LifeVantage(US:LFVN)2025-11-04 21:05Financial Performance - For the three months ended September 30, 2025, net revenue was $47,561,000, a slight increase of 0.73% compared to $47,214,000 for the same period in 2024[18] - Gross profit for the quarter was $37,816,000, compared to $37,723,000 in the prior year, reflecting a marginal increase[18] - Net income for the quarter was $2,155,000, representing a 18.0% increase from $1,826,000 in the same quarter of the previous year[18] - Basic net income per share increased to $0.17 from $0.15 year-over-year, while diluted net income per share rose to $0.17 from $0.14[18] - The Protandim product line generated $22.057 million in revenue for the three months ended September 30, 2025, down from $24.198 million in 2024, indicating a decline of 8.9%[97] - The Company has identified the United States and Japan as major markets, with revenues of $35.216 million and $6.192 million, respectively, for the three months ended September 30, 2025[96] Assets and Liabilities - Total current assets decreased to $45,048,000 as of September 30, 2025, down from $50,894,000 as of June 30, 2025[16] - Total liabilities decreased to $28,422,000 from $37,317,000 in the previous quarter, indicating improved financial health[16] - Stockholders' equity as of September 30, 2025, was $33,157,000, down from $34,641,000 as of June 30, 2025[16] - As of September 30, 2025, the Company had long-lived assets totaling $16.286 million, a decrease from $20.819 million as of June 30, 2025[95] Cash Flow and Expenses - Cash used in operating activities was $(2,305,000) for the three months ended September 30, 2025, compared to $(583,000) in 2024, indicating a significant increase in cash outflow[26] - Cash and cash equivalents at the end of the period were $13,091,000, down from $14,596,000 at the end of September 2024, reflecting a decrease of 10.3%[26] - The Company recognized income tax expense of $0.1 million for the three months ended September 30, 2025, down from $0.8 million in 2024[57] - The company’s cash paid for income taxes decreased to $765,000 for the three months ended September 30, 2025, down from $1,999,000 in 2024, reflecting a reduction in tax liabilities[26] Stock and Shareholder Information - The Company issued 0.5 million shares of common stock under stock plans during the three months ended September 30, 2025, compared to 0.1 million shares in the same period of 2024[76] - The Company repurchased $578,000 worth of its stock during the three months ended September 30, 2025, compared to $1,114,000 in the same period of 2024[26] - Approximately 13,000 shares were issued under the 2019 Employee Stock Purchase Plan (ESPP) for the three months ended September 30, 2025, compared to 22,000 shares in 2024[89] - The Company has reserved a total of 0.8 million shares for issuance under the 2019 ESPP, with 0.4 million shares available as of September 30, 2025[87] - The Board of Directors declared a quarterly cash dividend of $0.045 per share, totaling $0.6 million for the three months ended September 30, 2025, compared to $0.5 million for the same period in 2024[82] Research and Development - Research and development expenses for the three months ended September 30, 2025, were $300,000, consistent with the $300,000 spent in the same period of 2024[49] Risks and Compliance - The company faces risks related to supply chain management, product recalls, and compliance with evolving regulations, which could impact future performance[10] Other Financial Metrics - The company experienced net foreign currency losses of approximately $69,000 for the three months ended September 30, 2025, compared to losses of $40,000 in 2024[36] - The company reported a foreign currency translation adjustment loss of $180,000 for the quarter[18] - Commissions and incentives increased to $20,695,000 from $20,305,000 year-over-year, reflecting ongoing investment in sales[18] - Operating lease expense for the three months ended September 30, 2025, was $0.474 million, slightly down from $0.516 million in 2024[66] - The weighted average remaining lease term for operating leases was 5.84 years as of September 30, 2025[65] - The effective interest rate on the Line of Credit as of September 30, 2025, was 6.24%[70] - As of September 30, 2025, the Company had no outstanding balance on its $5.0 million revolving line of credit[75] - Stock-based compensation for the three months ended September 30, 2025, was $0.8 million, compared to $0.9 million in 2024, reflecting a decrease of 11.1%[90] - Deferred revenue related to contract liabilities was $700,000 as of September 30, 2025, unchanged from June 30, 2025[46] - The Company completed an asset purchase agreement to acquire assets from Global Organics Merchants, LLC, with the transaction closing on October 1, 2025[102] - The Company has early adopted ASU 2025-06, which improves the accounting for internal-use software, for the current fiscal year[63]