UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
FOR ANNUAL REPORTS OF EMPLOYEE STOCK PURCHASE, SAVINGS
AND SIMILARY PLANS PURSUANT TO SECTION 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
(Mark One)
| x | ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the fiscal year ended December 31, 2015 |
OR |
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from _________to_________
Commission File Number 000-19932
______________________________________
| A. | Full title of the plan and the address of the plan, if different from that of the issuer named below: |
RELIV' INTERNATIONAL, INC.
401(k) PLAN
| B. | Name of issuer of the securities held pursuant to the plan and the address of its principal executive office: |
Reliv International, Inc.
136 Chesterfield Industrial Boulevard
Chesterfield, Missouri 63005
Pursuant to the requirements of the Securities Exchange Act of 1934, the trustees have duly caused this annual report to be signed on their behalf by the undersigned thereunto duly authorized.
| Dated: June 16, 2016 | RELIV’ INTERNATIONAL, INC. 401(k) PLAN |
| | |
| | By: | /s/ Stephen M. Merrick |
| | | Stephen M. Merrick, Senior Vice President
of Reliv’ International, Inc., Trustee |
Financial Statements and Supplemental Schedule
Reliv International, Inc. 401(k) Plan
Years Ended December 31, 2015 and 2014
Reliv International, Inc. 401(k) Plan
Financial Statements
and Supplemental Schedule
Years Ended December 31, 2015 and 2014
Contents
Report of Independent
Registered Public Accounting Firm
Plan Trustees
Reliv International, Inc. 401(k) Plan
We have audited the accompanying statements of net assets available for benefits of Reliv International, Inc. 401(k) Plan (the Plan) as of December 31, 2015 and 2014, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of Reliv International, Inc. 401(k) Plan as of December 31, 2015 and 2014, and the changes in net assets available for benefits for the years then ended, in conformity with accounting principles generally accepted in the United States of America.
Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental schedule of assets (held at end of year) as of December 31, 2015 is presented for purposes of additional analysis and is not a required part of the basic financial statements, but is supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. The supplemental schedule is the responsibility of the Plan’s management. The supplemental schedule has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the financial statements taken as a whole.
/s/ RubinBrown LLP
St. Louis, Missouri
June 16, 2016
Reliv International, Inc. 401(k) Plan
Statements of Net Assets Available for Benefits
| | | December 31 | |
| | | 2015 | | | 2014 | |
| Assets | | | | | | | | |
| Cash | | $ | 37,254 | | | $ | 188,036 | |
| Investments, at fair value: | | | | | | | | |
| Mutual funds | | | 7,300,094 | | | | 7,781,307 | |
| Collective investment trust funds | | | 2,299,328 | | | | 2,438,359 | |
| Reliv International, Inc. common stock | | | 209,881 | | | | 361,319 | |
| Total investments | | | 9,809,303 | | | | 10,580,985 | |
| | | | | | | | | |
| Receivables | | | | | | | | |
| Participant notes receivable | | | 133,926 | | | | 156,963 | |
| | | | | | | | | |
| Total assets | | | 9,980,483 | | | | 10,925,984 | |
| | | | | | | | | |
| Liabilities | | | | | | | | |
| Excess contributions payable | | | - | | | | 5,829 | |
| | | | | | | | | |
| Net assets available for benefits | | $ | 9,980,483 | | | $ | 10,920,155 | |
See accompanying notes to financial statements | 2 |
Reliv International, Inc. 401(k) Plan
Statements of Changes in Net Assets Available for Benefits
| | | Years Ended December 31 | |
| | | 2015 | | | 2014 | |
| Additions to net assets attributed to: | | | | | | | | |
| Contributions: | | | | | | | | |
| Company | | $ | 49,414 | | | $ | 98,953 | |
| Participants | | | 514,186 | | | | 570,936 | |
| Total contributions | | | 563,600 | | | | 669,889 | |
| | | | | | | | | |
| Deductions from net assets attributed to: | | | | | | | | |
| Withdrawals to participants | | | 1,286,676 | | | | 1,409,947 | |
| Administrative expenses | | | 34,792 | | | | 35,891 | |
| Total deductions | | | 1,321,468 | | | | 1,445,838 | |
| | | | | | | | | |
| Investment income (loss): | | | | | | | | |
| Net realized and unrealized depreciation in fair value of investments | | | (529,338 | ) | | | (409,554 | ) |
| Interest and dividends | | | 347,534 | | | | 499,131 | |
| Net investment income (loss) | | | (181,804 | ) | | | 89,577 | |
| | | | | | | | | |
| Net decrease in net assets available for benefits | | | (939,672 | ) | | | (686,372 | ) |
| Net assets available for benefits: | | | | | | | | |
| Beginning of year | | | 10,920,155 | | | | 11,606,527 | |
| End of year | | $ | 9,980,483 | | | $ | 10,920,155 | |
| See accompanying notes to financial statements | 3 |
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements
December 31, 2015
1. Description of the Plan
The following description of Reliv International, Inc. 401(k) Plan (the Plan) provides only general information. Participants should refer to the Plan agreement for a more complete description of the Plan’s provisions. The Plan was amended and restated on January 1, 2009.
General
The Plan is a defined contribution plan covering all eligible employees of Reliv International, Inc. (the Company) who have completed one year of service and have attained the age of 21. It is subject to the provisions of the Employee Retirement Income Security Act of 1974 (ERISA), as amended. The Plan’s asset custodian is Charles Schwab Bank.
Contributions
Each year participants may contribute from 1% to 50% of eligible compensation, as defined in the Plan agreement. The Plan provides for discretionary matching contributions. For the first nine months of the year ended December 31, 2014, the Company contributed on behalf of each participant 25% of the first 15% of the participant’s eligible compensation contributed. For the last three months of the year ended December 31, 2014, and for the year ended December 31, 2015, the Company contributed 10% of the first 15% of the participant’s eligible compensation contributed. Participants may also contribute amounts representing distributions from other qualified defined benefit or defined contribution plans. All contributions are subject to applicable Internal Revenue Service (IRS) limitations.
Upon enrollment, a participant may direct their contributions and any allocated Company contributions to any of the Plan’s investment options, which include Company common stock, various mutual funds, and various collective investment trusts. All investments are participant directed.
Vesting
Participants are immediately vested in their contributions plus actual earnings thereon. Vesting in the Company’s matching contributions plus actual earnings thereon is based on years of continuous service, as defined in the Plan agreement. A participant vests 20% per year starting with his or her second year of service and is fully vested after six years of continuous service.
Forfeitures arising from non-vested accounts at the time of termination are used to reduce future Company contributions to the Plan. Forfeited amounts available for future use were $3,347 and $318 at December 31, 2015 and 2014, respectively. Forfeitures used to offset Company contributions were $-0- and $22,597 during the years ended December 31, 2015 and 2014, respectively.
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
1. Description of the Plan (continued)
Participant Accounts
Each participant’s account is credited with the participant’s contributions, the Company’s matching contribution and allocations of Plan earnings and administrative expenses, if applicable. Allocations are based on participant earnings or account balances, as defined in the Plan agreement. The benefit to which a participant is entitled is the benefit that can be provided from the vested portion of the participant’s account.
Participant Notes Receivables
Participants may borrow from their accounts a minimum of $1,000 up to a maximum equal to the lesser of $50,000 or 50% of their vested account balance. Loan terms range from 1 year to 5 years or up to 30 years for the purchase of a primary residence. The loans outstanding at December 31, 2015 mature between 2016 and 2036. The loans are secured by the balance in the participants’ account and bear interest at rates ranging from 4.25% to 8.25%, commensurate with local prevailing rates as determined by the Plan administrator. Principal and interest are paid ratably through payroll deductions. Terminated employees may pay off the loan in full at time of separation or they may receive a deemed distribution.
Payment of Benefits
Upon termination of service or attainment of Normal Retirement Age, as defined in the Plan agreement, a participant may elect to receive either a lump-sum amount equal to the value of the participant’s vested interest in his or her account, annual installments, or if applicable to the participant’s account balance, a distribution of Company common stock.
Participants may also take in-service distributions upon reaching Normal Retirement Age or experiencing a qualifying financial hardship, as defined in the Plan agreement.
2. Summary of Significant Accounting Policies
Basis of Accounting
The financial statements have been prepared on the accrual basis of accounting.
Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Administrative Expenses
Expenses of the Plan are paid by the Company, except for financial advisory fees and participant loan initiation and record-keeping fees, which are charged to the applicable participants.
Participant Notes Receivable
Participant notes receivable are measured at unpaid principal balance plus accrued but unpaid interest. Delinquent participant loans are reclassified as distributions based upon the terms of the Plan agreement.
Fair Value
The Plan’s investments are stated at fair value under the provisions of Financial Accounting Standards Board Accounting Standards Codification (FASB ASC) 820, Fair Value Measurements and Disclosures, as amended. FASB ASC 820 establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. An asset’s or liability’s classification within the fair value hierarchy is based on the lowest level of significant input to its valuation. The standard describes three levels of inputs that may be used to measure fair value:
| Level 1: | Unadjusted quoted prices in active markets for identical assets or liabilities. |
| Level 2: | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities in active markets; quoted prices for identical or similar assets in inactive markets, inputs other than quoted prices that are observable for the asset or liability; or inputs that are observable or corroborated by observable market data for substantially the full term of the assets or liabilities. |
| Level 3: | Unobservable inputs supported by little or no market activity and that reflect the reporting entity’s own assumptions about the exit price, including assumptions that market participants would use in pricing the asset or liability. |
Fair value estimates are made at a specific point in time, based on available market information and other observable inputs. In some cases, the fair value estimates cannot be substantiated by comparison to independent markets. In addition, the disclosed fair value may not be realized in the immediate settlement of the financial asset and these values do not represent any premium or discount that could result from offering for sale at one time an entire holding of a particular financial asset. Potential taxes and other expenses that would be incurred in an actual sale or settlement are not reflected in the amounts disclosed.
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Adoption of ASU No. 2015-12, Plan Accounting
In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2015-12, Plan Accounting: Defined Benefit Pension Plans (Topic 960), Defined Contribution Pension Plans (Topic 962), Health and Welfare Benefit Plans (Topic 965): (Part I) Fully Benefit-Responsive Investment Contracts, (Part II) Plan Investment Disclosures, (Part III) Measurement Date Practical Expedient. Parts I and III are not applicable to the Plan. Part II eliminates the requirements to disclose individual investments that represent 5% or more of the net assets available for benefits and the net appreciation or depreciation in fair value of investments by general type. Part II also simplifies the level of disaggregation of investments that are measured using fair value. Plans will continue to disaggregate investments that are measured using fair value by general type; however, plans are no longer required to also disaggregate investments by nature, characteristics and risks. Further, the disclosure of information about fair value measurements shall be provided by general type of plan asset. The ASU is effective for fiscal years beginning after December 31, 2015, with early adoption permitted. Management has elected to adopt Part II early. Part II is to be applied retrospectively.
Adoption of ASU No. 2015-07, Fair Value Measurement
In May 2015, the FASB issued ASU 2015-07, Fair Value Measurement (Topic 820) – Disclosures For Investments in Certain Entities That Calculate Net Asset Value Per Share (or Its Equivalent). ASU 2015-07 removes the requirement to include within the fair value hierarchy leveling table those investments that measure fair value using the practical expedient available for investments that calculate a net asset value (NAV) per share. Instead, an entity would be required to include those investments as a reconciling item so that the total fair value amount of investments in the disclosure is consistent with the fair value investment balance on the statement of net assets available for benefits. Even though these investments are removed from the fair value hierarchy, plans should provide or disclose the total amount of investments measured using the NAV per share (or its equivalent) practical expedient in order to permit reconciliation of the fair value of investments included in the fair value hierarchy to the line items presented in the statements of net assets available for benefits. ASU 2015-07 is effective for fiscal years beginning after December 31, 2016, with early adoption permitted. Management has elected to adopt ASU 2015-07 early. ASU 2015-07 is to be applied retrospectively.
Valuation of Investments and Income Recognition
The Plan’s investments are stated at fair value as determined by Charles Schwab Bank, the Custodian. The shares of the Company’s common stock are valued at the closing price as quoted on the NASDAQ Global Select Market for the last business day of the year. Shares in mutual funds are valued at NAV based on the closing price for the last business day of the year.
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
2. Summary of Significant Accounting Policies (continued)
Valuation of Investments and Income Recognition (continued)
Target Date Funds: The Plan invests in collective investment trust funds in which the primary objective is to approximate the risk and return of a custom benchmark comprised of various industry published equity, fixed income, commodity, and inflation investment return indexes, as adjusted for target retirement dates associated with each particular fund. Accordingly, the funds may invest in a variety of asset classes, including, but not limited to, domestic and international equity, global real estate, commodities, intermediate-term bond, inflation-protected bond (U.S. TIPS) and cash equivalents.
Stable Value Fund: The Plan invests in the Federated Capital Preservation Fund (FCPF); a collective investment trust. The investment objective of FCPF is stability of principal and high current income.
Diversified Allocation Funds: The Plan invests in collective investment trust funds (the “Inceptus funds”) in which the primary objective of the various funds is to offer an investor investment “risk” ranging from conservative to aggressive. The Inceptus funds, as a group, seek to offer a varying degree of principal preservation, reduced volatility, and opportunity for growth. Each fund focuses on asset allocation as the driver of its long-term performance and will utilize a combination of mutual funds, exchange traded funds, and other pooled funds as the underlying investments.
The fair value of the Plan’s interest in the each of the Stable Value, Target Date, and Diversified Allocation funds is valued at NAV based on information reported by the issuer of the fund at year end. The NAV is used as a practical expedient to estimate fair value. This practical expedient is not used when it is determined to be probable that the fund will sell the investment for an amount different than the reported NAV. Participant transactions (purchases and sales) may occur daily.
Interest income is recognized on the accrual basis. Dividends are recorded on the ex-dividend date. Purchases and sales of securities are recorded on a trade-date basis. Net depreciation in fair value of investments includes the Plan’s gains and losses on investments bought and sold as well as held during the year.
Excess Contributions Payable
Amounts payable to participants for contributions in excess of amounts allowed by the IRS are recorded as a liability with a corresponding reduction to contributions. There was no excess employee contributions payable at December 31, 2015. Excess employee contributions of $5,829 relating to Plan year 2014 were payable at December 31, 2014 and were paid in 2015.
Payment of Benefits
Benefits are recorded when paid.
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
3. Investments
The following table presents the Plan’s fair value hierarchy for those investments measured at fair value on a recurring basis as of December 31, 2015 and 2014, respectively:
| | | | | | Fair Value Measurements | |
| | | | | | Unadjusted | | | Signficant | | | | |
| | | | | | Quoted Prices | | | Other | | | Signficant | |
| | | Total | | | in Active | | | Observable | | | Unobservable | |
| | | Carrying | | | Markets | | | Inputs | | | Inputs | |
| Description | | Value | | | (Level 1) | | | (Level 2) | | | (Level 3) | |
| | | | | | | | | | | | | | | | | |
| December 31, 2015: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Mutual funds | | $ | 7,300,094 | | | $ | 7,300,094 | | | $ | - | | | $ | - | |
| Collective investment trust funds (a) | | | 2,299,328 | | | | | | | | | | | | | |
| Common stock--Reliv International, Inc. | | | 209,881 | | | | 209,881 | | | | - | | | | - | |
| | | $ | 9,809,303 | | | $ | 7,509,975 | | | $ | - | | | $ | - | |
| | | | | | | | | | | | | | | | | |
| December 31, 2014: | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Mutual funds | | $ | 7,781,307 | | | $ | 7,781,307 | | | $ | - | | | $ | - | |
| Collective investment trust funds (a) | | | 2,438,359 | | | | | | | | | | | | | |
| Common stock--Reliv International, Inc. | | | 361,319 | | | | 361,319 | | | | - | | | | - | |
| | | $ | 10,580,985 | | | $ | 8,142,626 | | | $ | - | | | $ | - | |
(a) Certain investments that are measured at fair value using the NAV per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the statements of net assets available for benefits.
At December 31, 2015 and 2014, the Plan held 361,864 and 308,820 shares, respectively, of Reliv International, Inc. common stock with a fair value of $209,881 and $361,319, respectively. There were no cash dividends related to the Reliv International, Inc. common stock for the years ended December 31, 2015 and 2014.
There have been no changes in the methodologies used at December 31, 2015 or 2014.
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
4. Investments Measured Using Net Asset Value Per Share Practical Expedient
The following table summarizes investments for which fair value is measured using the NAV per share practical expedient as of December 31, 2015, and 2014, respectively. There are no participant redemption restrictions for these investments; the redemption notice period is applicable only to the Plan.
| | | | | | | | | Redemption | | Redemption | |
| | | Fair | | | Unfunded | | | frequency (if | | notice | |
| | | Value | | | commitments | | | currently eligible) | | period | |
| | | | | | | | | | | | | | | |
| December 31, 2015: | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Federated Capital Preservation Fund | | $ | 1,041,208 | | | | n/a | | | Daily | | | 12 months | |
| Inceptus Aggressive Fund | | | 74,159 | | | | n/a | | | Daily | | | none | |
| Inceptus Conservative Fund | | | 2,590 | | | | n/a | | | Daily | | | none | |
| Inceptus Moderate Fund | | | 76,126 | | | | n/a | | | Daily | | | none | |
| Inceptus Moderately Aggressive Fund | | | 526,983 | | | | n/a | | | Daily | | | none | |
| Inceptus Moderately Conservative Fund | | | 632 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2015 | | | 11,545 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2020 | | | 48,940 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2025 | | | 19,403 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2030 | | | 10,421 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2035 | | | 448,299 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2040 | | | 11,671 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2045 | | | 23,489 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2050 | | | 1,846 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2055 | | | 2,016 | | | | n/a | | | Daily | | | none | |
| | | | | | | | | | | | | | | |
| December 31, 2014: | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | |
| Federated Capital Preservation Fund | | $ | 1,279,283 | | | | n/a | | | Daily | | | 12 months | |
| Inceptus Aggressive Fund | | | 105,692 | | | | n/a | | | Daily | | | none | |
| Inceptus Conservative Fund | | | 24,440 | | | | n/a | | | Daily | | | none | |
| Inceptus Moderate Fund | | | 85,400 | | | | n/a | | | Daily | | | none | |
| Inceptus Moderately Aggressive Fund | | | 636,079 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2015 | | | 11,530 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2020 | | | 44,184 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2025 | | | 9,555 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2030 | | | 8,022 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2035 | | | 204,770 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2040 | | | 1,244 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2045 | | | 28,088 | | | | n/a | | | Daily | | | none | |
| Schwab Index Retirement TR Fund 2050 | | | 72 | | | | n/a | | | Daily | | | none | |
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
5. Plan Termination
Although it has not expressed any intent to do so, the Company has the right under the Plan to discontinue its contributions at any time and to terminate the Plan subject to the provisions of ERISA. In the event of Plan termination, participants will become 100% vested in their accounts.
6. Income Tax Status
The underlying nonstandardized prototype plan has received an opinion letter from the IRS dated March 31, 2008, stating that the form of the prototype plan is qualified under Section 401(a) of the Internal Revenue Code (the Code), and therefore, the related trust is tax-exempt. In accordance with Revenue Procedures 2008-6 and 2005-16, the Plan sponsor has determined that it is eligible to and has chosen to rely on the current IRS prototype plan opinion letter. Once qualified, the Plan is required to operate in conformity with the Code to maintain its qualification. The Plan has been amended since the date of the opinion letter; however, the Plan Administrator believes the Plan is being operated in compliance with the applicable requirements of the Code and, therefore, believes that the Plan is qualified and the related trust is tax-exempt.
Accounting principles generally accepted in the United States of America require plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the IRS. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2015, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan Administrator believes it is no longer subject to income tax examinations for years prior to 2012.
7. Risks and Uncertainties
The Plan invests in various investment securities. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.
Reliv International, Inc. 401(k) Plan
Notes to Financial Statements (continued)
8. Reconciliation of Financial Statements With Form 5500
The following is a reconciliation of the net assets available for benefits, contributions, and participant withdrawals per the financial statements to the related Form 5500.
| | | December 31 | |
| | | 2015 | | | 2014 | |
| | | | | | | |
| Net assets available for benefits per the financial statements | | $ | 9,980,483 | | | $ | 10,920,155 | |
| Excess contributions payable per the financial statements | | | - | | | | 5,829 | |
| Benefits payable per the Form 5500 | | | - | | | | (193,591 | ) |
| Net assets available for benefits per the Form 5500 | | $ | 9,980,483 | | | $ | 10,732,393 | |
| | | Years Ended December 31 | |
| | | 2015 | | | 2014 | |
| | | | | | | |
| Participant contributions per the financial statements | | $ | 514,186 | | | $ | 570,936 | |
| Excess contributions | | | - | | | | 5,829 | |
| Participant contributions per the Form 5500 | | $ | 514,186 | | | $ | 576,765 | |
| | | Years Ended December 31 | |
| | | 2015 | | | 2014 | |
| | | | | | | |
| Withdrawals to participants per the financial statements | | $ | 1,286,676 | | | $ | 1,409,947 | |
| Excess contributions payable at prior year end | | | 5,829 | | | | 24,866 | |
| Benefits payable per the Form 5500 | | | - | | | | 193,591 | |
| Benefits payable at prior year end per the Form 5500 | | | (193,591 | ) | | | - | |
| Withdrawals to participants and corrective distributions per the Form 5500 | | $ | 1,098,914 | | | $ | 1,628,404 | |
| | | | | | | | | |
Supplemental Schedule
Reliv International, Inc. 401(k) Plan
Schedule H, Line 4i – Schedule of Assets (Held at End of Year)
EIN 37-1172197, Plan No. 002
December 31, 2015
| Identity of Issuer | | Description of Investment | | Current Value | |
| | | Mutual Fund | | | |
| T Rowe Price Blue Chip Growth | | 20,694 shares | | $ | 1,497,832 | |
| Black Rock Sm Cap Growth Equity Instl | | 30,331 shares | | | 509,569 | |
| Dodge & Cox Income Fund | | 73,007 shares | | | 970,265 | |
| Dodge & Cox Stock Fund | | 5,717 shares | | | 930,633 | |
| Harbor International Growth Instl | | 39,078 shares | | | 480,664 | |
| Voya Global Real Estate Cl I | | 19,574 shares | | | 382,681 | |
| JP Morgan Mid Cap Value Instl SHS | | 11,641 shares | | | 395,438 | |
| Prudential Jennison Mid Cap Growth Q | | 11,434 shares | | | 413,226 | |
| Vanguard Inflation Protected SEC Admir | | 4,147 shares | | | 104,543 | |
| Vanguard Mid Cap Index Fund Admiral | | 410 shares | | | 60,935 | |
| Vanguard Small Cap Index Admiral | | 822 shares | | | 43,599 | |
| Vanguard Total Bond Mkt Index Admiral | | 8,005 shares | | | 85,177 | |
| Vanguard Total Intl Stk Index Admiral | | 23,084 shares | | | 559,560 | |
| Vanguard 500 Index Admiral | | 2,639 shares | | | 497,479 | |
| Westcore Small Cap Value Inst | | 34,995 shares | | | 368,493 | |
| | | Collective Investment Trust | | | | |
| Inceptus Aggressive Fund | | 6,154 units | | | 74,159 | |
| Inceptus Conservative Fund | | 254 units | | | 2,590 | |
| Inceptus Moderate Fund | | 6,654 units | | | 76,126 | |
| Inceptus Moderately Aggressive Fund | | 44,660 units | | | 526,983 | |
| Inceptus Moderately Conservative Fund | | 56 units | | | 632 | |
| Schwab Index Retirement TR Fund 2015* | | 670 units | | | 11,545 | |
| Schwab Index Retirement TR Fund 2020* | | 2,682 units | | | 48,940 | |
| Schwab Index Retirement TR Fund 2025* | | 1,007 units | | | 19,403 | |
| Schwab Index Retirement TR Fund 2030* | | 524 units | | | 10,421 | |
| Schwab Index Retirement TR Fund 2035* | | 21,605 units | | | 448,299 | |
| Schwab Index Retirement TR Fund 2040* | | 557 units | | | 11,671 | |
| Schwab Index Retirement TR Fund 2045* | | 1,098 units | | | 23,489 | |
| Schwab Index Retirement TR Fund 2050* | | 87 units | | | 1,846 | |
| Schwab Index Retirement TR Fund 2055* | | 166 units | | | 2,016 | |
| Federated Capital Preservation Fund | | 104,039 units | | | 1,041,208 | |
| | | | | | | |
| Reliv International, Inc.* | | 361,864 shares, Company common stock | | | 209,881 | |
Various participants*
| | Participant loans, interest rates of 4.25% to 8.25%, maturing between 2016 and 2036 | | | 133,926 | |
| | | | | $ | 9,943,229 | |
*Represents an allowable party-in-interest.
INDEX TO EXHIBIT
23. Consent of Independent Registered Public Accounting Firm
