Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2018 | Jan. 31, 2019 | |
Document and Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | LFVN | |
Entity Registrant Name | Lifevantage Corp | |
Entity Central Index Key | 849,146 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 14,283,765 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Current assets | ||
Cash and cash equivalents | $ 18,989 | $ 16,652 |
Accounts receivable | 2,376 | 2,067 |
Income tax receivable | 2,866 | 451 |
Inventory, net | 13,301 | 13,627 |
Prepaid expenses and other | 6,126 | 6,141 |
Total current assets | 43,658 | 38,938 |
Long-term assets | ||
Property and equipment, net | 5,848 | 6,587 |
Intangible assets, net | 1,049 | 1,115 |
Long-term deferred income tax asset | 2,283 | 3,255 |
Other long-term assets | 1,255 | 1,247 |
TOTAL ASSETS | 54,093 | 51,142 |
Current liabilities | ||
Accounts payable | 4,108 | 3,813 |
Commissions payable | 8,071 | 7,546 |
Income tax payable | 162 | 39 |
Other accrued expenses | 14,422 | 10,407 |
Current portion of long-term debt | 2,000 | 2,000 |
Total current liabilities | 28,763 | 23,805 |
Long-term debt | ||
Principal amount | 2,500 | 3,500 |
Less: unamortized discount and deferred offering costs | (73) | (88) |
Long-term debt, net of unamortized discount and deferred offering costs | 2,427 | 3,412 |
Other long-term liabilities | 1,885 | 1,978 |
Total liabilities | 33,075 | 29,195 |
Commitments and contingencies - Note 7 | ||
Stockholders’ equity | ||
Preferred stock — par value $0.0001 per share, 5,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock — par value $0.0001 per share, 40,000 shares authorized and 14,267 and 14,073 issued and outstanding as of December 31, 2018 and June 30, 2018, respectively | 1 | 1 |
Additional paid-in capital | 123,501 | 124,663 |
Accumulated deficit | (102,494) | (102,731) |
Accumulated other comprehensive income | 10 | 14 |
Total stockholders’ equity | 21,018 | 21,947 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 54,093 | $ 51,142 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2018 | Jun. 30, 2018 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 14,267,000 | 14,073,000 |
Common stock, shares outstanding (in shares) | 14,267,000 | 14,073,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 58,167 | $ 49,482 | $ 113,776 | $ 98,609 |
Cost of sales | 9,794 | 9,117 | 18,994 | 17,856 |
Gross profit | 48,373 | 40,365 | 94,782 | 80,753 |
Operating expenses: | ||||
Commissions and incentives | 28,176 | 23,395 | 55,961 | 46,804 |
Selling, general and administrative | 19,616 | 14,643 | 36,918 | 30,224 |
Total operating expenses | 47,792 | 38,038 | 92,879 | 77,028 |
Operating income | 581 | 2,327 | 1,903 | 3,725 |
Other expense: | ||||
Interest expense | (100) | (103) | (209) | (265) |
Other expense, net | (72) | (169) | (120) | (147) |
Total other expense | (172) | (272) | (329) | (412) |
Income before income taxes | 409 | 2,055 | 1,574 | 3,313 |
Income tax benefit (expense) | 420 | (1,738) | 166 | (2,179) |
Net income | $ 829 | $ 317 | $ 1,740 | $ 1,134 |
Net income per share: | ||||
Basic (USD per share) | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 |
Diluted (USD per share) | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 13,944 | 13,956 | 13,996 | 13,959 |
Diluted (in shares) | 14,963 | 14,153 | 14,996 | 14,117 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | $ 121 | $ 46 | $ (4) | $ 66 |
Other comprehensive income (loss), net of tax | 121 | 46 | (4) | 66 |
Comprehensive income | $ 950 | $ 363 | $ 1,736 | $ 1,200 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Cumulative effect of adoption of accounting principle | $ (3) | $ (3) | |||
Stockholders' equity, adjusted beginning balance | 21,944 | $ 1 | $ 124,663 | (102,734) | $ 14 |
Beginning Balance (in shares) at Jun. 30, 2018 | 14,073 | ||||
Beginning Balance at Jun. 30, 2018 | 21,947 | $ 1 | 124,663 | (102,731) | 14 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of options | 172 | 172 | |||
Shares canceled or surrendered as payment of tax withholding (in shares) | 5 | ||||
Currency translation adjustment | (125) | (125) | |||
Net income | 911 | 911 | |||
Ending Balance (in shares) at Sep. 30, 2018 | 14,103 | ||||
Ending Balance at Sep. 30, 2018 | 23,531 | $ 1 | 125,464 | (101,823) | (111) |
Beginning Balance (in shares) at Jun. 30, 2018 | 14,073 | ||||
Beginning Balance at Jun. 30, 2018 | 21,947 | $ 1 | 124,663 | (102,731) | 14 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | $ 629 | 629 | |||
Exercise of options (in shares) | 35 | ||||
Repurchase of company stock (in shares) | (100) | ||||
Currency translation adjustment | $ (4) | ||||
Net income | 1,740 | ||||
Ending Balance (in shares) at Dec. 31, 2018 | 14,267 | ||||
Ending Balance at Dec. 31, 2018 | 21,018 | $ 1 | 123,501 | (102,494) | 10 |
Beginning Balance (in shares) at Sep. 30, 2018 | 14,103 | ||||
Beginning Balance at Sep. 30, 2018 | 23,531 | $ 1 | 125,464 | (101,823) | (111) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 999 | 999 | |||
Exercise of options (in shares) | 2 | ||||
Exercise of options | 12 | 12 | |||
Issuance of shares related to restricted stock (in shares) | 513 | ||||
Shares canceled or surrendered as payment of tax withholding (in shares) | (222) | ||||
Shares canceled or surrendered as payment of tax withholding | (2,974) | (2,974) | |||
Repurchase of company stock (in shares) | (129) | ||||
Repurchase of company stock | (1,500) | (1,500) | |||
Currency translation adjustment | 121 | 121 | |||
Net income | 829 | 829 | |||
Ending Balance (in shares) at Dec. 31, 2018 | 14,267 | ||||
Ending Balance at Dec. 31, 2018 | $ 21,018 | $ 1 | $ 123,501 | $ (102,494) | $ 10 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,740 | $ 1,134 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 878 | 672 |
Stock-based compensation | 3,053 | 1,453 |
Amortization of deferred financing fees | 2 | 6 |
Amortization of debt discount | 13 | 10 |
Deferred income tax | 972 | 690 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (303) | (218) |
Income tax receivable | (2,415) | 827 |
Inventory, net | 323 | (215) |
Prepaid expenses and other | 2,206 | 1,202 |
Other long-term assets | 7 | 104 |
Accounts payable | 308 | (1,582) |
Income tax payable | 122 | 192 |
Other accrued expenses | 420 | 817 |
Other long-term liabilities | (384) | (410) |
Net Cash Provided by Operating Activities | 6,942 | 4,682 |
Cash Flows from Investing Activities: | ||
Investments in convertible note receivable | (2,000) | 0 |
Purchase of equipment | (272) | (2,117) |
Net Cash Used in Investing Activities | (2,272) | (2,117) |
Cash Flows from Financing Activities: | ||
Repurchase of company stock | (1,500) | (250) |
Payment on term loan | (1,000) | (1,000) |
Exercise of options | 184 | 0 |
Net Cash Used in Financing Activities | (2,316) | (1,250) |
Foreign Currency Effect on Cash | (17) | 21 |
Increase in Cash and Cash Equivalents: | 2,337 | 1,336 |
Cash and Cash Equivalents — beginning of period | 16,652 | 11,458 |
Cash and Cash Equivalents — end of period | 18,989 | 12,794 |
Non Cash Investing and Financing Activities: | ||
Increase in other accrued expenses for shares purchased as payment of tax withholding | 2,974 | 0 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 152 | 183 |
Cash paid for income taxes | $ 1,066 | $ 471 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation LifeVantage Corporation is a company focused on biohacking the aging code through nutrigenomics, the study of how nutrition and naturally occurring compounds affect our genes. The Company is dedicated to helping people achieve their health, wellness and financial goals. The Company provides quality, scientifically-validated products and a financially rewarding direct sales business opportunity to customers and independent distributors. The Company sells its products in the United States, Japan, Hong Kong, Australia, Canada, Mexico, Thailand, the United Kingdom, the Netherlands, Germany, Austria and Taiwan. The Company also sells its products in a number of countries to customers for personal consumption only. In addition, the Company sells its products in China through an e-commerce business model. The Company engages in the identification, research, development and distribution of advanced nutraceutical dietary supplements and skin and hair care products, including Protandim ® , its line of scientifically-validated dietary supplements, TrueScience ® , its line of Nrf2-infused skin and hair care products, Petandim ™ for Dogs, its companion pet supplement formulated to combat oxidative stress in dogs, Axio ® , its Smart Energy Drink mixes, PhysIQ ™ , its Smart Weight Management System, and Omega+, its sustainable fish oil supplement. On March 9, 2018, following approval by the Company's stockholders and its 2018 Annual Meeting of Stockholders, the Company changed its state of incorporation from the State of Colorado to the State of Delaware pursuant to a plan of conversion. All outstanding shares of common stock, options and share units of the Colorado corporation were converted into an equivalent share, option or share unit of the Delaware corporation and the par value of the Company's common stock was adjusted to $0.0001 . All directors and officers of the Colorado corporation held the same position within the Delaware corporation on the date of reincorporation. The condensed consolidated financial statements included herein have been prepared by the Company’s management, without audit, pursuant to the rules and regulations of the SEC. In the opinion of the Company’s management, these interim financial statements include all adjustments that are considered necessary for a fair presentation of its financial position as of December 31, 2018 , and the results of operations for the three and six months ended December 31, 2018 and 2017 , and the cash flows for the six months ended December 31, 2018 and 2017 . Interim results are not necessarily indicative of results for a full year or for any future period. Certain amounts in the prior year financial statements have been reclassified for comparative purposes in order to conform with current year presentation. The condensed consolidated financial statements and notes included herein are presented as required by Form 10-Q, and do not contain certain information included in the Company’s audited financial statements and notes for the fiscal year ended June 30, 2018 , pursuant to the rules and regulations of the SEC. For further information, refer to the financial statements and notes thereto as of and for the year ended June 30, 2018 , and included in the annual report on Form 10-K on file with the SEC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The Company prepares the condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (GAAP). In preparing these statements, the Company is 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, the Company reviews its estimates, including those related to inventory valuation and obsolescence, sales returns, income taxes and tax valuation reserves, transfer pricing methodology and positions, impairment of receivables, 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 condensed consolidated balance sheets and as a component of comprehensive income. Transaction gains and losses are included in other expense, net in the condensed consolidated statements of operations and comprehensive income. For the three months ended December 31, 2018 and 2017 , net foreign currency losses of $0.1 million and $0.1 million , respectively, are recorded in other expense, net. For the six months ended December 31, 2018 and 2017 , net foreign currency losses of $0.1 million and $8,000 , respectively, are recorded in other expense, net. Derivative Instruments and Hedging Activities The Company's subsidiaries enter into transactions with each other which may not be denominated in the respective subsidiaries' functional currencies. The Company seeks to reduce its exposure to fluctuations in foreign exchange rates through the use of derivatives. The Company does not use such derivative financial instruments for trading or speculative purposes. To hedge risks associated with the foreign-currency-denominated intercompany transactions, the Company entered into forward foreign exchange contracts which were all settled by the end of December 2018 and were not designated for hedge accounting. For the three months ended December 31, 2018 and 2017 , realized losses of $25,000 and $0.1 million , respectively, related to forward contracts, are recorded in other expense, net. For the six months ended December 31, 2018 and 2017 , realized losses of $0.1 million and $0.1 million , respectively, related to forward contracts, are recorded in other expense, net. The Company did not hold any derivative instruments at December 31, 2018 . Cash and Cash Equivalents The Company considers only its monetary liquid assets with original maturities of three months or less as cash and cash equivalents. 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 investments. At December 31, 2018 , the Company had $13.4 million in cash accounts at one financial institution and $5.6 million in accounts at other financial institutions. As of December 31, 2018 and June 30, 2018 , and during the periods then ended, the Company’s cash balances exceeded federally insured limits. Accounts Receivable The Company’s accounts receivable as of December 31, 2018 and June 30, 2018 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 December 31, 2018 is not necessary. No bad debt expense has been recorded for the three and six months ended December 31, 2018 and 2017 . Inventory As of December 31, 2018 and June 30, 2018 , inventory consisted of (in thousands): December 31, June 30, Finished goods $ 9,364 $ 7,859 Raw materials 3,937 5,768 Total inventory $ 13,301 $ 13,627 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 $1.4 million and $1.4 million at December 31, 2018 and June 30, 2018 , respectively, related to obsolete and slow-moving inventory. Convertible Note Receivable The Company entered into a convertible promissory note agreement with Gig Economy Group, Inc. ("GEG") pursuant to which the Company agreed to loan to GEG up to an aggregate of $2.0 million in a series of loan installments, evidenced by a convertible promissory note having a maturity date of May 31, 2019. Interest shall accrue at a rate of 8% per annum, compounded annually. The principal and unpaid accrued interest of the note will either be repaid in cash or converted into shares of equity securities of GEG. As of December 31, 2018 , the note receivable balance was $2.0 million , which is included in prepaid expenses and other on the condensed consolidated balance sheet. 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 customers for returned product. The Company allows terminating independent 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. 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 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 three months ended December 31, 2018 and 2017 were $0.5 million and $0.3 million , respectively. Research and development expenses for the six months ended December 31, 2018 and 2017 were $0.9 million and $0.5 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 uses historical data for estimating the expected life of stock options. 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 restricted 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 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, updated for new corporate tax rates. 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. For the six months ended December 31, 2018 and 2017 , the Company recognized an income tax benefit of $0.2 million and income tax expense of $2.2 million , respectively, which is reflective of the Company’s current estimated federal, state and foreign effective tax rate. Realization of deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain. 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. For the three months ended December 31, 2018 and 2017 , the effects of approximately 0.1 million and 0.1 million common shares, respectively, issuable upon exercise of options and non-vested shares of restricted stock are not included in computations as their effect was anti-dilutive. For the six months ended December 31, 2018 and 2017 , the effects of approximately 0.2 million and 0.3 million common shares, respectively, issuable upon exercise of options and non-vested shares of restricted stock are not included in 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): Three Months Ended December 31, Six Months Ended December 31, 2018 2017 2018 2017 Numerator: Net income $ 829 $ 317 $ 1,740 $ 1,134 Denominator: Basic weighted-average common shares outstanding 13,944 13,956 13,996 13,959 Effect of dilutive securities: Stock awards and options 1,019 197 1,000 158 Diluted weighted-average common shares outstanding 14,963 14,153 14,996 14,117 Net income per share, basic $ 0.06 $ 0.02 $ 0.12 $ 0.08 Net income per share, diluted $ 0.06 $ 0.02 $ 0.12 $ 0.08 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 disaggregate revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region. See disaggregated revenue in Note 3. The following table presents the Company's long-lived assets for its most significant geographic markets: December 31, June 30, United States $ 8,060 $ 9,778 Japan $ 949 $ 921 Effect of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) , and has subsequently issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , 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) , ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (collectively, Topic 606). Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of Topic 606 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. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. This guidance was effective for the Company beginning on July 1, 2018 with the option to adopt using either a full retrospective or a modified retrospective approach. The Company adopted Topic 606 using the modified retrospective approach, under which the cumulative effect of initially applying Topic 606 was recognized as an immaterial adjustment to the opening balance of retained earnings during the first quarter of fiscal 2019. The Company evaluated each of its revenue streams and identified similar performance obligations under Topic 606 as compared to previous revenue recognition guidance. During its evaluation, the Company reviewed its loyalty points program and, based on the new guidance, changed the method of accounting from a cost provision method to a deferred revenue method, which resulted in immaterial adjustments to beginning balances upon adoption. As of December 31, 2018, the Company discontinued its loyalty points program, which resulted in an increase in revenue of approximately $0.5 million from the recognition of deferred revenue related to accrued loyalty points. There are also considerations related to internal control over financial reporting associated with implementing Topic 606. The Company evaluated its control framework for revenue recognition and identified no material changes needed in response to the new guidance. The Company also evaluated the expanded disclosure requirements under Topic 606 and designed and implemented the appropriate controls over gathering and reporting the information required under Topic 606. See Note 3. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . For lessees, this ASU requires that for all leases not considered to be short term, a company recognize both a right-of-use asset and lease liability 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. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. The Company is currently evaluating the impact of the ASU on the Company’s outstanding leases and it consolidated financial statements. The Company expects the adoption will result in a material increase to the assets and liabilities on the consolidated balance sheet, but does not expect a material impact on the consolidated statements of operations and comprehensive income or consolidated statements of cash flows. In May 2017, FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . The ASU provides guidance about which changes to the terms or conditions of a share-based award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: (1) The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This ASU became effective for the Company on July 1, 2018 and will be applied to an award modified on or after July 1, 2018. |
Revenue
Revenue | 6 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Revenues are recognized when control of the promised goods or services are transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales, value add, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company generates the majority of its revenues through product sales to customers. These products include the Protandim ® product line, the TrueScience ® line of Nrf2-infused skin and hair care products, Petandim ™ for Dogs, Axio ® Smart Energy Drink mixes, PhysIQ ™ Smart Weight Management System and the Omega+ sustainable fish oil. The Company ships most of its product directly to the consumer and receives substantially all payment for product 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. For items sold in packs and bundles, the Company determines the standalone selling price at contract inception for each distinct good, and then allocates the transaction price on a relative standalone selling price basis. Any discounts are accounted for as a direct reduction to the transaction price. Shipping and handling revenue is recognized upon shipment when the performance obligation is completed. The Company also charges amounts to independent distributors to attend events held by the Company. Tickets to events are sold as standalone items or included within packs sold to independent distributors. For event tickets sold in packs, the Company allocates a portion of the transaction price to the ticket on a relative standalone selling price basis. Any discounts are accounted for as a direct reduction to the transaction price. Fee revenue associated with ticket sales is recorded in the month that the event is held, which is when the Company has performed its obligations under the contract. Deferred Revenue The Company records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. Deferred revenue is included in accrued expenses in the condensed consolidated balance sheets and includes pre-sell tickets to events and obligations related to the Company’s loyalty points program. The Company pre-sells tickets to its events. When cash payments are received in advance of events, the cash received is recorded to deferred revenue until the event is held, at which time the Company has performed its obligations under the contract and the revenue is recognized. Historically, the Company has offered a loyalty points program for its customers that allows the customers to earn points from ongoing purchases that can be redeemed for products. As of December 31, 2018, the Company discontinued its loyalty points program and all revenues previously deferred under the program have been recognized. The Company accounted for these points prior to the discontinuance of the program as a reduction to the transaction price based on estimated usage. Sales Returns and Allowances 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 independent 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 a refund liability reserve and an asset reserve for its right to recover products based on historical experience. The returns asset reserve and returns liability reserve are evaluated on a quarterly basis. As of December 31, 2018 and June 30, 2018 , the returns liability reserve, net was $0.3 million and $0.4 million , respectively. Geographic Information The Company reports revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region. The following table presents the Company's revenues disaggregated by these two geographic regions (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2018 2017 2018 2017 Americas $ 42,440 $ 36,903 $ 83,519 $ 73,066 Asia/Pacific & Europe 15,727 12,579 30,257 25,543 Total revenues $ 58,167 $ 49,482 $ 113,776 $ 98,609 Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2018 2017 2018 2017 United States $ 39,633 $ 34,914 $ 77,948 $ 68,929 Japan $ 10,028 $ 10,383 $ 20,085 $ 21,240 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On March 30, 2016 , the Company entered into a loan agreement (the “2016 Loan Agreement”) to refinance its outstanding debt. In connection with the 2016 Loan Agreement and on the same date, the Company entered into a security agreement (the “Security Agreement”). The 2016 Loan Agreement provides for a term loan in an aggregate principal amount of $10.0 million (the “2016 Term Loan") and a revolving loan facility in an aggregate principal amount not to exceed $2.0 million (the “2016 Revolving Loan,” and collectively with the 2016 Term Loan, the 2016 Loan Agreement and the Security Agreement, the “2016 Credit Facility”). The principal amount of the 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 . If the Company borrows under the 2016 Revolving Loan, interest will be payable quarterly in arrears on the last day of each fiscal quarter. On May 4, 2018 , the Company entered into a loan modification agreement, which amended the 2016 Credit Facility (“Amendment No. 1”). Amendment No. 1 revised the maturity date from March 30, 2019 to March 31, 2021 (the “Maturity Date”) and increased the fixed interest rate for the term loan from 4.93% to 5.68% . Amendment No. 1 also revised certain financial covenants. The minimum fixed charge coverage ratio (as defined in Amendment No. 1) was revised from a minimum of 1.50 to 1.00 to 1.25 to 1.00 , measured on a trailing twelve-month basis, at the end of each fiscal quarter. The minimum working capital was increased from $5.0 million to $8.0 million . The funded debt to EBITDA ratio was replaced with the total liabilities to tangible net worth ratio (as defined in Amendment No. 1) of not greater than 3.00 to 1.00 at the end of each quarter. The minimum tangible net worth measure was removed from the financial covenants. The Company’s obligations under the 2016 Credit Facility, as amended, are secured by a security interest in substantially all of the Company’s assets. Loans outstanding under the 2016 Credit Facility, as amended, 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 2016 Revolving Loan exceeds $2.0 million , the Company must prepay an amount equal to such excess. Any principal amount of the 2016 Term Loan which is prepaid or repaid may not be re-borrowed. The 2016 Credit Facility, as amended, 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 2016 Credit Facility, as amended, also contains various financial covenants that require the Company to maintain certain consolidated working capital amounts, total liabilities to tangible net worth ratios and fixed charge coverage ratios. Additionally, the 2016 Credit Facility, as amended, 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 2016 Credit Facility, as amended. As of December 31, 2018 , the Company was in compliance with all applicable covenants under the 2016 Credit Facility, as amended. The Company’s book value for the 2016 Credit Facility, as amended, approximates the fair value. Aggregate future principal payments required in accordance with the terms of the 2016 Credit Facility, as amended, are as follows (in thousands): Fiscal Year Ending June 30, Amount 2019 (remaining six months ending June 30, 2019) $ 1,000 2020 2,000 2021 1,500 $ 4,500 On February 1, 2019, the Company made a principal payment of $2.0 million under the 2016 Term Loan and amended the 2016 Credit Facility to increase the revolving loan facility from $2.0 million to $5.0 million . |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the three and six months ended December 31, 2018 , the Company issued 2,000 and 37,000 shares, respectively, of common stock upon the exercise of options. During the three and six months ended December 31, 2018 , 0.2 million and 0.2 million shares, respectively, of restricted stock were canceled or surrendered as payment of tax withholding upon vesting. On November 27, 2017, the Company announced a share repurchase program authorizing it to repurchase up to $5 million in shares of the Company's common stock. The repurchase program permits the Company to purchase shares through a variety of methods, including in the open market, through privately negotiated transactions or other means as determined by the Company's management. As part of the repurchase program, the Company may enter into a pre-arranged stock repurchase plan which will operate in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act. Accordingly, transactions, if any, would be completed in accordance with the terms of the stock repurchase plan, including specified price, volume and timing conditions. The authorization may be suspended or discontinued at any time and expires on November 27, 2020. During the six months ended December 31, 2018 , 0.1 million shares of common stock were purchased by the Company under this repurchase program. At December 31, 2018 , there is $2.0 million remaining under this repurchase program. On February 1, 2019, the Board of Directors approved an amendment to the share repurchase program to increase the authorized share repurchase amount from $5 million to $15 million . The Company’s Certificate of Incorporation authorizes the issuance of preferred shares. However, as of December 31, 2018 , none have been issued and no rights or preferences have been assigned to the preferred shares by the Company’s board of directors. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Long-Term Incentive Plans Equity-Settled Plans The Company adopted, and the stockholders approved, the 2007 Long-Term Incentive Plan (the “2007 Plan”), effective November 21, 2006, to provide incentives to 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. Effective November 21, 2016, no new awards can be granted under the 2007 Plan. The Company adopted, and the stockholders 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 1.0 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 $5.60 and $20.09 per share, and vest over one to four year vesting periods. Awards expire in accordance with the terms of each award and, upon expiration of the award, the shares subject to the award will be added to the 2017 Plan pool as described below. The contractual term of stock options granted is generally ten years. No new awards will be granted under the 2010 Plan and forfeited or terminated shares will be added to the 2017 Plan pool as described below. The Company adopted, and the stockholders approved, the 2017 Long-Term Incentive Plan (the “2017 Plan”), effective February 16, 2017, to provide incentives to eligible employees, directors and consultants. On November 15, 2018 and February 2, 2018, the stockholders approved amendments to the 2017 Plan to increase by 715,000 shares and 425,000 shares, respectively, the number of shares of the Company's common stock that are available for issuance under the 2017 Plan. The maximum number of shares that can be issued under the 2017 Plan is not to exceed 2,265,000 shares, calculated as the sum of (i) 1,790,000 shares and (ii) up to 475,000 shares previously reserved for issuance under the 2010 Plan, including shares returned upon cancellation, termination or forfeiture of awards that were previously granted under that plan. As of December 31, 2018 , a maximum of 2.3 million shares of the Company's common stock can be issued under the 2017 Plan in connection with the grant of awards. Outstanding stock options awarded under the 2017 Plan have exercise prices of $4.44 per share, and vest over a three year vesting period. Awards expire in accordance with the terms of each award and the shares subject to the award are added back to the 2017 Plan upon expiration of the award. The contractual term of stock options granted are substantially the same as described above for the 2007 Plan and 2010 Plan. As of December 31, 2018 , there were stock option awards outstanding, net of awards expired, for an aggregate of 0.5 million shares of the Company's common stock. Cash-Settled Plans The Company adopted a performance incentive plan effective July 1, 2015 (the "Fiscal 2016 Performance Plan"). The Fiscal 2016 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 2016 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 2016 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 a single installment 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 award through the end of the third 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, 2016 (the "Fiscal 2017 Performance Plan") and July 1, 2017 (the "Fiscal 2018 Performance Plan"). The Fiscal 2017 Performance Plan and Fiscal 2018 Performance Plan include performance-based and service-based vesting requirements and payment terms that are substantially the same as described above for the Fiscal 2016 Performance Plan. Employee Stock Purchase Plan The Employee Stock Purchase Plan ("ESPP") was adopted on September 20, 2018, and subsequently approved by the shareholders on November 15, 2019. The purpose of the ESPP is to provide the Company's employees with the ability to acquire shares of the Company's common stock at a discount to the purchase date fair market value through payroll deductions. During the three and six months ended December 31, 2018, no payroll deductions were made and no shares of common stock were purchased under the ESPP. The first six-month offering period will begin in March 2019. 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 three and six months ended December 31, 2018 , stock-based compensation of $1.0 million and $1.6 million , respectively, was reflected as an increase to additional paid-in capital and an increase of $0.7 million and $1.4 million , respectively, was included in other accrued expenses, all of which was employee related. For the three and six months ended December 31, 2017 , stock-based compensation of $0.6 million and $1.0 million , respectively, was reflected as an increase to additional paid-in capital and an increase of $0.2 million and $0.4 million , respectively, was included in other accrued expenses, all of which was employee related. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 December 31, 2018 , 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 its business. Management assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in the consolidated financial statements. An estimated loss contingency is accrued in the 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 the consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. Class Action Lawsuit ( Smith v. LifeVantage Corp .): On January 24, 2018, a purported class action was filed in the United States District Court for the District of Connecticut, entitled Smith v. LifeVantage Corp ., Case No. 3:18-cv-a35 (D. Connecticut filed Jan. 24, 2018). In this action, plaintiff alleged that the Company, its Chief Executive Officer, Chief Sales Officer and Chief Marketing Officer operated a pyramid scheme in violation of a variety of federal and state statutes, including RICO and the Connecticut Unfair Trade Practices Act. On April 16, 2018, the Company filed motions with the court to dismiss the complaint against LifeVantage, dismiss the complaint against the Company's executives, transfer the venue of the case from the State of Connecticut to the State of Utah, and contest class certification. On July 23, 2018, the parties filed a stipulation with the Court agreeing to transfer the case to the Federal District Court for Utah. On September 20, 2018, Plaintiffs filed an amended complaint in Utah. As per the parties stipulated agreement, plaintiff's amended complaint dropped the RICO and Connecticut state law claims and removed the Company's Chief Sales Officer and Chief Marketing Officer as individual defendants (the Chief Executive Officer remains a defendant in the case). However, the amended complaint adds a new antitrust claim, alleging that the Company fraudulently obtained patents for its products and is attempting to use those patents in an anti-competitive manner. LifeVantage filed a Motion to Dismiss the amended complaint on November 5, 2018, Plaintiffs filed a response to LifeVantage’s Motion to Dismiss on December 17, 2018, and LifeVantage filed a reply brief on January 10, 2019. With the matter now being fully briefed for the Court, the Court can issue a ruling based on the briefs submitted by the parties or schedule a hearing for oral argument before entering a decision on the motion. 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 quarterly report on Form 10-Q, 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
Related Party Transactions | 6 Months Ended |
Dec. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions The Company contracted with GEG for outsourced software application development services pursuant to an agreement entered into between the Company and GEG, which included a convertible note. For discussion related to the convertible note between the Company and GEG, see Note 2. David Toole, who served as a member of the Company's board of directors until February 2, 2018, is a majority owner and an officer of GEG. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events As previously disclosed in Note 4, on February 1, 2019, the Company made a principal payment of $2.0 million under the 2016 Term Loan and amended the 2016 Credit Facility to increase the revolving loan facility from $2.0 million to $5.0 million . As previously disclosed in Note 5, on February 1, 2019, the Board of Directors approved an amendment to the share repurchase program to increase the authorized share repurchase amount from $5 million to $15 million . |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. |
Use of Estimates | Use of Estimates The Company prepares the condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America (GAAP). In preparing these statements, the Company is 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, the Company reviews its estimates, including those related to inventory valuation and obsolescence, sales returns, income taxes and tax valuation reserves, transfer pricing methodology and positions, impairment of receivables, 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 condensed consolidated balance sheets and as a component of comprehensive income. Transaction gains and losses are included in other expense, net in the condensed consolidated statements of operations and comprehensive income. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities The Company's subsidiaries enter into transactions with each other which may not be denominated in the respective subsidiaries' functional currencies. The Company seeks to reduce its exposure to fluctuations in foreign exchange rates through the use of derivatives. The Company does not use such derivative financial instruments for trading or speculative purposes. To hedge risks associated with the foreign-currency-denominated intercompany transactions, the Company entered into forward foreign exchange contracts which were all settled by the end of December 2018 and were not designated for hedge accounting. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers only its monetary liquid assets with original maturities of three months or less as cash and cash equivalents. |
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 investments. |
Accounts Receivable | Accounts Receivable The Company’s accounts receivable as of December 31, 2018 and June 30, 2018 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 December 31, 2018 is not necessary. |
Inventory | Inventories are carried and depicted above at the lower of cost or market, using the first-in, first-out method |
Revenue Recognition / Shipping and Handling | 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 customers for returned product. The Company allows terminating independent 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. 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 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 uses historical data for estimating the expected life of stock options. 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 restricted 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, updated for new corporate tax rates. 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. The Company does not use profitability reports on a regional or divisional basis for making business decisions. However, the Company does disaggregate revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region. |
Effect of New Accounting Pronouncements | Effect of New Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2014-09, Revenue from Contracts with Customers (Topic 606) , and has subsequently issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , 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) , ASU 2016-12, Revenue from Contracts with Customers (Topic 606): Narrow-Scope Improvements and Practical Expedients , and ASU 2016-20, Technical Corrections and Improvements to Topic 606, Revenue from Contracts with Customers (collectively, Topic 606). Topic 606 outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle of Topic 606 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. The guidance also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. This guidance was effective for the Company beginning on July 1, 2018 with the option to adopt using either a full retrospective or a modified retrospective approach. The Company adopted Topic 606 using the modified retrospective approach, under which the cumulative effect of initially applying Topic 606 was recognized as an immaterial adjustment to the opening balance of retained earnings during the first quarter of fiscal 2019. The Company evaluated each of its revenue streams and identified similar performance obligations under Topic 606 as compared to previous revenue recognition guidance. During its evaluation, the Company reviewed its loyalty points program and, based on the new guidance, changed the method of accounting from a cost provision method to a deferred revenue method, which resulted in immaterial adjustments to beginning balances upon adoption. As of December 31, 2018, the Company discontinued its loyalty points program, which resulted in an increase in revenue of approximately $0.5 million from the recognition of deferred revenue related to accrued loyalty points. There are also considerations related to internal control over financial reporting associated with implementing Topic 606. The Company evaluated its control framework for revenue recognition and identified no material changes needed in response to the new guidance. The Company also evaluated the expanded disclosure requirements under Topic 606 and designed and implemented the appropriate controls over gathering and reporting the information required under Topic 606. See Note 3. In February 2016, FASB issued ASU No. 2016-02, Leases (Topic 842) . For lessees, this ASU requires that for all leases not considered to be short term, a company recognize both a right-of-use asset and lease liability 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. This ASU is effective for annual periods beginning after December 15, 2018 and interim periods within those annual periods. The Company is currently evaluating the impact of the ASU on the Company’s outstanding leases and it consolidated financial statements. The Company expects the adoption will result in a material increase to the assets and liabilities on the consolidated balance sheet, but does not expect a material impact on the consolidated statements of operations and comprehensive income or consolidated statements of cash flows. In May 2017, FASB issued ASU No. 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting . The ASU provides guidance about which changes to the terms or conditions of a share-based award require an entity to apply modification accounting in Topic 718. An entity should account for the effects of a modification unless all the following are met: (1) The fair value of the modified award is the same as the fair value of the original award immediately before the original award is modified, (2) The vesting conditions of the modified award are the same as the vesting conditions of the original award immediately before the original award is modified, (3) The classification of the modified award as an equity instrument or a liability instrument is the same as the classification of the original award immediately before the original award is modified. This ASU became effective for the Company on July 1, 2018 and will be applied to an award modified on or after July 1, 2018. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Components of Inventory | As of December 31, 2018 and June 30, 2018 , inventory consisted of (in thousands): December 31, June 30, Finished goods $ 9,364 $ 7,859 Raw materials 3,937 5,768 Total inventory $ 13,301 $ 13,627 |
Summary of Computation of 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): Three Months Ended December 31, Six Months Ended December 31, 2018 2017 2018 2017 Numerator: Net income $ 829 $ 317 $ 1,740 $ 1,134 Denominator: Basic weighted-average common shares outstanding 13,944 13,956 13,996 13,959 Effect of dilutive securities: Stock awards and options 1,019 197 1,000 158 Diluted weighted-average common shares outstanding 14,963 14,153 14,996 14,117 Net income per share, basic $ 0.06 $ 0.02 $ 0.12 $ 0.08 Net income per share, diluted $ 0.06 $ 0.02 $ 0.12 $ 0.08 |
Long-lived Assets for Most Significant Geographic Markets | The following table presents the Company's long-lived assets for its most significant geographic markets: December 31, June 30, United States $ 8,060 $ 9,778 Japan $ 949 $ 921 |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The Company reports revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region. The following table presents the Company's revenues disaggregated by these two geographic regions (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2018 2017 2018 2017 Americas $ 42,440 $ 36,903 $ 83,519 $ 73,066 Asia/Pacific & Europe 15,727 12,579 30,257 25,543 Total revenues $ 58,167 $ 49,482 $ 113,776 $ 98,609 Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2018 2017 2018 2017 United States $ 39,633 $ 34,914 $ 77,948 $ 68,929 Japan $ 10,028 $ 10,383 $ 20,085 $ 21,240 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 6 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Future Principal Payments of the Credit Facility | Aggregate future principal payments required in accordance with the terms of the 2016 Credit Facility, as amended, are as follows (in thousands): Fiscal Year Ending June 30, Amount 2019 (remaining six months ending June 30, 2019) $ 1,000 2020 2,000 2021 1,500 $ 4,500 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) - $ / shares | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 09, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Preferred stock, par value (USD per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) shares in Millions | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Dec. 31, 2018USD ($)Segmentshares | Dec. 31, 2017USD ($)shares | Jun. 30, 2018USD ($) | |
Concentration Risk [Line Items] | |||||
Foreign currency transaction losses realized | $ 100,000 | $ 100,000 | $ 100,000 | $ 8,000 | |
Derivative instruments, realized loss | 25,000 | 100,000 | 100,000 | 100,000 | |
Bad debt expenses | 0 | 0 | 0 | 0 | |
Inventory valuation reserves | 1,400,000 | 1,400,000 | $ 1,400,000 | ||
Convertible notes receivable, aggregate amount | 2,000,000 | $ 2,000,000 | |||
Convertible notes receivable, interest rate | 8.00% | ||||
Notes receivable | $ 2,000,000 | $ 2,000,000 | |||
Money back guarantee period | 30 days | ||||
Percentage of products can be returned for a full refund by terminated distributors (up to) | 30.00% | 30.00% | |||
Percent of restocking fee | 10.00% | 10.00% | |||
Research and development | $ 500,000 | 300,000 | $ 900,000 | 500,000 | |
Income tax benefit (expense) | $ 420,000 | $ (1,738,000) | $ 166,000 | $ (2,179,000) | |
Antidilutive securities excluded from EPS calculation (in shares) | shares | 0.1 | 0.1 | 0.2 | 0.3 | |
Number of operating segments | Segment | 1 | ||||
Number of geographic segments | Segment | 2 | ||||
Cash accounts held primarily at One Financial Institution | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk | $ 13,400,000 | ||||
Cash held primarily at Other Financial Institutions | |||||
Concentration Risk [Line Items] | |||||
Concentration of credit risk | 5,600,000 | ||||
ASU 2014-09 | |||||
Concentration Risk [Line Items] | |||||
Revenue recognized related to accrued loyalty points | $ 500,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 9,364 | $ 7,859 |
Raw materials | 3,937 | 5,768 |
Total inventory | $ 13,301 | $ 13,627 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Computation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Sep. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||
Net income | $ 829 | $ 911 | $ 317 | $ 1,740 | $ 1,134 |
Denominator: | |||||
Basic weighted-average common shares outstanding (in shares) | 13,944 | 13,956 | 13,996 | 13,959 | |
Effect of dilutive securities: | |||||
Stock awards and options (in shares) | 1,019 | 197 | 1,000 | 158 | |
Diluted weighted-average common shares outstanding (in shares) | 14,963 | 14,153 | 14,996 | 14,117 | |
Net income per share, basic (USD per share) | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 | |
Net income per share, diluted (USD per share) | $ 0.06 | $ 0.02 | $ 0.12 | $ 0.08 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Segment Information (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Jun. 30, 2018 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 8,060 | $ 9,778 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 949 | $ 921 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 58,167 | $ 49,482 | $ 113,776 | $ 98,609 |
Americas | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 42,440 | 36,903 | 83,519 | 73,066 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 39,633 | 34,914 | 77,948 | 68,929 |
Asia/Pacific & Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | 15,727 | 12,579 | 30,257 | 25,543 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue, net | $ 10,028 | $ 10,383 | $ 20,085 | $ 21,240 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Millions | 6 Months Ended | |
Dec. 31, 2018USD ($)Segment | Jun. 30, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Money back guarantee period | 30 days | |
Percentage of products can be returned for a full refund by terminated distributors (up to) | 30.00% | |
Percent of restocking fee | 10.00% | |
Returns liability reserve, net | $ | $ 0.3 | $ 0.4 |
Number of geographic segments | Segment | 2 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Feb. 01, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 31, 2019USD ($) | May 04, 2018USD ($) | Mar. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | ||||||
Repayment of term loan | $ 1,000,000 | $ 1,000,000 | ||||
March 2016 Term Loan | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum capacity on draw | $ 10,000,000 | |||||
Frequency of periodic payment | quarterly | |||||
Quarterly installments | $ 500,000 | |||||
Fixed rate interest on debt | 5.68% | 4.93% | ||||
Debt instrument, covenant, fixed charge coverage ratio | 1.25 | 1.5 | ||||
Debt instrument, covenant, required minimum working capital | $ 8,000,000 | $ 5,000,000 | ||||
Debt instrument, covenant, total liabilities to tangible net worth ratio | 3 | |||||
March 2016 Revolving Loan | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum capacity on draw | $ 2,000,000 | |||||
Subsequent Event | March 2016 Term Loan | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Repayment of term loan | $ 2,000,000 | |||||
Subsequent Event | March 2016 Revolving Loan | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum capacity on draw | $ 5,000,000 | $ 2,000,000 |
Long-Term Debt - Future Princip
Long-Term Debt - Future Principal Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Debt Disclosure [Abstract] | |
2019 (remaining six months ending June 30, 2019) | $ 1,000 |
2,020 | 2,000 |
2,021 | 1,500 |
Long-term debt, gross | $ 4,500 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2018 | Feb. 01, 2019 | Jan. 31, 2019 | Nov. 27, 2017 | |
Class of Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 5,000,000 | ||||
Stock repurchase program shares repurchased (in shares) | 100,000 | ||||
Remaining authorized repurchase amount | $ 2,000,000 | $ 2,000,000 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Exercise of options (in shares) | 2,000 | 37,000 | |||
Shares canceled or surrendered as payment of tax withholding (in shares) | 200,000 | 200,000 | |||
Subsequent Event | |||||
Class of Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 15,000,000 | $ 5,000,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Millions | Nov. 15, 2018shares | Feb. 02, 2018shares | Dec. 31, 2018USD ($)Vesting_Installlment$ / sharesshares | Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)Vesting_Installlment$ / sharesshares | Dec. 31, 2017USD ($) | Nov. 21, 2006shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation reflected in additional paid in capital | $ | $ 1 | $ 0.6 | $ 1.6 | $ 1 | |||
Increase in share-based compensation included in other accrued expenses | $ | $ 0.7 | $ 0.2 | $ 1.4 | $ 0.4 | |||
2007 Long-Term Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 1,429,000 | ||||||
Right to purchase common stock, minimum price per share (USD per share) | $ / shares | $ 1.47 | ||||||
Right to purchase common stock, maximum price per share (USD per share) | $ / shares | $ 10.5 | ||||||
Contractual term of stock options granted | 10 years | ||||||
2007 Long-Term Incentive Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based payment award, vesting period | 1 year | ||||||
2007 Long-Term Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based payment award, vesting period | 3 years | ||||||
2010 Long-Term Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 475,000 | 1,000,000 | 1,000,000 | ||||
Right to purchase common stock, minimum price per share (USD per share) | $ / shares | $ 5.60 | ||||||
Right to purchase common stock, maximum price per share (USD per share) | $ / shares | $ 20.09 | ||||||
Contractual term of stock options granted | 10 years | ||||||
2010 Long-Term Incentive Plan | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based payment award, vesting period | 1 year | ||||||
2010 Long-Term Incentive Plan | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based payment award, vesting period | 4 years | ||||||
2017 Long-Term Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 2,265,000 | 2,265,000 | |||||
Share based payment award, vesting period | 3 years | ||||||
Number of additional shares authorized (in shares) | 715,000 | 425,000 | |||||
Right to purchase common stock, non-vested and outstanding, exercise price (USD per share) | $ / shares | $ 4.44 | $ 4.44 | |||||
Options outstanding, net of awards expired (in shares) | 500,000 | 500,000 | |||||
2017 Long-Term Incentive Plan Excluding 2010 Long-Term Incentive Plan | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares authorized (in shares) | 1,790,000 | ||||||
2016 Performance Incentive Plan | Performance Shares | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share based payment award, vesting period | 3 years | ||||||
Shares issued | 0 | ||||||
Number of vesting installments | Vesting_Installlment | 3 | 3 | |||||
Common Stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock issued under Employee Stock Purchase Plan (in shares) | 0 | 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 31, 2019 | Nov. 27, 2017 | Mar. 30, 2016 |
Subsequent Event [Line Items] | ||||||
Repayment of term loan | $ 1,000,000 | $ 1,000,000 | ||||
Stock repurchase program authorized amount | $ 5,000,000 | |||||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Stock repurchase program authorized amount | $ 15,000,000 | $ 5,000,000 | ||||
March 2016 Term Loan | Secured Debt | ||||||
Subsequent Event [Line Items] | ||||||
Maximum capacity on draw | $ 10,000,000 | |||||
March 2016 Term Loan | Secured Debt | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Repayment of term loan | 2,000,000 | |||||
March 2016 Revolving Loan | Revolving Credit Facility | ||||||
Subsequent Event [Line Items] | ||||||
Maximum capacity on draw | $ 2,000,000 | |||||
March 2016 Revolving Loan | Revolving Credit Facility | Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Maximum capacity on draw | $ 5,000,000 | $ 2,000,000 |