Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Nov. 30, 2016 | Dec. 31, 2015 | |
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, 2016 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2,016 | ||
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 | $ 133.2 | ||
Entity Common Stock, Shares Outstanding | 14,057,722 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Current assets | ||
Cash and cash equivalents | $ 7,883 | $ 13,905 |
Accounts receivable | 1,552 | 1,031 |
Income tax receivable | 0 | 2,179 |
Inventory, net | 25,116 | 9,248 |
Current deferred income tax asset | 2,776 | 1,117 |
Prepaid expenses and deposits | 5,082 | 2,995 |
Total current assets | 42,409 | 30,475 |
Long-term assets | ||
Property and equipment, net | 3,456 | 5,759 |
Intangible assets, net | 1,744 | 1,879 |
Long-term deferred income tax asset | 1,130 | 235 |
Other long-term assets | 1,520 | 1,433 |
TOTAL ASSETS | 50,259 | 39,781 |
Current liabilities | ||
Accounts payable | 8,891 | 2,614 |
Commissions payable | 7,719 | 6,505 |
Income tax payable | 1,206 | 0 |
Other accrued expenses | 8,734 | 5,600 |
Current portion of long-term debt | 2,000 | 11,141 |
Total current liabilities | 28,550 | 25,860 |
Long-term debt | ||
Principal amount | 7,500 | 10,484 |
Less: unamortized discount and deferred offering costs | (91) | (1,951) |
Long-term debt, net of unamortized discount and deferred offering costs | 7,409 | 8,533 |
Other long-term liabilities | 2,169 | 2,063 |
Total liabilities | 38,128 | 36,456 |
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 14,028 and 13,958 issued and outstanding as of June 30, 2016 and 2015, respectively | 14 | 14 |
Additional paid-in capital | 120,150 | 117,657 |
Accumulated deficit | (108,076) | (114,095) |
Accumulated other comprehensive income (loss) | 43 | (251) |
Total stockholders’ equity | 12,131 | 3,325 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 50,259 | $ 39,781 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2016 | Jun. 30, 2015 |
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 | 14,028,000 | 13,958,000 |
Common stock, shares outstanding | 14,028,000 | 13,958,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income Statement [Abstract] | |||
Revenue, net | $ 206,540 | $ 190,336 | $ 213,968 |
Cost of sales | 33,932 | 28,010 | 33,194 |
Gross profit | 172,608 | 162,326 | 180,774 |
Operating expenses: | |||
Commissions and incentives | 103,120 | 91,074 | 104,525 |
Selling, general and administrative | 56,074 | 57,353 | 56,801 |
Total operating expenses | 159,194 | 148,427 | 161,326 |
Operating income | 13,414 | 13,899 | 19,448 |
Other income (expense): | |||
Interest expense | (3,321) | (3,087) | (3,177) |
Other income (expense), net | (1,409) | (159) | 384 |
Total other income (expense) | (4,730) | (3,246) | (2,793) |
Income before income taxes | 8,684 | 10,653 | 16,655 |
Income tax expense | (2,665) | (3,666) | (5,272) |
Net income | $ 6,019 | $ 6,987 | $ 11,383 |
Net income per share: | |||
Basic (dollars per share) | $ 0.44 | $ 0.50 | $ 0.75 |
Diluted (dollars per share) | $ 0.41 | $ 0.49 | $ 0.71 |
Weighted average shares outstanding: | |||
Basic (in shares) | 13,730 | 13,899 | 15,113 |
Diluted (in shares) | 14,531 | 14,150 | 15,943 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | $ 294 | $ (135) | $ (3) |
Other comprehensive income (loss), net of tax: | 294 | (135) | (3) |
Comprehensive income | $ 6,313 | $ 6,852 | $ 11,380 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - 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, 2013 | 16,732 | ||||
Beginning Balances at Jun. 30, 2013 | $ 33,945 | $ 17 | $ 110,517 | $ (76,476) | $ (113) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 2,606 | 2,606 | |||
Exercise of options and warrants, shares | 741 | ||||
Exercise of options and warrants | 2,209 | $ 1 | 2,208 | ||
Issuance of shares related to restricted stock, shares | 32 | ||||
Issuance of shares related to restricted stock | 0 | $ 0 | 0 | ||
Shares canceled or surrendered as payment of tax withholding, shares | (98) | ||||
Repurchase of company stock, shares | (2,806) | ||||
Repurchase of company stock | (46,150) | $ (3) | (46,147) | ||
Currency translation adjustment | (3) | (3) | |||
Net income | 11,383 | 11,383 | |||
Ending Balances, Shares at Jun. 30, 2014 | 14,601 | ||||
Ending Balances at Jun. 30, 2014 | 3,990 | $ 15 | 115,331 | (111,240) | (116) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,737 | 1,737 | |||
Exercise of options and warrants, shares | 376 | ||||
Exercise of options and warrants | 589 | $ 0 | 589 | ||
Issuance of shares related to restricted stock, shares | 189 | ||||
Issuance of shares related to restricted stock | 0 | $ 0 | 0 | ||
Shares canceled or surrendered as payment of tax withholding, shares | (129) | ||||
Repurchase of company stock, shares | (1,079) | ||||
Repurchase of company stock | (9,843) | $ (1) | (9,842) | ||
Currency translation adjustment | (135) | (135) | |||
Net income | 6,987 | 6,987 | |||
Ending Balances, Shares at Jun. 30, 2015 | 13,958 | ||||
Ending Balances at Jun. 30, 2015 | 3,325 | $ 14 | 117,657 | (114,095) | (251) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,966 | 1,966 | |||
Exercise of options and warrants, shares | 52 | ||||
Exercise of options and warrants | 527 | $ 0 | 527 | ||
Issuance of shares related to restricted stock, shares | 76 | ||||
Issuance of shares related to restricted stock | 0 | $ 0 | 0 | ||
Shares canceled or surrendered as payment of tax withholding, shares | (58) | ||||
Currency translation adjustment | 294 | 294 | |||
Net income | 6,019 | 6,019 | |||
Ending Balances, Shares at Jun. 30, 2016 | 14,028 | ||||
Ending Balances at Jun. 30, 2016 | $ 12,131 | $ 14 | $ 120,150 | $ (108,076) | $ 43 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Cash Flows from Operating Activities: | |||
Net income | $ 6,019 | $ 6,987 | $ 11,383 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 1,895 | 2,285 | 2,118 |
Loss on disposal of fixed assets | 1,186 | 0 | 0 |
Stock-based compensation | 2,621 | 1,806 | 2,953 |
Amortization of deferred financing fees | 232 | 255 | 159 |
Amortization of debt discount | 183 | 198 | 122 |
Write-off of capitalized debt transaction costs pursuant to debt refinance | 1,544 | 0 | 0 |
Deferred income tax | (2,554) | 91 | 2,172 |
Changes in operating assets and liabilities: | |||
Decrease/(increase) in receivables | 1,770 | 2,651 | (2,044) |
Decrease/(increase) in inventory | (15,650) | (936) | 1,646 |
Decrease/(increase) in prepaid expenses and deposits | 392 | 1,486 | (2,318) |
Decrease/(increase) in long-term assets | 258 | 826 | (1,045) |
Increase/(decrease) in accounts payable | 3,673 | (171) | (2,384) |
Increase/(decrease) in accrued expenses | 3,449 | (2,170) | (537) |
Increase/(decrease) in other long-term liabilities | 968 | (87) | (120) |
Net Cash Provided by Operating Activities | 5,986 | 13,221 | 12,105 |
Cash Flows from Investing Activities: | |||
Purchase of equipment | (562) | (1,159) | (1,898) |
Purchase of intangible assets | 0 | 0 | (350) |
Net Cash Used in Investing Activities | (562) | (1,159) | (2,248) |
Cash Flows from Financing Activities: | |||
Proceeds from term loan | 10,000 | 0 | 45,825 |
Payment of deferred financing fees | (99) | 0 | (1,511) |
Excess tax benefits from stock-based compensation | 266 | 128 | 655 |
Repurchase of company stock | 0 | (9,850) | (46,171) |
Payment on term loan | (22,125) | (9,200) | (16,175) |
Exercise of options and warrants | 261 | 468 | 1,573 |
Net Cash Used in Financing Activities | (11,697) | (18,454) | (15,804) |
Foreign Currency Effect on cash | 251 | (90) | 35 |
Decrease in cash and cash equivalents | (6,022) | (6,482) | (5,912) |
Cash and Cash Equivalents - beginning of period | 13,905 | 20,387 | 26,299 |
Cash and Cash Equivalents - end of period | 7,883 | 13,905 | 20,387 |
Non Cash Investing and Financing Activities: | |||
Increase in property and equipment/other long-term liabilities | 0 | 0 | 1,386 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | |||
Cash paid for interest | 1,342 | 2,633 | 2,758 |
Cash paid for income taxes | $ 1,368 | $ 1,658 | $ 4,879 |
Common stock shares issued upon cashless warrant exercises | 6 | 252 | 385 |
Total cashless exercise price of warrants | $ 9 | $ 1,462 | $ 1,615 |
Gross warrants underlying cashless exercises | 6 | 418 | 487 |
The Company
The Company | 12 Months Ended |
Jun. 30, 2016 | |
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 direct sales business opportunity to preferred customers, retail customers and independent distributors who seek a healthy lifestyle and financial freedom. We sell our products to preferred customers, retail customers and independent distributors located in the United States, Japan, Hong Kong, Australia, Canada, the Philippines, Mexico, Thailand, the United Kingdom and the Netherlands. We engage in the identification, research, development and distribution of advanced nutraceutical dietary supplements and skin care products, including Protandim ® , our line of scientifically-validated dietary supplements, LifeVantage TrueScience ® , our line of anti-aging skin care products, Canine Health ® , our companion pet supplement formulated to combat oxidative stress in dogs, Axio ® , our energy drink mixes, and PhysIQ ™ , our smart weight management system. 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, 2016 | |
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 valuation and 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 and as a component of comprehensive income. 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, 2016 and 2015 . 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, 2016 and 2015 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, 2016 or 2015 is not necessary. No bad debt expense has been recorded for the years ended June 30, 2016 , 2015 , and 2014 . Inventory As of June 30, 2016 and 2015 , inventory consisted of (in thousands): June 30, 2016 2015 Finished goods $ 14,852 $ 5,783 Raw materials 10,264 3,465 Total inventory $ 25,116 $ 9,248 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 $0.4 million and $0.3 million at June 30, 2016 and June 30, 2015 , 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 in other income (expense), net. 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. During the year ended June 30, 2016 , the Company recognized a loss on disposal of $1.2 million related to the write-off of previously capitalized software development costs incurred. 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, 2016 and 2015 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, 2016 , the Company had $4.6 million in cash accounts at one financial institution and $3.3 million in other financial institutions. As of June 30, 2016 and 2015 , 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 shipment, which is when passage of title and risk of loss occurs. 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, 2016 and 2015 , the Company’s reserve balance for returns and allowances was $0.3 million and $0.1 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. Commissions and incentives 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, 2016 , 2015 , and 2014 were $1.0 million , $2.4 million , and $2.0 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 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. Reverse Stock Split In October 2015, following approval of the Company's shareholders, the Company's board of directors approved the filing of an amendment to the Company's amended and restated articles of incorporation to effectuate a reverse split of the issued and outstanding shares of the Company's common stock on a one-for-seven basis. The reverse stock split was effective on October 19, 2015 . The par value and authorized number of shares of common stock were not adjusted as a result of the reverse split. All fractional shares resulting from the reverse stock split were rounded up. All issued and outstanding common stock and per share amounts contained within the Company's consolidated financial statements and footnotes have been retroactively adjusted to reflect this reverse stock split for all periods presented. 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 liabilities or 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 would be the largest liability or benefit that the Company believes has greater than a 50% likelihood of being realized upon settlement. Income Per Share Basic income per common share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period, less unvested restricted stock awards. Diluted income per common share is computed by dividing net income by the weighted-average common shares and potentially dilutive common share equivalents using the treasury stock method. The effects of approximately 0.2 million and 0.4 million common shares issuable upon exercise of options and non-vested shares of restricted stock outstanding as of June 30, 2016 and 2015 , respectively, are not included in the computations as their effect was anti-dilutive. The following is a reconciliation of net income 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, 2016 2015 2014 Numerator: Net income $ 6,019 $ 6,987 $ 11,383 Denominator: Basic weighted-average common shares outstanding 13,730 13,899 15,113 Effect of dilutive securities: Stock awards and options 735 180 379 Warrants 66 71 451 Diluted weighted-average common shares outstanding 14,531 14,150 15,943 Net income per share, basic $ 0.44 $ 0.50 $ 0.75 Net income per share, diluted $ 0.41 $ 0.49 $ 0.71 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 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: the Americas region and the Asia/Pacific & Europe region. Revenues by geographic area are as follows (in thousands): Years ended June 30, 2016 2015 2014 Americas $ 158,291 $ 138,118 $ 141,227 Asia/Pacific & Europe 48,249 52,218 72,741 Total revenues $ 206,540 $ 190,336 $ 213,968 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, 2016 2015 2014 United States $ 152,830 $ 132,831 $ 136,758 Japan $ 36,343 $ 41,428 $ 61,872 As of June 30, 2016 long-lived assets were $4.2 million in the U.S. and $1.3 million in Japan. As of June 30, 2015 long-lived assets were $6.5 million in the U.S. and $1.5 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, 2016 , 2015 and 2014 . On a combined basis, these products represent approximately 77.9% , 83.7% and 88.5% of our worldwide gross revenues for the years ended June 30, 2016 , 2015 and 2014 , respectively. The following table shows revenues by major product line for the years ended June 30, 2016 , 2015 and 2014 . For the years ended June 30, 2016 2015 2014 Protandim ® product line $ 128,019 62.0 % $ 120,967 63.6 % $ 142,935 66.8 % LifeVantage TrueScience® skin care regimen 32,914 15.9 % 38,287 20.1 % 46,474 21.7 % Other 45,607 22.1 % 31,082 16.3 % 24,559 11.5 % Total $ 206,540 100.0 % $ 190,336 100.0 % $ 213,968 100.0 % New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration it expects to receive in exchange for those goods or services. ASC 606 will be effective for the Company in the first quarter of fiscal 2019. The Company has performed a detailed analysis and does not anticipate that ASC 606 will have a significant impact on revenue recognition or its consolidated financial statements due to the types of revenue transactions that the Company enters into. Subsequent to the release of the updated revenue recognition standard discussed above, FASB issued Accounting Standards Update (ASU) 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. These updates are intended to improve the operability and understandability of the implementation guidance for the updated revenue standard as it relates to the subjects noted. The amendments in these updates have the same effective date as ASC 606 as noted above, and the Company does not anticipate that these updates will have a significant impact on its revenue recognition policy or its consolidated financial statements. In April 2015, FASB issued ASU 2015-03 , Interest - Imputation of Interest (Subtopic 835-30): 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. The Company adopted this updated standard in the current year during the interim period ended September 30, 2015 by reclassifying the debt issuance costs from long-term assets to a direct deduction from the related debt, consistent with the debt discount. All prior period balances have been retrospectively adjusted. In November 2015, FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this update require that all deferred tax assets or liabilities be classified as noncurrent in the classified statement of financial position. The amendments in this update are effective for the annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 841) . For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. The Company is currently evaluating the impact that this amendment will have on its consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The amendments in this update are effective for annual periods beginning after December 31, 2016 and interim periods within those annual periods. The Company is currently evaluating the impact that this amendment will have on its consolidated financial statements. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 30, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consist of (in thousands): June 30, 2016 2015 Equipment (includes computer hardware and software) $ 6,402 $ 6,895 Furniture and fixtures 1,485 1,481 Leasehold improvements 3,497 3,324 Vehicles 51 51 Accumulated depreciation (7,979 ) (5,992 ) Total property and equipment, net $ 3,456 $ 5,759 Depreciation expense totaled $1.8 million , $2.3 million , and $2.0 million for the years ended June 30, 2016 , 2015 , and 2014 , respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consist of (in thousands): June 30, 2016 2015 Patent costs $ 2,330 $ 2,330 Accumulated amortization (1,181 ) (1,046 ) Total definite-lived intangible assets, net 1,149 1,284 Trademarks and other indefinite-lived intangible assets 595 595 Total intangible assets, net $ 1,744 $ 1,879 Amortization expense totaled $0.1 million , $0.1 million , and $0.1 million for the years ended June 30, 2016 , 2015 , and 2014 , 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, 2016 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | Other Accrued Expenses Other accrued expenses consist of (in thousands): June 30, 2016 2015 Accrued severance $ 100 $ 638 Accrued incentives and promotions to distributors 408 380 Accrued payroll and other employee expenses 774 578 Deferred revenue 2,406 990 Accrued payable to vendors 838 1,019 Other taxes payable 1,410 809 Accrued incentive compensation 1,320 55 Accrued other expenses 1,478 1,131 Total other accrued expenses $ 8,734 $ 5,600 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 30, 2016 | |
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 “October 2013 Term Loan”) and a delayed draw term loan facility in an aggregate principal amount not to exceed $20 million (the “October 2013 Delayed Draw Term Loan”). The October 2013 Delayed Draw Term Loan was available for borrowing in specified minimum amounts from time to time beginning after the effective date of the Financing Agreement until October 18, 2014 . The Company did not borrow any amounts under the October 2013 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 was 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 certain accelerated principal payments on the October 2013 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 October 2013 Term Loan, as previously amended by Amendment No. 1, the "October 2013 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 required that the Company make additional monthly accelerated principal payments on the October 2013 Term Loan in the amount of $0.5 million commencing on October 15, 2015 and continuing until the October 2013 Term Loan was paid in full. Amendment No. 2 also required that the Company make additional accelerated payments at the end of each fiscal 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 October 2013 Term Loan was payable in consecutive quarterly installments beginning with the calendar quarter ended March 31, 2014 and matured 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 October 2013 Term Loan bore 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, 2016 the average interest rate was 8.75% . On March 30, 2016 , the Company repaid the full amount outstanding under the October 2013 Term Loan and terminated the October 2013 Credit Facility. On March 30, 2016 , the Company entered into a Loan Agreement (the "March 2016 Loan Agreement") to refinance its outstanding debt under the October 2013 Term Loan. In connection with the March 2016 Loan Agreement and on the same date, the Company entered into a Security Agreement (the "March 2016 Security Agreement"). The March 2016 Loan Agreement provides for a term loan in an aggregate principal amount of $10.0 million (the "March 2016 Term Loan") and a revolving loan facility in an aggregate principal amount not to exceed $2.0 million (the "March 2016 Revolving Loan," and collectively with the March 2016 Term Loan, the March 2016 Loan Agreement and the March 2016 Security Agreement, the "March 2016 Credit Facility"). The principal amount of the March 2016 Term Loan is payable in consecutive quarterly installments in the amount of $0.5 million plus accrued interest beginning with the fiscal quarter ended June 30, 2016 and maturing on March 30, 2019 (the "Maturity Date"). The March 2016 Term Loan bears interest at a fixed rate of 4.93% . If the Company borrows under the March 2016 Revolving Loan, interest will be payable quarterly in arrears on the last day of each fiscal quarter at a variable rate equal to the 30 day LIBOR rate plus 3.5% . The Company’s obligations under the March 2016 Credit Facility are secured by a security interest in substantially all of the Company’s assets. Loans outstanding under the March 2016 Credit Facility may be prepaid in whole or in part at any time without premium or penalty. In addition, if, at any time, the aggregate principal amount outstanding under the March 2016 Revolving Loan exceeds $2.0 million , the Company must prepay an amount equal to such excess. Any principal amount of the March 2016 Term Loan which is prepaid or repaid may not be re-borrowed. The March 2016 Credit Facility contains customary covenants, including affirmative and negative covenants that, among other things, restrict the Company's ability to create certain types of liens, incur additional indebtedness, declare or pay dividends on or redeem capital stock, make other payments to holders of equity interests in the Company, make certain investments, purchase or otherwise acquire all or substantially all the assets or equity interests of other companies, sell assets or enter into consolidations, mergers or transfers of all or any substantial part of the Company's assets. The March 2016 Credit Facility also contains various financial covenants that require the Company to maintain a certain consolidated minimum tangible net worth, minimum working capital amounts, and certain debt to EBITDA and fixed charge coverage ratios. Additionally, the March 2016 Credit Facility contains cross-default provisions, whereby a default under the terms of certain indebtedness or an uncured default of a payment or other material obligation of the Company under a material contract of the Company will cause a default on the remaining indebtedness under the March 2016 Credit Facility. At June 30, 2016 , the Company was in compliance with the applicable covenants under the March 2016 Credit Facility; provided, however, that on October 24, 2016, the Company was granted a waiver and extension to the covenants requiring the Company to provide the lender with audited financial statements for the Company's 2016 fiscal year on or before October 28, 2016. Under the limited waiver and extension, the lender has agreed to waive compliance with this requirement if the Company delivers such audited financial statements prior to December 31, 2016. See Note 14 to our audited consolidated financial statements for a discussion of the limited waiver and extension. The Company incurred transaction costs associated with the October 2013 Credit Facility totaling $2.7 million . During the years ended June 30, 2016 and 2015 , the Company recorded interest expense of $0.4 million and $0.5 million , respectively, related to the normal amortization of transaction costs associated with the October 2013 Credit Facility. In connection with refinancing the outstanding debt under the October 2013 Credit Facility on March 30, 2016 , the Company charged to interest expense the remaining $1.5 million in unamortized transaction costs associated with that credit facility. At June 30, 2016 , the Company had unamortized transaction costs totaling $0.1 million included in the consolidated balance sheet related to the March 2016 Credit Facility. This balance will be amortized to interest expense using the interest method over the term of the loan. The Company’s book value for the March 2016 Credit Facility approximates the fair value. Aggregate future principal payments required in accordance with the terms of the March 2016 Credit Facility are as follows (in thousands): Year ending June 30, Amount 2017 $ 2,000 2018 2,000 2019 5,500 $ 9,500 |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the years ended June 30, 2016 , 2015 , and 2014 , the Company issued 0.1 million , 0.4 million , and 0.7 million shares, respectively, of common stock as a result of the exercise of options and warrants and during the years ended June 30, 2016 , 2015 , and 2014 , the Company issued 0.1 million , 0.2 million , and 32,000 shares, respectively, of restricted common stock. During the year ended June 30, 2016 , 0.1 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 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, as amended (the "1934 Act"). The pre-arranged stock repurchase program terminated in accordance with its terms on February 13, 2015. Pursuant to the program, the Company purchased 0.6 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 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 1934 Act. The pre-arranged stock repurchase program terminated in accordance with its terms on December 31, 2014. Pursuant to the program, the Company purchased 0.4 million shares of its common stock at an aggregate purchase price of $4 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 1934 Act. The pre-arranged stock repurchase program terminated in accordance with its terms on June 8, 2014. Pursuant to the program, the Company purchased 0.3 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 2.3 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 October 2013 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 1934 Act. The pre-arranged stock repurchase program terminated in accordance with its terms on December 1, 2013. Pursuant to the program, the Company purchased 0.3 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, 2016 , 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, 2016 | |
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 2007 Long-Term Incentive Plan (the “2007 Plan”), effective November 21, 2006, to provide incentives to certain eligible employees, directors and consultants. A maximum of 1.4 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 $1.47 and $10.50 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, 2016 there were awards outstanding, net of awards expired, for the purchase in aggregate of 0.3 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. A maximum of 1.5 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 $4.41 and $24.71 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, 2016 there were awards outstanding, net of awards expired, for an aggregate of 0.1 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 separate Performance Incentive Plans effective July 1, 2014 (the "Fiscal 2015 Performance Plan") and July 1, 2015 (the "Fiscal 2016 Performance Plan"). The Fiscal 2015 and 2016 Performance Plans are 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 awards are 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 for 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, 2016 , 2015 , and 2014 , stock-based compensation of $2.0 million , $1.7 million and $2.6 million , respectively, was reflected as an increase to additional paid in capital and $0.7 million , $0.1 million and $0.3 million was reflected as an increase to other accrued expenses for the fiscal years ended June 30, 2016 , 2015 and 2014 , respectively. For the fiscal years ended June 30, 2016 , 2015 , and 2014 , all stock-based compensation was employee related. At June 30, 2016 there was $5.6 million of unrecognized compensation cost related to nonvested share-based compensation arrangements under the 2010 Plan, based on management's estimate of the shares that will ultimately vest. The Company expects to recognize such costs over a weighted-average period of 2.3 years. Stock Options There were no stock option grants during the fiscal years ended June 30, 2016 , 2015 and 2014 . The following is a summary of stock option activity for the years ended June 30, 2016 , 2015 , and 2014 : Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2013 1,002 $ 7.56 Granted — $ — Exercised (200 ) 4.83 $ 2,282 Forfeited (67 ) 12.88 Expired or Canceled — — Outstanding at June 30, 2014 735 8.23 Granted — $ — Exercised (22 ) 5.04 $ 60 Forfeited (251 ) 9.18 Expired or Canceled — — Outstanding at June 30, 2015 462 7.87 Granted — $ — Exercised (46 ) 5.66 $ 209 Forfeited (33 ) 17.85 Expired or Canceled — — Outstanding at June 30, 2016 383 7.28 3.87 $ 2,765 Exercisable at June 30, 2016 383 $ 7.28 3.87 $ 2,765 Restricted Shares The following is a summary of restricted shares granted during the years ended June 30, 2016 , 2015 , and 2014 : Nonvested Shares Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2013 391 18.10 Granted 32 $ 12.51 Vested (109 ) 18.56 Forfeited (68 ) 17.82 Nonvested at June 30, 2014 246 17.25 Vested at June 30, 2014 — — Granted 189 $ 5.57 Vested (75 ) 16.57 Forfeited (110 ) 15.54 Nonvested at June 30, 2015 250 9.36 Vested at June 30, 2015 — — Granted 60 $ 5.94 Vested (40 ) 15.64 Forfeited (39 ) 16.21 Nonvested at June 30, 2016 231 6.24 Vested at June 30, 2016 — — The total vesting date fair value of restricted shares that vested during the years ended June 30, 2016 , 2015 and 2014 was $0.4 million , $0.6 million and $1.2 million , respectively. Performance Stock Units During the year ended June 30, 2015 , the Company awarded performance stock units (the "FY 2015 Performance Stock Units") to its executive officers and senior management (the "Recipients"). Vesting for the FY 2015 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 service 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 the relative comparison of the Company's TSR to the Vanguard Russell 2000 exchange traded fund TSR. The fair value of the Performance Stock Units will be recognized on a straight-line basis over the requisite service period of the awards, regardless of when, if ever, the market-based performance conditions are satisfied. During the year ended June 30, 2016 , the Company awarded additional Performance Stock Units (the "FY 2016 Performance Stock Units") to its executive officers and senior management. The FY 2016 Performance Stock Units are substantially similar to the FY 2015 Performance Stock Units except that the service-based vesting criteria occurs in a single installment and is achieved at the end of the three year performance period if the participant has continuously remained in service from the date of the award through the end of the performance period. There were no Performance Stock Units granted during the year ended June 30, 2014 . The fair values of Performance Stock Units granted during the years ended June 30, 2016 and 2015 were 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, 2016 June 30, 2015 Risk-free interest rate 1.31 % 1.07 % Dividend yield — % — % Expected volatility - Company 55.5 % 54.1 % Expected volatility - peer company 15.7 % 15.7 % Total measurement period (years) 3.0 3.0 The following is a summary of Performance Stock Units granted during the years ended June 30, 2016 and 2015 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2014 — — Granted 229 $ 10.76 Vested — — Forfeited (114 ) 10.76 Nonvested at June 30, 2015 115 10.76 Granted 848 $ 12.30 Vested (15 ) 10.76 Forfeited (485 ) 11.25 Nonvested at June 30, 2016 463 13.07 Vested at June 30, 2016 — — Cash-Settled Performance Units The following is a summary of cash-settled performance units granted during the years ended June 30, 2016 , 2015 , and 2014 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Outstanding at June 30, 2013, nonvested — Granted 35 $ 10.36 Vested (31 ) — Forfeited (4 ) $ 10.57 Outstanding at June 30, 2014, nonvested — Granted 69 $ 8.05 Vested (51 ) — Forfeited (18 ) $ 8.12 Outstanding at June 30, 2015, nonvested — Granted 77 $ 8.47 Vested (13 ) — Forfeited (13 ) $ 8.30 Outstanding at June 30, 2016, nonvested 51 The fair value of vested awards under the Performance Plan as of June 30, 2016 was $0.2 million . Payments of $0.1 million and $0.3 million were made to settle vested cash-settled performance units during the years ended June 30, 2016 and 2015 , respectively. No payments were made to settle vested cash-settled performance units during the year ended June 30, 2014 . Warrants As of June 30, 2016 , 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, 2016 , 2015 , and 2014 (in thousands): Common Stock Warrants Outstanding and exercisable, June 30, 2013 1,177 Issued — Canceled — Exercised (571 ) Expired — Outstanding and exercisable, June 30, 2014 606 Issued — Canceled — Exercised (519 ) Expired — Outstanding and exercisable, June 30, 2015 87 Issued — Canceled — Exercised (7 ) Expired — Outstanding and exercisable, June 30, 2016 80 As of June 30, 2016 , 2015 , and 2014 , the Company had no warrants classified as derivative liabilities. |
Other Income (Expense), net
Other Income (Expense), net | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2014 Business development incentive, net $ — $ — $ 666 Foreign currency transaction gain (loss), net (11 ) (498 ) (194 ) Gain (loss) on settlement of forward contract (212 ) 203 8 Loss on disposal of fixed assets (1,186 ) — — Other income (expense), net — 136 (96 ) Total other income (expense), net $ (1,409 ) $ (159 ) $ 384 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 for the fiscal year ended June 30, 2014 . No such incentives were realized during the fiscal years ended June 30, 2016 and 2015 . |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes As of June 30, 2016 , the Company had a U.S. Federal net operating loss (“NOL”) carry-forward of approximately $0.3 million . The net operating losses expire by June 30, 2025 and are subject to review by the Internal Revenue Service ("IRS"), and are subject to U.S. Internal Revenue Code Section 382 limitations. As of June 30, 2016 , state NOLs were $8.3 million and foreign NOLs were $0.9 million . The income tax expense for the years ended June 30, 2016 , 2015 , and 2014 consists of the following (in thousands): Year ended June 30, 2016 2015 2014 Income / (Loss) Before Income Taxes: Domestic $ 7,518 $ 8,249 $ 13,894 International 1,166 2,404 2,761 $ 8,684 $ 10,653 $ 16,655 Current Taxes: Federal $ 4,180 $ 2,600 $ 2,010 State 561 446 72 Foreign 478 856 1,018 Total Current Income Tax Provision $ 5,219 $ 3,902 $ 3,100 Deferred Taxes: Federal (2,326 ) 97 2,299 State (105 ) 4 83 Foreign (123 ) (337 ) (210 ) Total Deferred Income Tax Provision $ (2,554 ) $ (236 ) $ 2,172 Net Income Tax Provision $ 2,665 $ 3,666 $ 5,272 The effective income tax rate for the years ended June 30, 2016 , 2015 , and 2014 differs from the U.S. Federal statutory income tax rate due to the following: Year ended June 30, 2016 2015 2014 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.8 % 2.0 % 1.9 % Foreign tax rate difference (1.3 )% 0.0 % 0.0 % Tax return to provision true-up 0.7 % 1.2 % (3.0 )% Permanent differences: — stock based compensation 0.9 % 1.2 % 1.3 % — domestic production activities deduction (4.4 )% (1.6 )% (1.8 )% — credit for increasing research activities (0.7 )% (3.8 )% (1.5 )% — other (2.9 )% 0.4 % (0.5 )% Change in valuation allowance 0.6 % 0.0 % 0.1 % Net income tax provision 30.7 % 34.4 % 31.5 % The components of the deferred tax assets and liabilities as of June 30, 2016 and 2015 are as follows (in thousands): June 30, 2016 2015 Deferred tax assets: Federal, state, and foreign net operating loss carryovers $ 651 $ 656 Stock option compensation 1,696 1,353 Accrued vacation, allowance for returns, bonuses & other 2,965 1,395 Gross deferred tax asset $ 5,312 $ 3,404 Deferred tax liabilities: Patents and trademarks (417 ) (468 ) Change in tax accounting methods — (98 ) Property & equipment (722 ) (1,268 ) Gross deferred tax liabilities (1,139 ) (1,834 ) Less: valuation allowance (267 ) (218 ) Deferred tax assets, net $ 3,906 $ 1,352 During the year ended June 30, 2016 , the Company put into effect a permanent reinvestment assertion on the earnings of its foreign subsidiaries as the Company intends to reinvest all foreign earnings in its foreign operations, with the exception of certain foreign earnings that are subject to U.S. taxation. As of June 30, 2016 , the U.S. consolidated group had approximately $1.1 million of permanently reinvested unremitted earnings from the Company's subsidiaries. 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 IRS include returns for fiscal years ended June 30, 2013 through present and the open tax years by state tax authorities include returns for fiscal years ended June 30, 2011 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 ended June 30, 2011 through June 30, 2015 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 are as follows (in thousands): Year ending June 30, Amount 2017 $ 2,592 2018 1,340 2019 1,246 2020 1,290 2021 1,334 Thereafter 3,772 Total future minimum lease payments $ 11,574 Rent expense totaled $2.3 million , $2.4 million , and $1.9 million for the years ended June 30, 2016 , 2015 , and 2014 , respectively. Contingencies The Company accounts for contingent liabilities in accordance with Accounting Standards Codification ("ASC") Topic 450, Contingencies . This guidance requires management to assess potential contingent liabilities that may exist as of the date of the financial statements to determine the probability and amount of loss that may have occurred, which inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. For loss contingencies considered remote, no accrual or disclosures are generally made. Management has assessed potential contingent liabilities as of June 30, 2016 , and based on the assessment there are no probable loss contingencies requiring accrual or disclosures within its financial statements. Legal Accruals In addition to commitments and obligations in the ordinary course of business, from time to time, the Company is subject to various claims, pending and potential legal actions, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of our business. Management assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in our consolidated financial statements. An estimated loss contingency is accrued in our consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because evaluating legal claims and litigation results are inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, management may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed or asserted against the Company may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of a potential liability. Management regularly reviews contingencies to determine the adequacy of financial statement accruals and related disclosures. The amount of ultimate loss may differ from these estimates. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable resolution of one or more of these contingencies. Whether any losses finally determined in any claim, action, investigation or proceeding could reasonably have a material effect on the Company's business, financial condition, results of operations or cash flows will depend on a number of variables, including: the timing and amount of such losses; the structure and type of any remedies; the significance of the impact any such losses, damages or remedies may have on our consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. Former Distributor Lawsuit: On November 20, 2013, the Company filed a complaint in the United States District Court, District of Utah, Central Division naming Jason Domingo and Ovation Marketing Group, Inc. as defendants. Ovation Marketing Group, Inc. is a former distributor of our company. In the complaint, the Company alleges that the defendants breached a contract and misappropriated the Company's trade secrets. On January 21, 2014, the defendants filed an answer and counterclaim in response to the complaint. The defendants' answer and counterclaims allege defamation and tortious interference with economic relations, which the defendants claim resulted in damages of not less than $20 million . On December 14, 2015, the Company filed a motion for summary judgment seeking judgment in its favor on the Company's breach of contract claim and dismissal of all defendants’ counterclaims. Also on December 14, 2015, defendants filed a motion for summary judgment seeking dismissal of the Company's claim for misappropriation of trade secrets and to dismiss the Company's judicial proceedings privilege defense against the defamation claim. The Court heard oral argument on the motions for summary judgment on May 17, 2016. The court granted summary judgment in favor of the Company on all claims except the defamation claim, which remains unresolved. The Company has not established a loss contingency accrual for this remaining counterclaim as to which the Company believes liability is not probable and estimable, and the Company plans to vigorously defend against this lawsuit. Nonetheless, an unfavorable resolution of this matter could have a material adverse effect on the Company's business, results of operations or financial condition. Class Action Lawsuit: On September 15, 2016, a purported securities class action was filed in the United States District Court for the District of Utah, entitled Zhang v. LifeVantage Corp. , Case No. 2:16-cv-00965-BCW (D. Utah filed Sept. 15, 2016). In this action (now recaptioned as In re LifeVantage Corp. Securities Litigation ), plaintiff alleges that the Company, its Chief Executive Officer and Chief Financial Officer violated Sections 10(b) and/or 20(a) of the Securities Exchange Act of 1934, 15 U.S.C. §§ 78j(b), 78t(a), and Rule 10b-5, 17 C.F.R. § 240.10b-5, promulgated thereunder, by making false or misleading statements or omissions in public filings with the Securities and Exchange Commission regarding the Company's internal controls and financial results for the first, second and third quarters of fiscal year 2016. The initial complaint sought unspecified damages against the defendants on behalf of a class of purchasers of the Company’s stock between November 4, 2015 and September 13, 2016. By stipulation filed October 7, 2016, the parties agreed that defendants need not respond to the initial complaint in the action until after a lead plaintiff is appointed pursuant to the Private Securities Litigation Reform Act of 1995, at which time the parties will meet and confer regarding the timing of the filing of an amended complaint and responses thereto. On November 14, 2016, three motions for appointment as lead plaintiff were filed. A ruling on those motions is expected by mid-December 2016. The Company has not established a loss contingency accrual for this lawsuit as it believes liability is not probable or estimable, and the Company plans to vigorously defend against this lawsuit. Nonetheless, an unfavorable resolution of this matter could have a material adverse effect on the Company's business, results of operations or financial condition. Derivative Action Lawsuit: On October 11, 2016, two purported shareholder derivative actions were filed in the Third District Court of the State of Utah, Salt Lake County, entitled Johnson v. Jensen , Case No. 160906320 MI (Utah Dist. filed Oct. 11, 2016), and Rupp v. Jensen , Case No. 160906321 MI (Utah Dist. filed Oct. 11, 2016). In these actions (which are substantively identical), plaintiffs, purportedly on behalf of the Company, allege that the Company's Chief Executive Officer, Chief Financial Officer and members of the Board of Directors breached their fiduciary duties owed to the Company by, among other things, causing or permitting the Company to issue false and misleading statements or omissions in public filings with the Securities and Exchange Commission, as alleged in the class action lawsuit noted above. On October 19, 2016, the Court entered an order consolidating the two actions under the Johnson case number, with the new caption In re LifeVantage Corp. Derivative Litigation , providing that defendants and nominal defendant need not respond to the initial complaints and directing the parties to meet and confer within thirty days on a schedule for further proceedings in this action. On November 21, 2016, the Court approved a stipulation between the parties providing that (a) defendants and nominal defendant need not respond to the initial complaints and (b) within thirty days from the earlier of (i) the Company’s filing of its Form 10-K for fiscal year 2016 and (ii) plaintiffs’ filing of a consolidated amended complaint, the parties will meet and confer on a schedule regarding further proceedings in this action. The Company notes that although the plaintiffs in this action are seeking unspecified damages against the individual defendants on behalf of the Company, the Company owes certain indemnification obligations to these individual defendants under Delaware law and existing indemnification agreements. The Company has not established a loss contingency accrual for this lawsuit as it believes liability is not probable or estimable, and the Company plans to vigorously defend against this lawsuit. Nonetheless, an unfavorable resolution of this matter could have a material adverse effect on the Company's business, results of operations or financial condition. Other Matters. In addition to the matters described above, the Company also may become involved in other litigation and regulatory matters incidental to its business and the matters disclosed in this Annual Report on Form 10-K, including, but not limited to, product liability claims, regulatory actions, employment matters and commercial disputes. The Company intends to defend itself in any such matters and does not currently believe that the outcome of any such matters will have a material adverse effect on the Company's business, financial condition, results of operations and cash flows. |
Related Party Transactions (Not
Related Party Transactions (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions During fiscal year 2016 , there have been two transactions or series of similar transactions to which the Company was or is to be a party in which the amount involved exceeds $120,000 and in which any director, executive officer, holder of more than 5% of our common stock or any member of the immediate family of any of the foregoing persons had or will have a direct or indirect material interest. During fiscal year 2016 , Dinng, a brand and digital brand studio, provided branding and marketing services to the Company pursuant to an Agreement for Services dated August 18, 2015 between the Company and Dinng, in the amount of $0.5 million . Our Chief Marketing Officer, Ryan Goodwin, is the founder of Dinng and currently serves as Dinng’s President and Creative Director. Mr. Goodwin and his wife are both salaried employees at Dinng. Effective January 2014, the Company commenced a partnership with Real Salt Lake of Major League Soccer, which includes the placement of the Company's logo on the front of the team’s jersey as well as strategic placement of the Company's logo around the stadium and on televised broadcasts of the games. In July 2015, Dell Loy Hansen, the sole owner of Real Salt Lake and Real Monarchs SLC, became a 5% stockholder of the Company. During fiscal year 2016 , the Company paid $2.6 million to Real Salt Lake, pursuant to the terms of this partnership, an additional $0.1 million for an endorsement of Real Monarchs SLC and $0.1 million for product marketing. |
Interim Financial Results (Unau
Interim Financial Results (Unaudited) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 : LIFEVANTAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED QUARTERLY RESULTS (in thousands except per share data) Fiscal Quarter Year ended June 30, 2016 First Second Third Fourth Revenue, net $ 45,352 $ 51,995 $ 56,160 $ 53,033 $ 206,540 Gross profit 38,377 44,153 46,446 43,632 172,608 Net income $ 1,066 $ 1,600 $ 1,003 $ 2,350 $ 6,019 Per common share: Income per share, basic $ 0.08 $ 0.12 $ 0.07 $ 0.17 $ 0.44 Income per share, diluted $ 0.08 $ 0.11 $ 0.07 $ 0.16 $ 0.41 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 $ 0.33 $ 0.11 $ 0.04 $ 0.02 $ 0.50 Income per share, diluted $ 0.32 $ 0.10 $ 0.04 $ 0.02 $ 0.49 |
Subsequent Events (Notes)
Subsequent Events (Notes) | 12 Months Ended |
Jun. 30, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events On October 24, 2016, the Company received a limited waiver and extension letter from Z.B., N.A., doing business as Zions First National Bank (“Zions”), the lender under the March 2016 Credit Facility. The letter states that the Company would violate the covenants set forth in the March 2016 Credit Facility if the Company does not provide Zions with audited financial statements for the Company’s 2016 fiscal year on or before October 28, 2016. Under the limited waiver and extension, Zions has agreed to waive compliance with this requirement if the Company delivers such audited financial statements prior to December 31, 2016. If the Company does not deliver such audited financial statements prior to December 31, 2016, it will be in default under the March 2016 Credit Facility and Zions may proceed to exercise its default rights and remedies thereunder. |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2016 | |
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 valuation and 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 and as a component of comprehensive income. 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, 2016 and 2015 . 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, 2016 and 2015 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, 2016 or 2015 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 in other income (expense), net. 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. During the year ended June 30, 2016 , the Company recognized a loss on disposal of $1.2 million related to the write-off of previously capitalized software development costs incurred. |
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 shipment, which is when passage of title and risk of loss occurs. 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. Commissions and incentives 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 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 liabilities or 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 would be the largest liability or 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 common 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 independent distributors. The Company manages its business primarily by managing its international network of independent distributors. |
New Accounting Pronouncements | New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Codification (ASC) 606, Revenue from Contracts with Customers , which supersedes the revenue recognition requirements in ASC 605, Revenue Recognition . The core principle of the new standard is for companies to recognize revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration it expects to receive in exchange for those goods or services. ASC 606 will be effective for the Company in the first quarter of fiscal 2019. The Company has performed a detailed analysis and does not anticipate that ASC 606 will have a significant impact on revenue recognition or its consolidated financial statements due to the types of revenue transactions that the Company enters into. Subsequent to the release of the updated revenue recognition standard discussed above, FASB issued Accounting Standards Update (ASU) 2016-08, Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net) , ASU 2016-10, Revenue from Contracts with Customers (Topic 606): Identifying Performance Obligations and Licensing , ASU 2016-11, Revenue Recognition (Topic 605) and Derivatives and Hedging (Topic 815) and ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients. These updates are intended to improve the operability and understandability of the implementation guidance for the updated revenue standard as it relates to the subjects noted. The amendments in these updates have the same effective date as ASC 606 as noted above, and the Company does not anticipate that these updates will have a significant impact on its revenue recognition policy or its consolidated financial statements. In April 2015, FASB issued ASU 2015-03 , Interest - Imputation of Interest (Subtopic 835-30): 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. The Company adopted this updated standard in the current year during the interim period ended September 30, 2015 by reclassifying the debt issuance costs from long-term assets to a direct deduction from the related debt, consistent with the debt discount. All prior period balances have been retrospectively adjusted. In November 2015, FASB issued ASU No. 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes. Current GAAP requires an entity to separate deferred income tax liabilities and assets into current and noncurrent amounts in a classified statement of financial position. To simplify the presentation of deferred income taxes, the amendments in this update require that all deferred tax assets or liabilities be classified as noncurrent in the classified statement of financial position. The amendments in this update are effective for the annual periods beginning after December 15, 2016 and interim periods within those annual periods. The Company does not anticipate that the adoption of this guidance will have a material impact on its consolidated financial statements. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 841) . For lessees, the amendments in this update require that for all leases not considered to be short term, a company recognize both a lease liability and right-of-use asset on its balance sheet, representing the obligation to make payments and the right to use or control the use of a specified asset for the lease term. The amendments in this update are effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. The Company is currently evaluating the impact that this amendment will have on its consolidated financial statements. In March 2016, FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The amendments in this update change the accounting for certain stock-based compensation transactions, including the income tax consequences and cash flow classification for applicable transactions. The amendments in this update are effective for annual periods beginning after December 31, 2016 and interim periods within those annual periods. The Company is currently evaluating the impact that this amendment will have on its consolidated financial statements. |
Summary of Significant Accoun22
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Accounting Policies [Abstract] | |
Components of inventory | As of June 30, 2016 and 2015 , inventory consisted of (in thousands): June 30, 2016 2015 Finished goods $ 14,852 $ 5,783 Raw materials 10,264 3,465 Total inventory $ 25,116 $ 9,248 |
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, 2016 2015 Equipment (includes computer hardware and software) $ 6,402 $ 6,895 Furniture and fixtures 1,485 1,481 Leasehold improvements 3,497 3,324 Vehicles 51 51 Accumulated depreciation (7,979 ) (5,992 ) Total property and equipment, net $ 3,456 $ 5,759 |
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 net income 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, 2016 2015 2014 Numerator: Net income $ 6,019 $ 6,987 $ 11,383 Denominator: Basic weighted-average common shares outstanding 13,730 13,899 15,113 Effect of dilutive securities: Stock awards and options 735 180 379 Warrants 66 71 451 Diluted weighted-average common shares outstanding 14,531 14,150 15,943 Net income per share, basic $ 0.44 $ 0.50 $ 0.75 Net income per share, diluted $ 0.41 $ 0.49 $ 0.71 |
Revenues from unaffiliated customers by geographic regions and significant geographic area | Revenues by geographic area are as follows (in thousands): Years ended June 30, 2016 2015 2014 Americas $ 158,291 $ 138,118 $ 141,227 Asia/Pacific & Europe 48,249 52,218 72,741 Total revenues $ 206,540 $ 190,336 $ 213,968 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, 2016 2015 2014 United States $ 152,830 $ 132,831 $ 136,758 Japan $ 36,343 $ 41,428 $ 61,872 |
Revenues by major product line | The following table shows revenues by major product line for the years ended June 30, 2016 , 2015 and 2014 . For the years ended June 30, 2016 2015 2014 Protandim ® product line $ 128,019 62.0 % $ 120,967 63.6 % $ 142,935 66.8 % LifeVantage TrueScience® skin care regimen 32,914 15.9 % 38,287 20.1 % 46,474 21.7 % Other 45,607 22.1 % 31,082 16.3 % 24,559 11.5 % Total $ 206,540 100.0 % $ 190,336 100.0 % $ 213,968 100.0 % |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 Equipment (includes computer hardware and software) $ 6,402 $ 6,895 Furniture and fixtures 1,485 1,481 Leasehold improvements 3,497 3,324 Vehicles 51 51 Accumulated depreciation (7,979 ) (5,992 ) Total property and equipment, net $ 3,456 $ 5,759 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consist of (in thousands): June 30, 2016 2015 Patent costs $ 2,330 $ 2,330 Accumulated amortization (1,181 ) (1,046 ) Total definite-lived intangible assets, net 1,149 1,284 Trademarks and other indefinite-lived intangible assets 595 595 Total intangible assets, net $ 1,744 $ 1,879 |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Expenses | Other accrued expenses consist of (in thousands): June 30, 2016 2015 Accrued severance $ 100 $ 638 Accrued incentives and promotions to distributors 408 380 Accrued payroll and other employee expenses 774 578 Deferred revenue 2,406 990 Accrued payable to vendors 838 1,019 Other taxes payable 1,410 809 Accrued incentive compensation 1,320 55 Accrued other expenses 1,478 1,131 Total other accrued expenses $ 8,734 $ 5,600 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Debt Disclosure [Abstract] | |
Future Principal Payments of the Credit Facility | Aggregate future principal payments required in accordance with the terms of the March 2016 Credit Facility are as follows (in thousands): Year ending June 30, Amount 2017 $ 2,000 2018 2,000 2019 5,500 $ 9,500 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity for the years ended June 30, 2016 , 2015 , and 2014 : Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2013 1,002 $ 7.56 Granted — $ — Exercised (200 ) 4.83 $ 2,282 Forfeited (67 ) 12.88 Expired or Canceled — — Outstanding at June 30, 2014 735 8.23 Granted — $ — Exercised (22 ) 5.04 $ 60 Forfeited (251 ) 9.18 Expired or Canceled — — Outstanding at June 30, 2015 462 7.87 Granted — $ — Exercised (46 ) 5.66 $ 209 Forfeited (33 ) 17.85 Expired or Canceled — — Outstanding at June 30, 2016 383 7.28 3.87 $ 2,765 Exercisable at June 30, 2016 383 $ 7.28 3.87 $ 2,765 |
Schedule of Nonvested Restricted Shares | The following is a summary of restricted shares granted during the years ended June 30, 2016 , 2015 , and 2014 : Nonvested Shares Shares (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2013 391 18.10 Granted 32 $ 12.51 Vested (109 ) 18.56 Forfeited (68 ) 17.82 Nonvested at June 30, 2014 246 17.25 Vested at June 30, 2014 — — Granted 189 $ 5.57 Vested (75 ) 16.57 Forfeited (110 ) 15.54 Nonvested at June 30, 2015 250 9.36 Vested at June 30, 2015 — — Granted 60 $ 5.94 Vested (40 ) 15.64 Forfeited (39 ) 16.21 Nonvested at June 30, 2016 231 6.24 Vested at June 30, 2016 — — |
Share-based Awards other Than Option Fair Value Valuation Assumptions | The fair values of Performance Stock Units granted during the years ended June 30, 2016 and 2015 were 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, 2016 June 30, 2015 Risk-free interest rate 1.31 % 1.07 % Dividend yield — % — % Expected volatility - Company 55.5 % 54.1 % Expected volatility - peer company 15.7 % 15.7 % Total measurement period (years) 3.0 3.0 |
Summary of Nonvested Restricted Stock Units | The following is a summary of Performance Stock Units granted during the years ended June 30, 2016 and 2015 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2014 — — Granted 229 $ 10.76 Vested — — Forfeited (114 ) 10.76 Nonvested at June 30, 2015 115 10.76 Granted 848 $ 12.30 Vested (15 ) 10.76 Forfeited (485 ) 11.25 Nonvested at June 30, 2016 463 13.07 Vested at June 30, 2016 — — |
Schedule of Performance Share Units Activity | The following is a summary of cash-settled performance units granted during the years ended June 30, 2016 , 2015 , and 2014 : Number of Units (in thousands) Weighted Average Grant Date Fair Value Outstanding at June 30, 2013, nonvested — Granted 35 $ 10.36 Vested (31 ) — Forfeited (4 ) $ 10.57 Outstanding at June 30, 2014, nonvested — Granted 69 $ 8.05 Vested (51 ) — Forfeited (18 ) $ 8.12 Outstanding at June 30, 2015, nonvested — Granted 77 $ 8.47 Vested (13 ) — Forfeited (13 ) $ 8.30 Outstanding at June 30, 2016, nonvested 51 |
Summary of the Warrants Granted | The following is a summary of the warrant activity for the years ended June 30, 2016 , 2015 , and 2014 (in thousands): Common Stock Warrants Outstanding and exercisable, June 30, 2013 1,177 Issued — Canceled — Exercised (571 ) Expired — Outstanding and exercisable, June 30, 2014 606 Issued — Canceled — Exercised (519 ) Expired — Outstanding and exercisable, June 30, 2015 87 Issued — Canceled — Exercised (7 ) Expired — Outstanding and exercisable, June 30, 2016 80 |
Other Income (Expense), net (Ta
Other Income (Expense), net (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 2015 2014 Business development incentive, net $ — $ — $ 666 Foreign currency transaction gain (loss), net (11 ) (498 ) (194 ) Gain (loss) on settlement of forward contract (212 ) 203 8 Loss on disposal of fixed assets (1,186 ) — — Other income (expense), net — 136 (96 ) Total other income (expense), net $ (1,409 ) $ (159 ) $ 384 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of income tax expense (benefit) | The income tax expense for the years ended June 30, 2016 , 2015 , and 2014 consists of the following (in thousands): Year ended June 30, 2016 2015 2014 Income / (Loss) Before Income Taxes: Domestic $ 7,518 $ 8,249 $ 13,894 International 1,166 2,404 2,761 $ 8,684 $ 10,653 $ 16,655 Current Taxes: Federal $ 4,180 $ 2,600 $ 2,010 State 561 446 72 Foreign 478 856 1,018 Total Current Income Tax Provision $ 5,219 $ 3,902 $ 3,100 Deferred Taxes: Federal (2,326 ) 97 2,299 State (105 ) 4 83 Foreign (123 ) (337 ) (210 ) Total Deferred Income Tax Provision $ (2,554 ) $ (236 ) $ 2,172 Net Income Tax Provision $ 2,665 $ 3,666 $ 5,272 |
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, 2016 , 2015 , and 2014 differs from the U.S. Federal statutory income tax rate due to the following: Year ended June 30, 2016 2015 2014 Federal statutory income tax rate 35.0 % 35.0 % 35.0 % State income taxes, net of federal benefit 2.8 % 2.0 % 1.9 % Foreign tax rate difference (1.3 )% 0.0 % 0.0 % Tax return to provision true-up 0.7 % 1.2 % (3.0 )% Permanent differences: — stock based compensation 0.9 % 1.2 % 1.3 % — domestic production activities deduction (4.4 )% (1.6 )% (1.8 )% — credit for increasing research activities (0.7 )% (3.8 )% (1.5 )% — other (2.9 )% 0.4 % (0.5 )% Change in valuation allowance 0.6 % 0.0 % 0.1 % Net income tax provision 30.7 % 34.4 % 31.5 % |
The components of the deferred tax assets and liabilities | The components of the deferred tax assets and liabilities as of June 30, 2016 and 2015 are as follows (in thousands): June 30, 2016 2015 Deferred tax assets: Federal, state, and foreign net operating loss carryovers $ 651 $ 656 Stock option compensation 1,696 1,353 Accrued vacation, allowance for returns, bonuses & other 2,965 1,395 Gross deferred tax asset $ 5,312 $ 3,404 Deferred tax liabilities: Patents and trademarks (417 ) (468 ) Change in tax accounting methods — (98 ) Property & equipment (722 ) (1,268 ) Gross deferred tax liabilities (1,139 ) (1,834 ) Less: valuation allowance (267 ) (218 ) Deferred tax assets, net $ 3,906 $ 1,352 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 are as follows (in thousands): Year ending June 30, Amount 2017 $ 2,592 2018 1,340 2019 1,246 2020 1,290 2021 1,334 Thereafter 3,772 Total future minimum lease payments $ 11,574 |
Interim Financial Results (Un31
Interim Financial Results (Unaudited) (Tables) | 12 Months Ended |
Jun. 30, 2016 | |
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, 2016 and 2015 : LIFEVANTAGE CORPORATION AND SUBSIDIARIES CONDENSED CONSOLIDATED QUARTERLY RESULTS (in thousands except per share data) Fiscal Quarter Year ended June 30, 2016 First Second Third Fourth Revenue, net $ 45,352 $ 51,995 $ 56,160 $ 53,033 $ 206,540 Gross profit 38,377 44,153 46,446 43,632 172,608 Net income $ 1,066 $ 1,600 $ 1,003 $ 2,350 $ 6,019 Per common share: Income per share, basic $ 0.08 $ 0.12 $ 0.07 $ 0.17 $ 0.44 Income per share, diluted $ 0.08 $ 0.11 $ 0.07 $ 0.16 $ 0.41 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 $ 0.33 $ 0.11 $ 0.04 $ 0.02 $ 0.50 Income per share, diluted $ 0.32 $ 0.10 $ 0.04 $ 0.02 $ 0.49 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies - Narrative (Details) | Oct. 19, 2015 | Jun. 30, 2016USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
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 | $ 300,000 | 100,000 | ||
Research and development | $ 1,000,000 | $ 2,400,000 | $ 2,000,000 | |
Stock split ratio | 7 | |||
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 | $ 4,600,000 | |||
Cash Accounts Held at Other Financial Institutions | ||||
Concentration Risk [Line Items] | ||||
Concentration of credit risk | $ 3,300,000 |
Summary of Significant Accoun33
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Components of Inventory | ||
Finished goods | $ 14,852 | $ 5,783 |
Raw materials | 10,264 | 3,465 |
Total inventory | 25,116 | 9,248 |
Inventory valuation reserves | $ 400 | $ 300 |
Summary of Significant Accoun34
Summary of Significant Accounting Policies - Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ (1,186) | $ 0 | $ 0 |
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 Accoun35
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, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Accounting Policies [Abstract] | |||||||||||
Number of antidilutive securities (in shares) | 200 | 400 | |||||||||
Numerator: | |||||||||||
Net income | $ 2,350 | $ 1,003 | $ 1,600 | $ 1,066 | $ 226 | $ 573 | $ 1,472 | $ 4,716 | $ 6,019 | $ 6,987 | $ 11,383 |
Denominator: | |||||||||||
Basic weighted-average common shares outstanding (in shares) | 13,730 | 13,899 | 15,113 | ||||||||
Effect of dilutive securities: | |||||||||||
Stock awards and options (in shares) | 735 | 180 | 379 | ||||||||
Warrants (in shares) | 66 | 71 | 451 | ||||||||
Diluted weighted-average common shares outstanding (in shares) | 14,531 | 14,150 | 15,943 | ||||||||
Income per share, basic (dollars per share) | $ 0.17 | $ 0.07 | $ 0.12 | $ 0.08 | $ 0.02 | $ 0.04 | $ 0.11 | $ 0.33 | $ 0.44 | $ 0.50 | $ 0.75 |
Income per share, diluted (dollars per share) | $ 0.16 | $ 0.07 | $ 0.11 | $ 0.08 | $ 0.02 | $ 0.04 | $ 0.10 | $ 0.32 | $ 0.41 | $ 0.49 | $ 0.71 |
Summary of Significant Accoun36
Summary of Significant Accounting Policies - Revenues by Geographic Area (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2016USD ($)Segment | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||
Number of geographic segments | Segment | 2 | ||||||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | $ 53,033 | $ 56,160 | $ 51,995 | $ 45,352 | $ 45,301 | $ 45,155 | $ 48,247 | $ 51,633 | $ 206,540 | $ 190,336 | $ 213,968 |
Americas | |||||||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | 158,291 | 138,118 | 141,227 | ||||||||
Asia / Pacific | |||||||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | 48,249 | 52,218 | 72,741 | ||||||||
United States | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | 4,200 | 6,500 | 4,200 | 6,500 | |||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | 152,830 | 132,831 | 136,758 | ||||||||
Japan | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Long-lived assets | $ 1,300 | $ 1,500 | 1,300 | 1,500 | |||||||
Revenues from unaffiliated customers | |||||||||||
Total revenues | $ 36,343 | $ 41,428 | $ 61,872 |
Summary of Significant Accoun37
Summary of Significant Accounting Policies - Revenues by Major Products (Details) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016USD ($)product_line | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Revenue from External Customer [Line Items] | |||
Number of product lines | product_line | 2 | ||
Revenues | $ 206,540 | $ 190,336 | $ 213,968 |
Revenue, Percentage | 100.00% | 100.00% | 100.00% |
Product Concentration Risk | Sale Revenues, Gross | |||
Revenue from External Customer [Line Items] | |||
Concentration risk, percentage | 77.90% | 83.70% | 88.50% |
Protandim®product line | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 128,019 | $ 120,967 | $ 142,935 |
Revenue, Percentage | 62.00% | 63.60% | 66.80% |
LifeVantage TrueScience® skin care regimen | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 32,914 | $ 38,287 | $ 46,474 |
Revenue, Percentage | 15.90% | 20.10% | 21.70% |
Other | |||
Revenue from External Customer [Line Items] | |||
Revenues | $ 45,607 | $ 31,082 | $ 24,559 |
Revenue, Percentage | 22.10% | 16.30% | 11.50% |
Property and Equipment (Details
Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Accumulated depreciation | $ (7,979) | $ (5,992) | |
Total property and equipment, net | 3,456 | 5,759 | |
Depreciation expense | 1,800 | 2,300 | $ 2,000 |
Equipment (includes computer hardware and software) | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 6,402 | 6,895 | |
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,485 | 1,481 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 3,497 | 3,324 | |
Vehicles | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 51 | $ 51 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total intangible assets, net | $ 1,744 | $ 1,879 | |
Amortization of intangible assets | 100 | 100 | $ 100 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |||
2,017 | 100 | ||
2,018 | 100 | ||
2,019 | 100 | ||
2,020 | 100 | ||
2,021 | 100 | ||
Patent costs | |||
Finite-Lived Intangible Assets [Line Items] | |||
Patent costs | 2,330 | 2,330 | |
Accumulated amortization | (1,181) | (1,046) | |
Total definite-lived intangible assets, net | 1,149 | 1,284 | |
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, 2016 | Jun. 30, 2015 |
Payables and Accruals [Abstract] | ||
Accrued severance | $ 100 | $ 638 |
Accrued incentives and promotions to distributors | 408 | 380 |
Accrued payroll and other employee expenses | 774 | 578 |
Deferred revenue | 2,406 | 990 |
Accrued payable to vendors | 838 | 1,019 |
Other taxes payable | 1,410 | 809 |
Accrued incentive compensation | 1,320 | 55 |
Accrued other expenses | 1,478 | 1,131 |
Total other accrued expenses | $ 8,734 | $ 5,600 |
Long-Term Debt - Narrative (De
Long-Term Debt - Narrative (Details) - USD ($) | Mar. 30, 2016 | Oct. 15, 2015 | Jun. 30, 2016 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Mar. 31, 2015 | Oct. 18, 2013 |
Line of Credit Facility [Line Items] | |||||||||||
Debt issuance cost | $ 2,700,000 | ||||||||||
Interest expense during period | 400,000 | $ 500,000 | |||||||||
Write-off of capitalized debt transaction costs pursuant to debt refinance | $ 1,500,000 | 1,544,000 | 0 | $ 0 | |||||||
Unamortized Debt Issuance Expense | $ 100,000 | $ 100,000 | |||||||||
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 | ||||||||||
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 | $ 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 | 25,600,000 | 25,600,000 | $ 17,000,000 | $ 24,400,000 | $ 23,100,000 | $ 22,200,000 | 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 | ||||||||||
Financing Agreement Amendment, August 2015 | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Consolidated EBITDA covenants | $ 17,500,000 | $ 17,500,000 | 17,000,000 | $ 15,000,000 | 14,500,000 | ||||||
Minimum unrestricted cash and cash equivalents covenants | $ 12,500,000 | ||||||||||
Financing Agreement Amendment, August 2015 | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Accelerated principal payments on Term Loan covenants | $ 500,000 | ||||||||||
March 2016 Term Loan | Secured Debt | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | 10,000,000 | ||||||||||
Frequency of periodic payment | quarterly | ||||||||||
Periodic principal payment | $ 500,000 | ||||||||||
Stated interest amount on debt | 4.93% | 4.93% | |||||||||
March 2016 Revolving Loan | Revolving Credit Facility | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum borrowing capacity | $ 2,000,000 | ||||||||||
March 2016 Revolving Loan | Revolving Credit Facility | 30 Day LIBOR | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Basis spread on variable rate | 3.50% |
Long-Term Debt - Future Princi
Long-Term Debt - Future Principal Payments (Details) $ in Thousands | Jun. 30, 2016USD ($) |
Debt Disclosure [Abstract] | |
2,017 | $ 2,000 |
2,018 | 2,000 |
2,019 | 5,500 |
Total debt | $ 9,500 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) shares in Thousands | Nov. 01, 2013 | Feb. 13, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 01, 2013 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | Nov. 06, 2014 | Jun. 03, 2014 | Mar. 11, 2014 | Mar. 22, 2013 |
Class of Stock [Line Items] | ||||||||||||
Payments for repurchase of common stock | $ 0 | $ 9,850,000 | $ 46,171,000 | |||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock issued (in shares) | 100 | 400 | 700 | |||||||||
Restricted common stock to employees (in shares) | 100 | 200 | 32 | |||||||||
Restricted Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Shares canceled or surrendered as payment of tax withholding (shares) | 100 | |||||||||||
Common Stock | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Common stock issued (in shares) | 52 | 376 | 741 | |||||||||
Restricted common stock to employees (in shares) | 76 | 189 | 32 | |||||||||
Shares canceled or surrendered as payment of tax withholding (shares) | 58 | 129 | 98 | |||||||||
Stock repurchased during period (in shares) | 1,079 | 2,806 | ||||||||||
Common Stock | Tender Offer | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Stock repurchased during period (in shares) | 2,300 | |||||||||||
Payments for repurchase of common stock | $ 40,000,000 | |||||||||||
Transaction costs associated with repurchase of common stock | $ 300,000 | |||||||||||
Common Stock | Pre-Arranged Stock Repurchase Plan | ||||||||||||
Class of Stock [Line Items] | ||||||||||||
Repurchase common stock amount authorized | $ 7,000,000 | $ 4,000,000 | $ 3,000,000 | $ 5,000,000 | ||||||||
Stock repurchased during period (in shares) | 600 | 300 | 400 | 300 | ||||||||
Payments for repurchase of common stock | $ 5,900,000 | $ 3,000,000 | $ 4,000,000 | $ 5,000,000 | ||||||||
Remaining authorized amount of common stock repurchase program | $ 1,100,000 |
Share-Based Compensation - Nar
Share-Based Compensation - Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | |||||
Jun. 30, 2016USD ($)Vesting_Installlment$ / sharesshares | Jun. 30, 2015USD ($)shares | Jun. 30, 2014USD ($)shares | Jun. 30, 2013shares | Nov. 19, 2010shares | Nov. 21, 2006shares | |
Stock-Based Compensation | ||||||
Stock based compensation | $ | $ 1,966 | $ 1,737 | $ 2,606 | |||
Stock-based compensation awards classified as a liability settled in cash | $ | 700 | 100 | 300 | |||
Employee related stock-based compensation expense | $ | $ 1,700 | $ 2,600 | $ 2,200 | |||
Options, Granted (shares) | 0 | 0 | 0 | |||
Restricted Stock | ||||||
Stock-Based Compensation | ||||||
Number of shares granted | 60,000 | 189,000 | 32,000 | |||
Number of shares outstanding | 231,000 | 250,000 | 246,000 | 391,000 | ||
Performance Stock Units | ||||||
Stock-Based Compensation | ||||||
Distribution period following performance period | 30 days | |||||
Number of shares granted | 848,000 | 229,000 | 0 | |||
Number of shares outstanding | 463,000 | 115,000 | 0 | |||
2007 Long-Term Incentive Plan | ||||||
Equity Incentive Plans | ||||||
Maximum common stock issued under Long-Term Incentive Plan | 1,428,571 | |||||
Contractual term of stock options granted | 10 years | |||||
2010 Long-Term Incentive Plan | ||||||
Equity Incentive Plans | ||||||
Maximum common stock issued under Long-Term Incentive Plan | 1,500,000 | |||||
Contractual term of stock options granted | 10 years | |||||
Company's common stock purchased in aggregate (shares) | 100,000 | |||||
2010 Long-Term Incentive Plan | Restricted Stock | ||||||
Stock-Based Compensation | ||||||
Unrecognized compensation cost | $ | $ 5,600 | |||||
Period for recognition of unrecognized compensation cost | 2 years 4 months 2 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 | ||||||
Right to purchase common stock, minimum price | $ / shares | $ 1.47 | |||||
Vesting period of Long-Term Incentive Plan | 1 year | |||||
Minimum | 2010 Long-Term Incentive Plan | ||||||
Equity Incentive Plans | ||||||
Right to purchase common stock, minimum price | $ / shares | $ 4.41 | |||||
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 | ||||||
Right to purchase common stock, minimum price | $ / shares | $ 10.50 | |||||
Vesting period of Long-Term Incentive Plan | 3 years | |||||
Company's common stock purchased in aggregate (shares) | 300,000 | |||||
Maximum | 2010 Long-Term Incentive Plan | ||||||
Equity Incentive Plans | ||||||
Right to purchase common stock, minimum price | $ / shares | $ 24.71 | |||||
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 - Sto
Share-Based Compensation - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of Stock Option Activity (shares) | |||
Options, Granted (shares) | 0 | 0 | 0 |
Employee Stock Option | |||
Summary of Stock Option Activity (shares) | |||
Options, Outstanding Beginning Balance | 462,000 | 735,000 | 1,002,000 |
Options, Granted (shares) | 0 | 0 | 0 |
Options, Exercised | (46,000) | (22,000) | (200,000) |
Options, Forfeited | (33,000) | (251,000) | (67,000) |
Options, Expired or Cancelled | 0 | 0 | 0 |
Options, Outstanding Ending Balance | 383,000 | 462,000 | 735,000 |
Weighted Average Exercise Price (dollars per share) | |||
Outstanding, Weighted Average Exercise Price, Beginning Balance | $ 7.87 | $ 8.23 | $ 7.56 |
Weighted Average Exercise Price, Granted | 0 | 0 | 0 |
Weighted Average Exercise Price, Exercised | 5.66 | 5.04 | 4.83 |
Weighted Average Exercise Price, Forfeited | 17.85 | 9.18 | 12.88 |
Weighted Average Exercise Price, Expired or Cancelled | 0 | 0 | |
Outstanding, Weighted Average Exercise Price, Ending Balance | $ 7.28 | $ 7.87 | $ 8.23 |
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term, Granted | |||
Weighted Average Remaining Contractual Term, Exercised | |||
Outstanding, Weighted Average Remaining Contractual Term | 3 years 10 months 12 days | ||
Additional Disclosures | |||
Options, Exercisable (shares) | 383,000 | ||
Weighted Average Exercise Price, Exercisable (dollars per share) | $ 7.28 | ||
Exercisable, Weighted Average Remaining Contractual Term | 3 years 10 months 12 days | ||
Aggregate Intrinsic Value, Granted | |||
Aggregate Intrinsic Value, Exercised | 209 | $ 60 | $ 2,282 |
Outstanding, Aggregate Intrinsic Value, Ending Balance | 2,765 | ||
Exercisable, Aggregate Intrinsic Value | $ 2,765 |
Share-Based Compensation - Non
Share-Based Compensation - Nonvested Restricted Shares (Details) - Restricted Stock - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares outstanding beginning period | 250 | 246 | 391 |
Shares granted | 60 | 189 | 32 |
Shares vested | (40) | (75) | (109) |
Shares forfeited | (39) | (110) | (68) |
Shares outstanding ending period | 231 | 250 | 246 |
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 | $ 9.36 | $ 17.25 | $ 18.10 |
Weighted average grant date fair value, granted | 5.94 | 5.57 | 12.51 |
Weighted average grant date fair value, vested and issued | 15.64 | 16.57 | 18.56 |
Weighted average grant date fair value, forfeited | 16.21 | 15.54 | 17.82 |
Weighted average grant date fair value, ending period | 6.24 | 9.36 | 17.25 |
Weighted average granted date fair value, vested shares | $ 0 | $ 0 | $ 0 |
Fair value of vested awards | $ 0.4 | $ 0.6 | $ 1.2 |
Share-Based Compensation - Oth
Share-Based Compensation - Other Than Options Valuation Assumptions (Details) - Performance Stock Units | 12 Months Ended | |
Jun. 30, 2016 | Jun. 30, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 1.31% | 1.07% |
Dividend yield | 0.00% | 0.00% |
Expected volatility - Company | 55.50% | 54.10% |
Expected volatility - peer company | 15.70% | 15.70% |
Total measurement period | 3 years | 3 years |
Share-Based Compensation - N48
Share-Based Compensation - Nonvested Restricted Share Units (Details) - Performance Stock Units - $ / shares | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Shares outstanding beginning period | 115,000 | 0 | |
Shares granted | 848,000 | 229,000 | 0 |
Shares vested | (15,000) | 0 | |
Shares forfeited | (485,000) | (114,000) | |
Shares outstanding ending period | 463,000 | 115,000 | 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 | $ 10.76 | $ 0 | |
Weighted average grant date fair value, granted | 12.30 | 10.76 | |
Weighted average grant date fair value, vested and issued | 10.76 | 0 | |
Weighted average grant date fair value, forfeited | 11.25 | 10.76 | |
Weighted average grant date fair value, ending period | 13.07 | $ 10.76 | $ 0 |
Weighted average granted date fair value, vested shares | $ 0 |
Share-Based Compensation - N49
Share-Based Compensation - Nonvested Performance Shares (Details) - Cash-Settled Performance Units - USD ($) $ / shares in Units, shares in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
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 | 0 |
Shares granted | 77 | 69 | 35 |
Shares vested | (13) | (51) | (31) |
Shares forfeited | (13) | (18) | (4) |
Shares outstanding ending period | 51 | 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 | |||
Weighted average grant date fair value, granted | 8.47 | 8.05 | 10.36 |
Weighted average grant date fair value, vested and issued | 0 | 0 | 0 |
Weighted average grant date fair value, forfeited | 8.30 | 8.12 | 10.57 |
Weighted average grant date fair value, ending period | |||
Fair value of vested awards | $ 200,000 | ||
Payments made to settle vested performance share units | $ 100,000 | $ 300,000 | $ 0 |
Share-Based Compensation - Sum
Share-Based Compensation - Summary of Warrants (Details) - Warrants - shares shares in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of the warrants issued | |||
Outstanding and exercisable, Beginning balance | 87 | 606 | 1,177 |
Issued | 0 | 0 | 0 |
Cancelled | 0 | 0 | 0 |
Exercised | (7) | (519) | (571) |
Expired | 0 | 0 | 0 |
Outstanding and exercisable, Ending balance | 80 | 87 | 606 |
Other Income (Expense), net (De
Other Income (Expense), net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Other Income and Expenses [Abstract] | |||
Business development incentive, net | $ 0 | $ 0 | $ 666 |
Foreign currency transaction gain (loss), net | (11) | (498) | (194) |
Gain (loss) on settlement of forward contract | (212) | 203 | 8 |
Loss on disposal of fixed assets | (1,186) | 0 | 0 |
Other income (expense), net | 0 | 136 | (96) |
Total other income (expense), net | $ (1,409) | $ (159) | $ 384 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) $ in Millions | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Operating Loss Carryforwards [Line Items] | |
Permanently reinvested unremitted earnings | $ 1.1 |
Percentage of likelihood for recognition of uncertain tax positions | 50.00% |
Internal Revenue Service (IRS) | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 0.3 |
State and Local Jurisdiction | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | 8.3 |
Foreign Tax Authority | |
Operating Loss Carryforwards [Line Items] | |
Net operating loss carryforwards | $ 0.9 |
Income Taxes - Income Tax Expe
Income Taxes - Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Income / (Loss) Before Income Taxes: | |||
Domestic | $ 7,518 | $ 8,249 | $ 13,894 |
International | 1,166 | 2,404 | 2,761 |
Income / (Loss) Before Income Taxes | 8,684 | 10,653 | 16,655 |
Current Taxes | |||
Federal | 4,180 | 2,600 | 2,010 |
State | 561 | 446 | 72 |
Foreign | 478 | 856 | 1,018 |
Total Current Income Tax Provision | 5,219 | 3,902 | 3,100 |
Deferred Taxes | |||
Federal | (2,326) | 97 | 2,299 |
State | (105) | 4 | 83 |
Foreign | (123) | (337) | (210) |
Total Deferred Income Tax Provision | (2,554) | (236) | 2,172 |
Income Tax Expense (Benefit), Total | $ 2,665 | $ 3,666 | $ 5,272 |
Income Taxes - Effective Incom
Income Taxes - Effective Income tax Rate (Details) | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
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 | 2.80% | 2.00% | 1.90% |
Foreign tax rate difference | (1.30%) | (0.00%) | (0.00%) |
Tax return to provision true-up | 0.70% | 1.20% | (3.00%) |
Permanent differences: | |||
— stock based compensation | 0.90% | 1.20% | 1.30% |
— domestic production activities deduction | (4.40%) | (1.60%) | (1.80%) |
— credit for increasing research activities | (0.70%) | (3.80%) | (1.50%) |
— other | (2.90%) | 0.40% | (0.50%) |
Change in valuation allowance | 0.60% | 0.00% | 0.10% |
Net income tax provision | 30.70% | 34.40% | 31.50% |
Income Taxes - Deferred Tax As
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2016 | Jun. 30, 2015 |
Deferred tax assets: | ||
Federal, state, and foreign net operating loss carryovers | $ 651 | $ 656 |
Stock option compensation | 1,696 | 1,353 |
Accrued vacation, allowance for returns, bonuses & other | 2,965 | 1,395 |
Gross deferred tax asset | 5,312 | 3,404 |
Deferred liabilities | ||
Patents and trademarks | (417) | (468) |
Change in tax accounting methods | 0 | (98) |
Property & equipment | (722) | (1,268) |
Gross deferred tax liabilities | (1,139) | (1,834) |
Less: valuation allowance | (267) | (218) |
Deferred tax assets, net | $ 3,906 | $ 1,352 |
Commitments and Contingencies -
Commitments and Contingencies - Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Future minimum lease payments under the non-cancelable leases | |||
2,017 | $ 2,592 | ||
2,018 | 1,340 | ||
2,019 | 1,246 | ||
2,020 | 1,290 | ||
2,021 | 1,334 | ||
Thereafter | 3,772 | ||
Total future minimum lease payments | 11,574 | ||
Rent expense | $ 2,300 | $ 2,400 | $ 1,900 |
Commitments and Contingencies57
Commitments and Contingencies - Legal Accruals (Details) - Pending Litigation | Jan. 21, 2014USD ($) | Oct. 11, 2016lawsuit |
Former Distributor Lawsuit | Minimum | Defamation Claim | ||
Loss Contingencies [Line Items] | ||
Damages sought, defendant's claim | $ | $ 20,000,000 | |
Johnson and Rupp vs Jensen | Alleged Breached Fiduciary Duties | Subsequent Event | ||
Loss Contingencies [Line Items] | ||
Number of shareholder derivative actions | lawsuit | 2 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended |
Jun. 30, 2016USD ($)transaction | |
Management | |
Related Party Transaction [Line Items] | |
Related party transaction, number of transactions | transaction | 2 |
Management | Minimum | |
Related Party Transaction [Line Items] | |
Related party transaction, amount of transaction | $ 120,000 |
Dinng | Branding and Marketing Services | |
Related Party Transaction [Line Items] | |
Related party transaction, amount of transaction | 500,000 |
Real Salt Lake | Partnership Terms | |
Related Party Transaction [Line Items] | |
Related party transaction, amount of transaction | 2,600,000 |
Real Salt Lake | Endorsement Fees | |
Related Party Transaction [Line Items] | |
Related party transaction, amount of transaction | 100,000 |
Real Salt Lake | Product Marketing | |
Related Party Transaction [Line Items] | |
Related party transaction, amount of transaction | $ 100,000 |
Interim Financial Results (Un59
Interim Financial Results (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2016 | Jun. 30, 2015 | Jun. 30, 2014 | |
Summary of selected quarterly financial information | |||||||||||
Revenue, net | $ 53,033 | $ 56,160 | $ 51,995 | $ 45,352 | $ 45,301 | $ 45,155 | $ 48,247 | $ 51,633 | $ 206,540 | $ 190,336 | $ 213,968 |
Gross profit | 43,632 | 46,446 | 44,153 | 38,377 | 38,008 | 37,603 | 40,761 | 45,954 | 172,608 | 162,326 | 180,774 |
Net income | $ 2,350 | $ 1,003 | $ 1,600 | $ 1,066 | $ 226 | $ 573 | $ 1,472 | $ 4,716 | $ 6,019 | $ 6,987 | $ 11,383 |
Per common share: | |||||||||||
Income per share, basic (dollars per share) | $ 0.17 | $ 0.07 | $ 0.12 | $ 0.08 | $ 0.02 | $ 0.04 | $ 0.11 | $ 0.33 | $ 0.44 | $ 0.50 | $ 0.75 |
Income per share, diluted (dollars per share) | $ 0.16 | $ 0.07 | $ 0.11 | $ 0.08 | $ 0.02 | $ 0.04 | $ 0.10 | $ 0.32 | $ 0.41 | $ 0.49 | $ 0.71 |