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 shareweighted 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 shareadjusted 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 shareweighted 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 shareadjusted 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 |