Lifevantage Corp

Previous wording

LifeVantage Corporation (the “Company,” “we,” “us,” or “our”) is a company focused on nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. We are dedicated to helping people achieve their health, wellness and financial goals. We provide quality, scientifically-validated products to customers and independent consultants aswell as a financially rewarding commission-based direct sales opportunity to our independent consultants. We engage in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, and skin and hair care products. We currently sell our products to customers and independent consultants in two geographic regions that we have classified as the Americas region and the Asia/Pacific & Europe region.

Current wording

LifeVantage Corporation (the “Company,” “we,” “us,” or “our”) is a company focused on nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. We are dedicated to helping people achieve their health, wellness and financial goals. We provide quality, scientifically-validated products to customers and independent consultants aswell as a financially rewarding commission-based direct sales opportunity to our independent consultants. We engage in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, weight management products, skin and hair care products, nootropics, and pre- and pro-biotics. We currently sell our products to customers and independent consultants in two geographic regions that we have classified as the Americas region and the Asia/Pacific & Europe region.

Previous wording

•Our products, including our flagship Protandim® family of scientifically validated dietary supplements, LifeVantage® Omega+, ProBio, IC Bright®, Rise AM, Reset PM, Daily Wellness, D3+, and PhysIQ Fat Burn and Prebiotic dietary supplements, our line of TrueScience® skin and hair care products and Liquid Collagen, Petandim®, our companion pet supplement formulated to combat oxidative stress in dogs, and AXIO®, our nootropic energy drink mixes;

Current wording

•Our products, including our flagship Protandim® family of scientifically validated dietary supplements, the MindBody GLP-1 System™, LifeVantage® Omega+, ProBio, IC Bright®, the Rise AM & Reset PM System®, Daily Wellness, D3+, PhysIQ Fat Burn and Prebiotic dietary supplements, our line of TrueScience® skin and hair care products and Liquid Collagen, Petandim®, our companion pet supplement formulated to combat oxidative stress in dogs, and AXIO®, our nootropic energy drink mixes;

Previous wording

Our products are the Protandim® line of scientifically validated dietary supplements, LifeVantage® Omega+, ProBio, IC Bright®, Rise AM, Reset PM, D3+, Daily Wellness, and PhysIQ Fat Burn and Prebiotic dietary supplements, TrueScience®, our line of skin and hair care products and Liquid Collagen, Petandim®, our companion pet supplement formulated to combat oxidative stress in dogs, and AXIO®, our nootropic energy drink mixes. The Protandim® product line includes Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, and Protandim® NAD Synergizer®. The Protandim® NRF1 Synergizer® is formulated to increase cellular energy and performance by boosting mitochondria production to improve cellular repair and slow cellular aging. The Protandim® Nrf2 Synergizer® contains a proprietary blend of ingredients and has been shown to combat oxidative stress and enhance energy production by increasing the body’s natural antioxidant protection at the genetic level, inducing the production of naturally occurring protective antioxidant enzymes, including superoxide dismutase, catalase, and glutathione synthase. The Protandim® NAD Synergizer® was specifically formulated to target cell signaling pathways involved in the synthesis and recycling of a specific molecule called NAD (nicotinamide adenine dinucleotide), and it has been shown to double sirtuin activity, supporting increased health, focus, energy, mental clarity, and mood. Use of the three Protandim® products together, marketed as the Protandim® Tri-Synergizer®, has been shown to produce synergistic benefits greater than using the single products on their own. LifeVantage® Omega+ is a dietary supplement that combines DHA and EPA Omega-3 fatty acids, omega-7 fatty acids, and vitamin D3 to support cognitive health, cardiovascular health, skin health, and the immune system. LifeVantage® ProBio is a dietary supplement designed to support optimal digestion and immune system function. LifeVantage® Daily Wellness is a dietary supplement designed to support immune health. IC Bright® is a dietary supplement to help support eye and brain health, reduce eye fatigue and strain, support cognitive functions, and may help support normal sleep patterns. PhysIQ Fat Burn is a dietary supplement designed to support weight management, and PhysIQ Prebiotic is a dietary supplement designed to support a healthy digestive tract. Our Nrf2 enhanced TrueScience® line of anti-aging skin and hair care products includes TrueScience® TrueClean Refining Cleanser, TrueScience® TrueRenew Daily Firming Complex, TrueScience® TrueLift Illuminating Eye Cream, TrueScience® TrueHydrate Brightening Moisturizer, TrueScience® TrueTone Perfecting Lotion, TrueScience® TrueProtect Daily Mineral Sunstick SPF 30, TrueScience® Perfecting Lotion, TrueScience® Hand Cream, TrueScience® Invigorating Shampoo, TrueScience® Nourishing Conditioner, TrueScience® Scalp Serum, and TrueScience® Liquid Collagen. TrueScience® Liquid Collagen activates, replenishes, and …

Excerpt shortened here; the source contains the full paragraph.

Current wording

Our products are the Protandim® line of scientifically validated dietary supplements, the new MindBody GLP-1 System™, LifeVantage® Omega+, ProBio, IC Bright®, the Rise AM & Reset PM System®, D3+, Daily Wellness, and PhysIQ Fat Burn and Prebiotic dietary supplements, TrueScience®, our line of skin and hair care products and Liquid Collagen, Petandim®, our companion pet supplement formulated to combat oxidative stress in dogs, and AXIO®, our nootropic energy drink mixes. The Protandim® product line includes Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, and Protandim® NAD Synergizer®. The Protandim® NRF1 Synergizer® is formulated to increase cellular energy and performance by boosting mitochondria production to improve cellular repair and slow cellular aging. The Protandim® Nrf2 Synergizer® contains a proprietary blend of ingredients and has been shown to combat oxidative stress and enhance energy production by increasing the body’s natural antioxidant protection at the genetic level, inducing the production of naturally occurring protective antioxidant enzymes, including superoxide dismutase, catalase, and glutathione synthase. The Protandim® NAD Synergizer® was specifically formulated to target cell signaling pathways involved in the synthesis and recycling of a specific molecule called NAD (nicotinamide adenine dinucleotide), and it has been shown to double sirtuin activity, supporting increased health, focus, energy, mental clarity, and mood. Use of the three Protandim® products together, marketed as the Protandim® Tri-Synergizer®, has been shown to produce synergistic benefits greater than using the single products on their own. Our new MindBody GLP-1 System™ is a dietary supplement that combines two products MB Core™ and MB Enhance™ designed to support weight loss and wellness by activating GLP-1 naturally and balancing signals along the gut-brain axis. LifeVantage® Omega+ is a dietary supplement that combines DHA and EPA Omega-3 fatty acids, omega-7 fatty acids, and vitamin D3 to support cognitive health, cardiovascular health, skin health, and the immune system. LifeVantage® ProBio is a dietary supplement designed to support optimal digestion and immune system function. LifeVantage® Daily Wellness is a dietary supplement designed to support immune health. IC Bright® is a dietary supplement to help support eye and brain health, reduce eye fatigue and strain, support cognitive functions, and may help support normal sleep patterns. PhysIQ Fat Burn is a dietary supplement designed to support weight management, and PhysIQ Prebiotic is a dietary supplement designed to support a healthy digestive tract. Our Nrf2 enhanced TrueScience® line of anti-aging skin and hair care products includes TrueScience® TrueClean Refining Cleanser, TrueScience® TrueRenew Daily Firming Complex, TrueScience® TrueLift Illuminating Eye Cream, TrueScience® TrueHydrate Brightening Moisturizer, TrueScience® TrueTone Perfecting Lotion, TrueScience® TrueProtect Da…

Excerpt shortened here; the source contains the full paragraph.

Previous wording

We sell our products both individually and in stacks. A stack consists of multiple products bundled together that are designed to achieve a specific result. In fiscal year 2024, our stack strategy evolved with a focus on the brand message of Activation with three stacks that tell the unique LifeVantage Activation story from an inside-out approach. This builds upon the synergistic benefits that were demonstrated in fiscal year 2023 with our Healthy Glow Essentials stack. The Inside-Out Activation Duo features Nrf2 Synergizer® and TrueScience® TrueRenew Daily Firming Complex. This duo activates antioxidants for good health on the inside and a cleaner, kinder retinol alternative for skin that looks and feels healthy and youthful on the outside. The LifeVantage Activation Essentials Stack contains Nrf2 Synergizer® TrueScience® Liquid Collagen, and TrueScience® TrueRenew Daily Firming Complex. Finally our Healthy Glow + Activated Skin Care Collection contains Nrf2 Synergizer®, TrueScience® Liquid Collagen, and the full Activated Skin Care Collection. We continue to offer other popular packs such as the Vitality Stack (Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, LifeVantage® Omega+ and LifeVantage® ProBio), the Ultimate Stack (Vitality Stack + Protandim® NAD Synergizer® and PhysIQ Prebiotic), and the Protandim® Tri-Synergizer™ (Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, and Protandim® NAD Synergizer®).

Current wording

We sell our products both individually and in stacks. A stack consists of multiple products bundled together that are designed to achieve a specific result. In fiscal year 2024, our stack strategy evolved with a focus on the brand message of Activation with three stacks that tell the unique LifeVantage Activation story from an inside-out approach. This builds upon the synergistic benefits that were demonstrated in fiscal year 2023 with our Healthy Glow Essentials stack. The Inside-Out Activation Duo features Nrf2 Synergizer® and TrueScience® TrueRenew Daily Firming Complex. This duo activates antioxidants for good health on the inside and a cleaner, kinder retinol alternative for skin that looks and feels healthy and youthful on the outside. The LifeVantage Activation Essentials Stack contains Nrf2 Synergizer® TrueScience® Liquid Collagen, and TrueScience® TrueRenew Daily Firming Complex. Finally, our Healthy Glow + Activated Skin Care Collection contains Nrf2 Synergizer®, TrueScience® Liquid Collagen, and the full Activated Skin Care Collection. To build upon the energy created by our U.S. launch of MindBody GLP-1 System™ in October 2024, we introduced the Healthy Weight Stack containing the MindBody GLP-1 System™ and Protandim® Nrf2 Synergizer®, the Executive Stack containing the MindBody GLP-1 System™, TrueScience® Liquid Collagen, Protandim® Nrf2 Synergizer®, AXIO®, PhyisIQ Fat Burn and TrueScience® True Renew, the Premium Stack containing the MindBody GLP-1 System™, Protandim® Nrf2 Synergizer®, and TrueScience® Liquid Collagen and the Healthy Weight Pro Stack containing the MindBody GLP-1 System™, Protandim® Nrf2 Synergizer®, AXIO®and PhyisIQ Fat Burn. We continue to offer other popular packs such as the Vitality Stack (Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, LifeVantage® Omega+ and LifeVantage® ProBio), the Ultimate Stack (Vitality Stack + Protandim® NAD Synergizer® and PhysIQ Prebiotic), and the Protandim® Tri-Synergizer™ (Protandim® NRF1 Synergizer®, Protandim® Nrf2 Synergizer®, and Protandim® NAD Synergizer®).

Previous wording

On March 1, 2023, we launched a new compensation plan for our Independent Consultants in the United States, Japan, Australia, and New Zealand markets. We refer to this compensation plan as our Evolve Compensation Plan. On February 1, 2024, we launched the Evolve Compensation Plan in the Canada, Mexico, and Europe markets.

Current wording

On March 1, 2023, we launched a new compensation plan for our independent consultants in the United States, Japan, Australia, and New Zealand markets. We refer to this compensation plan as our Evolve Compensation Plan. On February 1, 2024, we launched the Evolve Compensation Plan in the Canada, Mexico, and Europe markets. On November 1, 2024 we launched an optimized version of the Evolve Compensation Plan in the United States, Japan, Australia, New Zealand, Canada, Mexico and Europe markets.

Previous wording

Three Months Ended September 30, 2024 and 2023

Current wording

Revenue. We generated net revenue of $67.8 million and $51.6 million during the three months ended December 31, 2024 and 2023, respectively. We generated net revenue of $115.0 million and $103.0 million during thesix months ended December 31, 2024 and 2023, respectively. The increase in revenue for the three and six months ended December 31, 2024 was primarily driven by sales of our MindBody GLP-1 System™, which launched in the U.S. market in October 2024. Foreign currency fluctuations negatively impacted our revenue by $0.3 million, or 0.6%, and $0.5 million or 0.5%, during the three and six months ended December 31, 2024.

Previous wording

Americas. The following table sets forth revenue for the three months ended September 30, 2024 and 2023 for the Americas region (in thousands):

Current wording

Americas. The following table sets forth revenue for the three and six months ended December 31, 2024 and 2023 for the Americas region (in thousands):

Previous wording

Asia/Pacific & Europe. The following table sets forth revenue for the three months ended September 30, 2024 and 2023 for the Asia/Pacific & Europe region and its principal markets (in thousands):

Current wording

Asia/Pacific & Europe. The following table sets forth revenue for the three and six months ended December 31, 2024 and 2023 for the Asia/Pacific & Europe region and its principal markets (in thousands):

Previous wording

Revenue in the Asia/Pacific & Europe region decreased $2.5 million, or 19.7%, for the three months ended September 30, 2024, as compared to the prior year period. Total Active Accounts in the region decreased 20.5% compared to the prior year period. Decreases in total Active Accounts, along with negative impacts from foreign currency exchange rate fluctuations, have contributed to the overall decrease in revenue within the Asia/Pacific & Europe region.

Current wording

Revenue in the Asia/Pacific & Europe region decreased $2.0 million, or 15.5%, and $4.5 million, or 17.6%, respectively, for the three and six months ended December 31, 2024, as compared to the prior year periods. Total Active Accounts in the region decreased 13.9% compared to the prior year period. Decreases in total Active Accounts, along with negative impacts from foreign currency exchange rate fluctuations, have contributed to the overall decrease in revenue within the Asia/Pacific & Europe region.

Previous wording

Overall, revenue in the Asia/Pacific & Europe region was negatively impacted by foreign currency exchange rate fluctuations in the amount of approximately $0.1 million, or 1.0%, during the three months ended September 30, 2024, as compared to the prior year period, mainly due to currency fluctuations in Japan. Revenue in Japan was negatively impacted by foreign exchange rate fluctuations in the amount of approximately $0.2 million, or 2.3%, during the three months ended September 30, 2024, as compared to the prior year period. Negative foreign exchange rate fluctuations in Japan were partially offset by gains in other markets. On a constant currency basis, revenue in Japan decreased 18.2% for the three months ended September 30, 2024, as compared to the prior year period. The decrease in revenue on a constant currency basis in Japan during three months ended September 30, 2024 was due to a 13.8% decrease in our Active Accounts in that region. The decrease was coupled with a decrease in the average revenue per account, primarily from a decrease in TrueScience®Liquid Collagen related revenue. Revenue related to TrueScience®Liquid Collagen was approximately $0.6 million for the three months ended September 30, 2024 compared to $1.1 million in the prior year period.

Current wording

Overall, revenue in the Asia/Pacific & Europe region was negatively impacted by foreign currency exchange rate fluctuations in the amount of approximately $0.2 million, or 1.8%, and $0.4 million, or 1.4%, during the three and six months ended December 31, 2024, respectively, as compared to the prior year periods, mainly due to currency fluctuations in Japan. Revenue in Japan was negatively impacted by foreign exchange rate fluctuations in the amount of approximately $0.2 million, or 2.9%, and $0.4 million, or 2.6%, during the three and six months ended December 31, 2024, respectively, as compared to the prior year periods. On a constant currency basis, revenue in Japan decreased 11.3% and 14.8% for the three and six months ended December 31, 2024, respectively, as compared to the prior year periods. The decrease in revenue on a constant currency basis in Japan during three and six months ended December 31, 2024 was due to decreases in in our Active Accounts in that region of 10.6% in each period, respectively. The decrease was coupled with a decrease in the average revenue per account, primarily from a decrease in TrueScience®Liquid Collagen related revenue. Revenue related to TrueScience®Liquid Collagen was approximately $0.7 million and $1.4 million for the three and six months ended December 31, 2024, respectively, compared to $1.8 million and $2.9 million in the prior year periods, respectively.

Previous wording

Globally, our sales and marketing efforts continue to be directed toward strengthening our core business through our fiscal year initiatives and building our worldwide sales. In October 2023, we relaunched our TrueScience® Skin Care line with entirely new branding premium packaging, and improved formulas. Rebranded as the TrueScience® Activated Skin Care Collection, this line includes TrueClean Refining Cleanser, TrueRenew Daily Firming Complex, TrueLift Illuminating Eye Cream, and TrueHydrate Brightening Moisturizer. This was a global launch in all markets. In the United States, we also launched TrueScience® TrueProtect Daily Mineral Sunstick, a broad-spectrum, 30 SPF mineral sunscreen that addresses the appearance of sun-induced hyperpigmentation and wrinkles as it protects against future damage. In October 2024, we launched our MindBody GLP-1 System TMin the United States. This is a dual-product solution designed to balance hunger hormones, build healthier habits, and help individuals reach and maintain their ideal weight. We will continue the refinement and expansion of our product offerings internationally during fiscal year 2025 and beyond. We expect this expansion will continue to drive revenue growth globally through increased average order size and increased ability to attract and retain new independent consultants and customers with a compelling product lineup.

Current wording

Globally, our sales and marketing efforts continue to be directed toward strengthening our core business through our fiscal year initiatives and building our worldwide sales. We plan to continue the refinement and expansion of our product offerings internationally, including our MindBody GLP-1 System™, during the second half of fiscal year 2025 and beyond. We expect this expansion will continue to drive revenue growth globally through increased average order size and increased ability to attract and retain new independent consultants and customers with a compelling product lineup.

Previous wording

Cost of Sales. Cost of sales were $9.5 million and $10.2 million for the three months ended September 30, 2024 and 2023, respectively, resulting in gross profit percentages of 79.9% and 80.2%, respectively. The increase in cost of sales as a percentage of revenue is primarily due to a shift in product mix, changes in raw material and manufacturing related costs, shipping to customer expenses, and warehouse fulfillment expenses during the three months ended September 30, 2024.

Current wording

Cost of Sales. Cost of sales were $13.2 million and $11.1 million for the three months ended December 31, 2024 and 2023, respectively, resulting in gross profit percentages of 80.5% and 78.6%, respectively. Cost of sales were $22.7 million and $21.2 million for thesix months ended December 31, 2024 and 2023, respectively, resulting in gross profit percentages of 80.3% and 79.4%, respectively. The decrease in cost of sales as a percentage of revenue is primarily due to a shift in product sales mix, lower inventory obsolescence expense, and lower inventory variance expenses during the three and six months ended December 31, 2024.

Previous wording

Commissions and Incentives. Commissions and incentives expenses during the three months ended September 30, 2024 were $20.3 million, or 43.0%, of revenue as compared to $22.5 million, or 43.8%, of revenue for the three months ended September 30, 2023. The decrease in commissions and incentives expenses as a percentage of revenue compared to the prior year period is due to changes in sales mix and the timing and magnitude of our various promotional and incentive programs.

Current wording

Commissions and Incentives. Commissions and incentives expenses during the three months ended December 31, 2024 were $32.5 million, or 48.0%, of revenue as compared to $21.8 million, or 42.1%, of revenue for the three months ended December 31, 2023. Commissions and incentives expenses during thesix months ended December 31, 2024 were $52.8 million, or 45.9%, of revenue as compared to $44.2 million, or 42.9%, of revenue for thesix months ended December 31, 2023. The increase in commissions and incentives expenses as a percentage of revenue compared to the prior year period is due to higher qualifications within existing promotional and incentive programs and changes in the sales mix within our Active Accounts between our independent consultants and customers.

Previous wording

Selling, General and Administrative. Selling, general and administrative expenses during the three months ended September 30, 2024 were $14.8 million, or 31.4%, of revenue as compared to $18.0 million, or 35.0%, of revenue for the three months ended September 30, 2023. The decrease in selling, general and administrative expenses as a percentage of revenue during the three months ended September 30, 2024 compared to the prior year period is primarily due to decreased proxy contest related expenses and the termination of our endorsement agreement with Real Salt Lake in December 2023.

Current wording

Selling, General and Administrative. Selling, general and administrative expenses during the three months ended December 31, 2024 were $18.6 million, or 27.5%, of revenue as compared to $20.1 million, or 38.9%, of revenue for the three months ended December 31, 2023. Selling, general and administrative expenses during the six months ended December 31, 2024 were $33.5 million, or 29.1%, of revenue as compared to $38.0 million, or 36.9%, of revenue for the six months ended December 31, 2023. The decrease in selling, general and administrative expenses as a percentage of revenue during the three and six months ended December 31, 2024 compared to the prior year period is primarily due to decreased proxy contest related expenses, the termination of our endorsement agreement with Real Salt Lake in December 2023, and timing of our annual convention. These decreases were partially offset by increases in the variable portion of employee related compensation expenses.

Previous wording

Total Other Income. During thethree months ended September 30, 2024 we recognized total net other income of $8,000 as compared to $0.1 million for thethree months ended September 30, 2023. Total net other income for the three months ended September 30, 2024 and 2023 consisted primarily of interest income, offset by foreign currency gains and losses.

Current wording

Total Other Income (Expense). During thethree months ended December 31, 2024 we recognized total net other expense of $0.3 million as compared to total net other income of $0.1 million for thethree months ended December 31, 2023. During thesix months ended December 31, 2024 we recognized total net other expense of $0.3 million as compared to total net other income of $0.2 million for thesix months ended December 31, 2023. Total net other income (expense) for the three and six months ended December 31, 2024 and 2023 consisted primarily of interest income, offset by foreign currency gains and losses.

Previous wording

Income Tax Expense. We recognized income tax expense of $0.8 million for the three months ended September 30, 2024, as compared to $0.2 million for the three months ended September 30, 2023. The effective tax rate for the three months ended September 30, 2024 was 29.2% compared to 24.1%for the three months ended September 30, 2023.

Current wording

Income Tax Expense. We recognized income tax expense of $0.5 million and $1.3 million for the three and six months ended December 31, 2024, as compared to an income tax benefit $0.5 million and $0.3 million for the three and six months ended December 31, 2023. The effective tax rate for the three and six months ended December 31, 2024 was 17.4% and 22.8%, respectively, compared to 41.0% and 90.5% for the three and six months ended December 31, 2023, respectively.

Previous wording

The change in the effective tax rate for the three months ended September 30, 2024 compared to the prior year period was primarily due to changes in taxable income and the impact of discrete items.

Current wording

The change in the effective tax rate for the three and six months ended December 31, 2024 compared to the prior year period was primarily due to changes in taxable income and the impact of discrete items.

Previous wording

As of September 30, 2024, our available liquidity was $14.6 million, which consisted of available cash and cash equivalents. This represents a decrease of $2.3 million from the $16.9 million in cash and cash equivalents as of June 30, 2024.

Current wording

As of December 31, 2024, our available liquidity was $21.6 million, which consisted of available cash and cash equivalents. This represents an increase of $4.7 million from the $16.9 million in cash and cash equivalents as of June 30, 2024.

Previous wording

During the three months ended September 30, 2024, our net cash used by operating activities was $0.6 million as compared to net cash provided by operating activities of $4.8 million during the three months ended September 30, 2023.

Current wording

During the six months ended December 31, 2024, our net cash provided by operating activities was $8.6 million as compared to $6.5 million during the six months ended December 31, 2023.

Previous wording

During the three months ended September 30, 2024, our net cash used in investing activities was $0.3 million, as a result of the purchase of fixed assets. During the three months ended September 30, 2023, our net cash used in investing activities was $1.1 million, as a result of the purchase of fixed assets.

Current wording

During the six months ended December 31, 2024, our net cash used in investing activities was $0.8 million, as a result of the purchase of fixed assets. During the six months ended December 31, 2023, our net cash used in investing activities was $1.7 million, as a result of the purchase of fixed assets.

Previous wording

Cash used in financing activities during the three months ended September 30, 2024 was $1.8 million as a result of our payment of cash dividends, repurchases of common stock, and shares purchased as payment of tax withholding upon vesting of equity awards, partially offset by proceeds from stock issued under our employee stock purchase plan. Cash used in financing activities during the three months ended September 30, 2023 was $6.7 million as a result of our payment of cash dividends, which consisted of a special one-time dividend, the repurchase of common stock, and shares purchased as payment of taxwithholding upon vesting of equity awards, partially offset by proceeds from stock issued under our employee stock purchase plan and stock option exercises.

Current wording

Cash used in financing activities during the six months ended December 31, 2024 was $3.2 million as a result of our payment of cash dividends, repurchases of common stock, and shares purchased as payment of tax withholding upon vesting of equity awards, partially offset by proceeds from stock issued under our 2019 Employee Stock Purchase Plan (as amended, the "2019 ESPP"). Cash used in financing activities during the six months ended December 31, 2023 was $9.2 million as a result of our payment of cash dividends, which consisted of a special one-time dividend, the repurchase of common stock, and shares purchased as payment of taxwithholding upon vesting of equity awards, partially offset by proceeds from stock issued under our 2019 ESPP and stock option exercises.

Previous wording

At September 30, 2024 and June 30, 2024, the total amount of our foreign subsidiary cashwas $7.2 millionand $7.3 million, respectively. The federal tax reform legislation that was passed into law during December 2017 enacted a 100% dividend deduction for greater than 10% owned foreign corporations. Therefore, in the future, if needed, we expect to be able to repatriate cash from foreign subsidiaries without paying additional U.S. taxes.

Current wording

At December 31, 2024 and June 30, 2024, the total amount of our foreign subsidiary cashwas $5.5 millionand $7.3 million, respectively. The federal tax reform legislation that was passed into law during December 2017 enacted a 100% dividend deduction for greater than 10% owned foreign corporations. Therefore, in the future, if needed, we expect to be able to repatriate cash from foreign subsidiaries without paying additional U.S. taxes.

Previous wording

At September 30, 2024, we had working capital (current assets minus current liabilities) of $16.7 million, compared to working capital of $15.3 million at June 30, 2024. We believe that our cash and cash equivalents balances and our ongoing cash flow from operations will be sufficient to satisfy our cash requirements for at least the next 12 months. The majority of our historical expenses have been variable in nature and as such, a potential reduction in the level of revenue would reduce our cash flow needs. In the event that our current cash balances and future cash flow from operations are not sufficient to meet our obligations or strategic needs, we would consider raising additional funds, which may not be available on terms that are acceptable to us, or at all. Our 2024 Credit Facility (as defined below), provides for a revolving line of credit in an aggregate principal amount not to exceed $5.0 million. We would also consider realigning our strategic plans including a reduction in capital spending and expenses.

Current wording

At December 31, 2024, we had working capital (current assets minus current liabilities) of $18.2 million, compared to working capital of $15.3 million at June 30, 2024. We believe that our cash and cash equivalents balances and our ongoing cash flow from operations will be sufficient to satisfy our cash requirements for at least the next 12 months. The majority of our historical expenses have been variable in nature and as such, a potential reduction in the level of revenue would reduce our cash flow needs. In the event that our current cash balances and future cash flow from operations are not sufficient to meet our obligations or strategic needs, we would consider raising additional funds, which may not be available on terms that are acceptable to us, or at all. Our 2024 Credit Facility (as defined below), provides for a revolving line of credit in an aggregate principal amount not to exceed $5.0 million. We would also consider realigning our strategic plans including a reduction in capital spending and expenses.