NATURAL HEALTH TRENDS CORP
For the period ended Mar 31, 2025. Filed Apr 30, 2025.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Mar 31, 2025 · Filed Apr 30, 2025
NHTC$0.77-9.3%Stored close · as of Nov 6, 2026
What changed in Management’s Discussion and Analysis?
Read the current filingPrevious report: 10-Q
Period ended 2024-09-30; filed 2024-10-30.
0001437749-24-032546
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsCurrent report: 10-Q
Period ended 2025-03-31; filed 2025-04-30.
0001437749-25-013645
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of OperationsThe baseline is this issuer’s latest earlier reporting period of the same form that was filed before the current report. A previous 10-Q is a different quarter, not a year-over-year comparison. Amendments are excluded.
Compared 51 previous paragraphs and 49 current paragraphs.
29 unchanged; 16 reworded; 4 added; 6 removed; 0 previous and 0 current paragraphs rearranged.
Tables are not compared: 4 previous and 4 current tables excluded. Dates, whitespace, punctuation and numbering changes are ignored; changes to financial figures remain significant.
A changed paragraph is not evidence that risk increased or decreased. An unchanged paragraph does not establish that risk stayed the same.
Added paragraphs (4)
Current report
In addition to the fact that our Hong Kong subsidiary generates a substantial portion of our overall business, a significant number of our employees are based in Hong Kong. The political and economic landscape in Hong Kong has in recent years undergone significant change, largely due to the increasing influence of the Chinese government. This development, along with the impact of the COVID-19 pandemic, led us to cease conducting member meetings and events in Hong Kong for a period of time. We have since been able to substantially resume normal operations in Hong Kong, but Hong Kong's economy is now increasingly integrated with that of China. We relocated our corporate headquarters from Hong Kong to California in February 2025. It is unclear how changed circumstances in Hong Kong will in the future affect our business, but it is possible that the upheaval in Hong Kong's political and economic affairs or related consequences could adversely affect our future business, results of operations and financial condition. See “Item 1A. Risk Factors - Hong Kong's political and economic landscape has in recent years undergone significant change...” in our most recent Annual Report on Form 10-K.
Current report
In the first quarter of 2025, the U.S. announced and/or implemented significant new tariffs on imports from a wide range of countries, particularly China. While the U.S. has taken steps to delay the implementation of certain of these tariffs against many countries, significant new tariffs on goods imported from China were not included in the delay. Recently, in response to the U.S. tariffs on Chinese imports, China raised its duties on imported U.S. goods to 124%. The Company does not believe that its first quarter 2025 financial results were materially affected by these developments. Assuming the tariffs remain in place, the Company may begin to see the effect of higher duties on restocking later this year. The likely short term impact of the tariffs is difficult to predict with any certainty, however. We may need to impose a surcharge on products sold into China, and the imposition of such a surcharge may have a negative effect on sales volumes into China. In the longer term, the Company is exploring the sourcing of certain of its products currently manufactured in the United States to other jurisdictions, including in Asia, in order to mitigate the effect of U.S. and reciprocal tariffs. If successfully implemented, this transition may result in savings in logistics, freight and manufacturing cost, but may also carry certain short-term expenses, including the cost of reregistration of products in certain jurisdictions. The Company is actively evaluating its options and the impact of trade policy changes on future quarters remains uncertain. In addition, it is difficult to predict the effect of general consumer sentiment in China toward the Company’s products as a result of the trade policies adopted by the United States and China. See Part II, “Item 1A. Risk Factors” in Part II of this Quarterly Report on Form 10-Q.
Current report
Gross profit was 73.6% of net sales for the three months ended March 31, 2025, a slight improvement compared with 73.4% of net sales forthe three months ended March 31, 2024.
Current report
Cash provided by operations was$484,000 for the first three months of 2025, compared to $549,000 provided by operations for the first three months of 2024.
Removed paragraphs (6)
Previous report
Although the 100-day campaign was due to expire in April 2019, we are not aware of any information indicating that the campaign has formally concluded. However, the Chinese government subsequently announced that it would conduct a “look-back review” to evaluate the 100-day campaign. As part of this review, we understand that various Chinese governmental agencies formed a working group to assess the 100-day campaign, particularly focusing on the health market and its supervision in certain provinces. We understand that during September 2019 the working group evaluated the performance and results of a number of organizations and governmental departments in these provinces and made recommendations for various improvements. It was noted that each province had opened a number of investigative cases, had successfully closed numerous cases, and had imposed various fines and penalties. We understand that the look-back review continued after September 2019, and we are not aware that this review has been completed. As a result, the business environment in China for health product companies continues to be challenging, which has been exacerbated by negative social media sentiment expressed for these types of companies. We believe that the campaign, as well as its extension and aftermath (including the look-back review), will continue to negatively impact our business in China in the near-term, but will ultimately benefit us and Chinese consumers in the long-term as purveyors of substandard products are driven from the market.
Previous report
In late 2019 or early 2020 an outbreak of COVID-19 was first identified in China and subsequently spread around the world. On March 11, 2020 the World Health Organization declared the COVID-19 outbreak a global pandemic. The outbreak caused the Chinese government to implement powerful measures to control the virus, such as requiring businesses to close throughout various areas of China and restricting public gatherings and certain travel within the country. We have significant business in China and in 2023 generated approximately 79% of our revenue in Hong Kong, substantially all of which was derived from the sale of products to members in China. Over the course of the pandemic, we took steps to adapt some of our marketing programs, such as relying on certain product promotions and webcast training, to overcome the physical restrictions imposed in response to the pandemic. In late 2022, the Chinese and Hong Kong governments took comprehensive steps to relax many of their COVID-19 control measures, although the cumulative effect of the disruptions associated with the pandemic materially negatively impacted our financial results from 2020 through 2022. This less restrictive business environment in China and Hong Kong continued throughout 2023 and the first nine months of 2024, and we have been able to sponsor in-person member events in China, Hong Kong and/or Macau during each quarter since the first quarter of 2023. We are continuing to plan and sponsor more such events consistent with normal operations. Nevertheless, it may be too early to accurately predict the impact on us and our third-party providers of this relaxation of control measures and whether it will prove enduring. Ultimately, the severity of the impact on us of the COVID-19 pandemic will depend on future developments, including the duration and spread of the virus, and the related control measures, which we are unable to accurately predict. See “Item 1A. Risk Factors - Epidemics, such as the COVID-19 pandemic, or natural disasters, terrorist attacks or acts of war…” in our most recent Annual Report on Form 10-K.
Previous report
Recent political and social developments in Hong Kong, along with the impact of the COVID-19 pandemic and related government control measures, are also adversely affecting our Hong Kong operations and led us in 2020 to cease sponsoring member meetings and events in Hong Kong. Inasmuch as member meetings and events located in Hong Kong have in the past served as an important component of our product marketing and distribution efforts, we believe that these developments negatively affected our past operations and financial performance. Although we have been able to sponsor in-person member events in Hong Kong in recent quarters, it may be too early to predict whether these developments will continue to adversely affect our overall business, results of operations and financial condition. See “Item 1A. Risk Factors - Our Hong Kong operations are being adversely affected by recent political and social developments in Hong Kong...” in our most recent Annual Report on Form 10-K.
Previous report
Net sales were $32.1 million for thenine months ended September 30, 2024 compared with $33.0 million for the comparable period a year ago, a decrease of $870,000, or 3%. Hong Kong net sales, substantially all of which were derived from the sale of products shipped to members residing in China, were almost the same for each of the nine-month periods, decreasing $393,000, or 1%, over the comparable period a year ago. Hong Kong net sales were also adversely affected by the recognition of lower administrative fees in the current-year period, as compared to the prior-year period last year, as increased activity within member electronic wallet (eWallet) accounts resulted in less fees assessed during the current-year period. Outside of our Hong Kong business, net sales decreased $477,000, or 7%, over the comparable nine-month period a year ago, primarily due to the decreased period-over-period net sales in our business in the Americas (which was somewhat offset by increased period-over-period net sales in our Chinese e-commerce retail business). As of September 30, 2024, deferred revenue was $6.8 million, which consisted of $5.2 million pertaining to unshipped product orders and unredeemed product vouchers, as well as $1.6 million in auto ship advances.
Previous report
Gross profit was 74.1% of net sales for the three months ended September 30, 2024 compared with 74.7% of net sales forthe three months ended September 30, 2023. Gross profit was 73.9% of net sales for thenine months ended September 30, 2024 compared with 74.6% of net sales for thenine months ended September 30, 2023. The decline in gross profit margin for both the three andnine-month periods ended September 30, 2024 was primarily attributable to higher costs related to our Premium Noni Juice product.
Previous report
Cash used in operations was$3.5 million for the first nine months of 2024 compared with $4.2 million for the first nine months of 2023. Income tax paid during April 2024 and April 2023 for the repatriation tax on the deemed repatriation of deferred foreign income was $4.0 million and $3.0 million, respectively. Disregarding these payments, cash flows from operations improved $1.7 million primarily due to improved management of inventories and operating costs during the first nine months of 2024 as compared to the same period last year, as well as a timing difference related to weekly commission outflows.
Reworded paragraphs (16)
Previous wording
We are an international direct-selling and e-commerce company. Subsidiaries controlled by us sell personal care, wellness, and “quality of life” products under the “NHT Global” brand. Our wholly-owned subsidiaries have an active physical presence in the following markets: the Americas, which consists of the United States, Canada, Cayman Islands, Mexico and Peru; Greater China, which consists of Hong Kong, Taiwan and China; Southeast Asia, which consists of Malaysia, Singapore and Thailand; South Korea; Japan; India; and Europe. We also operate in Russia and Kazakhstan through our engagement with a local service provider.
Current wording
We are an international direct-selling and e-commerce company. Subsidiaries controlled by us sell personal care, wellness, and “quality of life” products under the “NHT Global” brand. Our wholly-owned subsidiaries have an active physical presence in the following markets: the Americas, which consists of the United States, Canada, Cayman Islands, Mexico, Peru and Colombia; Greater China, which consists of Hong Kong, Taiwan and China; Southeast Asia, which consists of Malaysia and Singapore; South Korea; Japan; India; and Europe. We also operate in Russia and Kazakhstan through our engagement with a local service provider.
Previous wording
As of September 30, 2024, we were conducting business through 30,880 active members, compared to 32,410 at December 31, 2023 and 34,660 at September 30, 2023. We consider a member “active” if they have placed at least one product order with us during the preceding year. Our priority is to focus our resources in our most promising markets, which we consider to be Greater China and countries where our existing members have the connections to recruit prospects and sell our products, such as Southeast Asia, India, South America and Europe.
Current wording
As of March 31, 2025, we were conducting business through 30,180 active members, compared to 30,870 at December 31, 2024 and 31,620 at March 31, 2024. We consider a member “active” if they have placed at least one product order with us during the preceding year. Our priority is to focus our resources in our most promising markets, which we consider to be Greater China and countries where our existing members have the connections to recruit prospects and sell our products, such as Southeast Asia, India, South America and Europe.
Previous wording
We generate approximately 93% of our net sales from subsidiaries located outside the Americas, with sales of our Hong Kong subsidiary representing 78% of net sales in the latest fiscal quarter. Because of the size of our foreign operations, operating results can be impacted negatively or positively by factors such as foreign currency fluctuations, inflation rates, and economic, political and business conditions around the world. In addition, our business is subject to various laws and regulations, in particular, regulations related to direct selling activities that create uncertain risks for our business, including improper claims or activities by our members and our potential inability to obtain necessary product registrations. We continually evaluate our business for compliance with applicable laws and regulations, and this process can and has resulted in the identification of certain matters of potential noncompliance, which we work to satisfactorily address. For further information regarding some of the risks associated with the conduct of our business in China and Hong Kong, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2023, and more specifically under the captions “Because our Hong Kong operations account for a substantial portion of our overall business...”, “Our Hong Kong operations are being adversely affected by recent political and social developments in Hong Kong...”, and “Our business in China is subject to compliance with a myriad of applicable laws and regulations...”.
Current wording
We generate approximately 94% of our net sales from subsidiaries located outside the Americas, with sales of our Hong Kong subsidiary representing 85% of net sales in our latest fiscal quarter. Because of the size of our foreign operations, operating results can be impacted negatively or positively by factors such as foreign currency fluctuations, trade policy, inflation rates, and economic, political and business conditions around the world. In addition, our business is subject to various laws and regulations, in particular, regulations related to direct selling activities that create uncertain risks for our business, including improper claims or activities by our members and our potential inability to obtain necessary product registrations. We continually evaluate our business for compliance with applicable laws and regulations, and this process can and has resulted in the identification of certain matters of potential noncompliance, which we work to satisfactorily address. For further information regarding some of the risks associated with the conduct of our business in China and Hong Kong, see “Item 1A. Risk Factors” in our Annual Report on Form 10-K for the year ended December 31, 2024, and more specifically under the captions “Because our Hong Kong operations account for a substantial portion of our overall business...”, “Hong Kong’s political and economic landscape has in recent years undergone significant change...”, and “Our business in China is subject to compliance with a myriad of applicable laws and regulations...”.
Previous wording
China has been and continues to be our most important business development project. We operate an e-commerce direct selling platform in Hong Kong that generates revenue derived from the sale of products to members in Hong Kong and elsewhere, including China. Substantially all of our Hong Kong revenues are derived from the sale of products that are delivered to members in China. Through a separate Chinese entity, we operate an e-commerce retail platform in China. We believe that neither of these activities require a direct selling license in China, which we do not currently hold. We previously submitted a preliminary application for a direct selling license in China, but in 2019 a Chinese governmental authority recommended that we withdraw our application. We expect to reapply for a direct selling license in China when we believe that circumstances are again ripe for doing so. If we are ultimately able to obtain a direct selling license in China, we believe that the incentives inherent in the direct selling model in China would incrementally benefit our existing business. We do not expect that any increased sales in China derived from obtaining a direct selling license would initially be material and, in any event may be partially offset by the higher fixed costs associated with the establishment and maintenance of required service centers, branch offices, manufacturing facilities, certification programs and other legal requirements. We are unable to predict whether and when we will be successful in obtaining a direct selling license to operate in China, and if we are successful, when we will be permitted to conduct direct selling operations and whether such operations would be profitable.
Current wording
China has been and continues to be our most important business development project. We operate an e-commerce direct selling platform in Hong Kong that in the first quarter of 2025 generated approximately 85% of our revenue, substantially all of which was derived from the sale of products that are delivered to members in China. Through a separate Chinese entity, we also operate an e-commerce retail platform in China. We believe that neither of these activities require a direct selling license in China, which we do not currently hold. We previously submitted a preliminary application for a direct selling license in China, but withdrew our application in 2019 upon the recommendation of a Chinese governmental authority. We expect to reapply for a direct selling license in China when we believe that circumstances are again ripe for doing so. If we are ultimately able to obtain a direct selling license in China, we believe that the incentives inherent in the direct selling model in China would incrementally benefit our existing business. We do not expect that any increased sales in China derived from obtaining a direct selling license would initially be material and, in any event may be partially offset by the higher fixed costs associated with the establishment and maintenance of required service centers, branch offices, manufacturing facilities, certification programs and other legal requirements. We are unable to predict whether and when we will be successful in obtaining a direct selling license to operate in China, and if we are successful, when we will be permitted to conduct direct selling operations and whether such operations would be profitable.
Previous wording
In January 2019 the Chinese government announced a 100-day campaign focused on companies involved in the sale of food, equipment, daily necessities, small home electrical appliances and services that are claimed to promote health. The Chinese government ministries in charge of this campaign indicated that they were targeting illegal practices in the industry, particularly the manufacture and sale of counterfeit and substandard products, and false advertising and misleading claims as to the health benefits of products and services. It is understood that the campaign was specifically focused on the business practices of direct selling companies. The campaign and associated negative media coverage resulted in a significant adverse impact on our business, as consumers widely curtailed their purchases within the affected industries. We, like some of our peers, voluntarily decided in January 2019 to temporarily suspend our member activities, such as product roadshows, product trainings and larger company-sponsored events, in China. We did this because we learned that the 100-day campaign was announced in broad outlines by the central government, and the interpretation and enforcement of the campaign was delegated to the provincial and local governments. We consider it a top priority for our business to develop an understanding of and cooperate with all levels and jurisdictions of the government agencies, and did not want to run the risk of being inadvertently entangled in government enforcement actions as the provincial and local governments formulate and implement their interpretive guidance and rule-making. Although we have been able to relax some restrictions on member activities in certain markets, it may again in the future be necessary or advisable to suspend member activities or take similar actions from time to time, and such periods of reduced activity may have a material adverse effect on our business.
Current wording
The Chinese government conducted a campaign in 2019 focusing on companies involved in the sale of food, equipment, daily necessities, small home electrical appliances and services that are claimed to promote health. The Chinese government ministries in charge of this campaign indicated that they were targeting illegal practices in the industry, particularly the manufacture and sale of counterfeit and substandard products, and false advertising and misleading claims as to the health benefits of products and services. It is understood that the campaign was specifically focused on the business practices of direct selling companies. Although it was initially announced as a 100-day campaign, we are not aware of any information indicating that the campaign has ever been formally concluded. In any case, the business environment in China for health product companies can be challenging, which has from time to time been exacerbated by negative social media sentiment expressed for these types of companies.
Previous wording
Under our current compensation plan, certain of our commission payouts may be limited to a hard cap dollar amount per week or a specific percentage of total product sales. In some markets, commissions may be further limited. In some markets, we also pay certain bonuses on purchases by up to three generations of personally sponsored members, as well as bonuses on commissions earned by up to seven generations of personally sponsored members. Members can also earn additional income, trips and other prizes in specific time-limited promotions and contests we hold from time to time. Member commissions are dependent on the sales mix and, for the first nine months of 2024 and 2023, represented 41% and 42% of net sales, respectively. Occasionally, we make modifications and enhancements to our compensation plan to help motivate members, which can have an impact on member commissions. We may also enter into performance-based agreements for business or market development, which can result in additional compensation to specific members.
Current wording
Under our current compensation plan, certain of our commission payouts may be limited to a hard cap dollar amount per week or a specific percentage of total product sales. In some markets, commissions may be further limited. In some markets, we also pay certain bonuses on purchases by up to three generations of personally sponsored members, as well as bonuses on commissions earned by up to seven generations of personally sponsored members. Members can also earn additional income, trips and other prizes in specific time-limited promotions and contests we hold from time to time. Member commissions are dependent on the sales mix and, for the first three months of 2025 and 2024, represented 42% and 41% of net sales, respectively. Occasionally, we make modifications and enhancements to our compensation plan to help motivate members, which can have an impact on member commissions. We may also enter into performance-based agreements for business or market development, which can result in additional compensation to specific members.
Previous wording
1 United States, Canada, Mexico and Peru
Current wording
1 United States, Canada, Mexico, Peru and Colombia.
Previous wording
Net sales were$10.7 million for the three months ended September 30, 2024 compared with $10.6 million for the comparable period a year ago, an increase of $76,000, or 1%. Hong Kong net sales, substantially all of which were derived from the sale of products shipped to members residing in China, were almost the same for each of the three-month periods, decreasing $56,000, or less than 1%, over the comparable period a year ago. Outside of our Hong Kong business, net sales increased $132,000, or 6%, over the comparable three-month period a year ago, primarily due to the increased quarter-over-quarter net sales in our Chinese e-commerce retail business.
Current wording
Net sales were$10.7 million for the three months ended March 31, 2025 compared with $11.0 million for the comparable period a year ago, a decrease of $214,000, or 2%. Hong Kong net sales, substantially all of which were derived from the sale of products shipped to members residing in China, were almost the same for each of the three-month periods, decreasing $51,000, or less than 1%, over the comparable period a year ago. Outside of our Hong Kong business, net sales decreased $163,000, or 9%, over the comparable three-month period a year ago, primarily due to the decreased quarter-over-quarter net sales in our Chinese e-commerce retail business. As of March 31, 2025, deferred revenue was $6.9 million, which consisted of $5.4 million pertaining to unshipped product orders and unredeemed product vouchers, as well as $1.5 million in auto ship advances.
Previous wording
Commissions were 40.5% of net sales for the three months ended September 30, 2024 compared with 41.1% of net sales for the three months ended September 30, 2023. Commissions were 40.5% of net sales for the nine months ended September 30, 2024 compared with 42.0% of net sales for thenine months ended September 30, 2023. The decline in commissions as a percentage of net sales during both the three andnine-month periods ended September 30, 2024 was primarily due to lower weekly commissions earned outside of our Hong Kong business.
Current wording
Commissions were 41.8% of net sales for the three months ended March 31, 2025 compared with 41.0% of net sales for the three months ended March 31, 2024. The increase in commissions as a percentage of net sales during thethree-month period ended March 31, 2025 was primarily due to higher weekly commissions earned by our members during the first quarter of 2025.
Previous wording
Selling, general and administrative expenses were $3.9 million for each of the three-month periods ended September 30, 2024 and 2023. Selling, general and administra tive expenses decreased to $11.6 million for thenine-month period ended September 30, 2024, as compared to $12.2 million in the same period a year ago. The decrease for thenine-month period was primarily due to lower professional fees and insurance expense. Selling, general and administrative expenses as a percentage of net sales for the three-month period ended September 30, 2024 were roughly the same as the comparable period in the prior year and were modestly lower for the nine-month period ended September 30, 2024 than the same period a year ago.
Current wording
Selling, general and administrative expenses declined by $156,000 to $3.8 million for the three months ended March 31, 2025 as compared with $3.9 million for the three months ended March 31, 2024. The decrease was primarily due to lower employee-related expenses. Selling, general and administrative expenses as a percentage of net sales for the three-month period ended March 31, 2025 were modestly lower as compared with the same period a year ago.
Previous wording
Other income was $441,000 for the three months ended September 30, 2024 compared with $585,000 in the same period a year ago. Other income was $1.5 million and $1.7 million for each of thenine-month periods ended September 30, 2024 and 2023, respectively. The decrease for both the three- and nine-month periods ended September 30, 2024 was primarily due to less interest income earned during each of the current year periods.
Current wording
Other income was $465,000 for the three months ended March 31, 2025 compared with $563,000 in the same period a year ago. The decreasewas primarily due to less interest income earned during the current year period.
Previous wording
An income tax provision of $131,000 and $121,000 were recognized during the three months ended September 30, 2024 and 2023, respectively. An income tax provision of $249,000 and $69,000 were recognized during thenine months ended September 30, 2024 and 2023, respectively. The tax provision during each of the three- and nine-month periods ended September 30, 2024 and 2023 primarily resulted from foreign income inclusions, such as global intangible low-taxed income (“GILTI”) and Subpart F income, tax benefits in foreign jurisdictions and year-to-date consolidated income through September 30, 2024 and 2023, respectively.
Current wording
An income tax benefit of $2,000 and an income tax provision of $10,000 were recognized during the three months ended March 31, 2025 and 2024, respectively. The tax provision during each of the three-month periods ended March 31, 2025 and 2024 primarily resulted from foreign income inclusions, such as global intangible low-taxed income (“GILTI”) and Subpart F income, and year-to-date consolidated income through March 31, 2025 and 2024, respectively, as well as prior year foreign return to provision true-ups.
Previous wording
At September 30, 2024, our cash, cash equivalents and marketable securities totaled $46.3 million. Total cash, cash equivalents and marketable securities decreased by $9.9 million from December 31, 2023 to September 30, 2024 due to the dividends paid during the first nine months of 2024 and the payment of the repatriation tax on the deemed repatriation of deferred foreign income as required by the U.S. Tax Cuts and Jobs Act. We consider all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. As of September 30, 2024, we had $37.9 million in available-for-sale investments classified as either cash equivalents or marketable securities. In addition, cash and cash equivalents included $3.8 million held in banks located within China subject to foreign currency controls.
Current wording
At March 31, 2025, our cash, cash equivalents and marketable securities totaled $41.9 million. Total cash, cash equivalents and marketable securities decreased by $2.0 million from December 31, 2024 to March 31, 2025 due to the dividends paid during the first three months of 2025. We consider all highly liquid investments with original maturities of three months or less, when purchased, to be cash equivalents. As of March 31, 2025, we had $34.1 million in available-for-sale investments classified as either cash equivalents or marketable securities. In addition, cash and cash equivalents included $3.2 million held in banks located within China subject to foreign currency controls.
Previous wording
As of September 30, 2024, the ratio of current assets to current liabilities was 2.6 to 1.0 and we had $32.7 million of working capital. Working capital as of September 30, 2024 decreased $11.5 million compared to our working capital as of December 31, 2023.
Current wording
As of March 31, 2025, the ratio of current assets to current liabilities was 2.4 to 1.0 and we had $28.1 million of working capital. Working capital as of March 31, 2025 decreased $2.1 million compared to our working capital as of December 31, 2024.
Previous wording
Cash flows used in investing activities totaled $23.1 million and $32,000 during the first nine months of 2024 and 2023, respectively. During the first nine months of 2024, we purchased $44.8 million in marketable securities with original maturities greater than three months, and as such, reflect these purchases as an investing activity. These purchases of marketable securities were offset by $21.8 million of proceeds received from maturities of marketable securities.
Current wording
Cash flows provided by investing activities totaled $10.0 million during thefirst three months of 2025 compared with cash flows used in investing activities of $28.5 million during the first three months a year ago. During the first three months of 2025, we purchased $17.4 million in marketable securities with original maturities greater than three months, and as such, reflect these purchases as an investing activity. These purchases of marketable securities were offset by $27.4 million of proceeds received from maturities of marketable securities.
Previous wording
Cash flows used in financing activities during the first nine months of 2024 and 2023 consisted solely of quarterly dividend payments of $0.20 per common share, totaling $6.9 million in each period. Subsequent to September 30, 2024, on October 28, 2024, the Board of Directors declared another quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on November 22, 2024 to stockholders of record on November 12, 2024. We expect to continue paying a quarterly cash dividend of $0.20 on each share of common stock outstanding for the foreseeable future. However, any future cash dividends will be at the sole discretion of the Company’s Board of Directors, and will depend on our financial condition, results of operations, capital requirements and other factors considered relevant by the Board of Directors.
Current wording
Cash flows used in financing activities during the first three months of 2025 and 2024 consisted solely of quarterly dividend payments of $0.20 per common share, totaling $2.3 million in each period. Subsequent to March 31, 2025, on April 28, 2025, the Board of Directors declared another quarterly cash dividend of $0.20 on each share of common stock outstanding. The dividend will be payable on May 23, 2025 to stockholders of record on May 13, 2025. We expect to continue paying a quarterly cash dividend of $0.20 on each share of common stock outstanding for the foreseeable future. However, any future cash dividends will be at the sole discretion of the Company’s Board of Directors, and will depend on our financial condition, results of operations, capital requirements and other factors considered relevant by the Board of Directors.