Reliv' International (RELV) 10-Q 12 May 17 2017 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2017	May 03, 2017
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2017
Document Fiscal Year Focus	2,017
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		1,845,160

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Current assets:
Cash and cash equivalents	$ 3,829,293	$ 3,606,817
Accounts receivable, less allowances of $26,400 in 2017 and $26,700 in 2016	268,047	126,113
Accounts and note due from employees and distributors	138,081	139,931
Inventories
Finished goods	2,409,519	2,629,541
Raw materials	1,694,588	1,728,136
Sales aids and promotional materials	142,313	130,153
Total inventories	4,246,420	4,487,830
Refundable income taxes	67,819	97,194
Prepaid expenses and other current assets	829,110	474,183
Total current assets	9,378,770	8,932,068
Other assets	307,028	305,137
Cash surrender value of life insurance	2,996,117	2,965,981
Note receivable due from distributor	1,492,679	1,521,005
Deferred income taxes	488,000	487,000
Intangible assets, net	2,343,737	2,400,234
Property, plant and equipment:
Land and land improvements	905,190	905,190
Building	9,949,863	9,943,512
Machinery & equipment	4,565,858	4,329,329
Office equipment	1,208,890	1,203,868
Computer equipment & software	2,238,330	2,218,766
Property, plant, and equipment, Gross	18,868,131	18,600,665
Less: Accumulated depreciation	12,912,323	12,746,363
Net property, plant and equipment	5,955,808	5,854,302
Total assets	22,962,139	22,465,727
Accounts payable and accrued expenses:
Trade accounts payable and other accrued expenses	2,330,717	2,352,692
Distributors' commissions payable	1,360,833	1,402,370
Sales taxes payable	201,928	234,153
Payroll and payroll taxes payable	388,334	245,090
Total accounts payable and accrued expenses	4,281,812	4,234,305
Current portion of long-term debt	357,399	389,096
Total current liabilities	4,639,211	4,623,401
Noncurrent liabilities:
Long-term debt, less current portion	2,437,101	2,518,341
Other noncurrent liabilities	413,946	409,813
Total noncurrent liabilities	2,851,047	2,928,154
Stockholders' equity:
Preferred stock, par value $.001 per share; 3,000,000 shares authorized; -0- shares issued and outstanding in 2017 and 2016	0	0
Common stock, par value $.001 per share; 30,000,000 authorized; 2,110,013 shares issued and 1,845,160 shares outstanding as of 3/31/2017; 2,110,013 shares issued and 1,845,160 shares outstanding as of 12/31/2016	2,110	2,110
Additional paid-in capital	30,573,588	30,565,144
Accumulated deficit	(8,760,524)	(9,284,317)
Accumulated other comprehensive loss:
Foreign currency translation adjustment	(1,004,733)	(1,030,205)
Treasury stock	(5,338,560)	(5,338,560)
Total stockholders' equity	15,471,881	14,914,172
Total liabilities and stockholders' equity	$ 22,962,139	$ 22,465,727

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Allowance for accounts receivable (in dollars)	$ 26,400	$ 26,700
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	2,110,013	2,110,013
Common stock, shares, outstanding	1,845,160	1,845,160

Condensed Consolidated Statemen

Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Product sales	$ 11,835,116	$ 12,042,561
Handling & freight income	942,666	993,889
Net sales	12,777,782	13,036,450
Costs and expenses:
Cost of products sold	2,835,525	2,984,104
Distributor royalties and commissions	4,498,553	4,624,375
Selling, general and administrative	4,926,279	5,609,268
Total costs and expenses	12,260,357	13,217,747
Income (loss) from operations	517,425	(181,297)
Other income (expense):
Interest income	25,526	27,357
Interest expense	(24,841)	(26,401)
Other income	32,683	113,681
Income (loss) before income taxes	550,793	(66,660)
Provision (benefit) for income taxes	27,000	(23,000)
Net income (loss)	523,793	(43,660)
Other comprehensive income (loss):
Foreign currency translation adjustment	25,472	(74,551)
Comprehensive income (loss)	$ 549,265	$ (118,211)
Earnings (loss) per common share - Basic (in dollars per share)	$ 0.28	$ (0.02)
Weighted average shares (in shares)	1,845,000	1,846,000
Earnings (loss) per common share - Diluted (in dollars per share)	$ 0.28	$ (0.02)
Weighted average shares (in shares)	1,846,000	1,846,000

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Operating activities:
Net income/(loss)	$ 523,793	$ (43,660)
Adjustments to reconcile net income/(loss) to net cash provided by operating activities:
Depreciation and amortization	217,631	249,892
Stock-based compensation	8,444	18,142
Non-cash life insurance policy accretion	(30,135)	(29,244)
Deferred income taxes	5,000	(20,000)
Foreign currency transaction (gain)/loss	(36,133)	(100,053)
(Increase) decrease in accounts receivable and accounts due from employees and distributors	(138,452)	67,571
(Increase) decrease in inventories	268,776	316,870
(Increase) decrease in refundable income taxes	29,454	(4,933)
(Increase) decrease in prepaid expenses and other current assets	(353,515)	(605,781)
(Increase) decrease in other assets	(1,906)	18,697
Increase (decrease) in accounts payable & accrued expenses and other noncurrent liabilities	37,429	856,514
Net cash provided by operating activities	530,386	724,015
Investing activities:
Purchase of property, plant and equipment	(261,550)	(9,905)
Payments received on distributor note receivable	26,680	25,131
Net cash provided by (used in) investing activities	(234,870)	15,226
Financing activities:
Principal payments on long-term borrowings	(113,743)	(143,618)
Net cash used in financing activities	(113,743)	(143,618)
Effect of exchange rate changes on cash and cash equivalents	40,703	35,610
Increase (decrease) in cash and cash equivalents	222,476	631,233
Cash and cash equivalents at beginning of period	3,606,817	3,262,263
Cash and cash equivalents at end of period	$ 3,829,293	$ 3,893,496

Accounting Policies

Accounting Policies	3 Months Ended
	Mar. 31, 2017
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, 2016, filed March 28, 2017 with the Securities and Exchange Commission. On October 4, 2016, the Company effected a 1-for-7 reverse stock split of the Company's common stock. Each stockholder's percentage ownership and proportional voting power remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts, and related information in these Condensed Consolidated Financial Statements and notes thereto have been adjusted retroactively to give effect to the 1-for-7 reverse stock split.

Basic and Diluted Earnings (Los

Basic and Diluted Earnings (Loss) per Share	3 Months Ended
	Mar. 31, 2017
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 2017 2016 Numerator: Net income (loss) $ 523,793 $ (43,660) Denominator: Denominator for basic earnings (loss) per share—weighted average shares 1,845,000 1,846,000 Dilutive effect of employee stock options and other warrants 1,000 - Denominator for diluted earnings (loss) per share—adjusted weighted average shares 1,846,000 1,846,000 Basic earnings (loss) per share $ 0.28 $ (0.02) Diluted earnings (loss) per share $ 0.28 $ (0.02) Options and warrants to purchase 142,013 267,226

Fair Value of Financial Instrum

Fair Value of Financial Instruments	3 Months Ended
	Mar. 31, 2017
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. Description Carrying Value Fair Value Level 1 Level 2 Level 3 March 31, 2017 Long-term debt $ 2,794,500 $ 2,794,500 - $ 2,794,500 - Note receivable 1,603,484 1,798,000 - 1,798,000 - Marketable securities 299,000 299,000 $ 299,000 - - December 31, 2016 Long-term debt $ 2,907,437 $ 2,907,437 - $ 2,907,437 - Note receivable 1,630,164 1,812,000 - 1,812,000 - Marketable securities 296,000 296,000 $ 296,000 - - Long-term debt Note receivable Marketable securities 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, 2017
Income Tax Disclosure [Abstract]
Income Tax Disclosure [Text Block]	Note 4— Taxes 34 Three months ended March 31 2017 2016 Income taxes (benefit) at U.S. statutory rate $ 187,000 $ (23,000) Change in valuation allowance (152,000) - State income taxes, net of federal benefit 10,000 14,000 Higher / (lower) effective taxes on earnings/losses in certain foreign countries (34,000) (11,000) Foreign corporate income taxes 13,000 17,000 Other, net 3,000 (20,000) $ 27,000 $ (23,000) For fiscal year 2016, beginning in the second quarter, the Company determined that it was more likely than not that 2016 U.S. federal and various state net operating losses primarily generated in 2016 would not be realized based on projections of future U.S. taxable income, estimated reversals of existing taxable timing differences, and other considerations. Accordingly, the Company's full year 2016 income tax provision included the impact of recording a total valuation allowance of $ 292,000 From a U.S. tax perspective, the Company's income tax provision for the three months ended March 31, 2017 includes a partial release of valuation allowance which substantially offsets the federal income tax expense on the Company's pre-tax book income. One of the Company's foreign subsidiaries is presently under local country audit for alleged deficiencies (totaling approximately $ 800,000 20 185,000 162,000 158,000

Recent Accounting Standards

Recent Accounting Standards	3 Months Ended
	Mar. 31, 2017
New Accounting Pronouncements and Changes in Accounting Principles [Abstract]
Recent Accounting Standards Pending Adoption [Text Block]	Note 5— Recent Accounting Standards Adopted in 2017 In July 2015, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory, In March 2016, the FASB issued ASU No. 2016-09, Compensation - Stock Compensation (Topic 781): Improvements to Employee Share-Based Payment Accounting. Not Yet Adopted In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers In February 2016, the FASB issued ASU No. 2016-2, Leases (Topic 842)

Accounting Policies (Policies)

Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2017
Accounting Policies [Abstract]
Nature Of Operations 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, 2016, filed March 28, 2017 with the Securities and Exchange Commission. On October 4, 2016, the Company effected a 1-for-7 reverse stock split of the Company's common stock. Each stockholder's percentage ownership and proportional voting power remained unchanged as a result of the reverse stock split. All applicable share data, per share amounts, and related information in these Condensed Consolidated Financial Statements and notes thereto have been adjusted retroactively to give effect to the 1-for-7 reverse stock split.

Basic and Diluted Earnings (L12

Basic and Diluted Earnings (Loss) per Share (Tables)	3 Months Ended
	Mar. 31, 2017
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 2017 2016 Numerator: Net income (loss) $ 523,793 $ (43,660) Denominator: Denominator for basic earnings (loss) per share—weighted average shares 1,845,000 1,846,000 Dilutive effect of employee stock options and other warrants 1,000 - Denominator for diluted earnings (loss) per share—adjusted weighted average shares 1,846,000 1,846,000 Basic earnings (loss) per share $ 0.28 $ (0.02) Diluted earnings (loss) per share $ 0.28 $ (0.02)

Fair Value of Financial Instr13

Fair Value of Financial Instruments (Tables)	3 Months Ended
	Mar. 31, 2017
Fair Value Disclosures [Abstract]
Fair Value, by Balance Sheet Grouping [Table Text Block]	Description Carrying Value Fair Value Level 1 Level 2 Level 3 March 31, 2017 Long-term debt $ 2,794,500 $ 2,794,500 - $ 2,794,500 - Note receivable 1,603,484 1,798,000 - 1,798,000 - Marketable securities 299,000 299,000 $ 299,000 - - December 31, 2016 Long-term debt $ 2,907,437 $ 2,907,437 - $ 2,907,437 - Note receivable 1,630,164 1,812,000 - 1,812,000 - Marketable securities 296,000 296,000 $ 296,000 - -

Taxes (Tables)

Taxes (Tables)	3 Months Ended
	Mar. 31, 2017
Income Tax Disclosure [Abstract]
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]	The interim financial statement provision (benefit) for income taxes is different from the amounts computed by applying the United States federal statutory income tax rate of 34 Three months ended March 31 2017 2016 Income taxes (benefit) at U.S. statutory rate $ 187,000 $ (23,000) Change in valuation allowance (152,000) - State income taxes, net of federal benefit 10,000 14,000 Higher / (lower) effective taxes on earnings/losses in certain foreign countries (34,000) (11,000) Foreign corporate income taxes 13,000 17,000 Other, net 3,000 (20,000) $ 27,000 $ (23,000)

Accounting Policies (Details Te

Accounting Policies (Details Textual)	Oct. 04, 2016
Accounting Policies [Line Items]
Stockholders' Equity, Reverse Stock Split	1-for-7

Basic and Diluted Earnings (L16

Basic and Diluted Earnings (Loss) per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Numerator:
Net income (loss)	$ 523,793	$ (43,660)
Denominator:
Denominator for basic earnings (loss) per share-weighted average shares	1,845,000	1,846,000
Dilutive effect of employee stock options and other warrants	1,000	0
Denominator for diluted earnings (loss) per share-adjusted weighted average shares	1,846,000	1,846,000
Basic earnings (loss) per share	$ 0.28	$ (0.02)
Diluted earnings (loss) per share	$ 0.28	$ (0.02)

Basic and Diluted Earnings (L17

Basic and Diluted Earnings (Loss) per Share (Details Textual) - shares	3 Months Ended
	Mar. 31, 2017	Mar. 31, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	142,013	267,226

Fair Value of Financial Instr18

Fair Value of Financial Instruments (Details) - USD ($)	Mar. 31, 2017	Dec. 31, 2016
Fair Value of Financial Instruments [Line Items]
Long-term debt, Carrying Amount	$ 2,794,500	$ 2,907,437
Note receivable, Carrying Amount	1,603,484	1,630,164
Marketable securities, Carrying Amount	299,000	296,000
Long-term debt, Fair Value	2,794,500	2,907,437
Note receivable, Fair Value	1,798,000	1,812,000
Marketable securities, Fair Value	299,000	296,000
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	299,000	296,000
Fair Value, Inputs, Level 2 [Member]
Fair Value of Financial Instruments [Line Items]
Long-term debt, Fair Value	2,794,500	2,907,437
Note receivable, Fair Value	1,798,000	1,812,000
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, 2017	Mar. 31, 2016
Taxes [Line Items]
Income taxes (benefit) at U.S. statutory rate	$ 187,000	$ (23,000)
Change in valuation allowance	(152,000)	0
State income taxes, net of federal benefit	10,000	14,000
Higher / (lower) effective taxes on earnings/losses in certain foreign countries	(34,000)	(11,000)
Foreign corporate income taxes	13,000	17,000
Other, net	3,000	(20,000)
Income Tax Expense (Benefit), Total	$ 27,000	$ (23,000)

Taxes (Details Textual)

Taxes (Details Textual) - USD ($)	1 Months Ended	3 Months Ended	12 Months Ended	36 Months Ended
	Dec. 31, 2010	Mar. 31, 2017	Dec. 31, 2016	Dec. 31, 2006
Taxes [Line Items]
Vat And Withholding Taxes				$ 800,000
Interest Penalty Percentage				20.00%
Selling, General and Administrative Expense	$ 185,000
Management Estimated Reserve For Tax		$ 162,000	$ 158,000
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent		34.00%
Valuation Allowance Deferred Tax Assets For Net Operating Losses Domestic			$ 292,000