Reliv' International (RELV) 10-Q 13 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 02, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	RELIV INTERNATIONAL INC
Entity Central Index Key	768,710
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	RELV
Entity Common Stock, Shares Outstanding		12,919,110

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets:
Cash and cash equivalents	$ 3,893,496	$ 3,262,263
Accounts receivable, less allowances of $30,600 in 2016 and $30,200 in 2015	20,455	89,376
Accounts and note due from employees and distributors	137,324	134,668
Inventories
Finished goods	3,101,228	3,657,612
Raw materials	1,598,112	1,382,635
Sales aids and promotional materials	164,799	132,475
Total inventories	4,864,139	5,172,722
Refundable income taxes	526,968	522,035
Prepaid expenses and other current assets	1,159,934	552,645
Deferred income taxes	66,000	66,000
Total current assets	10,668,316	9,799,709
Other assets	266,765	285,153
Cash surrender value of life insurance	2,877,475	2,848,232
Note receivable due from distributor	1,603,484	1,630,164
Deferred income taxes	594,000	623,000
Intangible assets, net	2,588,116	2,655,647
Property, plant and equipment:
Land and land improvements	905,190	905,190
Building	9,953,540	9,951,555
Machinery & equipment	4,345,428	4,344,403
Office equipment	1,225,048	1,223,921
Computer equipment & software	2,350,327	2,341,149
Property, plant, and equipment,Gross	18,779,533	18,766,218
Less: Accumulated depreciation	12,533,092	12,347,091
Net property, plant and equipment	6,246,441	6,419,127
Total assets	24,844,597	24,261,032
Accounts payable and accrued expenses:
Trade accounts payable and other accrued expenses	2,802,741	1,859,716
Distributors' commissions payable	1,489,571	1,567,883
Sales taxes payable	218,958	232,996
Payroll and payroll taxes payable	317,467	277,157
Total accounts payable and accrued expenses	4,828,737	3,937,752
Current portion of long-term debt	749,850	781,505
Total current liabilities	5,578,587	4,719,257
Noncurrent liabilities:
Long-term debt, less current portion	3,041,230	3,159,575
Deferred income taxes	53,000	94,000
Other noncurrent liabilities	389,354	405,705
Total noncurrent liabilities	3,483,584	3,659,280
Stockholders' equity:
Preferred stock, par value $.001 per share; 3,000,000 shares authorized; -0- shares issued and outstanding in 2016 and 2015	0	0
Common stock, par value $.001 per share; 30,000,000 authorized; 14,773,083 shares issued and 12,919,110 shares outstanding as of 3/31/2016; 14,773,083 shares issued and 12,919,110 shares outstanding as of 12/31/2015	14,773	14,773
Additional paid-in capital	30,517,959	30,499,817
Accumulated deficit	(8,702,922)	(8,659,262)
Accumulated other comprehensive loss:
Foreign currency translation adjustment	(708,824)	(634,273)
Treasury stock	(5,338,560)	(5,338,560)
Total stockholders' equity	15,782,426	15,882,495
Total liabilities and stockholders' equity	$ 24,844,597	$ 24,261,032

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Allowance for accounts receivable	$ 30,600	$ 30,200
Preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized	3,000,000	3,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized	30,000,000	30,000,000
Common stock, shares, issued	14,773,083	14,773,083
Common stock, shares, outstanding	12,919,110	12,919,110

Condensed Consolidated Statemen

Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Product sales	$ 12,042,561	$ 13,708,123
Handling & freight income	993,889	1,126,240
Net sales	13,036,450	14,834,363
Costs and expenses:
Cost of products sold	2,984,104	2,994,949
Distributor royalties and commissions	4,624,375	5,280,747
Selling, general and administrative	5,609,268	6,129,949
Total costs and expenses	13,217,747	14,405,645
Income (loss) from operations	(181,297)	428,718
Other income (expense):
Interest income	27,357	30,382
Interest expense	(26,401)	(23,939)
Other income / (expense)	113,681	(170,714)
Income (loss) before income taxes	(66,660)	264,447
Provision (benefit) for income taxes	(23,000)	148,000
Net income (loss)	(43,660)	116,447
Other comprehensive income (loss):
Foreign currency translation adjustment	(74,551)	(23,387)
Comprehensive income (loss)	$ (118,211)	$ 93,060
Earnings (loss) per common share - Basic (in dollars per share)	$ 0	$ 0.01
Weighted average shares (in shares)	12,919,000	12,819,000
Earnings (loss) per common share - Diluted (in dollars per share)	$ 0	$ 0.01
Weighted average shares (in shares)	12,919,000	12,822,000
Cash dividends declared per common share (in dollars per share)	$ 0	$ 0

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Operating activities:
Net income (loss)	$ (43,660)	$ 116,447
Adjustments to reconcile net income (loss) to net cash provided by in operating activities:
Depreciation and amortization	249,892	255,382
Stock-based compensation	18,142	9,583
Non-cash life insurance policy accretion	(29,244)	(25,072)
Deferred income taxes	(20,000)	18,000
Foreign currency transaction (gain)/loss	(100,053)	145,311
(Increase) decrease in accounts receivable and accounts due from employees and distributors	67,571	92,150
(Increase) decrease in inventories	316,870	(127,096)
(Increase) decrease in refundable income taxes	(4,933)	130,978
(Increase) decrease in prepaid expenses and other current assets	(605,781)	(308,882)
(Increase) decrease in other assets	18,697	(10,633)
Increase (decrease) in accounts payable & accrued expenses and other noncurrent liabilities	856,514	849,385
Net cash provided by operating activities	724,015	1,145,553
Investing activities:
Proceeds from the sale of property, plant and equipment	0	5,657
Purchase of property, plant and equipment	(9,905)	(127,561)
Payments received on distributor note receivable	25,131	23,671
Net cash provided by (used in) investing activities	15,226	(98,233)
Financing activities:
Principal payments on long-term borrowings	(143,618)	(124,356)
Net cash used in financing activities	(143,618)	(124,356)
Effect of exchange rate changes on cash and cash equivalents	35,610	(66,533)
Increase (decrease) in cash and cash equivalents	631,233	856,431
Cash and cash equivalents at beginning of period	3,262,263	4,989,392
Cash and cash equivalents at end of period	$ 3,893,496	$ 5,845,823

Accounting Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	Note 1-- Accounting Policies Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the instructions to Form 10-Q and reflect all adjustments (which primarily include normal recurring accruals) which management believes are necessary to present fairly the financial position, results of operations and cash flows. These statements, however, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. Interim results may not necessarily be indicative of results that may be expected for any other interim period or for the year as a whole. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the annual report on Form 10-K for the year ended December 31, 2015, filed March 24, 2016 with the Securities and Exchange Commission.

Basic and Diluted Earnings (Los

Basic and Diluted Earnings (Loss) per Share	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Earnings Per Share [Text Block]	Note 2-- Basic and Diluted Earnings (Loss) per Share Basic earnings (loss) per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed using the weighted average number of common shares and potential dilutive common shares that were outstanding during the period. Potential dilutive common shares consist of outstanding stock options, outstanding stock warrants, and convertible preferred stock. Three months ended March 31 2016 2015 Numerator: Net income (loss) $ (43,660) $ 116,447 Denominator: Denominator for basic earnings (loss) per share--weighted average shares 12,919,000 12,819,000 Dilutive effect of employee stock options and other warrants - 3,000 Denominator for diluted earnings (loss) per share--adjusted weighted average shares 12,919,000 12,822,000 Basic earnings (loss) per share $ (0.00) $ 0.01 Diluted earnings (loss) per share $ (0.00) $ 0.01 Option and warrants to purchase 1,870,585 1,622,525

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value Disclosures [Text Block]	Note 3-- Fair Value of Financial Instruments Fair value can be measured using valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels: Level 1: Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets or similar assets or liabilities in markets that are not active. Level 3: Unobservable inputs that reflect the reporting entity's own assumptions. The carrying amount and fair value of the Company's financial instruments are approximately as follows: Description Carrying Value Fair Value Level 1 Level 2 Level 3 March 31, 2016 Long-term debt $ 3,791,080 $ 3,791,080 - $ 3,791,080 - Note receivable 1,707,852 1,959,000 - 1,959,000 - Marketable securities 257,000 257,000 $ 257,000 - - December 31, 2015 Long-term debt $ 3,941,080 $ 3,941,080 - $ 3,941,080 - Note receivable 1,732,982 1,942,000 - 1,942,000 - Marketable securities 275,000 275,000 $ 275,000 - - Long-term debt : The fair value of the Company's term and revolver loans approximate carrying value as these loans were incurred within the past twelve months and have variable market-based interest rates which reset every thirty days. The fair value of the Company's obligation for the acquisition of its lunasin technology license approximates carrying value as this obligation is a zero-interest based obligation discounted utilizing an interest rate factor comparable to the Company's market-based interest rate for its term and revolver loans. The fair value of the Company's notes payable obligations approximates carrying value as these obligations were incurred within the past twelve months and have variable market-based interest rates which reset every ninety days. Note receivable : The Company's note receivable is a variable rate residential mortgage-based financial instrument. An average of published interest rate quotes for a fifteen-year residential jumbo mortgage, a comparable financial instrument, was used to estimate fair value of this note receivable under a discounted cash flow model. Marketable securities : The assets (trading securities) of the Company's Supplemental Executive Retirement Plan are recorded at fair value on a recurring basis, and are presented within Other Assets in the consolidated balance sheets. The carrying value of other financial instruments, including cash, accounts receivable and accounts payable, and accrued liabilities approximate fair value due to their short maturities or variable-rate nature of their respective balances.

Taxes

Taxes	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 4-- Taxes 34 Three months ended March 31 2016 2015 Income taxes (benefit) at U.S. statutory rate $ (23,000) $ 90,000 State income taxes, net of federal benefit 14,000 14,000 Higher / (lower) effective taxes on earnings/losses in certain foreign countries (11,000) 11,000 Foreign corporate income taxes 17,000 27,000 Other, net (20,000) 6,000 $ (23,000) $ 148,000 One of the Company's foreign subsidiaries is presently under local country audit for alleged deficiencies (totaling approximately $ 800,000 20 185,000 151,000 142,000

Recent Accounting Standards Pen

Recent Accounting Standards Pending Adoption	3 Months Ended
	Mar. 31, 2016
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Standards Pending Adoption [Text Block]	Note 5-- Recent Accounting Standards Pending Adoption In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2014-09, Revenue from Contracts with Customers In November 2015, the FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842) In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting

Subsequent Event

Subsequent Event	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	Note 6-- Subsequent Event In May 2016, the Company implemented an employee headcount cost reduction program resulting in the reduction of approximately 9 275,000 165,000 1,100,000

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the instructions to Form 10-Q and reflect all adjustments (which primarily include normal recurring accruals) which management believes are necessary to present fairly the financial position, results of operations and cash flows. These statements, however, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. Interim results may not necessarily be indicative of results that may be expected for any other interim period or for the year as a whole. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the annual report on Form 10-K for the year ended December 31, 2015, filed March 24, 2016 with the Securities and Exchange Commission.

Basic and Diluted Earnings (L13

Basic and Diluted Earnings (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Earnings Per Share [Abstract]
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]	The following table sets forth the computation of basic and diluted earnings (loss) per share: Three months ended March 31 2016 2015 Numerator: Net income (loss) $ (43,660) $ 116,447 Denominator: Denominator for basic earnings (loss) per share--weighted average shares 12,919,000 12,819,000 Dilutive effect of employee stock options and other warrants - 3,000 Denominator for diluted earnings (loss) per share--adjusted weighted average shares 12,919,000 12,822,000 Basic earnings (loss) per share $ (0.00) $ 0.01 Diluted earnings (loss) per share $ (0.00) $ 0.01

Fair Value of Financial Instr14

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2016
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping [Table Text Block]	The carrying amount and fair value of the Company's financial instruments are approximately as follows: Description Carrying Value Fair Value Level 1 Level 2 Level 3 March 31, 2016 Long-term debt $ 3,791,080 $ 3,791,080 - $ 3,791,080 - Note receivable 1,707,852 1,959,000 - 1,959,000 - Marketable securities 257,000 257,000 $ 257,000 - - December 31, 2015 Long-term debt $ 3,941,080 $ 3,941,080 - $ 3,941,080 - Note receivable 1,732,982 1,942,000 - 1,942,000 - Marketable securities 275,000 275,000 $ 275,000 - -

Taxes (Tables)

Taxes (Tables)	3 Months Ended
	Mar. 31, 2016
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The interim financial statement provision for income taxes (benefit) is different from the amounts computed by applying the United States federal statutory income tax rate of 34 Three months ended March 31 2016 2015 Income taxes (benefit) at U.S. statutory rate $ (23,000) $ 90,000 State income taxes, net of federal benefit 14,000 14,000 Higher / (lower) effective taxes on earnings/losses in certain foreign countries (11,000) 11,000 Foreign corporate income taxes 17,000 27,000 Other, net (20,000) 6,000 $ (23,000) $ 148,000

Basic and Diluted Earnings (L16

Basic and Diluted Earnings (Loss) per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Numerator:
Net income (loss)	$ (43,660)	$ 116,447
Denominator:
Denominator for basic earnings (loss) per share--weighted average shares	12,919,000	12,819,000
Dilutive effect of employee stock options and other warrants	0	3,000
Denominator for diluted earnings (loss) per share--adjusted weighted average shares	12,919,000	12,822,000
Basic earnings (loss) per share (in dollars per share)	$ 0	$ 0.01
Diluted earnings (loss) per share (in dollars per share)	$ 0	$ 0.01

Basic and Diluted Earnings (L17

Basic and Diluted Earnings (Loss) per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	1,870,585	1,622,525

Fair Value of Financial Instr18

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Fair Value of Financial Instruments [Line Items]
Long-term debt, Carrying Amount	$ 3,791,080	$ 3,941,080
Note receivable, Carrying Amount	1,707,852	1,732,982
Marketable securities, Carrying Amount	257,000	275,000
Long-term debt, Fair Value	3,791,080	3,941,080
Note receivable, Fair Value	1,959,000	1,942,000
Marketable securities, Fair Value	257,000	275,000
Fair Value, Inputs, Level 1 [Member]
Fair Value of Financial Instruments [Line Items]
Long-term debt, Fair Value	0	0
Note receivable, Fair Value	0	0
Marketable securities, Fair Value	257,000	275,000
Fair Value, Inputs, Level 2 [Member]
Fair Value of Financial Instruments [Line Items]
Long-term debt, Fair Value	3,791,080	3,941,080
Note receivable, Fair Value	1,959,000	1,942,000
Marketable securities, Fair Value	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value of Financial Instruments [Line Items]
Long-term debt, Fair Value	0	0
Note receivable, Fair Value	0	0
Marketable securities, Fair Value	$ 0	$ 0

Taxes (Details)

Taxes (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Provision Benefit For Income Taxes [Line Items]
Income taxes (benefit) at U.S. statutory rate	$ (23,000)	$ 90,000
State income taxes, net of federal benefit	14,000	14,000
Higher / (lower) effective taxes on earnings/losses in certain foreign countries	(11,000)	11,000
Foreign corporate income taxes	17,000	27,000
Other, net	(20,000)	6,000
Income Tax Expense (Benefit), Total	$ (23,000)	$ 148,000

Taxes (Details Textual)

Taxes (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	36 Months Ended
	Dec. 31, 2010	Mar. 31, 2016	Dec. 31, 2006	Dec. 31, 2015
Income Taxes [Line Items]
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		34.00%
Vat And Withholding Taxes			$ 800,000
Interest Penalty Percentage			20.00%
Selling, General and Administrative Expense	$ 185,000
Management Estimated Reserve For Tax		$ 151,000		$ 142,000

Subsequent Event (Details Textu

Subsequent Event (Details Textual) - Employee Severance [Member] - Subsequent Event [Member]	1 Months Ended
	May. 31, 2016USD ($)
Subsequent Event [Line Items]
Percentage Of Employees Reduction	9.00%
Supplemental Unemployment Benefits, Severance Benefits	$ 275,000
Supplemental Unemployment Benefits Amount Net Of Estimated Income Tax	165,000
Estimated Annual Future Cost Savings	$ 1,100,000