USANA HEALTH SCIENCES INC

As a critical driver of our competitive advantage in the global nutritional supplement industry, we focus our research and development (“R&D”) efforts on developing and bringing to market high-quality, science-based products that promote long-term health and wellness. Scientific innovation and rigorous product development enable us to deliver differentiated, high-quality products. Our R&D activities include identifying emerging trends, investigating new ingredients, developing products that are new to USANA and to the industry, and updating existing USANA-brand formulas to keep them current with the latest science and regulations in global markets, all of which ensure products are optimized to meet the changing, diverse needs of our global customer base. USANA R&D also supports product ideation, research, and formulation for our acquired businesses, Hiya and Rise.

Our team is composed of scientists experienced in human nutrition, cellular biology, biochemistry, biostatistics, the microbiome, neuroscience, aging, foods and cosmetic science, clinical research, and product development. Through strategic collaborations with academic institutions, independent research organizations, and healthcare professionals, along with reviewing the latest research on nutrition at scientific conferences and in journals, they work to identify possible new ingredients and product upgrade opportunities. Additionally, we employ experts in quality assurance, quality control, and global regulatory affairs to manage the entire product development lifecycle. These teams work in close partnership to ensure products are consistent, safe, and compliant with international regulations.

When developing and manufacturing our products, we follow the highest applicable industry quality standards across all stages of product development and manufacturing. Our ingredients are selected to ensure purity, potency, and efficacy. Quality control is maintained through controlled sourcing of raw ingredients, manufacturing, packaging, and labeling, as well as testing throughout the manufacturing process. This commitment to quality ensures our products meet or exceed the highest standards in the industry, builds customer trust, and reinforces the value of our brand.

We seek to differentiate ourselves in the marketplace by focusing on proprietary, science-backed formulations that consumers can trust. Our ability to develop innovative solutions tailored to specific regulatory and consumer requirements in diverse global markets, while consolidating formulas and ensuring manufacturing efficiencies, is a key factor in our international growth strategy. We leverage the diverse expertise of our team to address consumer needs while capitalizing on new opportunities in the nutritional supplement space. By combining strong scientific foundations with operational excellence, we enhance our ability to drive growth and deliver value to both our customers and shareholders.

The R&D team is instrumental in fortifying our proprietary position, employing exclusive ingredients, proprietary formulations, product-specific scientific validation, and patent protection. We maintain an active research pipeline that continues to support our proprietary InCelligence technology and utilize clinical research to drive advances in core health categories. These efforts ensure our product line is continuously evolving to address foundational health needs, including women’s health, cardiovascular support, support for vital body systems and organs, and healthy aging.

In fiscal years 2025, 2024, and 2023, we expended $10.7 million, $11.6 million, and $11.4 million, respectively, on product R&D activities. We launched over 15 new or upgraded products in 2025, continuing our push to accelerate product development timelines through streamlined collaboration and more efficient processes. We expect to continue investing in R&D to advance our expertise and leadership in cellular nutrition, as well as overall health and wellness. In 2026, we plan to continue investing into early-stage research and scientific innovation.