Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MANNATECH INC | ||
Entity Central Index Key | 0001056358 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (shares) | 2,389,206 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 33,457,599 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and cash equivalents | $ 24,762 | $ 21,845 |
Restricted cash | 943 | 1,514 |
Accounts receivable, net of allowance of $708 and $770 in 2019 and 2018, respectively | 955 | 106 |
Income tax receivable | 220 | 291 |
Inventories, net | 10,152 | 12,821 |
Prepaid expenses and other current assets | 2,239 | 3,361 |
Deferred commissions | 1,758 | 2,449 |
Total current assets | 41,029 | 42,387 |
Property and equipment, net | 5,261 | 5,860 |
Construction in progress | 865 | 904 |
Long-term restricted cash | 5,295 | 7,225 |
Other assets | 9,592 | 3,894 |
Deferred tax assets, net | 881 | 1,928 |
Total assets | 62,923 | 62,198 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Current portion of finance leases | 87 | 75 |
Accounts payable | 3,526 | 6,724 |
Accrued expenses | 8,209 | 5,995 |
Commissions and incentives payable | 9,728 | 12,189 |
Taxes payable | 2,187 | 2,655 |
Current notes payable | 739 | 702 |
Deferred revenue | 4,416 | 5,274 |
Total current liabilities | 28,892 | 33,614 |
Finance leases, excluding current portion | 176 | 72 |
Deferred tax liabilities | 3 | 3 |
Long-term notes payable | 363 | 883 |
Other long-term liabilities | 6,214 | 2,302 |
Total liabilities | 35,648 | 36,874 |
Commitments and contingencies (Note 11) | ||
Shareholders’ equity: | ||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,742,857 shares issued and 2,381,131 shares outstanding as of December 31, 2019 and 2,742,857 shares issued and 2,381,149 shares outstanding as of December 31, 2018 | 0 | 0 |
Additional paid-in capital | 34,143 | 33,939 |
Accumulated deficits | (690) | (2,782) |
Accumulated other comprehensive income | 3,757 | 4,337 |
Treasury stock, at average cost, 361,726 shares as of December 31, 2019 and 361,708 shares as of December 31, 2018, respectively | (9,935) | (10,170) |
Total shareholders’ equity | 27,275 | 25,324 |
Total liabilities and shareholders’ equity | $ 62,923 | $ 62,198 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Accounts receivable, allowance for doubtful accounts | $ 708 | $ 770 |
Shareholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 99,000,000 | 99,000,000 |
Common stock, shares issued (in shares) | 2,742,857 | 2,742,857 |
Common stock, shares outstanding (in shares) | 2,381,131 | 2,381,149 |
Treasury stock, shares (in shares) | 361,726 | 361,708 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 157,728 | $ 173,558 |
Cost of sales | 31,550 | 34,476 |
Gross profit | 126,178 | 139,082 |
Operating expenses: | ||
Commissions and incentives | 64,254 | 73,514 |
Selling and administrative expenses | 30,824 | 34,156 |
Depreciation and amortization | 2,088 | 2,064 |
Other operating costs | 22,579 | 29,438 |
Total operating expenses | 119,745 | 139,172 |
Income (loss) from operations | 6,433 | (90) |
Interest income (expense) | (16) | 288 |
Other income (expense), net | (681) | 291 |
Income before income taxes | 5,736 | 489 |
Income tax provision | (2,447) | (4,375) |
Net income (loss) | $ 3,289 | $ (3,886) |
Income (loss) per common share: | ||
Basic (in dollars per share) | $ 1.38 | $ (1.53) |
Diluted (in dollars per share) | $ 1.35 | $ (1.53) |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 2,391 | 2,541 |
Diluted (in shares) | 2,441 | 2,541 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 3,289 | $ (3,886) |
Foreign currency translations loss | (607) | (1,661) |
Pension obligations, net of tax provision of $14 and $8 in 2019 and 2018, respectively | 27 | 14 |
Comprehensive income (loss) | $ 2,709 | $ (5,533) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Pension obligations, tax | $ 14 | $ 8 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid in capital | Accumulated deficit | Accumulated other comprehensive income | Treasury stock |
Beginning balance at Dec. 31, 2017 | $ 40,241 | $ 0 | $ 34,928 | $ 4,190 | $ 5,984 | $ (4,861) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Charge related to stock-based compensation | 888 | 888 | ||||
Repurchase of common stock | (2) | (73) | 71 | |||
Treasury Stock, Value, Acquired, Cost Method | (7,543) | 0 | (7,543) | |||
Release of restricted stock | 114 | (56) | 170 | |||
Foreign currency translation | (1,661) | (1,661) | ||||
Pension obligations, net of tax of $10 | 14 | 14 | ||||
Issuance of unrestricted shares | 245 | (1,748) | 1,993 | |||
Net loss | (3,886) | (3,886) | ||||
Dividends, Common Stock, Cash | (3,086) | (3,086) | ||||
Ending balance at Dec. 31, 2018 | 25,324 | 0 | 33,939 | (2,782) | 4,337 | (10,170) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Charge related to stock-based compensation | 455 | 455 | ||||
Repurchase of common stock | 0 | (71) | 71 | |||
Treasury Stock, Value, Acquired, Cost Method | (305) | 0 | (305) | |||
Release of restricted stock | 9 | (39) | 48 | |||
Prior Period Reclassification Adjustment | 3 | 3 | ||||
Foreign currency translation | (607) | (607) | ||||
Pension obligations, net of tax of $10 | 27 | 27 | ||||
Issuance of unrestricted shares | 280 | (141) | 421 | |||
Net loss | 3,289 | 3,289 | ||||
Dividends, Common Stock, Cash | (1,200) | (1,200) | ||||
Ending balance at Dec. 31, 2019 | $ 27,275 | $ 0 | $ 34,143 | $ (690) | $ 3,757 | $ (9,935) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Pension obligations, tax | $ 14 | $ 8 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 3,289 | $ (3,886) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,088 | 2,064 |
Operating Right Of Use Lease Liabilities Net | 1,727 | 0 |
Provision for inventory losses | 986 | 710 |
Provision for doubtful accounts | 82 | 543 |
Loss on disposal of assets | 121 | 4 |
Stock-based compensation expense | 734 | 1,145 |
Deferred income taxes | 1,064 | 1,167 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (931) | (376) |
Income tax receivable | 71 | 616 |
Inventories | 2,051 | (4,145) |
Prepaid expenses and other current assets | 1,705 | 407 |
Deferred commissions | 691 | 1,431 |
Other Assets | (130) | (17) |
Accounts payable | (3,198) | 716 |
Accrued expenses and other liabilities | (1,646) | (96) |
Taxes payable | (468) | 251 |
Commissions and incentives payable | (2,461) | 2,531 |
Deferred revenue | (858) | (3,287) |
Net cash provided by (used in) operating activities | 4,917 | (222) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (1,220) | (2,338) |
Proceeds from sale of assets | 0 | 62 |
Net Cash Provided by (Used in) Investing Activities | (1,220) | (2,276) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from stock options exercised | 0 | 114 |
Repurchase of common stock | (294) | (7,543) |
Payment of cash dividends | (1,200) | (3,086) |
Repayment of finance lease obligations and other long term liabilities | (1,220) | (1,540) |
Net Cash Provided by (Used in) Financing Activities | (2,714) | (12,055) |
Effect of currency exchange rate changes on cash, cash equivalents and restricted cash | (567) | (1,624) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 416 | (16,177) |
Cash, cash equivalents and restricted cash at the end of the year | 24,762 | 21,845 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Income taxes paid, net | 996 | 800 |
Interest paid on finance leases | 0 | 0 |
Assets acquired through financing arrangements under ASC 840 | 0 | 2,281 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 31,000 | 30,584 |
Non Cash Operating Lease Right Of Use Assets And Lease Liabilities | 4,638 | 0 |
Non Cash Finance Lease Right Of Use Assets And Lease Liabilities | 103 | 0 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 2,574 | 0 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | $ 236 | $ 0 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Mannatech, Incorporated (together with its subsidiaries, the “Company”), located in Flower Mound, Texas, was incorporated in the state of Texas on November 4, 1993 and is listed on The Nasdaq Global Select Market under the symbol “MTEX”. The Company develops, markets, and sells high-quality, proprietary nutritional supplements, topical and skin care and anti-aging products, and weight-management products. We currently sell our products into three regions: (i) the Americas (the United States, Canada, Colombia and Mexico); (ii) EMEA (Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, Namibia, the Netherlands, Norway, South Africa, Spain, Sweden and the United Kingdom); and (iii) Asia/Pacific (Australia, Japan, New Zealand, the Republic of Korea, Singapore, Taiwan, Hong Kong, and China). Associates and now preferred customers purchase the Company’s products at published wholesale prices. The Company cannot distinguish products sold for personal use from other sales, when sold to associates, because it is not involved with the products after delivery, other than usual and customary product warranties and returns. Only associates are eligible to earn commissions and incentives. The Company operates a non-direct selling business in mainland China. Our subsidiary in China, Meitai Daily Necessity & Health Products Co., Ltd. (“Meitai”), is operating as a traditional retailer under a cross-border e-commerce model in China. Meitai cannot legally conduct a direct selling business in China unless it acquires a direct selling license in China. Principles of Consolidation The consolidated financial statements and footnotes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Use of Estimates The preparation of the Company’s consolidated financial statements in accordance with generally accepted accounting principles requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Company’s estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. However, actual results may differ from these estimates under different assumptions or conditions. The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies . Foreign Currency Translation The United States dollar is the functional currency for the majority of the Company’s foreign subsidiaries. As a result, nonmonetary assets and liabilities are remeasured at their approximate historical rates, monetary assets and liabilities are remeasured at exchange rates in effect at the end of the year, and revenues and expenses are remeasured at weighted-average exchange rates for the year. The local currency is the functional currency of our subsidiaries in Columbia, Japan, Republic of Korea, Taiwan, Norway, Denmark, Sweden, Mexico and China. These subsidiaries’ assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet dates, revenues and expenses are translated at weighted-average exchange rates, and shareholders’ equity and intercompany balances are translated at historical exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income. Transaction losses totaled approximately $0.7 million for the year ended December 31, 2019 and transaction gains totaled approximately $0.3 million for the year ended December 31, 2018 , and are included in other expense, net in the Company’s consolidated statements of operations. Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are received within 24 to 72 hours. As of December 31, 2019 and 2018 , credit card receivables were $0.7 million and $1.6 million , respectively, and cash and cash equivalents held in bank accounts in foreign countries totaled $18.2 million and $19.9 million , respectively. The Company invests cash in liquid instruments, such as money market funds and interest bearing deposits. The Company also holds cash in high quality financial institutions and does not believe it has an excessive exposure to credit concentration risk. At December 31, 2019, a portion of our cash and cash equivalent balances were concentrated within the Republic of South Korea, with total net assets within this foreign location totaling $19.2 million . In addition, for the year ended December 31, 2019, a concentrated portion of our operating cash flows were earned from operations within the Republic of South Korea. An adverse change in economic conditions within the Republic of South Korea could negatively affect the Company’s results of operations. Restricted Cash The Company is required to restrict cash for: (i) direct selling insurance premiums and credit card sales in the Republic of Korea; (ii) reserve on credit card sales in the United States and Canada; and (iii) Australia building lease collateral. As of December 31, 2019 and 2018 , our total restricted cash was $6.2 million and $8.7 million , respectively. The Company classifies the restricted cash held in Korea and Australia as long-term since it relates to assets and services contracted for longer than one year. The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's consolidated balance sheets to the total amount presented in the consolidated statement of cash flows ( in thousands ): December 31, 2019 December 31, 2018 Cash and cash equivalents at beginning of period $ 21,845 $ 37,682 Current restricted cash at beginning of period 1,514 1,514 Long-term restricted cash at beginning of period 7,225 7,565 Cash, cash equivalents, and restricted cash at beginning of period $ 30,584 $ 46,761 Cash and cash equivalents at end of period $ 24,762 $ 21,845 Current restricted cash at end of period 943 1,514 Long-term restricted cash at end of period 5,295 7,225 Cash, cash equivalents, and restricted cash at end of period $ 31,000 $ 30,584 Accounts Receivable Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of December 31, 2019 and 2018 , receivables consisted primarily of amounts due from preferred customers and associates. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due and writes-off receivables when they become uncollectible. As of December 31, 2019 and 2018 , the Company held an allowance for doubtful accounts of $0.7 million and $0.8 million , respectively. Inventories Inventories consist of raw materials, finished goods, and promotional materials that are stated at the lower of cost (using standard costs that approximate average costs) or net realizable value. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off. Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were $2.2 million and $3.4 million at December 31, 2019 and 2018 , respectively. Included in the December 31, 2019 and 2018 balances were $0.8 million and $1.0 million in other prepaid assets, respectively. Also included in the balances at December 31, 2019 and 2018 were $0.7 million and $1.8 million for other prepaid deposits, respectively. At December 31, 2019 the balance in prepaid inventory was $0.7 million . Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. Expenditures for maintenance and repairs are charged to expense as incurred. The cost of property and equipment sold or otherwise retired and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in other operating costs in the accompanying consolidated statements of operations. The estimated useful lives of fixed assets are as follows: Estimated useful life Office furniture and equipment 5 to 7 years Computer hardware and software 3 to 5 years Automobiles 3 to 5 years Leasehold improvements (1) 2 to 10 years (1) The Company amortizes leasehold improvements over the shorter of the useful estimated life of the leased asset or the lease term. Property and equipment are reviewed for impairment whenever an event or change in circumstances indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review includes a comparison of future projected cash flows generated by the asset or group of assets with its associated net carrying value. If the net carrying value of the asset or group of assets exceeds expected cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent the carrying amount of the asset exceeds its fair value. Other Assets At December 31, 2019 and 2018 , other assets were $9.6 million and $3.9 million , respectively. Included in the December 31, 2019 and 2018 balances were deposits for building leases in various locations of $2.2 million and $2.0 million , respectively. Also included in the December 31, 2019 and 2018 balances were $1.6 million and $1.7 million , respectively, representing a deposit with Mutual Aid Cooperative and Consumer in the Republic of Korea, an organization established by the Republic of Korea’s Fair Trade Commission’s approval to compensate and protect consumers who participate in network marketing activities from damages. Other assets at each of December 31, 2019 and 2018 also include $0.2 million of indefinite lived intangible assets relating to the Manapol ® powder trademark. The December 31, 2019 balance also includes $5.6 million of operating lease right-of-use assets. See Note 5, Leases for more information. Notes Payable Notes payable were $1.1 million and $1.6 million as of December 31, 2019 and December 31, 2018 , respectively, as a result of funding from a capital financing agreement related to our investment in leasehold improvements, computer hardware and software and other financing arrangements. Payments are made monthly according to the terms of the agreements which have a weighted average effective interest rate of 5.8% and are collateralized by leasehold improvements and computer hardware and software. At December 31, 2019 , the current portion was $0.7 million and the long-term portion was $0.4 million . At December 31, 2018 , the current portion was $0.7 million and the long-term portion was $0.9 million . Other Long-Term Liabilities Other long-term liabilities were $6.2 million and $2.3 million for the years ending December 31, 2019 and 2018 , respectively. At December 31, 2018, we recorded $ 1.3 million of lease incentive obligation for leasehold improvements at our corporate headquarters. At each of December 31, 2019 and 2018 , we recorded $0.2 million , respectively, in other long-term liabilities related to uncertain income tax positions (see Note 7, Income Taxes ). Certain operating leases for the Company’s regional office facilities contain a restoration clause that requires the Company to restore the premises to its original condition. At December 31, 2019 and 2018 , accrued restoration costs related to these leases amounted to $0.3 million and $0.4 million , respectively. At December 31, 2019 and 2018 , government mandated severance accruals in certain international offices amounted to $0.4 million and $0.3 million , respectively. The Company also recorded a long-term liability for an estimated defined benefit obligation related to a non-U.S. defined benefit plan for its Japan operations of $0.3 million and $0.4 million as of December 31, 2019 and 2018 , respectively (See Note 9, Employee Benefit Plans ). The December 31, 2019 balance also includes $5.3 million of long-term operating lease right-of-use obligations. See Note 5, Leases for more information. Revenue Recognition The Company’s revenue is derived from sales of individual products and associate fees or, in certain geographic markets, starter and renewal packs. Substantially all of the Company’s product sales are made at published wholesale prices to associates and preferred customers. The Company records revenue net of any sales taxes and records a reserve for expected sales returns based on its historical experience. The Company recognizes revenue from shipped products when control of the product transfers to the customer, thus the performance obligation is satisfied. Corporate-sponsored event revenue is recognized when the event is held. Orders placed by associates or preferred customers constitute our contracts. Product sales placed in the form of an automatic order contain two performance obligations - a) the sale of the product and b) the loyalty program. For these contracts, the Company accounts for each of these obligations separately as they are each distinct. The transaction price is allocated between the product sale and the loyalty program on a relative standalone selling price basis. Sales placed through a one-time order contain only the first performance obligation noted above - the sale of the product. The Company provides associates with access to a complimentary three-month package for the Success Tracker TM and Mannatech+ online business tools with the first payment of an associate fee. The first payment of an associate fee contains three performance obligations a) the associate fee, whereby the Company provides an associate with the right to earn commissions, bonuses and incentives for a year, b) three months of complimentary access to utilize the Success Tracker™ online tool and c) three months of complimentary access to utilize the Mannatech+ online business tool. The transaction price is allocated between the three performance obligations on a relative standalone selling price basis. Associates do not have complimentary access to online business tools after the first contractual period. With regard to both of the aforementioned contracts, the Company determines the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts. Our sales mix for the years ended December 31, was as follows (in millions, except percentages) : 2019 Percentage 2018 Percentage Consolidated product sales $ 154.6 98.0 % $ 170.2 98.0 % Consolidated pack sales and associate fees (a) 2.3 1.5 % 2.5 1.5 % Consolidated other 0.8 0.5 % 0.9 0.5 % Total consolidated net sales $ 157.7 100.0 % $ 173.6 100.0 % Revenues by reporting segment are presented in Note 15 of our consolidated financial statements. We believe that the disaggregation of our revenues as reflected above, coupled with further discussion below, and the reporting segment in Note 15, depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. Deferred Commissions The Company defers commissions on (i) the sales of products shipped but not received by customers by the end of the respective period and (ii) the loyalty program. Deferred commissions are incremental costs and are amortized to expense consistent with how the related revenue is recognized. Deferred commissions were $1.8 million and $2.4 million at December 31, 2019 and December 31, 2018 , respectively. The full $2.4 million balance at December 31, 2018 was amortized to commissions expense for the twelve months ended December 31, 2019 . Deferred Revenue The Company defers certain components of its revenue. Deferred revenue consisted of: (i) sales of products shipped but not received by the customers by the end of the respective period; (ii) revenue from the loyalty program; (iii) prepaid registration fees from customers planning to attend a future corporate-sponsored event; and (iv) prepaid annual associate fees. At December 31, 2019 and December 31, 2018 , the Company’s deferred revenue was $4.4 million and $5.3 million , respectively. The full $5.3 million balance at December 31, 2018 was recognized as revenue for the twelve months ended December 31, 2019 . The Company's customer loyalty program conveys a material right to the customer as it provides the promise to redeem loyalty points for the purchase of products, which is based on earning points through placing consecutive qualified automatic orders. The Company factors in breakage rates, which is the percentage of the loyalty points that are expected to be forfeited or expire, for purposes of revenue recognition. Breakage rates are estimated based on historical data and can be reasonably and objectively determined. The deferred revenue associated with the loyalty program at December 31, 2019 and December 31, 2018 was $3.1 million and $4.2 million , as follows: Loyalty program (in thousands) Loyalty deferred revenue as of January 1, 2018 $ 6,406 Loyalty points forfeited or expired (4,332 ) Loyalty points used (11,398 ) Loyalty points vested 12,469 Loyalty points unvested 1,086 Loyalty deferred revenue as of December 31, 2018 $ 4,231 Loyalty deferred revenue as of January 1, 2019 $ 4,231 Loyalty points forfeited or expired (4,348 ) Loyalty points used (9,127 ) Loyalty points vested 11,320 Loyalty points unvested 1,051 Loyalty deferred revenue as of December 31, 2019 $ 3,127 Sales Refund and Allowances The Company utilizes the expected value method to estimate the sales returns and allowance liability by taking the weighted average of the sales return rates over a rolling six-month period. The Company allocates the total amount recorded within the sales return and allowance liability as a reduction of the overall transaction price for the Company’s product sales. The Company deems the sales refund and allowance liability to be a variable consideration. Historically, our sales returns have not materially changed through the years, as the majority of our customers who return their merchandise do so within the first 90 days after the original sale. Sales returns have historically averaged 1.5% or less of our gross sales. For the years ended December 31, 2019 and December 31, 2018 , our sales return reserve consisted of the following (in thousands) : Sales reserve as of January 1, 2018 $ 117 Provision related to sales made in current period 1,198 Adjustment related to sales made in prior periods (10 ) Actual returns or credits related to current period (1,125 ) Actual returns or credits related to prior periods (104 ) Sales reserve as of December 31, 2018 $ 76 Sales reserve as of January 1, 2019 $ 76 Provision related to sales made in current period 1,037 Adjustment related to sales made in prior periods 31 Actual returns or credits related to current period (973 ) Actual returns or credits related to prior periods (103 ) Sales reserve as of December 31, 2019 $ 68 Shipping and Handling Costs The Company records inbound freight as a component of inventory and cost of sales. The Company records freight and shipping fees collected from its customers as fulfillment costs. Freight and shipping fees are not deemed to be separate performance obligations as these activities occur before the customer receives the product. Commission and Incentive Expenses Associates earn commissions and incentives based on their direct and indirect commissionable net sales over each month of the fiscal year. The Company accrues commissions and incentives when earned by associates and pays commissions on product and pack sales on a monthly basis. Advertising Expenses The Company expenses advertising and promotions in selling and administrative expenses when incurred. Advertising and promotional expenses were approximately $3.5 million and $5.6 million for the years ended December 31, 2019 and 2018 , respectively. Educational and promotional items, called sales aids, are sold to associates to assist in their sales efforts and are included in inventories and charged to cost of sales when sold. Research and Development Expenses The Company expenses research and development expenses as incurred. Research and development expenses related to new product development, enhancement of existing products, clinical studies and trials, Food and Drug Administration compliance studies, general supplies, internal salaries, third-party contractors, and consulting fees were approximately $1.1 million and $1.0 million , respectively, for the years ended December 31, 2019 and 2018 . Salaries and contract labor are included in selling and administrative expenses and all other research and development costs are included in other operating costs. Stock-Based Compensation The Company currently has one active stock-based compensation plan, the Mannatech, Incorporated 2017 Stock Incentive Plan, which was adopted by the Company’s Board of Directors (the "Board") on April 17, 2017 and was approved by its shareholders on June 8, 2017 , and subsequently amended by the Board at its February 2019 special meeting, which amendment was approved by the Company's shareholders on June 11, 2019 (as amended, the "2017 Plan"). The 2017 Plan supersedes the Mannatech, Incorporated 2008 Stock Incentive Plan (as amended the "2008 Plan"), which was set to expire on February 20, 2018 . The Board has reserved a maximum of 370,000 shares of our common stock that may be issued under the 2017 Plan (subject to adjustments for stock splits, stock dividends or other changes in corporate capitalization). The 2017 Plan provides for grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock and performance stock units to our employees, board members, and consultants. However, only employees of the Company and its corporate subsidiaries are eligible to receive incentive stock options. The exercise price per share for all stock options will be no less than the market value of a share of common stock on the date of grant. Any incentive stock option granted to an employee owning more than 10% of our common stock will have an exercise price of no less than 110% of our common stock’s market value on the grant date. The majority of stock options vest over two or three years, and generally are granted with a term of ten years, or five years in the case of an incentive option granted to an employee who owns more than 10% of our common stock. At date of grant, the Company determines the fair value of the stock option award and recognizes compensation expense over the requisite service period, or the vesting period of the award. The fair value of the stock option award is calculated using the Black-Scholes option-pricing model. The Company records stock-based compensation expense in selling and administrative expenses. Software Development Costs The Company capitalizes qualifying internal payroll and external contracting and consulting costs related to the development of internal use software that are incurred during the application development stage, which includes design of the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary project along with post-implementation stages of internal use software are expensed as incurred. During the years ended December 31, 2019 and 2018 , the Company capitalized $0.2 million and $0.3 million , respectively, of qualifying internal payroll costs. The Company amortizes such costs over the estimated useful life of the software, which is three to five years once the software is placed in service. Other Operating Costs Other operating costs include travel, accounting/legal/consulting fees, credit card processing fees, banking fees, off-site storage fees, utilities, and other miscellaneous operating expenses. Income Taxes The Company determines the provision for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the more likely than not criterion for recognition. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being recognized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes both interest and penalties related to uncertain tax positions as part of the income tax provision. Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company’s comprehensive income consists of the Company’s net income, foreign currency translation adjustments from its Japan, Republic of Korea, Taiwan, Denmark, Norway, Sweden, Colombia, Mexico and China operations, remeasurement of intercompany balances classified as equity from its Taiwan, Mexico and Cyprus operations, and changes in the pension obligation for its Japanese employees. Concentration Risk A significant portion of our revenue is derived from our Ambrotose Life ® , Advanced Ambrotose ® , TruHealth ™ , Manapol ® Powder, and GI-Pro products. A decline in sales value of such products could have a material adverse effect on our earnings, cash flows, and financial position. Revenue from these products were as follows for the years ended December 31, 2019 and 2018 ( in thousands, except percentages ): 2019 2018 Sales by % of total Sales by % of total Ambrotose Life ® $ 34,975 22.2 % $ 18,824 10.9 % Advanced Ambrotose ® 22,390 14.2 % 44,054 25.4 % TruHealth ™ 16,193 10.3 % 17,537 10.1 % Manapol ® Powder 8,793 5.6 % 8,636 5.0 % GI-Pro Balance 6,559 4.2 % 7,187 4.2 % Total $ 88,910 56.5 % $ 96,238 55.6 % Our business is not currently exposed to customer concentration risk given that no independent associate has ever accounted for more than 10% of our consolidated net sales. The Company maintains supply agreements with its suppliers and manufacturers. Some of the supply agreements contain exclusivity clauses and/or minimum annual purchase requirements. Failure to satisfy minimum purchase requirements could result in the loss of exclusivity. During the year ended December 31, 2019 , the Company purchased finished goods from four suppliers that accounted for 56.0% of the year's cost of sales. During the year ended December 31, 2018 , the Company purchased finished goods from two suppliers that accounted for 72.4% of the year's cost of sales. The Company maintains other supply and manufacturing agreements to minimize exposure to supplier risk. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, investments, receivables, and restricted cash. The Company utilizes financial institutions that the Company considers to be of high credit quality and periodically evaluates the credit rating of such institutions and the allocation of their investments to minimize exposure to credit concentration risk. Fair Value of Financial Instruments The fair value of the Company’s financial instruments, including cash and cash equivalents, restricted cash, time deposits, money market investments, receivables, payables, and accrued expenses, approximate their carrying values due to their relatively short maturities. See Note 2 to our Consolidated Financial Statements, Fair Value , for more information. Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ( "ASU 2016-02" ) as of January 1, 2019 and applied it on a modified retrospective basis approach and elected to not adjust periods prior to January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the carry forward of the historical lease classification. This new standard requires companies to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The adoption increased assets, net of incentive, by $4.7 million and liabilities by $6.1 million on our consolidated balance sheets and did not have a significant impact on our consolidated statement of operations and statements of cash flows. These leases primarily relate to office buildings and office equipment. See Note 8, Leases for more information. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) ("ASU 2018-02") , which amended its standard on comprehensive income to provide an option for an entity to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the "TCJA") that was passed in December of 2017 from accumulated other comprehensive income directly to retained earnings. The stranded tax effects result from the remeasurement of deferred tax assets and liabilities which were originally recorded in comprehensive income but whose remeasurement is reflected in the income statement. This is a one-time amendment applicable only to the changes resulting from the TCJA. The Company adopted this standard on January 1, 2019. The overall financial impact of adopting this standard did not have a material effect on our consolidated financial statements. Accounting Pronouncements Issued But Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . This standard adds to U.S. GAAP an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the more timely recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of |
FAIR VALUE
FAIR VALUE | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE | FAIR VALUE The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures. Fair Value Measurements (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: • Level 1—Quoted unadjusted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. • Level 3—Model derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are interest bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The tables below present the recorded amount of financial assets measured at fair value, which approximately equates to the carrying value due to the relatively short maturities of these respective assets, (in thousands) on a recurring basis as of December 31, 2019 and 2018 . The Company did not have any material financial liabilities that were required to be measured at fair value on a recurring basis at December 31, 2019 and 2018 . 2019 Level 1 Level 2 Level 3 Total Assets Money Market Funds – Fidelity, US $ 5,000 $ — $ — $ 5,000 Interest bearing deposits – various banks $ 8,962 $ — $ — $ 8,962 Total assets $ 13,962 $ — $ — $ 13,962 Amounts included in: Cash and cash equivalents $ 8,636 $ — $ — $ 8,636 Restricted cash 679 — — 679 Long-term restricted cash 4,647 — — 4,647 Total $ 13,962 $ — $ — $ 13,962 2018 Level 1 Level 2 Level 3 Total Assets Interest bearing deposits – various banks $ 11,391 $ — $ — $ 11,391 Total assets $ 11,391 $ — $ — $ 11,391 Amounts included in: Cash and cash equivalents $ 4,633 $ — $ — $ 4,633 Restricted cash 741 — — 741 Long-term restricted cash 6,017 — — 6,017 Total $ 11,391 $ — $ — $ 11,391 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consist of raw materials, finished goods, and promotional materials. The Company provides an allowance for any slow-moving or obsolete inventories. Inventories as of December 31, 2019 and 2018 , consisted of the following (in thousands) : 2019 2018 Raw materials $ 2,685 $ 803 Finished goods 8,341 12,542 Inventory reserves for obsolescence (874 ) (524 ) Total $ 10,152 $ 12,821 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT For the year ended December 31, 2019 and 2018, construction in progress remained constant at $0.9 million , which is primarily comprised of back-office software projects within service dates that are currently indeterminable. As of December 31, 2019 and 2018 , property and equipment consisted of the following (in thousands) : 2019 2018 Office furniture and equipment $ 2,638 $ 3,441 Computer hardware 3,879 4,239 Computer software 43,454 43,416 Automobiles 81 81 Leasehold improvements 4,230 4,812 ROU Assets- Financing 269 — 54,551 55,989 Less accumulated depreciation and amortization (49,290 ) (50,129 ) Property and equipment, net 5,261 5,860 Construction in progress 865 904 Total $ 6,126 $ 6,764 |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES Adoption of ASC Topic 842, Leases On January 1, 2019, the Company adopted ASC Topic 842, Leases, ("ASC Topic 842") using the modified retrospective approach using the effective date method, which was applied to historical leases that were still effective as of January 1, 2019. Results for reporting periods beginning January 1, 2019, are presented in accordance with ASC Topic 842, while prior period amounts are reported in accordance with historical accounting treatment under ASC Topic 840, Leases, ("ASC Topic 840"). In accordance with the adoption of ASC Topic 842, the Company now records an operating lease right-of-use ("ROU") asset and operating lease liability on the Consolidated Balance Sheets for all operating leases with a contract term in excess of 12 months. Prior to the adoption of ASC Topic 842, these same leases were treated as operating leases under ASC Topic 840 and therefore were not recorded on the December 31, 2018 Consolidated Balance Sheet. There was no impact to retained earnings and no significant impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows as a result of adopting ASC Topic 842. Lease Recognition The Company has entered into contractual lease arrangements to rent office space and other office equipment from third-party lessors. If a contract conveys the right to control the use of identified PP&E (an identified asset) for a period of time in exchange for consideration, the Company considers the contract to be a lease, or to contain a lease, in accordance with ASC Topic 842. Right of use (ROU) assets represent Mannatech’s right to use an underlying asset for the lease term, and lease liabilities represent Mannatech’s obligation to make future lease payments arising from the lease. Operating lease liabilities and financing lease liabilities are recorded at the present value of lease payments over the lease term at the commencement date. The related ROU assets are recorded on the same date at the amount of the initial liability, adjusted for incentives received, prepayments made to the lessor, and any initial direct costs incurred, as applicable. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company accounts for lease components, such as office space, separately from the non-lease components, such as maintenance service fees, based on estimated costs from the vendor. Mannatech uses the implicit interest rate when readily determinable; however, most of Mannatech's lease agreements do not provide an implicit interest rate. As such, the Company determines the present value of future lease payments using the incremental borrowing rate available at the commencement date of the contract, or as of January 1, 2019 in the case of existing leases at adoption of ASC 842. The incremental borrowing rate is the rate available to the Company for a fully collateralized, fully amortizing loan, with the same term as the lease. The operating lease ROU asset also includes any lease incentives received in the recognition of the present value of future lease payments. Certain of Mannatech's leases may also include escalation clauses or options to extend or terminate the lease. These options are included in the present value recorded for the leases when it is reasonably certain that Mannatech will exercise that option. None of Mannatech’s current leases contain guarantees of residual value. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease costs represent the straight-line lease expense of ROU assets and short-term leases. Mannatech determines if an arrangement is a lease at inception of the contract. Resulting operating lease assets are recorded on the Consolidated Balance Sheets as a component of "Other assets" with offsetting liabilities recorded as a component of "Accrued expenses" and "Other long-term liabilities". Finance lease assets are recorded on the Consolidated Balance Sheets as a component of “Property and equipment, net” with related liabilities recorded as “Current portion of finance leases” or as “Finance leases, excluding current portion”. As of December 31, 2019 , Mannatech has six financing leases, all of which pertain to certain equipment used in the business. In general, Mannatech’s operating leases relate to office space used in Mannatech’s operations, including its headquarters in Flower Mound, Texas, as well as office space in other locations around the globe in which the Company does business. As of December 31, 2019 , our leased assets and liabilities consisted of the following (in thousands): Leases Classification December 31, 2019 Assets ROU Assets from operating leases Other assets $ 5,568 ROU Assets from financing leases Property and equipment, net 269 Total leased assets 5,837 Liabilities Current Operating Accrued expenses $ 1,622 Financing Current portion of finance leases 87 Long-Term Operating Other long-term liabilities 5,307 Financing Finance leases, excluding current portion 176 Total leased liabilities $ 7,192 We incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification Twelve Months Ended December 31, 2019 Operating lease cost Other operating cost $ 2,074 Finance lease cost Amortization of leased assets Depreciation and amortization 111 Interest on lease liabilities Interest expense 17 Total lease cost $ 2,202 For the twelve months ended December 31, 2019 , cash paid amounts included in the measurement of lease liabilities included (in thousands): Lease Payments Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,154 Financing cash flows from finance leases 222 Lease term and discount rates related to the Company's leases are as follows: December 31, 2019 Operating leases Weighted-average remaining lease term (years) 6.1 Weighted-average discount rate 4.04 % Financing leases Weighted-average remaining lease term (years) 3.2 Weighted-average discount rate 4.95 % As of December 31, 2019 , future minimum lease payments on operating and financing leases were as follows (in thousands): December 31, 2019 Maturity of lease liabilities Operating Leases Financing Leases 2020 $ 1,884 $ 104 2021 1,592 90 2022 1,163 64 2023 605 36 Thereafter 2,752 10 Total future minimum lease payments $ 7,996 $ 304 Imputed interest (1,067 ) (41 ) Present value of minimum lease payments $ 6,929 $ 263 Under ASC Topic 840 future minimum lease payments for non-cancelable leases existing at December 31, 2018 were as follows (in thousands): December 31, 2018 Maturity of lease liabilities Operating Leases Capital Leases 2019 $ 1,850 $ 81 2020 977 40 2021 583 28 2022 586 7 2023 586 — Thereafter 2,737 — Total of future minimum lease payments at December 31, 2018 $ 7,319 $ 156 Less: Amounts representing interest (effective interest rate 5.61%) — (9 ) Present Value of lease obligations as of December 31, 2018 $ 7,319 $ 147 |
CAPITAL LEASE OBLIGATIONS
CAPITAL LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2019 | |
Leases, Capital [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES Adoption of ASC Topic 842, Leases On January 1, 2019, the Company adopted ASC Topic 842, Leases, ("ASC Topic 842") using the modified retrospective approach using the effective date method, which was applied to historical leases that were still effective as of January 1, 2019. Results for reporting periods beginning January 1, 2019, are presented in accordance with ASC Topic 842, while prior period amounts are reported in accordance with historical accounting treatment under ASC Topic 840, Leases, ("ASC Topic 840"). In accordance with the adoption of ASC Topic 842, the Company now records an operating lease right-of-use ("ROU") asset and operating lease liability on the Consolidated Balance Sheets for all operating leases with a contract term in excess of 12 months. Prior to the adoption of ASC Topic 842, these same leases were treated as operating leases under ASC Topic 840 and therefore were not recorded on the December 31, 2018 Consolidated Balance Sheet. There was no impact to retained earnings and no significant impact on the Consolidated Statements of Operations or the Consolidated Statements of Cash Flows as a result of adopting ASC Topic 842. Lease Recognition The Company has entered into contractual lease arrangements to rent office space and other office equipment from third-party lessors. If a contract conveys the right to control the use of identified PP&E (an identified asset) for a period of time in exchange for consideration, the Company considers the contract to be a lease, or to contain a lease, in accordance with ASC Topic 842. Right of use (ROU) assets represent Mannatech’s right to use an underlying asset for the lease term, and lease liabilities represent Mannatech’s obligation to make future lease payments arising from the lease. Operating lease liabilities and financing lease liabilities are recorded at the present value of lease payments over the lease term at the commencement date. The related ROU assets are recorded on the same date at the amount of the initial liability, adjusted for incentives received, prepayments made to the lessor, and any initial direct costs incurred, as applicable. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these short-term leases on a straight-line basis over the lease term. The Company accounts for lease components, such as office space, separately from the non-lease components, such as maintenance service fees, based on estimated costs from the vendor. Mannatech uses the implicit interest rate when readily determinable; however, most of Mannatech's lease agreements do not provide an implicit interest rate. As such, the Company determines the present value of future lease payments using the incremental borrowing rate available at the commencement date of the contract, or as of January 1, 2019 in the case of existing leases at adoption of ASC 842. The incremental borrowing rate is the rate available to the Company for a fully collateralized, fully amortizing loan, with the same term as the lease. The operating lease ROU asset also includes any lease incentives received in the recognition of the present value of future lease payments. Certain of Mannatech's leases may also include escalation clauses or options to extend or terminate the lease. These options are included in the present value recorded for the leases when it is reasonably certain that Mannatech will exercise that option. None of Mannatech’s current leases contain guarantees of residual value. Lease expense for lease payments is recognized on a straight-line basis over the lease term. Lease costs represent the straight-line lease expense of ROU assets and short-term leases. Mannatech determines if an arrangement is a lease at inception of the contract. Resulting operating lease assets are recorded on the Consolidated Balance Sheets as a component of "Other assets" with offsetting liabilities recorded as a component of "Accrued expenses" and "Other long-term liabilities". Finance lease assets are recorded on the Consolidated Balance Sheets as a component of “Property and equipment, net” with related liabilities recorded as “Current portion of finance leases” or as “Finance leases, excluding current portion”. As of December 31, 2019 , Mannatech has six financing leases, all of which pertain to certain equipment used in the business. In general, Mannatech’s operating leases relate to office space used in Mannatech’s operations, including its headquarters in Flower Mound, Texas, as well as office space in other locations around the globe in which the Company does business. As of December 31, 2019 , our leased assets and liabilities consisted of the following (in thousands): Leases Classification December 31, 2019 Assets ROU Assets from operating leases Other assets $ 5,568 ROU Assets from financing leases Property and equipment, net 269 Total leased assets 5,837 Liabilities Current Operating Accrued expenses $ 1,622 Financing Current portion of finance leases 87 Long-Term Operating Other long-term liabilities 5,307 Financing Finance leases, excluding current portion 176 Total leased liabilities $ 7,192 We incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification Twelve Months Ended December 31, 2019 Operating lease cost Other operating cost $ 2,074 Finance lease cost Amortization of leased assets Depreciation and amortization 111 Interest on lease liabilities Interest expense 17 Total lease cost $ 2,202 For the twelve months ended December 31, 2019 , cash paid amounts included in the measurement of lease liabilities included (in thousands): Lease Payments Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,154 Financing cash flows from finance leases 222 Lease term and discount rates related to the Company's leases are as follows: December 31, 2019 Operating leases Weighted-average remaining lease term (years) 6.1 Weighted-average discount rate 4.04 % Financing leases Weighted-average remaining lease term (years) 3.2 Weighted-average discount rate 4.95 % As of December 31, 2019 , future minimum lease payments on operating and financing leases were as follows (in thousands): December 31, 2019 Maturity of lease liabilities Operating Leases Financing Leases 2020 $ 1,884 $ 104 2021 1,592 90 2022 1,163 64 2023 605 36 Thereafter 2,752 10 Total future minimum lease payments $ 7,996 $ 304 Imputed interest (1,067 ) (41 ) Present value of minimum lease payments $ 6,929 $ 263 Under ASC Topic 840 future minimum lease payments for non-cancelable leases existing at December 31, 2018 were as follows (in thousands): December 31, 2018 Maturity of lease liabilities Operating Leases Capital Leases 2019 $ 1,850 $ 81 2020 977 40 2021 583 28 2022 586 7 2023 586 — Thereafter 2,737 — Total of future minimum lease payments at December 31, 2018 $ 7,319 $ 156 Less: Amounts representing interest (effective interest rate 5.61%) — (9 ) Present Value of lease obligations as of December 31, 2018 $ 7,319 $ 147 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES As of December 31, 2019 and 2018 , accrued expenses consisted of the following (in thousands) : 2019 2018 Accrued asset purchases $ 478 $ 261 Accrued compensation 2,311 1,912 Accrued royalties 49 59 Accrued sales and other taxes 432 344 Other accrued operating expenses 905 677 Customer deposits and sales returns 356 425 Accrued travel expenses related to corporate events 552 411 Accrued shipping and handling costs 338 755 Rent expense 39 442 Accrued legal and accounting fees 1,127 709 Current portion of operating lease liabilities 1,622 — $ 8,209 $ 5,995 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of the Company’s income before income taxes are attributable to the following jurisdictions for the years ended December 31 (in thousands) : 2019 2018 United States $ (5,038 ) $ (11,762 ) Foreign 10,774 12,251 Income before income taxes $ 5,736 $ 489 The components of the Company’s income tax expense for the years ended December 31 (in thousands) : Current provision (benefit): 2019 2018 Federal $ 131 $ 13 State 64 (25 ) Foreign 1,188 3,220 1,383 3,208 Deferred provision (benefit): Federal — 1,074 State — 1,027 Foreign 1,064 (934 ) 1,064 1,167 $ 2,447 $ 4,375 A reconciliation of the Company’s effective income tax rate and the United States federal statutory income tax rate is summarized as follows, for the years ended December 31: 2019 2018 Federal statutory income taxes 21.0 % 21.0 % State income taxes, net of federal benefit 3.5 (40.3 ) Difference in foreign and United States tax on foreign operations (10.1 ) (75.6 ) Effect of changes in valuation allowance (7.3 ) 920.1 Effect of change in uncertain tax positions (net) — (0.5 ) Federal Sub-Part F Income from foreign operations 10.5 0.4 Global Intangible Low Taxed Income (GILTI) 23.5 43.2 Section 78 gross up 5.4 — Section 250 deduction (4.3 ) — Effect of changes in tax rates 0.5 (23.6 ) Foreign Exchange — (8.4 ) Prior year adjustments 4.1 (4.1 ) Foreign tax credits (10.9 ) — Meals and entertainment 0.7 11.9 Share Based Compensation 1.2 25.8 Withholding taxes 2.2 6.3 Other permanent items 1.9 14.4 Other 0.6 4.1 42.5 % 894.7 % For the years ended December 31, 2019 and 2018 , the Company’s effective tax rate was 42.5% and 894.7% , respectively. In 2019 , the Company had a significant decrease in its rate due to the mix of earnings across jurisdictions. For 2018 , the Company had a significant increase in its rate due to the mix of earnings across jurisdictions, valuation allowance recorded on losses in certain jurisdictions, and the impact of GILTI as a result of the TCJA passed in 2017. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of the Company’s deferred tax assets and liabilities consisted of the following at December 31 (in thousands) : Deferred tax assets: 2019 2018 Deferred Revenue $ 243 $ 277 Inventory 215 250 Accrued expenses 878 804 Disallowed Interest Expense — 123 Net operating loss (1) 7,570 9,293 Equity Compensation 509 584 Foreign tax credit carryover 4,180 3,621 Lease liability 1,674 — Other 486 876 Total deferred tax assets $ 15,755 $ 15,828 Valuation allowance (12,375 ) (12,793 ) Total deferred tax assets, net of valuation allowance $ 3,380 $ 3,035 Deferred tax liabilities: Prepaid expenses 147 262 Deferred commissions 253 255 Internally-developed software 265 326 Lease assets 1,659 — Fixed assets 178 267 Total deferred tax liabilities $ 2,502 $ 1,110 Total net deferred tax asset $ 878 $ 1,925 (1) The Company’s net operating loss will expire as follows (dollar amounts in thousands): Jurisdiction Gross NOL Tax Effected NOL Expiration Years Australia $ 393 $ 118 Indefinite Bermuda $ 42 $ — N/A Canada $ 8 $ 2 2026 China $ 117 $ 29 2024 Colombia $ 1,970 $ 630 Indefinite Gibraltar $ 147 $ — Indefinite Hong Kong $ 184 $ 30 Indefinite Japan $ 338 $ 117 Indefinite Mexico $ 10,950 $ 3,285 2020-2029 Norway $ 281 $ 62 Indefinite Russia (2) $ 50 $ 10 Indefinite Singapore $ 138 $ 23 Indefinite South Africa $ 650 $ 182 Indefinite Sweden $ 463 $ 99 Indefinite Switzerland (3) $ 6,591 $ 606 2020-2025 Taiwan $ 5,133 $ 1,027 2020-2029 Ukraine (4) $ 703 $ 127 Indefinite United States - Federal $ 1,553 $ 326 Indefinite United Kingdom $ 431 $ 72 Indefinite (2) On August 1, 2016, the Company established a legal entity in Russia. (3) On July 1, 2019, the Company suspended operations in Switzerland, but maintains the legal entity. (4) On March 21, 2014, the Company suspended operations in the Ukraine, but maintains the legal entity. In addition to net operating loss attributes, the Company has recorded a foreign tax credit carryforward of $ 4.2 million , which will begin to expire in 2025 and a charitable contribution carryforward of $0.1 million , which will expire between 2019-2023. The Company maintains a full valuation against both the foreign tax credits and the charitable contribution carryforward. At December 31, 2019 and 2018 , the Company’s valuation allowance was $12.4 million and $12.8 million , respectively. The provisions of ASC Topic 740 require a company to record a valuation allowance when the “more likely than not” criterion for realizing a deferred tax asset cannot be met. A company is to use judgment in reviewing both positive and negative evidence of realizing a deferred tax asset. Furthermore, the weight given to the potential effect of such evidence is commensurate with the extent the evidence can be objectively verified. The valuation allowances presented below (in millions) at December 31, 2019 and 2018 , represented a reserve against the Company’s net deferred tax asset the Company believed the “more likely than not ” criterion for recognition purposes could not be met. The U.S. valuation allowance decreased due to the utilization of net operating losses in the current year. Country 2019 2018 Australia $ 0.2 $ 0.3 China 0.3 0.3 Colombia 0.6 0.6 Hong Kong — 0.1 Mexico 3.3 3.1 Norway 0.1 0.1 South Africa 0.2 0.2 Sweden — 0.1 Switzerland 0.5 — Taiwan 1.0 0.9 Ukraine 0.1 0.1 United Kingdom 0.1 0.1 United States 6.0 6.9 Other Jurisdictions — — Total $ 12.4 $ 12.8 U.S. Tax On December 22, 2017, President Trump signed into law H.R. 1/Public Law No. 115-97, “An Act to provide for reconciliation pursuant to titles II and V of the concurrent resolution on the budget for fiscal year 2018,” which reduced the US federal tax rate from 35% to 21% for tax years beginning after January 1, 2018. Pursuant to ASC 740-10-25-47, the effects of the new federal legislation are recognized upon enactment, which is the date the president signs a bill into law. Deferred tax assets (liabilities) are classified in the accompanying Consolidated Balance Sheets of December 31 as follows (in thousands) : 2019 2018 Deferred tax assets $ 881 $ 1,928 Deferred tax liabilities (3 ) (3 ) Net deferred tax assets $ 878 $ 1,925 Topic 740 prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements, uncertain tax positions that it has taken or expects to take on a tax return. Topic 740 requires that a company recognize in its financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2019 , the Company recorded $0.2 million in other long-term liabilities related to uncertain income tax positions and income tax reserves associated with various audits. At December 31, 2019 , the Company had unrecognized tax benefits of $0.2 million that, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, for the years ended December 31, 2019 and 2018 (in thousands): 2019 2018 Balance as of January 1 $ 79 $ 79 Additions for tax positions related to the current year — — Additions for tax positions of prior years — — Reductions of tax positions of prior years — — Settlements — — Balance as of December 31 $ 79 $ 79 The Company recognizes interest and/or penalties related to uncertain tax positions in current income tax expense. For each the years ended December 31, 2019 and December 31, 2018, the Company had accrued interest and penalties of $0.1 million in the consolidated balance sheet, of which $13 thousand and $11 thousand were accrued in the consolidated statement of operations, for December 31, 2019 and 2018, respectively. Although it is not reasonably possible to estimate the amount by which unrecognized tax benefits may increase or decrease within the next twelve months due to uncertainties regarding the timing of any examinations, the Company does not expect its unrecognized tax benefits to decrease during the next twelve months. The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. As of December 31, 2019, the tax years that remained subject to examination by a major tax jurisdiction for the Company’s most significant subsidiaries were as follows: Jurisdiction Open Years Australia 2012-2018 Japan 2015-2018 Republic of Korea 2015-2018 Switzerland 2015-2018 United States 2016-2018 |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES | TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES The Company made cash donations of $ 0.7 million and $ 0.8 million to the M5M Foundation for the year ended December 31, 2019 and December 31, 2018 , respectively. The M5M Foundation is a 501(c)(3) charitable organization that works to combat the epidemic of childhood malnutrition on a global scale. Several of the Company’s directors and officers and their family members serve on the board of the M5M Foundation, including: • Al Bala, the Company’s CEO and President; • Chris Simons, the Company’s Regional Vice President EMEA; and • Landen Fredrick, the Company's Chief Sales and Marketing Officer and President, North America and son of J. Stanley Fredrick, the Company’s Chairman of the Board and a major shareholder. We paid employment compensation of approximately $321,000 in 2019 and 2018 for salary, bonus, auto allowance, and other compensation to Landen Fredrick. Landen Fredrick is the son of J. Stanley Fredrick, the Company’s Chairman of the Board and a major shareholder. In addition, Landen Fredrick participated in the employee health care benefit plans available to all employees of the Company. Effective January 1, 2018, Landen Fredrick was promoted from Senior Vice President of Global Operations to Chief Global Sales Officer and President, North America. Mr. Fredrick had served as Senior Vice President, Global Operations since August of 2016. Prior to that, Mr. Fredrick served as Senior Vice President, Supply Chain and IT since August of 2015, Vice President, Global Operations since May of 2013, Vice President, North American Sales and Operations since January of 2011, Vice President, North American Sales since February of 2010 and as Senior Director of Tools and Training since his hire in May of 2006. Landen Fredrick also serves as chairman of the Board of the M5M Foundation. Mr. Kevin Robbins is a member of the Company's Board of Directors, serving on the Science and Marketing Committee, and is also an independent associate, holding a position in the Company's associate global downline network marketing system. He has also consulted on the associate commission plan. In addition, several of Mr. Robbins’ family members are independent associates. The Company pays commissions and incentives to its independent associates and, during 2019 and 2018 , the Company paid aggregate commissions and incentives to Mr. Robbins and his family of approximately $2.0 million and $2.2 million , respectively. The aggregate amount of commissions and incentives paid to Mr. Robbins was approximately $0.2 million in each of 2019 and 2018 , respectively. The aggregate amount of commission and incentives paid in 2019 and 2018 to Mr. Robbins' father, Ray Robbins, who holds positions in the Company's associate global downline network marketing system was approximately $1.8 million and $2.0 million , respectively. All commissions and incentives paid to Mr. Robbins and his family members are in accordance with the Company’s global associate career and compensation plan. The Company paid less than $0.1 million to Mr. Kevin Robbins for consulting fees in 2019. Johanna Bala, the wife of Al Bala, the Company’s Chief Executive Officer and President, is an independent associate who earns commissions and incentives. The aggregate amount of commission and incentives paid to Johanna Bala was approximately $0.1 million in 2019 and $0.2 million in 2018 . The Company paid less than $0.1 million of commissions and incentives to other members of Al Bala's family in both years. All commissions and incentives paid to Al Bala's family members are in accordance with the Company’s global associate career and compensation plan. |
EMPLOYEE BENEFIT PLANS
EMPLOYEE BENEFIT PLANS | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
EMPLOYEE BENEFIT PLANS | EMPLOYEE BENEFIT PLANS Employee Retirement Plan Effective May 9, 1997 , the Company adopted a Defined Contribution 401(k) and Profit Sharing Plan (the “401(k) Plan”) for its United States and Canada employees. The 401(k) Plan covers all regular full-time and part-time employees who have completed three months of service and attained the age of twenty-one . United States employees can contribute up to 100 percent of their annual compensation but are limited to the maximum annual dollar amount allowable under the Internal Revenue Code. The 401(k) plan permits matching and discretionary employer contributions. The Company’s matching contributions for its United States and Canada employees vest ratably over a five -year period. During each of the years ended December 31, 2019 and 2018 , the Company contributed approximately $0.3 million and $0.3 million to the 401(k) Plan for matching contributions, respectively. The Company also sponsors a non-U.S. defined benefit plan covering its employees in its Japan subsidiary (the “Benefit Plan”). Benefits under the Benefit Plan are based on a point system for position grade and years of service. The Company utilizes actuarial methods. Inherent in the application of these actuarial methods are key assumptions, including, but not limited to, discount rates and expected long-term rates of return on plan assets. Changes in the related Benefit Plan costs may occur in the future due to changes in the underlying assumptions, changes in the number and composition of plan participants, and changes in the level of benefits provided. The Company uses a measurement date of December 31 to evaluate and record any post-retirement benefits related to the Benefit Plan. Projected Benefit Obligation and Fair Value of Plan Assets The Benefit Plan’s projected benefit obligation and valuation of plan assets were as follows for the years ended December 31 (in thousands) : Projected benefit obligation: 2019 2018 Balance, beginning of year $ 388 $ 367 Service cost 56 61 Interest cost 1 1 Liability (gain) loss (2 ) (18 ) Benefits paid to participants (128 ) (31 ) Foreign currency 4 8 Balance, end of year $ 319 $ 388 Plan assets: 2019 2018 Fair value, beginning of year $ — $ — Company contributions 128 31 Benefits paid to participants (128 ) (31 ) Fair value, end of year $ — $ — Funded status of the Benefit Plan as of December 31 (in thousands) : 2019 2018 Benefit obligation $ (319 ) $ (388 ) Fair value of plan assets — — Excess of benefit obligation over fair value of plan assets $ (319 ) $ (388 ) Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands) : 2019 2018 Accrued benefit liability $ (319 ) $ (388 ) Transition obligation and unrealized gain (234 ) (273 ) Net amount recognized in the consolidated balance sheets $ (553 ) $ (661 ) Years Ended December 31, Other changes recognized in comprehensive income (in thousands): 2019 2018 Net periodic cost $ 14 $ 21 Current year actuarial (gain) loss (2 ) (18 ) Amortization of transition obligation (4 ) (4 ) Total recognized in other comprehensive income (loss) (6 ) (22 ) Total recognized in comprehensive income $ 8 $ (1 ) As of December 31, Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain (in thousands) : 2019 2018 Transition obligation $ 58 $ 40 Prior service cost 174 215 Net actuarial gain (loss) 2 18 Total recognized in accumulated other comprehensive gain $ 234 $ 273 2018 estimated amounts of amortized transition obligation (in thousands): 2018 Transition obligation $ (4 ) As of December 31, Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands): 2019 2018 Projected benefit obligation $ 319 $ 388 Accumulated benefit obligation 319 388 Fair value of plan assets — — The weighted-average assumptions to determine the benefit obligation and net cost are as follows: 2019 2018 Discount rate 0.20 % 0.30 % Rate of increase in compensation levels — — Components of Expense Service Cost for the Benefit Plan is included within selling, general and administrative expenses and all other items noted in the table below (Interest Cost, Amortization of Transition Obligation, and Prior Service Cost) are included within other income and expense. Pension costs, which are included within Consolidated Statement of Operations are detailed below for the years ended December 31 (in thousands) : 2019 2018 Service cost $ 56 $ 61 Interest cost 1 1 Amortization of transition obligation 4 4 Gain (loss) (4 ) (3 ) Prior service cost (43 ) (42 ) Total pension expense $ 14 $ 21 Estimated Benefits and Contributions The Company expects to contribute approximately $39,000 to the Benefit Plan in 2020 . As of December 31, 2019 , benefits expected to be paid by the Benefit Plan for the next ten years is approximately as follows (in thousands) : 2020 $ 39 2021 32 2022 62 2023 24 2024 119 Next five years 118 Total expected benefits to be paid $ 394 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION Summary of Stock Plan The Company currently has one active stock-based compensation plan, the 2017 Plan, which was adopted by the Company’s Board of Directors on April 17, 2017 and was approved by its shareholders on June 8, 2017 , and subsequently amended by the Board in February 2019, which was approved by the Company's shareholders on June 11, 2019. The 2017 Plan supersedes the Mannatech, Incorporated 2008 Stock Incentive Plan, as amended, which was set to expire on February 20, 2018 . The Board has reserved a maximum of 370,000 shares of our common stock that may be issued under the 2017 Plan (subject to adjustments for stock splits, stock dividends or other changes in corporate capitalization). As of December 31, 2019 , the Company had a total of 162,767 shares available for grant under the 2017 Plan, which expires on April 16, 2027 . The 2017 Plan provides for grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock and performance stock units to our employees, board members, and consultants. However, only employees of the Company and its corporate subsidiaries are eligible to receive incentive stock options. The exercise price per share for all stock options will be no less than the market value of a share of common stock on the date of grant. Any incentive stock option granted to an employee owning more than 10% of our common stock will have an exercise price of no less than 110% of our common stock’s market value on the grant date. The majority of stock options vest over two or three years, and generally are granted with a term of ten years, or five years in the case of an incentive option granted to an employee who owns more than 10% of our common stock. A summary of changes in stock options outstanding during the year ended December 31, 2019 , is as follows: 2019 Number of Options (in thousands) Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at beginning of year 421 $ 16.68 Granted 15 16.68 Exercised (2 ) 5.72 Expired (28 ) 23.88 Forfeit (25 ) 16.37 Outstanding at end of year 381 $ 16.24 4.97 $ — Options exercisable at year end 326 $ 16.25 5.48 $ — During 2019 , the Company issued 1,667 new shares upon the exercise of options and granted 15,000 new options to management and members of the Board. Options exercised during the year ending December 31, 2019 and December 31, 2018 had a total intrinsic value, calculated as the difference between the exercise date stock price and the exercise price of less than $0.1 million . Non-vested shares at December 31, 2019 and 2018 were approximately 55,335 and 126,000 , respectively. Valuation and Expense Information Under FASB ASC Topic 718 Compensation – Stock Compensation The Company is required to measure and recognize compensation expense related to any outstanding and unvested stock options previously granted, and thereafter recognize, in its consolidated financial statements, compensation expense related to any new stock options granted after implementation using a calculated fair-value based option-pricing model. The Company uses the Black-Scholes option-pricing model to calculate the fair value of all of its stock options and its assumptions are based on historical information. The following assumptions were used to calculate the compensation expense and the calculated fair value of stock options granted each year: 2019 2018 Dividend yield: 7.5 % 2.4-2.9 % Risk-free interest rate: 1.9 % 2.5-2.8 % Expected market price volatility: 47.6 % 55.6-56.4 % Average expected life of stock options: 4.5 years 4.5 years The computation of the expected volatility assumption used in the Black-Scholes calculations for new grants is based on historical volatilities of the Company’s stock. The expected life assumptions are based on the Company’s historical employee exercise and forfeiture behavior. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2019 and 2018 was $3.72 and $7.29 per share, respectively. The total fair value of awards vested during the years ended December 31, 2019 and 2018 was $0.4 million and $0.6 million , respectively. The Company recorded the following amounts related to the expense of the fair values of options and restricted share awards during the years ended December 31, 2019 and 2018 (in thousands) : 2019 2018 Selling, general and administrative expenses and income from operations before income taxes $ 456 $ 888 Benefit for income taxes (23 ) (50 ) Effect on net income $ 433 $ 838 As of December 31, 2019 , the Company had approximately $0.2 million of total unrecognized compensation expense related to stock options and restricted share awards currently outstanding, to be recognized in future years, ending December 31, as follows (in thousands): Total gross unrecognized compensation expense Total tax benefit associated with unrecognized compensation expense Total net unrecognized compensation expense 2020 $ 136 $ 11 $ 125 2021 15 3 12 $ 151 $ 14 $ 137 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases The Company leases certain office space, automobiles, computer hardware, and warehouse equipment under various non-cancelable operating leases. Some of these leases have renewal options. The Company also leases equipment under various month-to-month cancelable operating leases. For the years ended December 31, 2019 and 2018 , total rent expense was approximately $3.2 million and $3.7 million , respectively. Approximate future minimum rental commitments for non-cancelable operating leases (in thousands) are as follows: Years ending December 31, 2020 $ 2,131 2021 1,592 2022 1,145 2023 606 2024 613 Thereafter 2,139 $ 8,226 Purchase Commitments The Company maintains supply agreements with its suppliers and manufacturers. Some of the supply agreements contain exclusivity clauses and/or minimum annual purchase requirements. In November 2016, the Company entered into a four -year supply agreement to purchase an aloe vera powder in whole leaf aloe form and an aloe vera gel extract from Natural Aloe de Costa Rica, S.A. As of December 31, 2019 , the Company is required to purchase an aggregate of $5.3 million through 2022. Failure to satisfy minimum purchase requirements could result in the loss of exclusivity. Royalty and Consulting Agreements The Company utilizes royalty agreements with individuals and entities to provide compensation for items relating to developed products, websites and emails provided to our associates. The Company paid royalties of $0.1 million for each of the years ended December 31, 2019 and December 31, 2018 , respectively. Employment Agreements The Company has non-cancelable employment agreements with certain executives. If the employment relationships with these executives were terminated, as of December 31, 2019 , the Company would continue to be indebted to the executives for $0.4 million , payable through 2020 . |
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2019 | |
LITIGATION [Abstract] | |
LITIGATION | LITIGATION Administrative Proceedings Mannatech Korea, Ltd. v. Busan Custom Office , Busan District Court, Korea On or before April 12, 2015, Mannatech Korea, Ltd. filed a suit against the Busan Custom Office (“BCO”) to challenge BCO’s method of calculation regarding its assessment notice issued on July 11, 2013. The assessment notice included an audit of the Company’s imported goods covering fiscal years 2008 through 2012 and required the Company to pay $1.0 million for this assessment, all of which was paid in January 2014. Both parties submitted a response to the Court’s inquiry on January 15, 2016. The final hearing for the case was held on May 26, 2016 where each party presented their respective arguments. The Court set the decision hearing on October 27, 2016, and the Court decided the case in the Company’s favor. However, on November 18, 2016, BCO filed an appeal to the Busan High Court. The first hearing occurred on March 31, 2017, and the second hearing occurred on April 21, 2017. The final hearing was held on June 2, 2017. The Court issued its decision on June 30, 2017 in favor of the BCO. The Company appealed this decision on August 24, 2017. Since the appeal of the decision of the Busan High Court to the Supreme Court, there have been no further developments and the Company is still awaiting the decision of the Supreme Court. This matter remains open. Litigation - Product Liability Meeja Kim, et al., v. Mannatech Korea and Eunbee Cho, Seoul Southern District Court 2020-Gadan-216374 On March 4, 2020 a complaint was filed against Mannatech Korea. Mannatech Korea was served on March 10, 2020. The plaintiffs are the surviving spouse and three children (the “Plaintiffs”) of Kong Seokhwan, a cancer patient who died in October 2017. The Plaintiffs allege that co-defendant and former Mannatech Associate, Eunbee Cho, instructed the deceased to take the Company’s products as treatment for cancer. Eunbee Cho was found guilty of fraud and began serving a sentence of one year and six months in November 2019. The Plaintiffs are seeking damages in the amount of 110 million KRW (USD $90,000.00) plus interest of 12% per year. Mannatech Korea has engaged local counsel to defend this matter. It is not possible at this time to predict whether the Company will incur any liability, or to estimate the ranges of damages, if any, which may be incurred in connection with this matter. However, Mannatech Korea believes it has a valid defense and will vigorously defend this claim. This matter remains open. Litigation - Product Liability Ruiguo Ma v. MTEX Hong Kong Limited and Beili Guan, Case No. 2019-Jin-0116-Civil-2339, Binhai New District Court, Tianjin, China On or before September 2, 2019, the Company received service of process of the above-captioned matter. Ruiguo Ma (the “Plaintiff”) is alleging that his child suffered tooth decay after consuming Mannatech’s MannaBears product and underwent several surgeries. The Plaintiff is seeking damages of approximately $50,000 USD. The Company has engaged local counsel to defend this case. The Company has provided notice to its insurance carrier. At this time the potential damages do not meet the deductible; therefore, the case has not been tendered to the carrier. The first hearing occurred on September 11, 2019, and the second hearing occurred on October 30, 2019, where each party presented their respective arguments. The Company anticipates a judgment in the first quarter of 2020. It is not possible at this time to predict whether the Company will incur any liability, or to estimate the ranges of damages, if any, which may be incurred in connection with this matter. However, the Company believes it has a valid defense and will vigorously defend this claim. This matter remains open. Litigation in General The Company has incurred several claims in the normal course of business. The Company believes such claims can be resolved without any material adverse effect on its consolidated financial position, results of operations, or cash flows. The Company maintains certain liability insurance; however, certain costs of defending lawsuits are not covered by or only partially covered by its insurance policies, including claims that are below insurance deductibles. Additionally, insurance carriers could refuse to cover certain claims, in whole or in part. The Company accrues costs to defend itself from litigation as they are incurred. The outcome of litigation is uncertain, and despite management’s views of the merits of any litigation, or the reasonableness of the Company’s estimates and reserves, the Company’s financial statements could nonetheless be materially affected by an adverse judgment. The Company believes it has adequately reserved for the contingencies arising from current legal matters where an outcome was deemed to be probable, and the loss amount could be reasonably estimated. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
SHAREHOLDERS' EQUITY | SHAREHOLDERS’ EQUITY Preferred Stock On May 19, 1998, the Company amended its Amended and Restated Articles of Incorporation to reduce the number of authorized shares of common stock from 100.0 million to 99.0 million and the Company authorized 1.0 million shares of preferred stock with a par value of $0.01 per share. No shares of preferred stock have ever been issued or outstanding. Treasury Stock On June 30, 2004, the Company’s Board of Directors authorized the Company to repurchase, in the open market, the lesser of (i) 131,756 shares of its common stock and (ii) $1.3 million of its shares, (the “June 2004 Plan”). On August 28, 2006, a second program permitting the Company to purchase, in the open market, up to $20 million of its outstanding shares was approved by our Board of Directors (the “August 2006 Plan”). On July 14, 2011, the Company’s Board of Directors authorized the Company to reactivate the June 2004 Plan. On August 31, 2016, the Company's Board of Directors reactivated the August 2006 Plan. In August of 2016 and December of 2017, the Company's Board of Directors authorized the Company to repurchase up to $0.5 million , respectively, of the Company's outstanding common shares in open market transactions. In August of 2018 and November of 2018, the Company's Board of Directors reactivated an additional $0.5 million (of the original $20.0 million authorization), respectively, in shares of the Company's common stock to be repurchased in the open market. As of August 8, 2017, the maximum number of shares available for repurchase under the June 2004 Plan was 19,084 , and the total number of shares purchased in the open market under the June 2004 Plan was 112,672 . As of December 31, 2019 , there was $18.6 million remaining for repurchase under the August 2006 Plan, and the total value of shares repurchased in the open market under the August 2006 Plan was $1.4 million . The Company does not have any stock repurchase plans or programs other than the June 2004 Plan and the August 2006 Plan. On May 17, 2018, we announced our intention to commence a modified Dutch auction cash tender offer to purchase up to $16.0 million of our common stock. The tender offer commenced on May 18, 2018 and expired on June 15, 2018. As a result of the tender offer, we accepted for purchase 316,659 shares of our common stock at a purchase price of $21.00 per share, for an aggregate purchase price of $6.6 million , excluding fees and expenses relating to the tender offer, which was funded from cash on hand. During the year ended December 31, 2019 , the Company repurchased 18,753 shares at an average price of $16.25 . During the year ended December 31, 2018, the Company repurchased 29,963 shares at an average price of $20.02 . Equity-Based Compensation During 2019 , 1,667 shares were issued for stock option exercises and a total of 14,568 shares were issued to the members of the Board as compensation for their work on the Board. Accumulated Other Comprehensive Income Accumulated other comprehensive income displayed in the Consolidated Statements of Shareholders’ Equity represents the results of certain shareholders’ equity changes not reflected in the consolidated statements of operations, such as foreign currency translation and certain pension and postretirement benefit obligations. The after-tax components of accumulated other comprehensive income, are as follows (in thousands) : Foreign Currency Translation Pension Postretirement Benefit Obligation Accumulated Other Comprehensive Income, Net Balance as of December 31, 2017 $ 5,703 $ 281 $ 5,984 Current-period change before reclassifications (1,661 ) — (1,661 ) Amounts reclassified from accumulated other comprehensive income (loss) — 4 4 Income tax provision — 10 10 Balance as of December 31, 2018 $ 4,042 $ 295 $ 4,337 Current-period change before reclassifications (607 ) — (607 ) Amounts reclassified from accumulated other comprehensive income (loss) — 41 41 Income tax provision — (14 ) (14 ) Balance as of December 31, 2019 $ 3,435 $ 322 $ 3,757 Dividends On March 12, 2019, the Board declared a dividend of $0.125 per share that was paid on March 29, 2019 to shareholders of record on March 22, 2019, for an aggregate amount of $0.3 million . On May 31, 2019, the Board declared a dividend of $0.125 per share that was paid on June 28, 2019 to shareholders of record on June 21, 2019, for an aggregate amount of $0.3 million . On August 15, 2019, the declared a dividend of $0.125 per share that was paid on September 24, 2019 to shareholders of record on September 10, 2019, for an aggregate amount of $0.3 million . On November 18, 2019, the Board declared a dividend of $0.125 per share that was paid on December 27, 2019 to shareholders of record on December 13, 2019, for an aggregate amount of $0.3 million . During the year ended December 31, 2019, the Company declared and paid dividends amounting to an aggregate of $1.2 million . During the year ended December 31, 2018, the Company declared and paid dividends amounting to an aggregate of $3.1 million . Payment of future dividends is at the discretion of our Board of Directors. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The Company calculates basic Earnings per Share ("EPS") by dividing net income (loss) by the weighted-average number of common shares outstanding for the period. Diluted EPS also reflects the potential dilution that could occur if common stock were issued for awards outstanding under the Mannatech, Incorporated 2017 Stock Incentive Plan. In determining the potential dilution effect of outstanding stock options during 2019, the Company used the average common stock close price of $17.11 per share. For the year ended December 31, 2019, there were 2.39 million weighted-average common shares outstanding used for the basic EPS calculation. Approximately 0 .05 million shares subject to options were included in the calculation resulting in 2.44 million dilutive shares used to calculate diluted EPS. For the year ended December 31, 2019, approximately 1.0 million of the Company's stock options were excluded from the diluted EPS calculation as the effect would have been antidilutive. For the year ended December 31, 2018, shares of the Company's stock subject to options were excluded from the diluted EPS calculation as their effect would have been antidilutive. The Company reported a net loss for the year ended December 31, 2018. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION 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-five countries. Each of the business units sells similar packs (with the exception of the United States, Canada, South Africa, Japan, Australia, New Zealand, Singapore, Hong Kong, and Taiwan where packs have been replaced with associate fees, see Note 1 Organization and Summary of Significant Accounting Policies ) and products and possesses similar economic characteristics, such as selling prices and gross margins. In each country, the Company markets its products and pays commissions and incentives in similar market environments. The Company’s management reviews its financial information by country and focuses its internal reporting and analysis of revenues by packs and product sales. The Company sells its products through its independent associates who occupy positions in our network and distribute products through similar distribution channels in each country. No single independent associate has ever accounted for more than 10% of the Company’s consolidated net sales. The Company also operates a non-direct selling business in mainland China. Our subsidiary in China, Meitai, is operating as a traditional retailer under a cross-border e-commerce model. Meitai cannot legally conduct a direct selling business in China unless it acquires a direct selling license in China. The Company operates facilities in thirteen countries and sells product in twenty-six countries around the world. These facilities are located in the United States, Canada, Australia, the United Kingdom, Japan, the Republic of Korea (South Korea), Taiwan, South Africa, Mexico, Hong Kong, Singapore, Colombia and China. Each facility services different geographic areas. We currently sell our products in three regions: (i) the Americas (the United States, Canada, Colombia and Mexico); (ii) EMEA (Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, Namibia, the Netherlands, Norway, South Africa, Spain, Sweden and the United Kingdom); (iii) Asia/Pacific (Australia, Japan, New Zealand, the Republic of Korea, Singapore, Taiwan, Hong Kong and China). Consolidated net sales shipped to customers in these regions, along with pack and product information for the years ended December 31, are as follows (in millions, except percentages) : Region 2019 2018 Americas $ 48.0 30.4 % $ 58.7 33.8 % Asia/Pacific 96.0 60.9 % 101.7 58.6 % EMEA 13.7 8.7 % 13.2 7.6 % Total $ 157.7 100.0 % $ 173.6 100.0 % 2019 2018 Consolidated product sales $ 154.6 $ 170.2 Consolidated pack sales and associate fees 2.3 2.5 Consolidated other 0.8 0.9 Total $ 157.7 $ 173.6 Long-lived assets by region, which include property and equipment and construction in progress for the Company and its subsidiaries, as of December 31, reside in the following regions, as follows (in millions) : Region 2019 2018 Americas $ 5.1 $ 5.5 Asia/Pacific 1.0 1.3 EMEA — — Total $ 6.1 $ 6.8 Inventory balances by region, which consist of raw materials and finished goods, including promotional materials, and offset by obsolete inventories, for the Company and its subsidiaries, reside in the following regions as of December 31, as follows (in millions) : Region 2019 2018 Americas $ 5.4 $ 4.5 Asia/Pacific 3.8 6.3 EMEA 1.0 2.0 Total $ 10.2 $ 12.8 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | SCHEDULE II — VALUATION AND QUALIFYING ACCOUNTS (in thousands) Additions Balance at Charged to Charged to Deductions Balance at Year Ended December 31, 2018 Deducted from asset accounts: Allowance for doubtful accounts $ 582 543 — (355 ) $ 770 Allowance for obsolete inventories $ 566 710 — (752 ) $ 524 Valuation allowance for deferred tax assets $ 11,436 1,357 — — $ 12,793 Included in accrued expenses: Reserve for sales returns $ 117 1,188 — (1,229 ) $ 76 Year Ended December 31, 2019 Deducted from asset accounts: Allowance for doubtful accounts $ 770 82 — (144 ) $ 708 Allowance for obsolete inventories $ 524 986 — (636 ) $ 874 Valuation allowance for deferred tax assets $ 12,793 604 — (1,022 ) $ 12,375 Included in accrued expenses: Reserve for sales returns $ 76 1,068 — (1,076 ) $ 68 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Principles of Consolidation | Principles of Consolidation The consolidated financial statements and footnotes include the accounts of the Company and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. | |
Use of Estimates | Use of Estimates The preparation of the Company’s consolidated financial statements in accordance with generally accepted accounting principles requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Company’s estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. However, actual results may differ from these estimates under different assumptions or conditions. The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies . | |
Foreign Currency Translation | Foreign Currency Translation The United States dollar is the functional currency for the majority of the Company’s foreign subsidiaries. As a result, nonmonetary assets and liabilities are remeasured at their approximate historical rates, monetary assets and liabilities are remeasured at exchange rates in effect at the end of the year, and revenues and expenses are remeasured at weighted-average exchange rates for the year. The local currency is the functional currency of our subsidiaries in Columbia, Japan, Republic of Korea, Taiwan, Norway, Denmark, Sweden, Mexico and China. These subsidiaries’ assets and liabilities are translated into United States dollars at exchange rates existing at the balance sheet dates, revenues and expenses are translated at weighted-average exchange rates, and shareholders’ equity and intercompany balances are translated at historical exchange rates. The foreign currency translation adjustment is recorded as a separate component of shareholders’ equity and is included in accumulated other comprehensive income. Transaction losses totaled approximately $0.7 million for the year ended December 31, 2019 and transaction gains totaled approximately $0.3 million for the year ended December 31, 2018 , and are included in other expense, net in the Company’s consolidated statements of operations. | |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are received within 24 to 72 hours. As of December 31, 2019 and 2018 , credit card receivables were $0.7 million and $1.6 million , respectively, and cash and cash equivalents held in bank accounts in foreign countries totaled $18.2 million and $19.9 million , respectively. The Company invests cash in liquid instruments, such as money market funds and interest bearing deposits. The Company also holds cash in high quality financial institutions and does not believe it has an excessive exposure to credit concentration risk. At December 31, 2019, a portion of our cash and cash equivalent balances were concentrated within the Republic of South Korea, with total net assets within this foreign location totaling $19.2 million . In addition, for the year ended December 31, 2019, a concentrated portion of our operating cash flows were earned from operations within the Republic of South Korea. An adverse change in economic conditions within the Republic of South Korea could negatively affect the Company’s results of operations. | |
Restricted Cash | Restricted Cash The Company is required to restrict cash for: (i) direct selling insurance premiums and credit card sales in the Republic of Korea; (ii) reserve on credit card sales in the United States and Canada; and (iii) Australia building lease collateral. As of December 31, 2019 and 2018 , our total restricted cash was $6.2 million and $8.7 million , respectively. The Company classifies the restricted cash held in Korea and Australia as long-term since it relates to assets and services contracted for longer than one year. | |
Accounts Receivable | Accounts Receivable Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of December 31, 2019 and 2018 , receivables consisted primarily of amounts due from preferred customers and associates. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due and writes-off receivables when they become uncollectible. As of December 31, 2019 and 2018 , the Company held an allowance for doubtful accounts of $0.7 million and $0.8 million , respectively. | |
Inventories | Inventories Inventories consist of raw materials, finished goods, and promotional materials that are stated at the lower of cost (using standard costs that approximate average costs) or net realizable value. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off. | |
Prepaid Expense and Other Current Assets [Policy Text Block] | Prepaid Expenses and Other Current Assets Prepaid expenses and other current assets were $2.2 million and $3.4 million at December 31, 2019 and 2018 , respectively. Included in the December 31, 2019 and 2018 balances were $0.8 million and $1.0 million in other prepaid assets, respectively. Also included in the balances at December 31, 2019 and 2018 were $0.7 million and $1.8 million for other prepaid deposits, respectively. At December 31, 2019 the balance in prepaid inventory was $0.7 million . | |
Property and Equipment | Property and Equipment Property and equipment are stated at cost, less accumulated depreciation and amortization computed using the straight-line method over the estimated useful life of each asset. Leasehold improvements are amortized over the shorter of the lease term or the estimated useful life of the improvements. Expenditures for maintenance and repairs are charged to expense as incurred. The cost of property and equipment sold or otherwise retired and the related accumulated depreciation are removed from the accounts and any resulting gain or loss is included in other operating costs in the accompanying consolidated statements of operations. The estimated useful lives of fixed assets are as follows: Estimated useful life Office furniture and equipment 5 to 7 years Computer hardware and software 3 to 5 years Automobiles 3 to 5 years Leasehold improvements (1) 2 to 10 years (1) The Company amortizes leasehold improvements over the shorter of the useful estimated life of the leased asset or the lease term. Property and equipment are reviewed for impairment whenever an event or change in circumstances indicates that the carrying amount of an asset or group of assets may not be recoverable. The impairment review includes a comparison of future projected cash flows generated by the asset or group of assets with its associated net carrying value. If the net carrying value of the asset or group of assets exceeds expected cash flows (undiscounted and without interest charges), an impairment loss is recognized to the extent the carrying amount of the asset exceeds its fair value. | |
Other Assets | Other Assets At December 31, 2019 and 2018 , other assets were $9.6 million and $3.9 million , respectively. Included in the December 31, 2019 and 2018 balances were deposits for building leases in various locations of $2.2 million and $2.0 million , respectively. Also included in the December 31, 2019 and 2018 balances were $1.6 million and $1.7 million , respectively, representing a deposit with Mutual Aid Cooperative and Consumer in the Republic of Korea, an organization established by the Republic of Korea’s Fair Trade Commission’s approval to compensate and protect consumers who participate in network marketing activities from damages. Other assets at each of December 31, 2019 and 2018 also include $0.2 million of indefinite lived intangible assets relating to the Manapol ® powder trademark. The December 31, 2019 balance also includes $5.6 million of operating lease right-of-use assets. See Note 5, Leases for more information. | |
Notes Payable | Notes Payable Notes payable were $1.1 million and $1.6 million as of December 31, 2019 and December 31, 2018 , respectively, as a result of funding from a capital financing agreement related to our investment in leasehold improvements, computer hardware and software and other financing arrangements. Payments are made monthly according to the terms of the agreements which have a weighted average effective interest rate of 5.8% and are collateralized by leasehold improvements and computer hardware and software. At December 31, 2019 , the current portion was $0.7 million and the long-term portion was $0.4 million . At December 31, 2018 , the current portion was $0.7 million and the long-term portion was $0.9 million . | |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities were $6.2 million and $2.3 million for the years ending December 31, 2019 and 2018 , respectively. At December 31, 2018, we recorded $ 1.3 million of lease incentive obligation for leasehold improvements at our corporate headquarters. At each of December 31, 2019 and 2018 , we recorded $0.2 million , respectively, in other long-term liabilities related to uncertain income tax positions (see Note 7, Income Taxes ). Certain operating leases for the Company’s regional office facilities contain a restoration clause that requires the Company to restore the premises to its original condition. At December 31, 2019 and 2018 , accrued restoration costs related to these leases amounted to $0.3 million and $0.4 million , respectively. At December 31, 2019 and 2018 , government mandated severance accruals in certain international offices amounted to $0.4 million and $0.3 million , respectively. The Company also recorded a long-term liability for an estimated defined benefit obligation related to a non-U.S. defined benefit plan for its Japan operations of $0.3 million and $0.4 million as of December 31, 2019 and 2018 , respectively (See Note 9, Employee Benefit Plans ). The December 31, 2019 balance also includes $5.3 million of long-term operating lease right-of-use obligations. See Note 5, Leases for more information. | |
Revenue Recognition and Deferred Commissions | Revenue Recognition The Company’s revenue is derived from sales of individual products and associate fees or, in certain geographic markets, starter and renewal packs. Substantially all of the Company’s product sales are made at published wholesale prices to associates and preferred customers. The Company records revenue net of any sales taxes and records a reserve for expected sales returns based on its historical experience. The Company recognizes revenue from shipped products when control of the product transfers to the customer, thus the performance obligation is satisfied. Corporate-sponsored event revenue is recognized when the event is held. Orders placed by associates or preferred customers constitute our contracts. Product sales placed in the form of an automatic order contain two performance obligations - a) the sale of the product and b) the loyalty program. For these contracts, the Company accounts for each of these obligations separately as they are each distinct. The transaction price is allocated between the product sale and the loyalty program on a relative standalone selling price basis. Sales placed through a one-time order contain only the first performance obligation noted above - the sale of the product. The Company provides associates with access to a complimentary three-month package for the Success Tracker TM and Mannatech+ online business tools with the first payment of an associate fee. The first payment of an associate fee contains three performance obligations a) the associate fee, whereby the Company provides an associate with the right to earn commissions, bonuses and incentives for a year, b) three months of complimentary access to utilize the Success Tracker™ online tool and c) three months of complimentary access to utilize the Mannatech+ online business tool. The transaction price is allocated between the three performance obligations on a relative standalone selling price basis. Associates do not have complimentary access to online business tools after the first contractual period. With regard to both of the aforementioned contracts, the Company determines the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts. Our sales mix for the years ended December 31, was as follows (in millions, except percentages) : 2019 Percentage 2018 Percentage Consolidated product sales $ 154.6 98.0 % $ 170.2 98.0 % Consolidated pack sales and associate fees (a) 2.3 1.5 % 2.5 1.5 % Consolidated other 0.8 0.5 % 0.9 0.5 % Total consolidated net sales $ 157.7 100.0 % $ 173.6 100.0 % Revenues by reporting segment are presented in Note 15 of our consolidated financial statements. We believe that the disaggregation of our revenues as reflected above, coupled with further discussion below, and the reporting segment in Note 15, depicts how the nature, amount, timing and uncertainty of our revenues and cash flows are affected by economic factors. Deferred Commissions The Company defers commissions on (i) the sales of products shipped but not received by customers by the end of the respective period and (ii) the loyalty program. Deferred commissions are incremental costs and are amortized to expense consistent with how the related revenue is recognized. Deferred commissions were $1.8 million and $2.4 million at December 31, 2019 and December 31, 2018 , respectively. The full $2.4 million balance at December 31, 2018 was amortized to commissions expense for the twelve months ended December 31, 2019 . Deferred Revenue The Company defers certain components of its revenue. Deferred revenue consisted of: (i) sales of products shipped but not received by the customers by the end of the respective period; (ii) revenue from the loyalty program; (iii) prepaid registration fees from customers planning to attend a future corporate-sponsored event; and (iv) prepaid annual associate fees. At December 31, 2019 and December 31, 2018 , the Company’s deferred revenue was $4.4 million and $5.3 million , respectively. The full $5.3 million balance at December 31, 2018 was recognized as revenue for the twelve months ended December 31, 2019 . The Company's customer loyalty program conveys a material right to the customer as it provides the promise to redeem loyalty points for the purchase of products, which is based on earning points through placing consecutive qualified automatic orders. The Company factors in breakage rates, which is the percentage of the loyalty points that are expected to be forfeited or expire, for purposes of revenue recognition. Breakage rates are estimated based on historical data and can be reasonably and objectively determined. The deferred revenue associated with the loyalty program at December 31, 2019 and December 31, 2018 was $3.1 million and $4.2 million , as follows: Loyalty program (in thousands) Loyalty deferred revenue as of January 1, 2018 $ 6,406 Loyalty points forfeited or expired (4,332 ) Loyalty points used (11,398 ) Loyalty points vested 12,469 Loyalty points unvested 1,086 Loyalty deferred revenue as of December 31, 2018 $ 4,231 Loyalty deferred revenue as of January 1, 2019 $ 4,231 Loyalty points forfeited or expired (4,348 ) Loyalty points used (9,127 ) Loyalty points vested 11,320 Loyalty points unvested 1,051 Loyalty deferred revenue as of December 31, 2019 $ 3,127 Sales Refund and Allowances The Company utilizes the expected value method to estimate the sales returns and allowance liability by taking the weighted average of the sales return rates over a rolling six-month period. The Company allocates the total amount recorded within the sales return and allowance liability as a reduction of the overall transaction price for the Company’s product sales. The Company deems the sales refund and allowance liability to be a variable consideration. Historically, our sales returns have not materially changed through the years, as the majority of our customers who return their merchandise do so within the first 90 days after the original sale. Sales returns have historically averaged 1.5% or less of our gross sales. For the years ended December 31, 2019 and December 31, 2018 , our sales return reserve consisted of the following (in thousands) : Sales reserve as of January 1, 2018 $ 117 Provision related to sales made in current period 1,198 Adjustment related to sales made in prior periods (10 ) Actual returns or credits related to current period (1,125 ) Actual returns or credits related to prior periods (104 ) Sales reserve as of December 31, 2018 $ 76 Sales reserve as of January 1, 2019 $ 76 Provision related to sales made in current period 1,037 Adjustment related to sales made in prior periods 31 Actual returns or credits related to current period (973 ) Actual returns or credits related to prior periods (103 ) Sales reserve as of December 31, 2019 $ 68 | |
Shipping and Handling Costs | Shipping and Handling Costs The Company records inbound freight as a component of inventory and cost of sales. The Company records freight and shipping fees collected from its customers as fulfillment costs. Freight and shipping fees are not deemed to be separate performance obligations as these activities occur before the customer receives the product. | |
Commission and Incentive Expenses | Commission and Incentive Expenses Associates earn commissions and incentives based on their direct and indirect commissionable net sales over each month of the fiscal year. The Company accrues commissions and incentives when earned by associates and pays commissions on product and pack sales on a monthly basis. | |
Advertising Expenses | Advertising Expenses The Company expenses advertising and promotions in selling and administrative expenses when incurred. Advertising and promotional expenses were approximately $3.5 million and $5.6 million for the years ended December 31, 2019 and 2018 , respectively. Educational and promotional items, called sales aids, are sold to associates to assist in their sales efforts and are included in inventories and charged to cost of sales when sold. | |
Research and Development Expenses | Research and Development Expenses The Company expenses research and development expenses as incurred. Research and development expenses related to new product development, enhancement of existing products, clinical studies and trials, Food and Drug Administration compliance studies, general supplies, internal salaries, third-party contractors, and consulting fees were approximately $1.1 million and $1.0 million , respectively, for the years ended December 31, 2019 and 2018 . Salaries and contract labor are included in selling and administrative expenses and all other research and development costs are included in other operating costs. | |
Stock-Based Compensation | Stock-Based Compensation The Company currently has one active stock-based compensation plan, the Mannatech, Incorporated 2017 Stock Incentive Plan, which was adopted by the Company’s Board of Directors (the "Board") on April 17, 2017 and was approved by its shareholders on June 8, 2017 , and subsequently amended by the Board at its February 2019 special meeting, which amendment was approved by the Company's shareholders on June 11, 2019 (as amended, the "2017 Plan"). The 2017 Plan supersedes the Mannatech, Incorporated 2008 Stock Incentive Plan (as amended the "2008 Plan"), which was set to expire on February 20, 2018 . The Board has reserved a maximum of 370,000 shares of our common stock that may be issued under the 2017 Plan (subject to adjustments for stock splits, stock dividends or other changes in corporate capitalization). The 2017 Plan provides for grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock and performance stock units to our employees, board members, and consultants. However, only employees of the Company and its corporate subsidiaries are eligible to receive incentive stock options. The exercise price per share for all stock options will be no less than the market value of a share of common stock on the date of grant. Any incentive stock option granted to an employee owning more than 10% of our common stock will have an exercise price of no less than 110% of our common stock’s market value on the grant date. The majority of stock options vest over two or three years, and generally are granted with a term of ten years, or five years in the case of an incentive option granted to an employee who owns more than 10% of our common stock. At date of grant, the Company determines the fair value of the stock option award and recognizes compensation expense over the requisite service period, or the vesting period of the award. The fair value of the stock option award is calculated using the Black-Scholes option-pricing model. The Company records stock-based compensation expense in selling and administrative expenses. | |
Software Development Costs | Software Development Costs The Company capitalizes qualifying internal payroll and external contracting and consulting costs related to the development of internal use software that are incurred during the application development stage, which includes design of the software configuration and interfaces, coding, installation, and testing. Costs incurred during the preliminary project along with post-implementation stages of internal use software are expensed as incurred. During the years ended December 31, 2019 and 2018 , the Company capitalized $0.2 million and $0.3 million , respectively, of qualifying internal payroll costs. The Company amortizes such costs over the estimated useful life of the software, which is three to five years once the software is placed in service. | |
Other Operating Costs | Other Operating Costs Other operating costs include travel, accounting/legal/consulting fees, credit card processing fees, banking fees, off-site storage fees, utilities, and other miscellaneous operating expenses. | |
Income Taxes | Income Taxes The Company determines the provision for income taxes using the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized as income in the period that includes the enactment date. The Company evaluates the probability of realizing the future benefits of its deferred tax assets and provides a valuation allowance for the portion of any deferred tax assets where the likelihood of realizing an income tax benefit in the future does not meet the more likely than not criterion for recognition. The Company recognizes the effect of income tax positions only if those positions are more likely than not of being sustained. Recognized income tax positions are measured at the largest amount that is greater than 50% likely of being recognized. Changes in recognition or measurement are reflected in the period in which the change in judgment occurs. The Company recognizes both interest and penalties related to uncertain tax positions as part of the income tax provision. | |
Comprehensive Income and Accumulated Other Comprehensive Income | Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company’s comprehensive income consists of the Company’s net income, foreign currency translation adjustments from its Japan, Republic of Korea, Taiwan, Denmark, Norway, Sweden, Colombia, Mexico and China operations, remeasurement of intercompany balances classified as equity from its Taiwan, Mexico and Cyprus operations, and changes in the pension obligation for its Japanese employees. | |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration Risk A significant portion of our revenue is derived from our Ambrotose Life ® , Advanced Ambrotose ® , TruHealth ™ , Manapol ® Powder, and GI-Pro products. A decline in sales value of such products could have a material adverse effect on our earnings, cash flows, and financial position. | |
Concentration Risk | Concentration Risk A significant portion of our revenue is derived from our Ambrotose Life ® , Advanced Ambrotose ® , TruHealth ™ , Manapol ® Powder, and GI-Pro products. A decline in sales value of such products could have a material adverse effect on our earnings, cash flows, and financial position. Revenue from these products were as follows for the years ended December 31, 2019 and 2018 ( in thousands, except percentages ): 2019 2018 Sales by % of total Sales by % of total Ambrotose Life ® $ 34,975 22.2 % $ 18,824 10.9 % Advanced Ambrotose ® 22,390 14.2 % 44,054 25.4 % TruHealth ™ 16,193 10.3 % 17,537 10.1 % Manapol ® Powder 8,793 5.6 % 8,636 5.0 % GI-Pro Balance 6,559 4.2 % 7,187 4.2 % Total $ 88,910 56.5 % $ 96,238 55.6 % Our business is not currently exposed to customer concentration risk given that no independent associate has ever accounted for more than 10% of our consolidated net sales. The Company maintains supply agreements with its suppliers and manufacturers. Some of the supply agreements contain exclusivity clauses and/or minimum annual purchase requirements. Failure to satisfy minimum purchase requirements could result in the loss of exclusivity. During the year ended December 31, 2019 , the Company purchased finished goods from four suppliers that accounted for 56.0% of the year's cost of sales. During the year ended December 31, 2018 , the Company purchased finished goods from two suppliers that accounted for 72.4% of the year's cost of sales. The Company maintains other supply and manufacturing agreements to minimize exposure to supplier risk. Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash and cash equivalents, investments, receivables, and restricted cash. The Company utilizes financial institutions that the Company considers to be of high credit quality and periodically evaluates the credit rating of such institutions and the allocation of their investments to minimize exposure to credit concentration risk. | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The fair value of the Company’s financial instruments, including cash and cash equivalents, restricted cash, time deposits, money market investments, receivables, payables, and accrued expenses, approximate their carrying values due to their relatively short maturities. See Note 2 to our Consolidated Financial Statements, Fair Value , for more information. | |
Recent Accounting Pronouncements | Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ( "ASU 2016-02" ) as of January 1, 2019 and applied it on a modified retrospective basis approach and elected to not adjust periods prior to January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the carry forward of the historical lease classification. This new standard requires companies to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The adoption increased assets, net of incentive, by $4.7 million and liabilities by $6.1 million on our consolidated balance sheets and did not have a significant impact on our consolidated statement of operations and statements of cash flows. These leases primarily relate to office buildings and office equipment. See Note 8, Leases for more information. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) ("ASU 2018-02") , which amended its standard on comprehensive income to provide an option for an entity to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the "TCJA") that was passed in December of 2017 from accumulated other comprehensive income directly to retained earnings. The stranded tax effects result from the remeasurement of deferred tax assets and liabilities which were originally recorded in comprehensive income but whose remeasurement is reflected in the income statement. This is a one-time amendment applicable only to the changes resulting from the TCJA. The Company adopted this standard on January 1, 2019. The overall financial impact of adopting this standard did not have a material effect on our consolidated financial statements. Accounting Pronouncements Issued But Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13") . This standard adds to U.S. GAAP an impairment model (known as the current expected credit loss ("CECL") model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the more timely recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. ASU 2019-10 deferred the effective date of ASU 2016-13 for all entities except SEC filers that are not smaller reporting companies. This standard will be effective for us as of January 1, 2023. While our review is ongoing, we believe ASU 2016-13 will only have applicability to our receivables from revenue transactions. Under ASC 606, revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that trade receivables are recorded, they become subject to the CECL model and estimates of expected credit losses on trade receivables over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. The Company is currently evaluating whether the new guidance will have an impact on our consolidated financial statements or existing internal controls. Other recently issued accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future financial statements. | |
Fair Value Measurement | Fair Value Measurements (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: • Level 1—Quoted unadjusted prices for identical instruments in active markets. • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. • Level 3—Model derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Revenue from External Customer [Line Items] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's consolidated balance sheets to the total amount presented in the consolidated statement of cash flows ( in thousands ): December 31, 2019 December 31, 2018 Cash and cash equivalents at beginning of period $ 21,845 $ 37,682 Current restricted cash at beginning of period 1,514 1,514 Long-term restricted cash at beginning of period 7,225 7,565 Cash, cash equivalents, and restricted cash at beginning of period $ 30,584 $ 46,761 Cash and cash equivalents at end of period $ 24,762 $ 21,845 Current restricted cash at end of period 943 1,514 Long-term restricted cash at end of period 5,295 7,225 Cash, cash equivalents, and restricted cash at end of period $ 31,000 $ 30,584 |
Revenue from External Customers by Products and Services [Table Text Block] | Our sales mix for the years ended December 31, was as follows (in millions, except percentages) : 2019 Percentage 2018 Percentage Consolidated product sales $ 154.6 98.0 % $ 170.2 98.0 % Consolidated pack sales and associate fees (a) 2.3 1.5 % 2.5 1.5 % Consolidated other 0.8 0.5 % 0.9 0.5 % Total consolidated net sales $ 157.7 100.0 % $ 173.6 100.0 % |
Estimated useful lives of fixed assets | The estimated useful lives of fixed assets are as follows: Estimated useful life Office furniture and equipment 5 to 7 years Computer hardware and software 3 to 5 years Automobiles 3 to 5 years Leasehold improvements (1) 2 to 10 years (1) The Company amortizes leasehold improvements over the shorter of the useful estimated life of the leased asset or the lease term. |
Loyalty deferred revenue | Loyalty program (in thousands) Loyalty deferred revenue as of January 1, 2018 $ 6,406 Loyalty points forfeited or expired (4,332 ) Loyalty points used (11,398 ) Loyalty points vested 12,469 Loyalty points unvested 1,086 Loyalty deferred revenue as of December 31, 2018 $ 4,231 Loyalty deferred revenue as of January 1, 2019 $ 4,231 Loyalty points forfeited or expired (4,348 ) Loyalty points used (9,127 ) Loyalty points vested 11,320 Loyalty points unvested 1,051 Loyalty deferred revenue as of December 31, 2019 $ 3,127 |
Sales return reserve | For the years ended December 31, 2019 and December 31, 2018 , our sales return reserve consisted of the following (in thousands) : Sales reserve as of January 1, 2018 $ 117 Provision related to sales made in current period 1,198 Adjustment related to sales made in prior periods (10 ) Actual returns or credits related to current period (1,125 ) Actual returns or credits related to prior periods (104 ) Sales reserve as of December 31, 2018 $ 76 Sales reserve as of January 1, 2019 $ 76 Provision related to sales made in current period 1,037 Adjustment related to sales made in prior periods 31 Actual returns or credits related to current period (973 ) Actual returns or credits related to prior periods (103 ) Sales reserve as of December 31, 2019 $ 68 |
Concentration risk | Revenue from these products were as follows for the years ended December 31, 2019 and 2018 ( in thousands, except percentages ): 2019 2018 Sales by % of total Sales by % of total Ambrotose Life ® $ 34,975 22.2 % $ 18,824 10.9 % Advanced Ambrotose ® 22,390 14.2 % 44,054 25.4 % TruHealth ™ 16,193 10.3 % 17,537 10.1 % Manapol ® Powder 8,793 5.6 % 8,636 5.0 % GI-Pro Balance 6,559 4.2 % 7,187 4.2 % Total $ 88,910 56.5 % $ 96,238 55.6 % |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair value, assets measured on recurring basis | The Company did not have any material financial liabilities that were required to be measured at fair value on a recurring basis at December 31, 2019 and 2018 . 2019 Level 1 Level 2 Level 3 Total Assets Money Market Funds – Fidelity, US $ 5,000 $ — $ — $ 5,000 Interest bearing deposits – various banks $ 8,962 $ — $ — $ 8,962 Total assets $ 13,962 $ — $ — $ 13,962 Amounts included in: Cash and cash equivalents $ 8,636 $ — $ — $ 8,636 Restricted cash 679 — — 679 Long-term restricted cash 4,647 — — 4,647 Total $ 13,962 $ — $ — $ 13,962 2018 Level 1 Level 2 Level 3 Total Assets Interest bearing deposits – various banks $ 11,391 $ — $ — $ 11,391 Total assets $ 11,391 $ — $ — $ 11,391 Amounts included in: Cash and cash equivalents $ 4,633 $ — $ — $ 4,633 Restricted cash 741 — — 741 Long-term restricted cash 6,017 — — 6,017 Total $ 11,391 $ — $ — $ 11,391 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories as of December 31, 2019 and 2018 , consisted of the following (in thousands) : 2019 2018 Raw materials $ 2,685 $ 803 Finished goods 8,341 12,542 Inventory reserves for obsolescence (874 ) (524 ) Total $ 10,152 $ 12,821 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of December 31, 2019 and 2018 , property and equipment consisted of the following (in thousands) : 2019 2018 Office furniture and equipment $ 2,638 $ 3,441 Computer hardware 3,879 4,239 Computer software 43,454 43,416 Automobiles 81 81 Leasehold improvements 4,230 4,812 ROU Assets- Financing 269 — 54,551 55,989 Less accumulated depreciation and amortization (49,290 ) (50,129 ) Property and equipment, net 5,261 5,860 Construction in progress 865 904 Total $ 6,126 $ 6,764 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Lease, Cost [Table Text Block] | We incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification Twelve Months Ended December 31, 2019 Operating lease cost Other operating cost $ 2,074 Finance lease cost Amortization of leased assets Depreciation and amortization 111 Interest on lease liabilities Interest expense 17 Total lease cost $ 2,202 | |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | For the twelve months ended December 31, 2019 , cash paid amounts included in the measurement of lease liabilities included (in thousands): Lease Payments Twelve Months Ended December 31, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 2,154 Financing cash flows from finance leases 222 | |
Schedule Of Maturities Of Operating And Finance Leases Liabilities [Table Text Block] | As of December 31, 2019 , future minimum lease payments on operating and financing leases were as follows (in thousands): December 31, 2019 Maturity of lease liabilities Operating Leases Financing Leases 2020 $ 1,884 $ 104 2021 1,592 90 2022 1,163 64 2023 605 36 Thereafter 2,752 10 Total future minimum lease payments $ 7,996 $ 304 Imputed interest (1,067 ) (41 ) Present value of minimum lease payments $ 6,929 $ 263 | Under ASC Topic 840 future minimum lease payments for non-cancelable leases existing at December 31, 2018 were as follows (in thousands): December 31, 2018 Maturity of lease liabilities Operating Leases Capital Leases 2019 $ 1,850 $ 81 2020 977 40 2021 583 28 2022 586 7 2023 586 — Thereafter 2,737 — Total of future minimum lease payments at December 31, 2018 $ 7,319 $ 156 Less: Amounts representing interest (effective interest rate 5.61%) — (9 ) Present Value of lease obligations as of December 31, 2018 $ 7,319 $ 147 |
LEASES Lease Costs (Tables)
LEASES Lease Costs (Tables) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Lease, Cost [Abstract] | |
Lease, Cost | $ 2 |
Lease, Cost [Table Text Block] | We incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification Twelve Months Ended December 31, 2019 Operating lease cost Other operating cost $ 2,074 Finance lease cost Amortization of leased assets Depreciation and amortization 111 Interest on lease liabilities Interest expense 17 Total lease cost $ 2,202 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Payables and Accruals [Abstract] | |
Accrued expenses | As of December 31, 2019 and 2018 , accrued expenses consisted of the following (in thousands) : 2019 2018 Accrued asset purchases $ 478 $ 261 Accrued compensation 2,311 1,912 Accrued royalties 49 59 Accrued sales and other taxes 432 344 Other accrued operating expenses 905 677 Customer deposits and sales returns 356 425 Accrued travel expenses related to corporate events 552 411 Accrued shipping and handling costs 338 755 Rent expense 39 442 Accrued legal and accounting fees 1,127 709 Current portion of operating lease liabilities 1,622 — $ 8,209 $ 5,995 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes | The components of the Company’s income before income taxes are attributable to the following jurisdictions for the years ended December 31 (in thousands) : 2019 2018 United States $ (5,038 ) $ (11,762 ) Foreign 10,774 12,251 Income before income taxes $ 5,736 $ 489 |
Income tax provision | The components of the Company’s income tax expense for the years ended December 31 (in thousands) : Current provision (benefit): 2019 2018 Federal $ 131 $ 13 State 64 (25 ) Foreign 1,188 3,220 1,383 3,208 Deferred provision (benefit): Federal — 1,074 State — 1,027 Foreign 1,064 (934 ) 1,064 1,167 $ 2,447 $ 4,375 |
Reconciliation of effective income tax rate and United States federal statutory income tax rate | A reconciliation of the Company’s effective income tax rate and the United States federal statutory income tax rate is summarized as follows, for the years ended December 31: 2019 2018 Federal statutory income taxes 21.0 % 21.0 % State income taxes, net of federal benefit 3.5 (40.3 ) Difference in foreign and United States tax on foreign operations (10.1 ) (75.6 ) Effect of changes in valuation allowance (7.3 ) 920.1 Effect of change in uncertain tax positions (net) — (0.5 ) Federal Sub-Part F Income from foreign operations 10.5 0.4 Global Intangible Low Taxed Income (GILTI) 23.5 43.2 Section 78 gross up 5.4 — Section 250 deduction (4.3 ) — Effect of changes in tax rates 0.5 (23.6 ) Foreign Exchange — (8.4 ) Prior year adjustments 4.1 (4.1 ) Foreign tax credits (10.9 ) — Meals and entertainment 0.7 11.9 Share Based Compensation 1.2 25.8 Withholding taxes 2.2 6.3 Other permanent items 1.9 14.4 Other 0.6 4.1 42.5 % 894.7 % |
Deferred tax assets and liabilities | Significant components of the Company’s deferred tax assets and liabilities consisted of the following at December 31 (in thousands) : Deferred tax assets: 2019 2018 Deferred Revenue $ 243 $ 277 Inventory 215 250 Accrued expenses 878 804 Disallowed Interest Expense — 123 Net operating loss (1) 7,570 9,293 Equity Compensation 509 584 Foreign tax credit carryover 4,180 3,621 Lease liability 1,674 — Other 486 876 Total deferred tax assets $ 15,755 $ 15,828 Valuation allowance (12,375 ) (12,793 ) Total deferred tax assets, net of valuation allowance $ 3,380 $ 3,035 Deferred tax liabilities: Prepaid expenses 147 262 Deferred commissions 253 255 Internally-developed software 265 326 Lease assets 1,659 — Fixed assets 178 267 Total deferred tax liabilities $ 2,502 $ 1,110 Total net deferred tax asset $ 878 $ 1,925 (1) The Company’s net operating loss will expire as follows (dollar amounts in thousands): Jurisdiction Gross NOL Tax Effected NOL Expiration Years Australia $ 393 $ 118 Indefinite Bermuda $ 42 $ — N/A Canada $ 8 $ 2 2026 China $ 117 $ 29 2024 Colombia $ 1,970 $ 630 Indefinite Gibraltar $ 147 $ — Indefinite Hong Kong $ 184 $ 30 Indefinite Japan $ 338 $ 117 Indefinite Mexico $ 10,950 $ 3,285 2020-2029 Norway $ 281 $ 62 Indefinite Russia (2) $ 50 $ 10 Indefinite Singapore $ 138 $ 23 Indefinite South Africa $ 650 $ 182 Indefinite Sweden $ 463 $ 99 Indefinite Switzerland (3) $ 6,591 $ 606 2020-2025 Taiwan $ 5,133 $ 1,027 2020-2029 Ukraine (4) $ 703 $ 127 Indefinite United States - Federal $ 1,553 $ 326 Indefinite United Kingdom $ 431 $ 72 Indefinite (2) On August 1, 2016, the Company established a legal entity in Russia. (3) On July 1, 2019, the Company suspended operations in Switzerland, but maintains the legal entity. (4) On March 21, 2014, the Company suspended operations in the Ukraine, but maintains the legal entity. |
Net operating loss by Jurisdiction | The Company’s net operating loss will expire as follows (dollar amounts in thousands): Jurisdiction Gross NOL Tax Effected NOL Expiration Years Australia $ 393 $ 118 Indefinite Bermuda $ 42 $ — N/A Canada $ 8 $ 2 2026 China $ 117 $ 29 2024 Colombia $ 1,970 $ 630 Indefinite Gibraltar $ 147 $ — Indefinite Hong Kong $ 184 $ 30 Indefinite Japan $ 338 $ 117 Indefinite Mexico $ 10,950 $ 3,285 2020-2029 Norway $ 281 $ 62 Indefinite Russia (2) $ 50 $ 10 Indefinite Singapore $ 138 $ 23 Indefinite South Africa $ 650 $ 182 Indefinite Sweden $ 463 $ 99 Indefinite Switzerland (3) $ 6,591 $ 606 2020-2025 Taiwan $ 5,133 $ 1,027 2020-2029 Ukraine (4) $ 703 $ 127 Indefinite United States - Federal $ 1,553 $ 326 Indefinite United Kingdom $ 431 $ 72 Indefinite |
Summary of valuation allowance | Country 2019 2018 Australia $ 0.2 $ 0.3 China 0.3 0.3 Colombia 0.6 0.6 Hong Kong — 0.1 Mexico 3.3 3.1 Norway 0.1 0.1 South Africa 0.2 0.2 Sweden — 0.1 Switzerland 0.5 — Taiwan 1.0 0.9 Ukraine 0.1 0.1 United Kingdom 0.1 0.1 United States 6.0 6.9 Other Jurisdictions — — Total $ 12.4 $ 12.8 |
Deferred tax assets (liabilities) classified in Consolidated Balance Sheets | 2019 2018 Deferred tax assets $ 881 $ 1,928 Deferred tax liabilities (3 ) (3 ) Net deferred tax assets $ 878 $ 1,925 |
Unrecognized tax benefits | Topic 740 prescribes a comprehensive model for how a company should recognize, measure, present, and disclose in its financial statements, uncertain tax positions that it has taken or expects to take on a tax return. Topic 740 requires that a company recognize in its financial statements the impact of tax positions that meet a “more likely than not” threshold, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position should be measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate settlement. As of December 31, 2019 , the Company recorded $0.2 million in other long-term liabilities related to uncertain income tax positions and income tax reserves associated with various audits. At December 31, 2019 , the Company had unrecognized tax benefits of $0.2 million that, if recognized, would impact the effective tax rate. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows, for the years ended December 31, 2019 and 2018 (in thousands): 2019 2018 Balance as of January 1 $ 79 $ 79 Additions for tax positions related to the current year — — Additions for tax positions of prior years — — Reductions of tax positions of prior years — — Settlements — — Balance as of December 31 $ 79 $ 79 |
Tax years subject to examinations | The Company files income tax returns in the United States federal jurisdiction and various state and foreign jurisdictions. As of December 31, 2019, the tax years that remained subject to examination by a major tax jurisdiction for the Company’s most significant subsidiaries were as follows: Jurisdiction Open Years Australia 2012-2018 Japan 2015-2018 Republic of Korea 2015-2018 Switzerland 2015-2018 United States 2016-2018 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plan's projected benefit obligation and valuation of plan assets | The Benefit Plan’s projected benefit obligation and valuation of plan assets were as follows for the years ended December 31 (in thousands) : Projected benefit obligation: 2019 2018 Balance, beginning of year $ 388 $ 367 Service cost 56 61 Interest cost 1 1 Liability (gain) loss (2 ) (18 ) Benefits paid to participants (128 ) (31 ) Foreign currency 4 8 Balance, end of year $ 319 $ 388 Plan assets: 2019 2018 Fair value, beginning of year $ — $ — Company contributions 128 31 Benefits paid to participants (128 ) (31 ) Fair value, end of year $ — $ — Funded status of the Benefit Plan as of December 31 (in thousands) : 2019 2018 Benefit obligation $ (319 ) $ (388 ) Fair value of plan assets — — Excess of benefit obligation over fair value of plan assets $ (319 ) $ (388 ) Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands) : 2019 2018 Accrued benefit liability $ (319 ) $ (388 ) Transition obligation and unrealized gain (234 ) (273 ) Net amount recognized in the consolidated balance sheets $ (553 ) $ (661 ) Years Ended December 31, Other changes recognized in comprehensive income (in thousands): 2019 2018 Net periodic cost $ 14 $ 21 Current year actuarial (gain) loss (2 ) (18 ) Amortization of transition obligation (4 ) (4 ) Total recognized in other comprehensive income (loss) (6 ) (22 ) Total recognized in comprehensive income $ 8 $ (1 ) As of December 31, Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain (in thousands) : 2019 2018 Transition obligation $ 58 $ 40 Prior service cost 174 215 Net actuarial gain (loss) 2 18 Total recognized in accumulated other comprehensive gain $ 234 $ 273 2018 estimated amounts of amortized transition obligation (in thousands): 2018 Transition obligation $ (4 ) As of December 31, Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands): 2019 2018 Projected benefit obligation $ 319 $ 388 Accumulated benefit obligation 319 388 Fair value of plan assets — — |
Weighted-average assumptions to determine the benefit obligation and net cost | The weighted-average assumptions to determine the benefit obligation and net cost are as follows: 2019 2018 Discount rate 0.20 % 0.30 % Rate of increase in compensation levels — — |
Pension expense for Benefit Plan included in selling, general and administrative expenses | Service Cost for the Benefit Plan is included within selling, general and administrative expenses and all other items noted in the table below (Interest Cost, Amortization of Transition Obligation, and Prior Service Cost) are included within other income and expense. Pension costs, which are included within Consolidated Statement of Operations are detailed below for the years ended December 31 (in thousands) : 2019 2018 Service cost $ 56 $ 61 Interest cost 1 1 Amortization of transition obligation 4 4 Gain (loss) (4 ) (3 ) Prior service cost (43 ) (42 ) Total pension expense $ 14 $ 21 |
Benefits expected to be paid by the Benefit Plan | As of December 31, 2019 , benefits expected to be paid by the Benefit Plan for the next ten years is approximately as follows (in thousands) : 2020 $ 39 2021 32 2022 62 2023 24 2024 119 Next five years 118 Total expected benefits to be paid $ 394 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Changes in stock options outstanding | A summary of changes in stock options outstanding during the year ended December 31, 2019 , is as follows: 2019 Number of Options (in thousands) Weighted average exercise price Weighted average remaining contractual life (in years) Aggregate intrinsic value (in thousands) Outstanding at beginning of year 421 $ 16.68 Granted 15 16.68 Exercised (2 ) 5.72 Expired (28 ) 23.88 Forfeit (25 ) 16.37 Outstanding at end of year 381 $ 16.24 4.97 $ — Options exercisable at year end 326 $ 16.25 5.48 $ — |
Assumptions used to calculate compensation expense and fair value of stock options granted | The following assumptions were used to calculate the compensation expense and the calculated fair value of stock options granted each year: 2019 2018 Dividend yield: 7.5 % 2.4-2.9 % Risk-free interest rate: 1.9 % 2.5-2.8 % Expected market price volatility: 47.6 % 55.6-56.4 % Average expected life of stock options: 4.5 years 4.5 years |
Share-based compensation expense | The Company recorded the following amounts related to the expense of the fair values of options and restricted share awards during the years ended December 31, 2019 and 2018 (in thousands) : 2019 2018 Selling, general and administrative expenses and income from operations before income taxes $ 456 $ 888 Benefit for income taxes (23 ) (50 ) Effect on net income $ 433 $ 838 |
Unrecognized compensation cost | As of December 31, 2019 , the Company had approximately $0.2 million of total unrecognized compensation expense related to stock options and restricted share awards currently outstanding, to be recognized in future years, ending December 31, as follows (in thousands): Total gross unrecognized compensation expense Total tax benefit associated with unrecognized compensation expense Total net unrecognized compensation expense 2020 $ 136 $ 11 $ 125 2021 15 3 12 $ 151 $ 14 $ 137 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future minimum rental commitments for non-cancelable operating leases | Approximate future minimum rental commitments for non-cancelable operating leases (in thousands) are as follows: Years ending December 31, 2020 $ 2,131 2021 1,592 2022 1,145 2023 606 2024 613 Thereafter 2,139 $ 8,226 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income (loss) | The after-tax components of accumulated other comprehensive income, are as follows (in thousands) : Foreign Currency Translation Pension Postretirement Benefit Obligation Accumulated Other Comprehensive Income, Net Balance as of December 31, 2017 $ 5,703 $ 281 $ 5,984 Current-period change before reclassifications (1,661 ) — (1,661 ) Amounts reclassified from accumulated other comprehensive income (loss) — 4 4 Income tax provision — 10 10 Balance as of December 31, 2018 $ 4,042 $ 295 $ 4,337 Current-period change before reclassifications (607 ) — (607 ) Amounts reclassified from accumulated other comprehensive income (loss) — 41 41 Income tax provision — (14 ) (14 ) Balance as of December 31, 2019 $ 3,435 $ 322 $ 3,757 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Net sales shipped to customers by geographic region | Consolidated net sales shipped to customers in these regions, along with pack and product information for the years ended December 31, are as follows (in millions, except percentages) : Region 2019 2018 Americas $ 48.0 30.4 % $ 58.7 33.8 % Asia/Pacific 96.0 60.9 % 101.7 58.6 % EMEA 13.7 8.7 % 13.2 7.6 % Total $ 157.7 100.0 % $ 173.6 100.0 % |
Product and pack information | 2019 2018 Consolidated product sales $ 154.6 $ 170.2 Consolidated pack sales and associate fees 2.3 2.5 Consolidated other 0.8 0.9 Total $ 157.7 $ 173.6 |
Long-lived assets, by geographic region | Long-lived assets by region, which include property and equipment and construction in progress for the Company and its subsidiaries, as of December 31, reside in the following regions, as follows (in millions) : Region 2019 2018 Americas $ 5.1 $ 5.5 Asia/Pacific 1.0 1.3 EMEA — — Total $ 6.1 $ 6.8 |
Inventory balances, by country | Inventory balances by region, which consist of raw materials and finished goods, including promotional materials, and offset by obsolete inventories, for the Company and its subsidiaries, reside in the following regions as of December 31, as follows (in millions) : Region 2019 2018 Americas $ 5.4 $ 4.5 Asia/Pacific 3.8 6.3 EMEA 1.0 2.0 Total $ 10.2 $ 12.8 |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Company Organization (Details) | 12 Months Ended |
Dec. 31, 2019region | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of regions in which company sells products | 3 |
ORGANIZATION AND SUMMARY OF S_5
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Foreign Currency Translation (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Foreign current transaction losses | $ 0.7 | $ 0.3 |
ORGANIZATION AND SUMMARY OF S_6
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 24,762 | $ 21,845 | $ 37,682 |
Credit card receivables | 700 | 1,600 | |
Cash and cash equivalents held in bank accounts in foreign countries | 18,200 | 19,900 | |
Restricted Cash, Current | 943 | 1,514 | 1,514 |
Restricted Cash, Noncurrent | 5,295 | 7,225 | 7,565 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 31,000 | $ 30,584 | $ 46,761 |
South Korea | |||
Cash and Cash Equivalents [Line Items] | |||
Net assets | $ 19,200 |
ORGANIZATION AND SUMMARY OF S_7
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Restricted cash | $ 6.2 | $ 8.7 |
ORGANIZATION AND SUMMARY OF S_8
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Allowance for doubtful accounts | $ 0.7 | $ 0.8 |
ORGANIZATION AND SUMMARY OF S_9
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details) | 12 Months Ended |
Dec. 31, 2018 | |
Office furniture and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Office furniture and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 7 years |
Computer hardware and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Computer hardware and software | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Automobiles | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 3 years |
Automobiles | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 5 years |
Leasehold improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 2 years |
Leasehold improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful lives of assets | 10 years |
ORGANIZATION AND SUMMARY OF _10
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Other assets | $ 9,592 | $ 3,894 | |
Deposits for building leases | 2,200 | 2,000 | |
Deposit assets | 1,600 | $ 1,700 | |
Indefinite lived intangible assets | 200 | $ 200 | |
Operating Lease, Right-of-Use Asset | $ 5,600 |
ORGANIZATION AND SUMMARY OF _11
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Notes payable outstanding | $ 1,100 | $ 1,600 |
Current notes payable | 739 | 702 |
Notes payable, long-term portion | $ 363 | $ 883 |
ORGANIZATION AND SUMMARY OF _12
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Other Long-Term Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Other long-term liabilities | $ 6,214 | $ 2,302 | |
Payments for Tenant Improvements | 1,300 | ||
Uncertain income tax positions recorded in noncurrent liabilities | 200 | $ 200 | |
Accrued lease restoration costs | 300 | 400 | |
Severance Costs | 400 | 300 | |
Accrued benefit liability | 319 | 388 | |
Operating Lease, Liability, Noncurrent | 5,300 | ||
Foreign Plan [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Accrued benefit liability | $ 300 | $ 400 |
ORGANIZATION AND SUMMARY OF _13
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Revenue Recognition and Deferred Commissions (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Revenue from External Customer [Line Items] | |||
Non Cash Operating Lease Right Of Use Assets And Lease Liabilities | $ 4,638 | $ 0 | |
Sales Revenue Goods Percentage | 100.00% | 100.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 157,728 | $ 173,558 | |
Contract with Customer, Liability, Revenue Recognized | 5,300 | ||
Deferred revenue | 4,400 | 5,300 | |
Deferred revenue associated with customer loyalty programs | 3,127 | 4,231 | $ 6,406 |
Deferred commissions | $ 1,758 | $ 2,449 | |
Customer returns, days after original sale date | 90 days | ||
Percentage of sale returns | 1.50% | ||
Consolidated product sales [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue Goods Percentage | 98.00% | 0.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 154,600 | $ 170,200 | |
Consolidated pack sales [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue Goods Percentage | 0.00% | 0.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,300 | $ 2,500 | |
Consolidated other, including freight [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue Goods Percentage | 0.00% | 0.00% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 800 | $ 900 |
ORGANIZATION AND SUMMARY OF _14
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loyalty Program Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Movement in Deferred Revenue [Roll Forward] | ||
Loyalty program deferred revenue, beginning balance | $ 4,231 | $ 6,406 |
Loyalty points forfeited or expired | (4,348) | (4,332) |
Loyalty points used | (9,127) | (11,398) |
Loyalty points vested | 11,320 | 12,469 |
Loyalty points unvested | 1,051 | 1,086 |
Loyalty program deferred revenue, ending balance | $ 3,127 | $ 4,231 |
ORGANIZATION AND SUMMARY OF _15
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales Reserves (Details) - Reserve for sales returns - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Year | $ 76 | $ 117 |
Provision related to sales made in current period | 1,037 | 1,198 |
Adjustment related to sales made in prior periods | 31 | (10) |
Actual returns or credits related to current period | (973) | (1,125) |
Actual returns or credits related to prior periods | (103) | (104) |
Balance at End of Year | $ 68 | $ 76 |
ORGANIZATION AND SUMMARY OF _16
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advertising expense | $ 3.5 | $ 5.6 |
ORGANIZATION AND SUMMARY OF _17
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Research and Development Expenses (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Research and development expenses | $ 1.1 | $ 1 |
ORGANIZATION AND SUMMARY OF _18
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-based Compensation (Details) | 12 Months Ended |
Dec. 31, 2019plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of active stock based compensation plan | 1 |
Percentages of stock option ownership considered for higher exercise price of option | 10.00% |
Option exercise price as percentages of closing exercise price | 110.00% |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Option exercise price as percentages of closing exercise price | 110.00% |
Vesting period of stock options | 3 years |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentages of stock option ownership considered for higher exercise price of option | 10.00% |
Vesting period of stock options | 2 years |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period of stock option plan | 10 years |
Incentive Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expiration period of stock option plan | 5 years |
ORGANIZATION AND SUMMARY OF _19
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Software Development Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Costs Incurred, Development Costs | $ 0.2 | $ 0.3 |
Minimum | Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life (in years) | 3 years | |
Maximum | Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Estimated useful life (in years) | 5 years |
ORGANIZATION AND SUMMARY OF _20
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Concentration Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Sales by product | $ 88,910 | $ 96,238 |
% of total net sales | 56.50% | 55.60% |
Abrotose Life [Member] [Member] | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 34,975 | $ 18,824 |
% of total net sales | 22.20% | 10.90% |
Advanced Ambrotose [Member] | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 22,390 | $ 44,054 |
% of total net sales | 14.20% | 25.40% |
Advanced Ambrotose® | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 16,193 | $ 17,537 |
% of total net sales | 10.30% | 10.10% |
Manapol® Powder | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 8,793 | $ 8,636 |
% of total net sales | 5.60% | 5.00% |
GI-Pro Balance | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 6,559 | $ 7,187 |
% of total net sales | 4.20% | 4.20% |
ORGANIZATION AND SUMMARY OF _21
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses and other current assets | $ 2,239 | $ 3,361 |
Other Prepaid Expense, Current | 800 | 1,000 |
Deposits Assets | 700 | $ 1,800 |
Prepaid Inventory | $ 700 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 6,200 | $ 8,700 |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Funds – Fidelity, US | 5,000 | |
Interest bearing deposits – various banks | 8,962 | 11,391 |
Cash and cash equivalents | 8,636 | 4,633 |
Restricted cash | 679 | 741 |
Long-term restricted cash | 4,647 | 6,017 |
Total | 13,962 | 11,391 |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Funds – Fidelity, US | 5,000 | |
Interest bearing deposits – various banks | 8,962 | 11,391 |
Cash and cash equivalents | 8,636 | 4,633 |
Restricted cash | 679 | 741 |
Long-term restricted cash | 4,647 | 6,017 |
Total | 13,962 | 11,391 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Funds – Fidelity, US | 0 | |
Interest bearing deposits – various banks | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term restricted cash | 0 | 0 |
Total | 0 | 0 |
Recurring Basis | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Money Market Funds – Fidelity, US | 0 | |
Interest bearing deposits – various banks | 0 | 0 |
Cash and cash equivalents | 0 | 0 |
Restricted cash | 0 | 0 |
Long-term restricted cash | 0 | 0 |
Total | $ 0 | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 2,685 | $ 803 |
Finished goods | 8,341 | 12,542 |
Inventory reserves for obsolescence | (874) | (524) |
Total | $ 10,152 | $ 12,821 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | $ 54,551 | $ 55,989 |
Less accumulated depreciation and amortization | (49,290) | (50,129) |
Property and equipment, net | 5,261 | 5,860 |
Construction in progress | 865 | 904 |
Total | 6,100 | 6,764 |
Office furniture and equipment | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 2,638 | 3,441 |
Computer hardware | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 3,879 | 4,239 |
Computer software | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 43,454 | 43,416 |
Automobiles | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 81 | 81 |
Leasehold improvements | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 4,230 | 4,812 |
Assets Held under Capital Leases [Member] | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | $ 269 | $ 0 |
LEASES (Details)
LEASES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | $ 1,000 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (1,000) | $ 0 |
Capital Leases, Future Minimum Payments, Interest Included in Payments | (9) | |
Finance Lease, Liability, Undiscounted Excess Amount | 0 | |
Operating Lease, Liability | 7,000 | 7,000 |
Finance Lease, Liability | 0 | |
Operating Leases, Future Minimum Payments, Due in Two Years | 1,592,000 | 977 |
Capital Leases, Future Minimum Payments Due in Two Years | 40 | |
Operating Leases, Future Minimum Payments, Due in Three Years | 1,145,000 | 583 |
Capital Leases, Future Minimum Payments Due in Three Years | 28 | |
Operating Leases, Future Minimum Payments, Due in Four Years | 606,000 | 586 |
Capital Leases, Future Minimum Payments Due in Four Years | 7 | |
Operating Leases, Future Minimum Payments, Due in Five Years | 613,000 | 586 |
Capital Leases, Future Minimum Payments Due in Five Years | 0 | |
Thereafter | 2,139,000 | 2,737 |
Capital Leases, Future Minimum Payments Due Thereafter | 0 | |
Operating Leases, Future Minimum Payments Due | 8,226,000 | 7,319 |
Capital Leases, Future Minimum Payments Due | 156 | |
Finance and Operating Lease Liabilities | 7,000 | |
Capital Leases, Future Minimum Payments, Present Value of Net Minimum Payments | 147 | |
Finance Lease, Liability, Payments, Due Year Three | 0 | |
Finance Lease, Liability, Payments, Due Year Four | 0 | |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 1,000 | |
Finance Lease, Liability, Payments, Due Year Five | 0 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 3,000 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Lessee, Operating Lease, Liability, Payments, Due | 8,000 | |
Finance Lease, Liability, Payment, Due | $ 0 | |
Operating Lease, Weighted Average Remaining Lease Term | 6 years 1 month | |
Operating Leases, Future Minimum Payments Due, Next Twelve Months | $ 2,131,000 | 1,850 |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 1,884 | |
Capital Leases, Future Minimum Payments Due, Next Twelve Months | 81 | |
Operating Lease, Payments | 2,000 | |
Finance Lease, Interest Payment on Liability | $ 0 | |
Operating Lease, Weighted Average Discount Rate, Percent | 4.00% | |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 2 months | |
Finance Lease, Weighted Average Discount Rate, Percent | 5.00% | |
Finance Lease, Liability, Payments, Due Year Two | $ 0 | |
Lessee, Operating Lease, Liability, Payments, Due Year Two | 1,592 | |
Operating Lease, Liability, Current | 1,622,000 | $ 0 |
Finance and Operating Lease Assets | 6,000 | |
Operating Lease, Right-of-Use Asset | 5,600,000 | |
Operating Lease, Liability, Noncurrent | 5,300,000 | |
Interest Expense [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Interest Expense | 0 | |
Depreciation and amortization expense [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset, Amortization | 0 | |
Other Operating Income (Expense) [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Cost | 2,000 | |
Other Assets [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 6,000 | |
Property and Equipment, net [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset | 0 | |
Accrued Expenses [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current | 2,000 | |
Current portion of capital leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Current | 87 | |
Other longterm liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Noncurrent | 5,307 | |
Finance Leases, excluding current portion [Member] [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Noncurrent | $ 0 |
CAPITAL LEASE OBLIGATIONS (Deta
CAPITAL LEASE OBLIGATIONS (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of future minimum lease payments [Abstract] | ||
Capital Leases, Future Minimum Payments Due, Next Twelve Months | $ 81 | |
Capital Leases, Future Minimum Payments Due in Two Years | 40 | |
Capital Leases, Future Minimum Payments Due in Three Years | 28 | |
Capital Leases, Future Minimum Payments Due in Four Years | 7 | |
Capital Leases, Future Minimum Payments Due in Five Years | 0 | |
Total future minimum lease payments | 156 | |
Less: Amounts representing interest (effective interest rate 5.61%) | 9 | |
Present value of minimum lease payments | 147 | |
Current portion of capital lease obligations | $ 87,000 | 75,000 |
Long-term portion of capital lease obligations | $ 176,000 | $ 72,000 |
Effective interest rate | 5.61% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of accrued expenses [Abstract] | ||
Accrued asset purchases | $ 478 | $ 261 |
Accrued compensation | 2,311 | 1,912 |
Accrued royalties | 49 | 59 |
Accrued sales and other taxes | 432 | 344 |
Other accrued operating expenses | 905 | 677 |
Customer deposits and sales returns | 356 | 425 |
Accrued travel expenses related to corporate events | 552 | 411 |
Accrued shipping and handling costs | 338 | 755 |
Rent expense | 39 | 442 |
Accrued legal and accounting fees | 1,127 | 709 |
Operating Lease, Liability, Current | 1,622 | 0 |
Total | $ 8,209 | $ 5,995 |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Taxes by Jurisdiction and Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of Company's loss before income taxes [Abstract] | ||
United States | $ (5,038) | $ (11,762) |
Foreign | 10,774 | 12,251 |
Income before income taxes | 5,736 | 489 |
Current provision (benefit): | ||
Federal | 131 | 13 |
State | 64 | (25) |
Foreign | 1,188 | 3,220 |
Total | 1,383 | 3,208 |
Deferred provision (benefit): | ||
Federal | 0 | 1,074 |
State | 0 | 1,027 |
Foreign | 1,064 | (934) |
Total | 1,064 | 1,167 |
Total | $ 2,447 | $ 4,375 |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconcilliation (Details) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Reconciliation of effective income tax rate and United States federal statutory income tax rate [Abstract] | ||
Federal statutory income taxes | 21.00% | 21.00% |
State income taxes, net of federal benefit | 3.50% | (40.30%) |
Difference in foreign and United States tax on foreign operations | (10.10%) | (75.60%) |
Effect of changes in valuation allowance | (7.30%) | 920.10% |
Effect of change in uncertain tax positions (net) | 0.00% | (0.50%) |
Federal Sub-Part F Income from foreign operations | 10.50% | 0.40% |
Effective Income Tax Rate Reconciliation, GILTI percent | 23.50% | 43.20% |
Effective Income Tax Rate Reconciliation, Section 78 Gross Up, Percent | 5.40% | 0.00% |
Effective Income Tax Rate Reconciliation, Section 250 Deduction, Percent | (4.30%) | 0.00% |
Effect of changes in tax rates | 0.50% | (23.60%) |
Foreign Exchange | 0.00% | (8.40%) |
Prior year adjustments | 4.10% | (4.10%) |
Foreign tax credits | 10.90% | (0.00%) |
Meals and entertainment | 0.70% | 11.90% |
Effective Income Tax Rate Reconciliation, Stock Options, Percent | 1.20% | 25.80% |
Effective Income Tax Rate Reconciliation,Withholding taxes, Percent | 2.20% | 6.30% |
Withholding taxes | (1.90%) | (14.40%) |
Other | 0.60% | 4.10% |
Total | 42.50% | 894.70% |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Deferred Revenue | $ 243 | $ 277 |
Inventory | 215 | 250 |
Accrued expenses | 878 | 804 |
Disallowed Interest Expense | 0 | 123 |
Net operating loss (1) | 7,570 | 9,293 |
Net operating loss | 509 | 584 |
Foreign tax credit carryover | 4,180 | 3,621 |
Deferred Tax Assets, Charitable Contribution Carryforwards | 100 | |
Lease liability | 1,674 | 0 |
Other | 486 | 876 |
Total deferred tax assets | 15,755 | 15,828 |
Valuation allowance | (12,375) | (12,793) |
Total deferred tax assets, net of valuation allowance | 3,380 | 3,035 |
Deferred tax liabilities: | ||
Prepaid expenses | 147 | 262 |
Deferred commissions | 253 | 255 |
Internally-developed software | 265 | 326 |
Deferred Tax Liabilities, Leasing Arrangements | 1,659 | 0 |
Lease assets | 178 | 267 |
Deferred Tax Liabilities, Gross | 2,502 | 1,110 |
Net deferred tax assets | 878 | 1,925 |
AUSTRALIA | ||
Deferred tax assets: | ||
Valuation allowance | (200) | (300) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 393 | |
Tax Effected NOL | 118 | |
BERMUDA | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 42 | |
Tax Effected NOL | 0 | |
Canada | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 8 | |
Tax Effected NOL | 2 | |
CHINA | ||
Deferred tax assets: | ||
Valuation allowance | (300) | (300) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 117 | |
Tax Effected NOL | 29 | |
China | ||
Deferred tax assets: | ||
Valuation allowance | (600) | (600) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 1,970 | |
Tax Effected NOL | 630 | |
Gibraltar | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 147 | |
Tax Effected NOL | 0 | |
Hong Kong | ||
Deferred tax assets: | ||
Valuation allowance | 0 | (100) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 184 | |
Tax Effected NOL | 30 | |
Japan | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 338 | |
Tax Effected NOL | 117 | |
Mexico | ||
Deferred tax assets: | ||
Valuation allowance | (3,300) | (3,100) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 10,950 | |
Tax Effected NOL | 3,285 | |
Norway | ||
Deferred tax assets: | ||
Valuation allowance | (100) | (100) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 281 | |
Tax Effected NOL | 62 | |
Russia | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 50 | |
Tax Effected NOL | 10 | |
Singapore | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 138 | |
Tax Effected NOL | 23 | |
Norway | ||
Deferred tax assets: | ||
Valuation allowance | (200) | (200) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 650 | |
Tax Effected NOL | 182 | |
Sweden | ||
Deferred tax assets: | ||
Valuation allowance | 0 | (100) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 463 | |
Tax Effected NOL | 99 | |
Switzerland(3) | ||
Deferred tax assets: | ||
Valuation allowance | (500) | 0 |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 6,591 | |
Tax Effected NOL | 606 | |
Taiwan | ||
Deferred tax assets: | ||
Valuation allowance | (1,000) | (900) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 5,133 | |
Tax Effected NOL | 1,027 | |
Taiwan | ||
Deferred tax assets: | ||
Valuation allowance | (100) | (100) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 703 | |
Tax Effected NOL | 127 | |
United Kingdom | ||
Deferred tax assets: | ||
Valuation allowance | (6,000) | (6,900) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 1,553 | |
Tax Effected NOL | 326 | |
United States - Federal | ||
Deferred tax assets: | ||
Valuation allowance | (100) | $ (100) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 431 | |
Tax Effected NOL | $ 72 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Tax Credit Carryforward [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | 42.50% | 894.70% |
Valuation allowance | $ 12,375 | $ 12,793 |
Unrecognized tax benefits | $ 200 |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance(Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 12,375 | $ 12,793 |
AUSTRALIA | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 200 | 300 |
CHINA | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 300 | 300 |
China | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 600 | 600 |
Hong Kong | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 0 | 100 |
Mexico | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 3,300 | 3,100 |
Norway | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 100 | 100 |
Norway | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 200 | 200 |
Sweden | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 0 | 100 |
Switzerland(3) | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 500 | 0 |
Taiwan | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 1,000 | 900 |
Taiwan | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 100 | 100 |
United States - Federal | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 100 | 100 |
United Kingdom | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 6,000 | 6,900 |
United States | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 0 | $ 0 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Income Tax Disclosure [Abstract] | ||
Deferred tax assets, net | $ 881 | $ 1,928 |
Deferred tax liabilities | (3) | (3) |
Net deferred tax assets | $ 878 | $ 1,925 |
INCOME TAXES - Unrecognized Tax
INCOME TAXES - Unrecognized Tax Benefits (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Income Tax Disclosure [Abstract] | |
Income Tax Examination, Estimate of Possible Loss | $ 0.2 |
Reconciliation of beginning and ending amount of unrecognized tax benefits [Roll Forward] | |
Balance as of December 31 | $ 0.2 |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Related Party Transaction [Line Items] | |||
Commissions and incentives | $ 64,254 | $ 73,514 | |
Directors, Officers and Family Members on M5M Foundation Board | |||
Related Party Transaction [Line Items] | |||
Cash donations | 700 | 800 | |
Son of the Chairman of the Board | |||
Related Party Transaction [Line Items] | |||
Officers' compensation | 321 | ||
Member of the Board of Directors and Family | |||
Related Party Transaction [Line Items] | |||
Payment of employment related commissions and incentives | 2,000 | 2,200 | |
Member of the Board of Directors | |||
Related Party Transaction [Line Items] | |||
Payment of employment related commissions and incentives | 200 | 200 | |
Son of member of Board of Directors | |||
Related Party Transaction [Line Items] | |||
Payment of employment related commissions and incentives | 1,800 | ||
Professional fees | 100 | ||
Family Members [Member] | |||
Related Party Transaction [Line Items] | |||
Payment of employment related commissions and incentives | 2,000 | ||
Daughter and Daughter-in-law of Member of Board of Directors | |||
Related Party Transaction [Line Items] | |||
Payment of employment related commissions and incentives | $ 100 | ||
Immediate Family Member Of Management Or Principal Owner Three | |||
Related Party Transaction [Line Items] | |||
Payment of employment related commissions and incentives | 100 | 200 | |
Commissions and incentives | $ 100 | $ 100 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Service period, minimum | 3 months | |
Employees eligible age under plan, minimum | 21 years | |
Maximum annual contribution per employee | 100.00% | |
Vesting period of employer's matching contributions | 5 years | |
Contributions by employer | $ 300 | $ 300 |
Expected employer's contributions in 2018 | $ 39 |
EMPLOYEE BENEFIT PLANS - Projec
EMPLOYEE BENEFIT PLANS - Projected Benefit Obligation and Fair Value of Plan Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Projected benefit obligation: | ||
Balance, beginning of year | $ 388 | $ 367 |
Service cost | 56 | 61 |
Interest cost | 1 | 1 |
Liability (gain) loss | (2) | (18) |
Benefits paid to participants | (128) | (31) |
Foreign currency | 4 | 8 |
Balance, end of year | 319 | 388 |
Plan assets: | ||
Fair value, beginning of year | 0 | 0 |
Company contributions | 128 | 31 |
Benefits paid to participants | (128) | (31) |
Fair value, end of year | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Funded
EMPLOYEE BENEFIT PLANS - Funded Status (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | |||
Benefit obligation | $ (319) | $ (388) | $ (367) |
Fair value of plan assets | 0 | 0 | |
Excess of benefit obligation over fair value of plan assets | $ (319) | $ (388) |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts Recognized in Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Accrued benefit liability | $ (319) | $ (388) |
Transition obligation and unrealized gain | (234) | (273) |
Net amount recognized in the consolidated balance sheets | $ (553) | $ (661) |
EMPLOYEE BENEFIT PLANS - Other
EMPLOYEE BENEFIT PLANS - Other Changes Recognized in Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Net periodic cost | $ 14 | $ 21 |
Current year actuarial (gain) loss | (2) | (18) |
Amortization of transition obligation | (4) | (4) |
Total recognized in other comprehensive income (loss) | (6) | (22) |
Total recognized in comprehensive income | $ 8 | $ (1) |
EMPLOYEE BENEFIT PLANS - Amou_2
EMPLOYEE BENEFIT PLANS - Amounts Not Yet Reflected in Net Period Benefit Cost and Included in Accumulated Other Comprehensive Gain (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Transition obligation | $ 58 | $ 40 |
Prior service cost | 174 | 215 |
Net actuarial gain (loss) | 2 | 18 |
Total recognized in accumulated other comprehensive gain | $ 234 | $ 273 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimate Amounts of Amortized Transition Obligation (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Retirement Benefits [Abstract] | |
Transition obligation | $ (4) |
EMPLOYEE BENEFIT PLANS - Aggreg
EMPLOYEE BENEFIT PLANS - Aggregate Benefit Plan Information and Accumulated Benefit Plan Obligation Information (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 319 | $ 388 |
Accumulated benefit obligation | 319 | 388 |
Fair value of plan assets | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Weight
EMPLOYEE BENEFIT PLANS - Weighted Average Assumption to Determine the Benefit Obligation (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Discount rate | 0.20% | 0.30% |
Rate of increase in compensation levels | 0.00% | 0.00% |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Period Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 56 | $ 61 |
Interest cost | 1 | 1 |
Amortization of transition obligation | 4 | 4 |
Defined Benefit Plan, Amortization of Gain (Loss) | (4) | (3) |
Prior service cost | (43) | (42) |
Total pension expense | $ 14 | $ 21 |
EMPLOYEE BENEFIT PLANS - Esti_2
EMPLOYEE BENEFIT PLANS - Estimated Benefits and Contributions (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2018 | $ 39 |
2019 | 32 |
2020 | 62 |
2021 | 24 |
2022 | 119 |
Next five years | 118 |
Total expected benefits to be paid | $ 394 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)plan$ / sharesshares | Dec. 31, 2018USD ($)$ / sharesshares | Apr. 17, 2017shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 7.50% | ||
Number of active stock based compensation plan | plan | 1 | ||
Number of shares authorized (in shares) | shares | 370,000 | ||
Number of shares available for grant (in shares) | shares | 162,767 | ||
Percentages of stock option ownership considered for higher exercise price of option | 10.00% | ||
Option exercise price as percentages of closing exercise price of stock for specific shareholders | 110.00% | ||
New shares issued (in shares) | shares | 1,667 | ||
Intrinsic value of exercised options | $ 100 | ||
Non-vested shares (in shares) | shares | 55,000 | 126,000 | |
Number of Options [Roll Forward] | |||
Outstanding at beginning of year (in shares) | shares | 421,000 | ||
Granted (in shares) | shares | 15,000 | ||
Exercised (in shares) | shares | (2,000) | ||
Forfeited or expired (in shares) | shares | (28,000) | ||
Outstanding at end of year (in shares) | shares | 381,000 | 421,000 | |
Options exercisable at year end (in shares) | shares | 326,000 | ||
Weighted average exercise price [Roll Forward] | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 16.68 | ||
Granted (in dollars per share) | $ / shares | 16.68 | ||
Exercised (in dollars per share) | $ / shares | 5.72 | ||
Outstanding at end of year (in dollars per share) | $ / shares | 16.24 | $ 16.68 | |
Options exercisable at year end (in dollars per share) | $ / shares | $ 16.25 | ||
Weighted average remaining contractual life (in years) [Abstract] | |||
Outstanding at end of year | 4 years 11 months 18 days | ||
Options exercisable at year end | 5 years 5 months 22 days | ||
Aggregate intrinsic value [Abstract] | |||
Outstanding at end of year | $ 0 | ||
Options exercisable at year end | $ 0 | ||
Assumptions used to calculate compensation expense and fair value of stock options granted [Abstract] | |||
Risk-free interest rate, minimum | 2.50% | ||
Risk-free interest rate, maximum | 2.80% | ||
Expected market price volatility, minimum | 55.60% | ||
Expected market price volatility, maximum | 56.40% | ||
Average expected life of stock options | 4 years 6 months | 4 years 6 months | |
Weighted-average grant-date fair value (in dollars per share) | $ / shares | $ 3.72 | $ 7.29 | |
Total fair value of shares vested | $ 400 | $ 600 | |
Summary of amounts related to the expense of the fair values of options [Abstract] | |||
Selling, general and administrative expenses and income from operations before income taxes | 456 | 888 | |
Benefit for income taxes | (23) | (50) | |
Effect on net income | 433 | $ 838 | |
Unrecognized compensation expense [Abstract] | |||
Total gross unrecognized compensation expense in 2018 | 136 | ||
Total gross unrecognized compensation expense in 2019 | 15 | ||
Total unrecognized compensation expense | 151 | ||
Tax benefit associated with unrecognized compensation expense due current | 11 | ||
Tax benefit associated with unrecognized compensation expense in 2018 | 3 | ||
Total tax benefit associated with unrecognized compensation expense | 14 | ||
Total net unrecognized compensation expense in 2018 | 125 | ||
Total net unrecognized compensation expense in 2019 | 12 | ||
Total net unrecognized compensation expense | $ 137 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 190.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 4760.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | 25,000 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 23.88 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 16.37 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentages of stock option ownership considered for higher exercise price of option | 10.00% | ||
Vesting period of stock options | 2 years | ||
Assumptions used to calculate compensation expense and fair value of stock options granted [Abstract] | |||
Dividend yield | 0.024 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Option exercise price as percentages of closing exercise price of stock for specific shareholders | 110.00% | ||
Vesting period of stock options | 3 years | ||
Assumptions used to calculate compensation expense and fair value of stock options granted [Abstract] | |||
Dividend yield | 0.029 | ||
Board of Directors | |||
Number of Options [Roll Forward] | |||
Granted (in shares) | shares | 15,000 | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of stock option plan | 10 years | ||
Incentive Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period of stock option plan | 5 years |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2016 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Total rent expense | $ 3,200,000 | $ 3,700,000 | $ 3,200,000 | |
Summary of future minimum rental commitments for non-cancelable operating leases [Abstract] | ||||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 2,131,000 | 1,850 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 1,592,000 | 977 | ||
Operating Leases, Future Minimum Payments, Due in Three Years | 1,145,000 | 583 | ||
Operating Leases, Future Minimum Payments, Due in Four Years | 606,000 | 586 | ||
Operating Leases, Future Minimum Payments, Due in Five Years | 613,000 | 586 | ||
Thereafter | 2,139,000 | 2,737 | ||
Total | 8,226,000 | 7,319 | ||
Royalty and Consulting Agreements [Abstract] | ||||
Payment of royalties | 100,000 | $ 100,000 | ||
Payable amount on termination of employment relationships with executives | 400,000 | |||
Natural Aloe de Costa Rica, S.A. | ||||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||||
Purchase commitment, period | 4 years | |||
Purchase commitment aggregate amount | $ 5,300,000 |
LITIGATION (Details)
LITIGATION (Details) $ in Millions | 1 Months Ended |
Jan. 31, 2014USD ($) | |
Busan Custom Office | Pending Litigation | |
Loss Contingencies [Line Items] | |
Damages paid | $ 1 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | Dec. 13, 2019 | Nov. 18, 2019 | Sep. 10, 2019 | Jun. 21, 2019 | May 31, 2019 | Mar. 22, 2019 | Dec. 27, 2018 | Sep. 26, 2018 | Jun. 15, 2018 | May 30, 2018 | May 18, 2018 | Mar. 28, 2018 | Aug. 08, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Aug. 31, 2018 | Aug. 31, 2016 | Aug. 28, 2006 | Jun. 30, 2004 | May 19, 1998 |
Preferred Stock [Abstract] | |||||||||||||||||||||
Common stock, shares authorized (in shares) | 99,000,000 | 99,000,000 | 100,000,000 | ||||||||||||||||||
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 | |||||||||||||||||||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |||||||||||||||||||
Preferred stock, shares issued (in shares) | 0 | 0 | |||||||||||||||||||
Preferred stock, shares outstanding (in shares) | 0 | 0 | |||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||||
Stock repurchased since inception | $ 305,000 | $ 7,543,000 | |||||||||||||||||||
Treasury stock repurchased (in shares) | 18,753 | 29,963 | |||||||||||||||||||
Treasury stock repurchased, average cost per share (USD per share) | $ 16.25 | $ 20.02 | |||||||||||||||||||
Shares issued due to exercise of stock options (in shares) | 1,667 | ||||||||||||||||||||
Shares issued as compensation for the work (in shares) | 14,568 | ||||||||||||||||||||
Sale of Stock, Consideration Received on Transaction | $ 6,600,000 | $ 16,000,000 | |||||||||||||||||||
Sale of Stock, Number of Shares Issued in Transaction | 316,659 | ||||||||||||||||||||
Sale of Stock, Price Per Share | $ 21 | ||||||||||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||||||||||
Beginning balance | $ 25,324,000 | $ 40,241,000 | |||||||||||||||||||
Current-period change before reclassifications | (607,000) | (1,661,000) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 41,000 | 4,000 | |||||||||||||||||||
Income tax provision | (14,000) | 10,000 | |||||||||||||||||||
Ending balance | 27,275,000 | 25,324,000 | $ 40,241,000 | ||||||||||||||||||
Dividends declared, price per share (USD per share) | $ 0.125 | $ 0.125 | |||||||||||||||||||
Dividends paid, price per share (USD per share) | $ 0.125 | $ 0.125 | $ 0.125 | $ 0.125 | |||||||||||||||||
Dividends | $ 300,000 | $ 300,000 | $ 300,000 | $ 300,000 | 1,200,000 | 3,100,000 | |||||||||||||||
June 2004 Plan | |||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||||
Number of common shares authorized to be repurchased (in shares) | 19,084 | 131,756 | |||||||||||||||||||
Stock repurchase program, authorized amount | $ 1,300,000 | ||||||||||||||||||||
Stock repurchased during period, shares | 112,672 | ||||||||||||||||||||
August 2006 Plan | |||||||||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||||||||
Stock repurchase program, authorized amount | $ 20,000,000 | ||||||||||||||||||||
Stock repurchase program, remaining authorized repurchase amount | 18,600,000 | $ 500,000 | $ 500,000 | ||||||||||||||||||
Stock repurchased since inception | 1,400,000 | ||||||||||||||||||||
Foreign Currency Translation | |||||||||||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||||||||||
Beginning balance | 4,042,000 | 5,703,000 | |||||||||||||||||||
Current-period change before reclassifications | (607,000) | (1,661,000) | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 0 | 0 | |||||||||||||||||||
Income tax provision | 0 | 0 | |||||||||||||||||||
Ending balance | 3,435,000 | 4,042,000 | 5,703,000 | ||||||||||||||||||
Pension Postretirement Benefit Obligation | |||||||||||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||||||||||
Beginning balance | 295,000 | 281,000 | |||||||||||||||||||
Current-period change before reclassifications | 0 | 0 | |||||||||||||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | 41,000 | 4,000 | |||||||||||||||||||
Income tax provision | (14,000) | 10,000 | |||||||||||||||||||
Ending balance | 322,000 | 295,000 | 281,000 | ||||||||||||||||||
Accumulated other comprehensive income | |||||||||||||||||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||||||||||||||||
Beginning balance | 4,337,000 | 5,984,000 | |||||||||||||||||||
Ending balance | $ 3,757,000 | $ 4,337,000 | $ 5,984,000 |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share [Abstract] | ||
Average Share Price | $ 17.11 | |
Basic (in shares) | 2,391 | 2,541 |
Incremental Common Shares Attributable to Dilutive Effect of Call Options and Warrants | 50 | |
Diluted (in shares) | 2,441 | 2,541 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)regionsegmentcountry | Dec. 31, 2018USD ($) | |
Segment Reporting [Abstract] | ||
Number of operating segments | segment | 1 | |
Number of reporting segments | segment | 1 | |
Number of countries in which entity network marketing and distribution channels operates | country | 25 | |
Minimum percentage of revenue considered for accounted of major customer | 10.00% | |
Number of countries in which company operates facilities | country | 13 | |
Number of countries in which company sells products | country | 26 | |
Number of regions in which company sells products | region | 3 | |
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 157,728 | $ 173,558 |
Percent of total revenue | 100.00% | 100.00% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 6,100 | $ 6,764 |
Inventory, by Country [Abstract] | ||
Inventories, net | 10,152 | 12,821 |
Consolidated product sales | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 154,600 | $ 170,200 |
Percent of total revenue | 98.00% | 0.00% |
Consolidated pack sales and associate fees | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 2,300 | $ 2,500 |
Percent of total revenue | 0.00% | 0.00% |
Consolidated other | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 800 | $ 900 |
Percent of total revenue | 0.00% | 0.00% |
Reportable Geographical Components | Americas | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 48,000 | $ 58,700 |
Percent of total revenue | 30.40% | 33.80% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 5,100 | $ 5,500 |
Inventory, by Country [Abstract] | ||
Inventories, net | 5,400 | 4,500 |
Reportable Geographical Components | Asia/Pacific | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 96,000 | $ 101,700 |
Percent of total revenue | 60.90% | 58.60% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 1,000 | $ 1,300 |
Inventory, by Country [Abstract] | ||
Inventories, net | 3,800 | 6,300 |
Reportable Geographical Components | EMEA | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 13,700 | $ 13,200 |
Percent of total revenue | 8.70% | 7.60% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 0 | $ 0 |
Inventory, by Country [Abstract] | ||
Inventories, net | $ 1,000 | $ 2,000 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for doubtful accounts | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | $ 770 | $ 582 |
Additions Charged to Costs and Expenses | 82 | 543 |
Additions Charged to other Accounts | 0 | 0 |
Deductions | (144) | (355) |
Balance at End of Year | 708 | 770 |
Allowance for obsolete inventories | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | 524 | 566 |
Additions Charged to Costs and Expenses | 986 | 710 |
Additions Charged to other Accounts | 0 | 0 |
Deductions | (636) | (752) |
Balance at End of Year | 874 | 524 |
Valuation allowance for deferred tax assets | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | 12,793 | 11,436 |
Additions Charged to Costs and Expenses | 604 | 1,357 |
Additions Charged to other Accounts | 0 | 0 |
Deductions | (1,022) | 0 |
Balance at End of Year | 12,375 | 12,793 |
Reserve for sales returns | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | 76 | 117 |
Additions Charged to Costs and Expenses | 1,068 | 1,188 |
Additions Charged to other Accounts | 0 | 0 |
Deductions | (1,076) | (1,229) |
Balance at End of Year | $ 68 | $ 76 |