, compared to $1.1 million in 2024 [132]. Operating Expenses - Total operating expenses decreased by $1.7 million, or 7.7%, to $20.6 million in Q1 2025, with commissions and incentives accounting for 39.7% of net sales [121]. - Commission expense decreased by 10.5%, or $1.2 million, to $10.0 million for the three months ended March 31, 2025, with commissions as a percentage of net sales decreasing to 37.7% from 38.1% in 2024 [137]. - Selling and administrative expenses decreased by $0.6 million, or 5.4%, to $10.0 million for the three months ended March 31, 2025, with expenses as a percentage of net sales increasing to 37.7% from 36.0% in 2024 [140]. Cash Flow and Working Capital - Cash and cash equivalents decreased by 18.2%, or $2.1 million, to $9.3 million as of March 31, 2025, from $11.4 million as of December 31, 2024 [146]. - Working capital decreased to $4.0 million as of March 31, 2025, from $5.2 million as of December 31, 2024 [148]. - Net cash flows from operating activities used $1.4 million for the three months ended March 31, 2025, compared to cash provided of $1.9 million in the same period in 2024 [150]. Tax and Regulatory Matters - The effective tax rate for the three months ended March 31, 2025, was (15.1)%, compared to 36.0% in 2024 [144]. - As of March 31, 2025, there were no uncertain income tax positions recorded in long-term liabilities, indicating a stable tax position [166]. - There are ongoing income tax audits in various international jurisdictions, but these are not expected to materially affect financial statements [166]. Business Strategy and Risk Management - The company has established a business reorganization plan focusing on revenue growth, margin improvement, and cost control [157]. - The company changed its shipping terms, now recognizing revenue upon delivery to the freight carrier, which affects revenue recognition timing [168]. - The company does not engage in trading market risk-sensitive instruments, maintaining a conservative approach to market risk management [175]. - Currency exchange rate fluctuations could positively or negatively impact consolidated financial results, emphasizing the importance of monitoring foreign currency exposure [176]. - The company maintains a portion of cash and cash equivalents in foreign currencies to meet anticipated working capital requirements [177]. - The company does not use financial instruments to manage exposure to market risks, relying instead on internal monitoring processes [177]. Customer Policies - Sales returns have historically averaged 0.5% or less of gross sales, indicating effective management of product returns [173]. - Retail customers can return products for a full cash refund within 180 days in the U.S. and Canada, and 90 days in other countries, reflecting a customer-friendly return policy [174]. - The company has implemented a satisfaction guarantee refund policy for associates and preferred customers, enhancing customer satisfaction [174].

Company Overview - As of December 31, 2024, Mannatech had approximately 133,000 active associate and preferred customer positions[23]. - The company operates in three regions: the Americas, EMEA, and Asia/Pacific, with a focus on network marketing distribution channels[22]. - Mannatech's product offerings include proprietary nutritional supplements, skin care, anti-aging products, and weight-management products[28]. - Mannatech's subsidiary in China operates under a cross-border e-commerce model, allowing consumers to purchase products online[24]. - The company has 38 registered trademarks in the United States and 532 registered trademarks in 35 foreign jurisdictions as of December 31, 2024[63]. Product Development and Offerings - In 2024, Mannatech launched new products including TruEdge Coffee, TruEdge Energy, and TruHealth Satiety in the United States[36]. - Mannatech's revenue is significantly derived from products such as Ambrotose Life, TruHealth, and Optimal Support Packets[36]. - The company continues to focus on product development targeting overall health and wellness, considering new products and compounds[36]. - The company is focused on developing new products and enhancing existing ones, with a commitment to using high-quality, effective ingredients[60]. - The company holds 74 patents related to its product formulations, with 17 patents specifically for the Ambrotose formulation across 15 foreign jurisdictions[64]. Quality Assurance and Compliance - The company has established a quality assurance program to ensure compliance with Good Manufacturing Practices and maintain product safety and quality[50]. - The FDA regulates the formulation, manufacturing, and labeling of dietary supplements, which are a significant portion of the company's products[83]. - The company is committed to complying with various regulations, including those related to dietary supplements and marketing practices[92]. - The company operates under extensive regulations across three regions: Americas, EMEA, and Asia/Pacific, ensuring compliance with local laws[94]. - The company is subject to extensive laws and regulations concerning product formulation, manufacturing, and marketing, which could adversely affect its operations if not complied with[199]. Financial Performance and Risks - The company aims to strengthen financial results by increasing revenues in both domestic and foreign operations while controlling operating costs[57]. - The company experienced an 8.6% decrease in net sales on a Constant dollar basis for 2024, with unfavorable foreign exchange causing a $2.7 million decrease in GAAP net sales compared to 2023[179]. - The company is subject to liquidity risk, which could adversely affect its financial condition and results of operations[174]. - The company has outstanding debt of $2.9 million as of December 31, 2024, with an interest payable of $0.1 million, related to unsecured loans from board members[173]. - The company is exposed to product liability claims, which could lead to significant financial liability and adversely affect overall financial condition[148]. Associate Management and Compensation - The company emphasizes attracting and retaining independent associates through a global career and compensation plan, offering incentives to enhance motivation and productivity[58]. - The global associate career and compensation plan offers commissions and incentives ranging from 35% to 43% of consolidated net sales[70]. - Independent associates can earn commissions based on a point system that calculates a percentage of their direct and indirect net product sales[71]. - The company actively monitors independent associates' sales activities and provides training and promotional materials to support their efforts[72]. - The company is subject to risks related to the loss of key independent associate leaders, which could negatively impact revenue and associate growth[133]. Regulatory Environment - The company must comply with Canada's Federal Competition Act, ensuring fair and reasonable disclosure of compensation to independent associates[98]. - In Mexico, product sales must adhere to the Consumer Protection Law and various health regulations enforced by the Health Ministry[99]. - The network marketing system in Australia is regulated by the Trade Practices Act, ensuring compliance with local business practices[101]. - The company’s operations in China require a direct selling license, and dietary supplements must be registered with the China Food Safety Administration[108]. - Regulatory scrutiny of nutritional supplements is increasing, with potential new regulations that could impose additional restrictions and increase operational costs[206]. Technology and Innovation - The company utilizes advanced artificial intelligence technologies to enhance customer experience and optimize marketing execution[79]. - A comprehensive management tool called Success Tracker is available for independent associates to manage and optimize their business organizations[80]. - The company utilizes artificial intelligence in its operations, and challenges in managing its use could result in reputational harm and adversely affect results of operations[164]. - The company has implemented practices to maintain the availability of its information technology systems, but unplanned outages or technical difficulties could harm its business[166]. Market Competition - The company faces intense competition in the nutritional supplement industry, with key competitors including Herbalife Nutrition Ltd. and GNC Holdings, Inc.[126]. - The global nutrition and skin care industries are highly competitive, and competitors with greater resources may adversely affect the company's market share and business[153]. - The company is subject to changing consumer preferences and demand for new products, which could negatively impact sales and financial condition if not addressed timely[142]. Corporate Governance and Shareholder Matters - As of December 31, 2024, directors and executive officers, along with their families and affiliates, owned approximately 43.81% of the total outstanding common stock, allowing significant influence over corporate transactions[212]. - The company received a notice from Nasdaq on August 19, 2024, indicating non-compliance with the minimum net equity requirement of $10.0 million, leading to a transfer of its common stock listing to the Nasdaq Capital Market on September 30, 2024[216][217]. - Continued listing on Nasdaq is contingent upon compliance with various standards, and failure to meet these could result in delisting, affecting liquidity and investor interest[218]. - The company is classified as a "smaller reporting company," which may result in reduced disclosure requirements, potentially making its common stock less attractive to investors[221]. - The stock price is subject to significant volatility due to various factors, including market conditions and company performance[211].

Financial Performance - Net sales for Q3 2024 were $31.7 million, a decrease of $0.9 million or 2.5% compared to Q3 2023[2] - Net sales for Q3 2024 were $31.725 million, a decrease of 2.5% from $32.553 million in Q3 2023[9] - For the nine months ended September 30, 2024, net sales were $88.858 million, down 10.5% from $99.261 million in the same period of 2023[9] - Constant dollar net sales for Q3 2024 were $32.2 million, reflecting a decrease of 1.2% compared to Q3 2023[11] - The translation adjustment for nine months ended September 30, 2024, resulted in a non-GAAP measure of constant dollar net sales of $90.8 million, down 8.6% from the prior year[12] Profitability - Gross profit margin decreased to 74.5% in Q3 2024 from 79.6% in Q3 2023, attributed to increased freight costs and sales promotions[2] - Gross profit for Q3 2024 was $23.620 million, down 8.9% from $25.928 million in Q3 2023[9] - The gross profit for the nine months ended September 30, 2024, was $68.095 million, a decrease of 12.9% from $78.219 million in 2023[9] - Income from operations increased to $0.9 million in Q3 2024, compared to $0.2 million in the same period last year[2] - The income from operations for the nine months ended September 30, 2024, was $565,000, compared to a loss of $69,000 in the same period of 2023[9] - The company experienced a significant increase in income from operations of 400.0% in Q3 2024 when adjusted for constant dollars[11] Expenses - Commission expenses decreased by 2.0% to $12.2 million in Q3 2024, while commissions as a percentage of net sales increased to 38.3%[2] - Selling and administrative expenses decreased by 21.8% to $9.8 million in Q3 2024, down from $12.6 million in Q3 2023[2] - Operating expenses decreased to $22.733 million in Q3 2024 from $25.756 million in Q3 2023, a reduction of 11.8%[9] Net Income/Loss - Net loss for Q3 2024 was $0.3 million, or $0.17 per diluted share, compared to net income of $18,000, or $0.01 per diluted share in Q3 2023[2] - The company reported a net loss of $328,000 in Q3 2024 compared to a net income of $18,000 in Q3 2023[9] Cash Position - Cash and cash equivalents increased by 57.2% to $12.2 million as of September 30, 2024, from $7.7 million at the end of 2023[2] - Foreign exchange effects decreased the company's cash position by $0.6 million in the nine months ended September 30, 2024, compared to a $2.3 million effect in the same period in 2023[2] Customer Base - The number of independent associates and preferred customers decreased to approximately 136,000, down 28.1% from 146,000 in Q3 2023[2] Future Outlook - The company anticipates continued economic difficulties for the remainder of 2024 but aims to grow revenue by expanding its sales associate team and customer base[3]

Financial Performance - Consolidated net sales for Q3 2024 were $31.7 million, a decrease of $0.9 million or 2.5% compared to Q3 2023[84]. - For the nine months ended September 30, 2024, consolidated net sales were $88.9 million, down $10.4 million or 10.5% from the same period in 2023[84]. - Net loss for Q3 2024 was $0.3 million, or $0.17 per diluted share, compared to a net income of $18,000, or $0.01 per diluted share in Q3 2023[84]. - For the nine months ended September 30, 2024, net income was $0.2 million, or $0.12 per diluted share, compared to a net loss of $0.5 million, or $0.26 per diluted share in the same period of 2023[84]. - The company reported a decrease in Constant dollar net sales of $0.4 million or 1.2% for Q3 2024 compared to Q3 2023[89]. - Net sales for the three months ended September 30, 2024, decreased by $0.9 million, or 2.9%, to $31.7 million compared to $32.6 million for the same period in 2023[90]. - For the nine months ended September 30, 2024, net sales totaled $88.9 million, down $8.5 million or 8.8% from $99.3 million in the same period in 2023[90]. Gross Profit and Margins - Gross profit margin for Q3 2024 decreased by 2.2% due to increased product costs and $0.6 million in inventory markdowns[84]. - Gross profit for the three months ended September 30, 2024, was $23.6 million, a decrease of $1.9 million or 7% from $25.9 million in the same period last year[90]. - Gross profit for the three months ended September 30, 2024, decreased by $2.3 million, or 8.9%, to $23.6 million, with gross profit as a percentage of net sales dropping to 74.5% from 79.6% in 2023[102]. Operating Expenses - Total operating expenses for Q3 2024 were $22.7 million, a decrease of $3.0 million or 11.7% from Q3 2023[86]. - Commissions and incentives for Q3 2024 were $12.9 million, a decrease of $0.3 million or 2.2% compared to Q3 2023[86]. - Selling and administrative expenses for the three months ended September 30, 2024, decreased by $2.8 million, or 21.8%, to $9.8 million, with expenses as a percentage of net sales decreasing to 31.0% from 38.6% in 2023[106]. - Commission expense for the three months ended September 30, 2024, decreased by 2.0%, or $0.2 million, to $12.2 million, while for the nine months, it decreased by 9.2%, or $3.5 million, to $34.5 million[103]. Foreign Currency and Tax - The company experienced a net realized and unrealized foreign currency loss of $1.5 million in Q3 2024, compared to a gain of $0.3 million in Q3 2023[84]. - The effective tax rate for the three months ended September 30, 2024, was 83.9%, significantly higher than the 43.0% for the same period in 2023[112]. - As of September 30, 2024, there were no uncertain income tax positions recorded in other long-term liabilities on the balance sheet[127]. - There are ongoing income tax audits in various international jurisdictions, but these are not expected to materially impact financial statements[127]. Cash Flow and Working Capital - As of September 30, 2024, cash and cash equivalents increased by 57.2%, or $4.5 million, to $12.2 million from $7.7 million as of December 31, 2023[114]. - Operating activities provided $2.5 million cash for the nine months ended September 30, 2024, compared to a use of $1.0 million in the same period in 2023[116]. - Financing activities provided cash of $2.9 million for the nine months ended September 30, 2024, compared to a use of $1.6 million in the same period in 2023[118]. - Working capital increased to $5.7 million as of September 30, 2024, from $1.9 million as of December 31, 2023[115]. Sales and Recruitment - Recruitment of new independent associates decreased by 28.1% to 16,741 in Q3 2024 compared to 23,296 in Q3 2023[99]. - Product sales for the three months ended September 30, 2024, decreased by $0.9 million, or 2.9%, reflecting a 6.4% decrease in the number of orders processed[98]. - The average order value decreased to $178 for the three months ended September 30, 2024, compared to $177 for the same period in 2023[98]. - Other sales for the three months ended September 30, 2024, were $0.3 million, a decrease from $0.4 million in the same period in 2023, while for the nine months, other sales increased to $1.2 million from $0.7 million[101]. Inventory and Revenue Recognition - The company changed its shipping terms, recognizing revenue upon delivery to the freight carrier, which resulted in recording orders shipped but not yet delivered as deferred revenue[129]. - Historical sales returns have averaged 0.5% or less of gross sales, indicating stable return estimates[130]. - The company monitors inventory for obsolescence and adjusts reserves based on demand, expiration dates, and future sales projections[126]. - The determination of net realizable value for inventory requires significant judgment, considering factors like inventory turnover and consumer demand[126]. - Revenue is derived from product sales and associated fees, with a reserve for expected sales returns based on historical experience[128]. - The company provides associates with a complimentary three-month package for online business tools upon the first payment of an associate fee, which includes multiple performance obligations[129]. Geographic Sales Performance - The Americas accounted for 34.2% of consolidated net sales for the nine months ended September 30, 2024, down from 32.0% in the same period last year[94]. - Asia/Pacific net sales for the nine months ended September 30, 2024, decreased by $8.4 million, or 14%, to $51.6 million compared to $60.0 million in the same period in 2023[94]. - EMEA net sales for the three months ended September 30, 2024, increased by $0.2 million, or 8.7%, to $2.5 million compared to $2.3 million in the same period in 2023[94].