What changed in this filing

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Item 1. Business

2022-03-15 compared with 2021-03-19 · 21 added, 18 removed, 626 unchanged (6% of the section changed)

17 unchanged sentences

Customs regulations in China include purchase limits to ensure that purchased products are for personal consumption.

Our common stock is currently trading on The Nasdaq Global Select Market (“Nasdaq”) under the symbol “MTEX”.

Our common stock trades on The Nasdaq Global Select Market (“Nasdaq”) under the symbol “MTEX”.

Information for each of our two most recent fiscal years, with respect to our net sales, results of operations, and identifiable assets is set forth in the Consolidated Financial Statements of this report.

6 unchanged sentences

Business Segment.

The Company's sole reporting segment is one where we sell proprietary nutritional supplements, skin care and anti-aging products, and weight-management and fitness products through network marketing distribution channels operating in twenty-four countries.

Mannatech’s subsidiary in China, Meitai, operates under a cross-border e-commerce model, where consumers in China can buy Mannatech products directly from Meitai via the internet.

40 unchanged sentences

new GI-Defense ™ intestinal support product, improved GI-ProBalance pre/pro-biotic product and improved GI-Zyme digestive enzyme product, reformulated ImmunoStart and MannaBOOM products, an innovative new Joint Support product in Japan, an innovative new immune support product named MannaGel in Hong Kong and a re-launch of its MannaBears gummies.

• In 2021, Mannatech introduced a new ginger hibiscus flavor to the existing Ambrotose Life ® product offering, Liver Support, providing detox support for healthy liver function.

In addition, Mannatech introduced Sugar Balance, Inner Beauty (a collagen product), Luminovation Renewal, Joint Support and MannaZen con Aloe Prime in Mexico.

Mannatech offers products that include glyconutrients, a unique category of nutrients sourced from plants and designed to provide a variety of health benefits.

11 unchanged sentences

Integrative Health Ambrotose ® Complex, Ambrotose AO ® , Advanced Ambrotose ® , Ambrotose Life ®

Catalyst™, Cognitate®, Manapol® Powder, MannaBears™, MultiKids, Nutriverus™, Optimal Support Packets, PhytoMatrix®, PLUS™, GlycoCafè®, Chaga Cafe, Glycentials®, MannaTea™, PhytoCleanse, and TruCoffee®

Targeted Health BounceBack®, CardioBALANCE®, GI ProBalance® Slimstick, GI-Zyme®, GI-Defense™, Blood Sugar ProBalance, ImmunoSTART®, Manna-C ™, MannaBOOM® Slimsticks, MannaCLEANSE™, Omega-3 with Vitamin D3, PhytAloe®, Mannatech Men's PRIME 7™, Mannatech Women's PREMIER 7™, I-Start, MannaAloe™ with AloePrime, Chlorophyll, MANNAGEL™, MegaKids, and Jumping Hi Kids.

Catalyst™, Cognitate ® , Manapol ® Powder, MannaBears™, MultiKids, Nutriverus™, Optimal Support Packets, PhytoMatrix ® , PLUS™, Chaga Cafe, Glycentials™, MannaTea™, PhytoCleanse, and TruCoffee ®

Targeted Health BounceBack ® , CardioBALANCE ® , GI-ProBalance ® Slimstick, GI-Zyme ® , GI-Defense™, Blood Sugar ProBalance, ImmunoSTART ® , Manna-C ™, MannaBOOM ® Slimsticks, MannaCLEANSE™, Omega-3 with Vitamin D3, PhytAloe ® , I-Start, MannaAloe ® with AloePrime ® , Chlorophyll, MANNAGEL™, MegaKids, and Jumping Hi Kids.

Weight and Fitness OsoLean ® , SPORT™, TruHealth Fat Loss System, including:

11 unchanged sentences

18,010 11.3 % 16,263 10.7 %

Manapol ® Powder

13,141 8.2 % 7,187 4.7 %

Advanced Ambrotose ®

11,158 7.0 % 14,662 9.7 %

Optimal Support Packets 7,996 5.3 % 4,110 2.6 %

GI-Pro (MicroBiome) 8,478 5.3 % 7,513 5.0 %

14 unchanged sentences

Certain of our supply agreements contain exclusivity clauses for the supply of certain raw materials and products, some of which are conditioned upon compliance with minimum purchase requirements.

In the event we become unable to source any products or ingredients from our suppliers, we believe that we would be able to replace those products with alternate suppliers, except Arabinogalactan and Manapol.

Due to the unique nature of each ingredient, important components used in the formulation of our Ambrotose ® complex, we are unable to identify an alternative supplier at this time for these ingredients.

Industry Overview

Nutrition Industry

We operate in the nutritional supplement industry and distribute and sell our products through our own global network marketing channel.

Nutrition Industry We operate in the nutritional supplement industry and distribute and sell our products through our own global network marketing channel.

The nutritional supplement industry is fast-paced, highly fragmented, and intensely competitive.

8 unchanged sentences

Direct selling, of which network marketing is a significant segment, has grown significantly and has been enhanced in the past decade as a distribution channel due to advancements in technology and communications resulting in improved product distribution and faster dissemination of information.

Direct Selling/Network Marketing Channel

Since the 1990s, the direct selling and network marketing sales channel has grown in popularity and general acceptance, including acceptance by prominent investors and capital investment groups who have invested in direct selling companies.

Direct Selling/Network Marketing Channel Since the 1990s, the direct selling and network marketing sales channel has grown in popularity and general acceptance, including acceptance by prominent investors and capital investment groups who have invested in direct selling companies.

This has provided direct selling companies with additional recognition and credibility in the growing global marketplace.

14 unchanged sentences

We are steadfast in our commitment to quality-driven research and development.

We use systematic processes for the research and development of our unique proprietary product formulas, as well as

the identification of quality suppliers and manufacturers.

We use systematic processes for the research and development of our unique proprietary product formulas, as well as the identification of quality suppliers and manufacturers.

Our research and quality assurance programs are outlined on our corporate websites www.mannatechscience.org , www.mannatech.com , and www.allaboutmannatech.com .

24 unchanged sentences

These controls include a comprehensive supplier audit and surveillance program, third-party certifications, and continuous product monitoring.

A team of professionals, many of whom have extensive experience in the pharmaceutical industry, leads our in-house quality assurance program and continually monitors the quality of our products, including the production process.

A team of professionals, some of whom have extensive experience in the pharmaceutical industry, leads our in-house quality assurance program and continually monitors the quality of our products, including the production process.

In addition, they work with suppliers and manufacturers to develop quality standards for raw material components and products, and perform tests and inspections to ensure that finished products are safe and of high quality prior to release.

16 unchanged sentences

▪ offering a satisfaction guarantee product return policy;

▪ providing comprehensive corporate websites ( www.mannatech.com , https://www.allaboutmannatech.com , https://www.mannatechscience.org , https://www.library.mannatech.com , https://events.mannatech.com , and www.mannafest.com ) that provide instant access to Internet ordering, marketing, technical and educational information, and unique and innovative marketing tools;

▪ providing comprehensive corporate websites that provide instant access to Internet ordering, marketing, technical and educational information, and unique and innovative marketing tools (mannatech.com, allaboutmannatech.com, mannatechscience.org, library.mannatech.com, training.mannatech.com, library.mannatech.com, events.mannatech.com, and mannafest.com);

▪ maintaining an extensive web-based downline management system called Success Tracker™ that provides access to web conferencing and downline organization reporting for our independent associates at minimal costs;

▪ providing Mannatech+, an app and web-based platform to provide personalized web pages, to share videos, digital flyers, and more;

▪ providing Social Media Studio, an app that assists Associates in creating custom social media postings, while utilizing the latest methods to identify non-compliant posts and alert Associates to make alterations before posting;

▪ offering, in the United States and Canada, an effective compilation of online marketing and training tools;

30 unchanged sentences

We work to ensure that all associates and their customers have a great experience with each of our products that deliver tangible results, are supported by science, and are backed by a powerful satisfaction guarantee.

Mannatech has created a culture around Customer Obsession.

Our Customers are at the center of everything we do.

Intellectual Property

We pursue registrations for various trademarks associated with our key products and branding initiatives.

As of December 31, 2020, we had 40 registered trademarks in the United States and one trademark applications pending with the United States Patent and Trademark Office.

As of December 31, 2020, we had 442 registered trademarks in 30 countries and 22 trademark applications pending in seven foreign jurisdictions.

As of December 31, 2021, we had 38 registered trademarks in the United States and five trademark applications pending with the United States Patent and Trademark Office.

As of December 31, 2021, we had 606 registered trademarks in 40 countries and 20 trademark applications pending in 11 foreign jurisdictions.

Globally, the protection available in foreign jurisdictions may not be as extensive as the protection available to us in the United States.

6 unchanged sentences

Overall, as of December 31, 2021, 94 patents have been assigned, issued, granted or validated to Mannatech in major global markets for the technology relating to our Ambrotose ® , Ambrotose AO ® , Ambrotose Life ® , GI‑ProBalance™, PhytoMatrix ® , and NutriVerus™ product formulations, as well as in the field of biomarker assays.

Currently, we have seven patent applications pending in various jurisdictions relating to the technology supporting many of the above listed products.

Currently, we have six patent applications pending in various jurisdictions relating to the technology supporting many of the above listed products.

Patent protection means that the patented invention cannot be commercially made, used, distributed or sold without the patent owner's consent.

11 unchanged sentences

We remain actively committed to expanding the number of our independent associates through recruitment, support, motivation, and incentives.

We had approximately 183,000 active associate and preferred customer positions held by individuals that purchased our products and/or packs or paid associate fees during the 12 months ended December 31, 2020, and we had approximately 169,000 active associate and preferred customer positions held by individuals that purchased our products and/or packs or paid associate fees during the 12 months ended December 31, 2019.

We had approximately 163,000 active associate and preferred customer positions held by individuals that purchased our products and/or packs or paid associate fees during the year ended December 31, 2021, and we had approximately 183,000 active associate and preferred customer positions held by individuals that purchased our products and/or packs or paid associate fees during the year ended December 31, 2020.

We have a loyalty program through which consumers earn loyalty points from qualified automatic orders, which can be applied to future purchases.

384 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 1. Business