Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 05, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | RELIV INTERNATIONAL INC | |
Entity Central Index Key | 0000768710 | |
Trading Symbol | relv | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Common Stock, Shares Outstanding (in shares) | 1,746,449 | |
Entity Shell Company | false | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Title of 12(b) Security | Common Stock |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 1,918,721 | $ 1,989,974 |
Accounts receivable, less allowances of $5,000 in 2019 and 2018 | 235,030 | 400,759 |
Notes & accounts receivables and deposits - related parties | 1,027,126 | 151,222 |
Inventories | ||
Finished goods | 2,262,547 | 2,460,563 |
Raw materials | 325,513 | 372,865 |
Sales aids and promotional materials | 121,095 | 121,519 |
Total inventories | 2,709,155 | 2,954,947 |
Refundable income taxes | 26,007 | 22,712 |
Assets held for sale | 2,124,939 | |
Prepaid expenses and other current assets | 740,027 | 441,453 |
Total current assets | 6,656,066 | 8,086,006 |
Other assets | 407,781 | 338,974 |
Notes and accounts receivables - related parties | 2,490,528 | 1,282,072 |
Operating lease right-to-use assets | 337,858 | |
Intangible assets, net | 1,835,269 | 1,948,263 |
Equity investment | 505,000 | |
Property, plant and equipment: | ||
Land and land improvements | 905,190 | 905,190 |
Building | 10,113,184 | 9,964,523 |
Office & other equipment | 1,226,930 | 1,337,911 |
Computer equipment & software | 2,227,896 | 2,212,935 |
Property, plant and equipment, Gross, Total | 14,473,200 | 14,420,559 |
Less: Accumulated depreciation | 9,903,963 | 9,722,009 |
Net property, plant and equipment | 4,569,237 | 4,698,550 |
Total assets | 16,801,739 | 16,353,865 |
Current liabilities: | ||
Trade accounts payable and other accrued expenses | 1,918,264 | 2,105,814 |
Distributors' commissions payable | 886,452 | 1,030,948 |
Sales taxes payable | 147,444 | 195,802 |
Payroll and payroll taxes payable | 239,222 | 210,288 |
Total accounts payable and accrued expenses | 3,191,382 | 3,542,852 |
Income taxes payable | 52,618 | 35,304 |
Deferred revenue | 356,855 | 337,234 |
Operating lease liabilities, current | 211,278 | |
Deferred rent liability | 125,000 | |
Revolving line of credit | 500,000 | |
Total current liabilities | 4,437,133 | 3,915,390 |
Noncurrent liabilities: | ||
Operating lease liabilities, noncurrent | 119,106 | |
Other noncurrent liabilities | 507,595 | 445,611 |
Total noncurrent liabilities | 626,701 | 445,611 |
Stockholders' equity: | ||
Preferred stock, par value $.001 per share; 500,000 shares authorized; -0- shares issued and outstanding in 2019 and 2018 | 0 | 0 |
Common stock, par value $.001 per share; 5,000,000 authorized; 2,110,013 shares issued and 1,746,449 shares outstanding as of 6/30/2019; 2,110,013 shares issued and 1,845,160 shares outstanding as of 12/31/2018 | 2,110 | 2,110 |
Additional paid-in capital | 30,633,159 | 30,622,547 |
Accumulated deficit | (12,075,599) | (12,311,138) |
Accumulated other comprehensive loss: | ||
Foreign currency translation adjustment | (970,342) | (982,095) |
Treasury stock | (5,851,423) | (5,338,560) |
Total stockholders' equity | 11,737,905 | 11,992,864 |
Total liabilities and stockholders' equity | $ 16,801,739 | $ 16,353,865 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts receivable, allowances | $ 5,000 | $ 5,000 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 500,000 | 500,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Common stock, shares issued (in shares) | 2,110,013 | 2,110,013 |
Common stock, shares outstanding (in shares) | 1,746,449 | 1,845,160 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Revenues | $ 8,257,013 | $ 8,459,741 | $ 17,746,517 | $ 18,462,980 |
Costs and expenses: | ||||
Cost of goods sold | 2,268,992 | 2,356,274 | 4,702,723 | 4,706,016 |
Distributor royalties and commissions | 2,665,093 | 2,827,357 | 5,782,665 | 6,219,102 |
Selling, general and administrative | 3,688,944 | 4,215,641 | 7,428,472 | 8,701,536 |
Total costs and expenses | 8,623,029 | 9,399,272 | 17,913,860 | 19,626,654 |
Loss from operations | (366,016) | (939,531) | (167,343) | (1,163,674) |
Other income (expense): | ||||
Interest income | 46,218 | 23,547 | 95,480 | 47,499 |
Interest expense | (10,075) | (45,222) | (15,487) | (76,787) |
Other income (expense) | 4,768 | 7,214 | (660) | 13,865 |
Gain on sale of fixed assets | (962) | 434,549 | 2,838 | |
Income (loss) before income taxes | (325,105) | (954,954) | 346,539 | (1,176,259) |
Provision for income taxes | 63,000 | 23,000 | 111,000 | 40,000 |
Net income (loss) | (388,105) | (977,954) | 235,539 | (1,216,259) |
Other comprehensive income (loss): | ||||
Foreign currency translation adjustment | (10,458) | (78,591) | 11,753 | (53,363) |
Comprehensive income (loss) | $ (398,563) | $ (1,056,545) | $ 247,292 | $ (1,269,622) |
Basic earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.53) | $ 0.13 | $ (0.66) |
Weighted average shares (in shares) | 1,746,000 | 1,845,000 | 1,746,000 | 1,845,000 |
Diluted earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.53) | $ 0.13 | $ (0.66) |
Weighted average shares (in shares) | 1,746,000 | 1,845,000 | 1,746,000 | 1,845,000 |
Product [Member] | ||||
Net Revenues | $ 7,603,041 | $ 7,920,596 | $ 16,414,038 | $ 17,311,977 |
Freight Income [Member] | ||||
Net Revenues | 479,881 | 539,145 | 999,822 | 1,151,003 |
Product and Service, Other [Member] | ||||
Net Revenues | $ 174,091 | $ 332,657 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Operating activities: | ||
Net income (loss) | $ 235,539 | $ (1,216,259) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 292,842 | 403,430 |
Stock-based compensation | 10,612 | 15,069 |
Non-cash life insurance policy reduction / (accretion) | 19,162 | |
Non-cash other revenue | (172,866) | |
Non-cash miscellaneous loss | 24,618 | |
(Gain) loss on sale of property, plant and equipment | (434,549) | (2,838) |
Foreign currency transaction (gain) loss | 1,149 | (194) |
(Increase) decrease in trade, accounts & notes receivable, and deposits from related parties | (715,018) | (180,145) |
(Increase) decrease in inventories | 758,798 | 415,760 |
(Increase) decrease in refundable income taxes | (3,295) | 3,616 |
(Increase) decrease in prepaid expenses and other current assets | (295,925) | (274,252) |
(Increase) decrease in other assets | (68,807) | (948) |
Increase (decrease) in income taxes payable | 16,148 | (6,930) |
Increase (decrease) in accounts payable & accrued expenses, deferred revenue, and other noncurrent liabilities | (293,111) | 568,291 |
Net cash used in operating activities | (643,865) | (256,238) |
Investing activities: | ||
Purchase of property, plant and equipment | (50,180) | (56,968) |
Proceeds from the sale of property, plant and equipment | 3,888 | |
Payments received on notes receivables - related parties | 109,984 | 57,079 |
Net cash provided by investing activities | 59,804 | 3,999 |
Financing activities: | ||
Proceeds from line of credit borrowings | 500,000 | |
Principal payments on long-term borrowings | (189,560) | |
Net cash provided by (used in) financing activities | 500,000 | (189,560) |
Effect of exchange rate changes on cash and cash equivalents | 12,808 | (66,901) |
Increase (decrease) in cash and cash equivalents | (71,253) | (508,700) |
Cash and cash equivalents at beginning of period | 1,989,974 | 3,272,788 |
Cash and cash equivalents at end of period | $ 1,918,721 | $ 2,764,088 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance (in shares) at Dec. 31, 2017 | 2,110,013 | 264,853 | ||||
Balance at Dec. 31, 2017 | $ 2,110 | $ 30,598,920 | $ (10,040,229) | $ (857,654) | $ (5,338,560) | $ 14,364,587 |
Net income (loss) | (238,305) | (238,305) | ||||
Foreign currency translation adjustment | 25,228 | 25,228 | ||||
Total comprehensive income | (213,077) | |||||
Stock-based compensation | 7,534 | 7,534 | ||||
Balance (in shares) at Mar. 31, 2018 | 2,110,013 | 264,853 | ||||
Balance at Mar. 31, 2018 | $ 2,110 | 30,606,454 | (10,646,102) | (832,426) | $ (5,338,560) | 13,791,476 |
Balance (in shares) at Dec. 31, 2017 | 2,110,013 | 264,853 | ||||
Balance at Dec. 31, 2017 | $ 2,110 | 30,598,920 | (10,040,229) | (857,654) | $ (5,338,560) | 14,364,587 |
Net income (loss) | (1,216,259) | |||||
Foreign currency translation adjustment | (53,363) | |||||
Total comprehensive income | (1,269,622) | |||||
Balance (in shares) at Jun. 30, 2018 | 2,110,013 | 264,853 | ||||
Balance at Jun. 30, 2018 | $ 2,110 | 30,613,989 | (11,624,056) | (911,017) | $ (5,338,560) | 12,742,466 |
Adoption of Accounting Standards Update 2014-09 | (367,568) | (367,568) | ||||
Balance (in shares) at Mar. 31, 2018 | 2,110,013 | 264,853 | ||||
Balance at Mar. 31, 2018 | $ 2,110 | 30,606,454 | (10,646,102) | (832,426) | $ (5,338,560) | 13,791,476 |
Net income (loss) | (977,954) | (977,954) | ||||
Foreign currency translation adjustment | (78,591) | (78,591) | ||||
Total comprehensive income | (1,056,545) | |||||
Stock-based compensation | 7,535 | 7,535 | ||||
Balance (in shares) at Jun. 30, 2018 | 2,110,013 | 264,853 | ||||
Balance at Jun. 30, 2018 | $ 2,110 | 30,613,989 | (11,624,056) | (911,017) | $ (5,338,560) | 12,742,466 |
Balance (in shares) at Dec. 31, 2018 | 2,110,013 | 264,853 | ||||
Balance at Dec. 31, 2018 | $ 2,110 | 30,622,547 | (12,311,138) | (982,095) | $ (5,338,560) | 11,992,864 |
Net income (loss) | 623,644 | 623,644 | ||||
Foreign currency translation adjustment | 22,211 | 22,211 | ||||
Total comprehensive income | 645,855 | |||||
Treasury stock acquired (Note 2) (in shares) | 99,200 | |||||
Treasury stock acquired (Note 2) | $ (540,144) | (540,144) | ||||
Other (in shares) | (489) | |||||
Other | $ 27,281 | 27,281 | ||||
Stock-based compensation | 5,306 | 5,306 | ||||
Balance (in shares) at Mar. 31, 2019 | 2,110,013 | 363,564 | ||||
Balance at Mar. 31, 2019 | $ 2,110 | 30,627,853 | (11,687,494) | (959,884) | $ (5,851,423) | 12,131,162 |
Balance (in shares) at Dec. 31, 2018 | 2,110,013 | 264,853 | ||||
Balance at Dec. 31, 2018 | $ 2,110 | 30,622,547 | (12,311,138) | (982,095) | $ (5,338,560) | 11,992,864 |
Net income (loss) | 235,539 | |||||
Foreign currency translation adjustment | 11,753 | |||||
Total comprehensive income | 247,292 | |||||
Balance (in shares) at Jun. 30, 2019 | 2,110,013 | 363,564 | ||||
Balance at Jun. 30, 2019 | $ 2,110 | 30,633,159 | (12,075,599) | (970,342) | $ (5,851,423) | 11,737,905 |
Balance (in shares) at Mar. 31, 2019 | 2,110,013 | 363,564 | ||||
Balance at Mar. 31, 2019 | $ 2,110 | 30,627,853 | (11,687,494) | (959,884) | $ (5,851,423) | 12,131,162 |
Net income (loss) | (388,105) | (388,105) | ||||
Foreign currency translation adjustment | (10,458) | (10,458) | ||||
Total comprehensive income | (398,563) | |||||
Stock-based compensation | 5,306 | 5,306 | ||||
Balance (in shares) at Jun. 30, 2019 | 2,110,013 | 363,564 | ||||
Balance at Jun. 30, 2019 | $ 2,110 | $ 30,633,159 | $ (12,075,599) | $ (970,342) | $ (5,851,423) | $ 11,737,905 |
Note 1 - Accounting Policies
Note 1 - Accounting Policies | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | 1. Accounting Polic ies Basis of Presentation The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the instructions to Form 10 not may not may 10 December 31, 2018, March 29, 2019 Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. Reclassifications To conform to the current year presentation, certain previously reported 2018 Inventories Inventories are valued at the lower of cost or market and are accounted for on a first first January 1, 2019, 2019, Sales aids and promotional materials inventories represent distributor kits, product brochures, and other sales and business development materials which are held for sale to distributors. Cost of the sales aids and promotional materials held for sale are capitalized as inventories and subsequently recorded to costs of goods sold upon recognition of revenue when sold to distributors. All other advertising and promotional costs are expensed when incurred. Variable Interest Entities (VIE) - Unconsolidated Effective January 1, 2019, We do not not not not See Note 2 3 Concentrations of Risk Effective January 1, 2019, 2 3 New Accounting Pronouncements – Not In June 2016, No. 2016 13, Credit Losses (Topic 326 may may January 1, 2020, New Accounting Pronouncements – Adopted January 1, 2019 Lessee Accounting On January 1, 2019, No. 2016 02, Leases (Topic 842 not $451,000 $457,000, At adoption, we used the new lease accounting standard’s package of practical expedients permitted under the transition guidance that allowed us to not not twelve Operating lease liabilities and related operating lease right-to-use assets are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When leases do not See Note 7 Less or Accounting – Other Revenue Other revenue consists of revenue derived from our leasing a portion of our headquarters building to Nutracom, LLC (Nutracom). We recognize lessor rent revenue on a straight-line basis over the term of the lease. As part of this straight-line methodology, the cumulative rental billings may Also included in other revenue are billings to the tenant for its share of the facility’s common area costs such as real estate taxes, maintenance, and utilities. These same common area costs plus the tenant’s share of the facilities’ depreciation are recorded as cost of goods sold. See Note 2 3 7 Going Concern We have incurred operating losses, declining net sales, and negative net cash flows over our most recent five not June 30, 2019, $1,918,721 may not one not twelve We may not may not not We have taken several steps in 2019 $500,000 $750,000 $750,000 April 28, 2020. As detailed in Note 2 January 1, 2019, $100,000 Should the aforementioned changes to our operations not may These actions may may not not may no |
Note 2 - Sale of Manufacturing
Note 2 - Sale of Manufacturing Operations' Assets | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | 2. On January 1, 2019, ● Inventories (sold at cost of $1.56 ● Machinery and other equipment with a net book value of $565,000 $1 $435,000 Nutracom was formed by our manufacturing operations management which included former officers of the Company. Employees of our manufacturing operations were offered employment by Nutracom. Prior to its approval of the transaction, our Board of Directors formed a special committee consisting of the Board’s independent directors to review the transaction. To assist in its review, the special committee engaged a qualified third Concurrently with the execution of the Purchase Agreement, we entered into several agreements with Nutracom including a product supply agreement for a term of seven seven five $193,000 $410,000 seven Nutracom provided the following consideration to us for the manufacturing operations and related identified assets and agreements: ● $1 seven 5.5%, June 1, 2019 2 ● $764,344 seven 7.0%, first two ten first ● Nutracom management transferred to us its ownership of 99,200 $540,144. ● Nutracom issued to us a non-voting Class B 15% not ● Commencing January 1, 2020, 1.0% 1.25% Our non-voting Class B 15% third $505,000. not At December 31, 2018, first 2019 Promissory Note Modification – June 1, 2019 On June 1, 2019, January 1, 2019, ● Effective June 1, 2019, $500,000 $460,583 $500,000 ● The $460,583 June 1, 2019 6.0% December 2020. January 1, 2021, $8,904 60 |
Note 3 - Related Parties
Note 3 - Related Parties | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 3. The following summarizes our related party activities with Nutracom and a significant distributor of the Company. June 30 December 31 Assets and liabilities - related parties 2019 2018 Notes & accounts receivables and deposits - current Deposits with Nutracom for inventory $ 827,356 $ - Notes receivable - distributor 126,778 123,040 Other miscellaneous receivables 72,992 28,182 $ 1,027,126 $ 151,222 Notes & accounts receivables - non-current Notes receivable - distributor $ 1,217,735 $ 1,282,072 Notes receivable - Nutracom unsecured DTD 1/1/2019 764,344 - Notes receivable - Nutracom unsecured DTD 6/1/2019 460,583 - Unbilled receivables: Straight line rent revenue greater than rental billings 47,866 - $ 2,490,528 $ 1,282,072 Equity investment in Nutracom $ 505,000 - Liability captions with Nutracom balances included therein Trade accounts payable and other accrued expenses $ 62,849 - Deferred rent liability 125,000 - The following table presents scheduled principal payments to be received on the distributor and Nutracom promissory notes receivable: Remainder of 2019 $ 62,441 2020 130,629 2021 274,844 2022 292,377 2023 311,033 Thereafter 1,498,116 $ 2,569,440 Six months ended June 30 Revenue and expense - related parties 2019 2018 Other revenue $ 332,657 $ - Selling, general and administrative expense: Fullfillment & professional fees 305,910 - Interest income on promissory notes 92,668 44,778 Gain on sale of fixed assets 434,549 - Finished goods inventory purchased from Nutracom $ 2,763,000 - At June 30, 2019, $1.4 S upplementary Disclosure of Cash Flows Information We incurred the following noncash investing and financing transactions on January 1, 2019 June 1, 2019 2019 January 1, 2019 Sale of fixed assets $ 1,000,000 Sale of inventories 1,559,488 First year building rental received in advance 250,000 Acquire company common stock for treasury 540,144 Acquire equity investment in Nutracom 505,000 Secured promissory note received 1,000,000 Unsecured promissory note received 764,344 June 1, 2019 Secured promissory note receivable balance decreased; applied as reduction to outstanding trade accounts payable 500,000 Unsecured promissory note received in exchange for remaining secured promissory note balance and other considerations 460,583 |
Note 4 - Basic and Diluted Earn
Note 4 - Basic and Diluted Earnings (Loss) Per Share | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | 4. Basic earnings (loss) per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per common 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. The following table sets forth the computation of basic and diluted earnings (loss) per share: Three months ended Six months ended June 30 June 30 2019 2018 2019 2018 Numerator: Net income (loss) $ (388,105 ) $ (977,954 ) $ 235,539 $ (1,216,259 ) Denominator: Denominator for basic earnings (loss) per share – weighted average shares 1,746,000 1,845,000 1,746,000 1,845,000 Dilutive effect of employee stock options and other warrants - - - - Denominator for diluted earnings (loss) per share – adjusted weighted average shares 1,746,000 1,845,000 1,746,000 1,845,000 Basic earnings (loss) per share $ (0.22 ) $ (0.53 ) $ 0.13 $ (0.66 ) Diluted earnings (loss) per share $ (0.22 ) $ (0.53 ) $ 0.13 $ (0.66 ) Options and warrants to purchase 85,203 three six June 30, 2019, not 120,242 three six June 30, 2018, not |
Note 5 - Fair Value of Financia
Note 5 - Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 5 . 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 Level 1: Level 2: not Level 3: The carrying amount and fair value of financial instruments were approximately as follows: Carrying Fair Description Amount Value Level 1 Level 2 Level 3 June 30, 2019 Revolving line of credit $ 500,000 $ 500,000 - $ 500,000 - Note receivable - distributor 1,344,513 1,474,000 - 1,474,000 - Notes receivable - Nutracom 1,224,927 1,224,927 - 1,224,927 - Marketable securities 408,000 408,000 $ 408,000 - - December 31, 2018 Note receivable - distributor $ 1,405,112 $ 1,529,000 - $ 1,529,000 - Marketable securities 339,000 339,000 $ 339,000 - - Revolving line of credit thirty Note receivable - distributor fifteen Note s receivable - Nutracom 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 the respective balances. |
Note 6 - Debt
Note 6 - Debt | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | 6 . Debt On September 30, 2015, 2018 Effective with a September 11, 2018 $750,000. April 29, 2019 30 2.25%. December 31, 2018, no January 2019, $500,000 Effective with a March 25, 2019 April 28, 2020 30 3.00%. $750,000. June 30, 2019, $500,000 5.48%. Borrowings under the lending agreement continue to be secured by all of our tangible and intangible assets and by a mortgage on the real estate of our headquarters facility. At June 30, 2019, |
Note 7 - Leases
Note 7 - Leases | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Lessee and Lessor, Operating Leases [Text Block] | 7. Less ee The Company leases certain office facilities, storage, and equipment. These leases have varying terms, are generally one five The following table represents the maturity of our operating lease liabilities as of June 30, 2019: Remainder of 2019 $ 118,728 2020 185,980 2021 19,588 2022 14,781 2023 5,557 Thereafter - Total operating lease payments 344,634 Less: imputed interest (14,250 ) Total operating lease liabilities $ 330,384 Operating lease expense: Three months ended Six months ended June 30, 2019 June 30, 2019 Fixed $ 60,269 $ 124,972 Variable 4,023 9,472 Short-term 5,265 15,036 Total $ 69,557 $ 149,480 As of June 30, 2019, 1.8 5.2%. $134,600 six June 30, 2019. Less or – Other Revenue Other revenue consists of revenue derived from our leasing a portion of our headquarters building to Nutracom, LLC (Nutracom) effective January 1, 2019. seven five $193,000 $410,000 seven We recognize lessor rent revenue on a straight-line basis over the term of the lease. As part of this straight-line methodology, the cumulative rental billings may Also included in other revenue are billings to the tenant for its share of the facility’s common area costs such as real estate taxes, maintenance, and utilities. These same common area costs plus the tenant’s share of the facilities’ depreciation are recorded as cost of goods sold. The following table details lessor’s estimated remaining straight-line rent revenue over the seven Estimated Straight-line Lease Agreement Rent Revenue Fixed Rent Remainder of 2019 $ 172,866 $ 125,000 2020 345,732 192,900 2021 345,732 385,800 2022 345,732 385,800 2023 345,732 385,800 Thereafter 691,465 819,825 Total $ 2,247,259 $ 2,295,125 |
Note 8 - Income Taxes
Note 8 - Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 8 . Income Taxes During the fiscal years of 2016 2018, not not In prior years, we recorded a valuation allowance on all of our domestic and foreign deferred tax assets. The effective income tax rate was 32.0% 3.4 June 30, 2019 2018, one One of our foreign subsidiaries is presently under local country audit for alleged deficiencies (totaling approximately $800,000 20% 2004 2006. not 2011, $173,000 As of December 31, 2018, $172,500 2019. May 2018, one not |
Note 9 - Revenue Recognition
Note 9 - Revenue Recognition | 6 Months Ended |
Jun. 30, 2019 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 9 . Revenue Recognition We recognize revenue from product sales under a five 20 40 not We recognize the performance obligation for membership fees-type revenue over the membership term of generally twelve We record freight income as a component of net sales and record freight costs as a component of cost of goods sold. Total sales do not Other revenue is defined in Note 7 Actual and estimated sales returns are classified as a reduction of net sales. We estimate and accrue a reserve for product returns based on our return policy and historical experience. Our product returns policy allows for distributors to return product only upon termination of his or her distributorship. Allowable returns are limited to saleable product which was purchased within twelve 100% June 30, 2019 2018, 0.07% 0.26%, We classify our net sales into two Three months ended June 30 Six months ended June 30 2019 2018 2019 2018 Net sales by product category Nutritional and dietary supplements $ 7,284,897 $ 7,606,674 $ 15,782,247 $ 16,676,031 Sales aids, membership fees, and other 318,144 313,922 631,791 635,946 Freight income 479,881 539,145 999,822 1,151,003 Other revenue 174,091 - 332,657 - Total net sales $ 8,257,013 $ 8,459,741 $ 17,746,517 $ 18,462,980 We operate in one six Three months ended June 30 Six months ended June 30 2019 2018 2019 2018 Net sales by geographic region United States $ 5,904,605 $ 6,336,387 $ 13,016,378 $ 14,006,448 Australia/New Zealand 132,330 177,536 309,377 409,464 Canada 140,029 161,557 339,428 403,677 Mexico 152,569 112,411 288,595 219,782 Europe (1) 756,264 1,030,546 1,694,933 2,195,430 Asia (2) 1,171,216 641,304 2,097,806 1,228,179 Total net sales $ 8,257,013 $ 8,459,741 $ 17,746,517 $ 18,462,980 ( 1 Europe consists of United Kingdom, Ireland, France, Germany, Austria, and the Netherlands. ( 2 Asia consists of Philippines, Malaysia, and Singapore. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
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 not may not may 10 December 31, 2018, March 29, 2019 |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates. |
Reclassification, Policy [Policy Text Block] | Reclassifications To conform to the current year presentation, certain previously reported 2018 |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost or market and are accounted for on a first first January 1, 2019, 2019, Sales aids and promotional materials inventories represent distributor kits, product brochures, and other sales and business development materials which are held for sale to distributors. Cost of the sales aids and promotional materials held for sale are capitalized as inventories and subsequently recorded to costs of goods sold upon recognition of revenue when sold to distributors. All other advertising and promotional costs are expensed when incurred. |
Consolidation, Variable Interest Entity, Policy [Policy Text Block] | Variable Interest Entities (VIE) - Unconsolidated Effective January 1, 2019, We do not not not not See Note 2 3 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Risk Effective January 1, 2019, 2 3 |
New Accounting Pronouncements, Policy [Policy Text Block] | New Accounting Pronouncements – Not In June 2016, No. 2016 13, Credit Losses (Topic 326 may may January 1, 2020, New Accounting Pronouncements – Adopted January 1, 2019 Lessee Accounting On January 1, 2019, No. 2016 02, Leases (Topic 842 not $451,000 $457,000, At adoption, we used the new lease accounting standard’s package of practical expedients permitted under the transition guidance that allowed us to not not twelve Operating lease liabilities and related operating lease right-to-use assets are recognized at commencement date of the lease based on the present value of lease payments over the lease term. When leases do not See Note 7 Less or Accounting – Other Revenue Other revenue consists of revenue derived from our leasing a portion of our headquarters building to Nutracom, LLC (Nutracom). We recognize lessor rent revenue on a straight-line basis over the term of the lease. As part of this straight-line methodology, the cumulative rental billings may Also included in other revenue are billings to the tenant for its share of the facility’s common area costs such as real estate taxes, maintenance, and utilities. These same common area costs plus the tenant’s share of the facilities’ depreciation are recorded as cost of goods sold. See Note 2 3 7 |
Going Concern [Policy Text Block] | Going Concern We have incurred operating losses, declining net sales, and negative net cash flows over our most recent five not June 30, 2019, $1,918,721 may not one not twelve We may not may not not We have taken several steps in 2019 $500,000 $750,000 $750,000 April 28, 2020. As detailed in Note 2 January 1, 2019, $100,000 Should the aforementioned changes to our operations not may These actions may may not not may no |
Note 3 - Related Parties (Table
Note 3 - Related Parties (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Related Party Transactions [Table Text Block] | June 30 December 31 Assets and liabilities - related parties 2019 2018 Notes & accounts receivables and deposits - current Deposits with Nutracom for inventory $ 827,356 $ - Notes receivable - distributor 126,778 123,040 Other miscellaneous receivables 72,992 28,182 $ 1,027,126 $ 151,222 Notes & accounts receivables - non-current Notes receivable - distributor $ 1,217,735 $ 1,282,072 Notes receivable - Nutracom unsecured DTD 1/1/2019 764,344 - Notes receivable - Nutracom unsecured DTD 6/1/2019 460,583 - Unbilled receivables: Straight line rent revenue greater than rental billings 47,866 - $ 2,490,528 $ 1,282,072 Equity investment in Nutracom $ 505,000 - Liability captions with Nutracom balances included therein Trade accounts payable and other accrued expenses $ 62,849 - Deferred rent liability 125,000 - Six months ended June 30 Revenue and expense - related parties 2019 2018 Other revenue $ 332,657 $ - Selling, general and administrative expense: Fullfillment & professional fees 305,910 - Interest income on promissory notes 92,668 44,778 Gain on sale of fixed assets 434,549 - Finished goods inventory purchased from Nutracom $ 2,763,000 - |
Schedule of Principal Payments on Notes Receivables - Related Parties [Table Text Block] | Remainder of 2019 $ 62,441 2020 130,629 2021 274,844 2022 292,377 2023 311,033 Thereafter 1,498,116 $ 2,569,440 |
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | 2019 January 1, 2019 Sale of fixed assets $ 1,000,000 Sale of inventories 1,559,488 First year building rental received in advance 250,000 Acquire company common stock for treasury 540,144 Acquire equity investment in Nutracom 505,000 Secured promissory note received 1,000,000 Unsecured promissory note received 764,344 June 1, 2019 Secured promissory note receivable balance decreased; applied as reduction to outstanding trade accounts payable 500,000 Unsecured promissory note received in exchange for remaining secured promissory note balance and other considerations 460,583 |
Note 4 - Basic and Diluted Ea_2
Note 4 - Basic and Diluted Earnings (Loss) Per Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Six months ended June 30 June 30 2019 2018 2019 2018 Numerator: Net income (loss) $ (388,105 ) $ (977,954 ) $ 235,539 $ (1,216,259 ) Denominator: Denominator for basic earnings (loss) per share – weighted average shares 1,746,000 1,845,000 1,746,000 1,845,000 Dilutive effect of employee stock options and other warrants - - - - Denominator for diluted earnings (loss) per share – adjusted weighted average shares 1,746,000 1,845,000 1,746,000 1,845,000 Basic earnings (loss) per share $ (0.22 ) $ (0.53 ) $ 0.13 $ (0.66 ) Diluted earnings (loss) per share $ (0.22 ) $ (0.53 ) $ 0.13 $ (0.66 ) |
Note 5 - Fair Value of Financ_2
Note 5 - Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Fair Value, by Balance Sheet Grouping [Table Text Block] | Carrying Fair Description Amount Value Level 1 Level 2 Level 3 June 30, 2019 Revolving line of credit $ 500,000 $ 500,000 - $ 500,000 - Note receivable - distributor 1,344,513 1,474,000 - 1,474,000 - Notes receivable - Nutracom 1,224,927 1,224,927 - 1,224,927 - Marketable securities 408,000 408,000 $ 408,000 - - December 31, 2018 Note receivable - distributor $ 1,405,112 $ 1,529,000 - $ 1,529,000 - Marketable securities 339,000 339,000 $ 339,000 - - |
Note 7 - Leases (Tables)
Note 7 - Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Remainder of 2019 $ 118,728 2020 185,980 2021 19,588 2022 14,781 2023 5,557 Thereafter - Total operating lease payments 344,634 Less: imputed interest (14,250 ) Total operating lease liabilities $ 330,384 |
Lease, Cost [Table Text Block] | Operating lease expense: Three months ended Six months ended June 30, 2019 June 30, 2019 Fixed $ 60,269 $ 124,972 Variable 4,023 9,472 Short-term 5,265 15,036 Total $ 69,557 $ 149,480 |
Lessor, Operating Lease, Payments to be Received, Maturity [Table Text Block] | Estimated Straight-line Lease Agreement Rent Revenue Fixed Rent Remainder of 2019 $ 172,866 $ 125,000 2020 345,732 192,900 2021 345,732 385,800 2022 345,732 385,800 2023 345,732 385,800 Thereafter 691,465 819,825 Total $ 2,247,259 $ 2,295,125 |
Note 9 - Revenue Recognition (T
Note 9 - Revenue Recognition (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended June 30 Six months ended June 30 2019 2018 2019 2018 Net sales by product category Nutritional and dietary supplements $ 7,284,897 $ 7,606,674 $ 15,782,247 $ 16,676,031 Sales aids, membership fees, and other 318,144 313,922 631,791 635,946 Freight income 479,881 539,145 999,822 1,151,003 Other revenue 174,091 - 332,657 - Total net sales $ 8,257,013 $ 8,459,741 $ 17,746,517 $ 18,462,980 |
Revenue from External Customers by Geographic Areas [Table Text Block] | Three months ended June 30 Six months ended June 30 2019 2018 2019 2018 Net sales by geographic region United States $ 5,904,605 $ 6,336,387 $ 13,016,378 $ 14,006,448 Australia/New Zealand 132,330 177,536 309,377 409,464 Canada 140,029 161,557 339,428 403,677 Mexico 152,569 112,411 288,595 219,782 Europe (1) 756,264 1,030,546 1,694,933 2,195,430 Asia (2) 1,171,216 641,304 2,097,806 1,228,179 Total net sales $ 8,257,013 $ 8,459,741 $ 17,746,517 $ 18,462,980 |
Note 1 - Accounting Policies (D
Note 1 - Accounting Policies (Details Textual) - USD ($) | Jan. 01, 2019 | Jun. 30, 2019 | Mar. 25, 2019 | Jan. 31, 2019 | Dec. 31, 2018 | Sep. 11, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Operating Lease, Right-of-Use Asset | $ 337,858 | |||||||
Operating Lease, Liability, Total | 330,384 | |||||||
Cash and Cash Equivalents, at Carrying Value, Ending Balance | 1,918,721 | $ 1,989,974 | $ 2,764,088 | $ 3,272,788 | ||||
Nutracom, LLC [Member] | ||||||||
Purchase Agreement, Payments Made Per Year | $ 100,000 | |||||||
Revolving Credit Facility [Member] | ||||||||
Long-term Line of Credit, Total | $ 500,000 | |||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | $ 750,000 | $ 750,000 | $ 750,000 | ||||
Accounting Standards Update 2016-02 [Member] | ||||||||
Operating Lease, Right-of-Use Asset | 451,000 | |||||||
Operating Lease, Liability, Total | $ 457,000 |
Note 2 - Sale of Manufacturin_2
Note 2 - Sale of Manufacturing Operations' Assets (Details Textual) - USD ($) | Jun. 01, 2019 | Jan. 01, 2019 | Jun. 30, 2019 | Jan. 01, 2020 | Dec. 31, 2018 |
Lessor, Operating Lease, Term of Contract | 7 years | ||||
Lessor, Operating Lease, Renewal Term | 5 years | ||||
Nutracom, LLC [Member] | |||||
Supply Commitment, Term | 7 years | ||||
Lessor, Operating Lease, Term of Contract | 7 years | ||||
Lessor, Operating Lease, Renewal Term | 5 years | ||||
Shares Transferred From Related Parties | 99,200 | ||||
Shares Transferred From Related Parties, Value | $ 540,144 | ||||
Equity Interest Issued from Related Parties as Consideration | 15.00% | ||||
Equity Interest Issued from Related Parties as Consideration, Value | $ 505,000 | ||||
Increase (Decrease) in Notes Receivables | $ (500,000) | $ (500,000) | |||
Secured Promissory Note Exchanged for Unsecured Promissory Note | 460,583 | 460,583 | |||
Nutracom, LLC [Member] | Secured Promissory Note [Member] | |||||
Notes Receivable, Related Parties, Noncurrent | $ 1,000,000 | ||||
Notes Receivable, Related Parties, Term | 7 years | ||||
Notes Receivable, Related Parties, Interest Rate | 5.50% | ||||
Increase (Decrease) in Notes Receivable, Related Parties | (500,000) | ||||
Nutracom, LLC [Member] | Unsecured Promissory Note, 7 Percent Interest Rate [Member] | |||||
Notes Receivable, Related Parties, Noncurrent | $ 764,344 | 764,344 | |||
Notes Receivable, Related Parties, Term | 7 years | ||||
Notes Receivable, Related Parties, Interest Rate | 7.00% | ||||
Notes Receivable, Interest Only Period | 2 years | ||||
Notes Receivable, Related Parties, Amortization Period | 10 years | ||||
Nutracom, LLC [Member] | Unsecured Promissory Note, 6 Percent Interest Rate [Member] | |||||
Notes Receivable, Related Parties, Noncurrent | $ 460,583 | $ 460,583 | |||
Notes Receivable, Related Parties, Interest Rate | 6.00% | ||||
Notes Receivable, Principal and Interest Payments | $ 8,904 | ||||
Notes Receivable, Payment Term | 5 years | ||||
Nutracom, LLC [Member] | Minimum [Member] | |||||
Operating Lease, Lease Annual Income | $ 193,000 | ||||
Nutracom, LLC [Member] | Minimum [Member] | Forecast [Member] | |||||
Percentage of Annual Revenues of Non-related Parties from Equity Interest | 1.00% | ||||
Nutracom, LLC [Member] | Maximum [Member] | |||||
Operating Lease, Lease Annual Income | 410,000 | ||||
Nutracom, LLC [Member] | Maximum [Member] | Forecast [Member] | |||||
Percentage of Annual Revenues of Non-related Parties from Equity Interest | 1.25% | ||||
Machinery and Other Equipment Sold to Nutracom [Member] | |||||
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | 435,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Inventories Sold to Nutracom [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | 1,560,000 | ||||
Disposal Group, Disposed of by Sale, Not Discontinued Operations [Member] | Machinery and Other Equipment Sold to Nutracom [Member] | |||||
Disposal Group, Including Discontinued Operation, Consideration | 1,000,000 | ||||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment, Current | $ 565,000 |
Note 3 - Related Parties (Detai
Note 3 - Related Parties (Details Textual) $ in Millions | Jun. 30, 2019USD ($) |
Purchase Obligation, Total | $ 1.4 |
Note 3 - Related Parties - Rela
Note 3 - Related Parties - Related Party Activities (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 01, 2019 | Dec. 31, 2018 | |
Total notes & accounts receivables and deposits | $ 1,027,126 | $ 1,027,126 | $ 151,222 | |||
Total noncurrent notes receivables | 2,490,528 | 2,490,528 | 1,282,072 | |||
Equity investment in Nutracom | 505,000 | 505,000 | ||||
Other revenue | 332,657 | |||||
Fullfillment & professional fees | 305,910 | |||||
Interest income on promissory notes | 92,668 | 44,778 | ||||
Gain on sale of fixed assets | $ (962) | 434,549 | 2,838 | |||
Unbilled Revenues [Member] | ||||||
Unbilled receivables: Straight line rent revenue greater than rental billings | 47,866 | 47,866 | ||||
Nutracom, LLC [Member] | ||||||
Deposits with Nutracom for inventory | 827,356 | 827,356 | ||||
Equity investment in Nutracom | 505,000 | 505,000 | ||||
Trade accounts payable and other accrued expenses | 62,849 | 62,849 | ||||
Deferred rent liability | 125,000 | 125,000 | ||||
Gain on sale of fixed assets | 434,549 | |||||
Finished goods inventory purchased from Nutracom | 2,763,000 | |||||
Nutracom, LLC [Member] | Unsecured Promissory Note, 7 Percent Interest Rate [Member] | ||||||
Notes Receivable, Related Parties, Noncurrent | 764,344 | 764,344 | $ 764,344 | |||
Nutracom, LLC [Member] | Unsecured Promissory Note, 6 Percent Interest Rate [Member] | ||||||
Notes Receivable, Related Parties, Noncurrent | 460,583 | 460,583 | $ 460,583 | |||
Distributor [Member] | ||||||
Notes receivable | 126,778 | 126,778 | 123,040 | |||
Notes Receivable, Related Parties, Noncurrent | 1,217,735 | 1,217,735 | 1,282,072 | |||
Nutracom LLC and Distributor [Member] | ||||||
Total notes & accounts receivables and deposits | $ 72,992 | $ 72,992 | $ 28,182 |
Note 3 - Related Parties - Sche
Note 3 - Related Parties - Schedule of Principal Payments (Details) - Nutracom LLC and Distributor [Member] | Jun. 30, 2019USD ($) |
Remainder of 2019 | $ 62,441 |
2020 | 130,629 |
2021 | 274,844 |
2022 | 292,377 |
2023 | 311,033 |
Thereafter | 1,498,116 |
Total Notes Receivables | $ 2,569,440 |
Note 3 - Related Parties - Supp
Note 3 - Related Parties - Supplemental Cash Flow Information (Details) - USD ($) | Jun. 01, 2019 | Mar. 31, 2019 | Jun. 30, 2019 |
Acquire company common stock for treasury | $ 540,144 | ||
Nutracom, LLC [Member] | |||
Acquire company common stock for treasury | $ 540,144 | ||
Acquire equity investment in Nutracom | 505,000 | ||
Secured promissory note receivable balance decreased; applied as reduction to outstanding trade accounts payable | $ 500,000 | 500,000 | |
Unsecured promissory note received in exchange for remaining secured promissory note balance and other considerations | $ 460,583 | 460,583 | |
Nutracom, LLC [Member] | Sale of Fixed Assets [Member] | |||
Sale of fixed assets | 1,000,000 | ||
Nutracom, LLC [Member] | Sale of Inventories [Member] | |||
Sale of fixed assets | 1,559,488 | ||
Nutracom, LLC [Member] | First Year Building Rental Received in Advance [Member] | |||
First year building rental received in advance | 250,000 | ||
Nutracom, LLC [Member] | Secured Promissory Note [Member] | |||
Promissory note received | 1,000,000 | ||
Nutracom, LLC [Member] | Unsecured Promissory Note Received [Member] | |||
Promissory note received | $ 764,344 |
Note 4 - Basic and Diluted Ea_3
Note 4 - Basic and Diluted Earnings (Loss) Per Share (Details Textual) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 85,203 | 120,242 | 85,203 | 120,242 |
Note 4 - Basic and Diluted Ea_4
Note 4 - Basic and Diluted Earnings (Loss) Per Share - Basic and Diluted Earnings (Loss) Per Share (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net income (loss) | $ (388,105) | $ 623,644 | $ (977,954) | $ (238,305) | $ 235,539 | $ (1,216,259) |
Denominator for basic earnings (loss) per share – weighted average shares (in shares) | 1,746,000 | 1,845,000 | 1,746,000 | 1,845,000 | ||
Dilutive effect of employee stock options and other warrants (in shares) | ||||||
Denominator for diluted earnings (loss) per share – adjusted weighted average shares (in shares) | 1,746,000 | 1,845,000 | 1,746,000 | 1,845,000 | ||
Basic earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.53) | $ 0.13 | $ (0.66) | ||
Diluted earnings (loss) per share (in dollars per share) | $ (0.22) | $ (0.53) | $ 0.13 | $ (0.66) |
Note 5 - Fair Value of Financ_3
Note 5 - Fair Value of Financial Instruments - Summary of Financial Instruments (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 |
Reported Value Measurement [Member] | ||
Revolving line of credit | $ 500,000 | |
Marketable securities | 408,000 | $ 339,000 |
Reported Value Measurement [Member] | Distributor [Member] | ||
Note receivable | 1,344,513 | 1,405,112 |
Reported Value Measurement [Member] | Nutracom, LLC [Member] | ||
Note receivable | 1,224,927 | |
Estimate of Fair Value Measurement [Member] | ||
Revolving line of credit | 500,000 | |
Marketable securities | 408,000 | 339,000 |
Estimate of Fair Value Measurement [Member] | Distributor [Member] | ||
Note receivable | 1,474,000 | 1,529,000 |
Estimate of Fair Value Measurement [Member] | Nutracom, LLC [Member] | ||
Note receivable | 1,224,927 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Revolving line of credit | ||
Marketable securities | 408,000 | 339,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Distributor [Member] | ||
Note receivable | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | Nutracom, LLC [Member] | ||
Note receivable | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Revolving line of credit | 500,000 | |
Marketable securities | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Distributor [Member] | ||
Note receivable | 1,474,000 | 1,529,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Nutracom, LLC [Member] | ||
Note receivable | 1,224,927 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Revolving line of credit | ||
Marketable securities | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Distributor [Member] | ||
Note receivable | ||
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | Nutracom, LLC [Member] | ||
Note receivable |
Note 6 - Debt (Details Textual)
Note 6 - Debt (Details Textual) - USD ($) | Mar. 25, 2019 | Sep. 11, 2018 | Jun. 30, 2019 | Jan. 31, 2019 | Dec. 31, 2018 |
Line of Credit, Current | $ 500,000 | ||||
Revolving Credit Facility [Member] | |||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 750,000 | $ 750,000 | 750,000 | $ 750,000 | |
Line of Credit, Current | $ 500,000 | $ 500,000 | $ 0 | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.48% | ||||
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | |||||
Debt Instrument, Basis Spread on Variable Rate | 3.00% | 2.25% |
Note 7 - Leases (Details Textua
Note 7 - Leases (Details Textual) - USD ($) | Jan. 01, 2019 | Jun. 30, 2019 |
Operating Lease, Weighted Average Remaining Lease Term | 1 year 292 days | |
Operating Lease, Weighted Average Discount Rate, Percent | 5.20% | |
Operating Lease, Payments | $ 134,600 | |
Lessor, Operating Lease, Term of Contract | 7 years | |
Lessor, Operating Lease, Renewal Term | 5 years | |
Minimum [Member] | ||
Lessee, Operating Lease, Term of Contract | 1 year | |
Operating Lease, Lease Income, Lease Payments | $ 193,000 | |
Maximum [Member] | ||
Lessee, Operating Lease, Term of Contract | 5 years | |
Operating Lease, Lease Income, Lease Payments | $ 410,000 |
Note 7 - Leases - Maturity of O
Note 7 - Leases - Maturity of Operating Lease Liability (Details) | Jun. 30, 2019USD ($) |
Remainder of 2019 | $ 118,728 |
2020 | 185,980 |
2021 | 19,588 |
2022 | 14,781 |
2023 | 5,557 |
Thereafter | |
Total operating lease payments | 344,634 |
Less: imputed interest | (14,250) |
Total operating lease liabilities | $ 330,384 |
Note 7 - Leases - Operating Lea
Note 7 - Leases - Operating Lease Liability Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Fixed | $ 60,269 | $ 124,972 |
Variable | 4,023 | 9,472 |
Short-term | 5,265 | 15,036 |
Total | $ 69,557 | $ 149,480 |
Note 7 - Leases - Operating L_2
Note 7 - Leases - Operating Lease, Payments to be Received (Details) | Jun. 30, 2019USD ($) |
Fixed-price Contract [Member] | |
Remainder of 2019 | $ 125,000 |
2020 | 192,900 |
2021 | 385,800 |
2022 | 385,800 |
2023 | 385,800 |
Thereafter | 819,825 |
Total | 2,295,125 |
Valuation Technique, Straight-Line [Member] | |
Remainder of 2019 | 172,866 |
2020 | 345,732 |
2021 | 345,732 |
2022 | 345,732 |
2023 | 345,732 |
Thereafter | 691,465 |
Total | $ 2,247,259 |
Note 8 - Income Taxes (Details
Note 8 - Income Taxes (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended | 36 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2011 | Dec. 31, 2006 | Dec. 31, 2018 | |
Effective Income Tax Rate Reconciliation, Percent, Total | 32.00% | (3.40%) | |||
VAT and Withholding Taxes | $ 800,000 | ||||
Interest Penalty Percentage | 20.00% | ||||
Payments for Good Faith Deposits to Local Tax Authority Under Tax Agency's Adminstrative Judicial Resolution Process | $ 173,000 | ||||
Reserve for Tax Deficiencies of Subsidiaries [Member] | |||||
Loss Contingency Accrual, Ending Balance | $ 172,500 |
Note 9 - Revenue Recognition (D
Note 9 - Revenue Recognition (Details Textual) | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Contract with Customer, Returns as Percent of Net Sales | 0.07% | 0.26% |
Number of Reportable Segments | 1 | |
Number of Operating Segments | 6 | |
Minimum [Member] | ||
Contract with Customer, Distributor Discount | 20.00% | |
Maximum [Member] | ||
Contract with Customer, Distributor Discount | 40.00% |
Note 9 - Revenue Recognition -
Note 9 - Revenue Recognition - Net Sales by Product Category (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Net Revenues | $ 8,257,013 | $ 8,459,741 | $ 17,746,517 | $ 18,462,980 |
Nutritional and Dietary Supplements [Member] | ||||
Net Revenues | 7,284,897 | 7,606,674 | 15,782,247 | 16,676,031 |
Sales Aids, Membership Fees, and Other [Member] | ||||
Net Revenues | 318,144 | 313,922 | 631,791 | 635,946 |
Freight Income [Member] | ||||
Net Revenues | 479,881 | 539,145 | 999,822 | 1,151,003 |
Service, Other [Member] | ||||
Net Revenues | $ 174,091 | $ 332,657 |
Note 9 - Revenue Recognition _2
Note 9 - Revenue Recognition - Net Sales by Geographic Region (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Net Revenues | $ 8,257,013 | $ 8,459,741 | $ 17,746,517 | $ 18,462,980 | |
UNITED STATES | |||||
Net Revenues | 5,904,605 | 6,336,387 | 13,016,378 | 14,006,448 | |
Australia, New Zealand [Member] | |||||
Net Revenues | 132,330 | 177,536 | 309,377 | 409,464 | |
CANADA | |||||
Net Revenues | 140,029 | 161,557 | 339,428 | 403,677 | |
MEXICO | |||||
Net Revenues | 152,569 | 112,411 | 288,595 | 219,782 | |
Europe [Member] | |||||
Net Revenues | [1] | 756,264 | 1,030,546 | 1,694,933 | 2,195,430 |
Asia [Member] | |||||
Net Revenues | [2] | $ 1,171,216 | $ 641,304 | $ 2,097,806 | $ 1,228,179 |
[1] | Europe consists of United Kingdom, Ireland, France, Germany, Austria, and the Netherlands. | ||||
[2] | Asia consists of Philippines, Malaysia, and Singapore. |