NHT Global(US:NHTC)2025-11-05 14:20Financial Performance - Net sales for Q3 2025 were $9,477,000, a decrease of 11.4% compared to $10,691,000 in Q3 2024[17] - Gross profit for Q3 2025 was $6,987,000, down 11.9% from $7,926,000 in Q3 2024[17] - The net loss for Q3 2025 was $431,000 compared to a net income of $35,000 in Q3 2024[19] - Comprehensive loss for Q3 2025 was $440,000, compared to comprehensive income of $324,000 in Q3 2024[19] - For the three months ended September 30, 2025, total net sales were $9,477,000, a decrease of 11.0% compared to $10,691,000 for the same period in 2024[42] - For the nine months ended September 30, 2025, total net sales were $30,027,000, down 6.5% from $32,117,000 in 2024[42] - The company reported a net loss available to common stockholders of $431,000 for the three months ended September 30, 2025, compared to a net income of $35,000 for the same period in 2024[42] - The company reported a loss before income taxes of $289,000 for the three months ended September 30, 2025, compared to income of $166,000 in the same period of 2024[83] Assets and Liabilities - Total current assets decreased to $37,888,000 in Q3 2025 from $50,983,000 in Q4 2024, representing a decline of 25.7%[15] - Total liabilities decreased to $16,103,000 in Q3 2025 from $22,487,000 in Q4 2024, a reduction of 28.5%[15] - The accumulated deficit increased to $33,547,000 in Q3 2025 from $26,344,000 in Q4 2024[15] - Total assets as of September 30, 2025, were $42,251,000, down from $55,359,000 as of December 31, 2024[84] - Cash and cash equivalents increased to $14,336,000 in Q3 2025 from $13,533,000 in Q4 2024, an increase of 5.9%[15] - Total cash, cash equivalents, and restricted cash at the end of the period was $14,371,000, down from $22,937,000 at the end of the same period in 2024[23] - Cash, cash equivalents, and marketable securities totaled $32.0 million as of September 30, 2025, a decrease of $11.9 million from December 31, 2024[119] - Working capital as of September 30, 2025, was $23.1 million, a decrease of $7.1 million compared to December 31, 2024[120] Operating Expenses - Operating expenses for Q3 2025 were $7,482,000, down 8.8% from $8,201,000 in Q3 2024[17] - Commissions expense for the three months ended September 30, 2025, was $3,832,000, a decrease from $4,256,000 in 2024[81] - Selling, general and administrative expenses decreased by $262,000 to $3.6 million for the three months ended September 30, 2025[113] - Cash used in operating activities for the nine months ended September 30, 2025, was $5,038,000, an increase from $3,455,000 in 2024[23] Dividends and Shareholder Returns - The company declared dividends of $0.20 per share, totaling $2,303,000 for the nine months ended September 30, 2025[20] - Dividends paid remained constant at $6,909,000 for both the nine months ended September 30, 2025, and 2024[23] - The Company declared and paid cash dividends of $0.20 per common share for the first three quarters of 2025, totaling $6.9 million, consistent with the same period in 2024[75] Inventory and Sales - Inventories increased by $1,161,000 in the nine months ended September 30, 2025, compared to an increase of $619,000 in 2024[23] - Finished goods inventory decreased to $1,798,000 as of September 30, 2025, from $2,770,000 as of December 31, 2024[46] - The company's inventories as of September 30, 2025, were valued at $1,663,000, compared to $2,617,000 as of December 31, 2024[84] - Actual sales returns were 1% of sales for both the nine months ended September 30, 2025, and 2024[37] International Operations - The company has an active presence in multiple international markets, including the Americas, Greater China, Southeast Asia, and Europe[25] - Approximately 93% of net sales are generated from subsidiaries located outside the Americas, highlighting the company's international focus[90] - The Hong Kong subsidiary generated approximately 83% of the company's revenue in the first nine months of 2025, primarily from sales delivered to members in China[91] Tariffs and Trade Impact - The U.S. imposed a 125% tariff on Chinese-origin goods in April 2025, which has affected sales and may lead to higher product prices in the future[94] - The company is actively evaluating options to transition production to other jurisdictions to mitigate the impact of U.S. tariffs, which may result in long-term cost savings[95] - The ongoing trade disputes may adversely affect trade and economic relations between the U.S. and China, impacting the company's operations and financial results[138] - The company may incur additional costs related to tariffs and may not be able to recover these costs through surcharges[138] Corporate Governance and Compliance - The company has not experienced any changes in internal control over financial reporting that materially affected its operations during the fiscal quarter ended September 30, 2025[133] - The principal executive officer and principal financial officer concluded that the company's disclosure controls and procedures were effective as of September 30, 2025[132] - There have been no material changes to the company's risk factors since the Annual Report for the year ended December 31, 2024[137] - There are no legal proceedings currently affecting the company[136]