Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Jun. 30, 2014 | Sep. 04, 2014 | Dec. 31, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'Lifevantage Corp | ' | ' |
Entity Central Index Key | '0000849146 | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 30-Jun-14 | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Fiscal Year Focus | '2014 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Current Fiscal Year End Date | '--06-30 | ' | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Filer Category | 'Accelerated Filer | ' | ' |
Entity Public Float | ' | ' | $171.40 |
Entity Common Stock, Shares Outstanding | ' | 100,717,598 | ' |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Current assets | ' | ' |
Cash and cash equivalents | $20,387 | $26,299 |
Accounts receivable | 1,317 | 1,789 |
Income tax receivable | 4,681 | 2,150 |
Inventory | 8,826 | 10,524 |
Current deferred income tax asset | 158 | 2,885 |
Prepaid expenses and deposits | 4,604 | 2,294 |
Total current assets | 39,973 | 45,941 |
Long-term assets | ' | ' |
Property and equipment, net | 6,941 | 5,692 |
Intangible assets, net | 2,014 | 1,747 |
Deferred debt offering costs, net | 1,353 | 0 |
Long-term deferred income tax asset | 1,285 | 730 |
Other Assets, Noncurrent | 2,433 | 1,374 |
TOTAL ASSETS | 53,999 | 55,484 |
Current liabilities | ' | ' |
Accounts payable | 2,854 | 5,171 |
Commissions payable | 7,594 | 7,564 |
Other accrued expenses | 7,554 | 7,831 |
Current portion of long-term debt | 4,700 | 0 |
Total current liabilities | 22,702 | 20,566 |
Long-term debt | ' | ' |
Principal amount | 26,125 | 0 |
Less: unamortized discount | -1,052 | 0 |
Long-term debt, net of unamortized discount | 25,073 | 0 |
Other long-term liabilities | 2,234 | 973 |
Total liabilities | 50,009 | 21,539 |
Commitments and contingencies- Note 11 | ' | ' |
Stockholders’ equity | ' | ' |
Preferred stock — par value $0.001, 50,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock — par value $0.001, 250,000 shares authorized and 102,173 and 117,088 issued and outstanding as of June 30, 2014 and 2013, respectively | 102 | 121 |
Additional paid-in capital | 115,244 | 110,413 |
Accumulated deficit | -111,240 | -76,476 |
Accumulated other comprehensive loss | -116 | -113 |
Total stockholders’ equity | 3,990 | 33,945 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $53,999 | $55,484 |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.00 | $0.00 |
Preferred stock, shares authorized | 50,000,000 | 50,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 102,173,000 | 117,088,000 |
Common stock, shares outstanding | 102,173,000 | 117,008,000 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations and Comprehensive Income (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income Statement [Abstract] | ' | ' | ' |
Revenue, net | $213,968 | $208,178 | $126,183 |
Cost of sales | 33,194 | 31,845 | 18,052 |
Product recall costs | 0 | 4,798 | 0 |
Gross profit | 180,774 | 171,535 | 108,131 |
Operating expenses: | ' | ' | ' |
Commission and incentives | 104,525 | 101,737 | 57,955 |
Selling, general and administrative | 56,801 | 57,730 | 28,719 |
Total operating expenses | 161,326 | 159,467 | 86,674 |
Operating income | 19,448 | 12,068 | 21,457 |
Other expense, net | ' | ' | ' |
Interest expense | -3,177 | -3 | -8 |
Other income (expense), net | 384 | -912 | -36 |
Change in fair value of derivative liabilities | 0 | 0 | -6,741 |
Total other expense, net | -2,793 | -915 | -6,785 |
Net income before income taxes | 16,655 | 11,153 | 14,672 |
Income tax expense | -5,272 | -3,545 | -2,203 |
Net income | 11,383 | 7,608 | 12,469 |
Net income per share: | ' | ' | ' |
Basic (dollars per shares) | $0.11 | $0.07 | $0.12 |
Diluted (dollars per share) | $0.10 | $0.06 | $0.11 |
Weighted average shares outstanding: | ' | ' | ' |
Basic (in shares) | 105,791 | 112,276 | 102,696 |
Diluted (in shares) | 111,599 | 122,888 | 118,331 |
Other comprehensive income (loss), net of tax: | ' | ' | ' |
Foreign currency translation adjustment | -3 | -92 | 38 |
Other comprehensive income (loss), net of tax: | -3 | -92 | 38 |
Comprehensive income | $11,380 | $7,516 | $12,507 |
Consolidated_Statements_of_Sto
Consolidated Statements of Stockholders' Equity (Deficit) (USD $) | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
In Thousands, unless otherwise specified | |||||
Beginning Balances at Jun. 30, 2011 | ($20,808) | $99 | $67,606 | ($88,454) | ($59) |
Beginning Balances, Shares at Jun. 30, 2011 | ' | 98,794 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Stock-based compensation | 1,323 | ' | 1,323 | ' | ' |
Exercise of options and warrants, shares | ' | 11,909 | ' | ' | ' |
Exercise of options and warrants | 19,759 | 12 | 19,747 | ' | ' |
Issuance of shares related to restricted stock (shares) | ' | 149 | ' | ' | ' |
Repurchase of company stock, shares | ' | -678 | ' | ' | ' |
Repurchase of company stock | -976 | ' | ' | -976 | ' |
Reclassification of liability warrants | 16,478 | ' | 16,478 | ' | ' |
Currency translation adjustment | 38 | ' | ' | ' | 38 |
Net income | 12,469 | ' | ' | 12,469 | ' |
Ending Balances at Jun. 30, 2012 | 28,283 | 111 | 105,154 | -76,961 | -21 |
Ending Balances, Shares at Jun. 30, 2012 | ' | 110,174 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Stock-based compensation | 2,169 | ' | 2,169 | ' | ' |
Exercise of options and warrants, shares | ' | 7,270 | ' | ' | ' |
Exercise of options and warrants | 3,100 | 7 | 3,093 | ' | ' |
Issuance of shares related to restricted stock (shares) | ' | 2,616 | ' | ' | ' |
Issuance of shares related to restricted stock | 0 | 3 | -3 | ' | ' |
Repurchase of company stock, shares | ' | -2,972 | ' | ' | ' |
Repurchase of company stock | -7,123 | ' | ' | -7,123 | ' |
Currency translation adjustment | -92 | ' | ' | ' | -92 |
Net income | 7,608 | ' | ' | 7,608 | ' |
Ending Balances at Jun. 30, 2013 | 33,945 | 121 | 110,413 | -76,476 | -113 |
Ending Balances, Shares at Jun. 30, 2013 | ' | 117,088 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Stock-based compensation | 2,606 | ' | 2,606 | ' | ' |
Exercise of options and warrants, shares | ' | 5,185 | ' | ' | ' |
Exercise of options and warrants | 2,230 | 5 | 2,225 | ' | ' |
Issuance of shares related to restricted stock (shares) | ' | 225 | ' | ' | ' |
Shares canceled or surrendered as payment of tax withholding (shares) | ' | -686 | ' | ' | ' |
Repurchase of company stock, shares | ' | -19,639 | ' | ' | ' |
Repurchase of company stock | -46,171 | -24 | ' | -46,147 | ' |
Currency translation adjustment | -3 | ' | ' | ' | -3 |
Net income | 11,383 | ' | ' | 11,383 | ' |
Ending Balances at Jun. 30, 2014 | $3,990 | $102 | $115,244 | ($111,240) | ($116) |
Ending Balances, Shares at Jun. 30, 2014 | ' | 102,173 | ' | ' | ' |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $11,383 | $7,608 | $12,469 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Depreciation and amortization | 2,118 | 1,659 | 521 |
Loss on disposal of equipment | 0 | 0 | 37 |
Stock-based compensation | 2,953 | 2,169 | 1,323 |
Amortization of deferred financing fees | 159 | 0 | 0 |
Amortization of debt discount | 122 | 0 | 0 |
Impairment of inventory | 0 | 3,923 | 0 |
Deferred income tax | 2,172 | -892 | -2,723 |
Change in fair value of derivative liabilities | 0 | 0 | 6,741 |
Changes in operating assets and liabilities: | ' | ' | ' |
Decrease/(increase) in receivables | -2,044 | -3,653 | 609 |
Decrease/(increase) in inventory | 1,646 | -3,356 | -9,228 |
Increase in prepaid expenses and deposits | -2,318 | -1,065 | -762 |
Increase in long-term assets | -1,045 | -1,168 | -310 |
Increase/(decrease) in accounts payable | -2,384 | 1,593 | 2,936 |
Increase/(decrease) in accrued expenses | -537 | 3,403 | 7,581 |
Increase/(decrease) in other long-term liabilities | -120 | 441 | 195 |
Net Cash Provided by Operating Activities | 12,105 | 10,662 | 19,389 |
Cash Flows from Investing Activities: | ' | ' | ' |
Redemption of marketable securities | 0 | 0 | 350 |
Purchase of equipment | -1,898 | -5,080 | -2,194 |
Purchase of intangible assets | -350 | 0 | -52 |
Net Cash Used in Investing Activities | -2,248 | -5,080 | -1,896 |
Cash Flows from Financing Activities: | ' | ' | ' |
Proceeds from term loan | 45,825 | 0 | 0 |
Payment of deferred financing fees | -1,511 | 0 | 0 |
Net payments on revolving line of credit and accrued interest | 0 | 0 | -434 |
Excess tax benefits from stock-based compensation | 655 | 1,406 | 388 |
Repurchase of company stock | -46,171 | -7,123 | -976 |
Payment on term loan | -16,175 | 0 | 0 |
Exercise of options and warrants | 1,573 | 1,694 | 1,768 |
Net Cash Provided by (Used in) Financing Activities | -15,804 | -4,023 | 746 |
Foreign Currency Effect on cash | 35 | 92 | 38 |
Increase (Decrease) in cash and cash equivalents | -5,912 | 1,651 | 18,277 |
Cash and Cash Equivalents - beginning of period | 26,299 | 24,648 | 6,371 |
Cash and Cash Equivalents - end of period | 20,387 | 26,299 | 24,648 |
Non Cash Investing and Financing Activities: | ' | ' | ' |
Exercise of warrant liabilities | 0 | 0 | 17,604 |
Increase in property and equipment/other long-term liabilities | 1,386 | 359 | 0 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ' | ' | ' |
Cash paid for interest | 2,758 | 3 | 0 |
Cash paid for income taxes | 4,879 | 6,090 | 3,701 |
Common stock shares issued upon cashless warrant exercises | 2,698 | 3,793 | 10,297 |
Total cashless exercise price of warrants | $1,615 | $2,147 | $5,995 |
Gross warrants underlying cashless exercises | 3,409 | 4,564 | 12,563 |
The_Company
The Company | 12 Months Ended |
Jun. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
The Company | ' |
The Company | |
LifeVantage Corporation is a company dedicated to helping people achieve their health, wellness and financial independence goals. We provide quality, scientifically-validated products and a financially rewarding network marketing business opportunity to customers and independent distributors who seek a healthy lifestyle and financial freedom. We sell our products in the United States, Japan, Hong Kong, Australia, Canada, Philippines, and Mexico primarily through a network of independent distributors, and to preferred customers. | |
We engage in the identification, research, development and distribution of advanced nutraceutical dietary supplements and skin care products, including Protandim®, our scientifically-validated dietary supplement, LifeVantage TrueScience®, our line of anti-aging skin care products launched in fiscal 2014, and Canine Health®, our companion pet supplement formulated to combat oxidative stress in dogs. | |
We were incorporated in Colorado in June 1988 under the name Andraplex Corporation. We changed our corporate name to Yaak River Resources, Inc. in January 1992, and subsequently changed it again in October 2004 to Lifeline Therapeutics, Inc. In October 2004 and March 2005, we acquired all of the outstanding common stock of Lifeline Nutraceuticals Corporation. In November 2006, we changed our name to LifeVantage Corporation. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||
Summary of Significant Accounting Policies | ||||||||||||
Consolidation | ||||||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. During fiscal 2014, the Company combined the line items sales and marketing, general and administrative, research and development, and depreciation and amortization into two line items on the consolidated statements of operations and comprehensive income, namely, commissions and incentives and selling, general and administrative to have a presentation that is more comparable to that of the Company’s peers. The Company reclassified prior period line items to conform to the current period presentation. Certain other prior period balances have also been reclassified to conform to the current period presentation. | ||||||||||||
Use of Estimates | ||||||||||||
We prepare our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (GAAP). In preparing these statements, we are required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, we review our estimates, including those related to inventory obsolescence, sales returns, income taxes and tax valuation reserves, share-based compensation, derivative liabilities and loss contingencies. | ||||||||||||
Fair Value of Financial Instruments | ||||||||||||
Accounting guidance on fair value measurements and disclosures requires disclosures about the fair value for all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about fair value of financial instruments are based on pertinent information available to management as of June 30, 2014 and 2013. Accordingly, the estimates presented in these consolidated financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments. | ||||||||||||
Management has estimated the fair values of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses to approximate their respective carrying values reported in these consolidated financial statements because of their short maturities. | ||||||||||||
Cash and Cash Equivalents | ||||||||||||
The Company considers only its monetary liquid assets with original maturities of three months or less to be cash and cash equivalents. | ||||||||||||
Accounts Receivable | ||||||||||||
The Company’s accounts receivable for the years ended June 30, 2014 and 2013 consist primarily of credit card receivables. Based on the Company’s verification process for customer credit cards and historical information available, management has determined that an allowance for doubtful accounts on credit card sales related to its customer sales as of June 30, 2014 is not necessary. No bad debt expense has been recorded for the years ended June 30, 2014, 2013, and 2012. | ||||||||||||
Inventory | ||||||||||||
As of June 30, 2014 and 2013, inventory consisted of (in thousands): | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Finished goods | $ | 4,749 | $ | 5,273 | ||||||||
Raw materials | 4,077 | 5,251 | ||||||||||
Total inventory | $ | 8,826 | $ | 10,524 | ||||||||
Inventories are carried and depicted above at the lower of cost or market, using the first-in, first-out method, which includes a reduction in inventory values of $0.7 million at June 30, 2014 related to obsolete and slow-moving inventory and $3.9 million at June 30, 2013, primarily related to our voluntary recall in December 2012. | ||||||||||||
Property and Equipment | ||||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: | ||||||||||||
Years | ||||||||||||
Equipment (includes computer hardware and software) | 3 | |||||||||||
Furniture and fixtures | 5 | |||||||||||
Leasehold improvements | * | |||||||||||
Vehicles | 5 | |||||||||||
*Leasehold improvements are depreciated over the shorter of estimated useful life of the related asset or the lease term. | ||||||||||||
The cost of normal maintenance and repairs is charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the Consolidated Statements of Operations and Comprehensive Income. Significant expenditures that increase the useful life of an asset are capitalized and depreciated over the estimated useful life of the asset. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. | ||||||||||||
Intangible Assets | ||||||||||||
Intangible assets are stated at cost less accumulated amortization. Definite-lived intangible assets are amortized over their related useful lives, using a straight-line method, consistent with the underlying expected future cash flows related to the specific intangible asset. Definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances exist that indicate the carrying amount of an asset may not be recoverable. When indicators of impairment exist, an estimate of undiscounted net cash flows is used in measuring whether the carrying amount of the asset or related asset group is recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. | ||||||||||||
Indefinite-lived intangible assets are not amortized; however, they are tested at least annually for impairment or more frequently if events or changes in circumstances exist that may indicate impairment. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Annual impairment tests were completed resulting in no impairment charges for any of the periods shown. | ||||||||||||
Impairment of Long-Lived Assets | ||||||||||||
Pursuant to guidance established for impairment or disposal of assets, the Company assesses impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. When an assessment for impairment of long-lived assets, long-lived assets to be disposed of, and certain identifiable intangibles related to those assets is performed, the Company is required to compare the net carrying value of long-lived assets on the lowest level at which cash flows can be determined on a consistent basis to the related estimates of future undiscounted net cash flows for such assets. If the net carrying value exceeds the net cash flows, then an impairment is recognized to reduce the carrying value to the estimated fair value, generally equal to the future discounted net cash flow. For the years ended June 30, 2014 and 2013 management has concluded that there are no indications of impairment. | ||||||||||||
Concentration of Credit Risk | ||||||||||||
Accounting guidance for financial instruments requires disclosure of significant concentrations of credit risk regardless of the degree of such risk. Financial instruments with significant credit risk include cash and cash equivalents. At June 30, 2014, the Company had $17.6 million in cash accounts at one financial institution and $2.8 million in other financial institutions. As of June 30, 2014 and 2013 and throughout the year the Company’s cash balances exceeded federally insured limits. | ||||||||||||
Revenue Recognition | ||||||||||||
The Company ships the majority of its product directly to the consumer and receives substantially all payment for these sales in the form of credit card receipts. Revenue from direct product sales to customers is recognized upon passage of title and risk of loss. Estimated returns are recorded when product is shipped. The Company’s return policy is to provide a full refund for product returned within 30-days if the returned product is unopened or defective. After 30 days, the Company generally does not issue refunds to direct sales customers for returned product. The Company allows terminating distributors to return up to 30% of unopened, unexpired product that they have purchased within the prior twelve months for a full refund, less a 10% restocking fee. The Company establishes the returns reserve based on historical experience. The returns reserve is evaluated on a quarterly basis. As of June 30, 2014 and 2013, the Company’s reserve balance for returns and allowances was $0.6 million and $0.6 million, respectively. | ||||||||||||
Commission and Incentives | ||||||||||||
Commission and incentive expenses are the Company’s most significant expenses and are classified as operating expenses. Commission and incentive expenses include sales commissions paid to our independent distributors, special incentives, costs for incentive trips and other rewards. Commission and incentive expenses do not include any amounts we pay to our independent distributors for personal purchases. Commissions paid to independent distributors on personal purchases are considered a sales discount and are reported as a reduction to our net revenue. | ||||||||||||
Shipping and Handling | ||||||||||||
Shipping and handling costs associated with inbound freight and freight out to customers including independent distributors, are included in cost of sales. Shipping and handling fees charged to all customers are included in sales. | ||||||||||||
Research and Development Costs | ||||||||||||
The Company expenses all costs related to research and development activities as incurred. Research and development expenses for the years ended June 30, 2014, 2013, and 2012 were $2.0 million, $2.9 million, and $1.4 million respectively. | ||||||||||||
Stock-Based Compensation | ||||||||||||
The Company recognizes stock-based compensation by measuring the cost of services to be rendered based on the grant date fair value of the equity award. The Company recognizes stock-based compensation, net of any estimated forfeitures, over the period an employee is required to provide service in exchange for the award, generally referred to as the requisite service period. | ||||||||||||
The Black-Scholes option pricing model is used to estimate the fair value of stock options. The determination of the fair value of stock options is affected by the Company's stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The Company uses historical volatility as the expected volatility assumption required in the Black-Scholes model. The Company utilizes a simplified method for estimating the expected life of the options. The Company uses this method because it believes that it provides a better estimate than the Company’s historical data as post vesting exercises have been limited. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the stock options. | ||||||||||||
The fair value of restricted stock grants is based on the closing market price of the Company's stock on the date of grant less the Company's expected dividend yield. The fair value of performance-based awards to be paid in cash, accounted for as liabilities, is remeasured at the end of each reporting period and is based on the closing market price of the Company’s stock on the last day of the reporting period. The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance conditions will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs accordingly. | ||||||||||||
Income Taxes | ||||||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the effective date of the change. | ||||||||||||
The Company recognizes tax benefits from an uncertain position only if it is more likely than not that the position will be sustained upon examination by taxing authorities based on the technical merits of the issue. The amount recognized is the largest benefit that the Company believes has greater than a 50% likelihood of being realized upon settlement. | ||||||||||||
Income Per Share | ||||||||||||
Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period, less unvested restricted stock awards. Diluted income per common share is computed by dividing net income by the weighted-average common shares and potentially dilutive common share equivalents using the treasury stock method. | ||||||||||||
The effects of approximately 0.3 million common shares issuable upon exercise of options and non-vested shares of restricted stock outstanding as of June 30, 2014 are not included in the computations as their effect was anti-dilutive. | ||||||||||||
The following is a reconciliation of earnings per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands, except per share amounts): | ||||||||||||
Year ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 11,383 | $ | 7,608 | $ | 12,469 | ||||||
Denominator: | ||||||||||||
Basic weighted-average common shares outstanding | 105,791 | 112,276 | 102,696 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock awards and options | 2,652 | 3,832 | 5,516 | |||||||||
Warrants | 3,156 | 6,780 | 10,119 | |||||||||
Diluted weighted-average common shares outstanding | 111,599 | 122,888 | 118,331 | |||||||||
Basic | $ | 0.11 | $ | 0.07 | $ | 0.12 | ||||||
Diluted | $ | 0.1 | $ | 0.06 | $ | 0.11 | ||||||
Foreign Currency Translation | ||||||||||||
A portion of the Company’s business operations occurs outside the United States. The local currency of each of the Company’s subsidiaries is generally its functional currency. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the consolidated balance sheets and transaction gains and losses are included in other income (expense), net in the consolidated financial statements. | ||||||||||||
Segment Information | ||||||||||||
The Company operates in a single operating segment by selling products to a global network of independent distributors that operates in an integrated manner from market to market. Commission and incentives expenses are the Company’s largest expense comprised of the commissions paid to its worldwide independent distributors. The Company manages its business primarily by managing its global network of independent distributors. The Company reports revenue in two geographic regions, Americas and Asia/Pacific. Revenues by geographic area are as follows (in thousands): | ||||||||||||
Years ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Americas | $ | 141,227 | $ | 133,046 | $ | 90,122 | ||||||
Asia/Pacific | 72,741 | 75,132 | 36,061 | |||||||||
Total revenues | $ | 213,968 | $ | 208,178 | $ | 126,183 | ||||||
Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): | ||||||||||||
Years ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 136,758 | $ | 131,508 | $ | 89,230 | ||||||
Japan | $ | 61,872 | $ | 69,492 | $ | 35,449 | ||||||
As of June 30, 2014 long-lived assets were $9.8 million in the U.S. and $2.3 million in Japan. As of June 30, 2013 long-lived assets were $4.8 million in the U.S. and $3.0 million in Japan. | ||||||||||||
New Accounting Pronouncements | ||||||||||||
In May 2014, the FASB issued ASC 606, Revenue from Contracts with Customer, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration it expects to receive in exchange for those goods or services. ASC 606 will be effective for the Company in the first quarter of fiscal 2018. The Company has not yet determined the potential effects of the adoption of ASC 606 on its consolidated financial statements. |
Property_and_Equipment
Property and Equipment | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment consist of (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Equipment (includes computer hardware and software) | $ | 6,354 | $ | 5,501 | ||||
Furniture and fixtures | 1,428 | 976 | ||||||
Leasehold improvements | 3,095 | 1,220 | ||||||
Vehicles | 142 | 142 | ||||||
Accumulated depreciation | (4,078 | ) | (2,147 | ) | ||||
Total property and equipment, net | $ | 6,941 | $ | 5,692 | ||||
Depreciation expense totaled $2.0 million, $1.5 million, and $0.4 million for the years ended June 30, 2014, 2013, and 2012, respectively. |
Intangible_Assets
Intangible Assets | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Intangible Assets | ' | |||||||
Intangible Assets | ||||||||
Intangible assets consist of (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Patent costs | $ | 2,330 | $ | 2,321 | ||||
Accumulated amortization | (911 | ) | (776 | ) | ||||
Total definite-lived intangible assets, net | $ | 1,419 | $ | 1,545 | ||||
Trademarks and other indefinite-lived intangible assets | $ | 595 | $ | 202 | ||||
Total intangible assets, net | $ | 2,014 | $ | 1,747 | ||||
Amortization expense totaled $0.1 million, $0.1 million, and $0.1 million for the years ended June 30, 2014, 2013, and 2012 respectively. Annual estimated amortization expense is expected to approximate $0.1 million for each of the five succeeding fiscal years. |
Other_Accrued_Expenses
Other Accrued Expenses | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Other Accrued Expenses | ' | |||||||
Other Accrued Expenses | ||||||||
Other accrued expenses consist of (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Accrued severance | $ | 150 | $ | 1,602 | ||||
Accrued incentives and promotions to distributors | 829 | 1,122 | ||||||
Accrued payroll and other employee expenses | 1,382 | 1,387 | ||||||
Deferred revenue | 887 | 545 | ||||||
Accrued payable to vendors | 910 | 352 | ||||||
Other taxes payable | 1,894 | 944 | ||||||
Reserve for sales returns | 635 | 648 | ||||||
Accrued other expenses | 867 | 1,231 | ||||||
Total other accrued expenses | $ | 7,554 | $ | 7,831 | ||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Debt Disclosure [Abstract] | ' | |||
Long-Term Debt | ' | |||
Long-Term Debt | ||||
On October 18, 2013 the Company entered into a Financing Agreement providing for a term loan facility in an aggregate principal amount of $47 million (the “Term Loan”) and a delayed draw term loan facility in an aggregate principal amount not to exceed $20 million (the “Delayed Draw Term Loan” and collectively with the Term Loan, the “Credit Facility”). The Delayed Draw Term Loan is available for borrowing in specified minimum amounts from time to time beginning after the effective date (as defined in the Financing Agreement) until October 18, 2014 or until the Delayed Draw Term Loan is reduced to zero, if earlier. As of June 30, 2014 the Company had not borrowed any amounts under the Delayed Draw Term Loan. | ||||
The principal amount of the Term Loan is payable in consecutive quarterly installments beginning with the calendar quarter ended March 31, 2014 and matures on the earlier of October 18, 2018 or such date as the outstanding loans become payable in accordance with the terms of the Financing Agreement (the “Final Maturity Date”). In the event the Company borrows under the Delayed Draw Term Loan, the outstanding principal will be payable in consecutive quarterly installments beginning with the calendar quarter ending December 31, 2014 through the Final Maturity Date. Each of the loans will bear interest at a rate equal to 7.5% per annum plus the greater of (i) 1.25% or (ii) LIBOR, or at the Company’s option, a reference rate (as defined in the Financing Agreement) plus 6.5% per annum, with such interest payable monthly. For the year ended June 30, 2014 the average interest rate was 8.75%. | ||||
The Company’s obligations under the Credit Facility are secured by a security interest in substantially all of the Company’s assets. Loans outstanding under the Credit Facility (1) must be prepaid based on certain cash flow metrics and with any net proceeds of certain permitted asset sales and (2) may be prepaid in whole or in part at any time, with any prepayments made prior to the first anniversary of the effective date subject to a prepayment premium. Any principal amount of the loans which is prepaid or repaid may not be re-borrowed. During the year ended June 30, 2014, the Company made voluntary principal payments against the outstanding indebtedness of $13.8 million million under the Term Loan. | ||||
The Credit Facility contains customary negative covenants that, among other things, restrict the Company from undertaking specified corporate actions such as creation of liens, incurrence of additional indebtedness, making certain investments with affiliates, changes of control, having excess foreign cash, issuance of equity, repurchasing the Company's equity securities, and making certain restricted payments, including dividends, without prior approval from the lender. The Credit Facility also contains various financial covenants that require the Company to maintain a certain consolidated EBITDA, certain leverage and fixed charges ratios as well as a minimum level of liquidity. Additionally, the Credit Facility contains cross-default provisions, whereby a default pursuant to the terms and conditions of certain indebtedness will cause a default on the remaining indebtedness under the Credit Facility. At June 30, 2014, the Company was in compliance with the applicable covenants under the Credit Facility. | ||||
The Company incurred transaction costs associated with the Credit Facility totaling $2.7 million, of which $0.3 million was recorded in interest expense during the year ended June 30, 2014. The remaining $2.4 million consists of unamortized deferred debt offering costs and debt discount included in the accompanying consolidated balance sheet and are amortized to interest expense using the interest method. | ||||
The Company’s book value for the Credit Facility approximates the fair value. Aggregate future principal payments required in accordance with the terms of the Credit Facility are as follows (in thousands): | ||||
Year ending June 30, | Amount | |||
2015 | $ | 4,700 | ||
2016 | 4,700 | |||
2017 | 4,700 | |||
2018 | 4,700 | |||
2019 | 4,700 | |||
Thereafter | 7,325 | |||
$ | 30,825 | |||
Stockholders_Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2014 | |
Equity [Abstract] | ' |
Stockholders' Equity | ' |
Stockholders’ Equity | |
During the years ended June 30, 2014, 2013, and 2012, the Company issued 5.2 million, 7.3 million, and 11.9 million shares, respectively, of common stock as a result of the exercise of options and warrants and during the years ended June 30, 2014, 2013, and 2012, the Company issued 0.2 million, 2.6 million, and 0.1 million shares, respectively, of restricted common stock. During the year ended June 30, 2014, 0.7 million shares of restricted stock were canceled or surrendered as payment of tax withholding upon vesting. | |
On June 3, 2014, the Company announced a share repurchase program authorizing it to repurchase up to $4.0 million in shares of the Company's common stock. As part of that repurchase program, the Company entered into a pre-arranged stock repurchase plan that operates in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange. As of June 30, 2014 the Company had not made any purchases of its common stock pursuant to this repurchase program. | |
On March 11, 2014 the Company announced a share repurchase program authorizing it to repurchase up to $3 million of shares of the Company's common stock. As part of that repurchase program, the Company entered into a pre-arranged stock repurchase plan that operated in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934. As of June 30, 2014, the Company had purchased 2.2 million shares of its common stock at an aggregate purchase price of $3 million under this repurchase program. | |
On November 1, 2013, the Company accepted for payment an aggregate of 16.3 million shares of its common stock at an aggregate purchase price of $40 million as a result of its modified Dutch auction tender offer (the "Tender Offer") that expired October 25, 2013. The Company incurred transaction costs of $0.3 million related to the Tender Offer. The Company entered into the Credit Facility to finance this repurchase. (see Note 6). | |
On March 22, 2013 the Company announced a share repurchase program authorizing it to repurchase up to $5 million of shares of the Company's common stock. As part of that repurchase program, the Company entered into a pre-arranged stock repurchase plan that operated in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934. During July 2013, the Company repurchased 1.2 million shares under this repurchase authorization. As of June 30, 2014, the Company had purchased the full $5 million in shares authorized under this repurchase program. | |
The Company’s Articles of Incorporation authorize the issuance of preferred shares. However, as of June 30, 2014, none have been issued nor have any rights or preferences been assigned to the preferred shares by the Company’s Board of Directors. |
ShareBased_Compensation
Share-Based Compensation | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Share-Based Compensation | ' | ||||||||||||
Share-Based Compensation | |||||||||||||
Long-Term Incentive Plans | |||||||||||||
The Company adopted and the shareholders approved the Company’s 2007 Long-Term Incentive Plan (the “2007 Plan”), effective November 21, 2006, to provide incentives to certain employees, directors and consultants. A maximum of 10 million shares of the Company’s common stock can be issued under the 2007 Plan in connection with the grant of awards. Awards to purchase common stock have been granted pursuant to the 2007 Plan and are outstanding to various employees, officers, directors, Scientific Advisory Board members and independent distributors at prices between $0.21 and $1.50 per share, with initial vesting periods of one to three years. Awards expire in accordance with the terms of each award and the shares subject to the award are added back to the 2007 Plan upon expiration of the award. The contractual term of stock options granted is generally ten years. As of June 30, 2014 there were awards outstanding, net of awards expired, for the purchase in aggregate of 2.2 million shares of the Company’s common stock. | |||||||||||||
The Company adopted and the shareholders approved the 2010 Long-Term Incentive Plan (the “2010 Plan”), effective September 27, 2010, as amended on January 10, 2012, to provide incentives to certain employees, directors and consultants who contribute to the strategic and long-term performance objectives and growth of the Company. A maximum of 6.9 million shares of the Company’s common stock can be issued under the 2010 Plan in connection with the grant of awards. Awards to purchase common stock have been granted pursuant to the 2010 Plan and are outstanding to various employees, officers and directors. Outstanding stock options awarded under the 2010 Plan have exercise prices between $0.63 and $3.53 per share, and vest over one to four year vesting periods. Awards expire in accordance with the terms of each award and the shares subject to the award are added back to the 2010 Plan upon expiration of the award. The contractual term of stock options granted is generally ten years. As of June 30, 2014 there were awards outstanding, net of awards expired, for an aggregate of 3.0 million shares of the Company’s common stock. | |||||||||||||
The Company adopted a Performance Incentive Plan (the “Performance Plan”), effective July 1, 2013, to provide selected employees an opportunity to earn performance-based cash bonuses whose value is based upon the Company’s stock value and to encourage such employees to provide services to the Company and to attract new individuals with outstanding qualifications. The Performance Plan seeks to achieve this purpose by providing for awards in the form of performance share units (the “Units”). No shares will be issued under the Performance Plan. Awards may be settled only with cash and will be paid subsequent to award vesting. The fair value of share-based compensation awards, that include performance shares, are accounted for as liabilities. Vesting for the Units is subject to achievement of both service-based and performance-based vesting requirements. Performance-based vesting occurs in three installments if the Company meets certain performance criteria generally set for each year of a three-year performance period. The service-based vesting criteria occurs in three annual installments which are achieved at the end of a given fiscal year only if the participant has continuously remained in service from the date of award through the end of that fiscal year. The fair value of these awards is based on the trading price of our common stock and is remeasured at each reporting period date until settlement. | |||||||||||||
Stock-Based Compensation | |||||||||||||
In accordance with accounting guidance on stock-based compensation, payments in equity instruments for goods or services are accounted for by the fair value method. For the fiscal years ended June 30, 2014, 2013, and 2012, stock-based compensation of $2.6 million, $2.2 million and $1.3 million, respectively, was reflected as an increase to additional paid in capital and $0.3 million was reflected as an increase to other accrued expenses for the fiscal year ended June 30, 2014. There were no increases to other accrued expenses related to stock-based compensation for the fiscal years ended June 30, 2013, and 2012. For the fiscal years ended June 30, 2014 and 2013, all stock-based compensation was employee related. Of the $1.3 million stock-based compensation for the fiscal year ended June 30, 2012, $1.2 million was employee related and $0.1 million was non-employee related. | |||||||||||||
At June 30, 2014 there was $4.1 million of unrecognized compensation cost related to nonvested share-based compensation arrangements under the 2010 Plan, based on management's estimate of the shares that will ultimately vest. The Company expects to recognize such costs over a weighted-average period of 2.5 years. | |||||||||||||
Stock Options | |||||||||||||
The weighted-average grant-date fair value of stock options granted during the fiscal years ended June 30, 2013 and 2012 were $2.49 and $1.63, respectively. There were no stock option grants during the fiscal year ended June 30, 2014. | |||||||||||||
The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values: | |||||||||||||
June 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate | N/A | 0.82% | 0.59% - 1.41% | ||||||||||
Dividend yield | N/A | — | % | — | % | ||||||||
Expected life in years | N/A | 5.0- 6.08 | 3.0 - 6.65 | ||||||||||
Expected volatility | N/A | 127% | 119% - 137% | ||||||||||
The following is a summary of stock option activity for the years ended June 30, 2014, 2013, and 2012: | |||||||||||||
Options (in thousands) | Weighted | Weighted | Aggregate Intrinsic Value (in thousands) | ||||||||||
Average | Average Remaining | ||||||||||||
Exercise Price | Contractual Term (in years) | ||||||||||||
Outstanding at June 30, 2011 | 10,498 | $ | 0.64 | ||||||||||
Granted | 2,086 | $ | 1.89 | ||||||||||
Exercised | (1,612 | ) | 0.45 | $ | 2,038 | ||||||||
Forfeited | (27 | ) | 1.36 | ||||||||||
Expired or Cancelled | — | — | |||||||||||
Outstanding at June 30, 2012 | 10,945 | 0.91 | |||||||||||
Granted | 152 | $ | 2.82 | ||||||||||
Exercised | (3,319 | ) | 0.49 | $ | 7,128 | ||||||||
Forfeited | (768 | ) | 1.54 | ||||||||||
Expired or Cancelled | — | — | |||||||||||
Outstanding at June 30, 2013 | 7,010 | 1.08 | |||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,400 | ) | 0.69 | $ | 2,282 | ||||||||
Forfeited | (469 | ) | 1.84 | ||||||||||
Expired or Cancelled | — | — | |||||||||||
Outstanding at June 30, 2014 | 5,141 | 1.18 | 6.07 | $ | 2,417 | ||||||||
Exercisable at June 30, 2014 | 4,795 | $ | 1.08 | 6.17 | $ | 2,411 | |||||||
Restricted Shares | |||||||||||||
The following is a summary of restricted shares granted during the years ended June 30, 2014, 2013, and 2012: | |||||||||||||
Nonvested Shares | Shares (in thousands) | Weighted Average Grant Date Fair Value | |||||||||||
Nonvested at June 30, 2011 | — | — | |||||||||||
Granted | 164 | $ | 3.34 | ||||||||||
Vested | — | — | |||||||||||
Forfeited | (2 | ) | 3.36 | ||||||||||
Nonvested at June 30, 2012 | 162 | 3.34 | |||||||||||
Vested at June 30, 2012 | — | — | |||||||||||
Granted | 2,808 | $ | 2.62 | ||||||||||
Vested | (37 | ) | 3.34 | ||||||||||
Forfeited | (196 | ) | 3.25 | ||||||||||
Nonvested at June 30, 2013 | 2,737 | 2.61 | |||||||||||
Vested at June 30, 2013 | — | — | |||||||||||
Granted | 225 | $ | 1.79 | ||||||||||
Vested | (760 | ) | 2.65 | ||||||||||
Forfeited | (478 | ) | 2.55 | ||||||||||
Nonvested at June 30, 2014 | 1,724 | 2.46 | |||||||||||
Vested at June 30, 2014 | — | — | |||||||||||
The total vesting date fair value of restricted shares that vested during the years ended June 30, 2014 and 2013 was $1.2 million and $0.1 million, respectively. There were no restricted shares that vested during the year ended June 30, 2012. | |||||||||||||
Performance Share Units | |||||||||||||
The following is a summary of performance share units granted during the year ended June 30, 2014: | |||||||||||||
Number of Units (in thousands) | Weighted Average Grant Date Fair Value | ||||||||||||
Outstanding at June 30, 2013, nonvested | — | $ | — | ||||||||||
Granted | 245 | 1.48 | |||||||||||
Vested | (214 | ) | — | ||||||||||
Forfeited | (31 | ) | 1.51 | ||||||||||
Outstanding at June 30, 2014, nonvested | — | ||||||||||||
The fair value of vested awards under the Performance Plan as of June 30, 2014 was $0.3 million. No payments were made to settle vested performance share units during the year ended June 30, 2014. | |||||||||||||
Warrants | |||||||||||||
As of June 30, 2014, the Company had outstanding warrants which were issued in conjunction with convertible debentures between November 2009 and February 2010. | |||||||||||||
The following is a summary of the warrant activity for the years ended June 30, 2014, 2013, and 2012 (in thousands): | |||||||||||||
Common | |||||||||||||
Stock | |||||||||||||
Warrants | |||||||||||||
Outstanding and exercisable, June 30, 2011 | 25,460 | ||||||||||||
Issued | 270 | ||||||||||||
Cancelled | — | ||||||||||||
Exercised | (12,563 | ) | |||||||||||
Expired | (203 | ) | |||||||||||
Outstanding and exercisable at June 30, 2012 | 12,964 | ||||||||||||
Issued | — | ||||||||||||
Cancelled | — | ||||||||||||
Exercised | (4,723 | ) | |||||||||||
Expired | — | ||||||||||||
Outstanding and exercisable at June 30, 2013 | 8,241 | ||||||||||||
Issued | — | ||||||||||||
Cancelled | — | ||||||||||||
Exercised | (3,996 | ) | |||||||||||
Expired | — | ||||||||||||
Outstanding and exercisable at June 30, 2014 | 4,245 | ||||||||||||
As of June 30, 2014, 2013, and 2012, the Company had no warrants classified as derivative liabilities. |
Other_Income_Expense_net
Other Income (Expense), net | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Other Income (Expense), net | ' | |||||||||||
Other Income (Expense), net | ||||||||||||
Other income (expense), net consists of the following (in thousands): | ||||||||||||
Year ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Business development incentive, net | $ | 666 | $ | 695 | $ | — | ||||||
Foreign currency transaction loss, net | (194 | ) | (1,689 | ) | (102 | ) | ||||||
Gain on settlement of forward contract | 8 | 42 | — | |||||||||
Other income (expense), net | (96 | ) | 40 | 66 | ||||||||
Total other income (expense), net | $ | 384 | $ | (912 | ) | $ | (36 | ) | ||||
In January 2013, the Company began operations of a foreign subsidiary that qualified for a government-sponsored business development incentive. Under the incentive program, the Company's foreign subsidiary was allowed to retain certain non-income based taxes during the twelve month period ending December 31, 2013, rather than remit such taxes to the tax authorities. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
Income Taxes | ||||||||||||
As of June 30, 2014, the Company had a Federal net operating loss (“NOL”) carry-forward of approximately $1.4 million. The net operating losses expire by June 30, 2024 and are subject to review by the Internal Revenue Service, and are subject to U.S. Internal Revenue Code Section 382 limitations. As of June 30, 2014, state NOLs were $9.7 million and foreign NOLs were $0.8 million. The income tax expense for the years ended June 30, 2014, 2013, and 2012 consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income / (Loss) Before Income Taxes: | ||||||||||||
Domestic | $ | 13,894 | $ | 11,250 | $ | 14,556 | ||||||
International | 2,761 | (97 | ) | 116 | ||||||||
$ | 16,655 | $ | 11,153 | $ | 14,672 | |||||||
Current Taxes: | ||||||||||||
Federal | $ | 2,010 | $ | 4,087 | $ | 3,758 | ||||||
State | 72 | 383 | 1,121 | |||||||||
Foreign | 1,018 | (33 | ) | 47 | ||||||||
Total Current Income Tax Provision | $ | 3,100 | $ | 4,437 | $ | 4,926 | ||||||
Deferred Taxes: | ||||||||||||
Federal | 2,299 | (706 | ) | (2,110 | ) | |||||||
State | 83 | (77 | ) | (601 | ) | |||||||
Foreign | (210 | ) | (109 | ) | (12 | ) | ||||||
Total Deferred Income Tax Provision | $ | 2,172 | $ | (892 | ) | $ | (2,723 | ) | ||||
Net Income Tax Provision | $ | 5,272 | $ | 3,545 | $ | 2,203 | ||||||
The effective income tax rate for the years ended June 30, 2014, 2013, and 2012 differs from the U.S. Federal statutory income tax rate due to the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 1.9 | % | 1.8 | % | 5.5 | % | ||||||
Tax return to provision true-up | (3.0 | )% | (2.5 | )% | (1.0 | )% | ||||||
Permanent differences: | ||||||||||||
— change in derivative liability | 0 | % | 0 | % | 16.1 | % | ||||||
— stock based compensation | 1.3 | % | 0.8 | % | 0.3 | % | ||||||
— domestic production activities deduction | (1.8 | )% | (2.7 | )% | 0 | % | ||||||
— credit for increasing research activities | (1.5 | )% | (0.7 | )% | 0 | % | ||||||
— other | (0.5 | )% | 0 | % | (0.4 | )% | ||||||
Change in valuation allowance | 0.1 | % | 0 | % | (39.5 | )% | ||||||
Net income tax provision | 31.5 | % | 31.7 | % | 16 | % | ||||||
The components of the deferred tax assets and liabilities as of June 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Federal, state, and foreign net operating loss carryovers | $ | 1,016 | $ | 1,768 | ||||||||
Stock option compensation | 1,353 | 1,212 | ||||||||||
Accrued vacation, allowance for returns, bonuses & other | 572 | 2,493 | ||||||||||
Gross deferred tax asset | $ | 2,941 | $ | 5,473 | ||||||||
Deferred tax liabilities: | ||||||||||||
Patents and trademarks | (500 | ) | (536 | ) | ||||||||
Change in tax accounting methods | (198 | ) | (297 | ) | ||||||||
Property & equipment | (583 | ) | (824 | ) | ||||||||
Gross deferred tax liabilities | (1,281 | ) | (1,657 | ) | ||||||||
Less: valuation allowance | (217 | ) | (201 | ) | ||||||||
Deferred tax assets, net | $ | 1,443 | $ | 3,615 | ||||||||
The Company has adopted accounting guidance for uncertain tax positions which provides that in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position, and the measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon recognition of the benefit. We believe the Company has no material uncertain tax positions and do not expect significant changes within the next twelve months in the amount of unrecognized tax benefits. Accordingly, we have not reserved for interest or penalties. The tax years open for examination by the Internal Revenue Service (“IRS”) include returns for fiscal years June 30, 2011 through present and the open tax years by state tax authorities include returns for fiscal years June 30, 2010 through present. In addition, the IRS and state tax authorities may examine NOLs for any previous years if utilized by the Company. | ||||||||||||
The total recognized tax benefit from settlement of stock-based awards for the period ending June 30, 2014 was $1.0 million. | ||||||||||||
The Company conducts its business globally. As a result, the Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions, and are subject to examination for the open tax years of June 30, 2010 through June 30, 2013. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Commitments and Contingencies | ' | |||
Commitments and Contingencies | ||||
Operating Leases | ||||
The Company leases its facilities under non-cancelable operating leases, which expire at various dates through 2024. The facilities' leases contain renewal options and are subject to cost increases. Future minimum annual payments under non-cancelable operating leases at June 30, 2014 are as follows (in thousands): | ||||
Year ending June 30, | Amount | |||
2015 | $ | 2,320 | ||
2016 | 2,323 | |||
2017 | 2,320 | |||
2018 | 1,282 | |||
2019 | 1,246 | |||
Thereafter | 6,395 | |||
Total future minimum lease payments | $ | 15,886 | ||
Rent expense totaled $1.9 million, $1.8 million, and $0.4 million for the years ended June 30, 2014, 2013, and 2012, respectively. | ||||
Contingencies | ||||
The Company is occasionally involved in lawsuits and disputes arising in the normal course of business. In the opinion of management, based upon advice of counsel, the likelihood of an adverse outcome against the Company in any litigation currently pending against the Company is remote. As such, management currently believes that the ultimate outcome of these lawsuits will not have a material impact on the Company's financial position or results of operations. |
Interim_Financial_Results_Unau
Interim Financial Results (Unaudited) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Interim Financial Results (Unaudited) | ' | |||||||||||||||||||
Interim Financial Results (Unaudited) | ||||||||||||||||||||
The following summarizes selected quarterly financial information for quarterly periods during the years ended June 30, 2014 and 2013: | ||||||||||||||||||||
LIFEVANTAGE CORPORATION AND SUBSIDIARY | ||||||||||||||||||||
CONDENSED CONSOLIDATED QUARTERLY RESULTS | ||||||||||||||||||||
(in thousands except per share data) | ||||||||||||||||||||
Fiscal Quarter | Year ended June 30, 2014 | |||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Revenue, net | $ | 51,328 | $ | 51,538 | $ | 55,064 | $ | 56,038 | $ | 213,968 | ||||||||||
Gross profit | 43,519 | 43,594 | 46,605 | 47,056 | 180,774 | |||||||||||||||
Net income | $ | 3,256 | $ | 3,282 | $ | 2,494 | $ | 2,351 | $ | 11,383 | ||||||||||
Per common share: | ||||||||||||||||||||
Income per share, basic | $ | 0.03 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.11 | ||||||||||
Income per share diluted | $ | 0.03 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.1 | ||||||||||
Fiscal Quarter | Year ended June 30, 2013 | |||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Revenue, net | $ | 52,859 | $ | 53,438 | $ | 50,370 | $ | 51,511 | $ | 208,178 | ||||||||||
Gross profit | 45,052 | 38,760 | 43,501 | 44,222 | 171,535 | |||||||||||||||
Net income (loss) | $ | 4,165 | $ | 209 | $ | 3,416 | $ | (182 | ) | $ | 7,608 | |||||||||
Per common share: | ||||||||||||||||||||
Income (loss) per share, basic | $ | 0.04 | $ | 0 | $ | 0.03 | $ | 0 | $ | 0.07 | ||||||||||
Income (loss) per share, diluted | $ | 0.03 | $ | 0 | $ | 0.03 | $ | 0 | $ | 0.06 | ||||||||||
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Consolidation | ' | |||||||
Consolidation | ||||||||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. During fiscal 2014, the Company combined the line items sales and marketing, general and administrative, research and development, and depreciation and amortization into two line items on the consolidated statements of operations and comprehensive income, namely, commissions and incentives and selling, general and administrative to have a presentation that is more comparable to that of the Company’s peers. The Company reclassified prior period line items to conform to the current period presentation. Certain other prior period balances have also been reclassified to conform to the current period presentation. | ||||||||
Use of Estimates | ' | |||||||
Use of Estimates | ||||||||
We prepare our consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (GAAP). In preparing these statements, we are required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, we review our estimates, including those related to inventory obsolescence, sales returns, income taxes and tax valuation reserves, share-based compensation, derivative liabilities and loss contingencies. | ||||||||
Fair Value of Financial Instruments | ' | |||||||
Fair Value of Financial Instruments | ||||||||
Accounting guidance on fair value measurements and disclosures requires disclosures about the fair value for all financial instruments, whether or not recognized, for financial statement purposes. Disclosures about fair value of financial instruments are based on pertinent information available to management as of June 30, 2014 and 2013. Accordingly, the estimates presented in these consolidated financial statements are not necessarily indicative of the amounts that could be realized on disposition of the financial instruments. | ||||||||
Management has estimated the fair values of cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses to approximate their respective carrying values reported in these consolidated financial statements because of their short maturities. | ||||||||
Cash and Cash Equivalents | ' | |||||||
Cash and Cash Equivalents | ||||||||
The Company considers only its monetary liquid assets with original maturities of three months or less to be cash and cash equivalents. | ||||||||
Accounts Receivable | ' | |||||||
Accounts Receivable | ||||||||
The Company’s accounts receivable for the years ended June 30, 2014 and 2013 consist primarily of credit card receivables. Based on the Company’s verification process for customer credit cards and historical information available, management has determined that an allowance for doubtful accounts on credit card sales related to its customer sales as of June 30, 2014 is not necessary. | ||||||||
Inventory | ' | |||||||
Inventory | ||||||||
As of June 30, 2014 and 2013, inventory consisted of (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Finished goods | $ | 4,749 | $ | 5,273 | ||||
Raw materials | 4,077 | 5,251 | ||||||
Total inventory | $ | 8,826 | $ | 10,524 | ||||
Inventories are carried and depicted above at the lower of cost or market, using the first-in, first-out method | ||||||||
Property and Equipment | ' | |||||||
Property and Equipment | ||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: | ||||||||
Years | ||||||||
Equipment (includes computer hardware and software) | 3 | |||||||
Furniture and fixtures | 5 | |||||||
Leasehold improvements | * | |||||||
Vehicles | 5 | |||||||
*Leasehold improvements are depreciated over the shorter of estimated useful life of the related asset or the lease term. | ||||||||
The cost of normal maintenance and repairs is charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the Consolidated Statements of Operations and Comprehensive Income. Significant expenditures that increase the useful life of an asset are capitalized and depreciated over the estimated useful life of the asset. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. | ||||||||
Intangible Assets | ' | |||||||
Intangible Assets | ||||||||
Intangible assets are stated at cost less accumulated amortization. Definite-lived intangible assets are amortized over their related useful lives, using a straight-line method, consistent with the underlying expected future cash flows related to the specific intangible asset. Definite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances exist that indicate the carrying amount of an asset may not be recoverable. When indicators of impairment exist, an estimate of undiscounted net cash flows is used in measuring whether the carrying amount of the asset or related asset group is recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. | ||||||||
Indefinite-lived intangible assets are not amortized; however, they are tested at least annually for impairment or more frequently if events or changes in circumstances exist that may indicate impairment. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. | ||||||||
Impairment of Long-Lived Assets | ' | |||||||
Impairment of Long-Lived Assets | ||||||||
Pursuant to guidance established for impairment or disposal of assets, the Company assesses impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. When an assessment for impairment of long-lived assets, long-lived assets to be disposed of, and certain identifiable intangibles related to those assets is performed, the Company is required to compare the net carrying value of long-lived assets on the lowest level at which cash flows can be determined on a consistent basis to the related estimates of future undiscounted net cash flows for such assets. If the net carrying value exceeds the net cash flows, then an impairment is recognized to reduce the carrying value to the estimated fair value, generally equal to the future discounted net cash flow. | ||||||||
Concentration of Credit Risk | ' | |||||||
Concentration of Credit Risk | ||||||||
Accounting guidance for financial instruments requires disclosure of significant concentrations of credit risk regardless of the degree of such risk. Financial instruments with significant credit risk include cash and cash equivalents. | ||||||||
Revenue Recognition | ' | |||||||
Revenue Recognition | ||||||||
The Company ships the majority of its product directly to the consumer and receives substantially all payment for these sales in the form of credit card receipts. Revenue from direct product sales to customers is recognized upon passage of title and risk of loss. Estimated returns are recorded when product is shipped. The Company’s return policy is to provide a full refund for product returned within 30-days if the returned product is unopened or defective. After 30 days, the Company generally does not issue refunds to direct sales customers for returned product. The Company allows terminating distributors to return up to 30% of unopened, unexpired product that they have purchased within the prior twelve months for a full refund, less a 10% restocking fee. The Company establishes the returns reserve based on historical experience. The returns reserve is evaluated on a quarterly basis. | ||||||||
Commissions and Incentives | ' | |||||||
Commission and Incentives | ||||||||
Commission and incentive expenses are the Company’s most significant expenses and are classified as operating expenses. Commission and incentive expenses include sales commissions paid to our independent distributors, special incentives, costs for incentive trips and other rewards. Commission and incentive expenses do not include any amounts we pay to our independent distributors for personal purchases. Commissions paid to independent distributors on personal purchases are considered a sales discount and are reported as a reduction to our net revenue. | ||||||||
Shipping and Handling | ' | |||||||
Shipping and Handling | ||||||||
Shipping and handling costs associated with inbound freight and freight out to customers including independent distributors, are included in cost of sales. Shipping and handling fees charged to all customers are included in sales. | ||||||||
Research and Development Costs | ' | |||||||
Research and Development Costs | ||||||||
The Company expenses all costs related to research and development activities as incurred. | ||||||||
Stock-Based Compensation | ' | |||||||
Stock-Based Compensation | ||||||||
The Company recognizes stock-based compensation by measuring the cost of services to be rendered based on the grant date fair value of the equity award. The Company recognizes stock-based compensation, net of any estimated forfeitures, over the period an employee is required to provide service in exchange for the award, generally referred to as the requisite service period. | ||||||||
The Black-Scholes option pricing model is used to estimate the fair value of stock options. The determination of the fair value of stock options is affected by the Company's stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The Company uses historical volatility as the expected volatility assumption required in the Black-Scholes model. The Company utilizes a simplified method for estimating the expected life of the options. The Company uses this method because it believes that it provides a better estimate than the Company’s historical data as post vesting exercises have been limited. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the stock options. | ||||||||
The fair value of restricted stock grants is based on the closing market price of the Company's stock on the date of grant less the Company's expected dividend yield. The fair value of performance-based awards to be paid in cash, accounted for as liabilities, is remeasured at the end of each reporting period and is based on the closing market price of the Company’s stock on the last day of the reporting period. The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance conditions will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs accordingly. | ||||||||
Income Taxes | ' | |||||||
Income Taxes | ||||||||
Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the effective date of the change. | ||||||||
The Company recognizes tax benefits from an uncertain position only if it is more likely than not that the position will be sustained upon examination by taxing authorities based on the technical merits of the issue. The amount recognized is the largest benefit that the Company believes has greater than a 50% likelihood of being realized upon settlement. | ||||||||
Income Per Share | ' | |||||||
Income Per Share | ||||||||
Basic income per share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period, less unvested restricted stock awards. Diluted income per common share is computed by dividing net income by the weighted-average common shares and potentially dilutive common share equivalents using the treasury stock method. | ||||||||
Foreign Currency Translation | ' | |||||||
Foreign Currency Translation | ||||||||
A portion of the Company’s business operations occurs outside the United States. The local currency of each of the Company’s subsidiaries is generally its functional currency. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the consolidated balance sheets and transaction gains and losses are included in other income (expense), net in the consolidated financial statements. | ||||||||
Segment Information | ' | |||||||
Segment Information | ||||||||
The Company operates in a single operating segment by selling products to a global network of independent distributors that operates in an integrated manner from market to market. Commission and incentives expenses are the Company’s largest expense comprised of the commissions paid to its worldwide independent distributors. The Company manages its business primarily by managing its global network of independent distributors. | ||||||||
New Accounting Pronouncements | ' | |||||||
New Accounting Pronouncements | ||||||||
In May 2014, the FASB issued ASC 606, Revenue from Contracts with Customer, which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition. The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration it expects to receive in exchange for those goods or services. ASC 606 will be effective for the Company in the first quarter of fiscal 2018. The Company has not yet determined the potential effects of the adoption of ASC 606 on its consolidated financial statements. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||
Components of Inventory | ' | |||||||||||
As of June 30, 2014 and 2013, inventory consisted of (in thousands): | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Finished goods | $ | 4,749 | $ | 5,273 | ||||||||
Raw materials | 4,077 | 5,251 | ||||||||||
Total inventory | $ | 8,826 | $ | 10,524 | ||||||||
Property and Equipment | ' | |||||||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: | ||||||||||||
Years | ||||||||||||
Equipment (includes computer hardware and software) | 3 | |||||||||||
Furniture and fixtures | 5 | |||||||||||
Leasehold improvements | * | |||||||||||
Vehicles | 5 | |||||||||||
*Leasehold improvements are depreciated over the shorter of estimated useful life of the related asset or the lease term. | ||||||||||||
Property and equipment consist of (in thousands): | ||||||||||||
June 30, | ||||||||||||
2014 | 2013 | |||||||||||
Equipment (includes computer hardware and software) | $ | 6,354 | $ | 5,501 | ||||||||
Furniture and fixtures | 1,428 | 976 | ||||||||||
Leasehold improvements | 3,095 | 1,220 | ||||||||||
Vehicles | 142 | 142 | ||||||||||
Accumulated depreciation | (4,078 | ) | (2,147 | ) | ||||||||
Total property and equipment, net | $ | 6,941 | $ | 5,692 | ||||||||
Reconciliation of earnings per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share | ' | |||||||||||
The following is a reconciliation of earnings per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands, except per share amounts): | ||||||||||||
Year ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Numerator: | ||||||||||||
Net income | $ | 11,383 | $ | 7,608 | $ | 12,469 | ||||||
Denominator: | ||||||||||||
Basic weighted-average common shares outstanding | 105,791 | 112,276 | 102,696 | |||||||||
Effect of dilutive securities: | ||||||||||||
Stock awards and options | 2,652 | 3,832 | 5,516 | |||||||||
Warrants | 3,156 | 6,780 | 10,119 | |||||||||
Diluted weighted-average common shares outstanding | 111,599 | 122,888 | 118,331 | |||||||||
Basic | $ | 0.11 | $ | 0.07 | $ | 0.12 | ||||||
Diluted | $ | 0.1 | $ | 0.06 | $ | 0.11 | ||||||
Revenues from unaffiliated customers by geographic regions and significant geographic area | ' | |||||||||||
Revenues by geographic area are as follows (in thousands): | ||||||||||||
Years ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Americas | $ | 141,227 | $ | 133,046 | $ | 90,122 | ||||||
Asia/Pacific | 72,741 | 75,132 | 36,061 | |||||||||
Total revenues | $ | 213,968 | $ | 208,178 | $ | 126,183 | ||||||
Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): | ||||||||||||
Years ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
United States | $ | 136,758 | $ | 131,508 | $ | 89,230 | ||||||
Japan | $ | 61,872 | $ | 69,492 | $ | 35,449 | ||||||
Property_and_Equipment_Tables
Property and Equipment (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment | ' | |||||||
Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: | ||||||||
Years | ||||||||
Equipment (includes computer hardware and software) | 3 | |||||||
Furniture and fixtures | 5 | |||||||
Leasehold improvements | * | |||||||
Vehicles | 5 | |||||||
*Leasehold improvements are depreciated over the shorter of estimated useful life of the related asset or the lease term. | ||||||||
Property and equipment consist of (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Equipment (includes computer hardware and software) | $ | 6,354 | $ | 5,501 | ||||
Furniture and fixtures | 1,428 | 976 | ||||||
Leasehold improvements | 3,095 | 1,220 | ||||||
Vehicles | 142 | 142 | ||||||
Accumulated depreciation | (4,078 | ) | (2,147 | ) | ||||
Total property and equipment, net | $ | 6,941 | $ | 5,692 | ||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule of Intangible Assets | ' | |||||||
Intangible assets consist of (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Patent costs | $ | 2,330 | $ | 2,321 | ||||
Accumulated amortization | (911 | ) | (776 | ) | ||||
Total definite-lived intangible assets, net | $ | 1,419 | $ | 1,545 | ||||
Trademarks and other indefinite-lived intangible assets | $ | 595 | $ | 202 | ||||
Total intangible assets, net | $ | 2,014 | $ | 1,747 | ||||
Other_Accrued_Expenses_Tables
Other Accrued Expenses (Tables) | 12 Months Ended | |||||||
Jun. 30, 2014 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Other Accrued Expenses | ' | |||||||
Other accrued expenses consist of (in thousands): | ||||||||
June 30, | ||||||||
2014 | 2013 | |||||||
Accrued severance | $ | 150 | $ | 1,602 | ||||
Accrued incentives and promotions to distributors | 829 | 1,122 | ||||||
Accrued payroll and other employee expenses | 1,382 | 1,387 | ||||||
Deferred revenue | 887 | 545 | ||||||
Accrued payable to vendors | 910 | 352 | ||||||
Other taxes payable | 1,894 | 944 | ||||||
Reserve for sales returns | 635 | 648 | ||||||
Accrued other expenses | 867 | 1,231 | ||||||
Total other accrued expenses | $ | 7,554 | $ | 7,831 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Debt Disclosure [Abstract] | ' | |||
Future Principal Payments of the Credit Facility | ' | |||
Aggregate future principal payments required in accordance with the terms of the Credit Facility are as follows (in thousands): | ||||
Year ending June 30, | Amount | |||
2015 | $ | 4,700 | ||
2016 | 4,700 | |||
2017 | 4,700 | |||
2018 | 4,700 | |||
2019 | 4,700 | |||
Thereafter | 7,325 | |||
$ | 30,825 | |||
ShareBased_Compensation_Tables
Share-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Jun. 30, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock Option Awards Fair Value Valuation Assumptions | ' | ||||||||||||
The fair value of stock option awards was estimated using the Black-Scholes option-pricing model with the following assumptions and weighted-average fair values: | |||||||||||||
June 30, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Risk-free interest rate | N/A | 0.82% | 0.59% - 1.41% | ||||||||||
Dividend yield | N/A | — | % | — | % | ||||||||
Expected life in years | N/A | 5.0- 6.08 | 3.0 - 6.65 | ||||||||||
Expected volatility | N/A | 127% | 119% - 137% | ||||||||||
Summary of Stock Option Activity | ' | ||||||||||||
The following is a summary of stock option activity for the years ended June 30, 2014, 2013, and 2012: | |||||||||||||
Options (in thousands) | Weighted | Weighted | Aggregate Intrinsic Value (in thousands) | ||||||||||
Average | Average Remaining | ||||||||||||
Exercise Price | Contractual Term (in years) | ||||||||||||
Outstanding at June 30, 2011 | 10,498 | $ | 0.64 | ||||||||||
Granted | 2,086 | $ | 1.89 | ||||||||||
Exercised | (1,612 | ) | 0.45 | $ | 2,038 | ||||||||
Forfeited | (27 | ) | 1.36 | ||||||||||
Expired or Cancelled | — | — | |||||||||||
Outstanding at June 30, 2012 | 10,945 | 0.91 | |||||||||||
Granted | 152 | $ | 2.82 | ||||||||||
Exercised | (3,319 | ) | 0.49 | $ | 7,128 | ||||||||
Forfeited | (768 | ) | 1.54 | ||||||||||
Expired or Cancelled | — | — | |||||||||||
Outstanding at June 30, 2013 | 7,010 | 1.08 | |||||||||||
Granted | — | $ | — | ||||||||||
Exercised | (1,400 | ) | 0.69 | $ | 2,282 | ||||||||
Forfeited | (469 | ) | 1.84 | ||||||||||
Expired or Cancelled | — | — | |||||||||||
Outstanding at June 30, 2014 | 5,141 | 1.18 | 6.07 | $ | 2,417 | ||||||||
Exercisable at June 30, 2014 | 4,795 | $ | 1.08 | 6.17 | $ | 2,411 | |||||||
Summary of Nonvested Restricted Shares | ' | ||||||||||||
The following is a summary of restricted shares granted during the years ended June 30, 2014, 2013, and 2012: | |||||||||||||
Nonvested Shares | Shares (in thousands) | Weighted Average Grant Date Fair Value | |||||||||||
Nonvested at June 30, 2011 | — | — | |||||||||||
Granted | 164 | $ | 3.34 | ||||||||||
Vested | — | — | |||||||||||
Forfeited | (2 | ) | 3.36 | ||||||||||
Nonvested at June 30, 2012 | 162 | 3.34 | |||||||||||
Vested at June 30, 2012 | — | — | |||||||||||
Granted | 2,808 | $ | 2.62 | ||||||||||
Vested | (37 | ) | 3.34 | ||||||||||
Forfeited | (196 | ) | 3.25 | ||||||||||
Nonvested at June 30, 2013 | 2,737 | 2.61 | |||||||||||
Vested at June 30, 2013 | — | — | |||||||||||
Granted | 225 | $ | 1.79 | ||||||||||
Vested | (760 | ) | 2.65 | ||||||||||
Forfeited | (478 | ) | 2.55 | ||||||||||
Nonvested at June 30, 2014 | 1,724 | 2.46 | |||||||||||
Vested at June 30, 2014 | — | — | |||||||||||
Schedule of Performance Share Units Activity | ' | ||||||||||||
The following is a summary of performance share units granted during the year ended June 30, 2014: | |||||||||||||
Number of Units (in thousands) | Weighted Average Grant Date Fair Value | ||||||||||||
Outstanding at June 30, 2013, nonvested | — | $ | — | ||||||||||
Granted | 245 | 1.48 | |||||||||||
Vested | (214 | ) | — | ||||||||||
Forfeited | (31 | ) | 1.51 | ||||||||||
Outstanding at June 30, 2014, nonvested | — | ||||||||||||
Summary of the Warrants Granted | ' | ||||||||||||
The following is a summary of the warrant activity for the years ended June 30, 2014, 2013, and 2012 (in thousands): | |||||||||||||
Common | |||||||||||||
Stock | |||||||||||||
Warrants | |||||||||||||
Outstanding and exercisable, June 30, 2011 | 25,460 | ||||||||||||
Issued | 270 | ||||||||||||
Cancelled | — | ||||||||||||
Exercised | (12,563 | ) | |||||||||||
Expired | (203 | ) | |||||||||||
Outstanding and exercisable at June 30, 2012 | 12,964 | ||||||||||||
Issued | — | ||||||||||||
Cancelled | — | ||||||||||||
Exercised | (4,723 | ) | |||||||||||
Expired | — | ||||||||||||
Outstanding and exercisable at June 30, 2013 | 8,241 | ||||||||||||
Issued | — | ||||||||||||
Cancelled | — | ||||||||||||
Exercised | (3,996 | ) | |||||||||||
Expired | — | ||||||||||||
Outstanding and exercisable at June 30, 2014 | 4,245 | ||||||||||||
Other_Income_Expense_net_Table
Other Income (Expense), net (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Other Income and Expenses [Abstract] | ' | |||||||||||
Schedule of Other income (Expense), net | ' | |||||||||||
Other income (expense), net consists of the following (in thousands): | ||||||||||||
Year ended June 30, | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Business development incentive, net | $ | 666 | $ | 695 | $ | — | ||||||
Foreign currency transaction loss, net | (194 | ) | (1,689 | ) | (102 | ) | ||||||
Gain on settlement of forward contract | 8 | 42 | — | |||||||||
Other income (expense), net | (96 | ) | 40 | 66 | ||||||||
Total other income (expense), net | $ | 384 | $ | (912 | ) | $ | (36 | ) | ||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Jun. 30, 2014 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Components of income tax expense (benefit) | ' | |||||||||||
The income tax expense for the years ended June 30, 2014, 2013, and 2012 consists of the following (in thousands): | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Income / (Loss) Before Income Taxes: | ||||||||||||
Domestic | $ | 13,894 | $ | 11,250 | $ | 14,556 | ||||||
International | 2,761 | (97 | ) | 116 | ||||||||
$ | 16,655 | $ | 11,153 | $ | 14,672 | |||||||
Current Taxes: | ||||||||||||
Federal | $ | 2,010 | $ | 4,087 | $ | 3,758 | ||||||
State | 72 | 383 | 1,121 | |||||||||
Foreign | 1,018 | (33 | ) | 47 | ||||||||
Total Current Income Tax Provision | $ | 3,100 | $ | 4,437 | $ | 4,926 | ||||||
Deferred Taxes: | ||||||||||||
Federal | 2,299 | (706 | ) | (2,110 | ) | |||||||
State | 83 | (77 | ) | (601 | ) | |||||||
Foreign | (210 | ) | (109 | ) | (12 | ) | ||||||
Total Deferred Income Tax Provision | $ | 2,172 | $ | (892 | ) | $ | (2,723 | ) | ||||
Net Income Tax Provision | $ | 5,272 | $ | 3,545 | $ | 2,203 | ||||||
The effective income tax rate differs from the U.S. Federal statutory income tax rate | ' | |||||||||||
The effective income tax rate for the years ended June 30, 2014, 2013, and 2012 differs from the U.S. Federal statutory income tax rate due to the following: | ||||||||||||
2014 | 2013 | 2012 | ||||||||||
Federal statutory income tax rate | 35 | % | 35 | % | 35 | % | ||||||
State income taxes, net of federal benefit | 1.9 | % | 1.8 | % | 5.5 | % | ||||||
Tax return to provision true-up | (3.0 | )% | (2.5 | )% | (1.0 | )% | ||||||
Permanent differences: | ||||||||||||
— change in derivative liability | 0 | % | 0 | % | 16.1 | % | ||||||
— stock based compensation | 1.3 | % | 0.8 | % | 0.3 | % | ||||||
— domestic production activities deduction | (1.8 | )% | (2.7 | )% | 0 | % | ||||||
— credit for increasing research activities | (1.5 | )% | (0.7 | )% | 0 | % | ||||||
— other | (0.5 | )% | 0 | % | (0.4 | )% | ||||||
Change in valuation allowance | 0.1 | % | 0 | % | (39.5 | )% | ||||||
Net income tax provision | 31.5 | % | 31.7 | % | 16 | % | ||||||
The components of the deferred tax assets and liabilities | ' | |||||||||||
The components of the deferred tax assets and liabilities as of June 30, 2014 and 2013 are as follows (in thousands): | ||||||||||||
2014 | 2013 | |||||||||||
Deferred tax assets: | ||||||||||||
Federal, state, and foreign net operating loss carryovers | $ | 1,016 | $ | 1,768 | ||||||||
Stock option compensation | 1,353 | 1,212 | ||||||||||
Accrued vacation, allowance for returns, bonuses & other | 572 | 2,493 | ||||||||||
Gross deferred tax asset | $ | 2,941 | $ | 5,473 | ||||||||
Deferred tax liabilities: | ||||||||||||
Patents and trademarks | (500 | ) | (536 | ) | ||||||||
Change in tax accounting methods | (198 | ) | (297 | ) | ||||||||
Property & equipment | (583 | ) | (824 | ) | ||||||||
Gross deferred tax liabilities | (1,281 | ) | (1,657 | ) | ||||||||
Less: valuation allowance | (217 | ) | (201 | ) | ||||||||
Deferred tax assets, net | $ | 1,443 | $ | 3,615 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||
Jun. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future minimum lease payments under the non-cancelable leases | ' | |||
Future minimum annual payments under non-cancelable operating leases at June 30, 2014 are as follows (in thousands): | ||||
Year ending June 30, | Amount | |||
2015 | $ | 2,320 | ||
2016 | 2,323 | |||
2017 | 2,320 | |||
2018 | 1,282 | |||
2019 | 1,246 | |||
Thereafter | 6,395 | |||
Total future minimum lease payments | $ | 15,886 | ||
Interim_Financial_Results_Unau1
Interim Financial Results (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||||||
Jun. 30, 2014 | ||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||||||
Summary of selected quarterly financial information | ' | |||||||||||||||||||
The following summarizes selected quarterly financial information for quarterly periods during the years ended June 30, 2014 and 2013: | ||||||||||||||||||||
LIFEVANTAGE CORPORATION AND SUBSIDIARY | ||||||||||||||||||||
CONDENSED CONSOLIDATED QUARTERLY RESULTS | ||||||||||||||||||||
(in thousands except per share data) | ||||||||||||||||||||
Fiscal Quarter | Year ended June 30, 2014 | |||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Revenue, net | $ | 51,328 | $ | 51,538 | $ | 55,064 | $ | 56,038 | $ | 213,968 | ||||||||||
Gross profit | 43,519 | 43,594 | 46,605 | 47,056 | 180,774 | |||||||||||||||
Net income | $ | 3,256 | $ | 3,282 | $ | 2,494 | $ | 2,351 | $ | 11,383 | ||||||||||
Per common share: | ||||||||||||||||||||
Income per share, basic | $ | 0.03 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.11 | ||||||||||
Income per share diluted | $ | 0.03 | $ | 0.03 | $ | 0.02 | $ | 0.02 | $ | 0.1 | ||||||||||
Fiscal Quarter | Year ended June 30, 2013 | |||||||||||||||||||
First | Second | Third | Fourth | |||||||||||||||||
Revenue, net | $ | 52,859 | $ | 53,438 | $ | 50,370 | $ | 51,511 | $ | 208,178 | ||||||||||
Gross profit | 45,052 | 38,760 | 43,501 | 44,222 | 171,535 | |||||||||||||||
Net income (loss) | $ | 4,165 | $ | 209 | $ | 3,416 | $ | (182 | ) | $ | 7,608 | |||||||||
Per common share: | ||||||||||||||||||||
Income (loss) per share, basic | $ | 0.04 | $ | 0 | $ | 0.03 | $ | 0 | $ | 0.07 | ||||||||||
Income (loss) per share, diluted | $ | 0.03 | $ | 0 | $ | 0.03 | $ | 0 | $ | 0.06 | ||||||||||
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Summary of Significant Accounting Policies Additional Information [Abstract] | ' | ' | ' |
Maturity period of monetary liquid assets considered to be cash and cash equivalents, Maximum | '3 months | ' | ' |
Recorded bad debt expense | $0 | $0 | $0 |
Impairment of intangible assets | 0 | 0 | ' |
Money back guarantee period | '30 days | ' | ' |
Percentage of products can be returned for a full refund by terminated distributors | 30.00% | ' | ' |
Restocking fee percent for full refund (percent) | 10.00% | ' | ' |
The Company's reserve balance for returns and allowances | 600,000 | 600,000 | ' |
Research and development | 2,000,000 | 2,900,000 | 1,400,000 |
Percentage of likelihood of amount realized upon settlement | 50.00% | ' | ' |
Financial Institution One | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration of credit risk | 17,600,000 | ' | ' |
Financial Institution Two | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Concentration of credit risk | $2,800,000 | ' | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies - Inventory (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
Accounting Policies [Abstract] | ' | ' |
Inventory valuation reserves | $700,000 | $3,900,000 |
Components of Inventory | ' | ' |
Finished goods | 4,749,000 | 5,273,000 |
Raw materials | 4,077,000 | 5,251,000 |
Total inventory | $8,826,000 | $10,524,000 |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Jun. 30, 2014 | |
Equipment | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated service lives of Property and Equipment | '3 years |
Furniture and fixtures | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated service lives of Property and Equipment | '5 years |
Vehicles | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated service lives of Property and Equipment | '5 years |
Summary_of_Significant_Account6
Summary of Significant Accounting Policies - Reconciliation of Earnings per Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Accounting Policies [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of antidilutive securities (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 300,000 | ' | ' |
Numerator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income | $2,351 | $2,494 | $3,282 | $3,256 | ($182) | $3,416 | $209 | $4,165 | $11,383 | $7,608 | $12,469 |
Denominator: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic weighted-average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 105,791,000 | 112,276,000 | 102,696,000 |
Effect of dilutive securities: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock awards and options (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 2,652,000 | 3,832,000 | 5,516,000 |
Warrants (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 3,156,000 | 6,780,000 | 10,119,000 |
Diluted weighted-average common shares outstanding (in shares) | ' | ' | ' | ' | ' | ' | ' | ' | 111,599,000 | 122,888,000 | 118,331,000 |
Basic (dollars per shares) | $0.02 | $0.02 | $0.03 | $0.03 | $0 | $0.03 | $0 | $0.04 | $0.11 | $0.07 | $0.12 |
Diluted (dollars per share) | $0.02 | $0.02 | $0.03 | $0.03 | $0 | $0.03 | $0 | $0.03 | $0.10 | $0.06 | $0.11 |
Summary_of_Significant_Account7
Summary of Significant Accounting Policies - Revenues by Geographic Area (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Segment | |||||||||||
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of geographic segments | ' | ' | ' | ' | ' | ' | ' | ' | 2 | ' | ' |
Revenues from unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | $56,038,000 | $55,064,000 | $51,538,000 | $51,328,000 | $51,511,000 | $50,370,000 | $53,438,000 | $52,859,000 | $213,968,000 | $208,178,000 | $126,183,000 |
Americas | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 141,227,000 | 133,046,000 | 90,122,000 |
Asia / Pacific | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues from unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 72,741,000 | 75,132,000 | 36,061,000 |
United States | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 9,800,000 | ' | ' | ' | 4,800,000 | ' | ' | ' | 9,800,000 | 4,800,000 | ' |
Revenues from unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | 136,758,000 | 131,508,000 | 89,230,000 |
Japan | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets | 2,300,000 | ' | ' | ' | 3,000,000 | ' | ' | ' | 2,300,000 | 3,000,000 | ' |
Revenues from unaffiliated customers | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total revenues | ' | ' | ' | ' | ' | ' | ' | ' | $61,872,000 | $69,492,000 | $35,449,000 |
Property_and_Equipment_Details
Property and Equipment (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Accumulated depreciation | ($4,078,000) | ($2,147,000) | ' |
Total property and equipment, net | 6,941,000 | 5,692,000 | ' |
Depreciation expense | 2,000,000 | 1,500,000 | 400,000 |
Equipment (includes computer hardware and software) | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 6,354,000 | 5,501,000 | ' |
Furniture and fixtures | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 1,428,000 | 976,000 | ' |
Leasehold improvements | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 3,095,000 | 1,220,000 | ' |
Vehicles | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $142,000 | $142,000 | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Total intangible assets, net | $2,014,000 | $1,747,000 | ' |
Amortization of intangible assets | 100,000 | 100,000 | 100,000 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ' | ' | ' |
2015 | 100,000 | ' | ' |
2016 | 100,000 | ' | ' |
2017 | 100,000 | ' | ' |
2018 | 100,000 | ' | ' |
2019 | 100,000 | ' | ' |
Patent costs | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Patent costs | 2,330,000 | 2,321,000 | ' |
Accumulated amortization | -911,000 | -776,000 | ' |
Total definite-lived intangible assets, net | 1,419,000 | 1,545,000 | ' |
Trademark costs | ' | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' | ' |
Trademarks and other indefinite-lived intangible assets | $595,000 | $202,000 | ' |
Other_Accrued_Expenses_Details
Other Accrued Expenses (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accrued severance | $150 | $1,602 |
Accrued incentives and promotions to distributors | 829 | 1,122 |
Accrued payroll and other employee expenses | 1,382 | 1,387 |
Deferred revenue | 887 | 545 |
Accrued payable to vendors | 910 | 352 |
Other taxes payable | 1,894 | 944 |
Reserve for sales returns | 635 | 648 |
Accrued other expenses | 867 | 1,231 |
Total other accrued expenses | $7,554 | $7,831 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | 12 Months Ended | ||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 18, 2013 | Oct. 18, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | |
Secured Debt | October 2013 Term Loan | October 2013 Term Loan | October 2013 Delayed Draw Term Loan | Greater of 1.25% or LIBOR | Reference Rate at the Company's Option | ||||
Secured Debt | Secured Debt | Secured Debt | Secured Debt | Secured Debt | |||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | $47,000,000 | $20,000,000 | ' | ' |
Basis spread on variable rate (in percent) | ' | ' | ' | ' | ' | ' | ' | 7.50% | 6.50% |
Minimum variable rate basis ( in percent) | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' |
Interest rate during period (in percent) | ' | ' | ' | 8.75% | ' | ' | ' | ' | ' |
Repayments of long-term debt | 16,175,000 | 0 | 0 | ' | 13,800,000 | ' | ' | ' | ' |
Debt issuance cost | 2,700,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Interest expense during period | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Unamortized deferred offering costs | $2,400,000 | ' | ' | ' | ' | ' | ' | ' | ' |
LongTerm_Debt_Future_Principal
Long-Term Debt - Future Principal Payments (Details) (USD $) | Jun. 30, 2014 |
In Thousands, unless otherwise specified | |
Debt Disclosure [Abstract] | ' |
2015 | $4,700 |
2016 | 4,700 |
2017 | 4,700 |
2018 | 4,700 |
2019 | 4,700 |
Thereafter | 7,325 |
Total debt | $30,825 |
Stockholders_Equity_Details
Stockholders' Equity (Details) (USD $) | 12 Months Ended | 0 Months Ended | 1 Months Ended | 4 Months Ended | 15 Months Ended | ||||||||||||
Share data in Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Nov. 01, 2013 | Jul. 31, 2013 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 03, 2014 | Mar. 11, 2014 | Mar. 22, 2013 |
Common Stock | Common Stock | Common Stock | Restricted Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | Common Stock | ||||
Tender Offer | Pre-Arranged Stock Repurchase Plan | Pre-Arranged Stock Repurchase Plan | Pre-Arranged Stock Repurchase Plan | Pre-Arranged Stock Repurchase Plan | Pre-Arranged Stock Repurchase Plan | Pre-Arranged Stock Repurchase Plan | |||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Common stock issued (in shares) | ' | ' | ' | 5,200 | 7,300 | 11,900 | ' | 5,185 | 7,270 | 11,909 | ' | ' | ' | ' | ' | ' | ' |
Restricted common stock to employees (in shares) | ' | ' | ' | 200 | 2,600 | 100 | ' | 225 | 2,616 | 149 | ' | ' | ' | ' | ' | ' | ' |
Shares canceled or surrendered as payment of tax withholding (shares) | ' | ' | ' | ' | ' | ' | 700 | 686 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Repurchase common stock amount authorized | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $4,000,000 | $3,000,000 | $5,000,000 |
Stock repurchased during period (in shares) | ' | ' | ' | ' | ' | ' | ' | 19,639 | 2,972 | 678 | 16,300 | 1,200 | 2,200 | ' | ' | ' | ' |
Payments for repurchase of common stock | 46,171,000 | 7,123,000 | 976,000 | ' | ' | ' | ' | ' | ' | ' | 40,000,000 | ' | 3,000,000 | 5,000,000 | ' | ' | ' |
Transaction costs associated with repurchase of common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $300,000 | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Detail
Share-Based Compensation (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2014 | Nov. 21, 2006 | Jun. 30, 2014 | Nov. 19, 2010 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Performance Shares | 2007 Long-Term Incentive Plan | 2007 Long-Term Incentive Plan | 2010 Long-Term Incentive Plan | 2010 Long-Term Incentive Plan | 2010 Long-Term Incentive Plan | Minimum | Minimum | Maximum | Maximum | ||||
Vesting_Installlment | Restricted Stock | 2007 Long-Term Incentive Plan | 2010 Long-Term Incentive Plan | 2007 Long-Term Incentive Plan | 2010 Long-Term Incentive Plan | ||||||||
Equity Incentive Plans | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum common stock issued under Long-Term Incentive Plan | ' | ' | ' | ' | ' | 10,000,000 | ' | 6,900,000 | ' | ' | ' | ' | ' |
Right to purchase common stock, minimum price | ' | ' | ' | ' | $0.21 | ' | $0.63 | ' | ' | ' | ' | ' | ' |
Right to purchase common stock, maximum price | ' | ' | ' | ' | $1.50 | ' | $3.53 | ' | ' | ' | ' | ' | ' |
Vesting period of Long-Term Incentive Plan (in years) | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | '1 year | '1 year | '3 years | '4 years |
Contractual term of stock options granted (in years) | ' | ' | ' | ' | '10 years | ' | '10 years | ' | ' | ' | ' | ' | ' |
Company's common stock purchased in aggregate (shares) | ' | ' | ' | ' | 2,200,000 | ' | 3,000,000 | ' | ' | ' | ' | ' | ' |
Number of vesting installments | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-Based Compensation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock based compensation | $2,606,000 | $2,169,000 | $1,323,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Employee related stock-based compensation expense | 2,606,000 | 2,169,000 | 1,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock-based compensation awards classified as a liability settled in cash | 300,000 | 0 | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Non-employee related stock based compensation | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | $4,100,000 | ' | ' | ' | ' |
Period for recognition of unrecognized compensation cost | ' | ' | ' | ' | ' | ' | ' | ' | '2 years 6 months 7 days | ' | ' | ' | ' |
Weighted-average grant date fair value | ' | $2.49 | $1.63 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Options, Granted | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
ShareBased_Compensation_Valuat
Share-Based Compensation - Valuation Assumptions (Details) (Employee Stock Option) | 12 Months Ended | |
Jun. 30, 2013 | Jun. 30, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk free rate | 0.82% | ' |
Expected volatility rate | 127.00% | ' |
Expected volatility rate, minimum | ' | 119.00% |
Expected volatility rate, maximum | ' | 137.00% |
Dividend yield assumption | 0.00% | 0.00% |
Minimum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk free rate | ' | 0.59% |
Expected life (years) | '5 years | '3 years |
Maximum | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' |
Risk free rate | ' | 1.41% |
Expected life (years) | '6 years 0 months 29 days | '6 years 7 months 24 days |
ShareBased_Compensation_Stock_
Share-Based Compensation - Stock Option Activity (Details) (USD $) | 12 Months Ended | |||
In Thousands, except Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | Jun. 30, 2011 |
Summary of Stock Option Activity | ' | ' | ' | ' |
Options, Granted | 0 | ' | ' | ' |
Employee Stock Option | ' | ' | ' | ' |
Summary of Stock Option Activity | ' | ' | ' | ' |
Options, Outstanding Beginning Balance | 7,010,000 | 10,945,000 | 10,498,000 | ' |
Options, Granted | 0 | 152,000 | 2,086,000 | ' |
Options, Exercised | -1,400,000 | -3,319,000 | -1,612,000 | ' |
Options, Forfeited | -469,000 | -768,000 | -27,000 | ' |
Options, Expired or Cancelled | 0 | 0 | 0 | ' |
Options, Outstanding Ending Balance | 5,141,000 | 7,010,000 | 10,945,000 | 10,498,000 |
Weighted Average Exercise Price | ' | ' | ' | ' |
Outstanding, Weighted Average Exercise Price, Beginning Balance | $1.08 | $0.91 | $0.64 | ' |
Weighted Average Exercise Price, Granted | $0 | $2.82 | $1.89 | ' |
Weighted Average Exercise Price, Exercised | $0.69 | $0.49 | $0.45 | ' |
Weighted Average Exercise Price, Forfeited | $1.84 | $1.54 | $1.36 | ' |
Weighted Average Exercise Price, Expired or Cancelled | ' | $0 | $0 | ' |
Outstanding, Weighted Average Exercise Price, Ending Balance | $1.18 | $1.08 | $0.91 | $0.64 |
Weighted Average Remaining Contractual Term | ' | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term | '6 years 0 months 24 days | ' | ' | ' |
Weighted Average Remaining Contractual Term, Granted | ' | ' | ' | ' |
Weighted Average Remaining Contractual Term, Exercised | ' | ' | ' | ' |
Outstanding, Weighted Average Remaining Contractual Term | '6 years 0 months 24 days | ' | ' | ' |
Additional Disclosures | ' | ' | ' | ' |
Options, Exercisable (shares) | 4,795,000 | ' | ' | ' |
Weighted Average Exercise Price, Exercisable (dollars per share) | $1.08 | ' | ' | ' |
Exercisable, Weighted Average Remaining Contractual Term (years) | '6 years 1 month 30 days | ' | ' | ' |
Outstanding, Aggregate Intrinsic Value, Beginning Balance | ' | ' | ' | ' |
Aggregate Intrinsic Value, Granted | ' | ' | ' | ' |
Aggregate Intrinsic Value, Exercised | 2,282 | 7,128 | 2,038 | ' |
Outstanding, Aggregate Intrinsic Value, Ending Balance | 2,417 | ' | ' | ' |
Exercisable, Aggregate Intrinsic Value | $2,411 | ' | ' | ' |
ShareBased_Compensation_Nonves
Share-Based Compensation - Nonvested Restricted Shares (Details) (Restricted Stock, USD $) | 12 Months Ended | ||
Share data in Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Restricted Stock | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Shares outstanding beginning period | 2,737 | 162 | 0 |
Shares granted | 225 | 2,808 | 164 |
Shares vested | -760 | -37 | 0 |
Shares forfeited | -478 | -196 | -2 |
Shares outstanding ending period | 1,724 | 2,737 | 162 |
Vested shares | 0 | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' | ' | ' |
Weighted average grant date fair value, beginning period | $2.61 | $3.34 | $0 |
Weighted average grant date fair value, granted | $1.79 | $2.62 | $3.34 |
Weighted average grant date fair value, vested and issued | $2.65 | $3.34 | $0 |
Weighted average grant date fair value, forfeited | $2.55 | $3.25 | $3.36 |
Weighted average grant date fair value, ending period | $2.46 | $2.61 | $3.34 |
Weighted average granted date fair value, vested shares | $0 | $0 | $0 |
Fair value of vested awards | $1,200,000 | $100,000 | $0 |
ShareBased_Compensation_Nonves1
Share-Based Compensation - Nonvested Performance Shares (Details) (Performance Shares, USD $) | 12 Months Ended |
Share data in Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 |
Performance Shares | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Shares outstanding beginning period | 0 |
Shares granted | 245 |
Shares vested | -214 |
Shares forfeited | -31 |
Shares outstanding ending period | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ' |
Weighted average grant date fair value, beginning period | $0 |
Weighted average grant date fair value, granted | $1.48 |
Weighted average grant date fair value, vested and issued | $0 |
Weighted average grant date fair value, forfeited | $1.51 |
Weighted average grant date fair value, ending period | ' |
Fair value of vested awards | $300,000 |
ShareBased_Compensation_Summar
Share-Based Compensation - Summary of Warrants (Details) (Warrants) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Warrants | ' | ' | ' |
Summary of the warrants issued | ' | ' | ' |
Outstanding and exercisable, Beginning balance | 8,241 | 12,964 | 25,460 |
Issued | 0 | 0 | 270 |
Cancelled | 0 | 0 | 0 |
Exercised | -3,996 | -4,723 | -12,563 |
Expired | 0 | 0 | -203 |
Outstanding and exercisable, Ending balance | 4,245 | 8,241 | 12,964 |
Other_Income_Expense_net_Detai
Other Income (Expense), net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Other Income and Expenses [Abstract] | ' | ' | ' |
Business development incentive, net | $666 | $695 | $0 |
Foreign currency transaction loss, net | -194 | -1,689 | -102 |
Gain on settlement of forward contract | 8 | 42 | 0 |
Other income (expense), net | -96 | 40 | 66 |
Total other income (expense), net | $384 | ($912) | ($36) |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 12 Months Ended |
In Millions, unless otherwise specified | Jun. 30, 2014 |
Operating Loss Carryforwards [Line Items] | ' |
Percentage of likelihood for recognition of uncertain tax positions | 50.00% |
Total recognized tax benefit from settlement of stock based awards | $1 |
Internal Revenue Service (IRS) | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | 1.4 |
State and Local Jurisdiction | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | 9.7 |
Foreign Tax Authority | ' |
Operating Loss Carryforwards [Line Items] | ' |
Net operating loss carryforwards | $0.80 |
Income_Taxes_Income_Tax_Expens
Income Taxes - Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Income / (Loss) Before Income Taxes: | ' | ' | ' |
Domestic | $13,894 | $11,250 | $14,556 |
International | 2,761 | -97 | 116 |
Income / (Loss) Before Income Taxes | 16,655 | 11,153 | 14,672 |
Current Taxes | ' | ' | ' |
Federal | 2,010 | 4,087 | 3,758 |
State | 72 | 383 | 1,121 |
Foreign | 1,018 | -33 | 47 |
Total Current Income Tax Provision | 3,100 | 4,437 | 4,926 |
Deferred Taxes | ' | ' | ' |
Federal | 2,299 | -706 | -2,110 |
State | 83 | -77 | -601 |
Foreign | -210 | -109 | -12 |
Total Deferred Income Tax Provision | 2,172 | -892 | -2,723 |
Income Tax Expense (Benefit), Total | $5,272 | $3,545 | $2,203 |
Income_Taxes_Effective_Income_
Income Taxes - Effective Income tax Rate (Details) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
The effective income tax rate differs from the U.S. Federal statutory income tax rate | ' | ' | ' |
Federal statutory income tax rate | 35.00% | 35.00% | 35.00% |
State income taxes, net of federal benefit | 1.90% | 1.80% | 5.50% |
Tax return to provision true-up | -3.00% | -2.50% | -1.00% |
Permanent differences: | ' | ' | ' |
— change in derivative liability | 0.00% | 0.00% | 16.10% |
— stock based compensation | 1.30% | 0.80% | 0.30% |
— domestic production activities deduction | -1.80% | -2.70% | 0.00% |
— credit for increasing research activities | -1.50% | -0.70% | 0.00% |
— other | -0.50% | 0.00% | -0.40% |
Change in valuation allowance | 0.10% | 0.00% | -39.50% |
Net income tax provision | 31.50% | 31.70% | 16.00% |
Income_Taxes_Deferred_Tax_Asse
Income Taxes - Deferred Tax Assets and Liabilities (Details) (USD $) | Jun. 30, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ' | ' |
Federal, state, and foreign net operating loss carryovers | $1,016 | $1,768 |
Stock option compensation | 1,353 | 1,212 |
Accrued vacation, allowance for returns, bonuses & other | 572 | 2,493 |
Gross deferred tax asset | 2,941 | 5,473 |
Deferred liabilities | ' | ' |
Patents and trademarks | -500 | -536 |
Change in tax accounting methods | -198 | -297 |
Property & equipment | -583 | -824 |
Gross deferred tax liabilities | -1,281 | -1,657 |
Less: valuation allowance | -217 | -201 |
Deferred tax assets, net | $1,443 | $3,615 |
Commitments_and_Contingencies_1
Commitments and Contingencies - Operating Leases (Details) (USD $) | 12 Months Ended | ||
Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Future minimum lease payments under the non-cancelable leases | ' | ' | ' |
2015 | $2,320,000 | ' | ' |
2016 | 2,323,000 | ' | ' |
2017 | 2,320,000 | ' | ' |
2018 | 1,282,000 | ' | ' |
2019 | 1,246,000 | ' | ' |
Thereafter | 6,395,000 | ' | ' |
Total future minimum lease payments | 15,886,000 | ' | ' |
Rent expense | $1,900,000 | $1,800,000 | $400,000 |
Interim_Financial_Results_Unau2
Interim Financial Results (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 |
Summary of selected quarterly financial information | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue, net | $56,038 | $55,064 | $51,538 | $51,328 | $51,511 | $50,370 | $53,438 | $52,859 | $213,968 | $208,178 | $126,183 |
Gross profit | 47,056 | 46,605 | 43,594 | 43,519 | 44,222 | 43,501 | 38,760 | 45,052 | 180,774 | 171,535 | 108,131 |
Net income | $2,351 | $2,494 | $3,282 | $3,256 | ($182) | $3,416 | $209 | $4,165 | $11,383 | $7,608 | $12,469 |
Per common share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (dollars per shares) | $0.02 | $0.02 | $0.03 | $0.03 | $0 | $0.03 | $0 | $0.04 | $0.11 | $0.07 | $0.12 |
Diluted (dollars per share) | $0.02 | $0.02 | $0.03 | $0.03 | $0 | $0.03 | $0 | $0.03 | $0.10 | $0.06 | $0.11 |