Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Aug. 27, 2015 | Dec. 31, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Lifevantage Corp | ||
Entity Central Index Key | 849,146 | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,015 | ||
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 | $ 128.5 | ||
Entity Common Stock, Shares Outstanding | 97,537,215 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Current assets | ||
Cash and cash equivalents | $ 13,905 | $ 20,387 |
Accounts receivable | 1,031 | 1,317 |
Income tax receivable | 2,179 | 4,681 |
Inventory | 9,248 | 8,826 |
Current deferred income tax asset | 1,117 | 158 |
Prepaid expenses and deposits | 2,995 | 4,604 |
Total current assets | 30,475 | 39,973 |
Long-term assets | ||
Property and equipment, net | 5,759 | 6,941 |
Intangible assets, net | 1,879 | 2,014 |
Deferred debt offering costs, net | 1,098 | 1,353 |
Long-term deferred income tax asset | 235 | 1,285 |
Other long-term assets | 1,433 | 2,433 |
TOTAL ASSETS | 40,879 | 53,999 |
Current liabilities | ||
Accounts payable | 2,614 | 2,854 |
Commissions payable | 6,505 | 7,594 |
Other accrued expenses | 5,600 | 7,554 |
Current portion of long-term debt | 11,141 | 4,700 |
Total current liabilities | 25,860 | 22,702 |
Long-term debt | ||
Principal amount | 10,484 | 26,125 |
Less: unamortized discount | (853) | (1,052) |
Long-term debt, net of unamortized discount | 9,631 | 25,073 |
Other long-term liabilities | 2,063 | 2,234 |
Total liabilities | $ 37,554 | $ 50,009 |
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 97,671 and 102,173 issued and outstanding as of June 30, 2015 and 2014, respectively | 98 | 102 |
Additional paid-in capital | 117,573 | 115,244 |
Accumulated deficit | (114,095) | (111,240) |
Accumulated other comprehensive loss | (251) | (116) |
Total stockholders’ equity | 3,325 | 3,990 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 40,879 | $ 53,999 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.001 | $ 0.001 |
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 | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 250,000,000 | 250,000,000 |
Common stock, shares issued | 97,671,000 | 102,173,000 |
Common stock, shares outstanding | 97,671,000 | 102,173,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income Statement [Abstract] | |||
Revenue, net | $ 190,336 | $ 213,968 | $ 208,178 |
Cost of sales | 28,010 | 33,194 | 31,845 |
Product recall costs | 0 | 0 | 4,798 |
Gross profit | 162,326 | 180,774 | 171,535 |
Operating expenses: | |||
Commissions and incentives | 91,074 | 104,525 | 101,737 |
Selling, general and administrative | 57,353 | 56,801 | 57,730 |
Total operating expenses | 148,427 | 161,326 | 159,467 |
Operating income | 13,899 | 19,448 | 12,068 |
Other income (expense): | |||
Interest expense | (3,087) | (3,177) | (3) |
Other income (expense), net | (159) | 384 | (912) |
Total other income (expense) | (3,246) | (2,793) | (915) |
Income before income taxes | 10,653 | 16,655 | 11,153 |
Income tax expense | (3,666) | (5,272) | (3,545) |
Net income | $ 6,987 | $ 11,383 | $ 7,608 |
Net income per share: | |||
Basic (dollars per share) | $ 0.07 | $ 0.11 | $ 0.07 |
Diluted (dollars per share) | $ 0.07 | $ 0.10 | $ 0.06 |
Weighted average shares outstanding: | |||
Basic (in shares) | 97,293 | 105,791 | 112,276 |
Diluted (in shares) | 99,052 | 111,599 | 122,888 |
Other comprehensive loss, net of tax: | |||
Foreign currency translation adjustment | $ (135) | $ (3) | $ (92) |
Other comprehensive loss, net of tax: | (135) | (3) | (92) |
Comprehensive income | $ 6,852 | $ 11,380 | $ 7,516 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Deficit) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning Balances, Shares at Jun. 30, 2012 | 110,174 | ||||
Beginning Balances at Jun. 30, 2012 | $ 28,283 | $ 111 | $ 105,154 | $ (76,961) | $ (21) |
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) | |||
Reclassification of liability warrants | 0 | 0 | |||
Currency translation adjustment | (92) | (92) | |||
Net income | 7,608 | 7,608 | |||
Ending Balances, Shares at Jun. 30, 2013 | 117,088 | ||||
Ending Balances at Jun. 30, 2013 | 33,945 | $ 121 | 110,413 | (76,476) | (113) |
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 | ||||
Issuance of shares related to restricted stock | 0 | $ 0 | 0 | ||
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, Shares at Jun. 30, 2014 | 102,173 | ||||
Ending Balances at Jun. 30, 2014 | 3,990 | $ 102 | 115,244 | (111,240) | (116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,737 | 1,737 | |||
Exercise of options and warrants, shares | 2,630 | ||||
Exercise of options and warrants | 596 | $ 3 | 593 | ||
Issuance of shares related to restricted stock, shares | 1,325 | ||||
Issuance of shares related to restricted stock | 0 | $ 1 | (1) | ||
Shares canceled or surrendered as payment of tax withholding, shares | (904) | ||||
Repurchase of company stock, shares | (7,553) | ||||
Repurchase of company stock | (9,850) | $ (8) | (9,842) | ||
Currency translation adjustment | (135) | (135) | |||
Net income | 6,987 | 6,987 | |||
Ending Balances, Shares at Jun. 30, 2015 | 97,671 | ||||
Ending Balances at Jun. 30, 2015 | $ 3,325 | $ 98 | $ 117,573 | $ (114,095) | $ (251) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows from Operating Activities: | |||
Net income | $ 6,987 | $ 11,383 | $ 7,608 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 2,285 | 2,118 | 1,659 |
Stock-based compensation | 1,806 | 2,953 | 2,169 |
Amortization of deferred financing fees | 255 | 159 | 0 |
Amortization of debt discount | 198 | 122 | 0 |
Impairment of inventory | 0 | 0 | 3,923 |
Deferred income tax | 91 | 2,172 | (892) |
Changes in operating assets and liabilities: | |||
Decrease/(increase) in receivables | 2,651 | (2,044) | (3,653) |
Decrease/(increase) in inventory | (936) | 1,646 | (3,356) |
Decrease/(increase) in prepaid expenses and deposits | 1,486 | (2,318) | (1,065) |
Decrease/(increase) in long-term assets | 826 | (1,045) | (1,168) |
Increase/(decrease) in accounts payable | (171) | (2,384) | 1,593 |
Increase/(decrease) in accrued expenses | (2,170) | (537) | 3,403 |
Increase/(decrease) in other long-term liabilities | (87) | (120) | 441 |
Net Cash Provided by Operating Activities | 13,221 | 12,105 | 10,662 |
Cash Flows from Investing Activities: | |||
Purchase of equipment | (1,159) | (1,898) | (5,080) |
Purchase of intangible assets | 0 | (350) | 0 |
Net Cash Used in Investing Activities | (1,159) | (2,248) | (5,080) |
Cash Flows from Financing Activities: | |||
Proceeds from term loan | 0 | 45,825 | 0 |
Payment of deferred financing fees | 0 | (1,511) | 0 |
Excess tax benefits from stock-based compensation | 128 | 655 | 1,406 |
Repurchase of company stock | (9,850) | (46,171) | (7,123) |
Payment on term loan | (9,200) | (16,175) | 0 |
Exercise of options and warrants | 468 | 1,573 | 1,694 |
Net Cash Used in Financing Activities | (18,454) | (15,804) | (4,023) |
Foreign Currency Effect on cash | (90) | 35 | 92 |
Increase (Decrease) in cash and cash equivalents | (6,482) | (5,912) | 1,651 |
Cash and Cash Equivalents - beginning of period | 20,387 | 26,299 | 24,648 |
Cash and Cash Equivalents - end of period | 13,905 | 20,387 | 26,299 |
Non Cash Investing and Financing Activities: | |||
Increase in property and equipment/other long-term liabilities | 0 | 1,386 | 359 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for interest | 2,633 | 2,758 | 3 |
Cash paid for income taxes | $ 1,658 | $ 4,879 | $ 6,090 |
Common stock shares issued upon cashless warrant exercises | 1,763 | 2,698 | 3,793 |
Total cashless exercise price of warrants | $ 1,462 | $ 1,615 | $ 2,147 |
Gross warrants underlying cashless exercises | 2,924 | 3,409 | 4,564 |
The Company
The Company | 12 Months Ended |
Jun. 30, 2015 | |
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 to independent distributors and preferred customers located in the United States, Japan, Hong Kong, Australia, Canada, Philippines, Mexico, and Thailand. 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, Canine Health ® , our companion pet supplement formulated to combat oxidative stress in dogs, and Axio ® , our energy drink mixes. 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 Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
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, and loss contingencies. 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. Transaction gains and losses are included in other income (expense), net in the consolidated statements of operations and comprehensive income. 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, 2015 and 2014 . 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, commissions payable and other 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, 2015 and 2014 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, 2015 or 2014 is not necessary. No bad debt expense has been recorded for the years ended June 30, 2015 , 2014 , and 2013 . Inventory As of June 30, 2015 and 2014 , inventory consisted of (in thousands): June 30, 2015 2014 Finished goods $ 5,783 $ 4,749 Raw materials 3,465 4,077 Total inventory $ 9,248 $ 8,826 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 $0.3 million and $0.7 million at June 30, 2015 and June 30, 2014 , respectively, related to obsolete and slow-moving inventory. 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, 2015 and 2014 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, 2015 , the Company had $10.6 million in cash accounts at one financial institution and $3.3 million in other financial institutions. As of June 30, 2015 and 2014 and during the years then ended, 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. Subject to some exceptions based on local regulations, 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, 2015 and 2014 , the Company’s reserve balance for returns and allowances was $0.1 million and $0.6 million , respectively. Commissions and Incentives Commissions and incentives expenses are the Company’s most significant expenses and are classified as operating expenses. Commissions and incentives 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, 2015 , 2014 , and 2013 were $2.4 million , $2.0 million , and $2.9 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. For awards with market based performance conditions, the cost of the awards is recognized as the requisite service is rendered by employees, regardless of when, if ever, the market based performance conditions are satisfied. 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 stock units that include market based performance conditions is based on the closing market price of the Company's stock on the date of grant less the Company's expected dividend yield, with further adjustments made to reflect the market conditions that must be satisfied in order for the units to vest by using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model include the risk-free rate, expected volatility, expected dividends and the correlation coefficient. The fair value of cash-settled performance-based awards, 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 these 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 3.1 million and 0.3 million common shares issuable upon exercise of options and non-vested shares of restricted stock outstanding as of June 30, 2015 and 2014 , respectively, 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): Years ended June 30, 2015 2014 2013 Numerator: Net income $ 6,987 $ 11,383 $ 7,608 Denominator: Basic weighted-average common shares outstanding 97,293 105,791 112,276 Effect of dilutive securities: Stock awards and options 1,264 2,652 3,832 Warrants 495 3,156 6,780 Diluted weighted-average common shares outstanding 99,052 111,599 122,888 Basic $ 0.07 $ 0.11 $ 0.07 Diluted $ 0.07 $ 0.10 $ 0.06 Segment Information The Company operates in a single operating segment by selling products to an international network of independent distributors that operates in an integrated manner from market to market. Commissions 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 international network of independent distributors. The Company does not use profitability reports on a regional or divisional basis for making business decisions. However, the Company does report revenue in two geographic regions: Americas and Asia/Pacific. Revenues by geographic area are as follows (in thousands): Years ended June 30, 2015 2014 2013 Americas $ 138,118 $ 141,227 $ 133,046 Asia/Pacific 52,218 72,741 75,132 Total revenues $ 190,336 $ 213,968 $ 208,178 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, 2015 2014 2013 United States $ 132,831 $ 136,758 $ 131,508 Japan $ 41,428 $ 61,872 $ 69,492 As of June 30, 2015 long-lived assets were $6.5 million in the U.S. and $1.5 million in Japan. As of June 30, 2014 long-lived assets were $9.8 million in the U.S. and $2.3 million in Japan. Major Products The Company's revenues are largely attributed to two product lines, Protandim ® and the LifeVantage TrueScience ® skin care regimen, which each accounted for more than 10% of total revenues for each of the years ended June 30, 2015 , 2014 and 2013 . On a combined basis, these products represent approximately 83.7% , 88.5% and 87.1% of our worldwide gross revenues for the years ended June 30, 2015 , 2014 and 2013 , respectively. The following table shows revenues by major product line for the years ended June 30, 2015 , 2014 and 2013 . For the years ended June 30, 2015 2014 2013 Protandim® $ 120,967 63.6 % $ 142,935 66.8 % $ 138,996 66.8 % LifeVantage TrueScience® skin care regimen 38,287 20.1 % 46,474 21.7 % 42,229 20.3 % Other 31,082 16.3 % 24,559 11.5 % 26,953 12.9 % Total $ 190,336 100.0 % $ 213,968 100.0 % $ 208,178 100.0 % New Accounting Pronouncements In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, but has not elected early application. However, as of and for the current period, management does not believe that conditions exist or events have occurred that would require additional disclosure under the amendments in this update. In January 2015, FASB issued ASU No. 2015-01 , Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This guidance eliminates from GAAP the concept of extraordinary and unusual items, and is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early application is permitted. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. In April 2015, FASB issued ASU No. 2015-03 , Interest - Imputation of Interest (Subtopic 825-30): Simplifying the Presentation of Debt Issuance Costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update will become effective for the Company in the first quarter of fiscal 2016 and requires retrospective application. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. In July 2015, FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This guidance requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of (in thousands): June 30, 2015 2014 Equipment (includes computer hardware and software) $ 6,895 $ 6,354 Furniture and fixtures 1,481 1,428 Leasehold improvements 3,324 3,095 Vehicles 51 142 Accumulated depreciation (5,992 ) (4,078 ) Total property and equipment, net $ 5,759 $ 6,941 Depreciation expense totaled $2.3 million , $2.0 million , and $1.5 million for the years ended June 30, 2015 , 2014 , and 2013 , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of (in thousands): June 30, 2015 2014 Patent costs $ 2,330 $ 2,330 Accumulated amortization (1,046 ) (911 ) Total definite-lived intangible assets, net 1,284 1,419 Trademarks and other indefinite-lived intangible assets 595 595 Total intangible assets, net $ 1,879 $ 2,014 Amortization expense totaled $0.1 million , $0.1 million , and $0.1 million for the years ended June 30, 2015 , 2014 , and 2013 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, 2015 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | Other Accrued Expenses Other accrued expenses consist of (in thousands): June 30, 2015 2014 Accrued severance $ 638 $ 150 Accrued incentives and promotions to distributors 380 829 Accrued payroll and other employee expenses 583 1,382 Deferred revenue 990 887 Accrued payable to vendors 1,019 910 Other taxes payable 809 1,894 Accrued other expenses 1,181 1,502 Total other accrued expenses $ 5,600 $ 7,554 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 30, 2015 | |
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 was 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. The Company did not borrow any amounts under the Delayed Draw Term Loan. On May 1, 2015 the Company entered into an Amendment No 1 to Financing Agreement ("Amendment No. 1"). Amendment No. 1 revised the March 31, 2015 and June 30, 2015 consolidated EBITDA covenants from $20.6 million and $21.3 million , respectively, to $17.0 million for each quarter end. Amendment No. 1 also revised the minimum unrestricted cash and cash equivalents that the Company is required to hold from $10.0 million to $8.0 million for the reporting periods ended March 31, 2015 and June 30, 2015 . In addition, Amendment No. 1 required that the Company make accelerated principal payments on the Term Loan totaling $4.5 million during the fourth quarter of fiscal year 2015 . On August 27, 2015 the Company entered into an Amendment No. 2 to Financing Agreement ("Amendment No. 2" and collectively, with the Term Loan, the "Credit Facility"). Amendment No. 2 revised the covenants related to minimum consolidated EBITDA (as defined in the amended Financing Agreement) for the four consecutive fiscal quarters ending September 30, 2015 , December 31, 2015 , March 31, 2016 and June 30, 2016 from $22.2 million , $23.1 million , $24.4 million and $25.6 million , respectively, to $14.5 million , $15.0 million , $17.0 million and $17.5 million , respectively. In addition, Amendment No. 2 requires that the Company make additional monthly accelerated principal payments on the Term Loan in the amount of $0.5 million commencing on October 15, 2015 and continuing until the Term Loan has been paid in full. Amendment No. 2 also requires that we make additional accelerated payments at the end of each calendar quarter in the amount of all unrestricted cash on hand as of the close of business on the last day of the quarter in excess of $12.5 million . 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”). The Term Loan bears 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, 2015 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, 2015 , the Company made principal prepayments against the outstanding indebtedness of $4.5 million as part of the Amendment to the Term Loan discussed above. 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, 2015 , the Company was in compliance with the applicable covenants including those under the amended Credit Facility. The Company incurred transaction costs associated with the Credit Facility totaling $2.7 million , of which $0.5 million and $0.3 million was recorded in interest expense during the years ended June 30, 2015 and 2014 , respectively. The remaining $1.9 million as of June 30, 2015 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 2016 $ 11,141 2017 10,484 $ 21,625 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the years ended June 30, 2015 , 2014 , and 2013 , the Company issued 2.6 million , 5.2 million , and 7.3 million shares, respectively, of common stock as a result of the exercise of options and warrants and during the years ended June 30, 2015 , 2014 , and 2013 , the Company issued 1.3 million , 0.2 million , and 2.6 million shares, respectively, of restricted common stock. During the year ended June 30, 2015 , 0.9 million shares of restricted stock were canceled or surrendered as payment of tax withholding upon vesting. On November 6, 2014 , the Company announced a share repurchase program authorizing it to repurchase up to $7.0 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 operated in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934. The pre-arranged stock repurchase program terminated in accordance with its terms on February 13, 2015. Pursuant to the program, the Company purchased 4.5 million shares of its common stock at an aggregate purchase price of $5.9 million . The remaining $1.1 million authorized under the program for repurchases was unused. 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 operated in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934. The pre-arranged stock repurchase program terminated in accordance with its terms on December 31, 2014. Pursuant to the program, the Company purchased 3.0 million shares of its common stock at an aggregate purchase price of $4.0 million under 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. The pre-arranged stock repurchase program terminated in accordance with its terms on June 8, 2014. Pursuant to the program, the Company 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. The pre-arranged stock repurchase program terminated in accordance with its terms on December 1, 2013. Pursuant to the program, the Company purchased 2.1 million shares of its common stock at an aggregate purchase price of $5 million under this repurchase program. The Company’s Articles of Incorporation authorize the issuance of preferred shares. However, as of June 30, 2015 , none have been issued nor have any rights or preferences been assigned to the preferred shares by the Company’s Board of Directors. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2015 | |
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 10.0 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, 2015 there were awards outstanding, net of awards expired, for the purchase in aggregate of 2.1 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 August 21, 2014, 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 10.5 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, 2015 there were awards outstanding, net of awards expired, for an aggregate of 1.2 million shares of the Company’s common stock. The Company adopted a Performance Incentive Plan effective July 1, 2013 (the "Fiscal 2014 Performance Plan"). The Fiscal 2014 Performance Plan is intended 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 Fiscal 2014 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 Fiscal 2014 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 the Company's common stock and is remeasured at each reporting period date until settlement. The Company adopted a separate Performance Incentive Plan effective July 1, 2014 (the "Fiscal 2015 Performance Plan"). The Fiscal 2015 Performance Plan is substantially similar to the Fiscal 2014 Performance Plan except that the service-based vesting criteria occurs in a single installment and is achieved at the end of the third fiscal year after the award is granted if the participant has continuously remained in service from the date of the award through the end of the third fiscal year. 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, 2015 , 2014 , and 2013 , stock-based compensation of $1.7 million , $2.6 million and $2.2 million , respectively, was reflected as an increase to additional paid in capital and $0.1 million and 0.3 million was reflected as an increase to other accrued expenses for the fiscal years ended June 30, 2015 and 2014 . There were no increases to other accrued expenses related to stock-based compensation for the fiscal year ended June 30, 2013 . For the fiscal years ended June 30, 2015 , 2014 , and 2013 , all stock-based compensation was employee related. At June 30, 2015 there was $2.9 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 1.9 years. Stock Options The weighted-average grant-date fair value of stock options granted during the fiscal year ended June 30, 2013 was $2.49 . There were no stock option grants during the fiscal years ended June 30, 2015 and 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, 2015 2014 2013 Risk-free interest rate N/A N/A 0.82% Dividend yield N/A N/A — % Expected life in years N/A N/A 5.0- 6.08 Expected volatility N/A N/A 127% The following is a summary of stock option activity for the years ended June 30, 2015 , 2014 , and 2013 : Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) 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 Canceled — — Outstanding at June 30, 2013 7,010 1.08 Granted — $ — Exercised (1,400 ) 0.69 $ 2,282 Forfeited (469 ) 1.84 Expired or Canceled — — Outstanding at June 30, 2014 5,141 1.18 Granted — $ — Exercised (155 ) 0.72 $ 60 Forfeited (1,756 ) 1.31 Expired or Canceled — — Outstanding at June 30, 2015 3,230 1.12 4.87 $ 113 Exercisable at June 30, 2015 3,119 $ 1.07 4.80 $ 113 Restricted Shares The following is a summary of restricted shares granted during the years ended June 30, 2015 , 2014 , and 2013 : Nonvested Shares Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2012 162 — 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 — — Granted 1,325 $ 0.8 Vested (531 ) 2.37 Forfeited (770 ) 2.22 Nonvested at June 30, 2015 1,748 1.34 Vested at June 30, 2015 — — The total vesting date fair value of restricted shares that vested during the years ended June 30, 2015 , 2014 and 2013 was $0.6 million , $1.2 million and $0.1 million , respectively. Performance Stock Units During the year ended June 30, 2015 , the Company awarded performance stock units (the "Performance Stock Units") to its executive officers (the "Recipients). Vesting for the Performance Stock Units occurs over three consecutive annual performance periods and is subject to achievement of both service based and market based performance vesting requirements. Subject generally to the Recipient's continued service with the Company (the serviced based requirement), each Performance Stock Unit represents a contingent right for the Recipient to receive, within thirty days after the end of each of three annual performance periods, a distribution of shares of common stock of the Company equal to 0% to 200% of the target number of Performance Stock Units subject to the award for each performance period. The actual number of shares distributed will be based on the Company's total stockholder return ("TSR") performance during the relevant performance period, subject to acceleration upon a change in control of the Company. The vesting for 50% of the target Performance Stock Units is based upon the Company's absolute TSR for the Performance Period as compared to a matrix of fixed numeric values and the vesting for the other 50% of the target Performance Stock Units is based upon a relative comparison of the Company's TSR to the Vanguard Russell 2000 exchange traded fund. The weighted average grant date fair value of Performance Stock Units granted during the fiscal year ended June 30, 2015 was $1.54 , which will be recognized on a straight-line basis over the requisite service period, regardless of when, if ever, the market based performance conditions are satisfied. There were no Performance Stock Units granted during the years ended June 30, 2014 and 2013 . The fair value of Performance Stock Units granted was estimated using a Monte Carlo simulation model which included the following assumptions in order to reflect the performance conditions that must be satisfied for the share units to vest: June 30, 2015 Risk-free interest rate 1.07 % Dividend yield — % Expected volatility - company 54.1 % Expected volatility - peer company 15.7 % Total measurement period (years) 3.0 The following is a summary of Performance Stock Units granted during the year ended June 30, 2015 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2014 — — Granted 1,600 $ 1.54 Vested — — Forfeited (800 ) 1.54 Nonvested at June 30, 2015 800 1.54 Vested at June 30, 2015 — — Cash-Settled Performance Units The following is a summary of cash settled performance units granted during the years ended June 30, 2015 and 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 — Granted 482 1.15 Vested (353 ) — Forfeited (129 ) 1.16 Outstanding at June 30, 2015, nonvested — The fair value of vested awards under the Performance Plan as of June 30, 2015 was $0.2 million . Payments of $0.3 million were made to settle vested cash settled performance units during the year ended June 30, 2015 . No payments were made to settle vested cash-settled performance units during the fiscal year ended June 30, 2014 . No cash-settled performance units were granted or outstanding during the fiscal year ended June 30, 2013 . Warrants As of June 30, 2015 , 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, 2015 , 2014 , and 2013 (in thousands): Common Stock Warrants Outstanding and exercisable, June 30, 2012 12,964 Issued — Canceled — Exercised (4,723 ) Expired — Outstanding and exercisable at June 30, 2013 8,241 Issued — Canceled — Exercised (3,996 ) Expired — Outstanding and exercisable at June 30, 2014 4,245 Issued — Canceled — Exercised (3,637 ) Expired — Outstanding and exercisable at June 30, 2015 608 As of June 30, 2015 , 2014 , and 2013 , the Company had no warrants classified as derivative liabilities. |
Other Income (Expense), net
Other Income (Expense), net | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 2013 Business development incentive, net $ — $ 666 $ 695 Foreign currency transaction loss, net (498 ) (194 ) (1,689 ) Gain on settlement of forward contract 203 8 42 Other income (expense), net 136 (96 ) 40 Total other income (expense), net $ (159 ) $ 384 $ (912 ) 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. The income associated with the retention of these taxes is included in "Business development incentive, net" in the table above. No such incentives were realized during the fiscal year ended June 30, 2015 . |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As of June 30, 2015 , the Company had a Federal net operating loss (“NOL”) carry-forward of approximately $0.4 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, 2015 , state NOLs were $8.8 million and foreign NOLs were $0.9 million . The income tax expense for the years ended June 30, 2015 , 2014 , and 2013 consists of the following (in thousands): 2015 2014 2013 Income / (Loss) Before Income Taxes: Domestic $ 8,249 $ 13,894 $ 11,250 International 2,404 2,761 (97 ) $ 10,653 $ 16,655 $ 11,153 Current Taxes: Federal $ 2,600 $ 2,010 $ 4,087 State 446 72 383 Foreign 856 1,018 (33 ) Total Current Income Tax Provision $ 3,902 $ 3,100 $ 4,437 Deferred Taxes: Federal 97 2,299 (706 ) State 4 83 (77 ) Foreign (337 ) (210 ) (109 ) Total Deferred Income Tax Provision $ (236 ) $ 2,172 $ (892 ) Net Income Tax Provision $ 3,666 $ 5,272 $ 3,545 The effective income tax rate for the years ended June 30, 2015 , 2014 , and 2013 differs from the U.S. Federal statutory income tax rate due to the following: 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.0 % 1.9 % 1.8 % Tax return to provision true-up 1.2 % (3.0 )% (2.5 )% Permanent differences: — stock based compensation 1.2 % 1.3 % 0.8 % — domestic production activities deduction (1.6 )% (1.8 )% (2.7 )% — credit for increasing research activities (3.8 )% (1.5 )% (0.7 )% — other 0.4 % (0.5 )% 0.0 % Change in valuation allowance 0.0 % 0.1 % 0.0 % Net income tax provision 34.4 % 31.5 % 31.7 % The components of the deferred tax assets and liabilities as of June 30, 2015 and 2014 are as follows (in thousands): 2015 2014 Deferred tax assets: Federal, state, and foreign net operating loss carryovers $ 656 $ 1,016 Stock option compensation 1,353 1,353 Accrued vacation, allowance for returns, bonuses & other 1,395 572 Gross deferred tax asset $ 3,404 $ 2,941 Deferred tax liabilities: Patents and trademarks (468 ) (500 ) Change in tax accounting methods (98 ) (198 ) Property & equipment (1,268 ) (583 ) Gross deferred tax liabilities (1,834 ) (1,281 ) Less: valuation allowance (218 ) (217 ) Deferred tax assets, net $ 1,352 $ 1,443 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, 2012 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 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, 2014 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 are as follows (in thousands): Year ending June 30, Amount 2016 $ 2,427 2017 2,439 2018 1,328 2019 1,246 2020 1,290 Thereafter 5,105 Total future minimum lease payments $ 13,835 Rent expense totaled $2.4 million , $1.9 million , and $1.8 million for the years ended June 30, 2015 , 2014 , and 2013 , respectively. In addition, the Company has $0.2 million of sublease income to be received through the end of fiscal 2016. Contingencies The Company is occasionally involved in lawsuits and disputes arising in the normal course of business. The Company regularly reviews all pending litigation matters in which it is involved and establishes accruals deemed appropriate by management for these litigation matters when a probable loss estimate can be made. In the opinion of management, the amounts accrued for as of June 30, 2015 are appropriate based on the probable outcome of currently pending matters. |
Interim Financial Results (Unau
Interim Financial Results (Unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 : LIFEVANTAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED QUARTERLY RESULTS (in thousands except per share data) Fiscal Quarter Year ended June 30, 2015 First Second Third Fourth Revenue, net $ 51,633 $ 48,247 $ 45,155 $ 45,301 $ 190,336 Gross profit 45,954 40,761 37,603 38,008 162,326 Net income $ 4,716 $ 1,472 $ 573 $ 226 $ 6,987 Per common share: Income per share, basic $ 0.05 $ 0.02 $ 0.01 $ — $ 0.07 Income per share, diluted $ 0.05 $ 0.01 $ 0.01 $ — $ 0.07 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 $ 0.10 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On July 2, 2015 the Company announced that it terminated the employment of David Colbert as Chief Financial Officer, effective July 3, 2015 . Pursuant to Mr. Colbert's employment agreement, he will receive severance in an aggregate amount equal to $325,000 to be paid in substantially equal monthly installments over the 12 month period following the termination date. On July 15, 2015 the Company terminated the employment of David Phelps as Chief Sales Officer. Pursuant to Mr. Phelps' employment agreement, he will receive severance in an aggregate amount equal to $352,000 to be paid in substantially equal monthly installments over the 12 month period following the termination date. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
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, and loss contingencies. |
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. Transaction gains and losses are included in other income (expense), net in the consolidated statements of operations and comprehensive income. |
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, 2015 and 2014 . 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, commissions payable and other 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, 2015 and 2014 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, 2015 or 2014 is not necessary. |
Inventory | 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. Subject to some exceptions based on local regulations, 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 | Commissions and Incentives Commissions and incentives expenses are the Company’s most significant expenses and are classified as operating expenses. Commissions and incentives 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. For awards with market based performance conditions, the cost of the awards is recognized as the requisite service is rendered by employees, regardless of when, if ever, the market based performance conditions are satisfied. 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 stock units that include market based performance conditions is based on the closing market price of the Company's stock on the date of grant less the Company's expected dividend yield, with further adjustments made to reflect the market conditions that must be satisfied in order for the units to vest by using a Monte-Carlo simulation model. Key assumptions for the Monte-Carlo simulation model include the risk-free rate, expected volatility, expected dividends and the correlation coefficient. The fair value of cash-settled performance-based awards, 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 these 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. |
Segment Information | Segment Information The Company operates in a single operating segment by selling products to an international network of independent distributors that operates in an integrated manner from market to market. Commissions 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 international network of independent distributors. |
New Accounting Pronouncements | New Accounting Pronouncements In August 2014, FASB issued Accounting Standards Update (ASU) No. 2014-15 Preparation of Financial Statements - Going Concern (Subtopic 205-40), Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern. Under GAAP, continuation of a reporting entity as a going concern is presumed as the basis for preparing financial statements unless and until the entity’s liquidation becomes imminent. Preparation of financial statements under this presumption is commonly referred to as the going concern basis of accounting. If and when an entity’s liquidation becomes imminent, financial statements should be prepared under the liquidation basis of accounting in accordance with Subtopic 205-30, Presentation of Financial Statements-Liquidation Basis of Accounting. Even when an entity’s liquidation is not imminent, there may be conditions or events that raise substantial doubt about the entity’s ability to continue as a going concern. In those situations, financial statements should continue to be prepared under the going concern basis of accounting, but the amendments in this Update should be followed to determine whether to disclose information about the relevant conditions and events. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The Company will evaluate the going concern considerations in this ASU, but has not elected early application. However, as of and for the current period, management does not believe that conditions exist or events have occurred that would require additional disclosure under the amendments in this update. In January 2015, FASB issued ASU No. 2015-01 , Income Statement - Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items. This guidance eliminates from GAAP the concept of extraordinary and unusual items, and is effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early application is permitted. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. In April 2015, FASB issued ASU No. 2015-03 , Interest - Imputation of Interest (Subtopic 825-30): Simplifying the Presentation of Debt Issuance Costs. This guidance requires that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. This update will become effective for the Company in the first quarter of fiscal 2016 and requires retrospective application. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. In July 2015, FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory. This guidance requires an entity to measure in scope inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The amendments in this update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2016. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Accounting Policies [Abstract] | |
Components of inventory | As of June 30, 2015 and 2014 , inventory consisted of (in thousands): June 30, 2015 2014 Finished goods $ 5,783 $ 4,749 Raw materials 3,465 4,077 Total inventory $ 9,248 $ 8,826 |
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, 2015 2014 Equipment (includes computer hardware and software) $ 6,895 $ 6,354 Furniture and fixtures 1,481 1,428 Leasehold improvements 3,324 3,095 Vehicles 51 142 Accumulated depreciation (5,992 ) (4,078 ) Total property and equipment, net $ 5,759 $ 6,941 |
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): Years ended June 30, 2015 2014 2013 Numerator: Net income $ 6,987 $ 11,383 $ 7,608 Denominator: Basic weighted-average common shares outstanding 97,293 105,791 112,276 Effect of dilutive securities: Stock awards and options 1,264 2,652 3,832 Warrants 495 3,156 6,780 Diluted weighted-average common shares outstanding 99,052 111,599 122,888 Basic $ 0.07 $ 0.11 $ 0.07 Diluted $ 0.07 $ 0.10 $ 0.06 |
Revenues from unaffiliated customers by geographic regions and significant geographic area | Revenues by geographic area are as follows (in thousands): Years ended June 30, 2015 2014 2013 Americas $ 138,118 $ 141,227 $ 133,046 Asia/Pacific 52,218 72,741 75,132 Total revenues $ 190,336 $ 213,968 $ 208,178 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, 2015 2014 2013 United States $ 132,831 $ 136,758 $ 131,508 Japan $ 41,428 $ 61,872 $ 69,492 |
Revenues by major product line | The following table shows revenues by major product line for the years ended June 30, 2015 , 2014 and 2013 . For the years ended June 30, 2015 2014 2013 Protandim® $ 120,967 63.6 % $ 142,935 66.8 % $ 138,996 66.8 % LifeVantage TrueScience® skin care regimen 38,287 20.1 % 46,474 21.7 % 42,229 20.3 % Other 31,082 16.3 % 24,559 11.5 % 26,953 12.9 % Total $ 190,336 100.0 % $ 213,968 100.0 % $ 208,178 100.0 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 Equipment (includes computer hardware and software) $ 6,895 $ 6,354 Furniture and fixtures 1,481 1,428 Leasehold improvements 3,324 3,095 Vehicles 51 142 Accumulated depreciation (5,992 ) (4,078 ) Total property and equipment, net $ 5,759 $ 6,941 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of (in thousands): June 30, 2015 2014 Patent costs $ 2,330 $ 2,330 Accumulated amortization (1,046 ) (911 ) Total definite-lived intangible assets, net 1,284 1,419 Trademarks and other indefinite-lived intangible assets 595 595 Total intangible assets, net $ 1,879 $ 2,014 |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Expenses | Other accrued expenses consist of (in thousands): June 30, 2015 2014 Accrued severance $ 638 $ 150 Accrued incentives and promotions to distributors 380 829 Accrued payroll and other employee expenses 583 1,382 Deferred revenue 990 887 Accrued payable to vendors 1,019 910 Other taxes payable 809 1,894 Accrued other expenses 1,181 1,502 Total other accrued expenses $ 5,600 $ 7,554 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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 2016 $ 11,141 2017 10,484 $ 21,625 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 2013 Risk-free interest rate N/A N/A 0.82% Dividend yield N/A N/A — % Expected life in years N/A N/A 5.0- 6.08 Expected volatility N/A N/A 127% |
Summary of Stock Option Activity | The following is a summary of stock option activity for the years ended June 30, 2015 , 2014 , and 2013 : Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) 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 Canceled — — Outstanding at June 30, 2013 7,010 1.08 Granted — $ — Exercised (1,400 ) 0.69 $ 2,282 Forfeited (469 ) 1.84 Expired or Canceled — — Outstanding at June 30, 2014 5,141 1.18 Granted — $ — Exercised (155 ) 0.72 $ 60 Forfeited (1,756 ) 1.31 Expired or Canceled — — Outstanding at June 30, 2015 3,230 1.12 4.87 $ 113 Exercisable at June 30, 2015 3,119 $ 1.07 4.80 $ 113 |
Schedule of Nonvested Restricted Shares | The following is a summary of restricted shares granted during the years ended June 30, 2015 , 2014 , and 2013 : Nonvested Shares Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2012 162 — 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 — — Granted 1,325 $ 0.8 Vested (531 ) 2.37 Forfeited (770 ) 2.22 Nonvested at June 30, 2015 1,748 1.34 Vested at June 30, 2015 — — |
Share-based Awards other Than Option Fair Value Valuation Assumptions | The fair value of Performance Stock Units granted was estimated using a Monte Carlo simulation model which included the following assumptions in order to reflect the performance conditions that must be satisfied for the share units to vest: June 30, 2015 Risk-free interest rate 1.07 % Dividend yield — % Expected volatility - company 54.1 % Expected volatility - peer company 15.7 % Total measurement period (years) 3.0 |
Summary of Nonvested Restricted Stock Units | The following is a summary of Performance Stock Units granted during the year ended June 30, 2015 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2014 — — Granted 1,600 $ 1.54 Vested — — Forfeited (800 ) 1.54 Nonvested at June 30, 2015 800 1.54 Vested at June 30, 2015 — — |
Schedule of Performance Share Units Activity | The following is a summary of cash settled performance units granted during the years ended June 30, 2015 and 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 — Granted 482 1.15 Vested (353 ) — Forfeited (129 ) 1.16 Outstanding at June 30, 2015, nonvested — |
Summary of the Warrants Granted | The following is a summary of the warrant activity for the years ended June 30, 2015 , 2014 , and 2013 (in thousands): Common Stock Warrants Outstanding and exercisable, June 30, 2012 12,964 Issued — Canceled — Exercised (4,723 ) Expired — Outstanding and exercisable at June 30, 2013 8,241 Issued — Canceled — Exercised (3,996 ) Expired — Outstanding and exercisable at June 30, 2014 4,245 Issued — Canceled — Exercised (3,637 ) Expired — Outstanding and exercisable at June 30, 2015 608 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 2014 2013 Business development incentive, net $ — $ 666 $ 695 Foreign currency transaction loss, net (498 ) (194 ) (1,689 ) Gain on settlement of forward contract 203 8 42 Other income (expense), net 136 (96 ) 40 Total other income (expense), net $ (159 ) $ 384 $ (912 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The income tax expense for the years ended June 30, 2015 , 2014 , and 2013 consists of the following (in thousands): 2015 2014 2013 Income / (Loss) Before Income Taxes: Domestic $ 8,249 $ 13,894 $ 11,250 International 2,404 2,761 (97 ) $ 10,653 $ 16,655 $ 11,153 Current Taxes: Federal $ 2,600 $ 2,010 $ 4,087 State 446 72 383 Foreign 856 1,018 (33 ) Total Current Income Tax Provision $ 3,902 $ 3,100 $ 4,437 Deferred Taxes: Federal 97 2,299 (706 ) State 4 83 (77 ) Foreign (337 ) (210 ) (109 ) Total Deferred Income Tax Provision $ (236 ) $ 2,172 $ (892 ) Net Income Tax Provision $ 3,666 $ 5,272 $ 3,545 |
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, 2015 , 2014 , and 2013 differs from the U.S. Federal statutory income tax rate due to the following: 2015 2014 2013 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.0 % 1.9 % 1.8 % Tax return to provision true-up 1.2 % (3.0 )% (2.5 )% Permanent differences: — stock based compensation 1.2 % 1.3 % 0.8 % — domestic production activities deduction (1.6 )% (1.8 )% (2.7 )% — credit for increasing research activities (3.8 )% (1.5 )% (0.7 )% — other 0.4 % (0.5 )% 0.0 % Change in valuation allowance 0.0 % 0.1 % 0.0 % Net income tax provision 34.4 % 31.5 % 31.7 % |
The components of the deferred tax assets and liabilities | The components of the deferred tax assets and liabilities as of June 30, 2015 and 2014 are as follows (in thousands): 2015 2014 Deferred tax assets: Federal, state, and foreign net operating loss carryovers $ 656 $ 1,016 Stock option compensation 1,353 1,353 Accrued vacation, allowance for returns, bonuses & other 1,395 572 Gross deferred tax asset $ 3,404 $ 2,941 Deferred tax liabilities: Patents and trademarks (468 ) (500 ) Change in tax accounting methods (98 ) (198 ) Property & equipment (1,268 ) (583 ) Gross deferred tax liabilities (1,834 ) (1,281 ) Less: valuation allowance (218 ) (217 ) Deferred tax assets, net $ 1,352 $ 1,443 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 are as follows (in thousands): Year ending June 30, Amount 2016 $ 2,427 2017 2,439 2018 1,328 2019 1,246 2020 1,290 Thereafter 5,105 Total future minimum lease payments $ 13,835 |
Interim Financial Results (Un30
Interim Financial Results (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
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, 2015 and 2014 : LIFEVANTAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED QUARTERLY RESULTS (in thousands except per share data) Fiscal Quarter Year ended June 30, 2015 First Second Third Fourth Revenue, net $ 51,633 $ 48,247 $ 45,155 $ 45,301 $ 190,336 Gross profit 45,954 40,761 37,603 38,008 162,326 Net income $ 4,716 $ 1,472 $ 573 $ 226 $ 6,987 Per common share: Income per share, basic $ 0.05 $ 0.02 $ 0.01 $ — $ 0.07 Income per share, diluted $ 0.05 $ 0.01 $ 0.01 $ — $ 0.07 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 $ 0.10 |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | $ 100,000 | 600,000 | |
Research and development | $ 2,400,000 | $ 2,000,000 | $ 2,900,000 |
Percentage of likelihood of amount realized upon settlement | 50.00% | ||
Cash Accounts Held Primarily At Financial Institution | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | $ 10,600,000 | ||
Cash Accounts Held at Other Financial Institutions | |||
Concentration Risk [Line Items] | |||
Concentration of credit risk | $ 3,300,000 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Components of Inventory | ||
Finished goods | $ 5,783 | $ 4,749 |
Raw materials | 3,465 | 4,077 |
Total inventory | 9,248 | 8,826 |
Inventory valuation reserves | $ 300 | $ 700 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Property and Equipment (Details) | 12 Months Ended |
Jun. 30, 2015 | |
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 Accoun34
Summary of Significant Accounting Policies - Reconciliation of Earnings per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Accounting Policies [Abstract] | |||||||||||
Number of antidilutive securities (in shares) | 3,100 | 300 | |||||||||
Numerator: | |||||||||||
Net income | $ 226 | $ 573 | $ 1,472 | $ 4,716 | $ 2,351 | $ 2,494 | $ 3,282 | $ 3,256 | $ 6,987 | $ 11,383 | $ 7,608 |
Denominator: | |||||||||||
Basic weighted-average common shares outstanding (in shares) | 97,293 | 105,791 | 112,276 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock awards and options (in shares) | 1,264 | 2,652 | 3,832 | ||||||||
Warrants (in shares) | 495 | 3,156 | 6,780 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 99,052 | 111,599 | 122,888 | ||||||||
Basic (dollars per share) | $ 0 | $ 0.01 | $ 0.02 | $ 0.05 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.03 | $ 0.07 | $ 0.11 | $ 0.07 |
Diluted (dollars per share) | $ 0 | $ 0.01 | $ 0.01 | $ 0.05 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.03 | $ 0.07 | $ 0.10 | $ 0.06 |
Summary of Significant Accoun35
Summary of Significant Accounting Policies - Revenues by Geographic Area (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | Jun. 30, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of geographic segments | Segment | 2 | ||||||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | $ 45,301 | $ 45,155 | $ 48,247 | $ 51,633 | $ 56,038 | $ 55,064 | $ 51,538 | $ 51,328 | $ 190,336 | $ 213,968 | $ 208,178 |
Americas | |||||||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | 138,118 | 141,227 | 133,046 | ||||||||
Asia / Pacific | |||||||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | 52,218 | 72,741 | 75,132 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 6,500 | 9,800 | 6,500 | 9,800 | |||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | 132,831 | 136,758 | 131,508 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | $ 1,500 | $ 2,300 | 1,500 | 2,300 | |||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | $ 41,428 | $ 61,872 | $ 69,492 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Revenues by Major Products (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Revenue from External Customer [Line Items] | |||
Revenues | $ 190,336 | $ 213,968 | $ 208,178 |
Revenue, Percentage | 100.00% | 100.00% | 100.00% |
Product Concentration Risk | Sale Revenues, Gross | |||
Revenue from External Customer [Line Items] | |||
Concentration risk, percentage | 83.70% | 88.50% | 87.10% |
Protandim® | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 120,967 | $ 142,935 | $ 138,996 |
Revenue, Percentage | 63.60% | 66.80% | 66.80% |
LifeVantage TrueScience® skin care regimen | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 38,287 | $ 46,474 | $ 42,229 |
Revenue, Percentage | 20.10% | 21.70% | 20.30% |
Other | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 31,082 | $ 24,559 | $ 26,953 |
Revenue, Percentage | 16.30% | 11.50% | 12.90% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ (5,992) | $ (4,078) | |
Total property and equipment, net | 5,759 | 6,941 | |
Depreciation expense | 2,300 | 2,000 | $ 1,500 |
Equipment (includes computer hardware and software) | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,895 | 6,354 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,481 | 1,428 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,324 | 3,095 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 51 | $ 142 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, net | $ 1,879 | $ 2,014 | |
Amortization of intangible assets | 100 | 100 | $ 100 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2,016 | 100 | ||
2,017 | 100 | ||
2,018 | 100 | ||
2,019 | 100 | ||
2,020 | 100 | ||
Patent costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Patent costs | 2,330 | 2,330 | |
Accumulated amortization | (1,046) | (911) | |
Total definite-lived intangible assets, net | 1,284 | 1,419 | |
Trademark costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Trademarks and other indefinite-lived intangible assets | $ 595 | $ 595 |
Other Accrued Expenses (Details
Other Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Payables and Accruals [Abstract] | ||
Accrued severance | $ 638 | $ 150 |
Accrued incentives and promotions to distributors | 380 | 829 |
Accrued payroll and other employee expenses | 583 | 1,382 |
Deferred revenue | 990 | 887 |
Accrued payable to vendors | 1,019 | 910 |
Other taxes payable | 809 | 1,894 |
Accrued other expenses | 1,181 | 1,502 |
Total other accrued expenses | $ 5,600 | $ 7,554 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) | Oct. 15, 2015 | Jun. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Oct. 18, 2013 |
Line of Credit Facility [Line Items] | |||||||||||
Repayments of long-term debt | $ 9,200,000 | $ 16,175,000 | $ 0 | ||||||||
Debt issuance cost | 2,700,000 | ||||||||||
Interest expense during period | 500,000 | $ 300,000 | |||||||||
Unamortized deferred offering costs | $ 1,900,000 | $ 1,900,000 | |||||||||
Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Interest rate during period (in percent) | 8.75% | ||||||||||
Secured Debt | Greater of 1.25% or LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate (in percent) | 7.50% | 7.50% | |||||||||
Minimum variable rate basis ( in percent) | 1.25% | 1.25% | |||||||||
Secured Debt | Reference Rate at the Company's Option | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate (in percent) | 6.50% | 6.50% | |||||||||
October 2013 Term Loan | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 47,000,000 | ||||||||||
Repayments of long-term debt | $ 4,500,000 | ||||||||||
October 2013 Delayed Draw Term Loan | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 20,000,000 | ||||||||||
Financing Agreement, October 2013 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Consolidated EBITDA covenants | $ 21,300,000 | 21,300,000 | $ 20,600,000 | ||||||||
Minimum unrestricted cash and cash equivalents covenants | 10,000,000 | 10,000,000 | 10,000,000 | ||||||||
Financing Agreement Amendment, May 2015 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Consolidated EBITDA covenants | 17,000,000 | 17,000,000 | 17,000,000 | ||||||||
Minimum unrestricted cash and cash equivalents covenants | 8,000,000 | $ 8,000,000 | $ 8,000,000 | ||||||||
Financing Agreement Amendment, May 2015 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Accelerated principal payments on Term Loan covenants | $ 4,500,000 | ||||||||||
Scenario, Forecast | Financing Agreement Amendment, May 2015 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Consolidated EBITDA covenants | $ 25,600,000 | $ 24,400,000 | $ 23,100,000 | $ 22,200,000 | |||||||
Scenario, Forecast | Financing Agreement Amendment, August 2015 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Consolidated EBITDA covenants | $ 17,500,000 | $ 17,000,000 | $ 15,000,000 | 14,500,000 | |||||||
Minimum unrestricted cash and cash equivalents covenants | $ 12,500,000 | ||||||||||
Scenario, Forecast | Financing Agreement Amendment, August 2015 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Accelerated principal payments on Term Loan covenants | $ 500,000 |
Long-Term Debt - Future Princip
Long-Term Debt - Future Principal Payments (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Debt Disclosure [Abstract] | |
2,016 | $ 11,141 |
2,017 | 10,484 |
Total debt | $ 21,625 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands, $ in Thousands | Nov. 01, 2013 | Feb. 13, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 01, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Nov. 06, 2014 | Jun. 03, 2014 | Mar. 11, 2014 | Mar. 22, 2013 |
Class of Stock [Line Items] | ||||||||||||
Payments for repurchase of common stock | $ 9,850 | $ 46,171 | $ 7,123 | |||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock issued (in shares) | 2,600 | 5,200 | 7,300 | |||||||||
Restricted common stock to employees (in shares) | 1,300 | 200 | 2,600 | |||||||||
Restricted Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares canceled or surrendered as payment of tax withholding (shares) | 900 | |||||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock issued (in shares) | 2,630 | 5,185 | 7,270 | |||||||||
Restricted common stock to employees (in shares) | 1,325 | 225 | 2,616 | |||||||||
Shares canceled or surrendered as payment of tax withholding (shares) | 904 | 686 | ||||||||||
Stock repurchased during period (in shares) | 7,553 | 19,639 | 2,972 | |||||||||
Common Stock | Tender Offer | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchased during period (in shares) | 16,300 | |||||||||||
Payments for repurchase of common stock | $ 40,000 | |||||||||||
Transaction costs associated with repurchase of common stock | $ 300 | |||||||||||
Common Stock | Pre-Arranged Stock Repurchase Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Repurchase common stock amount authorized | $ 7,000 | $ 4,000 | $ 3,000 | $ 5,000 | ||||||||
Stock repurchased during period (in shares) | 4,500 | 2,200 | 3,000 | 2,100 | ||||||||
Payments for repurchase of common stock | $ 5,900 | $ 3,000 | $ 4,000 | $ 5,000 | ||||||||
Remaining authorized amount of common stock repurchase program | $ 1,100 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) | 3 Months Ended | 12 Months Ended | |||||
Sep. 30, 2014shares | Jun. 30, 2015USD ($)Vesting_Installlment$ / sharesshares | Jun. 30, 2014USD ($)shares | Jun. 30, 2013USD ($)$ / sharesshares | Jun. 30, 2012shares | Nov. 19, 2010shares | Nov. 21, 2006shares | |
Stock-Based Compensation | |||||||
Stock based compensation | $ | $ 1,737,000 | $ 2,606,000 | $ 2,169,000 | ||||
Stock-based compensation awards classified as a liability settled in cash | $ | 100,000 | 300,000 | 0 | ||||
Employee related stock-based compensation expense | $ | $ 1,700,000 | $ 2,600,000 | $ 2,200,000 | ||||
Weighted-average grant date fair value | $ / shares | $ 2.49 | ||||||
Options, Granted | 0 | 0 | |||||
Restricted Stock | |||||||
Stock-Based Compensation | |||||||
Number of shares granted | 1,325,000 | 225,000 | 2,808,000 | ||||
Number of shares outstanding | 1,748,000 | 1,724,000 | 2,737,000 | 162,000 | |||
Performance Stock Units | |||||||
Stock-Based Compensation | |||||||
Distribution period following performance period | 30 days | ||||||
Number of shares granted | 1,600,000 | 0 | 0 | ||||
Number of shares outstanding | 800,000 | 0 | |||||
2007 Long-Term Incentive Plan | |||||||
Equity Incentive Plans | |||||||
Maximum common stock issued under Long-Term Incentive Plan | 10,000,000 | ||||||
Right to purchase common stock, minimum price | $ / shares | $ 0.21 | ||||||
Right to purchase common stock, maximum price | $ / shares | $ 1.50 | ||||||
Contractual term of stock options granted | 10 years | ||||||
Company's common stock purchased in aggregate (shares) | 2,100,000 | ||||||
2010 Long-Term Incentive Plan | |||||||
Equity Incentive Plans | |||||||
Maximum common stock issued under Long-Term Incentive Plan | 10,500,000 | ||||||
Right to purchase common stock, minimum price | $ / shares | $ 0.63 | ||||||
Right to purchase common stock, maximum price | $ / shares | $ 3.53 | ||||||
Contractual term of stock options granted | 10 years | ||||||
Company's common stock purchased in aggregate (shares) | 1,200,000 | ||||||
2010 Long-Term Incentive Plan | Restricted Stock | |||||||
Stock-Based Compensation | |||||||
Unrecognized compensation cost | $ | $ 2,900,000 | ||||||
Period for recognition of unrecognized compensation cost | 1 year 10 months 24 days | ||||||
2014 Performance Incentive Plan | |||||||
Equity Incentive Plans | |||||||
Vesting period of Long-Term Incentive Plan | 3 years | ||||||
Number of vesting installments | Vesting_Installlment | 3 | ||||||
Minimum | Performance Stock Units | |||||||
Stock-Based Compensation | |||||||
Distribution percentage of target number of Performance Stock Units | 0.00% | ||||||
Minimum | 2007 Long-Term Incentive Plan | |||||||
Equity Incentive Plans | |||||||
Vesting period of Long-Term Incentive Plan | 1 year | ||||||
Minimum | 2010 Long-Term Incentive Plan | |||||||
Equity Incentive Plans | |||||||
Vesting period of Long-Term Incentive Plan | 1 year | ||||||
Maximum | Performance Stock Units | |||||||
Stock-Based Compensation | |||||||
Distribution percentage of target number of Performance Stock Units | 200.00% | ||||||
Maximum | 2007 Long-Term Incentive Plan | |||||||
Equity Incentive Plans | |||||||
Vesting period of Long-Term Incentive Plan | 3 years | ||||||
Maximum | 2010 Long-Term Incentive Plan | |||||||
Equity Incentive Plans | |||||||
Vesting period of Long-Term Incentive Plan | 4 years | ||||||
Company's TSR Compared to a Matrix | Performance Stock Units | |||||||
Stock-Based Compensation | |||||||
Vesting right percentage | 50.00% | ||||||
Company's TSR Compared to Vanguard Russell 2000 Exchange Trade Fund | Performance Stock Units | |||||||
Stock-Based Compensation | |||||||
Vesting right percentage | 50.00% |
Share-Based Compensation - Opti
Share-Based Compensation - Options Valuation Assumptions (Details) - 12 months ended Jun. 30, 2013 - Employee Stock Option | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected volatility - company | 127.00% |
Dividend yield assumption | 0.00% |
Minimum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free rate | 0.82% |
Expected life (years) | 5 years |
Maximum | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Expected life (years) | 6 years 29 days |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Summary of Stock Option Activity | |||||
Options, Granted | 0 | 0 | |||
Employee Stock Option | |||||
Summary of Stock Option Activity | |||||
Options, Outstanding Beginning Balance | 5,141,000 | 5,141,000 | 7,010,000 | 10,945,000 | |
Options, Granted | 0 | 0 | 152,000 | ||
Options, Exercised | (155,000) | (1,400,000) | (3,319,000) | ||
Options, Forfeited | (1,756,000) | (469,000) | (768,000) | ||
Options, Expired or Cancelled | 0 | 0 | 0 | ||
Options, Outstanding Ending Balance | 3,230,000 | 5,141,000 | 7,010,000 | 10,945,000 | |
Weighted Average Exercise Price | |||||
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 1.18 | $ 1.18 | $ 1.08 | $ 0.91 | |
Weighted Average Exercise Price, Granted | 0 | 0 | 2.82 | ||
Weighted Average Exercise Price, Exercised | 0.72 | 0.69 | 0.49 | ||
Weighted Average Exercise Price, Forfeited | 1.31 | 1.84 | 1.54 | ||
Weighted Average Exercise Price, Expired or Cancelled | 0 | 0 | |||
Outstanding, Weighted Average Exercise Price, Ending Balance | $ 1.12 | $ 1.18 | $ 1.08 | $ 0.91 | |
Weighted Average Remaining Contractual Term | |||||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 4 years 10 months 12 days | ||||
Weighted Average Remaining Contractual Term, Granted | |||||
Weighted Average Remaining Contractual Term, Exercised | |||||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 4 years 10 months 12 days | ||||
Additional Disclosures | |||||
Options, Exercisable (shares) | 3,119,000 | ||||
Weighted Average Exercise Price, Exercisable (dollars per share) | $ 1.07 | ||||
Exercisable, Weighted Average Remaining Contractual Term | 4 years 9 months 18 days | ||||
Outstanding, Aggregate Intrinsic Value, Beginning Balance | |||||
Aggregate Intrinsic Value, Granted | |||||
Aggregate Intrinsic Value, Exercised | $ 60 | $ 2,282 | $ 7,128 | ||
Outstanding, Aggregate Intrinsic Value, Ending Balance | 113 | ||||
Exercisable, Aggregate Intrinsic Value | $ 113 |
Share-Based Compensation - Nonv
Share-Based Compensation - Nonvested Restricted Shares (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares outstanding beginning period | 1,724 | 2,737 | 162 |
Shares granted | 1,325 | 225 | 2,808 |
Shares vested | (531) | (760) | (37) |
Shares forfeited | (770) | (478) | (196) |
Shares outstanding ending period | 1,748 | 1,724 | 2,737 |
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 | $ 2.46 | $ 2.61 | $ 0 |
Weighted average grant date fair value, granted | 0.80 | 1.79 | 2.62 |
Weighted average grant date fair value, vested and issued | 2.37 | 2.65 | 3.34 |
Weighted average grant date fair value, forfeited | 2.22 | 2.55 | 3.25 |
Weighted average grant date fair value, ending period | 1.34 | 2.46 | 2.61 |
Weighted average granted date fair value, vested shares | $ 0 | $ 0 | $ 0 |
Fair value of vested awards | $ 0.6 | $ 1.2 | $ 0.1 |
Share-Based Compensation - Othe
Share-Based Compensation - Other Than Options Valuation Assumptions (Details) - 12 months ended Jun. 30, 2015 - Performance Stock Units | Total |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk free rate | 1.07% |
Dividend yield assumption | 0.00% |
Expected volatility - company | 54.10% |
Expected volatility - peer company | 15.70% |
Total measurement period | 3 years |
Share-Based Compensation - No48
Share-Based Compensation - Nonvested Restricted Share Units (Details) - Performance Stock Units - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | 1,600,000 | 0 | 0 |
Shares vested | 0 | ||
Shares forfeited | (800,000) | ||
Shares outstanding ending period | 800,000 | 0 | |
Vested shares | 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 | $ 0 | ||
Weighted average grant date fair value, granted | 1.54 | $ 1.54 | |
Weighted average grant date fair value, vested and issued | 0 | ||
Weighted average grant date fair value, forfeited | 1.54 | ||
Weighted average grant date fair value, ending period | 1.54 | $ 0 | |
Weighted average granted date fair value, vested shares | $ 0 |
Share-Based Compensation - No49
Share-Based Compensation - Nonvested Performance Shares (Details) - Cash-Settled Performance Units - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | 0 | |
Shares granted | 482,000 | 245,000 | 0 |
Shares vested | (353,000) | (214,000) | |
Shares forfeited | (129,000) | (31,000) | |
Shares outstanding ending period | 0 | 0 | 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 | $ 1.15 | 1.48 | |
Weighted average grant date fair value, vested and issued | 0 | 0 | |
Weighted average grant date fair value, forfeited | $ 1.16 | $ 1.51 | |
Weighted average grant date fair value, ending period | $ 0 | ||
Fair value of vested awards | $ 200,000 | ||
Payments made to settle vested performance share units | $ 300,000 | $ 0 |
Share-Based Compensation - Summ
Share-Based Compensation - Summary of Warrants (Details) - Warrants - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Summary of the warrants issued | |||
Outstanding and exercisable, Beginning balance | 4,245 | 8,241 | 12,964 |
Issued | 0 | 0 | 0 |
Cancelled | 0 | 0 | 0 |
Exercised | (3,637) | (3,996) | (4,723) |
Expired | 0 | 0 | 0 |
Outstanding and exercisable, Ending balance | 608 | 4,245 | 8,241 |
Other Income (Expense), net (De
Other Income (Expense), net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Other Income and Expenses [Abstract] | |||
Business development incentive, net | $ 0 | $ 666 | $ 695 |
Foreign currency transaction loss, net | (498) | (194) | (1,689) |
Gain on settlement of forward contract | 203 | 8 | 42 |
Other income (expense), net | 136 | (96) | 40 |
Total other income (expense), net | $ (159) | $ 384 | $ (912) |
Income Taxes (Details)
Income Taxes (Details) - Jun. 30, 2015 - USD ($) $ in Millions | Total |
Operating Loss Carryforwards [Line Items] | |
Percentage of likelihood for recognition of uncertain tax positions | 50.00% |
Internal Revenue Service (IRS) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 0.4 |
State and Local Jurisdiction | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 8.8 |
Foreign Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 0.9 |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Income / (Loss) Before Income Taxes: | |||
Domestic | $ 8,249 | $ 13,894 | $ 11,250 |
International | 2,404 | 2,761 | (97) |
Income / (Loss) Before Income Taxes | 10,653 | 16,655 | 11,153 |
Current Taxes | |||
Federal | 2,600 | 2,010 | 4,087 |
State | 446 | 72 | 383 |
Foreign | 856 | 1,018 | (33) |
Total Current Income Tax Provision | 3,902 | 3,100 | 4,437 |
Deferred Taxes | |||
Federal | 97 | 2,299 | (706) |
State | 4 | 83 | (77) |
Foreign | (337) | (210) | (109) |
Total Deferred Income Tax Provision | (236) | 2,172 | (892) |
Income Tax Expense (Benefit), Total | $ 3,666 | $ 5,272 | $ 3,545 |
Income Taxes - Effective Income
Income Taxes - Effective Income tax Rate (Details) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
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 | 2.00% | 1.90% | 1.80% |
Tax return to provision true-up | 1.20% | (3.00%) | (2.50%) |
Permanent differences: | |||
— stock based compensation | 1.20% | 1.30% | 0.80% |
— domestic production activities deduction | (1.60%) | (1.80%) | (2.70%) |
— credit for increasing research activities | (3.80%) | (1.50%) | (0.70%) |
— other | 0.40% | (0.50%) | 0.00% |
Change in valuation allowance | 0.00% | 0.10% | 0.00% |
Net income tax provision | 34.40% | 31.50% | 31.70% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Deferred tax assets: | ||
Federal, state, and foreign net operating loss carryovers | $ 656 | $ 1,016 |
Stock option compensation | 1,353 | 1,353 |
Accrued vacation, allowance for returns, bonuses & other | 1,395 | 572 |
Gross deferred tax asset | 3,404 | 2,941 |
Deferred liabilities | ||
Patents and trademarks | (468) | (500) |
Change in tax accounting methods | (98) | (198) |
Property & equipment | (1,268) | (583) |
Gross deferred tax liabilities | (1,834) | (1,281) |
Less: valuation allowance | (218) | (217) |
Deferred tax assets, net | $ 1,352 | $ 1,443 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Future minimum lease payments under the non-cancelable leases | |||
2,016 | $ 2,427 | ||
2,017 | 2,439 | ||
2,018 | 1,328 | ||
2,019 | 1,246 | ||
2,020 | 1,290 | ||
Thereafter | 5,105 | ||
Total future minimum lease payments | 13,835 | ||
Rent expense | 2,400 | $ 1,900 | $ 1,800 |
Sublease income to be received through 2016 | $ 200 |
Interim Financial Results (Un57
Interim Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Summary of selected quarterly financial information | |||||||||||
Revenue, net | $ 45,301 | $ 45,155 | $ 48,247 | $ 51,633 | $ 56,038 | $ 55,064 | $ 51,538 | $ 51,328 | $ 190,336 | $ 213,968 | $ 208,178 |
Gross profit | 38,008 | 37,603 | 40,761 | 45,954 | 47,056 | 46,605 | 43,594 | 43,519 | 162,326 | 180,774 | 171,535 |
Net income | $ 226 | $ 573 | $ 1,472 | $ 4,716 | $ 2,351 | $ 2,494 | $ 3,282 | $ 3,256 | $ 6,987 | $ 11,383 | $ 7,608 |
Per common share: | |||||||||||
Basic (dollars per share) | $ 0 | $ 0.01 | $ 0.02 | $ 0.05 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.03 | $ 0.07 | $ 0.11 | $ 0.07 |
Diluted (dollars per share) | $ 0 | $ 0.01 | $ 0.01 | $ 0.05 | $ 0.02 | $ 0.02 | $ 0.03 | $ 0.03 | $ 0.07 | $ 0.10 | $ 0.06 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event - USD ($) $ in Thousands | Jul. 15, 2015 | Jul. 03, 2015 |
Chief Financial Officer | ||
Subsequent Event [Line Items] | ||
Aggregate termination severance amount | $ 325 | |
Employment termination severance payment period | 12 months | |
Chief Sales Officer | ||
Subsequent Event [Line Items] | ||
Aggregate termination severance amount | $ 352 | |
Employment termination severance payment period | 12 months |