Thank you for standing by. I would like to welcome you to the Mannatech, Incorporated annual meeting. I would now like to turn the conference over to Landen Fredrick, President and CEO. Please go ahead. Good morning, and welcome to the 2026 annual shareholders' meeting of Mannatech, Incorporated. I am Landen Fredrick, President and Chief Executive Officer of Mannatech. We're excited to be hosting our virtual shareholders' meeting, allowing us to reach a greater number of our shareholders. We have shareholders attending via the web portal and the 800 number that we have provided. You will find the rules of conduct and procedures for today's meeting posted to the web portal. As is our custom, we will conduct the business portion of our meeting first and answer questions at the end of the meeting. Though we may not be able to answer every question, we will do our best to provide a response to as many as possible and will address any unanswered questions on our corporate website shortly after the meeting. It is now my pleasure to introduce Mr. J. Stanley Fredrick, our Chairman of the Board, who will be presiding over today's meeting. Well, thank you, Landen. In keeping with the digital approach to this year's meeting, it is now 9:01 A.M. Central Time on June 2nd, 2026, and this meeting is officially called to order. At this time, I would like to introduce our senior executive officers. You just met Mr. Landen Fredrick, our President and Chief Executive Officer, Mrs. Erin Barta, our General Counsel and Corporate Secretary, and then Mr. Yasir Haider, our Interim Chief Financial Officer. Now I would like to introduce the other members of the board present today. Mr. Larry A. Jobe is an independent board member for Mannatech and Chair of Mannatech's Audit Committee. He is also a member of the Compensation and Stock Option Plan, Nominating Governance and Compliance, and Science and Marketing Committees. Mr. Jobe previously served as Chairman of the Independent Bank of Texas. Mr. Tyler Runnels is an independent board member and is Chair of the Nominating Governance and Compliance Committee, and is a member of the Audit Committee, as well as the Compensation and Stock Option Plan and the Science and Marketing Committee. Mr. Rameson is the managing member of J Capital LLC, a private investment firm. Mr. Kevin Robbins is a Silver Presidential and Mannatech Associate. He is the Chairman of Mannatech's Science and Marketing Committee. He provides valuable insight into the board on issues affecting our independent associates. He is the son of Mannatech's co-founder, Mr. Ray Robbins. John Seifrick is an independent board member and is Chairman of Mannatech's Compensation and Stock Option Plan Committee. He also serves as a member of the Audit, Nominating Governance and Compliance, and Science and Marketing Committee. Mr. Seifrick was the founder and served as Chairman of the Board of Professional Bank. He is the co-founder and current President General Manager of CAST Wines. Mr. Bob Toth is an independent board member. He is the Vice Chairman of the Board, as well as being a member of the Audit, Compensation and Stock Option Plan, and the Nominating Governance and Compliance, and the Science and Marketing Committee. Mr. Toth is a retired president of Avon International. Now I'd like to introduce our external counsel, auditors, and independent inspector of election. We're joined here today by Richard Lowe, a partner at Shackelford, McKinley & Norton, our outside legal firm. We are also joined here today by Mr. Chris Dilley and Mr. Lennon Jacinto from BDO USA, P.C., our independent auditing and accounting firm. These representatives will be available during the question and answer session after the meeting to respond to appropriate questions. Finally, the company has appointed Broadridge Financial Solutions to act as Inspector of Election. Ms. Anne St. Martin from Broadridge is with us today and has taken the oath of Inspector of Election earlier today. After the formal meeting has been adjourned, we will provide time for general questions. Only validated shareholders may ask questions in the designated field on the web portal. Out of consideration for others, please limit yourself to one question. Please note that this meeting is being recorded. However, no one attending via the webcast or telephone is permitted to use any audio recording device. At this time, Ms. Erin Barta, our General Counsel and the Corporate Secretary, will present the report of distribution. Mr. Chairman, I present the affidavit of distribution. The Board of Directors fixed April 6th, 2026 as the record date for determining shareholders entitled to vote at this meeting. An affidavit has been delivered attesting to the fact that either, one A notice of internet availability of the notice of the meeting, the proxy statement, and the annual report to shareholders, or two, the documents themselves were mailed on or about April 21st, 2026, to all shareholders as of the record date and will be incorporated into the minutes of this meeting. Thank you, Ms. Barta. The report of distribution is accepted, and I direct that the affidavit of distribution officially be made a part of the minutes of our 2026 annual shareholders' meeting. At this time, would the Inspector of Election please present the preliminary attendance report? The stockholder list shows that as of the record date, there were 1,929,670 shares of common stock outstanding as of April 6th, 2026, and entitled to vote at this meeting. There are represented in person or by proxy shares of common stock representing 1,369,880 votes, or approximately 71% of the voting power on the record date. Since this represents more than a majority of the voting power of all issued and outstanding stock entitled to vote on the record date, a quorum is present for purposes of transacting business. Thank you. Since a majority of Mannatech's shares are represented here today, a quorum is present, and this meeting is duly constituted, and the business of this meeting may proceed. Now I will present the matters to be voted upon. Please note that we will give shareholders an opportunity to comment on the proposals themselves after all proposals have been presented. Proposal one is the election of our Class III directors, John A. Seifrick and Robert Toth. Our board of directors is divided into three classes with no difference between the classes except the expiration date of the three-year term served by the members of each class. Once elected, our Class III directors' term will expire on the earlier of the date of the 2029 annual meeting of shareholders or the day of such director's disqualification, resignation, death, or removal. Remember, directors will be elected by a plurality of the votes cast by the shareholders of our common stock represented either in person or proxy at this meeting. Proposal two is the ratification of the appointment of BDO USA, P.C. as our independent registered public accounting firm for the fiscal year ending December 31, 2026. Ratification of the appointment of BDO USA, P.C. as our independent registered public accounting firm requires an affirmative vote by a majority of the outstanding shares of our common stock entitled to vote on this matter, represented either in person or by proxy at this meeting. Proposal three is the approval of a non-binding advisory resolution to approve the compensation program for our named executive officers, otherwise known as say on pay. Accordingly, the following say on pay resolution is submitted. Resolved that the shareholders of Mannatech, Incorporated approve, on an advisory basis, the overall compensation of the company's named executive officers as disclosed pursuant to Item 402 of Regulation S-K of the regulations promulgated by the Securities and Exchange Commission, including the section entitled Executive Compensation and the accompanying compensation tables and the corresponding narrative discussion and footnotes set forth in the proxy statement for the 2026 annual shareholders' meeting. The approval of the say on pay resolution requires an affirmative vote by a majority of the outstanding shares of our common stock that are entitled to vote on this matter represented either in person or by proxy at this meeting. This vote is merely advisory and will not be binding upon the company and the board. The Compensation and Stock Option Plan Committee, which is responsible for designing and administering the company's executive compensation program, values constructive dialogue on the executive compensation and other important governance topics with the company's shareholders. If any shareholder has a question or would like to make a comment regarding any of the proposals, please submit it through the web portal at this time. Ms. Barta, any questions? No, sir. There are no questions. Since there is no further business scheduled to come before the shareholders, I declare the polls are open. Any shareholder who hasn't yet voted or wishes to change their vote may do so by clicking on the voting button on the web and following the instructions there. Shareholders who have sent in proxies or voted via telephone or the internet and do not want to change their vote do not need to take any further action. Everyone has had the opportunity to vote. I now declare the polls for the 2026 annual meeting closed. While the votes are being counted, Mr. Yasir Haider will make a short presentation about the financials of our company. Thank you, Mr. Chairman. I will summarize our financial operation results for the year ended December 31st, 2025. Net sales for 2025 were $108 million, a decrease of $9.9 million or 8.3% as compared to $117.9 million in 2024. During 2025, the company's net sales declined by 6.8% as a constant dollar basis, a non-GAAP financial measure. Unfavorable foreign exchange during the 2025 was caused by a $1.9 million in net sales compared to 2024. Operating loss was $0.4 million in 2025 as compared to an operating income of $1.4 million in 2024. A reduction in our overall sales and administrative expenses contributed to a limiting operating loss. For the year ended December 31st, 2025, the company's tax provision was $12.3 million, of which $11.5 million represented a non-cash deferred tax charges, primarily due to a deferred tax liability adjustment and valuation allowances recorded on losses in certain jurisdictions. During 2024, the company's tax provision was $1.3 million. The net loss of $15.2 million for 2025, or a - $8 per diluted share as compared to a net income of $2.5 million or $1.32 per diluted share of 2024. As of December 31st, 2025, the company's cash and cash equivalents decreased to $6.2 million from $11.4 million as of December 31st, 2024. The approximate number of new and continuing independent associates or preferred customers as of December 31st, 2025 and 2024 were 114,000 and 133,000 respectively. 2025 was a challenging year for Mannatech, particularly in North America, where system-related issues affected our sales momentum, in the Asia Pacific region, where the persistent economic challenges continue. We remain focused on implementing new revenue programs and incentives, operating as lean as organization can, carefully managing our expenses moving forward. I want to encourage all of our shareholders to read our Form 10-K, which was filed with the Securities and Exchange Commission on April 15th, 2026. Back to you, Mr. Chairman. Well, thank you, Yasir, for your presentation. Now we would like to open things up for shareholder questions. We will take shareholders' questions that are being entered today on the web portal. Please note we will attempt to answer as many questions as time allows, but only questions that are germane to the meeting will be addressed. Any questions that we do not get to will be addressed on our company website. Has the Inspector of Election finished counting the votes? I have. We have been informed by the Inspector of Election that the preliminary vote report shows that the nominees for the election of the board have been duly elected. BDO USA, P.C. is our independent registered public accounting firm for fiscal year ending December 31, 2026, has been ratified, and the compensation of the named officers has been approved by advisory vote. The results of this meeting will be recorded in the minutes of the meeting and will be announced in a press release tomorrow. We will be reporting the final vote results in a Form 8-K to be filed within four business days. we will take shareholders' questions that are being entered today on the web portal. Ms. Barta, are there any questions? No, sir, there are no questions. Since there are no further questions, I would like to thank each of you again for attending this meeting. There being no further business to come before the meeting, the 2026 annual shareholders' meeting of Mannatech, Incorporated is now adjourned. This concludes the meeting. Thank you all for joining, and you may now disconnect. Everyone have a great day.
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