MANNATECH INC Segments Disclosure

NOTE 17: SEGMENT INFORMATION

 

We operate as a direct seller in the nutritional supplement industry. The Company's sole reporting segment is one in which we sell proprietary nutritional supplements, skin care and anti-aging products, and weight-management and fitness products operating in twenty-five markets. We primarily sell our products through a network marketing distribution channel of active associates and preferred customer positions who we refer to as current associates and preferred customers. Each of our subsidiaries sells similar products and exhibits similar economic characteristics, such as selling prices, paying commissions and incentives, gross margins and operating characteristics.

 

The Chief Operating Decision Maker (“CODM”) is the Company’s Chief Executive Officer. The CODM regularly reviews consolidated financial information and performance used to make decisions about the Company as a whole and without distinguishing or grouping of operations based on asset type, revenue, geographic location, tenant or other factors. Accordingly, for disclosure purposes, the Company has a single reportable segment, which is reported on the Company’s consolidated financial statements.

 

   The CODM evaluates performance and allocates resources based on net income as reported in the consolidated statements of operations. Total expenditures for long-lived assets are reported on the consolidated statements of cash flows.

 

Measure of total assets is consistent with total assets reported on the consolidated balance sheet. The CODM reviews consolidated net income to evaluate performance and determine if resources should be deployed into other aspects of the Company, such as to repay debt, buy back common stock under the share repurchase program or pay dividends.

 

The following table presents the Company's segment revenue, segment expenses and segment (loss) income for the years ended December 31, 2025 and 2024 (in thousands):

 

		For the years ended December 31,
		2025				2024
Net Sales		$	108,038			$	117,866
Less:
Cost of sales			27,079				26,406
Commissions and incentives			41,727				48,309
Human Resources			16,558				18,055
Distribution and warehouse			1,844				2,467
Selling and administrative expenses			20,164				19,655
Depreciation and amortization			1,092				1,545
Interest expense			541				475
Interest income			(135	)			(196	)
Other (income) expense			2,057				(2,590	)
Income tax provision			12,324				1,250
Segment net (loss) income		$	(15,213	)		$	2,490
Reconciliation of profit or loss
Adjustments and reconciling items			—				—
Consolidated net (loss) income		$	(15,213	)		$	2,490

 

 

   We currently sell our products in three regions: (i) the Americas (the United States, Canada and Mexico); (ii) Europe/the Middle East/Africa (“EMEA”) (Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, Namibia, the Netherlands, Norway, South Africa, Spain, Sweden and the United Kingdom); and (iii) Asia/Pacific (Australia, Japan, New Zealand, the Republic of Korea, Singapore, Taiwan, Hong Kong, Thailand and China). We also ship our products to customers in the following countries: Belgium, France, Greece, Italy, Luxembourg, and Poland.

 

Consolidated net sales shipped to customers in these regions, along with associate fee and product information for the years ended December 31, are as follows (in millions, except percentages):

 

		2025				2024
Product sales		$	106.0			$	115.9
Associate fees			0.4				0.5
Other			1.6				1.5
Total		$	108.0			$	117.9

 

 

Region		2025								2024
United States		$	22.4				20.7	%		$	28.0				23.8	%
Other Countries			10.1				9.4	%			11.7				9.9	%
The Americas		$	32.5				30.1	%		$	39.7				33.7	%
China		$	11.2				10.4	%		$	6.7				5.7	%
Korea			43.7				40.5	%			47.7				40.4	%
Other Countries			11.5				10.6	%			14.6				12.4	%
Asia/Pacific		$	66.4				61.5	%		$	69.0				58.5	%
EMEA			9.1				8.4	%			9.2				7.8	%
Total		$	108.0				100.0	%		$	117.9				100.0	%

 

Long-lived assets by region, which include property and equipment and construction in progress for the Company and its subsidiaries, as of December 31, reside in the following regions, as follows (in millions):

 

Region		2025				2024
United Sates		$	2.6			$	2.4
Asia/Pacific			0.5				0.5
Total		$	3.1			$	2.9

 

Inventory balances by region, which consist of raw materials and finished goods, including promotional materials, net of allowance for slow-moving and inventory obsolescence, for the Company and its subsidiaries, reside in the following regions as of December 31, as follows (in millions):

 

Region		2025				2024
North America		$	4.8			$	6.0
Asia/Pacific			4.3				3.7
EMEA			1.0				0.7
Total		$	10.1			$	10.4