FitLife Brands(FTLF) - 2024 Q4 - Annual Report

Acquisitions - FitLife Brands acquired MusclePharm on October 10, 2023, enhancing its portfolio of nutritional supplements and wellness products[21]. - The Company completed the acquisition of Mimi's Rock Corp. on February 28, 2023, and the acquisition of substantially all assets of MusclePharm on October 10, 2023[97]. - The Company acquired Mimi's Rock Corp. on February 28, 2023, and MusclePharm on October 10, 2023, expanding its product offerings significantly[127]. Product Development and Launches - The company launched a total of 23 new products in 2024, including 19 completely new products and 4 reformulations, while 18 new products were introduced in 2023[24]. - FitLife Brands' marketing strategy includes social media campaigns and online advertising to build brand awareness and drive sales[30]. - The Company continues to reformulate and introduce new products while expanding its e-commerce capabilities to drive incremental sales[162]. - MusclePharm launched the new Pro Series in a pilot program in mid-March 2025, targeting high-volume Vitamin Shoppe stores[185]. Sales and Revenue - Revenue for the year ended December 31, 2024 increased 22% to $64,469 million compared to$52,700 million for the year ended December 31, 2023[158]. - Online revenue accounted for approximately 67% of total revenue for the year ended December 31, 2024, up from roughly 63% in 2023[150]. - MRC revenue for the year ended December 31, 2024 was $29,036 million, with MusclePharm generating$10,046 million in revenue[160]. - FitLife Consolidated's total revenue for Q4 2024 was $15,013 million, a 13$28,080 million from $21,432 million in the previous year[164]. - Net income for the year ended December 31, 2024 was$8,984 million, a 70% increase compared to $5,296 million for the year ended December 31, 2023[169]. - The company's adjusted EBITDA for 2024 was$14,125 million, up from $10,179 million in 2023[192]. - As of December 31, 2024, the Company had positive working capital of$6,832 million, an increase from $4,356 million at the end of 2023[193]. Market and Competition - The company operates in a highly competitive nutrition industry, differentiating its products based on quality and functional ingredients[33]. - The company faces significant competition in the nutritional supplements market, with competitors often offering a wider range of products and more competitive pricing[50]. - The nutritional supplement industry has been growing, but a slower growth rate could lead to reduced revenue and challenges in sustaining consistent growth[70]. Regulatory Compliance and Risks - The company is committed to regulatory compliance across various authorities, including the FDA and FTC, to ensure product safety and accurate marketing[34][40]. - Legal and regulatory risks could lead to significant compliance costs and negatively impact the marketing of the company's products[90]. - Certain products are subject to heightened regulatory scrutiny, resulting in increased operational costs and potential delays in product sales[92]. Debt and Financial Obligations - As of December 31, 2024, the company had approximately$13.0 million in total debt, with potential for additional indebtedness to fund future acquisitions[80]. - The company’s ability to meet debt service obligations will depend on future performance, which is influenced by various external factors[81]. - Rising interest rates may increase the cost of servicing debt, negatively affecting profitability and cash flows[87]. - The Company amended the Line of Credit Agreement to increase the Line of Credit to $3.5 million and extended the maturity date to December 23, 2023[195]. Operational Efficiency - The company relies on third-party manufacturers for product supply, which could lead to product recalls and reduced revenue if errors occur[91]. - The company is currently dependent on a limited number of independent suppliers and manufacturers, which may affect timely product deliveries and revenue[66]. - The company has never paid cash dividends on its Common Stock and does not anticipate paying any cash dividends in the foreseeable future[103]. Employee and Workforce - As of December 31, 2024, the company had 39 full-time employees, an increase from 37 in 2023[45]. Stock Performance - The closing price of the company's Common Stock ranged from a high of$17.50 to a low of $9.60 during the year ending December 31, 2024[100]. - The high and low closing prices for Common Stock in Q2 2024 were$17.50 and $12.25, respectively, indicating a price increase of approximately 103$5,000,000 of Common Stock over the subsequent 24 months, with no shares repurchased during the year ended December 31, 2024[120][119].