Cover Page
Cover Page - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2024 | Aug. 27, 2024 | Dec. 31, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 30, 2024 | ||
Current Fiscal Year End Date | --06-30 | ||
Document Transition Report | false | ||
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 | 3300 N. Triumph Blvd | ||
Entity Address, Address Line Two | Suite 700 | ||
Entity Address, City or Town | Lehi | ||
Entity Address, State or Province | UT | ||
Entity Address, Postal Zip Code | 84043 | ||
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 Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 68.1 | ||
Entity Common Stock, Shares Outstanding | 12,479,185 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive proxy statement to be filed subsequent to the date hereof with the Securities and Exchange Commission pursuant to Regulation 14A in connection with the registrant’s fiscal year 2025 annual meeting of stockholders are incorporated by reference into Part III of this report. Such definitive proxy statement will be filed with the Commission not later than 120 days after the end of the registrant’s fiscal year ended June 30, 2024. | ||
Entity Central Index Key | 0000849146 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2024 | ||
Document Fiscal Period Focus | FY | ||
Document Financial Statement Error Correction [Flag] | false |
Audit Information
Audit Information | 12 Months Ended |
Jun. 30, 2024 | |
Auditor Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Location | Salt Lake City, Utah |
Auditor Firm ID | 34 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 16,886 | $ 21,605 |
Accounts receivable | 2,949 | 1,612 |
Income tax receivable | 313 | 241 |
Inventory | 15,055 | 16,073 |
Prepaid expenses and other | 2,443 | 4,753 |
Total current assets | 37,646 | 44,284 |
Non-current assets | ||
Property and equipment, net | 7,813 | 9,086 |
Right-of-use assets | 9,569 | 8,738 |
Intangible assets, net | 323 | 455 |
Deferred income tax asset | 4,268 | 2,991 |
Other long-term assets | 680 | 569 |
TOTAL ASSETS | 60,299 | 66,123 |
Current liabilities | ||
Accounts payable | 5,853 | 3,505 |
Commissions payable | 6,569 | 6,651 |
Income tax payable | 202 | 0 |
Lease liabilities | 1,811 | 1,521 |
Other accrued expenses | 7,874 | 7,932 |
Total current liabilities | 22,309 | 19,609 |
Long-term lease liabilities | 11,801 | 11,566 |
Other long-term liabilities | 198 | 299 |
Total liabilities | 34,308 | 31,474 |
Commitments and contingencies — Note 13 | ||
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 12,510 and 12,622 issued and outstanding as of June 30, 2024 and 2023, respectively | 1 | 1 |
Additional paid-in capital | 136,644 | 134,314 |
Accumulated deficit | (108,738) | (98,305) |
Accumulated other comprehensive loss | (1,916) | (1,361) |
Total stockholders’ equity | 25,991 | 34,649 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 60,299 | $ 66,123 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (dollars 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 (dollars per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,510,000 | 12,622,000 |
Common stock, shares outstanding (in shares) | 12,510,000 | 12,622,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Statement [Abstract] | ||
Revenue, net | $ 200,164 | $ 213,398 |
Revenue from Contract with Customer, Product and Service [Extensible Enumeration] | Product [Member] | Product [Member] |
Cost of sales | $ 41,440 | $ 43,387 |
Gross profit | 158,724 | 170,011 |
Operating expenses: | ||
Commissions and incentives | 85,920 | 94,687 |
Selling, general and administrative | 68,472 | 71,065 |
Total operating expenses | 154,392 | 165,752 |
Operating income | 4,332 | 4,259 |
Other income (expense): | ||
Interest income, net | 430 | 198 |
Other expense, net | (412) | (458) |
Total other income (expense), net | 18 | (260) |
Income before income taxes | 4,350 | 3,999 |
Income tax expense | (1,413) | (1,459) |
Net income | $ 2,937 | $ 2,540 |
Net income per share: | ||
Basic (dollars per share) | $ 0.24 | $ 0.20 |
Diluted (dollars per share) | $ 0.23 | $ 0.20 |
Weighted-average shares outstanding: | ||
Basic (in shares) | 12,458 | 12,557 |
Diluted (in shares) | 12,986 | 12,567 |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustment | $ (555) | $ (238) |
Other comprehensive loss, net of tax: | (555) | (238) |
Comprehensive income | $ 2,382 | $ 2,302 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balances (in shares) at Jun. 30, 2022 | 12,493,000 | ||||
Beginning balances at Jun. 30, 2022 | $ 31,516 | $ 1 | $ 131,075 | $ (98,437) | $ (1,123) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 3,188 | 3,188 | |||
Common stock issued under employee stock purchase plan (in shares) | 76,000 | ||||
Common stock issued under employee stock purchase plan | $ 252 | 252 | |||
Common stock issued under equity award plans (in shares) | 273,000 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (47,000) | (47,000) | |||
Shares canceled or surrendered as payment of tax withholding and other | $ (201) | (201) | |||
Repurchase of company stock (in shares) | (200,000) | (173,000) | |||
Repurchase of company stock | $ (822) | (822) | |||
Cash dividends | (1,586) | (1,586) | |||
Foreign currency translation adjustment | (238) | (238) | |||
Net income | $ 2,540 | 2,540 | |||
Ending balances (in shares) at Jun. 30, 2023 | 12,622,000 | 12,622,000 | |||
Ending balances at Jun. 30, 2023 | $ 34,649 | $ 1 | 134,314 | (98,305) | (1,361) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 3,280 | 3,280 | |||
Common stock issued under employee stock purchase plan (in shares) | 64,000 | ||||
Common stock issued under employee stock purchase plan | $ 271 | 271 | |||
Common stock issued under equity award plans (in shares) | 1,007,000 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (200,000) | (206,000) | |||
Shares canceled or surrendered as payment of tax withholding and other | $ (1,221) | (1,221) | |||
Repurchase of company stock (in shares) | (1,000,000) | (977,000) | |||
Repurchase of company stock | $ (6,430) | (6,430) | |||
Cash dividends | (6,940) | (6,940) | |||
Foreign currency translation adjustment | (555) | (555) | |||
Net income | $ 2,937 | 2,937 | |||
Ending balances (in shares) at Jun. 30, 2024 | 12,510,000 | 12,510,000 | |||
Ending balances at Jun. 30, 2024 | $ 25,991 | $ 1 | $ 136,644 | $ (108,738) | $ (1,916) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 2,937 | $ 2,540 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 3,581 | 3,579 |
Stock-based compensation | 3,280 | 3,188 |
Non-cash operating lease expense | 1,287 | 1,748 |
Loss on disposal of fixed assets | 2 | 33 |
Amortization of deferred financing fees | 7 | 0 |
Deferred income tax | (1,277) | (1,702) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (1,424) | 1,558 |
Income tax receivable | (71) | 1,510 |
Inventory | 662 | 61 |
Prepaid expenses and other | 2,280 | 1,276 |
Other long-term assets | (55) | (157) |
Accounts payable | 2,301 | (3,982) |
Income tax payable | 202 | (453) |
Other accrued expenses | (176) | (770) |
Lease liabilities | (1,586) | (1,858) |
Other liabilities | 247 | 257 |
Net Cash Provided by Operating Activities | 12,197 | 6,828 |
Cash Flows from Investing Activities: | ||
Purchase of equipment | (2,245) | (3,067) |
Proceeds from sale of fixed assets | 0 | 8 |
Net Cash Used in Investing Activities | (2,245) | (3,059) |
Cash Flows from Financing Activities: | ||
Payment of deferred financing fees | (97) | 0 |
Repurchase of company stock | (6,430) | (822) |
Payment of cash dividends | (6,940) | (1,586) |
Shares purchased as payment of tax withholding and other | (1,221) | (201) |
Proceeds from common stock issued under employee stock purchase plan | 271 | 252 |
Net Cash Used in Financing Activities | (14,417) | (2,357) |
Foreign Currency Effect on Cash | (254) | 3 |
Increase (Decrease) in Cash and Cash Equivalents | (4,719) | 1,415 |
Cash and Cash Equivalents — beginning of period | 21,605 | 20,190 |
Cash and Cash Equivalents — end of period | 16,886 | 21,605 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 21 | 5 |
Cash paid for income taxes | $ 2,306 | $ 1,873 |
The Company
The Company | 12 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
The Company | The Company LifeVantage Corporation (the "Company" or "we" or "our" or "us") is a company focused on nutrigenomics, the study of how nutrition and naturally occurring compounds affect human 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 independent consultants as well as a financially rewarding commission-based direct sales opportunity to its independent consultants. 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, New Zealand, Singapore, and the Philippines. The Company sold its products in China through a China approved cross-border e-commerce business model until March 15, 2023, at which time the Company closed its e-commerce business in China. The Company engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, and skin and hair care products. The Company's line of scientifically validated dietary supplements includes its flagship Protandim ® family of products, LifeVantage® Omega+, ProBio, IC Bright ® , Rise AM, Reset PM, D3+, Daily Wellness, and PhysIQ Fat Burn and Prebiotic dietary supplements. TrueScience ® is the Company's line of skin and hair care products and Liquid Collagen. The Company also markets and sells Petandim ® , its companion pet supplement formulated to combat oxidative stress in dogs; and AXIO ® , its nootropic energy drink mixes. The Company was incorporated in Colorado in June 1988 under the name Andraplex Corporation. The Company changed its corporate name to Yaak River Resources, Inc. in January 1992, and subsequently changed it again in October 2004 to Lifeline Therapeutics, Inc. In October 2004 and March 2005, the Company acquired all of the outstanding common stock of Lifeline Nutraceuticals Corporation. In November 2006, the Company changed its name to LifeVantage Corporation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The Company prepares the 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, but not limited to, those related to inventory valuation and obsolescence, sales returns, income taxes and tax valuation reserves, transfer pricing methodology and positions, impairment of assets, stock-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 generally is its functional currency. All assets and liabilities are translated into U.S. Dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the consolidated balance sheets and as a component of comprehensive income. Transaction gains and losses are included in other expense, net in the consolidated statements of operations and comprehensive income. 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. Our financial instruments, consisting primarily of cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value due to their short-term nature. Cash and Cash Equivalents The Company considers only its monetary liquid assets with original maturities of three months or less to be cash and cash equivalents. Accounts Receivable The Company’s accounts receivable for the fiscal years ended June 30, 2024 and 2023 consist primarily of credit card receivables. Based on the Company’s verification process for customer credit cards and historical information available, management has determined that an allowance for doubtful accounts on credit card sales related to its customer sales as of June 30, 2024 or 2023 is not necessary. There was no b ad debt expense for the fiscal year ended June 30, 2024. Bad debt expense for the fiscal year ended June 30, 2023 was $0.1 million . Inventory As of June 30, 2024 and 2023, inventory consisted of (in thousands): As of June 30, 2024 2023 Finished goods $ 11,841 78.7 % $ 12,153 75.6 % Raw materials 3,214 21.3 % 3,920 24.4 % Total inventory $ 15,055 100.0 % $ 16,073 100.0 % 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 $1.3 million and $1.3 million at June 30, 2024 and 2023, respectively, related to obsolete and slow-moving inventory. Reserves of inventories consist of the following (in thousands): Years ended June 30, 2024 2023 Beginning balance $ 1,292 $ 1,253 Additions 901 1,199 Write-offs (892) (1,160) Ending balance $ 1,301 $ 1,292 Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: Years Equipment (includes computer hardware and software) 3 - 5 Furniture and fixtures 5 Vehicles 5 Leasehold improvements are depreciated over the shorter of estimated useful life of the related asset or the lease term. The cost of normal maintenance and repairs is charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the consolidated statements of operations and comprehensive income in other expense, net. Significant expenditures that increase the useful life of an asset are capitalized and depreciated over the estimated useful life of the asset. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Intangible Assets Intangible assets are stated at cost less accumulated amortization. Finite-lived intangible assets are amortized over their related useful lives, using a straight-line method, consistent with the underlying expected future cash flows related to the specific intangible asset. Finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances exist that indicate the carrying amount of an asset may not be recoverable. When indicators of impairment exist, an estimate of undiscounted net cash flows is used in measuring whether the carrying amount of the asset or related asset group is recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. Indefinite-lived intangible assets are not amortized; however, they are tested at least annually for impairment or more frequently if events or changes in circumstances exist that may indicate impairment. An impairment loss is recognized if the carrying amount of the asset exceeds its fair value. Annual impairment tests on intangible assets were completed for the fiscal years ended June 30, 2024 and 2023, resulting in no impairment charges. Impairment of Long-Lived Assets Pursuant to guidance established for impairment or disposal of assets, the Company assesses impairment whenever events or changes in circumstances indicate that the carrying amount of a long-lived asset may not be recoverable. When an assessment for impairment of long-lived assets, long-lived assets to be disposed of, and certain identifiable intangibles related to those assets is performed, the Company is required to compare the net carrying value of long-lived assets on the lowest level at which cash flows can be determined on a consistent basis to the related estimates of future undiscounted net cash flows for such assets. If the net carrying value exceeds the net cash flows, then an impairment is recognized to reduce the carrying value to the estimated fair value, generally equal to the future discounted net cash flow. For the fiscal years ended June 30, 2024 and 2023, management has concluded that there are no indications of impairment. Concentration of Credit Risk Accounting guidance for financial instruments requires disclosure of significant concentrations of credit risk regardless of the degree of such risk. Financial instruments with significant credit risk include cash and cash equivalents. At June 30, 2024, the Company had $12.6 million in cash accounts at one financial institution and $4.3 million i n other financial institutions. As of June 30, 2024 and 2023, and during the years then ended, the Company’s cash balances exceeded federally insured limits. Commissions and Incentives Commissions and incentives expenses are the Company’s most significant expenses and are classified as operating expenses. Commissions and incentives expenses include sales commissions paid to the Company's independent consultants, special incentives, costs for incentive trips and other rewards. Commissions and incentives expenses do not include any amounts the Company pays to its independent consultants for personal purchases. Commissions paid to independent consultants on personal purchases are considered a sales discount and are reported as a reduction to net revenue. Shipping and Handling Shipping and handling costs associated with inbound freight and freight out to customers, including independent consultants, are included in cost of sales. Shipping and handling fees charged to all customers are included in sales. Research and Development Costs The Company expenses all costs related to research and development activities as incurred. Research and development expenses for the fiscal years ended June 30, 2024 and 2023 were $0.7 million and $0.6 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 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 the 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. The Company estimates forfeitures based on historical information and other management assumptions. 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, including performance restricted stock units that include non-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. 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. Income Per Share Basic income per common share is computed by dividing 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 fiscal years ended June 30, 2024 and 2023, the effects of approximately 13,000 and 0.2 million common shares, respectively, issuable upon exercise of options and non-vested shares of restricted stock, are not included in the computations as their effect was anti-dilutive. The following is a reconciliation of net income per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands, except per share amounts): Years ended June 30, 2024 2023 Numerator: Net income $ 2,937 $ 2,540 Denominator: Basic weighted-average common shares outstanding 12,458 12,557 Effect of dilutive securities: Stock awards and options 528 10 Diluted weighted-average common shares outstanding 12,986 12,567 Net income per share, basic $ 0.24 $ 0.20 Net income per share, diluted $ 0.23 $ 0.20 Segment Information The Company operates in a single operating segment by selling products directly to customers through an international network of independent consultants 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 consultants. The Company manages its business primarily by managing its international network of independent consultants. The Company disaggregates revenue in two geographic regions: the Americas region and the Asia/Pacific and Europe region. See disaggregated revenue in Note 3. The following table presents the Company's long-lived assets for its most significant geographic markets (in thousands): June 30, 2024 2023 United States $ 19,216 $ 20,504 Japan $ 1,925 $ 354 New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), expanding segment disclosure requirements. The amendments require enhanced disclosure for certain segment items and required disclosure on how management uses reported measures to assess segment performance. The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments. ASU 2023-07 is effective for the Company’s annual periods beginning July 1, 2024, and for interim periods beginning July 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). The guidance requires disclosure of disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s annual periods beginning July 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures. Other recently issued accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future financial statements. |
Revenue
Revenue | 12 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue 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+, ProBio, IC Bright ® , Daily Wellness, Rise AM, Reset PM, D3+, and PhysIQ Fat Burn and Prebiotic dietary supplements, TrueScience ® skin and hair care products and Liquid Collagen, Petandim ® , and AXIO ® nootropic energy drink mixes. 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 consultants to attend events that it holds. 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, adjusted for the probability of the tickets being redeemed for attendance at a future event. 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 launched its Rewards Circle loyalty program in the United States, Australia, New Zealand, and Japan in March 2023 and in Canada, Europe, and Mexico in February 2024. Contract liabilities, recorded as deferred revenue, include these loyalty program credit deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as credits are redeemed for additional products at a later date. The Company also records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. 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. Deferred revenue is included in accrued expenses in the consolidated balance sheets. The balance of deferred revenue related to contract liabilities was $0.9 million and $0.8 million as of June 30, 2024 and 2023, respectively. The contract liabilities impact to revenue for the years ended June 30, 2024 and 2023 was a decrease of $26,000 and $0.7 million, respectively. 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. 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 June 30, 2024 and 2023, the Company’s return liability reserve, net was $0.1 million and $0.1 million, respectively. Reserves for sales returns consist of the following (in thousands): Years ended June 30, 2024 2023 Beginning balance $ 129 $ 131 Additions 1,622 1,978 Returns (1,618) (1,980) Ending balance $ 133 $ 129 Geographic Information The Company reports revenue in two geographic regions: the Americas region and the Asia/Pacific and Europe region. The following table presents the Company's revenue disaggregated by these two geographic regions (in thousands): Years ended June 30, 2024 2023 Americas $ 152,907 $ 155,361 Asia/Pacific & Europe 47,257 58,037 Total revenue $ 200,164 $ 213,398 Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): Years ended June 30, 2024 2023 United States $ 145,679 $ 148,522 Japan $ 26,989 $ 32,082 Major Products The Company's revenue is largely attributed to two product lines, Protandim ® and TrueScience ® , each of which accounted for more than 10% of total revenue for each of the fiscal years ended June 30, 2024 and 2023. On a combined basis, the Protandim ® and TrueScience ® product lines represent approximately 80.1% and 79.3% of the Company's total revenue for the fiscal years ended June 30, 2024 and 2023, respectively. The following table shows revenue by major product line for the fiscal years ended June 30, 2024 and 2023: Years ended June 30, 2024 2023 Protandim ® product line $ 104,135 52.0 % $ 119,720 56.1 % TrueScience ® product line 56,252 28.1 % 49,494 23.2 % Other 39,777 19.9 % 44,184 20.7 % Total $ 200,164 100.0 % $ 213,398 100.0 % |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | Property and Equipment, Net Property and equipment, net consist of (in thousands): June 30, 2024 2023 Equipment (includes computer hardware and software) $ 15,766 $ 16,976 Furniture and fixtures 1,466 1,476 Leasehold improvements 5,040 4,734 Vehicles 51 51 Accumulated depreciation (14,510) (14,151) Total property and equipment, net $ 7,813 $ 9,086 Depreciation expense totaled $3.4 million and $3.4 million for the fiscal years ended June 30, 2024 and 2023, respectively. |
Intangible Assets, Net
Intangible Assets, Net | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets, Net | Intangible Assets, Net Intangible assets, net consist of (in thousands): June 30, 2024 2023 Patent costs $ 2,330 $ 2,330 Accumulated amortization (2,252) (2,120) Total finite-lived intangible assets, net 78 210 Trademarks and other indefinite-lived intangible assets 245 245 Total intangible assets, net $ 323 $ 455 Amortization expense totaled $0.1 million and $0.1 million for the fiscal years ended June 30, 2024 and 2023, respectively. As of June 30, 2024, the remaining weighted-average amortization period for finite-lived intangible assets was 0.75 years. Annual estimated amortization expense is expected to approximate $0.1 million in the succeeding fiscal year. |
Other Accrued Expenses
Other Accrued Expenses | 12 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Other Accrued Expenses | Other Accrued Expenses Other accrued expenses consist of (in thousands): June 30, 2024 2023 Accrued incentive compensation $ 1,521 $ 3,060 Accrued severance 90 42 Other taxes payable 2,258 1,730 Accrued payable to vendors 434 720 Deferred revenue 860 834 Accrued incentives and promotions to consultants 1,454 758 Accrued other expenses 1,257 788 Total other accrued expenses $ 7,874 $ 7,932 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On March 30, 2016, t he Company entered into a loan agreement (the "2016 Loan Agreement") and a security agreement (the "2016 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 2016 Security Agreement, and together with the amendments described below, the "2016 Credit Facility"). During the fiscal year ended June 30, 2020, the Company repaid, in full, the balance of the 2016 Term Loan. On May 4, 2018 and February 1, 2019, the Company entered into loan modification agreements (“Amendment No. 1” and “Amendment No. 2”, respectively). These loan modification agreements amended certain financial covenants and the available borrowing amount under the 2016 Revolving Loan. On April 1, 2021, the Company entered into a loan modification agreement ("Amendment No. 3"), which amended the 2016 Credit Facility. Amendment No. 3, with an available borrowing amount of $5.0 million, a revised maturity date from March 31, 2021 to March 31, 2024, and a modified variable interest rate based on the one-month United States Treasury Rate, plus a margin of 2.00%, with an interest rate floor of 0.00%. Amendment No. 3 also revised the debt (total liabilities) to tangible net worth ratio (as defined in Amendment No. 3) covenant to require that the Company maintain this ratio not in excess of 2.00 to 1.00, measured as of the end of each fiscal quarter, and revised the definition and calculation of the minimum fixed charge coverage ratio (as defined in Amendment No. 3). There were no other changes to the minimum fixed charge coverage ratio of 1.10 to 1.00 or the minimum working capital of $6.0 million as set forth in previous amendments. The Company entered into a loan modification agreement ("Amendment No. 4"), effective September 30, 2022, which further amended the 2016 Credit Facility. Amendment No. 4 revised the calculation of the minimum fixed charge coverage ratio (as defined in Amendment No. 4) and allowed the Company to declare and pay dividends, up to $500,000 per quarter, through September 30, 2023. There were no other changes to the covenants or revolving loan facility as set forth in Amendment No. 3. If the Company borrowed under the 2016 Revolving Loan, interest would have been payable quarterly in arrears on the last day of each fiscal quarter. On August 28, 2023, the Company received approval, without modifying Amendment No. 4, to declare and pay a one-time cash dividend of $0.40 per share of common stock, to be paid on September 22, 2023. The Company also received approval to declare and pay dividends, up to $750,000, per quarter, through September 30, 2024. On March 31, 2024, the 2016 Credit Facility reached the maturity date and was terminated. On April 12, 2024, the Company entered into a Loan Agreement (the “Loan Agreement”) with Bank of America, N.A., as Lender (the “Lender”). In connection with the Loan Agreement and on the same date, the Company, Lifeline Nutraceuticals Corporation, as Guarantor (the “Guarantor”), and the Lender also entered into a Continuing and Unconditional Guaranty (the “Continuing and Unconditional Guaranty”) and a Security and Pledge Agreement (the “Security and Pledge Agreement”). The Loan Agreement provides for a revolving line of credit in an aggregate principal amount not to exceed $5.0 million (the “Line of Credit” and collectively with the Loan Agreement, Continuing and Unconditional Guaranty, and the Security and Pledge Agreement, the “2024 Credit Facility”). In the event the Company borrows under the Line of Credit, interest will be payable commencing May 31, 2024, and then on the last day of each month thereafter until payment in full of all principal outstanding under the Line of Credit, with all unpaid principal and interest due on April 12, 2027 (the “Expiration Date”). The Line of Credit will bear interest at a rate per year equal to the sum of (i) the greater of the Term SOFR Daily Floating Rate (as defined in the Loan Agreement) or 0.00% , plus (ii) 2.00%. Amounts under the Line of Credit may be repaid and re-borrowed from time to time until the Expiration Date. As of June 30, 2024, the effective interest rate is 7.34%. The Company’s obligations under the Loan Agreement are secured by a security interest in substantially all of the assets of the Company and the Guarantor, and by a pledge of the membership interests of the Company's subsidiaries, as further provided for in the Security and Pledge Agreement. Pursuant to the Continuing and Unconditional Guaranty, the Guarantor guarantees and promises to pay promptly to the Lender all indebtedness of the Company when due. The Loan Agreement contains customary covenants, both affirmative and negative, that, among other things, restrict the Company’s ability to deal with the Company's assets outside of the ordinary course, incur additional indebtedness, grant liens on the Company's assets, make certain investments, purchase or otherwise acquire all or substantially all the assets or equity interests of other companies, and enter into consolidations, mergers or other combinations. The Loan Agreement requires that the Company maintain specified financial ratios and satisfy certain financial condition tests. The Loan Agreement contains certain customary events of default, including, among other things, failure of the Company to make required payments under the Loan Agreement, certain breaches of representations made by the Company or the Guarantor, insolvency or bankruptcy of the Company or the Guarantor, failure to have an enforceable first lien or security interest in any property given as security for the Loan Agreement, or failure of the Company to comply with covenants set forth in the Loan Agreement. If an event of default occurs under the Loan Agreement, the obligation of the Lender to make any additional credit available to the Company may be terminated and the amounts outstanding may become immediately due and payable in the discretion of the Lender, provided that in the event of insolvency or bankruptcy of the Company or the Guarantor, all debts outstanding under the Loan Agreement will automatically become due and payable. Upon the occurrence of any default or after maturity, all amounts outstanding under the Loan Agreement will, at the option of the Lender, bear interest at a rate which is 2.00% higher than the rate of interest otherwise provided under the Loan Agreement. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 30, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the fiscal years ended June 30, 2024 and 2023, the Company issued zero shares of common stock as a result of the exercise of options. During the fiscal years ended June 30, 2024 and 2023, the Company issued 1.0 million and 0.3 million shares, respectively, under the Company's equity incentive plans. During the fiscal years ended June 30, 2024 and 2023, 0.2 million and 47,000 shares, respectively, of restricted stock were canceled or surrendered as payment of tax withholding upon vesting. During the fiscal years ended June 30, 2024 and 2023 , the Company sold 0.1 million and 0.1 million shares under its 2019 Employee Stock Purchase Plan, respectively. On November 27, 2017, the Company's board approved a stock repurchase program, which was subsequently amended on February 1, 2019. Under the currently approved stock repurchase program, the Company is authorized to purchase up to $60 million through December 31, 2026. The stock repurchase program permits the Company to purchase shares from time to time through a variety of methods, including in the open market, through privately negotiated transactions or other means as determined by the Company's management, in accordance with applicable securities laws. As part of the stock repurchase program, the Company may enter 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 would be completed in accordance with the terms of the plan, including specified price, volume, and timing conditions. T he stock repurchase program may be suspended or discontinued at any time. During the year ended June 30, 2024, the Company purchased 1.0 million shares of its common stock at an aggregate purchase price of $6.4 million under this repurchase program. During the fiscal year ending June 30, 2023, the Company purchased 0.2 million shares of its common stock at an aggregate purchase price of $0.8 million under this repurchase program. At June 30, 2024, there is $20.4 million remaining under this stock repurch ase program. On August 30, 2023, the board approved a stockholder rights agreement (the “Rights Plan”) and declared a dividend of one right for each outstanding share of common stock to stockholders of record on September 11, 2023. Each right entitles holders to purchase one newly issued share of preferred stock at an exercise price of $20 per right, subject to adjustment. Initially, the rights are not exercisable and trade with shares of the Company’s common stock. In general, the rights become exercisable following a public announcement that a person acquires 12% (or, in the case of passive investors, 20%) or more of the outstanding shares of the Company’s common stock. If a person becomes an acquiring person, each holder of rights (except the acquiring person) will have the right to purchase, for the purchase price, a number of shares of the Company’s common stock at a 50% discount to the then-current trading price. Rather than allowing the rights to be exercised in those circumstances, the board may exchange each right, other than the rights owned by the acquiring person, for a share of the Company’s common stock. The agreement provides for exceptions and additional terms for other certain situations and circumstances. The Rights Plan is intended to protect the interests of the Company and its stockholders by reducing the likelihood that any entity, person or group gains control of the Company through open-market accumulation or other means without payment of an adequate control premium and expires August 28, 2024. There is currently no impact to the Company’s Consolidated Financial Statements. The Company’s Certificate of Incorporation authorizes the designation and issuance of shares of preferred stock. However, as of June 30, 2024, none have been issued nor have any rights or preferences been assigned to the preferred stock by the Company’s board. Dividends The Company paid a one-time cash dividend of $0.40 per share of common stock to stockholders of record in September 2023, quarterly cash dividends of $0.035 per share of common stock to stockholders of record in September 2023, December 2023 and March 2024, and $0.04 per share of common stock in June 2024 which were in the aggregate amount of $6.9 million, or 0.545 per share of common stock for the fiscal year ended June 30, 2024 . For the fiscal year ended June 30, 2023, the Company paid to stockholders quarterly cash dividends totaling $1.6 million, or $0.125 per share of common stock. The declaration of dividends is subject to the discretion of the board and will depend upon various factors, including the Company's earnings, financial condition, restrictions imposed by any indebtedness that may be outstanding, cash requirements, future prospects, and other factors deemed relevant by the board. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Compensation | Stock-Based Compensation Long-Term Incentive Plans Equity-Settled Plans 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. T he initial share pool approved was 650,000 shares. On November 9, 2023, the stockholders approved amendments to the 2017 Plan to increase the number of shares of the Company's common stock that are available for issuance under the 2017 plan by 1,138,000 shares. As of June 30, 2024, a maximum of 5.1 million shares of the Company's common stock can be issued under the 2017 Plan in connection with the grant of awards which is calculated as the sum of (i) 4,630,000 shares and (ii) up to 475,000 shares previously reserved for issuance under the Company's prior 2010 Long Term Incentive Plan, including shares returned upon cancellation, termination or forfeiture of awards that were previously granted under that plan. Outstanding stock options awarded under the 2017 Plan have exercise prices of $4.44 per share, vest over a three year back to the 2017 Plan. As of June 30, 2024, under the 2017 Plan, there were stock option awards outstanding, net of awards expired, for an aggregate of 0.1 million shares of the Company’s common stock. Employee Stock Purchase Plan General. The Company’s 2019 Employee Stock Purchase Plan ("ESPP") was adopted by the board in September 2018 and approved by its stockholders in November 2018. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. Share Reserve. The Company has reserved 0.4 million shares of its common stock for issuance under the ESPP. As of June 30, 2024, 0.1 million 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 the compensation, and up to a maximum of 3,000 shares may be purchased by an employee 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 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 fiscal years ended June 30, 2024 and 2023, 0.1 million and 0.1 million shares of common stock were purchased under the ESPP, respectively. Stock-Based Compensation In accordance with accounting guidance for stock-based compensation, payments in equity instruments for goods or services are accounted for by the fair value method. For the fiscal year ended June 30, 2024 and 2023, stock-based compensation of $3.3 million and $3.2 million, respectively, was reflected as an increase to additional paid in capital. At June 30, 2024, there was $2.5 million of unrecognized compensation cost related to non-vested stock-based compensation arrangements under the 2017 Plan, based on management's estimate of the shares that will ultimately vest. The Company expects to recognize such costs over a weighted-average period of 1.44 years. Stock Options There were no stock option grants during the fiscal years ended June 30, 2024 and 2023. The following is a summary of stock option activity for the fiscal years ended June 30, 2024 and 2023: Options (in thousands) Weighted Weighted Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2022 92 $ 6.23 Granted — $ — Exercised — — $ — Forfeited — — Expired or Canceled (20) 12.46 Outstanding at June 30, 2023 72 4.44 Granted — $ — Exercised — — $ — Forfeited — — Expired or Canceled — — Outstanding at June 30, 2024 72 4.44 3.59 $ 142 Exercisable at June 30, 2024 72 $ 4.44 3.59 $ 142 Restricted Stock Awards The following is a summary of restricted stock award activity during the fiscal years ended June 30, 2024 and 2023: Shares Weighted Average Grant Date Fair Value Nonvested at June 30, 2022 66 $ 6.85 Granted 117 $ 3.85 Vested (66) 6.85 Forfeited — — Nonvested at June 30, 2023 117 3.85 Granted (1) 392 $ 4.74 Vested (117) 3.85 Forfeited — — Nonvested at June 30, 2024 392 4.74 (1) Includes 125,732 shares of restricted stock that were granted in exchange for the cancellation of 48,026 shares of stock units and 77,706 shares of performance restricted stock units on November 6, 2023. The total vesting date fair value of restricted shares that vested during the fiscal years ended June 30, 2024 and 2023 w as $0.7 million and $0.3 million, respectively. Restricted Stock Units The following is a summary of restricted stock units activity during the fiscal years ended June 30, 2024 and 2023: Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2022 334 $ 7.36 Granted 417 $ 4.19 Vested (156) 8.04 Forfeited (56) 6.20 Nonvested at June 30, 2023 539 4.90 Granted 214 $ 4.90 Vested (331) 5.05 Forfeited (1) (84) 4.48 Nonvested at June 30, 2024 338 4.86 (1) Includes 48,206 shares of restricted stock units that were canceled in exchange for restricted stock awards on November 6, 2023. The total vesting date fair value of restricted stock units that vested during the fiscal years ended June 30, 2024 and 2023 was $1.9 million and $0.6 million, respectively. Performance Restricted Stock Units During the fiscal years ended June 30, 2024 and 2023, the Company awarded performance restricted stock units (the "FY 2024 PRSUs" and "FY 2023 PRSUs," respectively) to certain employees (the "Recipients"). Each performance restricted stock unit represents a contingent right for the Recipients to receive a distribution of shares of common stock of the Company equal to 0% to 200% of the target number of performance restricted stock units subject to the award. The actual number of shares distributed will be based on the Company's achievement of specified financial performance metrics. For FY 2024 PRSUs, the performance period for 50% of the FY 2024 PRSUs ended on June 30, 2024, the performance period for 30% of the FY 2024 PRSUs ends on June 30, 2025, and the performance period for the remaining 20% of the FY 2024 PRSUs ends on June 30, 2026. The financial performance metrics for the fiscal year ended June 30, 2024, were deemed achieved at the 0% achievement level. The performance period for 100% of the FY 2023 PRSUs ended on June 30, 2023, and were deemed achieved at the 133.13% achievement level. The FY 2024 PRSUs and FY 2023 PRSUs will vest only to the extent the specified financial performance criteria are achieved and subject to the Recipient’s continued service with the Company, as follows: (i) a portion of the earned award will vest on the first anniversary of the grant date and (ii) an additional portion of the earned award will vest thereafter in a series of quarterly installments. The fair values of the performance restricted stock units are based on the grant date fair value which is the closing price of the Company's common stock on the date of grant. The following is a summary of performance restricted stock units activity during the fiscal years ended June 30, 2024 and 2023: Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2022 1 $ 15.2 Granted (1) 518 $ 4.24 Vested (1) 15.2 Forfeited (26) 4.27 Nonvested at June 30, 2023 492 4.24 Granted 350 $ 4.89 Vested (284) 4.24 Forfeited (2) (274) 4.68 Nonvested at June 30, 2024 284 4.62 (1) Includes shares added based on achievement of performance goals in excess of target. (2) Includes 77,706 shares of performance restricted stock units that were canceled in exchange for restricted stock awards on November 6, 2023. The total vesting date fair value of performance restricted stock units that vested during the fiscal years ended June 30, 2024 and 2023 was approximately $1.6 million and $4,000 |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net Other expense, net consists of the following (in thousands): Years ended June 30, 2024 2023 Foreign currency transaction loss, net $ (429) $ (373) Other income (expense), net 17 (85) Total other expense, net $ (412) $ (458) |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The income tax expense for the fiscal years ended June 30, 2024 and 2023 consists of the following (in thousands): Years ended June 30, 2024 2023 Income Before Income Taxes: Domestic $ 2,940 $ 2,464 International 1,410 1,535 $ 4,350 $ 3,999 Current Taxes: Federal $ 1,457 $ 2,012 State 246 436 Foreign 984 686 Total Current Income Tax Provision $ 2,687 $ 3,134 Deferred Taxes: Federal $ (1,281) $ (1,400) State (151) (303) Foreign 158 28 Total Deferred Income Tax Provision $ (1,274) $ (1,675) Net Income Tax Provision $ 1,413 $ 1,459 The effective income tax rate for the fiscal years ended June 30, 2024 and 2023 differs from the U.S. Federal statutory income tax rate due to the following: Years ended June 30, 2024 2023 Federal statutory income tax rate 21.0 % 21.0 % State income taxes, net of federal benefit 1.2 % 0.8 % Foreign tax rate difference 8.0 % 8.3 % Tax return to provision true-up (4.3) % 3.2 % Limit on future stock compensation due to 162(m) 2.8 % 4.3 % Foreign withholding tax 2.6 % 0.4 % Other differences 1.6 % (0.3) % Revalue of deferred for change in federal tax rate 0.0 % 0.1 % Permanent differences: — stock-based compensation (8.3) % 5.8 % — current year section 162(m) limitation 7.0 % 0.0 % — foreign derived intangible income deduction (0.7) % (5.8) % — tax credits (12.1) % (5.3) % — meals and entertainment 1.3 % 0.8 % — removal of additional permanent reinvestment assertions 1.2 % 0.3 % — change in uncertain tax positions 1.2 % 0.0 % — accrual for foreign tax audits 7.7 % 0.0 % — other permanent differences 1.8 % 2.1 % Change in valuation allowance 0.5 % 0.7 % Net income tax provision 32.5 % 36.5 % The components of the deferred tax assets and liabilities as of June 30, 2024 and 2023 are as follows (in thousands): June 30, 2024 2023 Deferred tax assets: Federal, state, and foreign net operating loss carryovers $ 271 $ 250 Stock option compensation 360 549 Section 174 costs 2,578 955 Lease liability 3,223 3,100 Accrued vacation, allowance for returns, bonuses & other 2,119 3,005 Gross deferred tax asset $ 8,551 $ 7,859 Deferred tax liabilities: Patents and trademarks $ (30) $ (66) Property & equipment (798) (1,571) Right of use asset (2,263) (2,057) Other (472) (470) Gross deferred tax liabilities (3,563) (4,164) Less: valuation allowance (720) (704) Deferred tax assets, net $ 4,268 $ 2,991 The Company has adopted accounting guidance for uncertain tax positions ("UTPs") which provides that in order to recognize an uncertain tax benefit, the taxpayer must be more likely than not of sustaining the position. The measurement of the benefit is calculated as the largest amount that is more than 50% likely to be realized upon recognition of the benefit. In the fiscal year ending June 30, 2024, the Company began recording a withholding tax obligation on its rebalanced commission payments to the U.S. parent company it has not obtained treaty rates for. The Company does not believe it will obtain treaty rates, but will also not be able to take a foreign tax credit at this time. Since the Company believes it is unlikely to receive treaty benefits, it has recorded the taxes, the foreign tax credit on those taxes, and a corresponding UTP against the foreign tax credit. The UTP totaling $0.1 million was recorded against the foreign tax credit as of June 30, 2024. If the Company is successful with its treaty benefit application or receives an opinion through appeals, competent authority, etc., it will remove the UTP at that time. The UTP recorded is the foreign taxes that will not be credited, but reduced by the benefit the Company will receive from deducting the taxes. The Company is also currently undergoing income tax audits in foreign jurisdictions. For the fiscal year ending June 30, 2024, the Company accrued a total $0.3 million related to foreign income tax audits. At this time, the Company believes this amount reflects the amount that is has more than 50% likelihood to be paid upon settlement including interest and penalties. The Company will continue to evaluate as the audits progress. The Company has reserved $0.4 million for taxes related to the UTPs as of June 30, 2024. There were no changes to the liability for UTPs for the fiscal year ended June 30, 2023. There were no unrecognized tax benefits for the fiscal years ended June 30, 2024 and 2023. During fiscal 2022, the Company removed its permanent reinvestment assertion in Japan. In fiscal 2024, the Company also removed its permanent reinvestment assertions in Taiwan and Australia and recorded the tax effects of that change. For Taiwan, the Company recorded provisions for withholding tax that it will pay to Taiwan upon payment of dividends. The Company did not record any unborn foreign tax credit related to Taiwan withholding tax. The Company believes any withholding tax paid on dividends will be ineligible for a foreign tax credit. The Company did not record any withholding tax to Australia upon the payment of dividends. There is a 15% withholding rate on unfranked dividends between Australia and Singapore, but the Company does not anticipate paying any unfranked dividends, so it has not recorded any withholding tax to Australia. The Company has also recorded income taxes to various states when the cash is repatriated from Taiwan and Australia. The Company did not record any federal income tax implications because any withholding tax on dividends will be ineligible for a foreign tax credit. The tax years open for examination by the Internal Revenue Service (“IRS”) include returns for fiscal years June 30, 2021 through present and the open tax years by state tax authorities include returns for fiscal years June 30, 2020 through present. In addition, the IRS and state tax authorities may examine net operating losses ("NOLs") for any previous years if utilized by the Company. The change in the valuation allowance were as follows (in thousands): Years ended June 30, 2023 2022 Beginning balance $ 704 $ 675 Increases 16 29 Ending balance $ 720 $ 704 The change in valuation allowance during the fiscal year ended June 30, 2024 related to current year income in entities with a full valuation allowance along with a change to the United States valuation allowance based on the Company converting from a blended rate to a state-by-state provision. During the fiscal year ended June 30, 2023, the change in valuation allowance related to current year income in entities with a full valuation allowance along with a change to the United States valuation allowance based on updated projections and changes to the blended rate. As of June 30, 2024, the Company had utilized all of its Federal NOL carry-forwards. As of June 30, 2024, state NOLs were $5.6 million and foreign NOLs were $0.4 million. The total recognized tax benefit from settlement of stock-based awards for the fiscal years ending June 30, 2024 and 2023, was $0.2 million and $0.2 million, respectively. The Company conducts its business globally. As a result, the Company and its subsidiaries file income tax returns in the U.S. federal jurisdiction and various state and foreign jurisdictions, and are subject to examination for the open tax years of June 30, 2020 through June 30, 2024. |
Leases
Leases | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for current corporate offices and certain equipment. These leases have remaining terms of approximately one In July 2023, LifeVantage Japan entered into an operating lease agreement with Sumitomo Mitsui Trust Bank, Limited, for a new office located in the Shinagawa Grand Central Tower in Tokyo, Japan. The lease is for approximately 5,200 square feet and has a lease term from July 1, 2023 through June 30, 2026 with the option to renew for an additional two years. Lease payments began in November 2023 totaling approximately $28,000 per month, or $0.3 million per year. During the fiscal year ended June 30, 2024, the Company also entered into new operating leases with previous lessors in Thailand and Taiwan and extended the operating lease Philippines. Each of these leases have a lease term of three years, expiring in fiscal year 2027. The components of lease expense for the fiscal years ended June 30, 2024 and 2023, were as follows: Years ended June 30, 2024 2023 Operating lease expense Operating lease cost $ 1,913 $ 2,537 Variable lease cost 174 283 Short-term lease cost 47 76 Total lease expense $ 2,134 $ 2,896 Supplemental cash flow information related to operating leases was as follows (in thousands): June 30, 2024 June 30, 2023 Operating cash outflows from operating leases $ 2,187 $ 2,973 Right-of-use assets obtained in exchange for lease obligations $ 2,475 $ — Maturity of lease liabilities at June 30, 2024 are as follows (in thousands): Year ended June 30, Amount 2025 $ 2,111 2026 2,154 2027 2,151 2028 2,037 2029 1,772 Thereafter 4,622 Total 14,847 Less: imputed interest (1,235) Present value of lease liabilities $ 13,612 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024, 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 publicity or resolution of one or more of these contingencies. Whether any losses finally determined in any claim, action, investigation or proceeding or publicity related to such 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. Other Matters . The Company may become involved in other litigation and regulatory matters incidental to its business and the matters disclosed in this annual report on Form 10-K, including, but not limited to, product liability claims, regulatory actions, employment matters and commercial disputes. The Company intends to defend itself in any such matters and does not currently |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 2,937 | $ 2,540 |
Insider Trading Arrangements
Insider Trading Arrangements | 12 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation |
Use of Estimates | Use of Estimates The Company prepares the 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, but not limited to, those related to inventory valuation and obsolescence, sales returns, income taxes and tax valuation reserves, transfer pricing methodology and positions, impairment of assets, stock-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 generally is its functional currency. All assets and liabilities are translated into U.S. Dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the consolidated balance sheets and as a component of comprehensive income. Transaction gains and losses are included in other expense, net in the consolidated statements of operations and comprehensive income. |
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. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers only its monetary liquid assets with original maturities of three months or less to be cash and cash equivalents. |
Accounts Receivable | Accounts Receivable |
Inventories | Inventories are carried at the lower of cost or net realizable value, using the first-in, first-out method |
Property and Equipment | Property and Equipment Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: Years Equipment (includes computer hardware and software) 3 - 5 Furniture and fixtures 5 Vehicles 5 Leasehold improvements are depreciated over the shorter of estimated useful life of the related asset or the lease term. The cost of normal maintenance and repairs is charged to expense as incurred. When an asset is sold or otherwise disposed of, the cost and associated accumulated depreciation are removed from the accounts and the resulting gain or loss is recognized in the consolidated statements of operations and comprehensive income in other expense, net. Significant expenditures that increase the useful life of an asset are capitalized and depreciated over the estimated useful life of the asset. Property and equipment are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. |
Intangible Assets | Intangible Assets Intangible assets are stated at cost less accumulated amortization. Finite-lived intangible assets are amortized over their related useful lives, using a straight-line method, consistent with the underlying expected future cash flows related to the specific intangible asset. Finite-lived intangible assets are reviewed for impairment whenever events or changes in circumstances exist that indicate the carrying amount of an asset may not be recoverable. When indicators of impairment exist, an estimate of undiscounted net cash flows is used in measuring whether the carrying amount of the asset or related asset group is recoverable. Measurement of the amount of impairment, if any, is based upon the difference between the asset’s carrying value and estimated fair value. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets |
Concentration of Credit Risk | Concentration of Credit Risk |
Commissions and Incentives | Commissions and Incentives Commissions and incentives expenses are the Company’s most significant expenses and are classified as operating expenses. Commissions and incentives expenses include sales commissions paid to the Company's independent consultants, special incentives, costs for incentive trips and other rewards. Commissions and incentives expenses do not include any amounts the Company pays to its independent consultants for personal purchases. Commissions paid to independent consultants on personal purchases are considered a sales discount and are reported as a reduction to net revenue. |
Shipping and Handling, Revenue And Deferred Revenue | Shipping and Handling Shipping and handling costs associated with inbound freight and freight out to customers, including independent consultants, are included in cost of sales. Shipping and handling fees charged to all customers are included in sales. 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+, ProBio, IC Bright ® , Daily Wellness, Rise AM, Reset PM, D3+, and PhysIQ Fat Burn and Prebiotic dietary supplements, TrueScience ® skin and hair care products and Liquid Collagen, Petandim ® , and AXIO ® nootropic energy drink mixes. 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 consultants to attend events that it holds. 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, adjusted for the probability of the tickets being redeemed for attendance at a future event. 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 launched its Rewards Circle loyalty program in the United States, Australia, New Zealand, and Japan in March 2023 and in Canada, Europe, and Mexico in February 2024. Contract liabilities, recorded as deferred revenue, include these loyalty program credit deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as credits are redeemed for additional products at a later date. The Company also records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. 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. Deferred revenue is included in accrued expenses in the consolidated balance sheets. The balance of deferred revenue related to contract liabilities was $0.9 million and $0.8 million as of June 30, 2024 and 2023, respectively. The contract liabilities impact to revenue for the years ended June 30, 2024 and 2023 was a decrease of $26,000 and $0.7 million, respectively. |
Research and Development Costs | Research and Development Costs |
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 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 the 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 | Stock-Based Compensation The Company recognizes stock-based compensation by measuring the cost of services to be rendered based on the grant date fair value of the equity award. The Company recognizes stock-based compensation, net of any estimated forfeitures, over the period an employee is required to provide service in exchange for the award, generally referred to as the requisite service period. The Company estimates forfeitures based on historical information and other management assumptions. 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, including performance restricted stock units that include non-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. 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 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 |
New Accounting Pronouncements | New Accounting Pronouncements In November 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (ASU 2023-07), expanding segment disclosure requirements. The amendments require enhanced disclosure for certain segment items and required disclosure on how management uses reported measures to assess segment performance. The amendments do not change how segments are determined, aggregated, or how thresholds are applied to determine reportable segments. ASU 2023-07 is effective for the Company’s annual periods beginning July 1, 2024, and for interim periods beginning July 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures ("ASU 2023-09"). The guidance requires disclosure of disaggregated income taxes paid, prescribes standardized categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures. ASU 2023-09 is effective for the Company’s annual periods beginning July 1, 2025, with early adoption permitted. The Company is currently evaluating the potential effect that the updated standard will have on its financial statement disclosures. Other recently issued accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future financial statements. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Components of Inventory | As of June 30, 2024 and 2023, inventory consisted of (in thousands): As of June 30, 2024 2023 Finished goods $ 11,841 78.7 % $ 12,153 75.6 % Raw materials 3,214 21.3 % 3,920 24.4 % Total inventory $ 15,055 100.0 % $ 16,073 100.0 % Reserves of inventories consist of the following (in thousands): Years ended June 30, 2024 2023 Beginning balance $ 1,292 $ 1,253 Additions 901 1,199 Write-offs (892) (1,160) Ending balance $ 1,301 $ 1,292 |
Schedule of Property and Equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: Years Equipment (includes computer hardware and software) 3 - 5 Furniture and fixtures 5 Vehicles 5 Property and equipment, net consist of (in thousands): June 30, 2024 2023 Equipment (includes computer hardware and software) $ 15,766 $ 16,976 Furniture and fixtures 1,466 1,476 Leasehold improvements 5,040 4,734 Vehicles 51 51 Accumulated depreciation (14,510) (14,151) Total property and equipment, net $ 7,813 $ 9,086 |
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): Years ended June 30, 2024 2023 Numerator: Net income $ 2,937 $ 2,540 Denominator: Basic weighted-average common shares outstanding 12,458 12,557 Effect of dilutive securities: Stock awards and options 528 10 Diluted weighted-average common shares outstanding 12,986 12,567 Net income per share, basic $ 0.24 $ 0.20 Net income per share, diluted $ 0.23 $ 0.20 |
Schedule of Long-lived Assets by Geographic Areas | The following table presents the Company's long-lived assets for its most significant geographic markets (in thousands): June 30, 2024 2023 United States $ 19,216 $ 20,504 Japan $ 1,925 $ 354 |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | Reserves for sales returns consist of the following (in thousands): Years ended June 30, 2024 2023 Beginning balance $ 129 $ 131 Additions 1,622 1,978 Returns (1,618) (1,980) Ending balance $ 133 $ 129 Years ended June 30, 2024 2023 Americas $ 152,907 $ 155,361 Asia/Pacific & Europe 47,257 58,037 Total revenue $ 200,164 $ 213,398 Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): Years ended June 30, 2024 2023 United States $ 145,679 $ 148,522 Japan $ 26,989 $ 32,082 |
Schedule of Revenues by Major Product Line | The following table shows revenue by major product line for the fiscal years ended June 30, 2024 and 2023: Years ended June 30, 2024 2023 Protandim ® product line $ 104,135 52.0 % $ 119,720 56.1 % TrueScience ® product line 56,252 28.1 % 49,494 23.2 % Other 39,777 19.9 % 44,184 20.7 % Total $ 200,164 100.0 % $ 213,398 100.0 % |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives: Years Equipment (includes computer hardware and software) 3 - 5 Furniture and fixtures 5 Vehicles 5 Property and equipment, net consist of (in thousands): June 30, 2024 2023 Equipment (includes computer hardware and software) $ 15,766 $ 16,976 Furniture and fixtures 1,466 1,476 Leasehold improvements 5,040 4,734 Vehicles 51 51 Accumulated depreciation (14,510) (14,151) Total property and equipment, net $ 7,813 $ 9,086 |
Intangible Assets, Net (Tables)
Intangible Assets, Net (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Net | Intangible assets, net consist of (in thousands): June 30, 2024 2023 Patent costs $ 2,330 $ 2,330 Accumulated amortization (2,252) (2,120) Total finite-lived intangible assets, net 78 210 Trademarks and other indefinite-lived intangible assets 245 245 Total intangible assets, net $ 323 $ 455 |
Other Accrued Expenses (Tables)
Other Accrued Expenses (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Payables and Accruals [Abstract] | |
Schedule of Other Accrued Expenses | Other accrued expenses consist of (in thousands): June 30, 2024 2023 Accrued incentive compensation $ 1,521 $ 3,060 Accrued severance 90 42 Other taxes payable 2,258 1,730 Accrued payable to vendors 434 720 Deferred revenue 860 834 Accrued incentives and promotions to consultants 1,454 758 Accrued other expenses 1,257 788 Total other accrued expenses $ 7,874 $ 7,932 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | The following is a summary of stock option activity for the fiscal years ended June 30, 2024 and 2023: Options (in thousands) Weighted Weighted Aggregate Intrinsic Value (in thousands) Outstanding at June 30, 2022 92 $ 6.23 Granted — $ — Exercised — — $ — Forfeited — — Expired or Canceled (20) 12.46 Outstanding at June 30, 2023 72 4.44 Granted — $ — Exercised — — $ — Forfeited — — Expired or Canceled — — Outstanding at June 30, 2024 72 4.44 3.59 $ 142 Exercisable at June 30, 2024 72 $ 4.44 3.59 $ 142 |
Schedule of Nonvested Restricted Shares | The following is a summary of restricted stock award activity during the fiscal years ended June 30, 2024 and 2023: Shares Weighted Average Grant Date Fair Value Nonvested at June 30, 2022 66 $ 6.85 Granted 117 $ 3.85 Vested (66) 6.85 Forfeited — — Nonvested at June 30, 2023 117 3.85 Granted (1) 392 $ 4.74 Vested (117) 3.85 Forfeited — — Nonvested at June 30, 2024 392 4.74 (1) Includes 125,732 shares of restricted stock that were granted in exchange for the cancellation of 48,026 shares of stock units and 77,706 shares of performance restricted stock units on November 6, 2023. |
Schedule of Unvested Restricted Stock Units Roll Forward | The following is a summary of restricted stock units activity during the fiscal years ended June 30, 2024 and 2023: Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2022 334 $ 7.36 Granted 417 $ 4.19 Vested (156) 8.04 Forfeited (56) 6.20 Nonvested at June 30, 2023 539 4.90 Granted 214 $ 4.90 Vested (331) 5.05 Forfeited (1) (84) 4.48 Nonvested at June 30, 2024 338 4.86 (1) Includes 48,206 shares of restricted stock units that were canceled in exchange for restricted stock awards on November 6, 2023. |
Summary of Nonvested Restricted Stock Units | The following is a summary of performance restricted stock units activity during the fiscal years ended June 30, 2024 and 2023: Number of Units (in thousands) Weighted Average Grant Date Fair Value Nonvested at June 30, 2022 1 $ 15.2 Granted (1) 518 $ 4.24 Vested (1) 15.2 Forfeited (26) 4.27 Nonvested at June 30, 2023 492 4.24 Granted 350 $ 4.89 Vested (284) 4.24 Forfeited (2) (274) 4.68 Nonvested at June 30, 2024 284 4.62 (1) Includes shares added based on achievement of performance goals in excess of target. (2) Includes 77,706 shares of performance restricted stock units that were canceled in exchange for restricted stock awards on November 6, 2023. |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Expense, Net | Other expense, net consists of the following (in thousands): Years ended June 30, 2024 2023 Foreign currency transaction loss, net $ (429) $ (373) Other income (expense), net 17 (85) Total other expense, net $ (412) $ (458) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense | The income tax expense for the fiscal years ended June 30, 2024 and 2023 consists of the following (in thousands): Years ended June 30, 2024 2023 Income Before Income Taxes: Domestic $ 2,940 $ 2,464 International 1,410 1,535 $ 4,350 $ 3,999 Current Taxes: Federal $ 1,457 $ 2,012 State 246 436 Foreign 984 686 Total Current Income Tax Provision $ 2,687 $ 3,134 Deferred Taxes: Federal $ (1,281) $ (1,400) State (151) (303) Foreign 158 28 Total Deferred Income Tax Provision $ (1,274) $ (1,675) Net Income Tax Provision $ 1,413 $ 1,459 |
Schedule of The Effective Income Tax Rate Differs from the U.S. Federal Statutory Income Tax Rate | The effective income tax rate for the fiscal years ended June 30, 2024 and 2023 differs from the U.S. Federal statutory income tax rate due to the following: Years ended June 30, 2024 2023 Federal statutory income tax rate 21.0 % 21.0 % State income taxes, net of federal benefit 1.2 % 0.8 % Foreign tax rate difference 8.0 % 8.3 % Tax return to provision true-up (4.3) % 3.2 % Limit on future stock compensation due to 162(m) 2.8 % 4.3 % Foreign withholding tax 2.6 % 0.4 % Other differences 1.6 % (0.3) % Revalue of deferred for change in federal tax rate 0.0 % 0.1 % Permanent differences: — stock-based compensation (8.3) % 5.8 % — current year section 162(m) limitation 7.0 % 0.0 % — foreign derived intangible income deduction (0.7) % (5.8) % — tax credits (12.1) % (5.3) % — meals and entertainment 1.3 % 0.8 % — removal of additional permanent reinvestment assertions 1.2 % 0.3 % — change in uncertain tax positions 1.2 % 0.0 % — accrual for foreign tax audits 7.7 % 0.0 % — other permanent differences 1.8 % 2.1 % Change in valuation allowance 0.5 % 0.7 % Net income tax provision 32.5 % 36.5 % |
Schedule of The Components of the Deferred Tax Assets and Liabilities | The components of the deferred tax assets and liabilities as of June 30, 2024 and 2023 are as follows (in thousands): June 30, 2024 2023 Deferred tax assets: Federal, state, and foreign net operating loss carryovers $ 271 $ 250 Stock option compensation 360 549 Section 174 costs 2,578 955 Lease liability 3,223 3,100 Accrued vacation, allowance for returns, bonuses & other 2,119 3,005 Gross deferred tax asset $ 8,551 $ 7,859 Deferred tax liabilities: Patents and trademarks $ (30) $ (66) Property & equipment (798) (1,571) Right of use asset (2,263) (2,057) Other (472) (470) Gross deferred tax liabilities (3,563) (4,164) Less: valuation allowance (720) (704) Deferred tax assets, net $ 4,268 $ 2,991 |
Summary of Valuation Allowance | The change in the valuation allowance were as follows (in thousands): Years ended June 30, 2023 2022 Beginning balance $ 704 $ 675 Increases 16 29 Ending balance $ 720 $ 704 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The components of lease expense for the fiscal years ended June 30, 2024 and 2023, were as follows: Years ended June 30, 2024 2023 Operating lease expense Operating lease cost $ 1,913 $ 2,537 Variable lease cost 174 283 Short-term lease cost 47 76 Total lease expense $ 2,134 $ 2,896 Supplemental cash flow information related to operating leases was as follows (in thousands): June 30, 2024 June 30, 2023 Operating cash outflows from operating leases $ 2,187 $ 2,973 Right-of-use assets obtained in exchange for lease obligations $ 2,475 $ — |
Schedule of Lessee, Operating Lease, Liability, Maturity | Maturity of lease liabilities at June 30, 2024 are as follows (in thousands): Year ended June 30, Amount 2025 $ 2,111 2026 2,154 2027 2,151 2028 2,037 2029 1,772 Thereafter 4,622 Total 14,847 Less: imputed interest (1,235) Present value of lease liabilities $ 13,612 |
The Company (Details)
The Company (Details) - $ / shares | Jun. 30, 2024 | Jun. 30, 2023 | Mar. 31, 2018 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Common stock, par value (dollars per share) | $ 0.0001 | $ 0.0001 | $ 0.0001 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands | 12 Months Ended | |||||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) lease | Jun. 30, 2024 USD ($) shares | Jun. 30, 2024 USD ($) segment | Jun. 30, 2024 USD ($) region | Jun. 30, 2023 USD ($) shares | |
Summary of Significant Accounting Policies Additional Information [Abstract] | ||||||
Recorded bad debt expense | $ 0 | $ 100,000 | ||||
Reduction in inventory | 1,300,000 | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | $ 1,300,000 | 1,300,000 |
Impairment of intangible assets | 0 | 0 | ||||
Research and development | 700,000 | $ 600,000 | ||||
Number of finance leases | lease | 0 | |||||
Number of antidilutive securities (in shares) | shares | 13 | 200 | ||||
Number of geographic segments | 2 | 2 | ||||
Cash Accounts Held Primarily At Financial Institution | ||||||
Summary of Significant Accounting Policies Additional Information [Abstract] | ||||||
Concentration of credit risk | 12,600,000 | |||||
Cash Accounts Held at Other Financial Institutions | ||||||
Summary of Significant Accounting Policies Additional Information [Abstract] | ||||||
Concentration of credit risk | $ 4,300,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Inventory (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Components of Inventory | ||
Finished goods | $ 11,841 | $ 12,153 |
Raw materials | 3,214 | 3,920 |
Total inventory | $ 15,055 | $ 16,073 |
Finished goods | 78.70% | 75.60% |
Raw materials | 21.30% | 24.40% |
Total inventory | 100% | 100% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Schedule Of Inventory Valuation Reserve (Details) - SEC Schedule, 12-09, Reserve, Inventory - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ 1,292 | $ 1,253 |
Additions | 901 | 1,199 |
Write-offs | (892) | (1,160) |
Ending balance | $ 1,301 | $ 1,292 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Property and Equipment (Details) | Jun. 30, 2024 |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Estimated service lives of property and equipment | 5 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Estimated service lives of property and equipment | 5 years |
Minimum | Equipment (includes computer hardware and software) | |
Property, Plant and Equipment [Line Items] | |
Estimated service lives of property and equipment | 3 years |
Maximum | Equipment (includes computer hardware and software) | |
Property, Plant and Equipment [Line Items] | |
Estimated service lives of property and equipment | 5 years |
Summary of Significant Accoun_8
Summary of Significant Accounting Policies - Computation of Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Numerator: | ||
Net income | $ 2,937 | $ 2,540 |
Denominator: | ||
Basic weighted-average common shares outstanding (in shares) | 12,458 | 12,557 |
Effect of dilutive securities: | ||
Stock awards and options (in shares) | 528 | 10 |
Diluted weighted-average common shares outstanding (in shares) | 12,986 | 12,567 |
Income per share, basic (dollars per share) | $ 0.24 | $ 0.20 |
Income per share, diluted (dollars per share) | $ 0.23 | $ 0.20 |
Summary of Significant Accoun_9
Summary of Significant Accounting Policies - Segment Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 19,216 | $ 20,504 |
Japan | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Long-lived assets | $ 1,925 | $ 354 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) $ in Thousands | 12 Months Ended | ||||||
Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) segment | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) | Jun. 30, 2024 USD ($) region | Jun. 30, 2024 USD ($) productLine | Jun. 30, 2023 USD ($) productLine | |
Revenue from External Customer [Line Items] | |||||||
Money back guarantee period | 30 days | ||||||
Handling and restocking fee, percentage | 10% | 10% | 10% | 10% | 10% | 10% | |
Return liability reserve | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 | $ 100 |
Number of geographic segments | 2 | 2 | |||||
Number of product lines | productLine | 2 | 2 | |||||
Deferred revenue | $ 860 | $ 860 | 860 | $ 860 | $ 860 | $ 860 | $ 834 |
Increase in revenue from recognition of deferred revenue | $ (26) | $ (700) | |||||
Product concentration risk | Revenue benchmark | |||||||
Revenue from External Customer [Line Items] | |||||||
Concentration risk | 100% | 100% | |||||
Product concentration risk | Revenue benchmark | Protandim and TrueScience Product Line | |||||||
Revenue from External Customer [Line Items] | |||||||
Concentration risk | 80.10% | 79.30% |
Revenue - Sales Return (Details
Revenue - Sales Return (Details) - Sales Returns and Allowances - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ 129 | $ 131 |
Additions | 1,622 | 1,978 |
Returns | (1,618) | (1,980) |
Ending balance | $ 133 | $ 129 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Revenue, net | $ 200,164 | $ 213,398 |
Americas | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, net | 152,907 | 155,361 |
Asia/Pacific & Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, net | 47,257 | 58,037 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, net | 145,679 | 148,522 |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue, net | $ 26,989 | $ 32,082 |
Revenue - Major Products (Detai
Revenue - Major Products (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Revenue from External Customer [Line Items] | ||
Revenue, net | $ 200,164 | $ 213,398 |
Product concentration risk | Revenue benchmark | ||
Revenue from External Customer [Line Items] | ||
Concentration risk | 100% | 100% |
Protandim® product line | ||
Revenue from External Customer [Line Items] | ||
Revenue, net | $ 104,135 | $ 119,720 |
Protandim® product line | Product concentration risk | Revenue benchmark | ||
Revenue from External Customer [Line Items] | ||
Concentration risk | 52% | 56.10% |
TrueScience® product line | ||
Revenue from External Customer [Line Items] | ||
Revenue, net | $ 56,252 | $ 49,494 |
TrueScience® product line | Product concentration risk | Revenue benchmark | ||
Revenue from External Customer [Line Items] | ||
Concentration risk | 28.10% | 23.20% |
Other | ||
Revenue from External Customer [Line Items] | ||
Revenue, net | $ 39,777 | $ 44,184 |
Other | Product concentration risk | Revenue benchmark | ||
Revenue from External Customer [Line Items] | ||
Concentration risk | 19.90% | 20.70% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Property, Plant and Equipment [Line Items] | ||
Accumulated depreciation | $ (14,510) | $ (14,151) |
Total property and equipment, net | 7,813 | 9,086 |
Depreciation expense | 3,400 | 3,400 |
Equipment (includes computer hardware and software) | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15,766 | 16,976 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,466 | 1,476 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 5,040 | 4,734 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 51 | $ 51 |
Intangible Assets, Net (Details
Intangible Assets, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Indefinite-lived Intangible Assets [Line Items] | ||
Total intangible assets, net | $ 323 | $ 455 |
Amortization of intangible assets | $ 100 | 100 |
Definite-lived intangible assets weighted-average amortization period | 9 months | |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2024 | $ 100 | |
2025 | 100 | |
Trademarks | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Trademarks and other indefinite-lived intangible assets | 245 | 245 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
Patent costs | 2,330 | 2,330 |
Accumulated amortization | (2,252) | (2,120) |
Total finite-lived intangible assets, net | $ 78 | $ 210 |
Other Accrued Expenses (Details
Other Accrued Expenses (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Payables and Accruals [Abstract] | ||
Accrued incentive compensation | $ 1,521 | $ 3,060 |
Accrued severance | 90 | 42 |
Other taxes payable | 2,258 | 1,730 |
Accrued payable to vendors | 434 | 720 |
Deferred revenue | 860 | 834 |
Accrued incentives and promotions to consultants | 1,454 | 758 |
Accrued other expenses | 1,257 | 788 |
Total other accrued expenses | $ 7,874 | $ 7,932 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 1 Months Ended | |||||
Apr. 01, 2021 USD ($) | Sep. 30, 2023 $ / shares | Jun. 30, 2024 | Aug. 29, 2023 USD ($) | Sep. 30, 2022 USD ($) | Mar. 30, 2016 USD ($) | |
Line of Credit Facility [Line Items] | ||||||
One time dividend (dollars per share) | $ / shares | $ 0.40 | |||||
Revolving Credit Facility | Line of Credit | ||||||
Line of Credit Facility [Line Items] | ||||||
Total liabilities to tangible net worth ratio (not greater than) | 2 | |||||
Debt instrument, effective interest rate | 7.34% | |||||
March 2016 Revolving Loan | Revolving Credit Facility | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 5,000,000 | $ 2,000,000 | ||||
Basis spread on variable rate | 2% | |||||
Floor interest rate | 0% | |||||
Maximum dividend | $ 750,000 | $ 500,000 | ||||
March 2016 Term Loan | Secured Debt | ||||||
Line of Credit Facility [Line Items] | ||||||
Maximum borrowing capacity | $ 10,000,000 | |||||
Fixed charge coverage ratio, minimum | 1.10 | |||||
Minimum working capital | $ 6,000,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Feb. 17, 2022 | |
Class of Stock [Line Items] | |||||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | 200,000 | 47,000 | |||||
Repurchase common stock amount authorized (up to) | $ 60,000,000 | ||||||
Stock repurchased during period (in shares) | 1,000,000 | 200,000 | |||||
Payments for repurchase of common stock | $ 6,430,000 | $ 822,000 | |||||
Remaining authorized amount of common stock repurchase program | $ 20,400,000 | 20,400,000 | |||||
Cash dividend, common stock | $ 6,900,000 | $ 1,600,000 | |||||
Cash dividend, common stock (in dollars per share) | $ 0.04 | $ 0.035 | $ 0.035 | $ 0.035 | $ 0.545 | $ 0.125 | |
One time dividend (dollars per share) | $ 0.40 | ||||||
ESPP | |||||||
Class of Stock [Line Items] | |||||||
Common stock issued under employee stock purchase plan (in shares) | 100,000 | 100,000 | |||||
Restricted Stock | |||||||
Class of Stock [Line Items] | |||||||
Restricted common stock to employees (in shares) | 1,000,000 | 300,000 | |||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock issued (in shares) | 0 | 0 | |||||
Restricted common stock to employees (in shares) | 1,007,000 | 273,000 | |||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | 206,000 | 47,000 | |||||
Common stock issued under employee stock purchase plan (in shares) | 64,000 | 76,000 | |||||
Stock repurchased during period (in shares) | 977,000 | 173,000 |
Share-Based Compensation - Equi
Share-Based Compensation - Equity-Settled Plans, Narrative (Details) - $ / shares | 12 Months Ended | |||||
Feb. 16, 2017 | Jun. 30, 2024 | Jun. 30, 2018 | Jun. 30, 2023 | Jun. 30, 2022 | Feb. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Company's common stock purchased in aggregate (in shares) | 72,000 | 72,000 | 92,000 | |||
2010 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum common stock issued under Long-Term Incentive Plan (in shares) | 475,000 | |||||
2017 Long-Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of additional shares authorized | 1,138,000 | 650,000 | ||||
Maximum common stock issued under Long-Term Incentive Plan (in shares) | 5,100,000 | |||||
Exercise price of outstanding stock options (dollars per share) | $ 4.44 | |||||
Vesting period | 3 years | |||||
Company's common stock purchased in aggregate (in shares) | 100,000 | |||||
2017 Long Term Incentive Plan Excluding 2010 Long Term Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Maximum common stock issued under Long-Term Incentive Plan (in shares) | 4,630,000 | |||||
Contractual term of stock options granted | 10 years |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan, Narrative (Details) - ESPP - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares of common stock subject for purchase | 400,000 | |
Number of shares available for issuance | 100,000 | |
Purchase price of stock fair market value | 85% | |
Maximum percentage of employee compensation | 15% | |
Maximum number of shares that can be purchased during any offering period | 3,000 | |
Amount in excess of fair market value of stock for option not to be granted | $ 25,000 | |
Offering period | 6 months | |
Common stock issued under employee stock purchase plan (in shares) | 100,000 | 100,000 |
Share-Based Compensation - Stoc
Share-Based Compensation - Stock-Based Compensation, Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock-based compensation | $ 3,280 | $ 3,188 |
Restricted Stock | 2010 and 2017 Long Term Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost | $ 2,500 | |
Period for recognition of unrecognized compensation cost | 1 year 5 months 8 days |
Share-Based Compensation - St_2
Share-Based Compensation - Stock Options, Narrative (Details) - shares | 12 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted (in shares) | 0 | 0 | 0 | |
Vesting on January 1, 2019 | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right percentage | 33.33% | |||
Vesting on the last day of each fiscal quarter following January 1, 2019 | Employee Stock Option | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting right percentage | 8.33% |
Share-Based Compensation - St_3
Share-Based Compensation - Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 | |
Options (in thousands) | |||
Outstanding beginning balance (in shares) | 72,000 | 92,000 | |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | 0 | 0 | |
Forfeited (in shares) | 0 | 0 | |
Expired or Canceled (in shares) | 0 | (20,000) | |
Outstanding ending balance (in shares) | 72,000 | 72,000 | 92,000 |
Exercisable (in shares) | 72,000 | ||
Weighted Average Exercise Price | |||
Outstanding beginning balance (dollars per share) | $ 4.44 | $ 6.23 | |
Granted (dollars per share) | 0 | 0 | |
Exercised (dollars per share) | 0 | 0 | |
Forfeited (dollars per share) | 0 | 0 | |
Expired or Canceled (dollars per share) | 0 | 12.46 | |
Outstanding ending balance (dollars per share) | 4.44 | $ 4.44 | $ 6.23 |
Exercisable (dollars per share) | $ 4.44 | ||
Weighted Average Remaining Contractual Term (in years) | |||
Outstanding | 3 years 7 months 2 days | ||
Exercisable | 3 years 7 months 2 days | ||
Aggregate Intrinsic Value (in thousands) | |||
Exercised | $ 0 | $ 0 | |
Outstanding | 142 | ||
Exercisable | $ 142 |
Share-Based Compensation - Rest
Share-Based Compensation - Restricted Shares (Details) - $ / shares shares in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted Shares | ||
Shares | ||
Nonvested beginning period (in shares) | 117 | 66 |
Granted (in shares) | 392 | 117 |
Vested (in shares) | (117) | (66) |
Forfeited (in shares) | 0 | 0 |
Nonvested ending period (in shares) | 392 | 117 |
Weighted Average Grant Date Fair Value | ||
Nonvested beginning period (dollars per share) | $ 3.85 | $ 6.85 |
Granted (dollars per share) | 4.74 | 3.85 |
Vested (dollars per share) | 3.85 | 6.85 |
Forfeited (dollars per share) | 0 | 0 |
Nonvested ending period (dollars per share) | $ 4.74 | $ 3.85 |
Restricted Stock Units (RSUs) | ||
Shares | ||
Nonvested beginning period (in shares) | 539 | 334 |
Granted (in shares) | 214 | 417 |
Vested (in shares) | (331) | (156) |
Forfeited (in shares) | (84) | (56) |
Nonvested ending period (in shares) | 338 | 539 |
Weighted Average Grant Date Fair Value | ||
Nonvested beginning period (dollars per share) | $ 4.90 | $ 7.36 |
Granted (dollars per share) | 4.90 | 4.19 |
Vested (dollars per share) | 5.05 | 8.04 |
Forfeited (dollars per share) | 4.48 | 6.20 |
Nonvested ending period (dollars per share) | $ 4.86 | $ 4.90 |
Share-Based Compensation - Re_2
Share-Based Compensation - Restricted Stock, Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of vested awards | $ 0.7 | $ 0.3 |
Restricted Stock Units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Fair value of vested awards | $ 1.9 | $ 0.6 |
Share-Based Compensation - Perf
Share-Based Compensation - Performance Restricted Stock Units, Narrative (Details) - Performance Restricted Stock Units - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Distribution percentage of target number of Performance Stock Units | 0% | ||
Fair value of vested awards | $ 1,600 | $ 4 | |
Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Distribution percentage of target number of Performance Stock Units | 0% | ||
Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Distribution percentage of target number of Performance Stock Units | 200% |
Share-Based Compensation - Pe_2
Share-Based Compensation - Performance Restricted Stock Units (Details) - Performance Restricted Stock Units - $ / shares shares in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Shares | ||
Nonvested beginning period (in shares) | 492 | 1 |
Granted (in shares) | 350 | 518 |
Vested (in shares) | (284) | (1) |
Forfeited (in shares) | (274) | (26) |
Nonvested ending period (in shares) | 284 | 492 |
Weighted Average Grant Date Fair Value | ||
Nonvested beginning period (dollars per share) | $ 4.24 | $ 15.2 |
Granted (dollars per share) | 4.89 | 4.24 |
Vested (dollars per share) | 4.24 | 15.2 |
Forfeited (dollars per share) | 4.68 | 4.27 |
Nonvested ending period (dollars per share) | $ 4.62 | $ 4.24 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||
Foreign currency transaction loss, net | $ (429) | $ (373) |
Other income (expense), net | 17 | (85) |
Total other expense, net | $ (412) | $ (458) |
Income Taxes - Income Tax Expen
Income Taxes - Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Income Before Income Taxes: | ||
Domestic | $ 2,940 | $ 2,464 |
International | 1,410 | 1,535 |
Income before income taxes | 4,350 | 3,999 |
Current Taxes: | ||
Federal | 1,457 | 2,012 |
State | 246 | 436 |
Foreign | 984 | 686 |
Total Current Income Tax Provision | 2,687 | 3,134 |
Deferred Taxes: | ||
Federal | (1,281) | (1,400) |
State | (151) | (303) |
Foreign | 158 | 28 |
Total Deferred Income Tax Provision | (1,274) | (1,675) |
Net Income Tax Provision | $ 1,413 | $ 1,459 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate (Details) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
The effective income tax rate differs from the U.S. Federal statutory income tax rate | ||
Federal statutory income tax rate | 21% | 21% |
State income taxes, net of federal benefit | 1.20% | 0.80% |
Foreign tax rate difference | 8% | 8.30% |
Tax return to provision true-up | (4.30%) | 3.20% |
Limit on future stock compensation due to 162(m) | 2.80% | 4.30% |
Foreign withholding tax | 2.60% | 0.40% |
Other differences | 1.60% | (0.30%) |
Revalue of deferred for change in federal tax rate | 0% | 0.10% |
Permanent differences: | ||
— stock-based compensation | (8.30%) | 5.80% |
— current year section 162(m) limitation | 7% | 0% |
— foreign derived intangible income deduction | (0.70%) | (5.80%) |
— tax credits | (12.10%) | (5.30%) |
— meals and entertainment | 1.30% | 0.80% |
— removal of additional permanent reinvestment assertions | 1.20% | 0.30% |
— change in uncertain tax positions | 1.20% | 0% |
— accrual for foreign tax audits | 7.70% | 0% |
— other permanent differences | 1.80% | 2.10% |
Change in valuation allowance | 0.50% | 0.70% |
Net income tax provision | 32.50% | 36.50% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2022 |
Deferred tax assets: | |||
Federal, state, and foreign net operating loss carryovers | $ 271 | $ 250 | |
Stock option compensation | 360 | 549 | |
Section 174 costs | 2,578 | 955 | |
Lease liability | 3,223 | 3,100 | |
Accrued vacation, allowance for returns, bonuses & other | 2,119 | 3,005 | |
Gross deferred tax asset | 8,551 | 7,859 | |
Deferred tax liabilities: | |||
Patents and trademarks | (30) | (66) | |
Property & equipment | (798) | (1,571) | |
Right of use asset | (2,263) | (2,057) | |
Other | (472) | (470) | |
Gross deferred tax liabilities | (3,563) | (4,164) | |
Less: valuation allowance | (720) | (704) | $ (675) |
Deferred tax assets, net | $ 4,268 | $ 2,991 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Operating Loss Carryforwards [Line Items] | ||
Increase resulting from settlements with tax authorities | $ 100,000 | |
Increase resulting from foreign tax audits | 300,000 | |
Unrecognized tax position | 400,000 | |
Unrecognized tax benefits | 0 | $ 0 |
Tax benefit from settlement of stock based awards | 200,000 | $ 200,000 |
State and Local Jurisdiction | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 5,600,000 | |
Foreign Tax Authority | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 400,000 |
Income Taxes - Deferred Tax A_2
Income Taxes - Deferred Tax Assets, Valuation Allowance Schedule (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | ||
Beginning balance | $ 704 | $ 675 |
Increases | 16 | 29 |
Ending balance | $ 720 | $ 704 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 USD ($) ft² | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | ||
Lease term | 3 years | |
Weighted average remaining lease term | 6 years 10 months 24 days | 8 years 3 months 7 days |
Weighted average discount rate | 3.46% | 3.25% |
Lease area | ft² | 5,200 | |
Renewal term | 2 years | |
Monthly payments | $ 28 | |
Annual amount | $ 300 | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 1 year | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Lease term | 8 years |
Leases - Schedule of Lease Cost
Leases - Schedule of Lease Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating lease cost | $ 1,913 | $ 2,537 |
Variable lease cost | 174 | 283 |
Short-term lease cost | 47 | 76 |
Total lease expense | $ 2,134 | $ 2,896 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Leases [Abstract] | ||
Operating cash outflows from operating leases | $ 2,187 | $ 2,973 |
Right-of-use assets obtained in exchange for lease obligations | $ 2,475 | $ 0 |
Leases - Maturity of Lease Liab
Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Jun. 30, 2024 USD ($) |
Leases [Abstract] | |
2025 | $ 2,111 |
2026 | 2,154 |
2027 | 2,151 |
2028 | 2,037 |
2029 | 1,772 |
Thereafter | 4,622 |
Total | 14,847 |
Less: imputed interest | (1,235) |
Present value of lease liabilities | $ 13,612 |