Document_And_Entity_Informatio
Document And Entity Information | 6 Months Ended | |
Jun. 30, 2014 | Jul. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'NATURAL HEALTH TRENDS CORP | ' |
Document Type | '10-Q | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 12,221,292 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000912061 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 30-Jun-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Consolidated_Balance_Sheets_Cu
Consolidated Balance Sheets (Current Period Unaudited) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current assets: | ' | ' |
Cash and cash equivalents | $29,622 | $14,550 |
Accounts receivable | 109 | 134 |
Inventories, net | 4,321 | 1,828 |
Other current assets | 754 | 658 |
Total current assets | 34,806 | 17,170 |
Property and equipment, net | 305 | 265 |
Goodwill | 1,764 | 1,764 |
Restricted cash | 340 | 328 |
Other assets | 323 | 300 |
Total assets | 37,538 | 19,827 |
Current liabilities: | ' | ' |
Accounts payable | 4,641 | 3,058 |
Income taxes payable | 111 | 25 |
Accrued distributor commissions | 5,224 | 3,962 |
Other accrued expenses | 5,599 | 3,146 |
Deferred revenue | 3,171 | 2,569 |
Deferred tax liability | 108 | 108 |
Other current liabilities | 1,030 | 882 |
Total current liabilities | 19,884 | 13,750 |
Commitments and contingencies | 0 | 0 |
Stockholders’ equity: | ' | ' |
Preferred stock, $0.001 par value; 5,000,000 shares authorized; 1,761,900 shares designated Series A convertible preferred stock, 123,693 and 91,693 shares issued and outstanding at December 31, 2013 and June 30, 2014, respectively, aggregate liquidation value of $183 | 82 | 111 |
Common stock, $0.001 par value; 50,000,000 shares authorized; 11,332,771 and 12,113,392 shares issued and outstanding at December 31, 2013 and June 30, 2014, respectively | 12 | 11 |
Additional paid-in capital | 83,284 | 80,655 |
Accumulated deficit | -65,658 | -74,619 |
Accumulated other comprehensive loss: | ' | ' |
Foreign currency translation adjustments | -66 | -81 |
Total stockholders’ equity | 17,654 | 6,077 |
Total liabilities and stockholders’ equity | $37,538 | $19,827 |
Consolidated_Balance_Sheets_Cu1
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) (USD $) | Jun. 30, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Preferred stock, par value (in Dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, aggregate liquidation value (in Dollars) | $183 | $183 |
Common stock, par value (in Dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 50,000,000 | 50,000,000 |
Common stock, shares issued | 12,113,392 | 11,332,771 |
Common stock, shares outstanding | 12,113,392 | 11,332,771 |
Series A Convertible Preferred Stock [Member] | ' | ' |
Preferred stock, shares authorized | 1,761,900 | 1,761,900 |
Preferred stock, shares issued | 91,693 | 123,693 |
Preferred stock, shares outstanding | 91,693 | 123,693 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net sales | $34,189 | $10,598 | $57,351 | $19,249 |
Cost of sales | 7,509 | 2,570 | 12,761 | 4,798 |
Gross profit | 26,680 | 8,028 | 44,590 | 14,451 |
Operating expenses: | ' | ' | ' | ' |
Distributor commissions | 15,458 | 4,443 | 25,881 | 8,117 |
Selling, general and administrative expenses (including stock-based compensation expense of $23 and $9 during the three months ended June 30, 2013 and 2014, respectively, and $53 and $34 during the six months ended June 30, 2013 and 2014, respectively) | 5,031 | 2,609 | 9,378 | 5,054 |
Depreciation and amortization | 23 | 28 | 44 | 40 |
Total operating expenses | 20,512 | 7,080 | 35,303 | 13,211 |
Income from operations | 6,168 | 948 | 9,287 | 1,240 |
Other income (expense), net | 1 | -28 | -8 | -21 |
Income before income taxes | 6,169 | 920 | 9,279 | 1,219 |
Income tax provision | 59 | 16 | 98 | 28 |
Net income | 6,110 | 904 | 9,181 | 1,191 |
Preferred stock dividends | -3 | -4 | -7 | -8 |
Net income available to common stockholders | $6,107 | $900 | $9,174 | $1,183 |
Income per common share: | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.51 | $0.08 | $0.78 | $0.11 |
Diluted (in Dollars per share) | $0.49 | $0.08 | $0.76 | $0.11 |
Weighted-average number of common shares outstanding: | ' | ' | ' | ' |
Basic (in Shares) | 11,821 | 11,131 | 11,592 | 11,100 |
Diluted (in Shares) | 12,305 | 11,269 | 12,050 | 11,265 |
Cash dividends declared per share: | ' | ' | ' | ' |
Common (in Dollars per share) | $0.01 | ' | $0.01 | ' |
Consolidated_Statements_of_Ope1
Consolidated Statements of Operations (Unaudited) (Parentheticals) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Stock-based compensation expense included in selling, general, and administrative expense | $9 | $23 | $34 | $53 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Net income | $6,110 | $904 | $9,181 | $1,191 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 42 | 2 | 15 | -26 |
Comprehensive income | $6,152 | $906 | $9,196 | $1,165 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Jun. 30, 2013 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $9,181,000 | $1,191,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 44,000 | 40,000 |
Stock-based compensation | 34,000 | 53,000 |
Changes in assets and liabilities: | ' | ' |
Accounts receivable | 24,000 | -60,000 |
Inventories, net | -2,502,000 | -183,000 |
Other current assets | -104,000 | 110,000 |
Other assets | -16,000 | -1,000 |
Accounts payable | 1,586,000 | 242,000 |
Income taxes payable | 86,000 | 28,000 |
Accrued distributor commissions | 1,268,000 | 483,000 |
Other accrued expenses | 2,466,000 | 382,000 |
Deferred revenue | 606,000 | 297,000 |
Other current liabilities | 152,000 | -4,000 |
Net cash provided by operating activities | 12,825,000 | 2,578,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment, net | -97,000 | -57,000 |
Net cash used in investing activities | -97,000 | -57,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of warrants | 2,630,000 | ' |
Dividends paid | -195,000 | ' |
Repurchase of common stock | -63,000 | -21,000 |
Net cash provided by (used in) financing activities | 2,372,000 | -21,000 |
Effect of exchange rates on cash and cash equivalents | -28,000 | -12,000 |
Net increase in cash and cash equivalents | 15,072,000 | 2,488,000 |
CASH AND CASH EQUIVALENTS, beginning of period | 14,550,000 | 4,207,000 |
CASH AND CASH EQUIVALENTS, end of period | 29,622,000 | 6,695,000 |
NON-CASH FINANCING ACTIVITY: | ' | ' |
Conversion of preferred stock | 29,000 | 13,000 |
Cash dividends declared, but not yet paid | $25,000 | ' |
Note_1_Nature_of_Operations_an
Note 1 - Nature of Operations and Basis of Presentation | 6 Months Ended | |
Jun. 30, 2014 | ||
Disclosure Text Block [Abstract] | ' | |
Business Description and Basis of Presentation [Text Block] | ' | |
1 | NATURE OF OPERATIONS AND BASIS OF PRESENTATION | |
Nature of Operations | ||
Natural Health Trends Corp. (the “Company”), a Delaware corporation, is an international direct-selling and e-commerce company headquartered in Dallas, Texas. Subsidiaries controlled by the Company sell personal care, wellness, and “quality of life” products under the “NHT Global” brand. In most markets, we sell our products to an independent member network that either uses the products themselves or resells them to consumers. | ||
Our wholly-owned subsidiaries have an active physical presence in the following markets: North America; Greater China, which consists of Hong Kong, Taiwan and China; Russia; South Korea; Japan; and Europe, which consists of Italy and Slovenia. In June 2013, we opened a marketing center in Almaty, Kazakhstan through our engagement with our Russian service provider. The center also opened for sales and distribution purposes in September 2013. A similar fully-operational facility opened in Odessa, Ukraine in February 2014. | ||
Basis of Presentation | ||
The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. As a result, certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, considered necessary for a fair statement of the Company’s financial information for the interim periods presented. The results of operations of any interim period are not necessarily indicative of the results of operations to be expected for the fiscal year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes included in our 2013 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (SEC) on March 7, 2014. |
Note_2_Summary_of_Significant_
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Significant Accounting Policies [Text Block] | ' | ||||||||||||||||||||||||
2 | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. | |||||||||||||||||||||||||
The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates associated with obsolete inventory and the fair value of acquired intangible assets, including goodwill, revenue recognition, as well as those used in the determination of liabilities related to sales returns, distributor commissions and income taxes. Various assumptions and other factors prompt the determination of these significant estimates. The process of determining significant estimates is fact specific and takes into account historical experience and current and expected economic conditions. The actual results may differ materially and adversely from the Company’s estimates. To the extent that there are material differences between the estimates and actual results, future results of operations will be affected. | |||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
The Company recognizes income taxes under the liability method of accounting for income taxes. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. | |||||||||||||||||||||||||
The Company and its subsidiaries file income tax returns in the United States, various states, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2010, and is no longer subject to state income tax examinations for years prior to 2009. No jurisdictions are currently examining any income tax returns of the Company or its subsidiaries. | |||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. | |||||||||||||||||||||||||
Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items. | |||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Product sales are recorded when the products are shipped and title passes to independent distributors. Product sales to distributors are made pursuant to a distributor agreement that provides for transfer of both title and risk of loss upon our delivery to the carrier that completes delivery to the distributors, which is commonly referred to as “F.O.B. Shipping Point.” The Company primarily receives payment by credit card at the time distributors place orders. Amounts received for unshipped product are recorded as deferred revenue. The Company’s sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. | |||||||||||||||||||||||||
Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. | |||||||||||||||||||||||||
Enrollment package revenue, including any nonrefundable set-up fees, is deferred and recognized over the term of the arrangement, generally twelve months. Enrollment packages provide distributors access to both a personalized marketing website and a business management system. No upfront costs are deferred as the amount is nominal. | |||||||||||||||||||||||||
Shipping charges billed to distributors are included in net sales. Costs associated with shipments are included in cost of sales. | |||||||||||||||||||||||||
Various taxes on the sale of products and enrollment packages to distributors are collected by the Company as an agent and remitted to the respective taxing authority. These taxes are presented on a net basis and recorded as a liability until remitted to the respective taxing authority. | |||||||||||||||||||||||||
Income Per Share | |||||||||||||||||||||||||
Basic income per share is computed via the “two-class” method by dividing net income allocated to common stockholders by the weighted-average number of common shares outstanding during the period. Net income available to common stockholders is allocated to both common stock and participating securities as if all of the income for the period had been distributed. The Company’s Series A convertible preferred stock is a participating security due to its participation rights related to dividends declared by the Company. If dividends are distributed to common stockholders, the Company is also required to pay dividends to the holders of the preferred stock in an amount equal to the greater of (1) the amount of dividends then accrued and not previously paid on such shares of preferred stock or (2) the amount payable if dividends were distributed to the common stockholders on an as-converted basis. | |||||||||||||||||||||||||
Diluted income per share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock and warrants is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not yet recognized and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The dilutive effect of the Company’s Series A convertible preferred stock is calculated using the more dilutive of the “two-class” method and the “if-converted” method, which assumes that the preferred stock was converted into common stock at the beginning of each period presented. | |||||||||||||||||||||||||
The following table illustrates the computation of basic and diluted income per share for the periods indicated (in thousands, except per share data): | |||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net income available to common stockholders | $ | 900 | $ | 6,107 | |||||||||||||||||||||
Less: undistributed earnings to participating securities | (6 | ) | (48 | ) | |||||||||||||||||||||
Net income allocated to common stockholders | 894 | 11,131 | $ | 0.08 | 6,059 | 11,821 | $ | 0.51 | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Warrants to purchase common stock | – | - | – | 444 | |||||||||||||||||||||
Non-vested restricted stock | – | 138 | – | 40 | |||||||||||||||||||||
Plus: reallocation of undistributed earnings to participating securities | – | 2 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net income allocated to common stockholders plus assumed conversions | $ | 894 | 11,269 | $ | 0.08 | $ | 6,061 | 12,305 | $ | 0.49 | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share Amount | Income | Shares | Per Share Amount | ||||||||||||||||||||
(Numerator) | (Denominator) | (Numerator) | (Denominator) | ||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net income available to common stockholders | $ | 1,183 | $ | 9,174 | |||||||||||||||||||||
Less: undistributed earnings to participating securities | (6 | ) | (80 | ) | |||||||||||||||||||||
Net income allocated to common stockholders | 1,177 | 11,100 | $ | 0.11 | 9,094 | 11,592 | $ | 0.78 | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Warrants to purchase common stock | – | – | – | 396 | |||||||||||||||||||||
Non-vested restricted stock | – | 165 | – | 62 | |||||||||||||||||||||
Plus: reallocation of undistributed earnings to participating securities | – | 4 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net income allocated to common stockholders plus assumed conversions | $ | 1,177 | 11,265 | $ | 0.11 | $ | 9,098 | 12,050 | $ | 0.76 | |||||||||||||||
Certain non-vested restricted stock is anti-dilutive upon applying the treasury stock method since the amount of compensation cost for future service results in the hypothetical repurchase of shares exceeding the actual number of shares to be vested. Other common stock equivalents are also anti-dilutive since the applicable exercise price exceeds the average market price of the related common stock for the period. | |||||||||||||||||||||||||
The following securities were not included for the time periods indicated as their effect would have been anti-dilutive: | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||
Warrants to purchase common stock | 2,259,731 | – | 2,986,285 | – | |||||||||||||||||||||
Non-vested restricted stock | 81,041 | – | 85,161 | – | |||||||||||||||||||||
Warrants to purchase 748,069 shares of common stock were still outstanding at June 30, 2014. Such warrants have expirations through April 21, 2015. | |||||||||||||||||||||||||
Recently Issued and Adopted Accounting Pronouncements | |||||||||||||||||||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-05, Foreign Currency Matters (Topic 830) —Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, to clarify the guidance for entities that cease to hold a controlling financial interest in a subsidiary or group of assets within a foreign entity when (1) the subsidiary or group of assets is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) and (2) there is a cumulative translation adjustment balance associated with that foreign entity. ASU 2013-05 is effective prospectively for reporting periods, including interim periods, beginning after December 15, 2013. The Company’s adoption of the standard on January 1, 2014 did not have a material impact on its consolidated financial statements. | |||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) — Presentation of an Unrecognized Tax Benefit When A Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, to provide explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied prospectively to all tax benefits that exist at the effective date. Retrospective application is permitted. The Company’s adoption of the standard on January 1, 2014 did not have a material impact on its consolidated financial statements. | |||||||||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers, that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. ASU 2014-09 becomes effective for reporting periods, including interim periods, beginning after December 15, 2016. Early adoption is not permitted. The company is currently assessing the impact that this standard will have on its consolidated financial statements. | |||||||||||||||||||||||||
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. |
Note_3_StockBased_Compensation
Note 3 - Stock-Based Compensation | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||
3 | STOCK-BASED COMPENSATION | ||||||||
Stock-based compensation expense totaled $23,000 and $9,000 for the three months ended June 30, 2013 and 2014, respectively, and $53,000 and $34,000 for the six months ended June 30, 2013 and 2014, respectively. No tax benefits were attributed to the stock-based compensation because a valuation allowance was maintained for substantially all net deferred tax assets. | |||||||||
The following table summarizes the Company’s restricted stock activity: | |||||||||
Shares | Wtd. Avg. Price at Date of Issuance | ||||||||
Nonvested at December 31, 2013 | 54,986 | $ | 0.37 | ||||||
Vested | (53,323 | ) | 0.37 | ||||||
Nonvested at June 30, 2014 | 1,663 | 0.52 | |||||||
As of June 30, 2014, total unrecognized stock-based compensation expense related to non-vested restricted stock was $1,000, which is expected to be recognized over a weighted-average period of 0.2 years. | |||||||||
On August 13, 2012, the Company’s Board of Directors authorized the Company, acting as trustee for certain of its non-officer, overseas employees, to execute a Rule 10b5-1 plan to purchase 100,000 shares of its common stock in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934 and the Company's policies regarding stock transactions. Pursuant to this authority, the Company, as Trustee, entered into a 10b5-1 plan and began purchasing in December 2012. The current 10b5-1 plan for the purchase of up to 2,100 shares per month will expire on November 11, 2014, unless terminated earlier, and the Company, as Trustee, intends at or after that time to enter into a new 10b5-1 plan or plans to complete the purchases authorized. The Company may terminate the plan at any time. The employees will receive the stock as incentive compensation in quarterly increments over three years beginning March 15, 2013, provided that they are employees of the Company on the date of the distribution. Any common stock that is forfeited by an employee whose employment terminates will be delivered to the Company and held as treasury stock. | |||||||||
Shares | Wtd. Avg. Grant-Date Fair Value | ||||||||
Nonvested at December 31, 2013 | 53,324 | $ | 1.37 | ||||||
Vested | (13,338 | ) | 1.37 | ||||||
Nonvested at June 30, 2014 | 39,986 | 1.37 | |||||||
As of June 30, 2014, total unrecognized stock-based compensation expense related to these stock awards was $47,000, which is expected to be recognized over a weighted-average period of 1.5 years. |
Note_4_Stockholders_Equity
Note 4 - Stockholders' Equity | 6 Months Ended | |
Jun. 30, 2014 | ||
Stockholders' Equity Note [Abstract] | ' | |
Stockholders' Equity Note Disclosure [Text Block] | ' | |
4 | STOCKHOLDERS’ EQUITY | |
Dividends | ||
On March 7, 2014, the Board of Directors declared a dividend on each share of outstanding Series A preferred stock in the amount of $0.81507 per share representing the accrued and cumulative dividends from May 4, 2007 through March 7, 2014. Simultaneously, the Board of Directors also declared a dividend of $0.005 on each share of common stock outstanding. All such dividends totaled $158,000 and were payable in cash on April 8, 2014 to stockholders of record on March 28, 2014. Then, on May 6, 2014, the Board of Directors declared another dividend of $0.0196 on each share of outstanding Series A preferred stock, which represented the accrued unpaid dividends through the declaration date, and a dividend of $0.005 on each share of outstanding common stock, totaling aggregate dividends of $62,000. All such dividends were payable in cash on June 4, 2014 to stockholders of record on May 27, 2014. | ||
Common Stock Purchase Warrants | ||
Since February 2014, warrants to purchase 747,883 shares of common stock were exercised at exercise prices ranging from $3.5137 to $3.52 per share for total proceeds of $2.6 million. As a result of the cash dividend of $0.005 declared on March 7, 2014 on each share of outstanding common stock and in accordance with the warrant agreement, the exercise price per share for each warrant was adjusted from $3.52 per share to $3.5164 per share. The exercise price was subsequently adjusted to $3.5137 on May 6, 2014 when the second common stock dividend was declared by the Board of Directors. |
Note_5_Commitments_And_Conting
Note 5 - Commitments And Contingencies | 6 Months Ended | |
Jun. 30, 2014 | ||
Commitments and Contingencies Disclosure [Abstract] | ' | |
Commitments and Contingencies Disclosure [Text Block] | ' | |
5 | CONTINGENCIES | |
Consumer Indemnity | ||
As required by the Door-to-Door Sales Act in South Korea, the Company maintains insurance for consumer indemnity claims with a mutual aid cooperative by possessing a mutual aid contract with Mutual Aid Cooperative & Consumer (the “Cooperative”). The contract secures payment to distributors in the event that the Company is unable to provide refunds to distributors. Typically, requests for refunds are paid directly by the Company according to the Company’s normal Korean refund policy, which requires that refund requests be submitted within three months. Accordingly, the Company estimates and accrues a reserve for product returns based on this policy and its historical experience. Depending on the sales volume, the Company may be required to increase or decrease the amount of the contract. The maximum potential amount of future payments the Company could be required to make to address actual distributor claims under the contract is equivalent to three months of rolling sales. At June 30, 2014, non-current other assets include KRW 144 million (USD $142,000) underlying the contract, which can be utilized by the Cooperative to fund any outstanding distributor claims. The Company believes that the likelihood of utilizing these funds to provide for distributors claims is remote. | ||
Registration Payment Arrangements | ||
Pursuant to a Registration Rights Agreement with the investors in the Company’s October 2007 financing of variable rate convertible debentures having an aggregate face amount of $4,250,000, seven-year warrants to purchase 1,495,952 shares of the Company’s common stock, and one-year warrants to purchase 1,495,952 shares of the Company’s common stock, the Company was obligated to (i) file a registration statement covering the resale of the maximum number of Registrable Securities (as defined) that is permitted by SEC Guidance (as defined) prior to November 18, 2007, (ii) cause the registration statement to be declared effective within certain specified periods of time and (iii) maintain the effectiveness of the registration statement until all Registrable Securities have been sold, or may be sold without volume restrictions pursuant to Rule 144(k) under the Securities Act. The Company timely filed that registration statement covering the shares of common stock underlying the debentures, which have been redeemed, and the one-year warrants, which have expired. At the time, the 1,495,952 shares of common stock underlying the seven-year warrants were not deemed Registrable Securities and were not included in the Registration Statement. If they are subsequently deemed Registrable Securities at a time when a registration statement covering them is required to be effective under the Registration Rights Agreement, and such registration statement is not then effective, then the warrants may be exercised by means of a cashless exercise. The maximum number of shares that could be required to be issued upon exercise of the warrants (whether on a cashless basis or otherwise) is limited to the number of shares indicated on the face of the warrants. The Company filed a registration statement on November 22, 2013 covering the maximum number of shares that could be required to be issued upon exercise of the warrants, and such registration statement was declared effective on December 5, 2013. The Company filed a post-effective amendment to that registration statement on June 9, 2014, which was declared effective on June 16, 2014. As of June 30, 2014, no contingent obligations have been recognized under registration payment arrangements. |
Note_6_Related_Party_Transacti
Note 6 - Related Party Transactions | 6 Months Ended | |
Jun. 30, 2014 | ||
Related Party Transactions [Abstract] | ' | |
Related Party Transactions Disclosure [Text Block] | ' | |
6 | RELATED PARTY TRANSACTIONS | |
In February 2013, the Company entered into a Royalty Agreement and License with Broady Health Sciences, L.L.C., a Texas limited liability company, (“BHS”) regarding the manufacture and sale of a product called ReStor™. Under this agreement, the Company agreed to pay BHS a royalty of 2.5% of sales revenue in return for the right to manufacture (or have manufactured), market, import, export and sell this product worldwide, with certain rights being exclusive outside the United States. George Broady, a director of the Company and owner of more than 5% of its outstanding common stock, is owner of BHS. The Company recognized royalties of $8,000 and $36,000 during each of the three month periods ended June 30, 2013 and 2014, respectively, and $15,000 and $65,000 during each of the six month periods ended June 30, 2013 and 2014, respectively. The Company is not required to purchase any product under the agreement, and the agreement may be terminated at any time on 120 days’ notice or, under certain circumstances, with no notice. | ||
The Company is considering entering into another royalty agreement and license with BHS regarding the manufacture and sale of a product called Soothe™, which the Company began selling in the fourth quarter of 2012 with the permission of BHS. To continue selling this product, BHS has requested that the Company pay a royalty of 2.5% of sales revenue for this product for 2012 and subsequent years. The Company is considering that proposal and discussing the terms of a definitive agreement. At a royalty of 2.5% of net sales, the Company calculates that royalties through the end of the second quarter of 2014 would total $8,200. |
Note_7_Subsequent_Events
Note 7 - Subsequent Events | 6 Months Ended | |
Jun. 30, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events [Text Block] | ' | |
7 | SUBSEQUENT EVENTS | |
In July 2014, warrants to purchase 110,000 shares of common stock were exercised at $3.5137 per share for total proceeds of $387,000. | ||
On July 29, 2014, the Board of Directors declared a dividend on each share of outstanding Series A preferred stock, which represents the accrued unpaid dividends through the declaration date, and a dividend of $0.01 on each share of outstanding common stock, totaling aggregate dividends of approximately $124,000. All such dividends are payable in cash on August 27, 2014 to stockholders of record on August 19, 2014. |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Consolidation, Policy [Policy Text Block] | ' | ||||||||||||||||||||||||
Principles of Consolidation | |||||||||||||||||||||||||
The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. | |||||||||||||||||||||||||
Use of Estimates, Policy [Policy Text Block] | ' | ||||||||||||||||||||||||
Use of Estimates | |||||||||||||||||||||||||
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. | |||||||||||||||||||||||||
The most significant accounting estimates inherent in the preparation of the Company’s financial statements include estimates associated with obsolete inventory and the fair value of acquired intangible assets, including goodwill, revenue recognition, as well as those used in the determination of liabilities related to sales returns, distributor commissions and income taxes. Various assumptions and other factors prompt the determination of these significant estimates. The process of determining significant estimates is fact specific and takes into account historical experience and current and expected economic conditions. The actual results may differ materially and adversely from the Company’s estimates. To the extent that there are material differences between the estimates and actual results, future results of operations will be affected. | |||||||||||||||||||||||||
Income Tax, Policy [Policy Text Block] | ' | ||||||||||||||||||||||||
Income Taxes | |||||||||||||||||||||||||
The Company recognizes income taxes under the liability method of accounting for income taxes. Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse. Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized. The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. | |||||||||||||||||||||||||
The Company and its subsidiaries file income tax returns in the United States, various states, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2010, and is no longer subject to state income tax examinations for years prior to 2009. No jurisdictions are currently examining any income tax returns of the Company or its subsidiaries. | |||||||||||||||||||||||||
Fair Value of Financial Instruments, Policy [Policy Text Block] | ' | ||||||||||||||||||||||||
Fair Value of Financial Instruments | |||||||||||||||||||||||||
The carrying amounts of the Company’s financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. | |||||||||||||||||||||||||
Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items. | |||||||||||||||||||||||||
Revenue Recognition, Policy [Policy Text Block] | ' | ||||||||||||||||||||||||
Revenue Recognition | |||||||||||||||||||||||||
Product sales are recorded when the products are shipped and title passes to independent distributors. Product sales to distributors are made pursuant to a distributor agreement that provides for transfer of both title and risk of loss upon our delivery to the carrier that completes delivery to the distributors, which is commonly referred to as “F.O.B. Shipping Point.” The Company primarily receives payment by credit card at the time distributors place orders. Amounts received for unshipped product are recorded as deferred revenue. The Company’s sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. | |||||||||||||||||||||||||
Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. | |||||||||||||||||||||||||
Enrollment package revenue, including any nonrefundable set-up fees, is deferred and recognized over the term of the arrangement, generally twelve months. Enrollment packages provide distributors access to both a personalized marketing website and a business management system. No upfront costs are deferred as the amount is nominal. | |||||||||||||||||||||||||
Shipping charges billed to distributors are included in net sales. Costs associated with shipments are included in cost of sales. | |||||||||||||||||||||||||
Various taxes on the sale of products and enrollment packages to distributors are collected by the Company as an agent and remitted to the respective taxing authority. These taxes are presented on a net basis and recorded as a liability until remitted to the respective taxing authority. | |||||||||||||||||||||||||
Earnings Per Share, Policy [Policy Text Block] | ' | ||||||||||||||||||||||||
Income Per Share | |||||||||||||||||||||||||
Basic income per share is computed via the “two-class” method by dividing net income allocated to common stockholders by the weighted-average number of common shares outstanding during the period. Net income available to common stockholders is allocated to both common stock and participating securities as if all of the income for the period had been distributed. The Company’s Series A convertible preferred stock is a participating security due to its participation rights related to dividends declared by the Company. If dividends are distributed to common stockholders, the Company is also required to pay dividends to the holders of the preferred stock in an amount equal to the greater of (1) the amount of dividends then accrued and not previously paid on such shares of preferred stock or (2) the amount payable if dividends were distributed to the common stockholders on an as-converted basis. | |||||||||||||||||||||||||
Diluted income per share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock and warrants is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not yet recognized and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. The dilutive effect of the Company’s Series A convertible preferred stock is calculated using the more dilutive of the “two-class” method and the “if-converted” method, which assumes that the preferred stock was converted into common stock at the beginning of each period presented. | |||||||||||||||||||||||||
The following table illustrates the computation of basic and diluted income per share for the periods indicated (in thousands, except per share data): | |||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net income available to common stockholders | $ | 900 | $ | 6,107 | |||||||||||||||||||||
Less: undistributed earnings to participating securities | (6 | ) | (48 | ) | |||||||||||||||||||||
Net income allocated to common stockholders | 894 | 11,131 | $ | 0.08 | 6,059 | 11,821 | $ | 0.51 | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Warrants to purchase common stock | – | - | – | 444 | |||||||||||||||||||||
Non-vested restricted stock | – | 138 | – | 40 | |||||||||||||||||||||
Plus: reallocation of undistributed earnings to participating securities | – | 2 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net income allocated to common stockholders plus assumed conversions | $ | 894 | 11,269 | $ | 0.08 | $ | 6,061 | 12,305 | $ | 0.49 | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share Amount | Income | Shares | Per Share Amount | ||||||||||||||||||||
(Numerator) | (Denominator) | (Numerator) | (Denominator) | ||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net income available to common stockholders | $ | 1,183 | $ | 9,174 | |||||||||||||||||||||
Less: undistributed earnings to participating securities | (6 | ) | (80 | ) | |||||||||||||||||||||
Net income allocated to common stockholders | 1,177 | 11,100 | $ | 0.11 | 9,094 | 11,592 | $ | 0.78 | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Warrants to purchase common stock | – | – | – | 396 | |||||||||||||||||||||
Non-vested restricted stock | – | 165 | – | 62 | |||||||||||||||||||||
Plus: reallocation of undistributed earnings to participating securities | – | 4 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net income allocated to common stockholders plus assumed conversions | $ | 1,177 | 11,265 | $ | 0.11 | $ | 9,098 | 12,050 | $ | 0.76 | |||||||||||||||
Certain non-vested restricted stock is anti-dilutive upon applying the treasury stock method since the amount of compensation cost for future service results in the hypothetical repurchase of shares exceeding the actual number of shares to be vested. Other common stock equivalents are also anti-dilutive since the applicable exercise price exceeds the average market price of the related common stock for the period. | |||||||||||||||||||||||||
The following securities were not included for the time periods indicated as their effect would have been anti-dilutive: | |||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||
Warrants to purchase common stock | 2,259,731 | – | 2,986,285 | – | |||||||||||||||||||||
Non-vested restricted stock | 81,041 | – | 85,161 | – | |||||||||||||||||||||
Warrants to purchase 748,069 shares of common stock were still outstanding at June 30, 2014. Such warrants have expirations through April 21, 2015. | |||||||||||||||||||||||||
New Accounting Pronouncements, Policy [Policy Text Block] | ' | ||||||||||||||||||||||||
Recently Issued and Adopted Accounting Pronouncements | |||||||||||||||||||||||||
In March 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2013-05, Foreign Currency Matters (Topic 830) —Parent’s Accounting for the Cumulative Translation Adjustment upon Derecognition of Certain Subsidiaries or Groups of Assets within a Foreign Entity or of an Investment in a Foreign Entity, to clarify the guidance for entities that cease to hold a controlling financial interest in a subsidiary or group of assets within a foreign entity when (1) the subsidiary or group of assets is a nonprofit activity or a business (other than a sale of in substance real estate or conveyance of oil and gas mineral rights) and (2) there is a cumulative translation adjustment balance associated with that foreign entity. ASU 2013-05 is effective prospectively for reporting periods, including interim periods, beginning after December 15, 2013. The Company’s adoption of the standard on January 1, 2014 did not have a material impact on its consolidated financial statements. | |||||||||||||||||||||||||
In July 2013, the FASB issued ASU No. 2013-11, Income Taxes (Topic 740) — Presentation of an Unrecognized Tax Benefit When A Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, to provide explicit guidance on the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013 and should be applied prospectively to all tax benefits that exist at the effective date. Retrospective application is permitted. The Company’s adoption of the standard on January 1, 2014 did not have a material impact on its consolidated financial statements. | |||||||||||||||||||||||||
In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers, that outlines a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. ASU 2014-09 is based on the principle that an entity should recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. It also requires additional disclosure about the nature, amount, timing and uncertainty of revenue and cash flows arising from customer contracts, including significant judgments and changes in judgments and assets recognized from costs incurred to fulfill a contract. Entities have the option of using either a full retrospective or a modified retrospective approach for the adoption of the new standard. ASU 2014-09 becomes effective for reporting periods, including interim periods, beginning after December 15, 2016. Early adoption is not permitted. The company is currently assessing the impact that this standard will have on its consolidated financial statements. | |||||||||||||||||||||||||
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. |
Note_2_Summary_of_Significant_1
Note 2 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Jun. 30, 2014 | |||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | ||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | ' | ||||||||||||||||||||||||
Three Months Ended June 30, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share | Income | Shares | Per Share | ||||||||||||||||||||
(Numerator) | (Denominator) | Amount | (Numerator) | (Denominator) | Amount | ||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net income available to common stockholders | $ | 900 | $ | 6,107 | |||||||||||||||||||||
Less: undistributed earnings to participating securities | (6 | ) | (48 | ) | |||||||||||||||||||||
Net income allocated to common stockholders | 894 | 11,131 | $ | 0.08 | 6,059 | 11,821 | $ | 0.51 | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Warrants to purchase common stock | – | - | – | 444 | |||||||||||||||||||||
Non-vested restricted stock | – | 138 | – | 40 | |||||||||||||||||||||
Plus: reallocation of undistributed earnings to participating securities | – | 2 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net income allocated to common stockholders plus assumed conversions | $ | 894 | 11,269 | $ | 0.08 | $ | 6,061 | 12,305 | $ | 0.49 | |||||||||||||||
Six Months Ended June 30, | |||||||||||||||||||||||||
2013 | 2014 | ||||||||||||||||||||||||
Income | Shares | Per Share Amount | Income | Shares | Per Share Amount | ||||||||||||||||||||
(Numerator) | (Denominator) | (Numerator) | (Denominator) | ||||||||||||||||||||||
Basic EPS: | |||||||||||||||||||||||||
Net income available to common stockholders | $ | 1,183 | $ | 9,174 | |||||||||||||||||||||
Less: undistributed earnings to participating securities | (6 | ) | (80 | ) | |||||||||||||||||||||
Net income allocated to common stockholders | 1,177 | 11,100 | $ | 0.11 | 9,094 | 11,592 | $ | 0.78 | |||||||||||||||||
Effect of dilutive securities: | |||||||||||||||||||||||||
Warrants to purchase common stock | – | – | – | 396 | |||||||||||||||||||||
Non-vested restricted stock | – | 165 | – | 62 | |||||||||||||||||||||
Plus: reallocation of undistributed earnings to participating securities | – | 4 | |||||||||||||||||||||||
Diluted EPS: | |||||||||||||||||||||||||
Net income allocated to common stockholders plus assumed conversions | $ | 1,177 | 11,265 | $ | 0.11 | $ | 9,098 | 12,050 | $ | 0.76 | |||||||||||||||
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | ' | ||||||||||||||||||||||||
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||
2013 | 2014 | 2013 | 2014 | ||||||||||||||||||||||
Warrants to purchase common stock | 2,259,731 | – | 2,986,285 | – | |||||||||||||||||||||
Non-vested restricted stock | 81,041 | – | 85,161 | – |
Note_3_StockBased_Compensation1
Note 3 - Stock-Based Compensation (Tables) | 6 Months Ended | ||||||||
Jun. 30, 2014 | |||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||
Nonvested Restricted Stock Shares Activity [Table Text Block] | ' | ||||||||
Shares | Wtd. Avg. Price at Date of Issuance | ||||||||
Nonvested at December 31, 2013 | 54,986 | $ | 0.37 | ||||||
Vested | (53,323 | ) | 0.37 | ||||||
Nonvested at June 30, 2014 | 1,663 | 0.52 | |||||||
Schedule of Nonvested Share Activity [Table Text Block] | ' | ||||||||
Shares | Wtd. Avg. Grant-Date Fair Value | ||||||||
Nonvested at December 31, 2013 | 53,324 | $ | 1.37 | ||||||
Vested | (13,338 | ) | 1.37 | ||||||
Nonvested at June 30, 2014 | 39,986 | 1.37 |
Note_2_Summary_of_Significant_2
Note 2 - Summary of Significant Accounting Policies (Details) | 6 Months Ended |
Jun. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Class of Warrant or Right, Outstanding | 748,069 |
Investment Warrants Expiration Date | 21-Apr-15 |
Note_2_Summary_of_Significant_3
Note 2 - Summary of Significant Accounting Policies (Details) - Basic and Diluted Income Per Share (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 |
Note 2 - Summary of Significant Accounting Policies (Details) - Basic and Diluted Income Per Share [Line Items] | ' | ' | ' | ' |
Net income available to common stockholders | $6,107 | $900 | $9,174 | $1,183 |
Less: undistributed earnings to participating securities | -48 | -6 | -80 | -6 |
Net income allocated to common stockholders | 6,107 | 900 | 9,174 | 1,183 |
Net income allocated to common stockholders (in Shares) | 11,821 | 11,131 | 11,592 | 11,100 |
Effect of dilutive securities: | ' | ' | ' | ' |
Warrants to purchase common stock (in Shares) | 444 | ' | 396 | ' |
Plus: reallocation of undistributed earnings to participating securities | 2 | ' | 4 | ' |
Net income allocated to common stockholders plus assumed conversions | 6,061 | 894 | 9,098 | 1,177 |
Net income allocated to common stockholders plus assumed conversions (in Shares) | 12,305 | 11,269 | 12,050 | 11,265 |
Net income allocated to common stockholders plus assumed conversions (in Dollars per share) | $0.49 | $0.08 | $0.76 | $0.11 |
Restricted Stock [Member] | ' | ' | ' | ' |
Effect of dilutive securities: | ' | ' | ' | ' |
Non-vested restricted stock (in Shares) | 40 | 138 | 62 | 165 |
Distributed [Member] | ' | ' | ' | ' |
Note 2 - Summary of Significant Accounting Policies (Details) - Basic and Diluted Income Per Share [Line Items] | ' | ' | ' | ' |
Net income available to common stockholders | 6,059 | 894 | 9,094 | 1,177 |
Net income allocated to common stockholders | $6,059 | $894 | $9,094 | $1,177 |
Net income allocated to common stockholders (in Shares) | 11,821 | 11,131 | 11,592 | 11,100 |
Net income allocated to common stockholders (in Dollars per share) | $0.51 | $0.08 | $0.78 | $0.11 |
Note_2_Summary_of_Significant_4
Note 2 - Summary of Significant Accounting Policies (Details) - Antidilutive Securities Excluded From the Dilutive Calculations | 3 Months Ended | 6 Months Ended |
Jun. 30, 2013 | Jun. 30, 2013 | |
Warrant [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 2,259,731 | 2,986,285 |
Restricted Stock [Member] | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' |
Antidilutive Securities | 81,041 | 85,161 |
Note_3_StockBased_Compensation2
Note 3 - Stock-Based Compensation (Details) (USD $) | 0 Months Ended | 3 Months Ended | 6 Months Ended | |||
Mar. 15, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Aug. 13, 2012 | |
Note 3 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Allocated Share-based Compensation Expense | ' | $9,000 | $23,000 | $34,000 | $53,000 | ' |
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | ' | ' | ' | 0 | 0 | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | 47,000 | ' | 47,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | '1 year 6 months | ' | ' |
Stock Repurchase Program, Number of Shares Authorized to be Repurchased (in Shares) | ' | ' | ' | ' | ' | 100,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | '3 years | ' | ' | ' | ' | ' |
Restricted Stock [Member] | ' | ' | ' | ' | ' | ' |
Note 3 - Stock-Based Compensation (Details) [Line Items] | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | ' | $1,000 | ' | $1,000 | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | '73 days | ' | ' |
Note_3_StockBased_Compensation3
Note 3 - Stock-Based Compensation (Details) - Restricted Stock Activity (Restricted Stock [Member], USD $) | 6 Months Ended |
Jun. 30, 2014 | |
Restricted Stock [Member] | ' |
Note 3 - Stock-Based Compensation (Details) - Restricted Stock Activity [Line Items] | ' |
Nonvested at December 31, 2013 | 54,986 |
Nonvested at December 31, 2013 | $0.37 |
Nonvested at June 30, 2014 | 1,663 |
Nonvested at June 30, 2014 | $0.52 |
Vested | -53,323 |
Vested | $0.37 |
Note_3_StockBased_Compensation4
Note 3 - Stock-Based Compensation (Details) - Common Stock Unit Activity (USD $) | 6 Months Ended | |
Jun. 30, 2014 | Dec. 31, 2013 | |
Common Stock Unit Activity [Abstract] | ' | ' |
Shares | 39,986 | 53,324 |
Weighted Average Grant Date Fair Value | $1.37 | $1.37 |
Vested | -13,338 | ' |
Vested | $1.37 | ' |
Note_4_Stockholders_Equity_Det
Note 4 - Stockholders' Equity (Details) (USD $) | 0 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 0 Months Ended | 3 Months Ended | 6 Months Ended | ||||||
6-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 04, 2014 | Apr. 08, 2014 | Mar. 07, 2014 | 6-May-14 | Mar. 07, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | |
Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Series A Preferred Stock [Member] | Minimum [Member] | Maximum [Member] | ||||||||
Note 4 - Stockholders' Equity (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Preferred Stock, Dividends Per Share, Declared | ' | ' | ' | ' | ' | ' | ' | $0.02 | $0.82 | $0.02 | $0.84 | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.01 | $0.01 | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable (in Dollars) | ' | $25,000 | $25,000 | $25,000 | $62,000 | $158,000 | ' | ' | ' | ' | ' | ' | ' |
Dividends Payable, Amount Per Share | ' | ' | ' | ' | $0.01 | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights (in Shares) | ' | 747,883 | 747,883 | 747,883 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.51 | ' | ' | ' | ' | ' | $3.52 | ' | ' | ' | ' | $3.51 | $3.52 |
Proceeds from Warrant Exercises (in Dollars) | ' | ' | $2,600,000 | $2,630,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Note_5_Commitments_And_Conting1
Note 5 - Commitments And Contingencies (Details) | Jun. 30, 2014 | Dec. 31, 2013 | Oct. 31, 2007 | Jun. 30, 2014 | Jun. 30, 2014 | Oct. 31, 2007 | Nov. 18, 2007 | Oct. 31, 2007 |
USD ($) | USD ($) | USD ($) | Korean Business Segment [Member] | Korean Business Segment [Member] | Seven Year Warrants [Member] | Seven Year Warrants [Member] | One Year Warrants [Member] | |
KRW | USD ($) | |||||||
Note 5 - Commitments And Contingencies (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Other Assets, Noncurrent | $323,000 | $300,000 | ' | 144,000,000 | $142,000 | ' | ' | ' |
Convertible Debt | ' | ' | 4,250,000 | ' | ' | ' | ' | ' |
Term of Warrant | ' | ' | ' | ' | ' | '7 years | ' | '1 year |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 747,883 | ' | ' | ' | ' | 1,495,952 | 1,495,952 | 1,495,952 |
Registration Payment Arrangement, Accrual Carrying Value | $0 | ' | ' | ' | ' | ' | ' | ' |
Note_6_Related_Party_Transacti1
Note 6 - Related Party Transactions (Details) (Broady Health Sciences [Member], USD $) | 1 Months Ended | 3 Months Ended | 6 Months Ended | ||
Feb. 28, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2014 | Jun. 30, 2013 | |
Note 6 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' |
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ' | ' | ' | ' |
Soothe [Member] | ' | ' | ' | ' | ' |
Note 6 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' |
Royalty Rate | ' | ' | ' | 2.50% | ' |
Accrued Royalties | ' | $8,200 | ' | $8,200 | ' |
ReStor [Member] | ' | ' | ' | ' | ' |
Note 6 - Related Party Transactions (Details) [Line Items] | ' | ' | ' | ' | ' |
Royalty Rate | 2.50% | ' | ' | ' | ' |
Royalty Expense | ' | $36,000 | $8,000 | $65,000 | $15,000 |
Number of Days Termination Notice | ' | ' | ' | '120 days | ' |
Note_7_Subsequent_Events_Detai
Note 7 - Subsequent Events (Details) (USD $) | 0 Months Ended | 3 Months Ended | 5 Months Ended | 6 Months Ended | 4 Months Ended | 3 Months Ended | ||
6-May-14 | Jun. 30, 2014 | Jun. 30, 2014 | Jun. 30, 2014 | Mar. 07, 2014 | Jul. 31, 2014 | Jul. 29, 2014 | Jul. 31, 2014 | |
Common Stock [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||||
Subsequent Event [Member] | ||||||||
Note 7 - Subsequent Events (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | ' | 747,883 | 747,883 | 747,883 | ' | ' | ' | 110,000 |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $3.51 | ' | ' | ' | $3.52 | ' | ' | $3.51 |
Proceeds from Warrant Exercises | ' | ' | $2,600,000 | $2,630,000 | ' | $387,000 | ' | ' |
Common Stock, Dividends, Per Share, Declared | $0.01 | $0.01 | ' | $0.01 | ' | ' | $0.01 | ' |
Dividends Payable, Current | ' | ' | ' | ' | ' | ' | $124,000 | ' |