Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | MANNATECH, INCORPORATED | ||
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, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding (shares) | 1,873,608 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Shell Company | false | ||
Entity Public Float | $ 17,136,784.5 | ||
Document Transition Report | false | ||
City Area Code | 75028 | ||
Entity File Number | 000-24657 | ||
Local Phone Number | 471-7400 | ||
Entity Tax Identification Number | 75-2508900 | ||
Trading Symbol | MTEX | ||
City Area Code | 972 | ||
Entity Incorporation, State or Country Code | TX | ||
Entity Address, Address Line One | 1410 Lakeside Parkway, Suite 200, | ||
Entity Address, State or Province | TX | ||
Entity Address, City or Town | Flower Mound, | ||
Auditor Firm ID | 243 | ||
Auditor Name | BDO USA, LLP | ||
Auditor Location | Dallas, Texas, USA | ||
Security Exchange Name | NASDAQ | ||
Document Annual Report | true | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | false | ||
Entity Ex Transition Period | false | ||
Title of 12(b) Security | Common Stock, par value $0.0001 per share | ||
Shares Issued, Price Per Share | $ 16.50 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and cash equivalents | $ 13,777 | $ 24,185 |
Restricted cash | 944 | 944 |
Accounts receivable, net of allowance of $973 and $987 in 2022 and 2021, respectively | 218 | 90 |
Income tax receivable | 423 | 342 |
Inventories, net | 14,726 | 12,020 |
Prepaid expenses and other current assets | 2,389 | 2,888 |
Deferred commissions | 2,476 | 2,369 |
Total current assets | 34,953 | 42,838 |
Long-lived assets | 3,759 | 4,239 |
Construction in progress | 378 | 1,357 |
Long-term restricted cash | 476 | 503 |
Other assets | 8,439 | 9,220 |
Deferred Tax Assets, Net | 1,501 | 2,825 |
Total assets | 49,128 | 59,625 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Current portion of finance leases | 61 | 68 |
Accounts payable | 4,361 | 3,969 |
Accrued expenses | 7,510 | 9,224 |
Commissions and incentives payable | 9,256 | 9,611 |
Taxes payable | 3,281 | 2,154 |
Current notes payable | 263 | 205 |
Deferred revenue | 5,106 | 4,867 |
Total current liabilities | 29,838 | 30,098 |
Finance leases, excluding current portion | 88 | 66 |
Other long-term liabilities | 5,026 | 5,049 |
Total liabilities | 34,952 | 35,213 |
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 1,858,800 shares outstanding as of December 31, 2022 and 2,742,857 shares issued and 1,940,687 shares outstanding as of December 31, 2021 | 0 | 0 |
Additional paid-in capital | 33,377 | 33,277 |
Retained earnings | 1,686 | 7,708 |
Accumulated other comprehensive (loss) income | (208) | 2,342 |
Treasury stock, at average cost, 884,057 shares as of December 31, 2022 and 802,170 shares as of December 31, 2021 | (20,679) | (18,915) |
Total shareholders’ equity | 14,176 | 24,412 |
Total liabilities and shareholders’ equity | $ 49,128 | $ 59,625 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Accounts receivable, allowance for doubtful accounts | $ 973 | $ 987 |
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) | 1,858,800 | 1,940,687 |
Treasury stock, shares (in shares) | 884,057 | 802,170 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 137,208 | $ 159,762 |
Cost of sales | 33,060 | 34,149 |
Gross profit | 104,148 | 125,613 |
Operating expenses: | ||
Commissions and incentives | 55,483 | 63,784 |
Selling and administrative expenses | 27,470 | 29,427 |
Depreciation and amortization | 1,627 | 1,719 |
Other operating costs | 19,973 | 21,634 |
Total operating expenses | 104,553 | 116,564 |
(Loss) income from operations | (405) | 9,049 |
Interest income | 88 | 66 |
Other (expense), net | (162) | (223) |
(Loss) income before income taxes | (479) | 8,892 |
Income tax (provision) benefit | (4,011) | 950 |
Net (loss) income | $ (4,490) | $ 9,842 |
(Loss) income per common share: | ||
Basic (in dollars per share) | $ (2.35) | $ 4.95 |
Diluted (in dollars per share) | $ (2.35) | $ 4.71 |
Weighted-average common shares outstanding: | ||
Basic (in shares) | 1,913 | 1,990 |
Diluted (in shares) | 1,913 | 2,088 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (4,490) | $ 9,842 |
Foreign currency translations loss | (2,546) | (2,832) |
Pension obligations, net of tax provision of $10 and $13 in 2022 and 2021, respectively | 19 | 24 |
Other Comprehensive Income (Loss), Net of Tax | (2,527) | (2,808) |
Comprehensive (loss) income | $ (7,017) | $ 7,034 |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Pension obligations, tax | $ 10 | $ 13 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common stock | Additional paid in capital | Retained earnings (accumulated deficit) | Accumulated other comprehensive income (loss) | Treasury stock |
Beginning balance at Dec. 31, 2020 | $ 25,972 | $ 0 | $ 33,795 | $ 2,213 | $ 5,150 | $ (15,186) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Charge related to stock-based compensation | 50 | 50 | ||||
Repurchase of common stock | 545 | (419) | 964 | |||
Treasury Stock, Value, Acquired, Cost Method | (5,052) | 0 | (5,052) | |||
Release of restricted stock | 0 | (105) | 105 | |||
Foreign currency translation | (2,832) | (2,832) | ||||
Pension obligations, net of tax of $10 | 24 | 24 | ||||
Issuance of unrestricted shares | 210 | (44) | 254 | |||
Net loss | 9,842 | 9,842 | ||||
Dividends, Common Stock, Cash | (4,347) | (4,347) | ||||
Ending balance at Dec. 31, 2021 | 24,412 | 0 | 33,277 | 7,708 | 2,342 | (18,915) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Charge related to stock-based compensation | 78 | 78 | ||||
Treasury Stock, Value, Acquired, Cost Method | (1,982) | 0 | (1,982) | |||
Release of restricted stock | 0 | (75) | 75 | |||
Prior Period Reclassification Adjustment | (23) | 0 | 23 | |||
Foreign currency translation | (2,546) | (2,546) | ||||
Pension obligations, net of tax of $10 | 19 | 19 | ||||
Issuance of unrestricted shares | 240 | 97 | 143 | |||
Net loss | (4,490) | (4,490) | ||||
Dividends, Common Stock, Cash | (1,532) | (1,532) | ||||
Ending balance at Dec. 31, 2022 | $ 14,176 | $ 0 | $ 33,377 | $ 1,686 | $ (208) | $ (20,679) |
CONSOLIDATED STATEMENTS OF SH_2
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Pension obligations, tax | $ 10 | $ 13 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (4,490) | $ 9,842 |
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 1,627 | 1,719 |
Operating Right Of Use Lease Liabilities Net | 1,868 | 2,201 |
Provision for inventory losses | 543 | 638 |
(Recovery of) Provision for doubtful accounts | (26) | 246 |
Loss on disposal of assets | 3 | 36 |
Stock-based compensation expense | 337 | 260 |
Deferred income taxes | 1,226 | (1,728) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (102) | (150) |
Income tax receivable | (81) | 666 |
Inventories | (3,249) | 169 |
Prepaid expenses and other current assets | 1,296 | 144 |
Deferred commissions | 768 | 486 |
Other Assets | (107) | (26) |
Accounts payable | 392 | (828) |
Accrued expenses and other long-term liabilities | (3,592) | (1,663) |
Taxes payable | 1,127 | 754 |
Commissions and incentives payable | (355) | (1,387) |
Deferred revenue | 239 | (605) |
Net cash (used in) provided by operating activities | (2,599) | 10,774 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Acquisition of property and equipment | (1,063) | (650) |
Net Cash Provided by (Used in) Investing Activities | (1,063) | (650) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from stock options exercised | 0 | 545 |
Repurchase of common stock | (1,982) | (5,052) |
Payment of cash dividends | (1,532) | (4,347) |
Repayment of finance lease obligations and other financing obligations | (817) | (435) |
Net Cash Provided by (Used in) Financing Activities | (4,331) | (9,289) |
Effect of Exchange Rate on Cash, Cash Equivalents, Restricted Cash, and Restricted Cash Equivalents, Continuing Operations | (2,442) | (2,700) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (10,435) | (1,865) |
Cash and cash equivalents and restricted cash at the end of the year | 13,777 | 24,185 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||
Income taxes paid, net | 715 | 137 |
Interest paid on finance leases | 32 | 31 |
Assets acquired through financing arrangements under ASC 840 | 798 | 0 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 15,197 | 25,632 |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 1,855 | 70 |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 93 | 0 |
Treasury shares exchanged for stock options exercised | 75 | 105 |
Gain (Loss) on Disposition of Stock in Subsidiary | $ (23) | $ 0 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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 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). Active business building associates ("independent associates" or "associates" or "distributors") and 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. We also ship our products to customers in the following countries: Belgium, France, Greece, Italy, Luxembourg, and Poland. 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. As a response to COVID-19, we closed some offices and worked remotely. The Company depends on an independent sales force of distributors to market and sell its products to consumers. Developments such as social distancing and shelter-in-place directives impacted, and may continue to impact, their ability to engage with potential and existing customers. The adverse economic effects of COVID-19 have had an impact on demand for the Company’s products due to government restrictions and changes in consumer behavior. Moreover, the Company has rescheduled corporate sponsored events, and in some cases, our associates have cancelled sales meetings. For some products the Company experienced shortages of raw materials, packaging supplies and ingredients and we successfully worked through challenges in getting these materials and ingredients to our contract manufacturers and finished products to our distribution centers. Despite the impact on the global supply chain, the Company has overcome obstacles in shipping to our customers. While the conditions described above are expected to be temporary, prolonged workforce disruptions, continued disruption in our supply chain and potential changes in consumer demands could negatively impact our sales as well as the Company’s overall liquidity. We are managing with a focus on our financial condition, liquidity, operations, suppliers, industry, and workforce. 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 translated at their approximate historical rates, monetary assets and liabilities are translated at exchange rates in effect at the end of the year, and revenues and expenses are translated at weighted-average exchange rates for the year. The local currency is the functional currency of our subsidiaries in 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 component of shareholders’ equity and is included in accumulated other comprehensive income. Foreign currency transactio n losses t otaled approximately $0.7 million and $0.2 million for the years ended December 31, 2022 and 2021, respectively, and are included in other (expense) income, 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, 2022 and 2021, credit card receivables were $1.9 million and $1.2 million, respectively, and cash and cash equivalents held in bank accounts in foreign countries totaled $11.3 million and $22.6 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, 2022, 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 $21.3 million. In addition, for the year ended December 31, 2022, 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. At each of December 31, 2022 and 2021, our total restricted cash was $1.4 million. 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 and 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, 2022 December 31, 2021 Cash and cash equivalents at beginning of period $ 24,185 $ 22,207 Current restricted cash at beginning of period 944 944 Long-term restricted cash at beginning of period 503 4,346 Cash and cash equivalents and restricted cash at beginning of period $ 25,632 $ 27,497 Cash and cash equivalents at end of period $ 13,777 $ 24,185 Current restricted cash at end of period 944 944 Long-term restricted cash at end of period 476 503 Cash and cash equivalents and restricted cash at end of period $ 15,197 $ 25,632 Accounts Receivable Accounts receivable are carried at their estimated collectible amounts. As of December 31, 2022 and 2021, 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. At each of December 31, 2022 and 2021, the Company held an allowance for doubtful accounts of $1.0 million. 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 $2.4 million and $2.9 million at December 31, 2022 and 2021, respectively. Included in the December 31, 2022 and 2021 balances were $1.2 million and $1.1 million in other prepaid assets. Also included in the balances at December 31, 2022 and 2021 were $0.9 million and $0.5 million for prepaid deposits, respectively. Also included in the balances at December 31, 2022 and 2021 were $0.3 million and $1.3 million in prepaid inventory, respectively. 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 2 to 10 years 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, 2022 and 2021, other assets were $8.4 million and $9.2 million, respectively. The December 31, 2022 and 2021 balances include operating lease right of use assets of $4.6 million and $4.7 million, respectively. See Note 5, Leases for more information. Included in the December 31, 2022 and 2021 balances were deposits for building leases in various locations of $1.3 million and $1.9 million, respectively. Also included in the December 31, 2022 and 2021 balances were $2.3 million and $2.4 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, 2022 and 2021 also include $0.2 million of indefinite lived intangible assets relating to the Manapol ® powder trademark. Notes Payable Notes payable were $0.3 million and $0.2 million as of December 31, 2022 and December 31, 2021, 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 8.3% and are collateralized by leasehold improvements and computer hardware and software. At December 31, 2022 and December 31, 2021, the current portion was $0.3 million and $0.2 million, respectively. Other Long-Term Liabilities Other long-term liabilities were $5.0 million at each of December 31, 2022 and 2021. At December 31, 2022 and 2021, we recorded long-term lease liabilities related to operating leases of $4.2 million and $4.3 million, respectively. See Note 5, Leases for more information. As of December 31, 2022 and 2021, government mandated severance accruals in certain international offices amounted to $0.6 million and $0.5 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 $0.2 million at each of December 31, 2022 and 2021 (see Note 9, Employee Benefit Plans ). Revenue Recognition The Company’s revenue is derived from sales of individual products and associate fees or, in certain geographic markets, starter 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 delivered 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. Payments are made immediately through credit card upon purchase of the products. 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 by using observable inputs which includes the Company’s standard published price lists. Our sales mix for the years ended December 31, was as follows (in millions, except percentages) : 2022 Percentage 2021 Percentage Consolidated product sales $ 130.2 94.9 % $ 151.0 94.4 % Consolidated pack sales and associate fees 6.2 4.5 % 8.0 5.1 % Consolidated other 0.8 0.6 % 0.8 0.5 % Total consolidated net sales $ 137.2 100.0 % $ 159.8 100.0 % Revenues by reporting segment are presented in Note 15, Segment Information 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, Segment Information 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 $2.5 million and $2.4 million at December 31, 2022 and 2021, respectively. The full $2.4 million balance at December 31, 2021 was amortized to commissions expense for the twelve months ended December 31, 2022. 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, 2022 and 2021, the Company’s deferred revenue was $5.1 million and $4.9 million, respectively. The full $4.9 million balance at December 31, 2021 was recognized as revenue for the twelve months ended December 31, 2022. 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, 2022 and December 31, 2021 was $4.2 million and $4.3 million, as follows: Loyalty program (in thousands) Loyalty deferred revenue as of January 1, 2021 $ 4,487 Loyalty points forfeited or expired (3,987) Loyalty points used (9,809) Loyalty points vested 11,676 Loyalty points unvested 1,925 Loyalty deferred revenue as of December 31, 2021 $ 4,292 Loyalty deferred revenue as of January 1, 2022 $ 4,292 Loyalty points forfeited or expired (3,387) Loyalty points used (10,543) Loyalty points vested 12,773 Loyalty points unvested 1,032 Loyalty deferred revenue as of December 31, 2022 $ 4,167 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. At December 31, 2022 and December 31, 2021, our sales return reserve, which is a component of Accrued expenses, consisted of the following (in thousands) : Sales reserve as of January 1, 2021 $ 71 Provision related to sales made in current period 778 Adjustment related to sales made in prior periods (11) Actual returns or credits related to current period (728) Actual returns or credits related to prior periods (55) Sales reserve as of December 31, 2021 $ 55 Sales reserve as of January 1, 2022 $ 55 Provision related to sales made in current period 783 Adjustment related to sales made in prior periods (4) Actual returns or credits related to current period (730) Actual returns or credits related to prior periods (45) Sales reserve as of December 31, 2022 $ 59 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 $3.2 million and $3.5 million for the years ended December 31, 2022 and 2021, respectively. Educational and promotional items 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 $1.0 million and $1.2 million for the years ended December 31, 2022 and 2021, respectively. 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. See Note 10, Stock Based Compensation. S oftware 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, 2022 and 2021, the Company capitalized $0.4 million and $0.3 million of qualifying internal payroll costs, respectively. The Company amortizes such costs over the estimated useful life of the software, which is three five 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 of a long-term-investment nature 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 ® , TruHealth ™ , Advanced Ambrotose ® , Manapol® Powder and Optimal Support Packets. 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, 2022 and 2021 ( in thousands, except percentages ): 2022 2021 Sales by % of total Sales by % of total Ambrotose Life ® $ 28,734 20.9 % $ 28,776 18.0 % TruHealth ™ 15,730 11.5 % 18,010 11.3 % Advanced Ambrotose ® 9,624 7.0 % 11,158 7.0 % Manapol ® Powder 7,909 5.8 % 13,141 8.2 % Optimal Support Packets 6,916 5.0 % 7,593 4.7 % Total $ 68,913 50.2 % $ 78,678 49.2 % 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, 2022, the Company purchased finished goods from four suppliers that accounted for 60.1% of the year's cost of sales. During the year ended December 31, 2021, the Company purchased finished goods from four suppliers that accounted for 36.4% 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. Reclassification of Prior Year Presentation Certain prior year amounts have been reclassified for consistency with the current year presentation. These reclassifications had no effect on the reported balances or results of operations. An adjustment has been made to the Consolidated Balance Sheet for fiscal year ended December 31, 2021, to reclassify Construction in Progress to Property and Equipment, net. 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. 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 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 Topic 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 has reviewed the pronouncement and not found any indication nor do we expect to find that 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
FAIR VALUE | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021. 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, 2022 and 2021. 2022 Level 1 Level 2 Level 3 Total Assets Interest bearing deposits – various banks $ 3,855 $ — $ — $ 3,855 Total assets $ 3,855 $ — $ — $ 3,855 Amounts included in: Cash and cash equivalents $ 3,014 $ — $ — $ 3,014 Restricted cash 680 — — 680 Long-term restricted cash 161 — — 161 Total $ 3,855 $ — $ — $ 3,855 2021 Level 1 Level 2 Level 3 Total Assets Interest bearing deposits – various banks $ 7,838 $ — $ — $ 7,838 Total assets $ 7,838 $ — $ — $ 7,838 Amounts included in: Cash and cash equivalents $ 6,986 $ — $ — $ 6,986 Restricted cash 680 — — 680 Long-term restricted cash 172 — — 172 Total $ 7,838 $ — $ — $ 7,838 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021, consisted of the following (in thousands) : 2022 2021 Raw materials $ 3,302 $ 3,271 Finished goods 11,841 9,196 Inventory reserves for obsolescence (417) (447) Total $ 14,726 $ 12,020 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT As of December 31, 2022 and 2021, construction in progress was $0.4 million and $1.4 million, respectively, which is primarily comprised of back-office software projects with service dates that are currently indeterminable. As of December 31, 2022 and 2021, property and equipment consisted of the following (in thousands) : 2022 2021 Office furniture and equipment $ 2,351 $ 2,648 Computer hardware 3,515 3,755 Computer software 45,623 44,303 Automobiles 110 81 Leasehold improvements 4,079 4,292 ROU Assets- finance leases 182 177 55,860 55,256 Less accumulated depreciation and amortization (52,479) (52,374) Property and equipment, net 3,381 2,882 Construction in progress 378 1,357 Total $ 3,759 $ 4,239 |
LEASES (Notes)
LEASES (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES The Company leases office space and equipment from third-party lessors and accounts for leases in accordance with ASC Topic 842. Right of use assets represent the Company’s right to use an underlying asset over the lease term and lease liabilities represent the Company’s obligation to make future lease payments arising from the lease. Operating lease liabilities and finance lease liabilities with terms greater than 12 months are recorded at the present value of the lease payments at the commencement date. The related right of use 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. The Company uses the discount rate implicit in the lease when it is readily determinable. When it is not readily available, future lease payments are discounted using the incremental borrowing rate available to the Company. 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. Lease components, such as office space, are accounted for separately from the non-lease components, such as maintenance fees. Certain of the Company's leases may also include rent 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 the Company will exercise that option. None of the Company’s current leases contain guarantees of residual value. Leases with an initial term of 12 months or less are considered short term and are not recorded on the balance sheet. The Company recognizes a lease expense for short term leases on a straight-line basis over the lease term. Generally, the Company’s operating leases relate to office space used in Mannatech’s operations, including its headquarters in Flower Mound, Texas and office space in international locations in which the Company does business. As of December 31, 2022, all of the Company’s finance leases pertain to certain equipment used in the business. As of December 31, 2022 and 2021, our leased assets and liabilities consisted of the following (in thousands): Leases Classification December 31, 2022 December 31, 2021 Right of Use Assets Operating leases Other assets $ 4,649 $ 4,625 Finance leases Property and equipment, net 182 180 Total leased assets 4,831 4,805 Lease Liabilities Current Portion Operating leases Accrued expenses 1,600 1,493 Finance leases Current portion of finance leases 61 68 Long-Term Portion Operating leases Other long-term liabilities 4,153 4,318 Finance leases Finance leases, excluding current portion 88 66 Total leased liabilities $ 5,902 $ 5,945 Operating lease costs are recognized on a straight-line basis over the lease term. Finance lease costs are composed of the amortization of the right of use asset and the amounts recorded as interest. For the years ended December 31, 2022 and 2021, we incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification 2022 2021 Operating leases Operating lease costs Other operating costs $ 2,137 $ 2,201 Short term lease costs Other operating costs 279 339 Finance leases Amortization of leased assets Depreciation and amortization 89 108 Interest on lease liabilities Interest expense 9 28 Total lease cost $ 2,514 $ 2,676 For the twelve months ended December 31, 2022 and 2021, cash paid for amounts included in the measurement of lease liabilities included (in thousands): 2022 2021 Operating cash flows from operating leases $ 2,017 $ 2,164 Financing cash flows from finance leases $ 76 $ 87 As of December 31, 2022 and 2021 the Company's lease terms and discount rates were: 2022 2021 Operating leases Weighted-average remaining lease term (years) 4.07 5.04 Weighted-average discount rate 4.35 % 4.5 % Finance leases Weighted-average remaining lease term (years) 3.25 2.14 Weighted-average discount rate 7.43 % 6.57 % As of December 31, 2022 future minimum lease payments were as follows (in thousands): December 31, 2022 Maturity of lease liabilities Operating Leases Finance Leases 2022 $ 1,829 $ 69 2023 1,772 43 2024 1,106 22 2025 704 21 2026 650 9 Thereafter 268 — Total future minimum lease payments $ 6,329 $ 164 Imputed interest (576) (15) Present value of minimum lease payments $ 5,753 $ 149 |
CAPITAL LEASE OBLIGATIONS
CAPITAL LEASE OBLIGATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Leases, Capital [Abstract] | |
Leases of Lessee Disclosure [Text Block] | LEASES The Company leases office space and equipment from third-party lessors and accounts for leases in accordance with ASC Topic 842. Right of use assets represent the Company’s right to use an underlying asset over the lease term and lease liabilities represent the Company’s obligation to make future lease payments arising from the lease. Operating lease liabilities and finance lease liabilities with terms greater than 12 months are recorded at the present value of the lease payments at the commencement date. The related right of use 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. The Company uses the discount rate implicit in the lease when it is readily determinable. When it is not readily available, future lease payments are discounted using the incremental borrowing rate available to the Company. 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. Lease components, such as office space, are accounted for separately from the non-lease components, such as maintenance fees. Certain of the Company's leases may also include rent 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 the Company will exercise that option. None of the Company’s current leases contain guarantees of residual value. Leases with an initial term of 12 months or less are considered short term and are not recorded on the balance sheet. The Company recognizes a lease expense for short term leases on a straight-line basis over the lease term. Generally, the Company’s operating leases relate to office space used in Mannatech’s operations, including its headquarters in Flower Mound, Texas and office space in international locations in which the Company does business. As of December 31, 2022, all of the Company’s finance leases pertain to certain equipment used in the business. As of December 31, 2022 and 2021, our leased assets and liabilities consisted of the following (in thousands): Leases Classification December 31, 2022 December 31, 2021 Right of Use Assets Operating leases Other assets $ 4,649 $ 4,625 Finance leases Property and equipment, net 182 180 Total leased assets 4,831 4,805 Lease Liabilities Current Portion Operating leases Accrued expenses 1,600 1,493 Finance leases Current portion of finance leases 61 68 Long-Term Portion Operating leases Other long-term liabilities 4,153 4,318 Finance leases Finance leases, excluding current portion 88 66 Total leased liabilities $ 5,902 $ 5,945 Operating lease costs are recognized on a straight-line basis over the lease term. Finance lease costs are composed of the amortization of the right of use asset and the amounts recorded as interest. For the years ended December 31, 2022 and 2021, we incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification 2022 2021 Operating leases Operating lease costs Other operating costs $ 2,137 $ 2,201 Short term lease costs Other operating costs 279 339 Finance leases Amortization of leased assets Depreciation and amortization 89 108 Interest on lease liabilities Interest expense 9 28 Total lease cost $ 2,514 $ 2,676 For the twelve months ended December 31, 2022 and 2021, cash paid for amounts included in the measurement of lease liabilities included (in thousands): 2022 2021 Operating cash flows from operating leases $ 2,017 $ 2,164 Financing cash flows from finance leases $ 76 $ 87 As of December 31, 2022 and 2021 the Company's lease terms and discount rates were: 2022 2021 Operating leases Weighted-average remaining lease term (years) 4.07 5.04 Weighted-average discount rate 4.35 % 4.5 % Finance leases Weighted-average remaining lease term (years) 3.25 2.14 Weighted-average discount rate 7.43 % 6.57 % As of December 31, 2022 future minimum lease payments were as follows (in thousands): December 31, 2022 Maturity of lease liabilities Operating Leases Finance Leases 2022 $ 1,829 $ 69 2023 1,772 43 2024 1,106 22 2025 704 21 2026 650 9 Thereafter 268 — Total future minimum lease payments $ 6,329 $ 164 Imputed interest (576) (15) Present value of minimum lease payments $ 5,753 $ 149 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES | ACCRUED EXPENSES As of December 31, 2022 and 2021, accrued expenses consisted of the following (in thousands) : 2022 2021 Accrued asset purchases $ 66 $ 96 Accrued compensation 1,737 2,566 Accrued royalties 41 — Accrued sales and other taxes 290 314 Other accrued operating expenses 473 1,528 Customer deposits and sales returns 641 774 Accrued travel expenses related to corporate events 834 879 Accrued shipping and handling costs 528 356 Accrued legal and accounting fees 1,300 1,218 Current portion of operating lease liabilities 1,600 1,493 $ 7,510 $ 9,224 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The components of the Company’s (loss) income before income taxes are attributable to the following jurisdictions for the years ended December 31 (in thousands) : 2022 2021 United States $ (7,822) $ 6,947 Foreign 7,343 1,945 (Loss) income before income taxes $ (479) $ 8,892 The components of the Company’s income tax provision (benefit) for the years ended December 31 (in thousands) : Current provision (benefit): 2022 2021 Federal $ 241 $ (17) State (37) (161) Foreign 2,581 956 2,785 778 Deferred provision (benefit): Federal 1,200 (1,183) State 81 (131) Foreign (55) (414) 1,226 (1,728) $ 4,011 $ (950) For the years ended December 31, 2022 and 2021, the Company’s effective tax rate was (837.4)% and (10.7)%, respectively. The Company's effective tax rate for the year ended December 31, 2022 differed from the statutory rate due to additional taxes assessed as a result of the settlement of the income tax audit in Korea, the Company recording a valuation allowance on U.S. deferred tax assets largely driven by changes in expected earnings mix between jurisdictions, and the relative impact of these items on decreased earnings. The Company's effective tax rate for the year ended December 31, 2021 differed from the statutory rate due to the release of valuation allowance on U.S. deferred tax assets due to the expectation of current and future utilization. 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: 2022 2021 Federal statutory income taxes 21.0 % 21.0 % State income taxes, net of federal benefit 20.7 0.8 Difference in foreign and United States tax on foreign operations (24.8) 0.7 Assessments from taxing authorities (278.5) — Effect of changes in valuation allowance (383.7) (45.0) Foreign Derived Intangible Income (FDII) deduction — (8.1) Credits generated 15.2 (0.5) Effect of changes in tax rates 19.4 0.2 Foreign charitable contributions (12.5) 0.7 Return to provision adjustments (43.4) 1.3 Withholding taxes (50.3) 2.5 Changes to uncertain tax positions — (1.8) Expiration of tax attribute (135.5) 17.4 Other 15.0 0.1 (837.4) % (10.7) % 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: 2022 2021 Deferred Revenue $ 629 $ 409 Inventory 260 235 Accrued expenses 1,240 1,352 Net operating loss (1) 4,956 5,310 Equity Compensation 240 242 Foreign tax credit carryover 3,333 3,436 Lease liability 673 763 Capitalized research & development 218 — Other 968 664 Total deferred tax assets $ 12,517 $ 12,411 Valuation allowance (9,772) (7,934) Total deferred tax assets, net of valuation allowance $ 2,745 $ 4,477 Deferred tax liabilities: Prepaid expenses 41 111 Deferred commissions 418 450 Internally-developed software — 104 Lease assets 624 717 Fixed assets 161 270 Total deferred tax liabilities $ 1,244 $ 1,652 Total net deferred tax asset $ 1,501 $ 2,825 (1) The Company’s net operating loss will expire as follows (dollar amounts in thousands): Jurisdiction Gross NOL Tax Effected NOL Expiration Years Australia $ 120 $ 36 Indefinite Bermuda 73 — N/A Cyprus 1,373 172 2023-2027 Denmark 1 — Indefinite Gibraltar 253 32 Indefinite Mexico 6,136 1,840 2023-2028 Netherlands 5 1 Indefinite Norway 267 59 Indefinite Russia 8 2 Indefinite Singapore 148 25 Indefinite South Africa 631 170 Indefinite Sweden 424 87 Indefinite Switzerland 4,510 415 2023-2029 Taiwan 3,081 616 2023-2032 Ukraine 7 1 Indefinite United Kingdom 275 69 Indefinite United States - Federal 2,835 596 Indefinite United States - State 14,248 835 2023-Indefinite We have U.S. foreign tax credit carryforwards of $3.3 million as of December 31, 2022, which will begin to expire in 2024. The Company maintains a valuation allowance of $3.3 million against its foreign tax credit carryforwards. At December 31, 2022 and 2021, the Company’s valuation allowance was $9.8 million and $7.9 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 allowance against the Company's deferred tax assets consisted of the following at December 31 ( in millions): Country 2022 2021 China $ 0.4 $ 0.5 Colombia — 0.5 Cyprus 0.2 0.2 Mexico 1.8 1.9 Norway 0.1 0.1 South Africa 0.2 0.2 Switzerland 0.3 0.5 Taiwan 0.6 0.6 United States 6.2 3.4 Total $ 9.8 $ 7.9 As of December 31, 2022 and 2021, the Company had no unrecognized tax benefits. The Company recognizes interest and/or penalties related to uncertain tax positions in current income tax expense. As of December 31, 2022 and 2021, the Company had no accrued interest and penalties in the consolidated balance sheet or the consolidated statement of operations. The Company is subject to examination by taxing authorities in the United States and various state and foreign jurisdictions. As of December 31, 2022, 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 2018-2021 Japan 2017-2021 Republic of Korea 2018-2022 Switzerland 2018-2021 United States 2019-2021 |
TRANSACTIONS WITH RELATED PARTI
TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES | TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES The Company made cash donations of $0.6 million to the M5M Foundation for each of the years ended December 31, 2022 and December 31, 2021. 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 $477,000 and $375,000 in 2022 and 2021, respectively, for salary, bonus, auto allowance, and other compensation to Landen Fredrick. In addition, Landen Fredrick participated in the employee health care benefit plans available to all employees of the Company. Effective November 12, 2019, Landen Fredrick was promoted from Chief Global Sales Officer and President, North America to Chief Sales & Marketing Officer. Mr. Fredrick had served as Chief Global Sales Officer and President, North America since January 1, 2018. Prior to that, Mr. Fredrick had served as Senior Vice President, Global Operations since August of 2016, 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 the past, but did not do so during the years ended December 31, 2022 and 2021. In addition, several of Mr. Robbins’ family members are independent associates. The Company pays commissions and incentives to its independent associates and, during 2022 and 2021, the Company paid aggregate commissions and incentives to Mr. Robbins and his family of approximately $1.7 million and $1.8 million, respectively. The aggregate amount of commissions and incentives paid to Mr. Robbins was approximately $0.2 million in each of 2022 and 2021. The aggregate amount of commission and incentives paid in 2022 and 2021 to Mr. Robbins' father, Ray Robbins, who holds positions in the Company's associate global downline network marketing system was approximately $1.5 million and $1.6 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. 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 each of 2022 and 2021. 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, 2022 | |
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 five $0.3 million to the 401(k) Plan for matching contributions. 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: 2022 2021 Balance, beginning of year $ 213 $ 370 Service cost 40 49 Interest cost — 1 Liability (gain) loss (6) (4) Benefits paid to participants — (171) Foreign currency (27) (32) Balance, end of year $ 220 $ 213 Plan assets: 2022 2021 Fair value, beginning of year $ — $ — Company contributions — 171 Benefits paid to participants — (171) Fair value, end of year $ — $ — Funded status of the Benefit Plan as of December 31 (in thousands) : 2022 2021 Benefit obligation $ (220) $ (213) Fair value of plan assets — — Excess of benefit obligation over fair value of plan assets $ (220) $ (213) Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands) : 2022 2021 Accrued benefit liability $ (220) $ (213) Transition obligation and unrealized gain (89) (137) Net amount recognized in the consolidated balance sheets $ (309) $ (350) Years Ended December 31, Other changes recognized in comprehensive income (in thousands): 2022 2021 Net periodic cost $ 3 $ 7 Current year actuarial gain (6) (4) Amortization of transition obligation (3) (4) Total recognized in other comprehensive loss (9) (8) Total recognized in comprehensive (loss) income $ (6) $ (1) Years Ended December 31, Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain (in thousands) : 2022 2021 Transition obligation $ 45 $ 49 Prior service cost 38 84 Net actuarial gain 6 4 Total recognized in accumulated other comprehensive gain $ 89 $ 137 As of December 31, Amounts included in Accumulated Other Comprehensive Income (Loss) (in thousands) : 2022 2021 Net actuarial gain $ 657 $ 628 Deferred tax provision (257) (247) Net cumulative amount included in accumulated other comprehensive income (loss) $ 400 $ 381 Estimated amounts of amortized transition obligation (in thousands): 2022 2021 Transition obligation $ (3) $ (4) As of December 31, Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands): 2022 2021 Projected benefit obligation $ 220 $ 213 Accumulated benefit obligation 220 213 Fair value of plan assets — — The weighted-average assumptions to determine the benefit obligation and net cost are as follows: 2022 2021 Discount rate 0.50 % 0.20 % Rate of increase in compensation levels — — Components of Expense Service Cost for the Benefit Plan is included within selling and administrative expenses and all other items noted in the table below (Interest Cost, Amortization of Transition Obligation, Loss and Prior Service Cost) are included within other (expense), net. Pension costs, which are included within Consolidated Statement of Operations are detailed below for the years ended December 31 (in thousands) : 2022 2021 Service cost $ 40 $ 49 Interest cost — 1 Amortization of transition obligation 3 4 Loss (4) (4) Prior service cost (36) (43) Total pension expense $ 3 $ 7 Estimated Benefits and Contributions The Company expects to contribute approximately $18,000 to the Benefit Plan in 2023. As of December 31, 2022, benefits expected to be paid by the Benefit Plan for the next ten years is approximately as follows (in thousands) : 2023 $ 18 2024 19 2025 35 2026 38 2027 30 Next five years 187 Total expected benefits to be paid $ 327 |
STOCK BASED COMPENSATION
STOCK BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022, the Company had a total of 126,276 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 three ten five A summary of changes in stock options outstanding during the year ended December 31, 2022, is as follows: 2022 Number of Weighted Weighted Aggregate Outstanding at beginning of year 244 $ 17.10 Granted 11 22.00 Exercised (11) 16.93 Expired — — Forfeit — — Outstanding at end of year 244 $ 17.35 4.33 $ 418 Options exercisable at year end 234 $ 17.14 4.13 $ 418 During 2022, the Company issued 11,334 treasury shares upon the exercise of options and granted 11,807 new options to management and members of the Board. Options exercised during the years ending December 31, 2022 and 2021 had a total intrinsic value, calculated as the difference between the exercise date stock price and the exercise price of $0.1 million and $1.2 million, respectively. Non-vested shares at December 31, 2022 and 2021 were approximately 10,003 and 8,336, 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 fair-value based on an 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 fair value of stock options granted each year: 2022 2021 Dividend yield: 2.6 - 3.9 % 2.4 % Risk-free interest rate: 2.9 - 3.4 % 0.7 % Expected market price volatility: 63.6 - 64.9 % 56.7 % 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 volatility 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, 2022 and 2021 was $7.21 and $6.77 per share, respectively. The total fair value of awards vested during the years ended December 31, 2022 and 2021 was less than $0.1 million and $0.1 million, respectively. The Company recorded the following amounts related to the expense of the fair values of options during the years ended December 31, 2022 and 2021 (in thousands) : 2022 2021 Selling, general and administrative expenses and income from operations before income taxes $ 78 $ 50 Benefit for income taxes (18) (12) Effect on net income $ 60 $ 38 At each of the years ended December 31, 2022 and 2021, the Company had $0.2 million of compensation expense related to the issuance of unrestricted shares. As of December 31, 2022, the Company had less than $0.1 million of total unrecognized compensation expense related to stock options currently outstanding, to be recognized in future years, ending December 31, as follows (in thousands): Total gross unrecognized Total tax benefit associated Total net 2023 $ 33 $ 8 $ 25 2024 10 2 8 $ 43 $ 10 $ 33 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Purchase Commitments The Company maintains supply agreements with its suppliers and manufacturers. In 2016, the Company entered into a four-year supply agreement with a vendor to purchase an aloe vera powder in whole leaf aloe form and an aloe vera gel extract. The agreement has been amended and renews annually. As of December 31, 2022, the Company is required to purchase an aggregate of $7.9 million through 2024. 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 less than $0.1 million for each of the years ended December 31, 2022 and 2021. 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, 2022, the Company would continue to be indebted to the executives for $0.6 million , payable through 2023. Korean Customs Audit |
LITIGATION
LITIGATION | 12 Months Ended |
Dec. 31, 2022 | |
LITIGATION [Abstract] | |
LITIGATION | LITIGATION 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 reserves for contingencies arising from current legal matters where an outcome was deemed to be probable, and the loss amount could be reasonably estimated. No legal reserve was deemed necessary at December 31, 2022. |
SHAREHOLDERS' EQUITY
SHAREHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
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. In December of 2019, the Company’s Board of Directors approved a share repurchase program to acquire up to $1.0 million (of the original $20.0 million authorization) of the Company’s common stock through March 1, 2020. In August 2020, the Company’s Board of Directors approved a share repurchase program to acquire up to $1.0 million (of the original $20.0 million authorization) of the Company’s common stock through August 16, 2021. In September 2021, the Company's Board approved a share repurchase program to acquire up to $1.0 million (of the original $20.0 million authorization) of our common stock through September 21, 2022. In September 2022, our Board approved a share repurchase program to acquire up to $1.5 million (of the original $20.0 million authorization) of our common stock through September 18, 2023. As of December 31, 2022, there was $12.6 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 $1.5 million. The Company does not have any stock repurchase plans or programs other than the June 2004 Plan and the August 2006 Plan. During the year ended December 31, 2022, the Company repurchased 99,293 shares of its common stock, at an average price of $21.87. During the year ended December 31, 2021, the Company repurchased 200,115 shares of its common stock, which included 171,433 shares of its common stock repurchased pursuant to the 2021 tender offer, at an average price of $26.76. Equity-Based Compensation During 2022, 11,334 treasury shares were issued for stock option exercises and a total of 6,072 treasury 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 Pension Accumulated Balance as of December 31, 2020 $ 4,793 $ 357 $ 5,150 Current-period change before reclassifications (2,832) — (2,832) Amounts reclassified from accumulated other comprehensive income (loss) — 37 37 Income tax provision — (13) (13) Balance as of December 31, 2021 $ 1,961 $ 381 $ 2,342 Current-period change before reclassifications (2,546) — (2,546) Disposition of foreign entity (23) — (23) Amounts reclassified from accumulated other comprehensive income (loss) — 29 29 Income tax provision — (10) (10) Balance as of December 31, 2022 $ (608) $ 400 $ (208) Dividends During the year ended December 31, 2022, the Company declared and paid dividends amounting to an aggregate of $1.5 million. During the year ended December 31, 2021, the Company declared and paid dividends amounting to an aggregate of $4.3 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, 2022 | |
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. For the year ended December 31, 2022, shares of the Company's common 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, 2022. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
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-four countries. Each of the business units receives associate fees or sells similar packs (in the case of Mexico and South Korea, where packs have not 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 pack sales and associate fees 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. 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 eleven countries and sells product in twenty-five 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 and China. Each facility services different geographic areas. We currently sell our products in three regions: (i) the Americas (the United States, Canada 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). 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 2022 2021 Americas $ 41.6 30.3 % $ 46.8 29.3 % Asia/Pacific 83.8 61.1 % 97.7 61.1 % EMEA 11.8 8.6 % 15.3 9.6 % Total $ 137.2 100.0 % $ 159.8 100.0 % 2022 2021 Consolidated product sales $ 130.2 $ 151.0 Consolidated pack sales and associate fees 6.2 8.0 Consolidated other 0.8 0.8 Total $ 137.2 $ 159.8 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 2022 2021 Americas $ 3.2 $ 3.8 Asia/Pacific 0.6 0.4 EMEA — — Total $ 3.8 $ 4.2 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 2022 2021 Americas $ 7.5 $ 5.7 Asia/Pacific 5.4 4.7 EMEA 1.8 1.6 Total $ 14.7 $ 12.0 |
SCHEDULE II - VALUATION AND QUA
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS | 12 Months Ended |
Dec. 31, 2021 | |
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, 2021 Deducted from asset accounts: Allowance for doubtful accounts $ 817 246 — (76) $ 987 Allowance for obsolete inventories $ 471 638 — (662) $ 447 Valuation allowance for deferred tax assets $ 11,933 (3,999) — — $ 7,934 Included in accrued expenses: Reserve for sales returns $ 71 767 — (783) $ 55 Year Ended December 31, 2022 Deducted from asset accounts: Allowance for doubtful accounts $ 987 (26) — 12 $ 973 Allowance for obsolete inventories $ 447 543 — (573) $ 417 Valuation allowance for deferred tax assets $ 7,934 1,838 — — $ 9,772 Included in accrued expenses: Reserve for sales returns $ 55 779 — (775) $ 59 |
SUBSEQUENT EVENTS (Notes)
SUBSEQUENT EVENTS (Notes) | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENTS In February 2023, the Daegu Customs Office began an audit of our Korean subsidiary, Mannatech Korea, reviewing point of origin for compliance with free trade agreement terms. Several products imported between July 2017 and December 2021 have been identified as subject of this audit. Depending on the outcome of this audit, duty tariff rates could be modified which could result in additional customs, VAT and penalties. As it is early in the audit, the Company is not able to estimate the financial impact from this audit on its results of operations, financial condition, or liquidity for fiscal year 2023. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
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 translated at their approximate historical rates, monetary assets and liabilities are translated at exchange rates in effect at the end of the year, and revenues and expenses are translated at weighted-average exchange rates for the year. The local currency is the functional currency of our subsidiaries in 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 component of shareholders’ equity and is included in accumulated other comprehensive income. Foreign currency transactio n losses t otaled approximately $0.7 million and $0.2 million for the years ended December 31, 2022 and 2021, respectively, and are included in other (expense) income, 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, 2022 and 2021, credit card receivables were $1.9 million and $1.2 million, respectively, and cash and cash equivalents held in bank accounts in foreign countries totaled $11.3 million and $22.6 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. |
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. At each of December 31, 2022 and 2021, our total restricted cash was $1.4 million. 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. As of December 31, 2022 and 2021, 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. At each of December 31, 2022 and 2021, the Company held an allowance for doubtful accounts of $1.0 million. |
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 $2.4 million and $2.9 million at December 31, 2022 and 2021, respectively. Included in the December 31, 2022 and 2021 balances were $1.2 million and $1.1 million in other prepaid assets. Also included in the balances at December 31, 2022 and 2021 were $0.9 million and $0.5 million for prepaid deposits, respectively. Also included in the balances at December 31, 2022 and 2021 were $0.3 million and $1.3 million in prepaid inventory, respectively. |
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 2 to 10 years |
Other Assets | Other Assets At December 31, 2022 and 2021, other assets were $8.4 million and $9.2 million, respectively. The December 31, 2022 and 2021 balances include operating lease right of use assets of $4.6 million and $4.7 million, respectively. See Note 5, Leases for more information. Included in the December 31, 2022 and 2021 balances were deposits for building leases in various locations of $1.3 million and $1.9 million, respectively. Also included in the December 31, 2022 and 2021 balances were $2.3 million and $2.4 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, 2022 and 2021 also include $0.2 million of indefinite lived intangible assets relating to the Manapol ® |
Notes Payable | Notes Payable Notes payable were $0.3 million and $0.2 million as of December 31, 2022 and December 31, 2021, 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 8.3% and are collateralized by leasehold improvements and computer hardware and software. At December 31, 2022 and December 31, 2021, the current portion was $0.3 million and $0.2 million, respectively. |
Other Long-Term Liabilities | Other Long-Term Liabilities Other long-term liabilities were $5.0 million at each of December 31, 2022 and 2021. At December 31, 2022 and 2021, we recorded long-term lease liabilities related to operating leases of $4.2 million and $4.3 million, respectively. See Note 5, Leases for more information. As of December 31, 2022 and 2021, government mandated severance accruals in certain international offices amounted to $0.6 million and $0.5 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 $0.2 million at each of December 31, 2022 and 2021 (see Note 9, Employee Benefit Plans |
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 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 delivered 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. Payments are made immediately through credit card upon purchase of the products. 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 by using observable inputs which includes the Company’s standard published price lists. Our sales mix for the years ended December 31, was as follows (in millions, except percentages) : 2022 Percentage 2021 Percentage Consolidated product sales $ 130.2 94.9 % $ 151.0 94.4 % Consolidated pack sales and associate fees 6.2 4.5 % 8.0 5.1 % Consolidated other 0.8 0.6 % 0.8 0.5 % Total consolidated net sales $ 137.2 100.0 % $ 159.8 100.0 % Revenues by reporting segment are presented in Note 15, Segment Information 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, Segment Information 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 $2.5 million and $2.4 million at December 31, 2022 and 2021, respectively. The full $2.4 million balance at December 31, 2021 was amortized to commissions expense for the twelve months ended December 31, 2022. 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, 2022 and 2021, the Company’s deferred revenue was $5.1 million and $4.9 million, respectively. The full $4.9 million balance at December 31, 2021 was recognized as revenue for the twelve months ended December 31, 2022. 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, 2022 and December 31, 2021 was $4.2 million and $4.3 million, as follows: Loyalty program (in thousands) Loyalty deferred revenue as of January 1, 2021 $ 4,487 Loyalty points forfeited or expired (3,987) Loyalty points used (9,809) Loyalty points vested 11,676 Loyalty points unvested 1,925 Loyalty deferred revenue as of December 31, 2021 $ 4,292 Loyalty deferred revenue as of January 1, 2022 $ 4,292 Loyalty points forfeited or expired (3,387) Loyalty points used (10,543) Loyalty points vested 12,773 Loyalty points unvested 1,032 Loyalty deferred revenue as of December 31, 2022 $ 4,167 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. At December 31, 2022 and December 31, 2021, our sales return reserve, which is a component of Accrued expenses, consisted of the following (in thousands) : Sales reserve as of January 1, 2021 $ 71 Provision related to sales made in current period 778 Adjustment related to sales made in prior periods (11) Actual returns or credits related to current period (728) Actual returns or credits related to prior periods (55) Sales reserve as of December 31, 2021 $ 55 Sales reserve as of January 1, 2022 $ 55 Provision related to sales made in current period 783 Adjustment related to sales made in prior periods (4) Actual returns or credits related to current period (730) Actual returns or credits related to prior periods (45) Sales reserve as of December 31, 2022 $ 59 |
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 $3.2 million and $3.5 million for the years ended December 31, 2022 and 2021, respectively. Educational and promotional items 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 ExpensesThe 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 $1.0 million and $1.2 million for the years ended December 31, 2022 and 2021, respectively. 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. See Note 10, Stock Based Compensation. |
Software Development Costs | S oftware 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, 2022 and 2021, the Company capitalized $0.4 million and $0.3 million of qualifying internal payroll costs, respectively. The Company amortizes such costs over the estimated useful life of the software, which is three five |
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 of a long-term-investment nature 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 ® , TruHealth ™ , Advanced Ambrotose ® |
Concentration Risk | Concentration Risk A significant portion of our revenue is derived from our Ambrotose Life ® , TruHealth ™ , Advanced Ambrotose ® , Manapol® Powder and Optimal Support Packets. 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, 2022 and 2021 ( in thousands, except percentages ): 2022 2021 Sales by % of total Sales by % of total Ambrotose Life ® $ 28,734 20.9 % $ 28,776 18.0 % TruHealth ™ 15,730 11.5 % 18,010 11.3 % Advanced Ambrotose ® 9,624 7.0 % 11,158 7.0 % Manapol ® Powder 7,909 5.8 % 13,141 8.2 % Optimal Support Packets 6,916 5.0 % 7,593 4.7 % Total $ 68,913 50.2 % $ 78,678 49.2 % 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, 2022, the Company purchased finished goods from four suppliers that accounted for 60.1% of the year's cost of sales. During the year ended December 31, 2021, the Company purchased finished goods from four suppliers that accounted for 36.4% 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 | 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 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 Topic 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 has reviewed the pronouncement and not found any indication nor do we expect to find that 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, 2022 | |
Revenue from External Customer [Line Items] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The following table provides a reconciliation of cash and 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, 2022 December 31, 2021 Cash and cash equivalents at beginning of period $ 24,185 $ 22,207 Current restricted cash at beginning of period 944 944 Long-term restricted cash at beginning of period 503 4,346 Cash and cash equivalents and restricted cash at beginning of period $ 25,632 $ 27,497 Cash and cash equivalents at end of period $ 13,777 $ 24,185 Current restricted cash at end of period 944 944 Long-term restricted cash at end of period 476 503 Cash and cash equivalents and restricted cash at end of period $ 15,197 $ 25,632 |
Revenue from External Customers by Products and Services [Table Text Block] | ur sales mix for the years ended December 31, was as follows (in millions, except percentages) : 2022 Percentage 2021 Percentage Consolidated product sales $ 130.2 94.9 % $ 151.0 94.4 % Consolidated pack sales and associate fees 6.2 4.5 % 8.0 5.1 % Consolidated other 0.8 0.6 % 0.8 0.5 % Total consolidated net sales $ 137.2 100.0 % $ 159.8 100.0 % |
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 2 to 10 years |
Loyalty deferred revenue | Loyalty program (in thousands) Loyalty deferred revenue as of January 1, 2021 $ 4,487 Loyalty points forfeited or expired (3,987) Loyalty points used (9,809) Loyalty points vested 11,676 Loyalty points unvested 1,925 Loyalty deferred revenue as of December 31, 2021 $ 4,292 Loyalty deferred revenue as of January 1, 2022 $ 4,292 Loyalty points forfeited or expired (3,387) Loyalty points used (10,543) Loyalty points vested 12,773 Loyalty points unvested 1,032 Loyalty deferred revenue as of December 31, 2022 $ 4,167 |
Sales return reserve | December 31, 2022 and December 31, 2021, our sales return reserve, which is a component of Accrued expenses, consisted of the following (in thousands) : Sales reserve as of January 1, 2021 $ 71 Provision related to sales made in current period 778 Adjustment related to sales made in prior periods (11) Actual returns or credits related to current period (728) Actual returns or credits related to prior periods (55) Sales reserve as of December 31, 2021 $ 55 Sales reserve as of January 1, 2022 $ 55 Provision related to sales made in current period 783 Adjustment related to sales made in prior periods (4) Actual returns or credits related to current period (730) Actual returns or credits related to prior periods (45) Sales reserve as of December 31, 2022 $ 59 |
Concentration risk | Revenue from these products were as follows for the years ended December 31, 2022 and 2021 ( in thousands, except percentages ): 2022 2021 Sales by % of total Sales by % of total Ambrotose Life ® $ 28,734 20.9 % $ 28,776 18.0 % TruHealth ™ 15,730 11.5 % 18,010 11.3 % Advanced Ambrotose ® 9,624 7.0 % 11,158 7.0 % Manapol ® Powder 7,909 5.8 % 13,141 8.2 % Optimal Support Packets 6,916 5.0 % 7,593 4.7 % Total $ 68,913 50.2 % $ 78,678 49.2 % |
FAIR VALUE (Tables)
FAIR VALUE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 and 2021. 2022 Level 1 Level 2 Level 3 Total Assets Interest bearing deposits – various banks $ 3,855 $ — $ — $ 3,855 Total assets $ 3,855 $ — $ — $ 3,855 Amounts included in: Cash and cash equivalents $ 3,014 $ — $ — $ 3,014 Restricted cash 680 — — 680 Long-term restricted cash 161 — — 161 Total $ 3,855 $ — $ — $ 3,855 2021 Level 1 Level 2 Level 3 Total Assets Interest bearing deposits – various banks $ 7,838 $ — $ — $ 7,838 Total assets $ 7,838 $ — $ — $ 7,838 Amounts included in: Cash and cash equivalents $ 6,986 $ — $ — $ 6,986 Restricted cash 680 — — 680 Long-term restricted cash 172 — — 172 Total $ 7,838 $ — $ — $ 7,838 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories as of December 31, 2022 and 2021, consisted of the following (in thousands) : 2022 2021 Raw materials $ 3,302 $ 3,271 Finished goods 11,841 9,196 Inventory reserves for obsolescence (417) (447) Total $ 14,726 $ 12,020 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | As of December 31, 2022 and 2021, property and equipment consisted of the following (in thousands) : 2022 2021 Office furniture and equipment $ 2,351 $ 2,648 Computer hardware 3,515 3,755 Computer software 45,623 44,303 Automobiles 110 81 Leasehold improvements 4,079 4,292 ROU Assets- finance leases 182 177 55,860 55,256 Less accumulated depreciation and amortization (52,479) (52,374) Property and equipment, net 3,381 2,882 Construction in progress 378 1,357 Total $ 3,759 $ 4,239 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee, Lease, Description [Line Items] | |
Lease, Cost [Table Text Block] | For the years ended December 31, 2022 and 2021, we incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification 2022 2021 Operating leases Operating lease costs Other operating costs $ 2,137 $ 2,201 Short term lease costs Other operating costs 279 339 Finance leases Amortization of leased assets Depreciation and amortization 89 108 Interest on lease liabilities Interest expense 9 28 Total lease cost $ 2,514 $ 2,676 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | For the twelve months ended December 31, 2022 and 2021, cash paid for amounts included in the measurement of lease liabilities included (in thousands): 2022 2021 Operating cash flows from operating leases $ 2,017 $ 2,164 Financing cash flows from finance leases $ 76 $ 87 |
Schedule Of Maturities Of Operating And Finance Leases Liabilities [Table Text Block] | As of December 31, 2022 future minimum lease payments were as follows (in thousands): December 31, 2022 Maturity of lease liabilities Operating Leases Finance Leases 2022 $ 1,829 $ 69 2023 1,772 43 2024 1,106 22 2025 704 21 2026 650 9 Thereafter 268 — Total future minimum lease payments $ 6,329 $ 164 Imputed interest (576) (15) Present value of minimum lease payments $ 5,753 $ 149 |
LEASES Lease Costs (Tables)
LEASES Lease Costs (Tables) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lease, Cost [Abstract] | ||
Lease, Cost | $ 2,514 | $ 2,676 |
Lease, Cost [Table Text Block] | For the years ended December 31, 2022 and 2021, we incurred the following lease costs related to our operating and finance leases (in thousands): Lease Cost Classification 2022 2021 Operating leases Operating lease costs Other operating costs $ 2,137 $ 2,201 Short term lease costs Other operating costs 279 339 Finance leases Amortization of leased assets Depreciation and amortization 89 108 Interest on lease liabilities Interest expense 9 28 Total lease cost $ 2,514 $ 2,676 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Payables and Accruals [Abstract] | |
Accrued expenses | As of December 31, 2022 and 2021, accrued expenses consisted of the following (in thousands) : 2022 2021 Accrued asset purchases $ 66 $ 96 Accrued compensation 1,737 2,566 Accrued royalties 41 — Accrued sales and other taxes 290 314 Other accrued operating expenses 473 1,528 Customer deposits and sales returns 641 774 Accrued travel expenses related to corporate events 834 879 Accrued shipping and handling costs 528 356 Accrued legal and accounting fees 1,300 1,218 Current portion of operating lease liabilities 1,600 1,493 $ 7,510 $ 9,224 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income before income taxes | The components of the Company’s (loss) income before income taxes are attributable to the following jurisdictions for the years ended December 31 (in thousands) : 2022 2021 United States $ (7,822) $ 6,947 Foreign 7,343 1,945 (Loss) income before income taxes $ (479) $ 8,892 |
Income tax provision | The components of the Company’s income tax provision (benefit) for the years ended December 31 (in thousands) : Current provision (benefit): 2022 2021 Federal $ 241 $ (17) State (37) (161) Foreign 2,581 956 2,785 778 Deferred provision (benefit): Federal 1,200 (1,183) State 81 (131) Foreign (55) (414) 1,226 (1,728) $ 4,011 $ (950) |
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: 2022 2021 Federal statutory income taxes 21.0 % 21.0 % State income taxes, net of federal benefit 20.7 0.8 Difference in foreign and United States tax on foreign operations (24.8) 0.7 Assessments from taxing authorities (278.5) — Effect of changes in valuation allowance (383.7) (45.0) Foreign Derived Intangible Income (FDII) deduction — (8.1) Credits generated 15.2 (0.5) Effect of changes in tax rates 19.4 0.2 Foreign charitable contributions (12.5) 0.7 Return to provision adjustments (43.4) 1.3 Withholding taxes (50.3) 2.5 Changes to uncertain tax positions — (1.8) Expiration of tax attribute (135.5) 17.4 Other 15.0 0.1 (837.4) % (10.7) % |
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: 2022 2021 Deferred Revenue $ 629 $ 409 Inventory 260 235 Accrued expenses 1,240 1,352 Net operating loss (1) 4,956 5,310 Equity Compensation 240 242 Foreign tax credit carryover 3,333 3,436 Lease liability 673 763 Capitalized research & development 218 — Other 968 664 Total deferred tax assets $ 12,517 $ 12,411 Valuation allowance (9,772) (7,934) Total deferred tax assets, net of valuation allowance $ 2,745 $ 4,477 Deferred tax liabilities: Prepaid expenses 41 111 Deferred commissions 418 450 Internally-developed software — 104 Lease assets 624 717 Fixed assets 161 270 Total deferred tax liabilities $ 1,244 $ 1,652 Total net deferred tax asset $ 1,501 $ 2,825 (1) The Company’s net operating loss will expire as follows (dollar amounts in thousands): Jurisdiction Gross NOL Tax Effected NOL Expiration Years Australia $ 120 $ 36 Indefinite Bermuda 73 — N/A Cyprus 1,373 172 2023-2027 Denmark 1 — Indefinite Gibraltar 253 32 Indefinite Mexico 6,136 1,840 2023-2028 Netherlands 5 1 Indefinite Norway 267 59 Indefinite Russia 8 2 Indefinite Singapore 148 25 Indefinite South Africa 631 170 Indefinite Sweden 424 87 Indefinite Switzerland 4,510 415 2023-2029 Taiwan 3,081 616 2023-2032 Ukraine 7 1 Indefinite United Kingdom 275 69 Indefinite United States - Federal 2,835 596 Indefinite United States - State 14,248 835 2023-Indefinite |
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 $ 120 $ 36 Indefinite Bermuda 73 — N/A Cyprus 1,373 172 2023-2027 Denmark 1 — Indefinite Gibraltar 253 32 Indefinite Mexico 6,136 1,840 2023-2028 Netherlands 5 1 Indefinite Norway 267 59 Indefinite Russia 8 2 Indefinite Singapore 148 25 Indefinite South Africa 631 170 Indefinite Sweden 424 87 Indefinite Switzerland 4,510 415 2023-2029 Taiwan 3,081 616 2023-2032 Ukraine 7 1 Indefinite United Kingdom 275 69 Indefinite United States - Federal 2,835 596 Indefinite United States - State 14,248 835 2023-Indefinite |
Summary of valuation allowance | Country 2022 2021 China $ 0.4 $ 0.5 Colombia — 0.5 Cyprus 0.2 0.2 Mexico 1.8 1.9 Norway 0.1 0.1 South Africa 0.2 0.2 Switzerland 0.3 0.5 Taiwan 0.6 0.6 United States 6.2 3.4 Total $ 9.8 $ 7.9 |
Deferred tax assets (liabilities) classified in Consolidated Balance Sheets | |
Unrecognized tax benefits | As of December 31, 2022 and 2021, the Company had no unrecognized tax benefits. |
Tax years subject to examinations | The Company is subject to examination by taxing authorities in the United States and various state and foreign jurisdictions. As of December 31, 2022, 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 2018-2021 Japan 2017-2021 Republic of Korea 2018-2022 Switzerland 2018-2021 United States 2019-2021 |
EMPLOYEE BENEFIT PLANS (Tables)
EMPLOYEE BENEFIT PLANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 Balance, beginning of year $ 213 $ 370 Service cost 40 49 Interest cost — 1 Liability (gain) loss (6) (4) Benefits paid to participants — (171) Foreign currency (27) (32) Balance, end of year $ 220 $ 213 Plan assets: 2022 2021 Fair value, beginning of year $ — $ — Company contributions — 171 Benefits paid to participants — (171) Fair value, end of year $ — $ — Funded status of the Benefit Plan as of December 31 (in thousands) : 2022 2021 Benefit obligation $ (220) $ (213) Fair value of plan assets — — Excess of benefit obligation over fair value of plan assets $ (220) $ (213) Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands) : 2022 2021 Accrued benefit liability $ (220) $ (213) Transition obligation and unrealized gain (89) (137) Net amount recognized in the consolidated balance sheets $ (309) $ (350) Years Ended December 31, Other changes recognized in comprehensive income (in thousands): 2022 2021 Net periodic cost $ 3 $ 7 Current year actuarial gain (6) (4) Amortization of transition obligation (3) (4) Total recognized in other comprehensive loss (9) (8) Total recognized in comprehensive (loss) income $ (6) $ (1) Years Ended December 31, Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain (in thousands) : 2022 2021 Transition obligation $ 45 $ 49 Prior service cost 38 84 Net actuarial gain 6 4 Total recognized in accumulated other comprehensive gain $ 89 $ 137 As of December 31, Amounts included in Accumulated Other Comprehensive Income (Loss) (in thousands) : 2022 2021 Net actuarial gain $ 657 $ 628 Deferred tax provision (257) (247) Net cumulative amount included in accumulated other comprehensive income (loss) $ 400 $ 381 Estimated amounts of amortized transition obligation (in thousands): 2022 2021 Transition obligation $ (3) $ (4) As of December 31, Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands): 2022 2021 Projected benefit obligation $ 220 $ 213 Accumulated benefit obligation 220 213 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: 2022 2021 Discount rate 0.50 % 0.20 % 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 and administrative expenses and all other items noted in the table below (Interest Cost, Amortization of Transition Obligation, Loss and Prior Service Cost) are included within other (expense), net. Pension costs, which are included within Consolidated Statement of Operations are detailed below for the years ended December 31 (in thousands) : 2022 2021 Service cost $ 40 $ 49 Interest cost — 1 Amortization of transition obligation 3 4 Loss (4) (4) Prior service cost (36) (43) Total pension expense $ 3 $ 7 |
Benefits expected to be paid by the Benefit Plan | As of December 31, 2022, benefits expected to be paid by the Benefit Plan for the next ten years is approximately as follows (in thousands) : 2023 $ 18 2024 19 2025 35 2026 38 2027 30 Next five years 187 Total expected benefits to be paid $ 327 |
STOCK BASED COMPENSATION (Table
STOCK BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Changes in stock options outstanding | A summary of changes in stock options outstanding during the year ended December 31, 2022, is as follows: 2022 Number of Weighted Weighted Aggregate Outstanding at beginning of year 244 $ 17.10 Granted 11 22.00 Exercised (11) 16.93 Expired — — Forfeit — — Outstanding at end of year 244 $ 17.35 4.33 $ 418 Options exercisable at year end 234 $ 17.14 4.13 $ 418 |
Assumptions used to calculate compensation expense and fair value of stock options granted | The following assumptions were used to calculate the fair value of stock options granted each year: 2022 2021 Dividend yield: 2.6 - 3.9 % 2.4 % Risk-free interest rate: 2.9 - 3.4 % 0.7 % Expected market price volatility: 63.6 - 64.9 % 56.7 % 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 during the years ended December 31, 2022 and 2021 (in thousands) : 2022 2021 Selling, general and administrative expenses and income from operations before income taxes $ 78 $ 50 Benefit for income taxes (18) (12) Effect on net income $ 60 $ 38 At each of the years ended December 31, 2022 and 2021, the Company had $0.2 million of compensation expense related to the issuance of unrestricted shares. |
Unrecognized compensation cost | As of December 31, 2022, the Company had less than $0.1 million of total unrecognized compensation expense related to stock options currently outstanding, to be recognized in future years, ending December 31, as follows (in thousands): Total gross unrecognized Total tax benefit associated Total net 2023 $ 33 $ 8 $ 25 2024 10 2 8 $ 43 $ 10 $ 33 |
SHAREHOLDERS' EQUITY (Tables)
SHAREHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income (loss) | The after-tax components of accumulated other comprehensive income, are as follows (in thousands) : Foreign Pension Accumulated Balance as of December 31, 2020 $ 4,793 $ 357 $ 5,150 Current-period change before reclassifications (2,832) — (2,832) Amounts reclassified from accumulated other comprehensive income (loss) — 37 37 Income tax provision — (13) (13) Balance as of December 31, 2021 $ 1,961 $ 381 $ 2,342 Current-period change before reclassifications (2,546) — (2,546) Disposition of foreign entity (23) — (23) Amounts reclassified from accumulated other comprehensive income (loss) — 29 29 Income tax provision — (10) (10) Balance as of December 31, 2022 $ (608) $ 400 $ (208) |
Schedule of Net Benefit Costs [Table Text Block] | Service Cost for the Benefit Plan is included within selling and administrative expenses and all other items noted in the table below (Interest Cost, Amortization of Transition Obligation, Loss and Prior Service Cost) are included within other (expense), net. Pension costs, which are included within Consolidated Statement of Operations are detailed below for the years ended December 31 (in thousands) : 2022 2021 Service cost $ 40 $ 49 Interest cost — 1 Amortization of transition obligation 3 4 Loss (4) (4) Prior service cost (36) (43) Total pension expense $ 3 $ 7 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 2022 2021 Americas $ 41.6 30.3 % $ 46.8 29.3 % Asia/Pacific 83.8 61.1 % 97.7 61.1 % EMEA 11.8 8.6 % 15.3 9.6 % Total $ 137.2 100.0 % $ 159.8 100.0 % |
Product and pack information | 2022 2021 Consolidated product sales $ 130.2 $ 151.0 Consolidated pack sales and associate fees 6.2 8.0 Consolidated other 0.8 0.8 Total $ 137.2 $ 159.8 |
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 2022 2021 Americas $ 3.2 $ 3.8 Asia/Pacific 0.6 0.4 EMEA — — Total $ 3.8 $ 4.2 |
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 2022 2021 Americas $ 7.5 $ 5.7 Asia/Pacific 5.4 4.7 EMEA 1.8 1.6 Total $ 14.7 $ 12.0 |
ORGANIZATION AND SUMMARY OF S_4
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Company Organization (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) region | Dec. 31, 2021 USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Number of regions in which company sells products | region | 3 | |
Liability for Uncertainty in Income Taxes, Noncurrent | $ 0.2 | |
Capitalized Contract Cost, Amortization | $ 2.4 | |
Deposits for building leases | 1.3 | 1.9 |
Contract with Customer, Liability, Revenue Recognized | 4.9 | |
Severance Costs | $ 0.6 | $ 0.5 |
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, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Foreign current transaction losses | $ 0.7 | $ 0.2 |
ORGANIZATION AND SUMMARY OF S_6
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash and Cash Equivalents [Line Items] | |||
Cash and cash equivalents | $ 13,777 | $ 24,185 | $ 22,207 |
Credit card receivables | 1,900 | 1,200 | |
Cash and cash equivalents held in bank accounts in foreign countries | 11,300 | 22,600 | |
Restricted Cash, Current | 944 | 944 | 944 |
Restricted Cash, Noncurrent | 476 | 503 | 4,346 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | 15,197 | $ 25,632 | $ 27,497 |
GSX KOREA | |||
Cash and Cash Equivalents [Line Items] | |||
Net assets | $ 21,300 |
ORGANIZATION AND SUMMARY OF S_7
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Restricted Cash (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Restricted cash | $ 1.4 |
ORGANIZATION AND SUMMARY OF S_8
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Allowance for doubtful accounts | $ 1 |
ORGANIZATION AND SUMMARY OF S_9
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Property, Plant, and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 | |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Other assets | $ 8,439 | $ 9,220 | |
Deposits for building leases | 1,300 | 1,900 | |
Deposit assets | 2,300 | 2,400 | |
Indefinite lived intangible assets | 200 | $ 200 | |
Operating Lease, Right-of-Use Asset | 4,600 | 4,700 | |
Prepaid Inventory | $ 300 | $ 1,300 |
ORGANIZATION AND SUMMARY OF _11
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Notes Payable (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Notes payable outstanding | $ 300 | $ 200 |
Current notes payable | $ 263 | $ 205 |
Debt, Weighted Average Interest Rate | 8.30% |
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, 2022 | Dec. 31, 2021 | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Other long-term liabilities | $ 5,026 | $ 5,049 |
Uncertain income tax positions recorded in noncurrent liabilities | 200 | |
Accrued lease restoration costs | 300 | |
Severance Costs | 600 | 500 |
Accrued benefit liability | 220 | 213 |
Operating Lease, Liability, Noncurrent | 4,200 | $ 4,300 |
Foreign Plan [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Accrued benefit liability | $ 200 |
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, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Revenue from External Customer [Line Items] | |||
Sales Revenue Goods Percentage | 100% | 100% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 137,208 | $ 159,762 | |
Contract with Customer, Liability, Revenue Recognized | 4,900 | ||
Deferred revenue | 5,100 | 4,900 | |
Deferred revenue associated with customer loyalty programs | 4,167 | 4,292 | $ 4,487 |
Deferred commissions | $ 2,476 | $ 2,369 | |
Customer returns, days after original sale date | 90 days | ||
Percentage of sale returns | 1.50% | ||
Capitalized Contract Cost, Amortization | $ 2,400 | ||
Consolidated product sales [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue Goods Percentage | 94.90% | 94.40% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 130,200 | $ 151,000 | |
Consolidated pack sales [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue Goods Percentage | 4.50% | 5.10% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 6,200 | $ 8,000 | |
Consolidated other, including freight [Member] | |||
Revenue from External Customer [Line Items] | |||
Sales Revenue Goods Percentage | 0.60% | 0.50% | |
Revenue from Contract with Customer, Excluding Assessed Tax | $ 800 | $ 800 |
ORGANIZATION AND SUMMARY OF _14
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loyalty Program Rollforward (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Movement in Deferred Revenue [Roll Forward] | ||
Loyalty program deferred revenue, beginning balance | $ 4,292 | $ 4,487 |
Loyalty points forfeited or expired | (3,387) | (3,987) |
Loyalty points used | (10,543) | (9,809) |
Loyalty points vested | 12,773 | 11,676 |
Loyalty points unvested | 1,032 | 1,925 |
Loyalty program deferred revenue, ending balance | $ 4,167 | $ 4,292 |
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, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Balance at Beginning of Year | $ 55 | $ 71 |
Provision related to sales made in current period | 783 | 778 |
Adjustment related to sales made in prior periods | (4) | (11) |
Actual returns or credits related to current period | (730) | (728) |
Actual returns or credits related to prior periods | (45) | (55) |
Balance at End of Year | $ 59 | $ 55 |
ORGANIZATION AND SUMMARY OF _16
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Advertising Expense (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advertising expense | $ 3.2 | $ 3.5 |
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, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Research and development expenses | $ 1 | $ 1.2 |
ORGANIZATION AND SUMMARY OF _18
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Stock-based Compensation (Details) | 12 Months Ended | |
Dec. 31, 2022 plan | Apr. 17, 2017 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of active stock based compensation plan | plan | 1 | |
Number of shares authorized (in shares) | shares | 370,000 | |
Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Option exercise price as percentages of closing exercise price | 110% | |
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% | |
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) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Finite-Lived Intangible Assets [Line Items] | |
Costs Incurred, Development Costs | $ 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, 2022 | Dec. 31, 2021 | |
Concentration Risk [Line Items] | ||
Sales by product | $ 68,913 | $ 78,678 |
% of total net sales | 50.20% | 49.20% |
Abrotose Life [Member] [Member] | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 28,734 | $ 28,776 |
% of total net sales | 20.90% | 18% |
Advanced Ambrotose [Member] | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 7,909 | $ 13,141 |
% of total net sales | 5.80% | 8.20% |
TruHealth™ | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 15,730 | $ 18,010 |
% of total net sales | 11.50% | 11.30% |
Manapol® Powder | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 9,624 | $ 11,158 |
% of total net sales | 7% | 7% |
Optimal Support Packets | Product Concentration Risk | ||
Concentration Risk [Line Items] | ||
Sales by product | $ 6,916 | $ 7,593 |
% of total net sales | 5% | 4.70% |
ORGANIZATION AND SUMMARY OF _21
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Prepaid Expense and Other Current Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid expenses and other current assets | $ 2,389 | $ 2,888 |
Other Prepaid Expense, Current | 1,200 | |
Deposits Assets | 900 | 500 |
Prepaid Inventory | $ 300 | $ 1,300 |
FAIR VALUE (Details)
FAIR VALUE (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Restricted cash | $ 1,400 | |
Recurring Basis | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing deposits – various banks | 3,855 | $ 7,838 |
Cash and cash equivalents | 3,014 | 6,986 |
Restricted cash | 680 | 680 |
Long-term restricted cash | 161 | 172 |
Total | 3,855 | 7,838 |
Recurring Basis | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing deposits – various banks | 3,855 | 7,838 |
Cash and cash equivalents | 3,014 | 6,986 |
Restricted cash | 680 | 680 |
Long-term restricted cash | 161 | 172 |
Total | 3,855 | 7,838 |
Recurring Basis | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
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] | ||
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, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 3,302 | $ 3,271 |
Finished goods | 11,841 | 9,196 |
Inventory reserves for obsolescence | (417) | (447) |
Total | $ 14,726 | $ 12,020 |
PROPERTY AND EQUIPMENT (Details
PROPERTY AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | $ 55,860 | $ 55,256 |
Less accumulated depreciation and amortization | (52,479) | (52,374) |
Property and equipment, net | 3,381 | 2,882 |
Construction in progress | 378 | 1,357 |
Total | 3,759 | 4,239 |
Office furniture and equipment | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 2,351 | 2,648 |
Computer hardware | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 3,515 | 3,755 |
Computer software | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 45,623 | 44,303 |
Automobiles | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 110 | 81 |
Leasehold improvements | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | 4,079 | 4,292 |
Assets Held under Capital Leases [Member] | ||
Summary of property and equipment [Abstract] | ||
Property and equipment, gross | $ 182 | $ 177 |
LEASES (Details)
LEASES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee, Lease, Description [Line Items] | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | $ 1,106 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (576) | |
Finance Lease, Liability, Undiscounted Excess Amount | (15) | |
Operating Lease, Liability | 5,753 | |
Finance Lease, Liability | 149 | |
Finance and Operating Lease Liabilities | 5,902 | $ 5,945 |
Finance Lease, Liability, Payments, Due Year Three | 22 | |
Lessee, Operating Lease, Liability, Payments, Due Year Four | 704 | |
Finance Lease, Liability, Payments, Due Year Four | 21 | |
Lessee, Operating Lease, Liability, Payments, Due after Year Five | 268 | |
Finance Lease, Liability, Payments, Due after Year Five | 0 | |
Lessee, Operating Lease, Liability, Payments, Due | 6,329 | |
Finance Lease, Liability, Payment, Due | $ 164 | |
Operating Lease, Weighted Average Remaining Lease Term | 4 years 25 days | 5 years 14 days |
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 1,829 | |
Operating Lease, Payments | 2,017 | $ 2,164 |
Finance Lease, Interest Payment on Liability | $ 76 | $ 87 |
Operating Lease, Weighted Average Discount Rate, Percent | 4.35% | 4.50% |
Finance Lease, Weighted Average Remaining Lease Term | 3 years 3 months | 2 years 1 month 20 days |
Finance Lease, Weighted Average Discount Rate, Percent | 7.43% | 6.57% |
Lessee, Operating Lease, Liability, Payments, Due Year Two | $ 1,772 | |
Operating Lease, Liability, Current | 1,600 | $ 1,493 |
Finance and Operating Lease Assets | 4,831 | 4,805 |
Operating Lease, Right-of-Use Asset | 4,600 | 4,700 |
Operating Lease, Liability, Noncurrent | 4,200 | 4,300 |
Lessee, Operating Lease, Liability, Payments, Due Year Five | 650 | |
Finance Lease, Liability, Payments, Due Year Five | 9 | |
Finance Lease, Liability, Payments, Due Next Twelve Months | 69 | |
Finance Lease, Liability, Payments, Due Year Two | 43 | |
Lease, Cost | 2,514 | 2,676 |
Interest Expense [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Interest Expense | 9 | 28 |
Depreciation and amortization expense [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset, Amortization | 89 | 108 |
Other Operating Income (Expense) [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Cost | 2,137 | 2,201 |
Short-term Lease, Cost | 279 | 339 |
Other Assets [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Right-of-Use Asset | 4,649 | 4,625 |
Property and Equipment, net [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Right-of-Use Asset | 182 | 180 |
Accrued Expenses [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Current | 1,600 | 1,493 |
Current portion of capital leases [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Current | 61 | 68 |
Other longterm liabilities [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Operating Lease, Liability, Noncurrent | 4,153 | 4,318 |
Finance Leases, excluding current portion [Member] [Member] | ||
Lessee, Lease, Description [Line Items] | ||
Finance Lease, Liability, Noncurrent | $ 88 | $ 66 |
CAPITAL LEASE OBLIGATIONS (Deta
CAPITAL LEASE OBLIGATIONS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of future minimum lease payments [Abstract] | ||
Current portion of capital lease obligations | $ 61 | $ 68 |
Long-term portion of capital lease obligations | $ 88 | $ 66 |
Effective interest rate | 5.61% |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Summary of accrued expenses [Abstract] | ||
Accrued asset purchases | $ 66 | $ 96 |
Accrued compensation | 1,737 | 2,566 |
Accrued royalties | 41 | 0 |
Accrued sales and other taxes | 290 | 314 |
Other accrued operating expenses | 473 | 1,528 |
Customer deposits and sales returns | 641 | 774 |
Accrued travel expenses related to corporate events | 834 | 879 |
Accrued shipping and handling costs | 528 | 356 |
Accrued legal and accounting fees | 1,300 | 1,218 |
Operating Lease, Liability, Current | 1,600 | 1,493 |
Total | $ 7,510 | $ 9,224 |
INCOME TAXES - Income Before In
INCOME TAXES - Income Before Income Taxes by Jurisdiction and Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Components of Company's loss before income taxes [Abstract] | ||
United States | $ (7,822) | $ 6,947 |
Foreign | 7,343 | 1,945 |
(Loss) income before income taxes | (479) | 8,892 |
Current provision (benefit): | ||
Federal | 241 | (17) |
State | (37) | (161) |
Foreign | 2,581 | 956 |
Total | 2,785 | 778 |
Deferred provision (benefit): | ||
Federal | 1,200 | (1,183) |
State | 81 | (131) |
Foreign | (55) | (414) |
Total | 1,226 | (1,728) |
Total | $ 4,011 | $ (950) |
INCOME TAXES - Effective Income
INCOME TAXES - Effective Income Tax Rate Reconcilliation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of effective income tax rate and United States federal statutory income tax rate [Abstract] | ||
Federal statutory income taxes | 21% | 21% |
State income taxes, net of federal benefit | 20.70% | 0.80% |
Difference in foreign and United States tax on foreign operations | (24.80%) | 0.70% |
Effective Income Tax Rate Reconciliation, Tax Settlement, Percent | (278.50%) | 0% |
Effect of changes in valuation allowance | (383.70%) | (45.00%) |
Effective Income Tax Rate Reconciliation Foreign Derived Intangible Income Deduction, Percent | 0% | (8.10%) |
Effective Income Tax Rate Reconciliation, Section 250 Deduction, Percent | 15.20% | (0.50%) |
Effect of changes in tax rates | 19.40% | 0.20% |
Foreign charitable contributions | (12.50%) | 0.70% |
Return to provision adjustments | (43.40%) | 1.30% |
Effective Income Tax Rate Reconciliation,Withholding taxes, Percent | (50.30%) | 2.50% |
Effective Income Tax Rate Reconciliation, Changes to Uncertain Tax Positions | 0% | (1.80%) |
Changes to uncertain tax positions | 135.50% | (17.40%) |
Other | 15% | 0.10% |
Total | (837.40%) | (10.70%) |
INCOME TAXES - Summary of Defer
INCOME TAXES - Summary of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Deferred Revenue | $ 629 | $ 409 |
Inventory | 260 | 235 |
Accrued expenses | 1,240 | 1,352 |
Net operating loss | 4,956 | 5,310 |
Lease liability | 240 | 242 |
Other | 3,333 | 3,436 |
Other | 968 | 664 |
Total deferred tax assets | 12,517 | 12,411 |
Valuation allowance | (9,772) | (7,934) |
Total deferred tax assets, net of valuation allowance | 2,745 | 4,477 |
Deferred tax liabilities: | ||
Prepaid expenses | 41 | 111 |
Deferred commissions | 418 | 450 |
Internally-developed software | 0 | 104 |
Deferred Tax Liabilities, Leasing Arrangements | 624 | 717 |
Lease assets | 161 | 270 |
Deferred Tax Liabilities, Gross | 1,244 | 1,652 |
Total net deferred tax asset | 1,501 | 2,825 |
Operating Loss Carryforwards [Line Items] | ||
Deferred Tax Asset, Lease Liability | 673 | 763 |
Deferred Tax Liabilities, Deferred Expense, Capitalized Research and Development Costs | 218 | 0 |
Deferred Tax Assets, Valuation Allowance Foreign Tax Carryforwards | 3,300 | |
AUSTRALIA | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 120 | |
Tax Effected NOL | 36 | |
BERMUDA | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 73 | |
Tax Effected NOL | 0 | |
CHINA | ||
Deferred tax assets: | ||
Valuation allowance | (400) | (500) |
Gibraltar | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 253 | |
Tax Effected NOL | 32 | |
Mexico | ||
Deferred tax assets: | ||
Valuation allowance | (1,800) | (1,900) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 6,136 | |
Tax Effected NOL | 1,840 | |
Norway | ||
Deferred tax assets: | ||
Valuation allowance | (100) | (100) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 267 | |
Tax Effected NOL | 59 | |
Russia | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 8 | |
Tax Effected NOL | 2 | |
Singapore | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 148 | |
Tax Effected NOL | 25 | |
Norway | ||
Deferred tax assets: | ||
Valuation allowance | (200) | (200) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 631 | |
Tax Effected NOL | 170 | |
Sweden | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 424 | |
Tax Effected NOL | 87 | |
Switzerland | ||
Deferred tax assets: | ||
Valuation allowance | (300) | (500) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 4,510 | |
Tax Effected NOL | 415 | |
Taiwan | ||
Deferred tax assets: | ||
Valuation allowance | (600) | (600) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 3,081 | |
Tax Effected NOL | 616 | |
Taiwan | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 7 | |
Tax Effected NOL | 1 | |
United Kingdom | ||
Deferred tax assets: | ||
Valuation allowance | (6,200) | (3,400) |
Operating Loss Carryforwards [Line Items] | ||
Tax Effected NOL | 2,835 | 596 |
United States - State | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 275 | |
Tax Effected NOL | 69 | |
CYPRUS | ||
Deferred tax assets: | ||
Valuation allowance | (200) | (200) |
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 1,373 | |
Tax Effected NOL | 172 | |
COLOMBIA | ||
Deferred tax assets: | ||
Valuation allowance | 0 | (500) |
DENMARK | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 1 | |
Tax Effected NOL | 0 | |
NETHERLANDS | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | 5 | |
Tax Effected NOL | 1 | |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Gross NOL | $ 14,248 | $ 835 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Tax Credit Carryforward [Line Items] | ||
Effective Income Tax Rate Reconciliation, Percent | (837.40%) | (10.70%) |
Valuation allowance | $ 9,772 | $ 7,934 |
Other | $ 3,333 | $ 3,436 |
INCOME TAXES - Valuation Allowa
INCOME TAXES - Valuation Allowance(Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 9,772 | $ 7,934 |
Other | 3,333 | 3,436 |
Deferred Tax Assets, Valuation Allowance Foreign Tax Carryforwards | 3,300 | |
CHINA | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 400 | 500 |
Mexico | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 1,800 | 1,900 |
Norway | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 100 | 100 |
Norway | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 200 | 200 |
Switzerland | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 300 | 500 |
Taiwan | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 600 | 600 |
United Kingdom | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 6,200 | 3,400 |
COLOMBIA | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 0 | 500 |
CYPRUS | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 200 | $ 200 |
INCOME TAXES - Deferred Income
INCOME TAXES - Deferred Income Tax Classification (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Total net deferred tax asset | $ 1,501 | $ 2,825 |
Other | 3,333 | 3,436 |
Valuation allowance | $ 9,772 | $ 7,934 |
TRANSACTIONS WITH RELATED PAR_2
TRANSACTIONS WITH RELATED PARTIES AND AFFILIATES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transaction [Line Items] | ||
Commissions and incentives | $ 55,483 | $ 63,784 |
DirectorMemberAndFamily | ||
Related Party Transaction [Line Items] | ||
Payment of employment related commissions and incentives | 1,700 | 1,800 |
Member of the Board of Directors | ||
Related Party Transaction [Line Items] | ||
Payment of employment related commissions and incentives | 200 | 200 |
ImmediateFamilyMemberofDirectorber | ||
Related Party Transaction [Line Items] | ||
Payment of employment related commissions and incentives | 1,500 | 1,600 |
Directors, Officers and Family Members on M5M Foundation Board | ||
Related Party Transaction [Line Items] | ||
Cash donations | 600 | 600 |
Member of the Board of Directors and Family | ||
Related Party Transaction [Line Items] | ||
Commissions and incentives | 100 | 100 |
FamilyMemberOfManagementOrPrincipalOwner | ||
Related Party Transaction [Line Items] | ||
Commissions and incentives | 100 | 100 |
Son of the Chairman of the Board | ||
Related Party Transaction [Line Items] | ||
Officers' compensation | $ 477 | $ 375 |
EMPLOYEE BENEFIT PLANS - Narrat
EMPLOYEE BENEFIT PLANS - Narrative (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Retirement Benefits [Abstract] | |
Service period, minimum | 3 months |
Employees eligible age under plan, minimum | 21 years |
Maximum annual contribution per employee | 100% |
Vesting period of employer's matching contributions | 5 years |
Contributions by employer | $ 300 |
Expected employer's contributions in 2018 | $ 18 |
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, 2022 | Dec. 31, 2021 | |
Projected benefit obligation: | ||
Balance, beginning of year | $ 213 | $ 370 |
Service cost | 40 | 49 |
Interest cost | 0 | 1 |
Liability (gain) loss | (6) | (4) |
Benefits paid to participants | 0 | (171) |
Foreign currency | (27) | (32) |
Balance, end of year | 220 | 213 |
Plan assets: | ||
Fair value, beginning of year | 0 | 0 |
Company contributions | 0 | 171 |
Benefits paid to participants | 0 | (171) |
Fair value, end of year | $ 0 | $ 0 |
EMPLOYEE BENEFIT PLANS - Funded
EMPLOYEE BENEFIT PLANS - Funded Status (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Retirement Benefits [Abstract] | |||
Benefit obligation | $ (220) | $ (213) | $ (370) |
Fair value of plan assets | 0 | 0 | |
Excess of benefit obligation over fair value of plan assets | $ (220) | $ (213) |
EMPLOYEE BENEFIT PLANS - Amount
EMPLOYEE BENEFIT PLANS - Amounts Recognized in Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Accrued benefit liability | $ (220) | $ (213) | |
Transition obligation and unrealized gain | (89) | (137) | |
Net amount recognized in the consolidated balance sheets | (309) | (350) | |
Defined Benefit Plan, Accumulated Other Comprehensive Income (Loss), Gain (Loss), before Tax | 657 | 628 | |
Deferred Tax Assets, Tax Deferred Expense | (257) | (247) | |
Stockholders' Equity Attributable to Parent | $ 14,176 | $ 24,412 | $ 25,972 |
EMPLOYEE BENEFIT PLANS - Other
EMPLOYEE BENEFIT PLANS - Other Changes Recognized in Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Current year actuarial gain | $ (6) | $ (4) |
Amortization of transition obligation | (3) | (4) |
Total recognized in other comprehensive loss | (9) | (8) |
Total recognized in comprehensive (loss) income | (6) | (1) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | $ 3 | $ 7 |
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, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Transition obligation | $ 45 | $ 49 |
Prior service cost | 38 | 84 |
Net actuarial gain | 6 | 4 |
Total recognized in accumulated other comprehensive gain | $ 89 | $ 137 |
EMPLOYEE BENEFIT PLANS - Estima
EMPLOYEE BENEFIT PLANS - Estimate Amounts of Amortized Transition Obligation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Transition obligation | $ (3) | $ (4) |
EMPLOYEE BENEFIT PLANS - Aggreg
EMPLOYEE BENEFIT PLANS - Aggregate Benefit Plan Information and Accumulated Benefit Plan Obligation Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Projected benefit obligation | $ 220 | $ 213 |
Accumulated benefit obligation | 220 | 213 |
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, 2022 | Dec. 31, 2021 |
Retirement Benefits [Abstract] | ||
Discount rate | 0.50% | 0.20% |
Rate of increase in compensation levels | 0% | 0% |
EMPLOYEE BENEFIT PLANS - Compon
EMPLOYEE BENEFIT PLANS - Components of Net Period Benefit Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 40 | $ 49 |
Interest cost | 0 | 1 |
Amortization of transition obligation | 3 | 4 |
Defined Benefit Plan, Amortization of Gain (Loss) | (4) | (4) |
Prior service cost | (36) | (43) |
Total pension expense | $ 3 | $ 7 |
EMPLOYEE BENEFIT PLANS - Esti_2
EMPLOYEE BENEFIT PLANS - Estimated Benefits and Contributions (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Retirement Benefits [Abstract] | |
2018 | $ 18 |
2019 | 19 |
2020 | 35 |
2021 | 38 |
2022 | 30 |
Next five years | 187 |
Total expected benefits to be paid | $ 327 |
STOCK BASED COMPENSATION (Detai
STOCK BASED COMPENSATION (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) plan $ / shares shares | Dec. 31, 2021 USD ($) $ / shares shares | Apr. 17, 2017 shares | |
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 | 240% | ||
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 | 126,276 | ||
New shares issued (in shares) | shares | 11,334 | ||
Intrinsic value of exercised options | $ 100 | $ 1,200 | |
Non-vested shares (in shares) | shares | 10,003 | 8,336 | |
Number of Options [Roll Forward] | |||
Outstanding at beginning of year (in shares) | shares | 244,000 | ||
Granted (in shares) | shares | 11,000 | ||
Exercised (in shares) | shares | (11,000) | ||
Forfeited or expired (in shares) | shares | 0 | ||
Outstanding at end of year (in shares) | shares | 244,000 | 244,000 | |
Options exercisable at year end (in shares) | shares | 234,000 | ||
Weighted average exercise price [Roll Forward] | |||
Outstanding at beginning of year (in dollars per share) | $ / shares | $ 17.10 | ||
Granted (in dollars per share) | $ / shares | 22 | ||
Exercised (in dollars per share) | $ / shares | 16.93 | ||
Outstanding at end of year (in dollars per share) | $ / shares | 17.35 | $ 17.10 | |
Options exercisable at year end (in dollars per share) | $ / shares | $ 17.14 | ||
Weighted average remaining contractual life (in years) [Abstract] | |||
Outstanding at end of year | 4 years 3 months 29 days | ||
Options exercisable at year end | 4 years 1 month 17 days | ||
Aggregate intrinsic value [Abstract] | |||
Outstanding at end of year | $ 418 | ||
Options exercisable at year end | $ 418 | ||
Assumptions used to calculate compensation expense and fair value of stock options granted [Abstract] | |||
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 | $ 7.21 | $ 6.77 | |
Total fair value of shares vested | $ 100 | $ 100 | |
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 | 78 | 50 | |
Benefit for income taxes | (18) | (12) | |
Effect on net income | 60 | $ 38 | |
Unrecognized compensation expense [Abstract] | |||
Total gross unrecognized compensation expense in 2018 | 33 | ||
Total gross unrecognized compensation expense in 2019 | 10 | ||
Tax benefit associated with unrecognized compensation expense due current | 8 | ||
Tax benefit associated with unrecognized compensation expense in 2018 | 2 | ||
Total tax benefit associated with unrecognized compensation expense | 10 | ||
Total net unrecognized compensation expense in 2018 | 25 | ||
Total net unrecognized compensation expense in 2019 | 8 | ||
Total Gross unrecognized compensation expense due | 43 | ||
Total net unrecognized compensation expense | $ 33 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 70% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 5,670% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures in Period | shares | 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Expirations in Period, Weighted Average Exercise Price | $ / shares | $ 0 | ||
Share-based Compensation Arrangements by Share-based Payment Award, Options, Forfeitures in Period, Weighted Average Exercise Price | $ / shares | $ 0 | ||
Risk-free interest rate, minimum | 2.90% | ||
Risk-free interest rate, maximum | 3.40% | ||
Expected market price volatility, minimum | 63.60% | ||
Expected market price volatility, maximum | 64.90% | ||
Share-based Payment Arrangement, Nonvested Award, Option, Cost Not yet Recognized, Amount | $ 100 | ||
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of stock options | 2 years | ||
Unrecognized compensation expense [Abstract] | |||
Dividend yield | 2.60 | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period of stock options | 3 years | ||
Unrecognized compensation expense [Abstract] | |||
Dividend yield | 3.90 | ||
Board of Directors | |||
Number of Options [Roll Forward] | |||
Granted (in shares) | shares | 11,807 | ||
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 (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Payment of royalties | $ 0.1 | $ 0.1 |
Royalty and Consulting Agreements [Abstract] | ||
Payment of royalties | 0.1 | $ 0.1 |
Payable amount on termination of employment relationships with executives | 0.6 | |
Natural Aloe de Costa Rica, S.A. | ||
Purchase Commitment, Excluding Long-term Commitment [Line Items] | ||
Purchase commitment aggregate amount | $ 7.9 |
SHAREHOLDERS' EQUITY (Details)
SHAREHOLDERS' EQUITY (Details) - USD ($) | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2021 | 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 repurchase program, authorized amount | $ 20,000,000 | ||||||
Stock repurchased since inception | $ 1,982,000 | $ 5,052,000 | |||||
Treasury stock repurchased (in shares) | 99,293 | 200,115 | |||||
Treasury stock repurchased, average cost per share (USD per share) | $ 21.87 | $ 26.76 | |||||
Shares issued due to exercise of stock options (in shares) | 11,334 | ||||||
Shares issued as compensation for the work (in shares) | 6,072 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | $ 24,412,000 | $ 25,972,000 | |||||
Ending balance | 14,176,000 | 24,412,000 | |||||
Dividends | 1,500,000 | 4,300,000 | |||||
Payments for Repurchase of Common Stock | 1,982,000 | $ 5,052,000 | |||||
June 2004 Plan [Member] | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Number of common shares authorized to be repurchased (in shares) | 131,756 | ||||||
Stock repurchase program, authorized amount | $ 1,300,000 | ||||||
August 2006 Plan | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Stock repurchase program, remaining authorized repurchase amount | 12,600,000 | $ 500,000 | $ 500,000 | ||||
Stock repurchased since inception | 1,500,000 | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Stock repurchase program, remaining authorized repurchase amount | 12,600,000 | $ 500,000 | $ 500,000 | ||||
May 28 2021 Tender Offer | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Treasury stock repurchased (in shares) | 171,433 | ||||||
Foreign Currency Translation | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 1,961,000 | $ 4,793,000 | |||||
Current-period change before reclassifications | (2,546,000) | (2,832,000) | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (23,000) | ||||||
Disposition of foreign entity | 0 | 0 | |||||
Income tax provision | 0 | 0 | |||||
Ending balance | (608,000) | 1,961,000 | |||||
Pension Postretirement Benefit Obligation | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 381,000 | 357,000 | |||||
Current-period change before reclassifications | 0 | 0 | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | 0 | ||||||
Disposition of foreign entity | 29,000 | 37,000 | |||||
Income tax provision | (10,000) | (13,000) | |||||
Ending balance | 400,000 | 381,000 | |||||
Accumulated other comprehensive income (loss) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning balance | 2,342,000 | 5,150,000 | |||||
Current-period change before reclassifications | (2,546,000) | (2,832,000) | |||||
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Gain (Loss), before Reclassification and Tax | (23,000) | ||||||
Disposition of foreign entity | 29,000 | 37,000 | |||||
Income tax provision | (10,000) | (13,000) | |||||
Ending balance | $ (208,000) | $ 2,342,000 |
EARNINGS PER SHARE EARNINGS PER
EARNINGS PER SHARE EARNINGS PER SHARE (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Average Share Price | $ 27.36 | |
Basic (in shares) | 1,913,000 | 1,990,000 |
Diluted (in shares) | 1,913,000 | 2,088,000 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 100,000 | |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 100,000 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) country region segment | Dec. 31, 2021 USD ($) | |
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 | 24 | |
Number of countries in which company operates facilities | country | 11 | |
Number of countries in which company sells products | country | 25 | |
Number of regions in which company sells products | region | 3 | |
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 137,208 | $ 159,762 |
Percent of total revenue | 100% | 100% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 3,759 | $ 4,239 |
Inventory, by Country [Abstract] | ||
Inventories, net | 14,726 | 12,020 |
Consolidated product sales | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 130,200 | $ 151,000 |
Percent of total revenue | 94.90% | 94.40% |
Consolidated pack sales and associate fees | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 6,200 | $ 8,000 |
Percent of total revenue | 4.50% | 5.10% |
Consolidated other | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 800 | $ 800 |
Percent of total revenue | 0.60% | 0.50% |
Reportable Geographical Components | Americas | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 41,600 | $ 46,800 |
Percent of total revenue | 30.30% | 29.30% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 3,200 | $ 3,800 |
Inventory, by Country [Abstract] | ||
Inventories, net | 7,500 | 5,700 |
Reportable Geographical Components | Asia/Pacific | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 83,800 | $ 97,700 |
Percent of total revenue | 61.10% | 61.10% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 600 | $ 400 |
Inventory, by Country [Abstract] | ||
Inventories, net | 5,400 | 4,700 |
Reportable Geographical Components | EMEA | ||
Revenue from External Customer [Line Items] | ||
Revenue from Contract with Customer, Excluding Assessed Tax | $ 11,800 | $ 15,300 |
Percent of total revenue | 8.60% | 9.60% |
Long-lived assets by country of domicile [Abstract] | ||
Long-lived assets | $ 0 | $ 0 |
Inventory, by Country [Abstract] | ||
Inventories, net | $ 1,800 | $ 1,600 |
SCHEDULE II - VALUATION AND Q_2
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for doubtful accounts | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | $ 987 | $ 817 |
Additions Charged to Costs and Expenses | (26) | 246 |
Additions Charged to other Accounts | 0 | 0 |
Deductions | 12 | (76) |
Balance at End of Year | 973 | 987 |
Allowance for obsolete inventories | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | 447 | 471 |
Additions Charged to Costs and Expenses | 543 | 638 |
Additions Charged to other Accounts | 0 | 0 |
Deductions | (573) | (662) |
Balance at End of Year | 417 | 447 |
Valuation allowance for deferred tax assets | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | 7,934 | 11,933 |
Additions Charged to Costs and Expenses | 1,838 | (3,999) |
Additions Charged to other Accounts | 0 | 0 |
Deductions | 0 | 0 |
Balance at End of Year | 9,772 | 7,934 |
Reserve for sales returns | ||
Schedule of Valuation and Qualifying Accounts [Roll Forward] | ||
Balance at Beginning of Year | 55 | 71 |
Additions Charged to Costs and Expenses | 779 | 767 |
Additions Charged to other Accounts | 0 | 0 |
Deductions | (775) | (783) |
Balance at End of Year | $ 59 | $ 55 |