Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 31, 2019 | Jan. 24, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 31, 2019 | |
Document Transition Report | false | |
Document Period Start Date | ||
Entity File Number | 001-35647 | |
Entity Registrant Name | LIFEVANTAGE CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0224471 | |
Entity Address, Address Line One | 9785 S. Monroe Street | |
Entity Address, Address Line Two | Suite 400 | |
Entity Address, City or Town | Sandy | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84070 | |
City Area Code | 801 | |
Local Phone Number | 432-9000 | |
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Trading Symbol | LFVN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 14,359,064 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000849146 | |
Current Fiscal Year End Date | --06-30 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Current assets | ||
Cash and cash equivalents | $ 14,479 | $ 18,824 |
Accounts receivable | 1,788 | 2,066 |
Income tax receivable | 1,006 | 1,236 |
Inventory, net | 14,222 | 13,753 |
Prepaid expenses and other | 6,117 | 7,309 |
Total current assets | 37,612 | 43,188 |
Long-term assets | ||
Property and equipment, net | 7,586 | 7,131 |
Right-of-use assets | 2,136 | |
Intangible assets, net | 917 | 983 |
Deferred income tax asset | 3,014 | 2,693 |
Equity securities | 2,205 | |
Other long-term assets | 1,548 | 1,278 |
TOTAL ASSETS | 55,018 | 55,273 |
Current liabilities | ||
Accounts payable | 3,900 | 5,180 |
Commissions payable | 8,059 | 7,916 |
Income tax payable | 170 | 592 |
Lease liabilities | 2,270 | |
Other accrued expenses | 10,362 | 11,053 |
Current portion of long-term debt, net | 484 | 1,454 |
Total current liabilities | 25,245 | 26,195 |
Lease liabilities | 288 | |
Other long-term liabilities | 387 | 1,879 |
Total liabilities | 25,920 | 28,074 |
Commitments and contingencies - Note 8 | ||
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 14,293 and 14,114 issued and outstanding as of December 31, 2019 and June 30, 2019, respectively | 1 | 1 |
Additional paid-in capital | 125,858 | 127,096 |
Accumulated deficit | (96,793) | (99,960) |
Accumulated other comprehensive income | 32 | 62 |
Total stockholders’ equity | 29,098 | 27,199 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 55,018 | $ 55,273 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
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) | 14,293,000 | 14,114,000 |
Common stock, shares outstanding (in shares) | 14,293,000 | 14,114,000 |
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, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 61,242 | $ 58,167 | $ 117,470 | $ 113,776 |
Cost of sales | 10,230 | 9,794 | 19,421 | 18,994 |
Gross profit | 51,012 | 48,373 | 98,049 | 94,782 |
Operating expenses: | ||||
Commissions and incentives | 29,235 | 28,176 | 56,009 | 55,961 |
Selling, general and administrative | 18,131 | 19,616 | 35,817 | 36,918 |
Total operating expenses | 47,366 | 47,792 | 91,826 | 92,879 |
Operating income | 3,646 | 581 | 6,223 | 1,903 |
Other expense: | ||||
Interest expense, net | (41) | (100) | (89) | (209) |
Other expense, net | (148) | (72) | (228) | (120) |
Total other expense | (189) | (172) | (317) | (329) |
Income before income taxes | 3,457 | 409 | 5,906 | 1,574 |
Income tax benefit | 846 | 420 | (158) | (166) |
Net income | $ 4,303 | $ 829 | $ 6,064 | $ 1,740 |
Net income per share: | ||||
Basic (USD per share) | $ 0.31 | $ 0.06 | $ 0.44 | $ 0.12 |
Diluted (USD per share) | $ 0.30 | $ 0.06 | $ 0.42 | $ 0.12 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 13,902 | 13,944 | 13,908 | 13,996 |
Diluted (in shares) | 14,562 | 14,963 | 14,515 | 14,996 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | $ (14) | $ 121 | $ (30) | $ (4) |
Other comprehensive income (loss), net of tax | (14) | 121 | (30) | (4) |
Comprehensive income | $ 4,289 | $ 950 | $ 6,034 | $ 1,736 |
Condensed Consolidated Statem_2
Condensed Consolidated Statement of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance (in shares) at Jun. 30, 2019 | 14,114,000 | ||||
Beginning Balance at Jun. 30, 2019 | $ 27,199 | $ 1 | $ 127,096 | $ (99,960) | $ 62 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,276 | 1,276 | |||
Exercise of options (in shares) | 3,000 | ||||
Exercise of options | $ 11 | 11 | |||
Common stock issued under employee stock purchase plan (in shares) | 32,000 | ||||
Common stock issued under employee stock purchase plan | $ 339 | 339 | |||
Shares canceled or surrendered as payment of tax withholding (in shares) | (4,000) | ||||
Shares purchased as payment of tax withholding | (61) | (61) | |||
Repurchase of company stock (in shares) | (111,000) | ||||
Repurchase of company stock | (1,393) | (1,393) | |||
Currency translation adjustment | (16) | (16) | |||
Net income | 1,761 | 1,761 | |||
Ending Balance (in shares) at Sep. 30, 2019 | 14,034,000 | ||||
Ending Balance at Sep. 30, 2019 | 29,624 | $ 1 | 128,661 | (99,084) | 46 |
Beginning Balance (in shares) at Jun. 30, 2019 | 14,114,000 | ||||
Beginning Balance at Jun. 30, 2019 | 27,199 | $ 1 | 127,096 | (99,960) | 62 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares purchased as payment of tax withholding | $ (4,421) | ||||
Repurchase of company stock (in shares) | (300,000) | ||||
Currency translation adjustment | $ (30) | ||||
Net income | 6,064 | ||||
Ending Balance (in shares) at Dec. 31, 2019 | 14,293,000 | ||||
Ending Balance at Dec. 31, 2019 | 29,098 | $ 1 | 125,858 | (96,793) | 32 |
Beginning Balance (in shares) at Sep. 30, 2019 | 14,034,000 | ||||
Beginning Balance at Sep. 30, 2019 | 29,624 | $ 1 | 128,661 | (99,084) | 46 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 1,503 | 1,503 | |||
Exercise of options (in shares) | 21,000 | ||||
Exercise of options | 54 | 54 | |||
Common stock issued under equity award plans (in shares) | 659,000 | ||||
Shares canceled or surrendered as payment of tax withholding (in shares) | (281,000) | ||||
Share-based Payment Arrangement, Decrease for Tax Withholding Obligation | (4,360) | (4,360) | |||
Repurchase of company stock (in shares) | (140,000) | ||||
Repurchase of company stock | (2,012) | (2,012) | |||
Currency translation adjustment | (14) | (14) | |||
Net income | 4,303 | 4,303 | |||
Ending Balance (in shares) at Dec. 31, 2019 | 14,293,000 | ||||
Ending Balance at Dec. 31, 2019 | $ 29,098 | $ 1 | $ 125,858 | $ (96,793) | $ 32 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows from Operating Activities: | ||
Net income | $ 6,064 | $ 1,740 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 1,245 | 878 |
Stock-based compensation | 2,918 | 3,053 |
Amortization of right-of-use assets | 1,148 | |
Amortization of deferred financing fees | 4 | 2 |
Amortization of debt discount | 26 | 13 |
Deferred income tax | (486) | 972 |
Changes in operating assets and liabilities: | ||
Accounts receivable | 275 | (303) |
Income tax receivable | 230 | (2,415) |
Inventory, net | (452) | 323 |
Prepaid expenses and other | (1,000) | 2,206 |
Other long-term assets | (279) | 7 |
Accounts payable | (1,268) | 308 |
Income tax payable | (422) | 122 |
Other accrued expenses | (805) | 420 |
Lease liabilities | (1,328) | |
Other long-term liabilities | (105) | (384) |
Net Cash Provided by Operating Activities | 5,765 | 6,942 |
Cash Flows from Investing Activities: | ||
Investments in convertible note receivable | 0 | (2,000) |
Purchase of equipment | (1,633) | (272) |
Net Cash Used in Investing Activities | (1,633) | (2,272) |
Cash Flows from Financing Activities: | ||
Repurchase of company stock | (3,405) | (1,500) |
Payment on term loan | (1,000) | (1,000) |
Shares purchased as payment of tax withholding | (4,421) | 0 |
Proceeds from common stock issued under employee stock purchase plan | 339 | |
Exercise of options | 65 | 184 |
Net Cash Used in Financing Activities | (8,422) | (2,316) |
Foreign Currency Effect on Cash | (55) | (17) |
Increase (Decrease) in Cash and Cash Equivalents: | (4,345) | 2,337 |
Cash and Cash Equivalents — beginning of period | 18,824 | 16,652 |
Cash and Cash Equivalents — end of period | 14,479 | 18,989 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 36 | 152 |
Cash paid for income taxes | $ 654 | $ 1,066 |
Organization and Basis of Prese
Organization and Basis of Presentation | 6 Months Ended |
Dec. 31, 2019 | |
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 to support good health. The Company is dedicated to helping people achieve their health, wellness and financial goals. The Company provides quality, scientifically-validated products to customers and distributors and a financially rewarding direct sales opportunity to independent distributors. LifeVantage sells its products in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium and New Zealand. 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, LifeVantage ® Omega+ and ProBio dietary supplements, TrueScience ® , its line of skin and hair care products, Petandim ® for Dogs, its companion pet supplement formulated to combat oxidative stress in dogs, Axio ® Smart Energy Drink mixes, and PhysIQ ™ , its Smart Weight Management System. 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, 2019, and the results of operations for the three and six months ended December 31, 2019 and 2018, and the cash flows for the six months ended December 31, 2019 and 2018. 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, 2019, 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, 2019, 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, 2019 | |
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 revenue 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, 2019 and 2018, a net foreign currency gain of $0.1 million and a loss of $0.1 million, respectively, are recorded in other expense, net. For the six months ended December 31, 2019 and 2018, a net foreign currency gain of $12,000 and a loss of $0.1 million, 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 2019 and were not designated for hedge accounting. For the three months ended December 31, 2019 and 2018, realized losses of $0.2 million and $25,000, respectively, related to forward contracts, are recorded in other expense, net. For the six months ended December 31, 2019 and 2018, realized losses of $0.3 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, 2019. 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, 2019, the Company had $10.9 million in cash accounts at one financial institution and $3.6 million in accounts at other financial institutions. As of December 31, 2019 and June 30, 2019, 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, 2019 and June 30, 2019 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, 2019 is not necessary. No bad debt expense was recorded during the three and six months ended December 31, 2019 and 2018. Inventory As of December 31, 2019 and June 30, 2019, inventory consisted of (in thousands): December 31, June 30, Finished goods $ 10,738 75.5 % $ 9,903 72.0 % Raw materials 3,484 24.5 % 3,850 28.0 % Total inventory $ 14,222 100.0 % $ 13,753 100.0 % Inventories are carried at the lower of cost or net realizable value, using the first-in, first-out method, which includes a reduction in inventory values of $0.2 million and $0.2 million at December 31, 2019 and June 30, 2019, respectively, related to obsolete and slow-moving inventory. Fair Value of Financial Instruments The Company accounts for assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Equity securities held by the Company are measured at fair value on a nonrecurring basis; that is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments using fair value measurements with unobservable inputs (level 3), in certain circumstances (e.g., when there is evidence of impairment). Revenue Recognition Revenue is 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 revenue through product sales to customers. These products include the Protandim ® line of dietary supplements, LifeVantage ® Omega+ and ProBio dietary supplements, the TrueScience ® line of Nrf2-infused skin and hair care products, Petandim ® for Dogs, Axio ® Smart Energy Drink mixes, and the PhysIQ ™ Smart Weight Management System. 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 independent distributors to attend certain events held by the Company. Tickets to events are sold as standalone items or included within packs. 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. 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. After 30 days of purchase, only unopened product that is in a resalable and restockable condition may be returned within twelve months of purchase and shall receive a 100% refund, less a 10% handling and restocking fee and any shipping and handling costs. 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, 2019 and June 30, 2019, the returns liability reserve, net was $0.3 million and $0.4 million, respectively. Shipping and Handling Shipping and handling costs associated with inbound freight and freight out to customers and independent distributors are included in cost of sales. Shipping and handling fees charged to customers are included in revenue. 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, 2019 and 2018 were $0.3 million and $0.5 million, respectively. Research and development expenses for the six months ended December 31, 2019 and 2018 were $0.5 million and $0.9 million, respectively. Leases The Company accounts for leases in accordance with Accounting Standards Codification ("ASC") 842. The Company reviews all contracts and determines if the arrangement is or contains a lease, at inception. Operating leases are included in right-of-use (“ROU”) assets, current lease liabilities and long-term lease liabilities on the condensed consolidated balance sheets. The Company does not have any finance leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any upfront lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with a term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any residual value guarantees. 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 and options under the Company's 2019 Employee Stock Purchase Plan. The determination of the fair value of 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 data for estimating the expected volatility and expected life of stock options required in the Black-Scholes model. 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 as needed for changes in 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, 2019 and 2018, the Company recognized income tax benefit of $0.2 million and $0.2 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, 2019 and 2018, 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, 2019 and 2018, the effects of approximately 0.2 million and 0.2 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, 2019 2018 2019 2018 Numerator: Net income $ 4,303 $ 829 $ 6,064 $ 1,740 Denominator: Basic weighted-average common shares outstanding 13,902 13,944 13,908 13,996 Effect of dilutive securities: Stock awards and options 660 1,019 607 1,000 Diluted weighted-average common shares outstanding 14,562 14,963 14,515 14,996 Net income per share, basic $ 0.31 $ 0.06 $ 0.44 $ 0.12 Net income per share, diluted $ 0.30 $ 0.06 $ 0.42 $ 0.12 Segment Information The Company operates in a single operating segment by selling products directly to customers and through 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 disaggregates revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region. The following table presents the Company's revenue disaggregated by these two geographic regions (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Americas $ 44,284 $ 42,440 $ 84,465 $ 83,519 Asia/Pacific & Europe 16,958 15,727 33,005 30,257 Total revenue $ 61,242 $ 58,167 $ 117,470 $ 113,776 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, 2019 2018 2019 2018 United States $ 41,355 $ 39,633 $ 78,701 $ 77,948 Japan $ 10,497 $ 10,028 $ 21,555 $ 20,085 The following table presents the Company's long-lived assets for its most significant geographic markets: December 31, June 30, United States $ 11,883 $ 9,772 Japan $ 1,572 $ 955 Effect of New Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , which requires all lessees to 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. The Company adopted Topic 842 on July 1, 2019, using the modified retrospective transition method. The Company elected the practical expedients available under the provisions of the new standard, including: not reassessing whether expired or existing contracts are or contain leases; not reassessing the classification of expired or existing leases; not reassessing the initial direct cost for any existing leases; and using hindsight in determining the lease term. Upon adoption, the Company recognized cumulative operating lease liabilities of $3.9 million and operating right-of-use assets of $3.3 million. Additionally, a one-time beginning balance adjustment of $0.5 million was recognized in the condensed consolidated statement of stockholders’ equity due to an update to the expected term of an operating lease. |
Gig Economy Group Investment
Gig Economy Group Investment | 6 Months Ended |
Dec. 31, 2019 | |
Investments, All Other Investments [Abstract] | |
Gig Economy Group Investment | Gig Economy Group Investment 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 ("Convertible Note"). The Convertible Note accrued interest at a rate of 8% per annum, compounded annually. On May 17, 2019, the Company and GEG entered into an amendment agreement to extend the maturity date of the Convertible Note to December 31, 2019. In all other aspects, the Convertible Note remained unchanged from the original agreement. Pursuant to a Common Stock Purchase Agreement between the Company and GEG dated December 16, 2019, GEG issued to the Company 1,000,000 shares of GEG’s common stock, par value $0.0001 per share, in consideration for conversion and cancellation of all principal, interest and other amounts due under the Convertible Note (representing $2.2 million in aggregate consideration). Equity Securities under ASC 321 At December 31, 2019, the Company held a minority interest (less than 20%) in GEG, accounted for under ASC 321, Investments - Equity Securities ("ASC 321"), which is included in equity securities in the condensed consolidated balance sheets. Dividends received are reported in earnings if and when received. The Company reviews securities individually for impairment by evaluating if events or circumstances have occurred that may indicate the fair value of the investment is less than its carrying value. If such events or circumstances have occurred, the Company estimates the fair value of the investment and recognizes an impairment loss in other expense, net on the condensed consolidated statements of operations and comprehensive income equal to the difference between the fair value of the investment and its carrying value. In such cases, the estimated fair value of the investment is determined using unobservable inputs including assumptions by GEG's management and quantitative information such as lower valuations in recently completed or proposed financings. These inputs are classified as Level 3. Because GEG is in the early startup stage, GEG is subject to potential changes in cash flows and valuation, and may be unable to raise additional capital necessary to support its ongoing operations. Equity securities held by the Company lack readily determinable fair values and therefore the securities are measured at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or similar equity securities of the same issuer. The carrying amount of equity securities held by the Company without readily determinable fair values was $2.2 million at December 31, 2019. During the three months ended December 31, 2019, there were no price changes or impairments recognized. |
Leases
Leases | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for current corporate offices and certain equipment. These leases have remaining terms of one year to two For the three months ended December 31, 2019, operating lease expense was $0.7 million. For the six months ended December 31, 2019, operating lease expense was $1.3 million. Supplemental cash flow information related to operating leases was as follows (in thousands): Three Months Ended Six Months Ended December 31, 2019 Operating cash outflows from operating leases $ 720 $ 1,440 Right-of-use assets obtained in exchange for lease obligations $ — $ — Maturity of lease liabilities at December 31, 2019 are as follows (in thousands): Year ended June 30, Amount 2020 (remaining six months ending June 30, 2020) $ 1,413 2021 1,203 Total 2,616 Less: imputed interest (58) Present value of lease liabilities $ 2,558 Under ASC 840, minimum future operating lease obligations at June 30, 2019 are as follows (in thousands): Year ending June 30, Amount 2020 $ 2,872 2021 1,140 Total $ 4,012 |
Long-Term Debt
Long-Term Debt | 6 Months Ended |
Dec. 31, 2019 | |
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. On February 1, 2019, the Company entered into a loan modification agreement, which amended the 2016 Credit Facility, as amended ("Amendment No. 2"). Under Amendment No. 2, the Company made a principal payment of $2.0 million and increased the revolving loan facility from $2.0 million to $5.0 million. Amendment No. 2 also revised certain financial covenants. The minimum fixed charge coverage ratio (as defined in Amendment No. 2) was revised from a minimum of 1.25 to 1.00 to 1.10 to 1.00, measured on a trailing twelve-month basis, at the end of each fiscal quarter. The minimum working capital was decreased from $8.0 million to $6.0 million. 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, 2019, 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. The Company will repay the remaining $0.5 million balance of the 2016 Term Loan during fiscal 2020 in accordance with the terms of the 2016 Credit Facility, as amended. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the three and six months ended December 31, 2019, the Company issued 21,000 and 24,000 shares, respectively, of common stock upon the exercise of options. During the three and six months ended December 31, 2019, 0.3 million and 0.3 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 has entered into a pre-arranged stock repurchase plan which operates in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Accordingly, any transactions under such stock repurchase plan will be completed in accordance with the terms of the plan, including specified price, volume and timing conditions. The authorization may be suspended or discontinued at any time and expires on November 27, 2020. 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. During the six months ended December 31, 2019, the Company purchased 0.3 million shares of common stock at an aggregate price of $3.4 million under this repurchase program. At December 31, 2019, there is $5.4 million remaining under this repurchase program. The Company’s Certificate of Incorporation authorizes the issuance of preferred shares. However, as of December 31, 2019, 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, 2019 | |
Share-based Payment Arrangement [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 $3.36 and $10.50 per share, with initial vesting periods of one three ten 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 four ten 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 February 2, 2018 and November 15, 2018, the stockholders approved amendments to the 2017 Plan to increase by 425,000 shares and 715,000 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, 2019, 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 substantially the same as described above for the 2007 Plan and 2010 Plan. As of December 31, 2019, under the 2017 Plan, there were stock option awards outstanding, net of awards expired, for an aggregate of 0.4 million shares of the Company's common stock. Cash-Settled Plans The Company adopted a performance incentive plan effective July 1, 2016 (the "Fiscal 2017 Performance Plan"). The Fiscal 2017 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 2017 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 2017 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 Employee Stock Purchase Plan General. The Company's 2019 Employee Stock Purchase Plan ("ESPP") was adopted by the board of directors in September 2018 and its stockholders approved it in November 2018. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. Share Reserve. The Company has reserved 400,000 shares of its common stock for issuance under the ESPP. As of December 31, 2019, 367,114 shares were available for issuance. The number of shares reserved under the ESPP will automatically be adjusted in the event of a stock split, stock dividend or a reverse stock split (including an adjustment to the per-purchase period share limit). Purchase Price. Employees may purchase each share of common stock under the ESPP at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of the six-month offering periods. An employee's contributions to the ESPP are limited to 15% of their regular hourly or salary compensation, and up to a maximum of 3,000 shares may be purchased during any offering period. A participant shall not be granted an option under the ESPP if such option would permit the participant's rights to purchase stock to accrue at a rate exceeding $25,000 grant date fair market value of stock for each calendar year in which such option is outstanding at any time. Offering Periods. Unless otherwise determined by the compensation committee, the ESPP will be operated through a series of successive six-month offering periods, which will begin each year on March 1 and September 1. During the six months ended December 31, 2019, 32,886 shares of common stock were issued under the ESPP. During the six months ended December 31, 2018, no shares of common stock were issued. 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, 2019, stock-based compensation of $1.4 million and $2.7 million, respectively, was reflected as an increase to additional paid-in capital and an increase of $0.1 million and $0.2 million, respectively, was included in other accrued expenses, all of which was employee related. 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. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies The Company accounts for contingent liabilities in accordance with ASC 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, 2019, 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 of 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, Plaintiffs 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). The Plaintiffs' amended complaint added an antitrust claim, alleging that the Company fraudulently obtained patents for its products and is attempting to use those patents in an anti-competitive manner. The Company filed a Motion to Dismiss the amended complaint on November 5, 2018, Plaintiffs filed a response to the Company’s Motion to Dismiss on December 17, 2018, and the Company filed a reply brief on January 10, 2019. The Court ruled on the motion on December 5, 2019, dismissing three of the Plaintiff's four claims, including the antitrust claim, unjust enrichment claim, and the securities claim for the sale of unregistered securities. On December 19, 2019, Plaintiffs filed a second amended complaint which included three causes of action, including a 10(b)(5) securities fraud claim, and renewed claims relating to the sale of unregistered securities and unjust enrichment. The Company's response is due on January 28, 2020. 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. |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party TransactionsThe Company has entered into a series of agreements with GEG for outsourced software application development services. The Company and GEG have also entered into a common stock purchase agreement. For discussion related to the common stock purchase agreement, see Note 3. Two members of the Company's board of directors serve on the GEG board of directors. During the six months ended December 31, 2019, the Company paid $1.1 million to GEG for software application development services. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Consolidation | ConsolidationThe 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 revenue 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 |
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. |
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 RiskAccounting 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 ReceivableThe Company’s accounts receivable as of December 31, 2019 and June 30, 2019 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, 2019 is not necessary. |
Inventory | Inventories are carried at the lower of cost or net realizable value, using the first-in, first-out method |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Equity securities held by the Company are measured at fair value on a nonrecurring basis; that is, the assets are not measured at fair value on an ongoing basis, but are subject to fair value adjustments using fair value measurements with unobservable inputs (level 3), in certain circumstances (e.g., when there is evidence of impairment). |
Revenue Recognition And Shipping and Handling | Revenue Recognition Revenue is 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 revenue through product sales to customers. These products include the Protandim ® line of dietary supplements, LifeVantage ® Omega+ and ProBio dietary supplements, the TrueScience ® line of Nrf2-infused skin and hair care products, Petandim ® for Dogs, Axio ® Smart Energy Drink mixes, and the PhysIQ ™ Smart Weight Management System. 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 independent distributors to attend certain events held by the Company. Tickets to events are sold as standalone items or included within packs. 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. 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. After 30 days of purchase, only unopened product that is in a resalable and restockable condition may be returned within twelve months of purchase and shall receive a 100% refund, less a 10% handling and restocking fee and any shipping and handling costs. 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, 2019 and June 30, 2019, the returns liability reserve, net was $0.3 million and $0.4 million, respectively. Shipping and Handling Shipping and handling costs associated with inbound freight and freight out to customers and independent distributors are included in cost of sales. Shipping and handling fees charged to customers are included in revenue. |
Research and Development Costs | Research and Development CostsThe Company expenses all costs related to research and development activities, as incurred. |
Leases | Leases The Company accounts for leases in accordance with Accounting Standards Codification ("ASC") 842. The Company reviews all contracts and determines if the arrangement is or contains a lease, at inception. Operating leases are included in right-of-use (“ROU”) assets, current lease liabilities and long-term lease liabilities on the condensed consolidated balance sheets. The Company does not have any finance leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in |
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 and options under the Company's 2019 Employee Stock Purchase Plan. The determination of the fair value of 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 data for estimating the expected volatility and expected life of stock options required in the Black-Scholes model. 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 as needed for changes in 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 directly to customers and through 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 disaggregates 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 February 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-02, Leases (Topic 842) , which requires all lessees to 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. The Company adopted Topic 842 on July 1, 2019, using the modified retrospective transition method. The Company elected the practical expedients available under the provisions of the new standard, including: not reassessing whether expired or existing contracts are or contain leases; not reassessing the classification of expired or existing leases; not reassessing the initial direct cost for any existing leases; and using hindsight in determining the lease term. Upon adoption, the Company recognized cumulative operating lease liabilities of $3.9 million and operating right-of-use assets of $3.3 million. Additionally, a one-time beginning balance adjustment of $0.5 million was recognized in the condensed consolidated statement of stockholders’ equity due to an update to the expected term of an operating lease. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Components of inventory | As of December 31, 2019 and June 30, 2019, inventory consisted of (in thousands): December 31, June 30, Finished goods $ 10,738 75.5 % $ 9,903 72.0 % Raw materials 3,484 24.5 % 3,850 28.0 % Total inventory $ 14,222 100.0 % $ 13,753 100.0 % |
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, 2019 2018 2019 2018 Numerator: Net income $ 4,303 $ 829 $ 6,064 $ 1,740 Denominator: Basic weighted-average common shares outstanding 13,902 13,944 13,908 13,996 Effect of dilutive securities: Stock awards and options 660 1,019 607 1,000 Diluted weighted-average common shares outstanding 14,562 14,963 14,515 14,996 Net income per share, basic $ 0.31 $ 0.06 $ 0.44 $ 0.12 Net income per share, diluted $ 0.30 $ 0.06 $ 0.42 $ 0.12 |
Revenue disaggregated by geographic regions | The following table presents the Company's revenue disaggregated by these two geographic regions (in thousands): Three Months Ended December 31, Six Months Ended December 31, 2019 2018 2019 2018 Americas $ 44,284 $ 42,440 $ 84,465 $ 83,519 Asia/Pacific & Europe 16,958 15,727 33,005 30,257 Total revenue $ 61,242 $ 58,167 $ 117,470 $ 113,776 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, 2019 2018 2019 2018 United States $ 41,355 $ 39,633 $ 78,701 $ 77,948 Japan $ 10,497 $ 10,028 $ 21,555 $ 20,085 |
Long-lived assets by geographic areas | The following table presents the Company's long-lived assets for its most significant geographic markets: December 31, June 30, United States $ 11,883 $ 9,772 Japan $ 1,572 $ 955 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Schedule of supplemental cash flow related to operating leases | Supplemental cash flow information related to operating leases was as follows (in thousands): Three Months Ended Six Months Ended December 31, 2019 Operating cash outflows from operating leases $ 720 $ 1,440 Right-of-use assets obtained in exchange for lease obligations $ — $ — |
Schedule of maturity of lease liabilities | Maturity of lease liabilities at December 31, 2019 are as follows (in thousands): Year ended June 30, Amount 2020 (remaining six months ending June 30, 2020) $ 1,413 2021 1,203 Total 2,616 Less: imputed interest (58) Present value of lease liabilities $ 2,558 |
Schedule of minimum future operating lease obligations | Under ASC 840, minimum future operating lease obligations at June 30, 2019 are as follows (in thousands): Year ending June 30, Amount 2020 $ 2,872 2021 1,140 Total $ 4,012 |
Organization and Basis of Pre_2
Organization and Basis of Presentation (Details) - $ / shares | Dec. 31, 2019 | Jun. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Preferred stock, par value (USD per share) | $ 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, 2019USD ($)shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2019USD ($)Segmentshares | Dec. 31, 2018USD ($)shares | Jul. 01, 2019USD ($) | Jun. 30, 2019USD ($) | |
Concentration Risk [Line Items] | ||||||
Foreign currency transaction gain (loss), realized | $ 100,000 | $ (100,000) | $ 12,000 | $ (100,000) | ||
Derivative instruments not designated as hedging instruments, gain (loss), net | (200,000) | (25,000) | (300,000) | (100,000) | ||
Bad debt expenses | 0 | 0 | 0 | 0 | ||
Inventory valuation reserves | 200,000 | $ 200,000 | $ 200,000 | |||
Money back guarantee period | 30 days | |||||
Returns liability reserve, net | 300,000 | $ 300,000 | $ 400,000 | |||
Research and development | 300,000 | 500,000 | 500,000 | 900,000 | ||
Income tax expense | $ (846,000) | $ (420,000) | $ 158,000 | $ 166,000 | ||
Antidilutive securities excluded from EPS calculation (in shares) | shares | 0.1 | 0.1 | 0.2 | 0.2 | ||
Number of operating segments | Segment | 1 | |||||
Number of geographic segments | Segment | 2 | |||||
Operating lease liabilities | $ 2,558,000 | $ 2,558,000 | $ 3,900,000 | |||
Right-of-use assets | $ 2,136,000 | 2,136,000 | 3,300,000 | |||
Cumulative effect of adoption of accounting principle | $ 508,000 | |||||
Cash accounts held primarily at One Financial Institution | ||||||
Concentration Risk [Line Items] | ||||||
Concentration of credit risk | 10,900,000 | |||||
Cash held primarily at Other Financial Institutions | ||||||
Concentration Risk [Line Items] | ||||||
Concentration of credit risk | $ 3,600,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 10,738 | $ 9,903 |
Raw materials | 3,484 | 3,850 |
Total inventory | $ 14,222 | $ 13,753 |
Finished goods, percent of inventory (in percentage) | 75.50% | 72.00% |
Raw materials, percent of inventory (in percentage) | 24.50% | 28.00% |
Percent of total inventory (in percentage) | 100.00% | 100.00% |
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, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Numerator: | |||||
Net income | $ 4,303 | $ 1,761 | $ 829 | $ 6,064 | $ 1,740 |
Denominator: | |||||
Basic weighted-average common shares outstanding (in shares) | 13,902 | 13,944 | 13,908 | 13,996 | |
Effect of dilutive securities: | |||||
Stock awards and options (in shares) | 660 | 1,019 | 607 | 1,000 | |
Diluted weighted-average common shares outstanding (in shares) | 14,562 | 14,963 | 14,515 | 14,996 | |
Net income per share, basic (USD per share) | $ 0.31 | $ 0.06 | $ 0.44 | $ 0.12 | |
Net income per share, diluted (USD per share) | $ 0.30 | $ 0.06 | $ 0.42 | $ 0.12 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | $ 61,242 | $ 58,167 | $ 117,470 | $ 113,776 | |
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 44,284 | 42,440 | 84,465 | 83,519 | |
Asia/Pacific & Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 16,958 | 15,727 | 33,005 | 30,257 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 41,355 | 39,633 | 78,701 | 77,948 | |
Long-lived assets | 11,883 | 11,883 | $ 9,772 | ||
Japan | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 10,497 | $ 10,028 | 21,555 | $ 20,085 | |
Long-lived assets | $ 1,572 | $ 1,572 | $ 955 |
Gig Economy Group Investment (D
Gig Economy Group Investment (Details) - GEG - USD ($) | Dec. 16, 2019 | Dec. 31, 2019 |
Related Party Transaction [Line Items] | ||
Notes receivable, related party, maximum commitment | $ 2,000,000 | |
Debt conversion, original debt, interest rate of debt (in percentage) | 8.00% | |
Common Stock | ||
Related Party Transaction [Line Items] | ||
Debt conversion, converted instrument, shares issued (in shares) | 1,000,000 | |
Debt conversion, converted instrument, amount | $ 2,200,000 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining lease term | 1 year 3 days | 1 year 3 days |
Weighted average discount rate (in percentage) | 4.92% | 4.92% |
Operating lease expense | $ 0.7 | $ 1.3 |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | 1 year |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 2 years | 2 years |
Leases - Schedule of supplement
Leases - Schedule of supplemental cash flow related to operating leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 31, 2019 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 720 | $ 1,440 |
Right-of-use assets obtained in exchange for lease obligations | $ 0 | $ 0 |
Leases - Schedule of maturity o
Leases - Schedule of maturity of lease liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Jul. 01, 2019 |
Leases [Abstract] | ||
2020 (remaining six months ending June 30, 2020) | $ 1,413 | |
2021 | 1,203 | |
Total | 2,616 | |
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | (58) | |
Present value of lease liabilities | $ 2,558 | $ 3,900 |
Leases - Schedule of minimum fu
Leases - Schedule of minimum future operating lease obligations (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 2,872 |
2021 | 1,140 |
Total | $ 4,012 |
Long-Term Debt - Narrative (Det
Long-Term Debt - Narrative (Details) | Feb. 01, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | May 04, 2018USD ($) | Mar. 30, 2016USD ($) |
Line of Credit Facility [Line Items] | |||||
Repayment of term loan | $ 1,000,000 | $ 1,000,000 | |||
Lease liabilities | $ 288,000 | ||||
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 (in percentage) | 5.68% | 4.93% | |||
Debt instrument, covenant, fixed charge coverage ratio | 1.10 | 1.25 | 1.50 | ||
Debt instrument, covenant, required minimum working capital | $ 6,000,000 | $ 8,000,000 | $ 5,000,000 | ||
Debt instrument, covenant, total liabilities to tangible net worth ratio | 3 | ||||
Lease liabilities | $ 500,000 | ||||
March 2016 Term Loan | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum capacity on draw | 2,000,000 | ||||
March 2016 Revolving Loan | Secured Debt | |||||
Line of Credit Facility [Line Items] | |||||
Repayment of term loan | 2,000,000 | ||||
March 2016 Revolving Loan | Revolving Credit Facility | |||||
Line of Credit Facility [Line Items] | |||||
Maximum capacity on draw | $ 5,000,000 | $ 2,000,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Feb. 01, 2019 | Nov. 27, 2017 | |
Class of Stock [Line Items] | |||||
Stock repurchase program authorized amount | $ 15,000,000 | $ 5,000,000 | |||
Stock repurchase program shares repurchased (in shares) | 300,000 | ||||
Repurchase of company stock | $ 3,405,000 | $ 1,500,000 | |||
Remaining authorized repurchase amount | $ 5,400,000 | $ 5,400,000 | |||
Common Stock | |||||
Class of Stock [Line Items] | |||||
Exercise of options (in shares) | 21,000 | 24,000 | |||
Shares canceled or surrendered as payment of tax withholding (in shares) | 300,000 | 300,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | Nov. 15, 2018shares | Feb. 02, 2018shares | Sep. 27, 2010$ / sharesshares | Nov. 21, 2006$ / sharesshares | Dec. 31, 2019USD ($)installment$ / sharesshares | Sep. 30, 2019shares | Dec. 31, 2018USD ($)shares | Dec. 31, 2019USD ($)installment$ / sharesshares | Dec. 31, 2018USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common stock issued under employee stock purchase plan (in shares) | 32,000 | ||||||||
Stock based compensation reflected in additional paid in capital | $ | $ 1,400,000 | $ 1,000,000 | $ 2,700,000 | $ 1,600,000 | |||||
Increase in share-based compensation included in other accrued expenses | $ | $ 100,000 | $ 700,000 | $ 200,000 | $ 1,400,000 | |||||
2007 Long-Term Incentive Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Number of shares authorized (in shares) | 1,400,000 | ||||||||
Right to purchase common stock, minimum price per share (USD per share) | $ / shares | $ 3.36 | ||||||||
Right to purchase common stock, maximum price per share (USD per share) | $ / shares | $ 10.50 | ||||||||
Contractual term of stock options granted | 10 years | ||||||||
Options outstanding, net of awards expired (in shares) | 26,000 | 26,000 | |||||||
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 | |||||||
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 | ||||||||
Options outstanding, net of awards expired (in shares) | 100,000 | 100,000 | |||||||
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 | 2,300,000 | 2,300,000 | ||||||
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) | 400,000 | 400,000 | |||||||
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 | ||||||||
Employee Stock Purchase Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Common Stock, capital shares reserved for future issuance (in shares) | 400,000 | 400,000 | |||||||
Shares available for issuance under the ESPP (in shares) | 367,114 | 367,114 | |||||||
Purchase price of common stock (in percentage) | 85.00% | ||||||||
Maximum employee subscription rate (in percentage) | 15.00% | 15.00% | |||||||
Maximum number of shares per employee | 3,000 | ||||||||
Amount in excess of fair market value of stock for option not to be granted | $ | $ 25,000 | $ 25,000 | |||||||
Common stock issued under employee stock purchase plan (in shares) | 32,886 | 0 | |||||||
Performance Shares | 2017 Performance Plan | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Share based payment award, vesting period | 3 years | ||||||||
Shares issued (in shares) | 0 | ||||||||
Number of vesting installments | installment | 3 | 3 |
Related Party Disclosures (Deta
Related Party Disclosures (Details) $ in Millions | 6 Months Ended |
Dec. 31, 2019USD ($) | |
GEG | |
Related Party Transaction [Line Items] | |
Related party purchase | $ 1.1 |
Uncategorized Items - lfvn-2019
Label | Element | Value |
Stockholders' Equity Attributable to Parent, Adjusted Balance | lfvn_StockholdersEquityAttributabletoParentAdjustedBalance | $ 27,707,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity Attributable to Parent, Adjusted Balance | lfvn_StockholdersEquityAttributabletoParentAdjustedBalance | $ 127,096,000 |
Common Stock [Member] | ||
Shares, Outstanding | us-gaap_SharesOutstanding | 14,114,000 |
Stockholders' Equity Attributable to Parent, Adjusted Balance | lfvn_StockholdersEquityAttributabletoParentAdjustedBalance | $ 1,000 |
Retained Earnings [Member] | ||
Stockholders' Equity Attributable to Parent, Adjusted Balance | lfvn_StockholdersEquityAttributabletoParentAdjustedBalance | (99,452,000) |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 508,000 |
AOCI Attributable to Parent [Member] | ||
Stockholders' Equity Attributable to Parent, Adjusted Balance | lfvn_StockholdersEquityAttributabletoParentAdjustedBalance | $ 62,000 |