FitLife Brands, Inc. Common Stock LD Micro 20th Annual Main Event Conference

Good afternoon, everyone. My name is Dayton Judd, and this is Ryan Hansen. Thank you for that introduction. We are here to talk about FitLife Brands. I am going to start by giving a brief overview of the company and what we do, and then Ryan will spend a bit of time talking about the opportunities that we have going forward. Just to give you a sense, again, for who we are, this page shows the different brands that we own. We own a portfolio of nutritional supplement and wellness brands. We own 16 different brands at this point. Many of the brands on the left-hand side of the page were internally developed. But over the last five to seven years or so, we have grown the portfolio significantly through acquisition, and I will walk you through that in a bit more detail.

Everything you see on the right-hand side of the page, Mimi's Rock Corp, MusclePharm, Irwin Naturals, those are all fairly recent transactions that happened in the last three years. So, the best way to think about us, again, portfolio of wellness brands, particularly in the nutritional supplement space. We do not own manufacturing. We are not asset intensive at all. We own the brands, we own the intellectual property, we market the brands and distribute them through a number of channels. You can see the channels here on this page. Some of the brands are exclusive to GNC's franchise network. We are very aggressive at selling online. About half of the company's revenue come from online sales. But we also sell through a lot of other retailers, wholesale partners. Walmart is a big customer. CVS is probably one of our biggest customers. Walgreens, Costco Canada. Sprouts, Fresh Thyme, Whole Foods, just about any food, drug, and mass location in the U.S. is going to carry some of our products.

The investment thesis that we are going to walk you through today is that we have a proven management team that is aligned with shareholders, and I will present this section to you a bit about our history and who we are and how we are aligned with shareholders, and then Ryan will walk you through some of the economics of our business. I am not going to dwell on this page. This is kind of the bios of our team. This presentation, by the way, is filed on our webpage, on the investor relations page on our website, as well as filed on an 8-K with the SEC. But here you can see the senior management team. It is a mix. Some of us are relatively new in the last couple of years, but many people within the company, Jenna Sinnett, our Chief Operating Officer, has been with the company for something like 20 years.

Pat Ryan, same thing, 20 years. A team with significant experience, and talk to you a bit more now about the history of our company. This is a pretty busy chart, and where we'll probably spend a decent chunk of our time, but I think it's important to tell you the story of who we are and how we got where we are. The story starts back in 2015, 2016. By way of background, I'm the CEO of the business, but my day job, until I became CEO of the business, is investment management. Normally, I'm at these conferences sitting out there. I run a hedge fund.

The fund is called Sudbury Capital. Back in, gosh, 2014, 2015, I started buying FitLife stock. At the time, FitLife was traded over-the-counter. We're now traded on Nasdaq. I owned, I don't know, call it 7%, 8% of the company. Some things happened within the company going back to 2015, that were not self-inflicted. At that time, the company sold almost all of its products through GNC, and really, it was through the GNC franchise network. Some things happened with GNC that resulted in the company wanting to diversify away from GNC. In 2015, they went out and bought another company, and that company was called iSatori. It was a small public company. The previous management of FitLife took those products that were not in GNC and went and sold them into GNC. In some ways, defeated the strategic rationale for the transaction.

You can see kind of the impact in late 2016 into 2017, declining revenue, EBITDA flips negative. It was in the middle of 2017 when I, as, again, an external investor, started agitating a little bit, asked for a seat on the board. I gained a board seat in June of 2017. I became Chairman in October of 2017, and by, really immediately, but it took until about February of 2018 to convince the other independent directors that we needed to make a change, right? Again, you can see the declining revenue, you can see the negative EBITDA. We defaulted on our debt. The company was in a very bad place. When everyone agreed to finally make a change, again, the company was literally on the verge of bankruptcy. There was no way we were going to recruit an external CEO into the business.

In some ways, the prize I won for fighting the fight was I was the guy. I was deputized as the interim CEO to go in and stabilize the business. That was then, you can see it labeled there in the chart, about $16.8 million of revenue, and again, negative EBITDA. We started doing a lot of things to improve the business, started selling online. It's something that I had been pretty focused on with previous management in terms of encouraging them to do that. Up to this point, 99% of our revenue was coming from wholesale, and most of that from GNC. We started selling online, in particular Amazon, and that began to grow very quickly. As we grew, you can see, again, the return to growth from, again, bottoming at $16.2 million of revenue, EBITDA flipping positive. But you can see the revenue growing.

You can see the EBITDA growing as we continue to sell online. We pretty quickly were out of debt. We were building cash, but we were still pretty beholden to GNC. What we did, as we had strengthened our balance sheet, is embarked upon a strategy of acquisition. This is what we're still doing today. We take the cash flow that we generate from our existing brands. We use that to acquire other brands. Through that, we were looking to diversify away from GNC. Nothing against GNC. We love them. They're still a very big customer of ours, but we didn't love them 90% of our business. We diversified away and continued to grow online. As we move to the right, you can see cost reductions. You can see the e-commerce, the recapitalization, the debt reduction. Share repurchases. Once the balance sheet was in shape, we started buying back shares.

In 2019, we bought back 20% of the outstanding shares of the company. I'll talk a bit more about my ownership and how we're aligned with shareholders. That was after I bought a lot of the stock myself and through my fund. Just to jump ahead a little bit, I own about 60% of the company, so very much aligned with shareholders. If the stock goes down, it hurts me a lot more than it hurts any other individual shareholder. As we move to the right on the chart, you can see the acquisitions. The acquisition of Nutrology was the first one in April of 2021. Acquisition of MRC, which gave us the Dr. Tobias brand in February of 2023. Some of you have heard of MusclePharm. We acquired MusclePharm in October of 2023.

It was formerly a publicly traded company that went bankrupt, and we acquired their assets out of bankruptcy. Then you can see the revenue growing, the EBITDA growing as we continued to employ this strategy. Then last year, a little bit more than a year ago, we acquired Irwin Naturals. That transaction, again, roughly doubled the size of the company. So we're now on an LTM basis, a little over $100 million of revenue, and that's with almost all of a full year of Irwin. Including a full year of Irwin, it'd be a bit more. You can see on an LTM basis, EBITDA of a little over $14 million. So that is the history of the company.

I won't spend a ton of time on this chart other than to show, you can see this is just the stock price and how it's trended over time from the time I took over as CEO. I think it was $0.35 a share on that day. So it's been a multi-bagger despite the recent declines. We traded above $20 as recently as late 2025. We're now down around eight. This chart was pulled together, I think in September is when we put this out. So stock's down now around eight, so in some regards, it's on sale. Another point that we're trying to make with this chart is we have done what we've done in terms of the growth in both revenue and profitability without dilution. We've not issued a single share of stock.

There was some preferred stock that was issued way back in the beginning in 2018, right after I took over to help recapitalize the balance sheet. All of which has been converted to common. We are nothing but common shares at this point, a little bit less than We got 9.4 million shares outstanding on a fully diluted basis with options, a little bit more than that, a little bit less than 10 million. Even with the pullback recently, it has been a good run. We are obviously sensitive to what the stock has done over the last year or so. In many regards, we think is on sale. We will spend some time talking about, in particular, Ryan will spend some time talking about some of the reasons for that.

The short story is over the last year or so, like a lot of consumer-oriented businesses, we have had some organic top-line challenges. You are going back to this previous chart, revenue is continuing to go up. That is inorganic. On the organic front, we have managed to grow organically through this whole time period after 2018 when I took over. It has just been recently in the last year where we have got some organic growth challenges that we will talk a bit about. Ryan will talk a bit about here in just a bit. Again, last page, I already touched on this. In terms of alignment of the management team with shareholders. Again, about 60% on a fully diluted basis, 56.4% on a currently outstanding basis, and then with other insiders as well. We very much are aligned with shareholders, very clean and simple capital structure, common stock only.