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|Nutrisystem, Inc. is incorporated in Delaware. It is a provider of a weight management system based on a low-calorie, portion-controlled, prepared meal program. Its customers purchase monthly food packages containing a 28-day supply of breakfasts, lunches, dinners and desserts, which they supplement with dairy, fruit, salad, vegetables and low-glycemic carbohydrate items. The majority of its customers order on an auto-delivery basis (“Auto-Delivery”), in which it sends a month’s food supply on an ongoing basis until notified by the customer to stop its shipments. It offers personalized plans where customers can hand pick their entire menu or go with the pre-selected favorites pack. Its Basic Plan contains the pre-selected favorites pack while the Core Plan allows customers the ability to customize their menu and provides access to trained counselors. It has also expanded its product offerings to include a combination of its ready-to-go food and its fresh-frozen line of menu items. It provides a comprehensive weight management program, consisting primarily of a pre-packaged food program, online tools and counseling. Trained counselors are available to answer questions and make recommendations to help each customer achieve and maintain his or her weight loss goal. Customers support and encourage each other and share information through hosted Internet chat rooms and bulletin boards. These services are complemented with relevant information on diet, nutrition and exercise, which is provided on the Company’s community website and emailed to its customers bi-weekly. Additionally, online and smart phone weight management tools are available to its customers. These tools include the interactive Mindset Makeover® guide, a behavior modification program that was co-authored by an international leader in the field of obesity research and is offered to its customers free of charge. Its Nutrisystem program consists of over 130 portion-controlled items that serve as the foundation of a low Glycemic Index diet. The Glycemic Index is a measure of the quality of carbohydrates in foods and foods on the lower end of the index are generally considered “good” carbohydrates. The Company’s program is portioned for weight loss and offers a balance of carbohydrate, protein and fat that meets national dietary guidelines. A majority of its direct business sales occur on its website. The foods that it resells in the U.S. are subject to laws and regulations, including those administered by the USDA and FDA that establish manufacturing practices and quality standards for food products.|
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