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FitLife Brands (FTLF) Risk Analysis

Public companies are required to disclose risks that can affect the business and impact the stock. These disclosures are known as “Risk Factors”. Companies disclose these risks in their yearly (Form 10-K), quarterly earnings (Form 10-Q), or “foreign private issuer” reports (Form 20-F). Risk factors show the challenges a company faces. Investors can consider the worst-case scenarios before making an investment. TipRanks’ Risk Analysis categorizes risks based on proprietary classification algorithms and machine learning. FitLife Brands disclosed 13 risk factors in its most recent earnings report. FitLife Brands reported the most risks in the “Finance & Corporate” category.

Risk Overview Q3, 2024

Source: the company's latest filing for the period ended Sep 30, 2024, filed Nov 14, 2024

Risk Distribution
13Risks
Sector Avg.Finance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Risk Change Over Time

FitLife Brands disclosed risks per quarterNo. of Risks1015202530Q3Q4Q12023Q2Q3Q2Q3Showing: Q4, 2022
Risks removedRisks addedRisks changedFitLife Brands Risk Factors
New Risk (3)
  • Accounting & Financial Operations - Risk 1
    The Company was profitable during the years ended December 31, 2021 2022 and 2020. 2021. However, we may not be able to achieve sustained profitability. Our failure to sustain profitability or effectively manage growth could result in net losses, and therefore negatively affect our financial condition.

    In the event of any decrease in sales, if we are not able to maintain growth, or if we are unable to effectively manage our growth, we may not be able to sustain profitability, and may incur net losses in the future, and those net losses could be material.  In the event we incur net losses, our financial condition could be negatively affected, and such effect could be material.

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Risk Highlights Q3, 2024

Main Risk Category
Finance & Corporate
With 10 Risks
Number of Disclosed Risks
13
No changes from last report
S&P 500 Average: 32
Recent Changes
0Risks added
0Risks removed
0Risks changed
Since Sep 2024
Number of Risk Changed
0
No changes from last report
S&P 500 Average: 1

Risk Word Cloud

the efficiency of nutritional supplement products is supported by limited conclusive clinical studies, which could result in less market acceptance of these products and lower revenue or lower growth rates in revenue.efficiency of nutritional supplement productsthe sale of our products involves product liability and related risks that could expose us to significant insurance and loss expense.expose us to significant insurancethe company was profitable during the years ended december 31, 2022 and 2021. however, we may not be able to achieve sustained profitability. our failure to sustain profitability or effectively manage growth could result in net losses, and therefore negatively affect our financial condition.our failure to sustain profitabilitywe are currently dependent on a limited number of independent suppliers and manufacturers of our products, which may affect our ability to deliver our products in a timely manner. if we are not able to ensure timely product deliveries, potential distributors and customers may not order our products, and our revenue may decrease.limited number of independent supplierswe are affected by extensive laws, governmental regulations, administrative determinations, court decisions and similar constraints, which can make compliance costly and subject us to enforcement actions by governmental agencies.subject us to enforcement actionsour ability to materially increase sales is largely dependent on the ability to increase sales of product to our wholesale partners as well as directly to the end consumer. we may invest significant amounts in these expansions with little success, and if we are unable to maintain good relationships with our existing customers and e-commerce platforms, our business could suffer.unable to maintain good relationshipsloss of key personnel could impair our ability to operate.impair our ability to operatethe company was profitable during the years ended december 31, 2022 and 2021. however, we may not be able to achieve sustained profitability. our failure to sustain profitability or effectively manage growth could result in net losses, and therefore negatively affect our financial condition.negatively affect our financial conditionwe are currently dependent on a limited number of independent suppliers and manufacturers of our products, which may affect our ability to deliver our products in a timely manner. if we are not able to ensure timely product deliveries, potential distributors and customers may not order our products, and our revenue may decrease.to ensure timely product deliverieswe are dependent on our third-party manufacturers to supply our products in the compositions we require, and we do not independently analyze each production lot of our products. any errors in our product manufacturing could result in product recalls, significant legal exposure, and reduced revenue.production lot of our products

Risk Factors Full Breakdown - Total Risks 13

Share Price & Shareholder Rights5 | 38.5%
  • Share Price & Shareholder Rights - Risk 1
    Note 1. Description of business

    NOTE 1.  DESCRIPTION OF BUSINESS   Summary   FitLife Brands, Inc. (the “Company”) is a national provider of innovative and proprietary nutritional supplements and wellness products for health-conscious consumers marketed under the following brand names: (i) NDS Nutrition, PMD Sports, SirenLabs, Core Active, Nutrology, and Metis Nutrition (together, “NDS Products”); (ii) iSatori, BioGenetic Laboratories, and Energize (together, the "iSatori Products"); and (iii) Dr. Tobias, All Natural Advice, and Maritime Naturals (together, the “MRC Products”); and (iv) MusclePharm. Company NDS Products iSatori Products MRC Products   The Company distributes the NDS Products principally through franchised General Nutrition Centers, Inc. (“GNC”) stores located both domestically and internationally, and, with the launch of Metis Nutrition, through corporate GNC stores in the United States. The iSatori Products are sold through more than 17,000 retail locations, which include specialty, mass, and online.  The Company distributes the MRC Products primarily online.  MusclePharm’s products are sold to both wholesale customers as well as online directly to the end consumer. GNC   FitLife Brands is headquartered in Omaha, Nebraska. For more information on the Company, please go to www.fitlifebrands.com. The Company’s common stock, par value $0.01 per share (“Common Stock”), trades under the symbol “FTLF” on the Nasdaq Capital Market. Common Stock   Recent Developments   Acquisition of Mimi’s Rock Corp Acquisition of Mimi s Rock Corp   On December 4, 2022, the Company entered into an Arrangement Agreement with Mimi’s Rock Corp. (“MRC”), pursuant to which the Company agreed to acquire MRC. On February 28, 2023, the Company completed the acquisition of MRC. Total consideration for the acquisition of MRC was $17,099, of which $12,500 was funded using proceeds from a new term loan, and $4,599 from the Company’s available cash. See Note 8 to the financial statements for additional disclosure regarding the acquisition of MRC. MRC   Acquisition of MusclePharm Assets Acquisition of MusclePharm Assets   On October 10, 2023, the Company acquired substantially all of the assets of MusclePharm Corporation (“MusclePharm”) through an asset purchase transaction under Section 363 of the U.S. Bankruptcy Code. The Company acquired substantially all of the assets and assumed none of the liabilities of MusclePharm other than de minimus cure costs relating to certain assumed contracts.  Total consideration for the acquisition was approximately $18,500 cash.  Of this amount, $10,000 was funded using proceeds from a new term loan provided by First Citizens Bank, with the remainder funded from the Company’s available cash balances. See Note 9 for additional disclosure regarding the acquisition of MusclePharm. MusclePharm de minimus  

  • Share Price & Shareholder Rights - Risk 2
    Note 7. Equity

    NOTE 7.  EQUITY   The Company is authorized to issue 60,000 shares of Common Stock, $0.01 par value per share, of which 4,598 and 4,507 shares of Common Stock were issued and outstanding as of December 31, 2023 and 2022, respectively.   Common Stock Issued for Services

  • Share Price & Shareholder Rights - Risk 3
    Note 5. Property and equipment

    NOTE 5.  PROPERTY AND EQUIPMENT   The Company's property and equipment balances as of December 31, 2023 and 2022 were as follows:   Depreciation expense for property and equipment was $52 for the year ended December 31, 2023 compared to $24 for the year ended December 31, 2022.   F-14

  • Share Price & Shareholder Rights - Risk 4
    Note 11. Commitments and contingencies

    NOTE 11. COMMITMENTS AND CONTINGENCIES   We are currently not involved in any litigation that we believe could have a material adverse effect on our financial condition or results of operations. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the executive officers of the Company or any of its subsidiaries, threatened against or affecting the Company, our Common Stock, any of our subsidiaries or of the Company’s or our subsidiaries’ officers or directors in their capacities as such, in which an adverse decision could have a material adverse effect.    

  • Share Price & Shareholder Rights - Risk 5
    Note 13. Reclassifications

    NOTE 13. RECLASSIFICATIONS   Certain prior year amounts have been reclassified to conform to current presentation.  These reclassifications had no effect on the reported operating income or net income on the Consolidated Statements of Income and Comprehensive Income.  Certain costs previously classified as selling, general and administrative expense have been reclassified to merger and acquisition related expense on the Consolidated Statements of Income and Comprehensive Income.        

Accounting & Financial Operations1 | 7.7%
Debt & Financing2 | 15.4%
Corporate Activity and Growth2 | 15.4%

See a full breakdown of risk according to category and subcategory. The list starts with the category with the most risk. Click on subcategories to read relevant extracts from the most recent report.

FAQ

What are “Risk Factors”?
Risk factors are any situations or occurrences that could make investing in a company risky. The Securities and Exchange Commission (SEC) requires that publicly traded companies disclose their most significant risk factors. This is so that potential investors can consider any risks before they make an investment. They also offer companies protection, as a company can use risk factors as liability protection. This could happen if a company underperforms and investors take legal action as a result. It is worth noting that smaller companies, that is those with a public float of under $75 million on the last business day, do not have to include risk factors in their 10-K and 10-Q forms, although some may choose to do so.
How do companies disclose their risk factors?
Publicly traded companies initially disclose their risk factors to the SEC through their S-1 filings as part of the IPO process. Additionally, companies must provide a complete list of risk factors in their Annual Reports (Form 10-K) or (Form 20-F) for “foreign private issuers”. Quarterly Reports also include a section on risk factors (Form 10-Q) where companies are only required to update any changes since the previous report. According to the SEC, risk factors should be reported concisely, logically and in “plain English” so investors can understand them.
How can I use TipRanks risk factors in my stock research?
Use the Risk Factors tab to get data about the risk factors of any company in which you are considering investing. You can easily see the most significant risks a company is facing. Additionally, you can find out which risk factors a company has added, removed or adjusted since its previous disclosure. You can also see how a company’s risk factors compare to others in its sector. Without reading company reports or participating in conference calls, you would most likely not have access to this sort of information, which is usually not included in press releases or other public announcements. A simplified analysis of risk factors is unique to TipRanks.
What are all the risk factor categories?
TipRanks has identified 6 major categories of risk factors and a number of subcategories for each. You can see how these categories are broken down in the list below. 1. Financial & Corporate Accounting & Financial Operations - risks related to accounting loss, value of intangible assets, financial statements, value of intangible assets, financial reporting, estimates, guidance, company profitability, dividends, fluctuating results. Share Price & Shareholder Rights – risks related to things that impact share prices and the rights of shareholders, including analyst ratings, major shareholder activity, trade volatility, liquidity of shares, anti-takeover provisions, international listing, dual listing. Debt & Financing – risks related to debt, funding, financing and interest rates, financial investments. Corporate Activity and Growth – risks related to restructuring, M&As, joint ventures, execution of corporate strategy, strategic alliances. 2. Legal & Regulatory Litigation and Legal Liabilities – risks related to litigation/ lawsuits against the company. Regulation – risks related to compliance, GDPR, and new legislation. Environmental / Social – risks related to environmental regulation and to data privacy. Taxation & Government Incentives – risks related to taxation and changes in government incentives. 3. Production Costs – risks related to costs of production including commodity prices, future contracts, inventory. Supply Chain – risks related to the company’s suppliers. Manufacturing – risks related to the company’s manufacturing process including product quality and product recalls. Human Capital – risks related to recruitment, training and retention of key employees, employee relationships & unions labor disputes, pension, and post retirement benefits, medical, health and welfare benefits, employee misconduct, employee litigation. 4. Technology & Innovation Innovation / R&D – risks related to innovation and new product development. Technology – risks related to the company’s reliance on technology. Cyber Security – risks related to securing the company’s digital assets and from cyber attacks. Trade Secrets & Patents – risks related to the company’s ability to protect its intellectual property and to infringement claims against the company as well as piracy and unlicensed copying. 5. Ability to Sell Demand – risks related to the demand of the company’s goods and services including seasonality, reliance on key customers. Competition – risks related to the company’s competition including substitutes. Sales & Marketing – risks related to sales, marketing, and distribution channels, pricing, and market penetration. Brand & Reputation – risks related to the company’s brand and reputation. 6. Macro & Political Economy & Political Environment – risks related to changes in economic and political conditions. Natural and Human Disruptions – risks related to catastrophes, floods, storms, terror, earthquakes, coronavirus pandemic/COVID-19. International Operations – risks related to the global nature of the company. Capital Markets – risks related to exchange rates and trade, cryptocurrency.