Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Mar. 18, 2019 | Jun. 30, 2018 | |
Document And Entity Information [Abstract] | |||
Entity Registrant Name | Scott's Liquid Gold - Inc. | ||
Entity Central Index Key | 0000088000 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2018 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SLGD | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Public Float | $ 19,698,597 | ||
Entity Common Stock, Shares Outstanding | 12,408,177 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | ||
Net sales | $ 37,058 | $ 42,186 |
Cost of sales | 20,847 | 22,820 |
Gross Profit | 16,211 | 19,366 |
Operating expenses: | ||
Advertising | 1,479 | 884 |
Selling | 7,357 | 6,543 |
General and administrative | 4,464 | 4,314 |
Total operating expenses | 13,300 | 11,741 |
Income from operations | 2,911 | 7,625 |
Interest income | 17 | |
Interest expense | (82) | (136) |
Income before income taxes | 2,846 | 7,489 |
Income tax expense | (619) | (2,827) |
Net income | $ 2,227 | $ 4,662 |
Net income per common share | ||
Basic | $ 0.18 | $ 0.39 |
Diluted | $ 0.18 | $ 0.38 |
Weighted average shares outstanding | ||
Basic | 12,132 | 11,852 |
Diluted | 12,581 | 12,267 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Current assets: | ||
Cash and cash equivalents | $ 6,232 | $ 4,114 |
Accounts receivable, net | 3,047 | 3,104 |
Inventories, net | 7,817 | 8,787 |
Income taxes receivable | 508 | |
Prepaid expenses | 546 | 285 |
Total current assets | 18,150 | 16,290 |
Property and equipment, net | 971 | 909 |
Deferred tax asset | 234 | 384 |
Goodwill | 1,521 | 1,521 |
Intangible assets, net | 5,528 | 6,148 |
Other assets | 71 | 49 |
Total assets | 26,475 | 25,301 |
Current liabilities: | ||
Accounts payable | 1,800 | 1,656 |
Accrued expenses | 593 | 936 |
Income taxes payable | 366 | |
Current maturities of long-term debt | 800 | |
Total current liabilities | 2,393 | 3,758 |
Long-term debt, net of current maturities and debt issuance costs | 362 | |
Total liabilities | 2,393 | 4,120 |
Shareholders’ equity: | ||
Preferred stock, no par value, authorized 20,000 shares; no shares issued and outstanding | ||
Common stock; $0.10 par value, authorized 50,000 shares; issued and outstanding 12,408 shares (2018) and 11,886 shares (2017) | 1,241 | 1,189 |
Capital in excess of par | 7,063 | 6,441 |
Retained earnings | 15,778 | 13,551 |
Total shareholders’ equity | 24,082 | 21,181 |
Total liabilities and shareholders’ equity | $ 26,475 | $ 25,301 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
Statement Of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0 | $ 0 |
Preferred stock, shares authorized | 20,000,000 | 20,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock par value | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,408,000 | 11,886,000 |
Common stock, shares outstanding | 12,408,000 | 11,886,000 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Capital in Excess of Par | Retained Earnings |
Beginning Balance, Value at Dec. 31, 2016 | $ 16,242 | $ 1,175 | $ 6,178 | $ 8,889 |
Beginning Balance, Shares at Dec. 31, 2016 | 11,750 | 11,750 | ||
Stock-based compensation, Value | $ 242 | 242 | ||
Stock options exercised, Value | 35 | $ 14 | 21 | |
Stock options exercised, Shares | 136 | |||
Net income | 4,662 | 4,662 | ||
Ending Balance, Value at Dec. 31, 2017 | $ 21,181 | $ 1,189 | 6,441 | 13,551 |
Ending Balance, Shares at Dec. 31, 2017 | 11,886 | 11,886 | ||
Stock-based compensation, Value | $ 227 | 227 | ||
Stock options exercised, Value | 447 | $ 52 | 395 | |
Stock options exercised, Shares | 522 | |||
Net income | 2,227 | 2,227 | ||
Ending Balance, Value at Dec. 31, 2018 | $ 24,082 | $ 1,241 | $ 7,063 | $ 15,778 |
Ending Balance, Shares at Dec. 31, 2018 | 12,408 | 12,408 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 2,227 | $ 4,662 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 818 | 800 |
Stock-based compensation | 227 | 242 |
Deferred income taxes | 150 | 1,008 |
Change in operating assets and liabilities: | ||
Accounts receivable | 57 | 352 |
Inventories | 970 | (3,145) |
Prepaid expenses and other assets | (283) | 37 |
Income taxes (receivable) payable | (874) | 373 |
Accounts payable and accrued expenses | (199) | (313) |
Total adjustments to net income | 866 | (646) |
Net cash provided by operating activities | 3,093 | 4,016 |
Cash flows from investing activities: | ||
Purchase of property and equipment | (222) | (484) |
Net cash used by investing activities | (222) | (484) |
Cash flows from financing activities: | ||
Repayments under line-of-credit | (750) | |
Repayments of long-term debt | (1,200) | (800) |
Proceeds from exercise of stock options | 447 | 35 |
Net cash used by financing activities | (753) | (1,515) |
Net increase in cash and cash equivalents | 2,118 | 2,017 |
Cash and cash equivalents, beginning of period | 4,114 | 2,097 |
Cash and cash equivalents, end of period | 6,232 | 4,114 |
Supplemental disclosures: | ||
Cash paid during the period for interest | 44 | 111 |
Cash paid during the period for income taxes | $ 1,342 | $ 1,446 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | Note 1. Organization and Summary of Significant Accounting Policies (a) Company Background Scott’s Liquid Gold-Inc., a Colorado corporation, was incorporated on February 15, 1954. Scott’s Liquid Gold-Inc. and its wholly-owned subsidiaries (collectively, the “Company,” “we,” “our” or “us”) develop, manufacture, market, and sell quality household and skin and hair care products. We are also a distributor in the United States of skin and hair care products manufactured by two other companies. Our business is comprised of two segments; household products and skin and hair care products. (b) Principles of Consolidation Our Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. (c) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, intangible asset useful lives and amortization method, and stock-based compensation. Actual results could differ from our estimates. (d) Cash Equivalents We consider all highly-liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. (e) Inventories Valuation and Reserves Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We estimate an inventory reserve, which is generally not material to our financial statements, for slow moving and obsolete products and raw materials based upon, among other things, an assessment of historical and anticipated sales of our products. In the event that actual results differ from our estimates, the results of future periods may be impacted. (f) Property and Equipment Property and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years. Production equipment and production support equipment are estimated to have useful lives of 15 to 20 years and three to 10 years, respectively. Office furniture and office machines are estimated to have useful lives of 10 to 20 and three to five years, respectively. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. (g) Intangible Assets and Goodwill Intangible assets consist of customer relationships, trade names, formulas, batching processes, and a non-compete agreement. The fair value of the intangible assets is amortized over their estimated useful lives and range from a period of five to 15 years. Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests, and in certain circumstances these assets are written down to fair value if impaired. (h) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. As of December 31, 2018, and periodically throughout the year, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts, which is generally not material to our financial statements, based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. The recorded amounts for cash and cash equivalents, receivables, other current assets, accounts payable, accrued expenses, and current maturities of long-term debt approximate fair value due to the short-term nature of these financial instruments. The recorded amount of long-term debt approximates fair value and is estimated primarily based on current market rates for debt with similar terms and remaining maturities. At December 31, 2018, we had no outstanding balance on our long-term debt or line-of-credit. At December 31, 2017, we had long-term debt of $1,200 and a $0 outstanding balance on our line-of-credit. ( i ) Income Taxes Income taxes reflect the tax effects of transactions reported in the Consolidated Financial Statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. A valuation allowance is established when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits or expense. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the Consolidated Statements of Income or accrued on the Consolidated Balance Sheets. (j) Revenue Recognition Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. Certain criteria are required to be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Our revenue contracts are identified when purchase orders are received and accepted from customers and represent a single performance obligation to sell our products to a customer. Net sales reflect the transaction prices for contracts, which include products shipped at selling list prices reduced by variable consideration. Variable consideration includes estimates for expected customer allowances, promotional programs for consumers, and sales returns. Adjustments to the costs of customer allowances and promotional programs for consumers in subsequent periods are generally not material, as our promotions are typically of short duration, thereby reducing the uncertainty inherent in such estimates. Variable consideration is primarily comprised of customer allowances. Customer allowances primarily include reserves for trade promotions to support price features, displays, slotting fees, and other merchandising of our products to our customers. Promotional programs for consumers primarily include coupons, rebates, and certain other promotional programs, and do not represent a significant portion of variable consideration. The costs of customer allowances and promotional programs for consumers are estimated using either the expected value or most likely amount approach, depending on the nature of the allowance, using all reasonably available information, including our historical experience and current expectations. Customer allowances and promotional programs for consumers are reflected in the transaction price when sales are recorded. We may adjust our estimates based on actual results and consideration of other factors that cause allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. Sales returns are generally not material to our financial statements, and do not comprise a significant portion of variable consideration. Estimates for sales returns are based on, among other things, an assessment of historical trends, information from customers, and anticipated returns related to current sales activity. These estimates are established in the period of sale and reduce our revenue in that period. Sales are recorded at the time that control of the products is transferred to customers. In evaluating the timing of the transfer of control of products to customers, we consider several indicators, including significant risks and rewards of products, our right to payment, and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to customers. We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. At December 31, 2018 and December 31, 2017 approximately $1,184 and $1,070, respectively, had been reserved for as a reduction of accounts receivable. Trade promotions to our customers and incentives such as coupons and rebates to the consumer are deducted from gross sales and totaled $3,335 and $3,410 for the years ended December 31, 2018 and 2017, respectively. (k) Advertising Costs We expense advertising costs as incurred. (l) Stock-Based Compensation We account for share based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. We determine the estimated grant-date fair value of stock options using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including the estimated fair value of underlying common stock, risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. We recognize compensation costs ratably over the vesting period using the straight-line method, which approximates the service period. (m) Operating Costs and Expenses Classification Cost of sales includes costs associated with manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, repairs, maintenance, and other indirect costs, as well as warehousing and distribution costs. We classify shipping and handling costs comprised primarily of freight-out as selling expenses. Other selling expenses consist primarily of costs for sales and sales support personnel, brokerage commissions and promotional costs. Shipping and handling costs totaled $2,791 and $2,614, for the years ended December 31, 2018 and 2017, respectively. General and administrative expenses consist of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility related expenses and other general support costs. The Company entered into a confidential separation agreement, waiver and release with the former Chief Financial Officer of the Company effective June 1, 2018 (the “Separation Agreement”). The Company agreed to pay the former Chief Financial Officer severance pay over nine months in conjunction with terms set forth in the Separation Agreement. Severance costs of $287 were recognized in the second quarter of 2018 and are included in general and administrative expenses for the year ended December 31, 2018. Accrued severance costs are included in accrued expenses on the Consolidated Balance Sheets as of December 31, 2018. (n) Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) “Leases (Topic 842)” This guidance, as amended by subsequent ASUs on the topic, In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” In August 2018, the FASB issued ASU No. 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Inventories
Inventories | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Note 2. Inventories Inventories, consisting of materials, labor and overhead at December 31 were comprised of the following: 2018 2017 Finished goods $ 5,448 $ 6,984 Raw materials 2,414 1,811 Inventory reserve for obsolescence (45 ) (8 ) $ 7,817 $ 8,787 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Note 3. Property and Equipment Property and equipment at December 31 were comprised of the following: 2018 2017 Production equipment $ 5,600 $ 5,397 Office furniture and equipment 724 706 Other 218 218 6,542 6,321 Less accumulated depreciation (5,571 ) (5,412 ) $ 971 $ 909 Depreciation expense for the years ended December 31, 2018 and 2017 was $160 and $154, respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Note 4. Goodwill and Intangible Assets Intangible assets consisted of the following: As of December 31, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Customer relationships $ 4,022 $ 1,005 $ 3,017 $ 4,022 $ 603 $ 3,419 Trade names 2,362 393 1,969 2,362 236 2,126 Formulas and batching processes 669 140 529 669 84 585 Non-compete agreement 26 13 13 26 8 18 7,079 1,551 5,528 7,079 931 6,148 Goodwill 1,521 1,521 Total intangible assets $ 7,049 $ 7,669 Amortization expense for the years ended December 31, 2018 and 2017 was $620, respectively. Estimated amortization expense for 2019 and subsequent years is as follows: 2019 $ 620 2020 620 2021 618 2022 616 2023 616 Thereafter 2,438 Total $ 5,528 |
Long-Term Debt and Line-of-Cred
Long-Term Debt and Line-of-Credit | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Line-of-Credit | Note 5. Long-Term Debt and Line-of-Credit On June 30, 2016, the Company and Neoteric Cosmetics, Inc., a wholly-owned subsidiary of the Company, collectively as borrowers, entered into a credit agreement, as amended (the “Credit Agreement”) with JPMorgan Chase Bank, N.A. (“Chase”), as lender, pursuant to which Chase provided a term loan and a revolving credit facility that were related to our acquisition of the Prell®, Denorex®, and Zincon® brands. In June 2018, we paid the remaining principal balance of the term loan ahead of schedule in the amount of $1,000. There were no additional costs incurred associated with the prepayment of the term loan. The revolving credit facility amount is $4 million with interest of: (i) the LIBO Rate + 2.5%; or (ii) the Prime Rate, with a floor of the one month LIBO Rate + 2.5%, and will terminate on June 30, 2019 or any earlier date on which the revolving commitment is otherwise terminated pursuant to the Credit Agreement. Under the Credit Agreement we are obligated to pay quarterly an unused commitment fee equal to 0.5% per annum on the daily amount of the undrawn portion of the revolving line-of-credit. The loans are collateralized by all of the assets of the Company and its subsidiaries. The Credit Agreement requires the Company to be subject to affirmative, negative, and financial covenants on a quarterly basis. The Company was in compliance with the covenants in the Credit Agreement as of December 31, 2018 and 2017, respectively. Debt issuance costs recognized as a component of interest expense for the year ended December 31, 2018 and 2017 were $38 and $25, respectively. In conjunction with the prepayment of the remaining principal balance of the term loan, $25 of unamortized debt issuance costs were recognized as a component of interest expense. Prior to the prepayment of the term loan, these costs were amortized using the effective interest method over the term of the Credit Agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 6. Income Taxes The provision for income tax for the years ended December 31 is as follows: 2018 2017 Current provision: Federal $ 392 $ 1,807 State 77 12 Total current provision 469 1,819 Deferred provision: Federal 122 859 State 28 149 Total deferred provision 150 1,008 Provision: Federal 514 2,666 State 105 161 Total provision $ 619 $ 2,827 Income tax expense at the statutory tax rate is reconciled to the overall income tax expense for the years ended December 31 as follows: 2018 2017 Federal income tax at statutory rates $ 598 $ 2,546 State income taxes, net of federal tax effect 83 229 Permanent differences 7 11 Nondeductible stock-based compensation 30 88 Benefit from domestic manufacturing deduction - (229 ) Impact of change in federal tax rate (56 ) 193 Foreign-derived intangible income deduction (40 ) - Other (3 ) (11 ) Provision for income taxes $ 619 $ 2,827 Deferred income taxes are based on estimated future tax effects of differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amount used for income tax purposes given the provision of enacted tax laws. On December 22, 2017, the Tax Cuts and Jobs Act (“TCJA”) was enacted which, among other things, lowered the U.S. corporate income tax rate from 35% to 21% effective January 1, 2018, and resulted in adjustments to deferred tax assets and liabilities. The TCJA implemented the foreign-derived intangible income deduction, which provides a deduction for sales of goods or services to foreign customers, but also repealed the domestic manufacturing deduction beginning in 2018. The net deferred tax assets and liabilities as of December 31, 2018 and 2017 are comprised of the following: 2018 2017 Deferred tax assets: Accounts receivable $ 171 $ 196 Inventories 66 114 Accrued vacation and bonus 36 25 Intangibles and Goodwill 89 83 Other 21 15 Total deferred tax assets 383 433 Deferred tax liabilities: Accumulated depreciation for tax purposes (149 ) (49 ) Total deferred tax liabilities (149 ) (49 ) Net deferred tax asset $ 234 $ 384 During 2018, the Company utilized all state net operating loss carryovers of approximately $846. Accounting for uncertainty in income taxes is based on a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. We recognize in our consolidated financial statements only those tax positions that are more-likely-than-not to be sustained as of the adoption date, based on the technical merits of the position. Each year we perform a comprehensive review of our material tax positions. Our policy is to recognize interest and penalties related to uncertain tax benefits in income tax expense. As we had no uncertain tax benefits during 2018 and 2017, we had no accrued interest or penalties related to uncertain tax positions in either year. We and our subsidiaries are subject to the following material taxing jurisdictions: United States and Colorado. The tax years that remain open to examination by the Internal Revenue Service are 2015 and years thereafter. The tax years that remain open to examination by the State of Colorado are 2014 and years thereafter. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Shareholders' Equity | Note 7. Shareholders’ Equity During 2018, we granted options to acquire: (i) 40 thousand shares of our common stock to employees at prices ranging from $2.17 to $3.35 per share; (ii) 105 thousand shares of our common stock to executive officers at prices ranging from $2.09 to $2.17 per share; and (iii) 90 thousand shares of our common stock to non-employee board members at a price of $2.17 per share. During 2017, we granted options to acquire: (i) 17 thousand shares of our common stock to employees at prices ranging between $1.80 and $2.25 per share; and (ii) 30 thousand shares of our common stock to a non-employee board member at a price of $2.25 per share. The weighted average fair market value of the options granted during the years ended December 31 were estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions: 2018 2017 Expected life of options (using the “simplified” method) 4 years 4 years Average risk-free interest rate 2.63% 1.44% Average expected volatility of stock 69% 78% Expected dividend rate None None Fair value of options granted $282 $55 Compensation cost related to stock options recognized in operating results (included in general and administrative expenses) totaled $227 and $242 for the years ended December 31, 2018 and 2017, respectively. Approximately $338 of total unrecognized compensation costs related to non-vested stock options is expected to be recognized over the next In 2005, we adopted a stock option plan for our employees, officers and directors (the “2005 Plan”). At the Annual Shareholders’ Meeting in May 2011, shareholders approved an amendment to the 2005 Plan to increase the number of shares issuable under the plan from 1.5 million shares to a total of 3 million shares. In 2015, we adopted, and shareholders approved, a stock option plan for our employees, officers and directors (the “2015 Plan”) to replace the 2005 Plan, which expired on March 31, 2015. Stock option activity under the 2005 and 2015 Plans are as follows: Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value 2005 Plan Maximum number of shares under the plan 3,000 Outstanding, December 31, 2016 628 $ 0.63 3.8 years $ 510 Granted - $ - Exercised (136 ) $ 0.26 Cancelled/Expired - $ - Outstanding, December 31, 2017 492 $ 0.73 3.8 years $ 1,067 Exercisable, December 31, 2017 397 $ 0.70 3.1 years $ 872 Available for issuance, December 31, 2017 - Granted - $ - Exercised (376 ) $ 0.70 Cancelled/Expired (62 ) $ 0.86 Outstanding, December 31, 2018 54 $ 0.79 0.4 years $ 95 Exercisable, December 31, 2018 54 $ 0.79 0.4 years $ 95 Available for issuance, December 31, 2018 - 2015 Plan Maximum number of shares under the plan 2,000 Outstanding, December 31, 2016 788 $ 1.27 7.2 years $ 136 Granted 47 $ 2.18 Exercised - $ - Cancelled/Expired (50 ) $ 1.26 Outstanding, December 31, 2017 785 $ 1.32 6.4 years $ 1,238 Exercisable, December 31, 2017 422 $ 1.31 6.0 years $ 673 Available for issuance, December 31, 2017 1,215 Granted 235 $ 2.26 Exercised (147 ) $ 1.25 Cancelled/Expired (151 ) $ 1.25 Outstanding, December 31, 2018 722 $ 1.66 4.7 years $ 660 Exercisable, December 31, 2018 422 $ 1.44 4.4 years $ 473 Available for issuance, December 31, 2018 1,278 A summary of additional information related to the options outstanding as of December 31, 2018 under the 2005 and 2015 Plans are as follows: Range of Exercise Prices Number of Options (in thousands) Weighted Average Remaining Contractual Life Weighted Average Exercise Price 2005 Plan $0.63-$0.86 54 0.4 years $ 0.79 Total 54 0.4 years $ 0.79 2015 Plan $1.20-$1.25 238 5.4 years $ 1.25 $1.26-$1.38 203 3.3 years $ 1.32 $1.80-$2.25 257 4.6 years $ 2.15 $3.15-$3.35 24 9.2 years $ 3.23 Total 722 4.7 years $ 1.66 We have an Employee Stock Ownership Plan (“Plan”) to provide retirement benefits for our employees. The Plan is designed to invest primarily in our common stock and is non-contributory on the part of our employees. Contributions to the Plan are discretionary as determined by our Board of Directors. We expense the cost of contributions to the Plan. No contributions were made to the Plan in 2018 and 2017. At December 31, 2018 and 2017, a total of 491 and 618 shares of our common stock, respectively, have been allocated and earned by our employees. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 8. Earnings per Share Per share data is determined by using the weighted average number of common shares outstanding. Common equivalent shares are considered only for diluted earnings per share, unless considered anti-dilutive. Common equivalent shares, determined using the treasury stock method, result from stock options with exercise prices that are below the average market price of the common stock. Basic earnings per share include no dilution and are computed by dividing income available to common shareholders by the weighted-average number of shares outstanding during the period. Diluted earnings per share reflect the potential of securities that could share in our earnings. A reconciliation of the weighted average number of common shares outstanding (in thousands) for the years ended December 31 is as follows: 2018 2017 Common shares outstanding, beginning of the year 11,886 11,750 Weighted average common shares issued 246 102 Weighted average number of common shares outstanding 12,132 11,852 Dilutive effect of stock options 449 415 Diluted weighted average number of common shares outstanding 12,581 12,267 Common stock equivalents (in thousands) that have been excluded from the calculation of earnings per share as of December 31 because they would have been anti-dilutive are as follows: 2018 2017 Stock options 252 89 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | Note 9. Segment Information Segments We operate in two different segments: household products and skin and hair care products. We have chosen to organize our business around these segments based on differences in the products sold. Accounting policies for our segments are the same as those described in Note 1. We evaluate segment performance based on segment income or loss before income taxes. The following provides information on our segments as of and for the years ended December 31: 2018 Household Products Skin and Hair Care Products Corporate Total Net sales $ 5,157 $ 31,901 $ - $ 37,058 Operating (loss) income (1,532 ) 4,443 - 2,911 Identifiable assets 2,297 23,436 742 26,475 Capital and intangible asset expenditures 18 204 - 222 Depreciation and amortization 122 695 - 817 2017 Household Products Skin and Hair Care Products Corporate Total Net sales $ 5,668 $ 36,518 $ - $ 42,186 Operating (loss) income (328 ) 7,953 - 7,625 Identifiable assets 2,196 22,721 384 25,301 Capital and intangible asset expenditures 190 294 - 484 Depreciation and amortization 126 674 - 800 Corporate assets noted above are comprised of our income tax receivable and deferred tax assets. Customers Net sales to significant customers were the following for the years ended December 31, 2018 and 2017, respectively: 2018 2017 Walmart $ 9,939 $ 10,983 Ulta 8,947 9,164 HK NFS 6,401 - Outstanding accounts receivable from significant customers represented the following percentages of our total accounts receivable as of December 31, 2018 and 2017, respectively: December 31, 2018 December 31, 2017 Walmart 45.7 % 53.8 % Ulta 26.4 % 17.5 % A loss of any of our significant customers could have a material adverse effect on us because it is uncertain whether our consumer base served by these customers would purchase our products at other retail outlets. Our distribution agreement with HK NFS renewed on January 1, 2019 and is effective for a one-year term. This agreement automatically renews for additional successive one-year terms unless and until either party provides notice of nonrenewal at least 90 days before the end of the then-current term. No long-term contracts exist between us and our other significant customers. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2018 | |
Compensation And Retirement Disclosure [Abstract] | |
Retirement Plans | Note 10. Retirement Plans We have a 401(k) Profit Sharing Plan (“401(k) Plan”) covering our full-time employees who have completed four months of service as defined in the 401(k) Plan and are age 18 or older. Participants may defer up to 75% of their compensation up to the maximum limit determined by law. We may make discretionary “matching” contributions up to a maximum of 6% of each participant’s compensation, but only for those employees earning no more than $50,000 annually. Additionally, we can make discretionary “profit sharing” contributions to eligible employees. Participants are always fully vested in their contributions, matching contributions and allocated earnings thereon. Vesting in our profit sharing contribution is based on years of service, with a participant fully vested after five years. Our Company matching contributions totaled $8 and $7 in 2018 and 2017, respectively. We made no discretionary profit sharing contributions in 2018 and 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 11. Commitments and Contingencies Operating Leases In February 2013, we entered into a lease agreement to lease facilities in Denver, Colorado that house our corporate headquarters and all of our manufacturing and warehouse operations. The lease agreement had an initial term of three years, with options to extend the term for two additional terms of three years each. In February 2016, we exercised our first option to extend the term for three years, and in March 2016, we entered into an expansion lease agreement for additional warehouse space that connects to our current warehouse and has an initial term that expires with our existing facility lease agreement. In January 2019, we exercised our second option to extend the term of our lease agreement for an additional three years for our corporate headquarters and manufacturing and warehouse operations. Future minimum lease payments under the extension of our second option are reflected herein. Annual rental expense for leased facilities was $1,081 and $1,130 for 2018 and 2017, respectively. We have entered into various operating lease agreements, primarily for office equipment. Annual rental expense under these leases totaled $60 and $48 in 2018 and 2017, respectively. Future minimum annual lease payments are as follows: 2019 $ 1,022 2020 1,041 2021 1,062 2022 88 $ 3,213 Contingencies We are subject to lawsuits from time to time in the ordinary course of business. While we expect those lawsuits not to have a material effect on us, an adverse development in any such lawsuit or the insurance coverage for a lawsuit could materially and adversely affect our financial condition and cash flow. We regularly review all pending litigation matters in which we might be involved and establish accruals deemed appropriate by us for these litigation matters when a probable loss estimate can be made. As of December 31, 2018, there were no pending litigation matters that required an accrual. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 12. Subsequent Events Facility lease extension In January 2019, we exercised our second option to extend the term of our lease agreement for our corporate headquarters and manufacturing and warehouse operations. See Note 11 for further discussion. |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (b) Principles of Consolidation Our Consolidated Financial Statements include our accounts and those of our wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated. |
Use of Estimates | (c) Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires us to make estimates and assumptions that affect the reported amounts in our financial statements of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates include, but are not limited to, the realization of deferred tax assets, reserves for slow moving and obsolete inventory, customer returns and allowances, intangible asset useful lives and amortization method, and stock-based compensation. Actual results could differ from our estimates. |
Cash Equivalents | (d) Cash Equivalents We consider all highly-liquid investments with an original maturity of three months or less at the date of acquisition to be cash equivalents. |
Inventories Valuation and Reserves | (e) Inventories Valuation and Reserves Inventories consist of raw materials and finished goods and are stated at the lower of cost (first-in, first-out method) or net realizable value, which is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. We estimate an inventory reserve, which is generally not material to our financial statements, for slow moving and obsolete products and raw materials based upon, among other things, an assessment of historical and anticipated sales of our products. In the event that actual results differ from our estimates, the results of future periods may be impacted. |
Property and Equipment | (f) Property and Equipment Property and equipment are recorded at historical cost. Depreciation is provided using the straight-line method over the estimated useful lives of the assets ranging from three to 20 years. Production equipment and production support equipment are estimated to have useful lives of 15 to 20 years and three to 10 years, respectively. Office furniture and office machines are estimated to have useful lives of 10 to 20 and three to five years, respectively. Maintenance and repairs are expensed as incurred. Improvements that extend the useful lives of the asset or provide improved efficiency are capitalized. |
Intangible Assets and Goodwill | (g) Intangible Assets and Goodwill Intangible assets consist of customer relationships, trade names, formulas, batching processes, and a non-compete agreement. The fair value of the intangible assets is amortized over their estimated useful lives and range from a period of five to 15 years. Goodwill consists of the excess of the purchase price over the fair value of tangible and identifiable intangible assets acquired. Goodwill and intangible assets deemed to have indefinite lives are not amortized but are subject to annual impairment tests, and in certain circumstances these assets are written down to fair value if impaired. |
Financial Instruments | (h) Financial Instruments Financial instruments which potentially subject us to concentrations of credit risk include cash and cash equivalents and accounts receivable. We maintain our cash balances in the form of bank demand deposits with financial institutions that we believe are creditworthy. As of December 31, 2018, and periodically throughout the year, we have maintained balances in various operating accounts in excess of federally insured limits. We establish an allowance for doubtful accounts, which is generally not material to our financial statements, based upon factors surrounding the credit risk of specific customers, historical trends and other information. We have no significant financial instruments with off-balance sheet risk of accounting loss, such as foreign exchange contracts, option contracts or other foreign currency hedging arrangements. The recorded amounts for cash and cash equivalents, receivables, other current assets, accounts payable, accrued expenses, and current maturities of long-term debt approximate fair value due to the short-term nature of these financial instruments. The recorded amount of long-term debt approximates fair value and is estimated primarily based on current market rates for debt with similar terms and remaining maturities. At December 31, 2018, we had no outstanding balance on our long-term debt or line-of-credit. At December 31, 2017, we had long-term debt of $1,200 and a $0 outstanding balance on our line-of-credit. |
Income Taxes | ( i ) Income Taxes Income taxes reflect the tax effects of transactions reported in the Consolidated Financial Statements and consist of taxes currently payable plus deferred income taxes related to certain income and expenses recognized in different periods for financial and income tax reporting purposes. Deferred income tax assets and liabilities are recognized for the future income tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective income tax bases. A valuation allowance is established when it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which related temporary differences become deductible. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. Taxes are reported based on tax positions that meet a more-likely-than-not standard and that are measured at the amount that is more-likely-than-not to be realized. Differences between financial and tax reporting which do not meet this threshold are required to be recorded as unrecognized tax benefits or expense. We classify penalty and interest expense related to income tax liabilities as an income tax expense. There are no significant interest and penalties recognized in the Consolidated Statements of Income or accrued on the Consolidated Balance Sheets. |
Revenue Recognition | (j) Revenue Recognition Our revenue recognition policy is significant because the amount and timing of revenue is a key component of our results of operations. Certain criteria are required to be met in order to recognize revenue. If these criteria are not met, then the associated revenue is deferred until it is met. When consideration is received in advance of the delivery of goods or services, a contract liability is recorded. Our revenue contracts are identified when purchase orders are received and accepted from customers and represent a single performance obligation to sell our products to a customer. Net sales reflect the transaction prices for contracts, which include products shipped at selling list prices reduced by variable consideration. Variable consideration includes estimates for expected customer allowances, promotional programs for consumers, and sales returns. Adjustments to the costs of customer allowances and promotional programs for consumers in subsequent periods are generally not material, as our promotions are typically of short duration, thereby reducing the uncertainty inherent in such estimates. Variable consideration is primarily comprised of customer allowances. Customer allowances primarily include reserves for trade promotions to support price features, displays, slotting fees, and other merchandising of our products to our customers. Promotional programs for consumers primarily include coupons, rebates, and certain other promotional programs, and do not represent a significant portion of variable consideration. The costs of customer allowances and promotional programs for consumers are estimated using either the expected value or most likely amount approach, depending on the nature of the allowance, using all reasonably available information, including our historical experience and current expectations. Customer allowances and promotional programs for consumers are reflected in the transaction price when sales are recorded. We may adjust our estimates based on actual results and consideration of other factors that cause allowances. In the event that actual results differ from our estimates, the results of future periods may be impacted. Sales returns are generally not material to our financial statements, and do not comprise a significant portion of variable consideration. Estimates for sales returns are based on, among other things, an assessment of historical trends, information from customers, and anticipated returns related to current sales activity. These estimates are established in the period of sale and reduce our revenue in that period. Sales are recorded at the time that control of the products is transferred to customers. In evaluating the timing of the transfer of control of products to customers, we consider several indicators, including significant risks and rewards of products, our right to payment, and the legal title of the products. Based on the assessment of control indicators, sales are generally recognized when products are delivered to customers. We have also established an allowance for doubtful accounts. We estimate this allowance based upon, among other things, an assessment of the credit risk of specific customers and historical trends. We believe our allowance for doubtful accounts is adequate to absorb any losses which may arise. In the event that actual losses differ from our estimates, the results of future periods may be impacted. At December 31, 2018 and December 31, 2017 approximately $1,184 and $1,070, respectively, had been reserved for as a reduction of accounts receivable. Trade promotions to our customers and incentives such as coupons and rebates to the consumer are deducted from gross sales and totaled $3,335 and $3,410 for the years ended December 31, 2018 and 2017, respectively. |
Advertising Costs | (k) Advertising Costs We expense advertising costs as incurred. |
Stock-Based Compensation | (l) Stock-Based Compensation We account for share based payments by recognizing compensation expense based upon the estimated fair value of the awards on the date of grant. We determine the estimated grant-date fair value of stock options using the Black-Scholes option pricing model. In order to calculate the fair value of the options, certain assumptions are made regarding the components of the model, including the estimated fair value of underlying common stock, risk-free interest rate, volatility, expected dividend yield and expected option life. Changes to the assumptions could cause significant adjustments to the valuation. We recognize compensation costs ratably over the vesting period using the straight-line method, which approximates the service period. |
Operating Costs and Expenses Classification | (m) Operating Costs and Expenses Classification Cost of sales includes costs associated with manufacturing and distribution including labor, materials, freight-in, purchasing and receiving, quality control, repairs, maintenance, and other indirect costs, as well as warehousing and distribution costs. We classify shipping and handling costs comprised primarily of freight-out as selling expenses. Other selling expenses consist primarily of costs for sales and sales support personnel, brokerage commissions and promotional costs. Shipping and handling costs totaled $2,791 and $2,614, for the years ended December 31, 2018 and 2017, respectively. General and administrative expenses consist of wages and benefits associated with management and administrative support departments, business insurance costs, professional fees, office facility related expenses and other general support costs. The Company entered into a confidential separation agreement, waiver and release with the former Chief Financial Officer of the Company effective June 1, 2018 (the “Separation Agreement”). The Company agreed to pay the former Chief Financial Officer severance pay over nine months in conjunction with terms set forth in the Separation Agreement. Severance costs of $287 were recognized in the second quarter of 2018 and are included in general and administrative expenses for the year ended December 31, 2018. Accrued severance costs are included in accrued expenses on the Consolidated Balance Sheets as of December 31, 2018. |
Recently Issued Accounting Pronouncements | (n) Recently Issued Accounting Pronouncements In February 2016, the Financial Accounting Standards Board (“FASB”) Accounting Standards Update (“ASU”) “Leases (Topic 842)” This guidance, as amended by subsequent ASUs on the topic, In June 2016, the FASB issued ASU No. 2016-13, “ Financial Instruments —Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” . In August 2018, the FASB issued ASU No. 2018-13, “ Fair Value Measurement (Topic 820): Disclosure Framework—Changes to the Disclosure Requirements for Fair Value Measurement” In August 2018, the FASB issued ASU No. 2018-15, “ Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Composition of Inventory | Inventories, consisting of materials, labor and overhead at December 31 were comprised of the following: 2018 2017 Finished goods $ 5,448 $ 6,984 Raw materials 2,414 1,811 Inventory reserve for obsolescence (45 ) (8 ) $ 7,817 $ 8,787 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property Plant And Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment at December 31 were comprised of the following: 2018 2017 Production equipment $ 5,600 $ 5,397 Office furniture and equipment 724 706 Other 218 218 6,542 6,321 Less accumulated depreciation (5,571 ) (5,412 ) $ 971 $ 909 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | Intangible assets consisted of the following: As of December 31, 2018 As of December 31, 2017 Gross Carrying Amount Accumulated Amortization Net Carrying Value Gross Carrying Amount Accumulated Amortization Net Carrying Value Intangible assets: Customer relationships $ 4,022 $ 1,005 $ 3,017 $ 4,022 $ 603 $ 3,419 Trade names 2,362 393 1,969 2,362 236 2,126 Formulas and batching processes 669 140 529 669 84 585 Non-compete agreement 26 13 13 26 8 18 7,079 1,551 5,528 7,079 931 6,148 Goodwill 1,521 1,521 Total intangible assets $ 7,049 $ 7,669 |
Schedule of Estimated Amortization Expense | Estimated amortization expense for 2019 and subsequent years is as follows: 2019 $ 620 2020 620 2021 618 2022 616 2023 616 Thereafter 2,438 Total $ 5,528 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Tax | The provision for income tax for the years ended December 31 is as follows: 2018 2017 Current provision: Federal $ 392 $ 1,807 State 77 12 Total current provision 469 1,819 Deferred provision: Federal 122 859 State 28 149 Total deferred provision 150 1,008 Provision: Federal 514 2,666 State 105 161 Total provision $ 619 $ 2,827 |
Schedule of Income Tax Expense at the Statutory Tax Rate | Income tax expense at the statutory tax rate is reconciled to the overall income tax expense for the years ended December 31 as follows: 2018 2017 Federal income tax at statutory rates $ 598 $ 2,546 State income taxes, net of federal tax effect 83 229 Permanent differences 7 11 Nondeductible stock-based compensation 30 88 Benefit from domestic manufacturing deduction - (229 ) Impact of change in federal tax rate (56 ) 193 Foreign-derived intangible income deduction (40 ) - Other (3 ) (11 ) Provision for income taxes $ 619 $ 2,827 |
Schedule of Net Deferred Tax Assets and Liabilities | The net deferred tax assets and liabilities as of December 31, 2018 and 2017 are comprised of the following: 2018 2017 Deferred tax assets: Accounts receivable $ 171 $ 196 Inventories 66 114 Accrued vacation and bonus 36 25 Intangibles and Goodwill 89 83 Other 21 15 Total deferred tax assets 383 433 Deferred tax liabilities: Accumulated depreciation for tax purposes (149 ) (49 ) Total deferred tax liabilities (149 ) (49 ) Net deferred tax asset $ 234 $ 384 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Equity [Abstract] | |
Weighted Average Fair Market Value of the Options Granted Estimated on the Date of Grant Assumptions | The weighted average fair market value of the options granted during the years ended December 31 were estimated on the date of grant, using a Black-Scholes option pricing model with the following assumptions: 2018 2017 Expected life of options (using the “simplified” method) 4 years 4 years Average risk-free interest rate 2.63% 1.44% Average expected volatility of stock 69% 78% Expected dividend rate None None Fair value of options granted $282 $55 |
Schedule of Activity Under Stock Option Plans | Stock option activity under the 2005 and 2015 Plans are as follows: Number of Options (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Life Aggregate Intrinsic Value 2005 Plan Maximum number of shares under the plan 3,000 Outstanding, December 31, 2016 628 $ 0.63 3.8 years $ 510 Granted - $ - Exercised (136 ) $ 0.26 Cancelled/Expired - $ - Outstanding, December 31, 2017 492 $ 0.73 3.8 years $ 1,067 Exercisable, December 31, 2017 397 $ 0.70 3.1 years $ 872 Available for issuance, December 31, 2017 - Granted - $ - Exercised (376 ) $ 0.70 Cancelled/Expired (62 ) $ 0.86 Outstanding, December 31, 2018 54 $ 0.79 0.4 years $ 95 Exercisable, December 31, 2018 54 $ 0.79 0.4 years $ 95 Available for issuance, December 31, 2018 - 2015 Plan Maximum number of shares under the plan 2,000 Outstanding, December 31, 2016 788 $ 1.27 7.2 years $ 136 Granted 47 $ 2.18 Exercised - $ - Cancelled/Expired (50 ) $ 1.26 Outstanding, December 31, 2017 785 $ 1.32 6.4 years $ 1,238 Exercisable, December 31, 2017 422 $ 1.31 6.0 years $ 673 Available for issuance, December 31, 2017 1,215 Granted 235 $ 2.26 Exercised (147 ) $ 1.25 Cancelled/Expired (151 ) $ 1.25 Outstanding, December 31, 2018 722 $ 1.66 4.7 years $ 660 Exercisable, December 31, 2018 422 $ 1.44 4.4 years $ 473 Available for issuance, December 31, 2018 1,278 |
Summary of Additional Information Related to the Options Outstanding | A summary of additional information related to the options outstanding as of December 31, 2018 under the 2005 and 2015 Plans are as follows: Range of Exercise Prices Number of Options (in thousands) Weighted Average Remaining Contractual Life Weighted Average Exercise Price 2005 Plan $0.63-$0.86 54 0.4 years $ 0.79 Total 54 0.4 years $ 0.79 2015 Plan $1.20-$1.25 238 5.4 years $ 1.25 $1.26-$1.38 203 3.3 years $ 1.32 $1.80-$2.25 257 4.6 years $ 2.15 $3.15-$3.35 24 9.2 years $ 3.23 Total 722 4.7 years $ 1.66 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of the Weighted Average Number of Common Shares Outstanding | A reconciliation of the weighted average number of common shares outstanding (in thousands) for the years ended December 31 is as follows: 2018 2017 Common shares outstanding, beginning of the year 11,886 11,750 Weighted average common shares issued 246 102 Weighted average number of common shares outstanding 12,132 11,852 Dilutive effect of stock options 449 415 Diluted weighted average number of common shares outstanding 12,581 12,267 |
Common Stock Equivalents Excluded From the Calculation of Earnings Per Share | Common stock equivalents (in thousands) that have been excluded from the calculation of earnings per share as of December 31 because they would have been anti-dilutive are as follows: 2018 2017 Stock options 252 89 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Information on Segments | The following provides information on our segments as of and for the years ended December 31: 2018 Household Products Skin and Hair Care Products Corporate Total Net sales $ 5,157 $ 31,901 $ - $ 37,058 Operating (loss) income (1,532 ) 4,443 - 2,911 Identifiable assets 2,297 23,436 742 26,475 Capital and intangible asset expenditures 18 204 - 222 Depreciation and amortization 122 695 - 817 2017 Household Products Skin and Hair Care Products Corporate Total Net sales $ 5,668 $ 36,518 $ - $ 42,186 Operating (loss) income (328 ) 7,953 - 7,625 Identifiable assets 2,196 22,721 384 25,301 Capital and intangible asset expenditures 190 294 - 484 Depreciation and amortization 126 674 - 800 |
Net Sales to Significant Customers | Net sales to significant customers were the following for the years ended December 31, 2018 and 2017, respectively: 2018 2017 Walmart $ 9,939 $ 10,983 Ulta 8,947 9,164 HK NFS 6,401 - |
Outstanding Accounts Receivable from Significant Customers | Outstanding accounts receivable from significant customers represented the following percentages of our total accounts receivable as of December 31, 2018 and 2017, respectively: December 31, 2018 December 31, 2017 Walmart 45.7 % 53.8 % Ulta 26.4 % 17.5 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Commitments And Contingencies Disclosure [Abstract] | |
Future minimum Annual Lease Payments | Future minimum annual lease payments are as follows: 2019 $ 1,022 2020 1,041 2021 1,062 2022 88 $ 3,213 |
Organization and Summary of S_3
Organization and Summary of Significant Accounting Policies - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Accounting Policies [Abstract] | |
Number of business segment | 2 |
Organization and Summary of S_4
Organization and Summary of Significant Accounting Policies - Additional Information 1 (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Significant financial instruments with off-balance sheet risk | $ 0 | |
Long-term debt | 0 | $ 1,200,000 |
Line-of-credit outstanding balance | 0 | 0 |
Interest and penalties recognized in consolidated statements of income | 0 | |
Accrued interest or penalties related to uncertain tax positions | 0 | 0 |
Reserve for reduction in account receivable | 1,184,000 | 1,070,000 |
Trade promotions to customers | $ 3,335,000 | $ 3,410,000 |
Minimum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 3 years | |
Useful lives of intangible assets | 5 years | |
Maximum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 20 years | |
Useful lives of intangible assets | 15 years | |
Production Equipment | Minimum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 15 years | |
Production Equipment | Maximum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 20 years | |
Production Support Equipment | Minimum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 3 years | |
Production Support Equipment | Maximum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 10 years | |
Office Furniture and Equipment | Minimum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 10 years | |
Office Furniture and Equipment | Maximum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 20 years | |
Office Equipment | Minimum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 3 years | |
Office Equipment | Maximum | ||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||
Useful life of property, plant and equipment | 5 years |
Organization and Summary of S_5
Organization and Summary of Significant Accounting Policies - Additional Information 2 (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | |
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||||
Shipping and handling costs | $ 20,847 | $ 22,820 | ||
Accounting Standards Update 2016-02 | Subsequent Event | ||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||||
Operating Lease, right-of-use asset | $ 125 | |||
Operating lease, liability | $ 141 | |||
General and Administrative Expense | Former Chief Financial Officer | ||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||||
Severance costs | $ 287 | |||
Shipping and Handling Costs | ||||
Schedule Of Organization And Presentation Of Financial Statements [Line Items] | ||||
Shipping and handling costs | $ 2,791 | $ 2,614 |
Inventories - Composition of In
Inventories - Composition of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 5,448 | $ 6,984 |
Raw materials | 2,414 | 1,811 |
Inventory reserve for obsolescence | (45) | (8) |
Inventories, net | $ 7,817 | $ 8,787 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule of Property and Equipment | ||
Property and Equipment, gross | $ 6,542 | $ 6,321 |
Less accumulated depreciation | (5,571) | (5,412) |
Property and Equipment, Total | 971 | 909 |
Production Equipment | ||
Schedule of Property and Equipment | ||
Property and Equipment, gross | 5,600 | 5,397 |
Office Furniture and Equipment | ||
Schedule of Property and Equipment | ||
Property and Equipment, gross | 724 | 706 |
Other | ||
Schedule of Property and Equipment | ||
Property and Equipment, gross | $ 218 | $ 218 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | ||
Depreciation expense | $ 160 | $ 154 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 7,079 | $ 7,079 |
Accumulated Amortization | 1,551 | 931 |
Net Carrying Value | 5,528 | 6,148 |
Goodwill | 1,521 | 1,521 |
Total intangible assets | 7,049 | 7,669 |
Customer Relationships | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,022 | 4,022 |
Accumulated Amortization | 1,005 | 603 |
Net Carrying Value | 3,017 | 3,419 |
Trade Names | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 2,362 | 2,362 |
Accumulated Amortization | 393 | 236 |
Net Carrying Value | 1,969 | 2,126 |
Formulas and Batching Processes | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 669 | 669 |
Accumulated Amortization | 140 | 84 |
Net Carrying Value | 529 | 585 |
Non-compete Agreement | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 26 | 26 |
Accumulated Amortization | 13 | 8 |
Net Carrying Value | $ 13 | $ 18 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Amortization expense of intangible assets | $ 620 | $ 620 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Schedule of Estimated Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
2019 | $ 620 | |
2020 | 620 | |
2021 | 618 | |
2022 | 616 | |
2023 | 616 | |
Thereafter | 2,438 | |
Net Carrying Value | $ 5,528 | $ 6,148 |
Long-Term Debt and Line-of-Cr_2
Long-Term Debt and Line-of-Credit - Additional Information (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | |||
Remaining principal balance amount paid | $ 1,200,000 | $ 800,000 | |
Debt issuance costs | $ 38,000 | $ 25,000 | |
Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility, frequency of commitment fee payment | quarterly | ||
Unused commitment fee percentage | 0.50% | ||
JPMorgan Chase Bank, N. A. | Credit Agreement | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Credit facility amount | $ 4,000,000 | ||
Credit facility, terminate date | Jun. 30, 2019 | ||
JPMorgan Chase Bank, N. A. | Credit Agreement | LIBO Rate | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, variable interest rate | 2.50% | ||
JPMorgan Chase Bank, N. A. | Credit Agreement | Floor Rate | Revolving Credit Facility | |||
Debt Instrument [Line Items] | |||
Debt instrument, variable interest rate | 2.50% | ||
JPMorgan Chase Bank, N. A. | Term Loan | Credit Agreement | |||
Debt Instrument [Line Items] | |||
Remaining principal balance amount paid | $ 1,000,000 | ||
Prepayment costs | $ 0 | ||
Unamortized debt issuance costs | $ 25,000 |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Tax (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision: | ||
Federal | $ 392 | $ 1,807 |
State | 77 | 12 |
Total current provision | 469 | 1,819 |
Deferred provision: | ||
Federal | 122 | 859 |
State | 28 | 149 |
Total deferred provision | 150 | 1,008 |
Provision: | ||
Federal | 514 | 2,666 |
State | 105 | 161 |
Total provision | $ 619 | $ 2,827 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense at the Statutory Tax Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Schedule of income tax expense at the statutory tax rate | ||
Federal income tax at statutory rates | $ 598 | $ 2,546 |
State income taxes, net of federal tax effect | 83 | 229 |
Permanent differences | 7 | 11 |
Nondeductible stock-based compensation | 30 | 88 |
Benefit from domestic manufacturing deduction | (229) | |
Impact of change in federal tax rate | (56) | 193 |
Foreign-derived intangible income deduction | (40) | |
Other | (3) | (11) |
Total provision | $ 619 | $ 2,827 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax [Line Items] | ||
U.S. Corporate income tax rate | 21.00% | 35.00% |
Uncertain tax benefits | $ 0 | $ 0 |
Accrued interest or penalties related to uncertain tax positions | $ 0 | $ 0 |
State and Local Jurisdiction | ||
Income Tax [Line Items] | ||
Income tax year open to examination | 2014 | |
State and Local Jurisdiction | Internal Revenue Service (IRS) | ||
Income Tax [Line Items] | ||
Operating loss carryovers | $ 846,000 | |
Federal Tax Authority | ||
Income Tax [Line Items] | ||
Income tax year open to examination | 2015 |
Income Taxes - Schedule of Net
Income Taxes - Schedule of Net Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets: | ||
Accounts receivable | $ 171 | $ 196 |
Inventories | 66 | 114 |
Accrued vacation and bonus | 36 | 25 |
Intangibles and Goodwill | 89 | 83 |
Other | 21 | 15 |
Total deferred tax assets | 383 | 433 |
Deferred tax liabilities: | ||
Accumulated depreciation for tax purposes | (149) | (49) |
Total deferred tax liabilities | (149) | (49) |
Net deferred tax asset | $ 234 | $ 384 |
Shareholders' Equity - Addition
Shareholders' Equity - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | May 31, 2011 | Dec. 31, 2005 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 227,000 | $ 242,000 | ||
Unrecognized compensation costs related to non-vested stock options | $ 338,000 | |||
Period over which compensation costs related to non-vested stock options recognize | 4 years | |||
Tax benefit from recording non-cash expense relates to options granted to employees | $ 0 | |||
Number of shares issuable under 2005 Plan | 3,000,000 | |||
Employer discretionary contribution to defined plan | $ 0 | $ 0 | ||
Shares Held in Employee Stock Option Plan, Allocated | 491,000 | 618,000 | ||
2005 Plan | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares issuable under 2005 Plan | 3,000,000 | 1,500,000 | ||
Stock option plan expiry date | Mar. 31, 2015 | |||
General and Administrative Expense | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Stock-based compensation | $ 227,000 | $ 242,000 | ||
Executive Officer | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options granted | 105,000 | |||
Executive Officer | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average exercise price of options granted | $ 2.09 | |||
Executive Officer | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average exercise price of options granted | $ 2.17 | |||
Non-employee Board Member | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options granted | 90,000 | 30,000 | ||
Weighted average exercise price of options granted | $ 2.17 | $ 2.25 | ||
Employees | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of options granted | 40,000 | 17,000 | ||
Employees | Minimum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average exercise price of options granted | $ 2.17 | $ 1.80 | ||
Employees | Maximum | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Weighted average exercise price of options granted | $ 3.35 | $ 2.25 |
Shareholders' Equity - Weighted
Shareholders' Equity - Weighted Average Fair Market Value of the Options Granted Estimated on the Date of Grant Assumptions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Expected life of options (using the “simplified” method) | 4 years | 4 years |
Average risk-free interest rate | 2.63% | 1.44% |
Average expected volatility of stock | 69.00% | 78.00% |
Expected dividend rate | 0.00% | 0.00% |
Fair value of options granted | $ 282 | $ 55 |
Shareholders' Equity - Schedule
Shareholders' Equity - Schedule of Activity Under Stock Option Plans (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | May 31, 2011 | Dec. 31, 2005 | |
Schedule of options granted | |||||
Maximum number of shares under the plan | 3,000,000 | ||||
2005 Plan | |||||
Schedule of options granted | |||||
Maximum number of shares under the plan | 3,000,000 | 1,500,000 | |||
Number of Options Outstanding Beginning Balance | 492,000 | 628,000 | |||
Number of Options Exercised | (376,000) | (136,000) | |||
Number of Options Cancelled/Expired | (62,000) | ||||
Number of Options Outstanding Ending Balance | 54,000 | 492,000 | 628,000 | ||
Number of Options Exercisable | 54,000 | 397,000 | |||
Weighted Average Exercise Price | |||||
Outstanding Weighted Average Exercise Price Beginning Balance | $ 0.73 | $ 0.63 | |||
Weighted Average Exercise Price Exercised | 0.70 | 0.26 | |||
Weighted Average Exercise Price Cancelled/Expired | 0.86 | ||||
Outstanding Weighted Average Exercise Price Ending Balance | 0.79 | 0.73 | $ 0.63 | ||
Weighted Average Exercise Price Exercisable Ending Balance | $ 0.79 | $ 0.70 | |||
Weighted Average Remaining Contractual Life | |||||
Weighted Average Remaining Contractual Life Options Outstanding | 4 months 24 days | 3 years 9 months 18 days | 3 years 9 months 18 days | ||
Weighted Average Remaining Contractual Life Options Exercisable | 4 months 24 days | 3 years 1 month 6 days | |||
Aggregate Intrinsic Value | |||||
Outstanding Aggregate Intrinsic Value | $ 95 | $ 1,067 | $ 510 | ||
Aggregate Intrinsic Value Exercisable | $ 95 | $ 872 | |||
2015 Plan | |||||
Schedule of options granted | |||||
Maximum number of shares under the plan | 2,000,000 | ||||
Number of Options Outstanding Beginning Balance | 785,000 | 788,000 | |||
Number of Options Granted | 235,000 | 47,000 | |||
Number of Options Exercised | (147,000) | ||||
Number of Options Cancelled/Expired | (151,000) | (50,000) | |||
Number of Options Outstanding Ending Balance | 722,000 | 785,000 | 788,000 | ||
Number of Options Exercisable | 422,000 | 422,000 | |||
Available for Issuance Number of Options Ending Balance | 1,278,000 | 1,215,000 | |||
Weighted Average Exercise Price | |||||
Outstanding Weighted Average Exercise Price Beginning Balance | $ 1.32 | $ 1.27 | |||
Weighted Average Exercise Price Granted | 2.26 | 2.18 | |||
Weighted Average Exercise Price Exercised | 1.25 | ||||
Weighted Average Exercise Price Cancelled/Expired | 1.25 | 1.26 | |||
Outstanding Weighted Average Exercise Price Ending Balance | 1.66 | 1.32 | $ 1.27 | ||
Weighted Average Exercise Price Exercisable Ending Balance | $ 1.44 | $ 1.31 | |||
Weighted Average Remaining Contractual Life | |||||
Weighted Average Remaining Contractual Life Options Outstanding | 4 years 8 months 12 days | 6 years 4 months 24 days | 7 years 2 months 12 days | ||
Weighted Average Remaining Contractual Life Options Exercisable | 4 years 4 months 24 days | 6 years | |||
Aggregate Intrinsic Value | |||||
Outstanding Aggregate Intrinsic Value | $ 660 | $ 1,238 | $ 136 | ||
Aggregate Intrinsic Value Exercisable | $ 473 | $ 673 |
Shareholders' Equity - Summary
Shareholders' Equity - Summary of Additional Information Related to the Options Outstanding (Details) | 12 Months Ended |
Dec. 31, 2018$ / sharesshares | |
2005 Plan | |
Summary of additional information related to the options outstanding | |
Exercisable Weighted Average Number of Option Outstanding | shares | 54,000 |
Average Option Price Per share Exercised | 4 months 24 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $ 0.79 |
2005 Plan | Range One | |
Summary of additional information related to the options outstanding | |
Lower range of Exercise prices | 0.41 |
Upper range of Exercise prices | $ 0.62 |
Exercisable Weighted Average Number of Option Outstanding | shares | 54,000 |
Average Option Price Per share Exercised | 4 months 24 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $ 0.79 |
2005 Plan | Range Two | |
Summary of additional information related to the options outstanding | |
Lower range of Exercise prices | 0.63 |
Upper range of Exercise prices | $ 0.86 |
Exercisable Weighted Average Number of Option Outstanding | shares | 24,000 |
Average Option Price Per share Exercised | 9 years 2 months 12 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $ 3.23 |
2015 Plan | |
Summary of additional information related to the options outstanding | |
Exercisable Weighted Average Number of Option Outstanding | shares | 722,000 |
Average Option Price Per share Exercised | 4 years 8 months 12 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $ 1.66 |
2015 Plan | Range One | |
Summary of additional information related to the options outstanding | |
Lower range of Exercise prices | 1.20 |
Upper range of Exercise prices | $ 1.25 |
Exercisable Weighted Average Number of Option Outstanding | shares | 238,000 |
Average Option Price Per share Exercised | 5 years 4 months 24 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $ 1.25 |
2015 Plan | Range Two | |
Summary of additional information related to the options outstanding | |
Lower range of Exercise prices | 1.26 |
Upper range of Exercise prices | $ 1.38 |
Exercisable Weighted Average Number of Option Outstanding | shares | 203,000 |
Average Option Price Per share Exercised | 3 years 3 months 18 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $ 1.32 |
2015 Plan | Range Three | |
Summary of additional information related to the options outstanding | |
Lower range of Exercise prices | 1.80 |
Upper range of Exercise prices | $ 2.25 |
Exercisable Weighted Average Number of Option Outstanding | shares | 257,000 |
Average Option Price Per share Exercised | 4 years 7 months 6 days |
Options Outstanding and Exercisable Weighted Average Exercise Price | $ 2.15 |
Earnings Per Share - Reconcilia
Earnings Per Share - Reconciliation of the Weighted Average Number of Common Shares Outstanding (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Share [Abstract] | ||
Beginning Balance, Shares | 11,886 | 11,750 |
Weighted average common shares issued | 246 | 102 |
Weighted average number of common shares outstanding | 12,132 | 11,852 |
Dilutive effect of stock options | 449 | 415 |
Diluted weighted average number of common shares outstanding | 12,581 | 12,267 |
Earnings Per Share - Common Sto
Earnings Per Share - Common Stock Equivalents Excluded From the Calculation of Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Stock Options | ||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from calculation of earnings per share | 252 | 89 |
Segment Information - Additiona
Segment Information - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2018Segment | |
Segment Reporting Information [Line Items] | |
Number of business segment | 2 |
HK NFS | |
Segment Reporting Information [Line Items] | |
Distribution agreement renewed date | Jan. 1, 2019 |
Distribution agreement effective term | 1 year |
Distribution agreement automatic additional renewal term | 1 year |
Distribution agreement nonrenewal notice period before end of current term | 90 days |
Segment Information - Informati
Segment Information - Information on Segments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Net sales | $ 37,058 | $ 42,186 |
Operating (loss) income | 2,911 | 7,625 |
Identifiable assets | 26,475 | 25,301 |
Capital and intangible asset expenditures | 222 | 484 |
Depreciation and amortization | 817 | 800 |
Household Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 5,157 | 5,668 |
Operating (loss) income | (1,532) | (328) |
Identifiable assets | 2,297 | 2,196 |
Capital and intangible asset expenditures | 18 | 190 |
Depreciation and amortization | 122 | 126 |
Skin And Hair Care Products | ||
Segment Reporting Information [Line Items] | ||
Net sales | 31,901 | 36,518 |
Operating (loss) income | 4,443 | 7,953 |
Identifiable assets | 23,436 | 22,721 |
Capital and intangible asset expenditures | 204 | 294 |
Depreciation and amortization | 695 | 674 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Identifiable assets | $ 742 | $ 384 |
Segment Information - Net Sales
Segment Information - Net Sales to Significant Customers (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | ||
Entity wide revenue, net sales from major customer | $ 37,058 | $ 42,186 |
Wal-Mart | ||
Segment Reporting Information [Line Items] | ||
Entity wide revenue, net sales from major customer | 9,939 | 10,983 |
Ulta | ||
Segment Reporting Information [Line Items] | ||
Entity wide revenue, net sales from major customer | 8,947 | $ 9,164 |
HK NFS | ||
Segment Reporting Information [Line Items] | ||
Entity wide revenue, net sales from major customer | $ 6,401 |
Segment Information - Outstandi
Segment Information - Outstanding Accounts Receivable from Significant Customers (Details) - Customer Concentration Risk - Accounts Receivable | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Wal-Mart | ||
Segment Reporting Information [Line Items] | ||
Entity wide outstanding accounts receivable percentage from major customer | 45.70% | 53.80% |
Ulta | ||
Segment Reporting Information [Line Items] | ||
Entity wide outstanding accounts receivable percentage from major customer | 26.40% | 17.50% |
Retirement Plans - Additional I
Retirement Plans - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||
Minimum Completed years of service for eligible in plan | 4 months | |
Minimum age of employee for becoming eligible in plan | 18 years | |
Maximum limit of Employee Compensation Defer percentage | 75.00% | |
Percentage of discretionary contributions | 6.00% | |
Maximum Annual earnings limit for employer contribution | $ 50,000 | |
Vesting period of service to employee for profit sharing contribution | 5 years | |
Amount of matching contribution | $ 8,000 | $ 7,000 |
Discretionary profit sharing contribution | $ 0 | $ 0 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Feb. 28, 2013Extension | Dec. 31, 2018USD ($)Litigation | Dec. 31, 2017USD ($) | |
Commitments And Contingencies Disclosure [Abstract] | |||
Operating leases term of contract | 3 years | ||
Operating lease term, number of additional extensions allowed | Extension | 2 | ||
Operating lease extension period | 3 years | ||
Annual rent expense for leased facilities | $ 1,081 | $ 1,130 | |
Annual rental expense under operating lease agreements | $ 60 | $ 48 | |
Number of pending litigation | Litigation | 0 |
Commitments and Contingencies_2
Commitments and Contingencies - Future minimum Annual Lease Payments (Details) $ in Thousands | Dec. 31, 2018USD ($) |
Operating Leases Future Minimum Payments Due [Abstract] | |
2019 | $ 1,022 |
2020 | 1,041 |
2021 | 1,062 |
2022 | 88 |
Operating leases, future minimum annual lease payments | $ 3,213 |