Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Jul. 21, 2015 | |
Entity Registrant Name | NATURAL HEALTH TRENDS CORP | |
Entity Central Index Key | 912,061 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Common Stock, Shares Outstanding (in shares) | 12,395,938 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2015 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $ 74,422,000 | $ 44,816,000 |
Accounts receivable | 297,000 | 107,000 |
Inventories, net | 5,287,000 | 3,760,000 |
Other current assets | 1,643,000 | 930,000 |
Total current assets | 81,649,000 | 49,613,000 |
Property and equipment, net | 702,000 | 476,000 |
Goodwill | 1,764,000 | 1,764,000 |
Restricted cash | 3,591,000 | 315,000 |
Other assets | 598,000 | 372,000 |
Total assets | 88,304,000 | 52,540,000 |
Current liabilities: | ||
Accounts payable | 3,082,000 | 2,232,000 |
Income taxes payable | 323,000 | 268,000 |
Accrued distributor commissions | 14,338,000 | 8,853,000 |
Other accrued expenses | 10,751,000 | 6,743,000 |
Deferred revenue | 8,151,000 | 2,687,000 |
Deferred tax liability | 65,000 | 65,000 |
Amounts held in distributor eWallets | 8,533,000 | 2,064,000 |
Other current liabilities | 1,696,000 | 1,513,000 |
Total current liabilities | 46,939,000 | 24,425,000 |
Long-term incentive | 1,524,000 | 1,665,000 |
Total liabilities | 48,463,000 | $ 26,090,000 |
Commitments and contingencies | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | 0 | $ 0 |
Common stock, $0.001 par value; 50,000,000 shares authorized; 12,891,317 and 12,979,414 shares issued at December 31, 2014 and June 30, 2015, respectively | 13,000 | 13,000 |
Additional paid-in capital | 85,928,000 | 85,750,000 |
Accumulated deficit | (36,549,000) | (54,799,000) |
Accumulated other comprehensive income | 135,000 | 62,000 |
Treasury stock, at cost; 384,220 and 583,476 shares at December 31, 2014 and June 30, 2015, respectively | (9,686,000) | (4,576,000) |
Total stockholders’ equity | 39,841,000 | 26,450,000 |
Total liabilities and stockholders’ equity | $ 88,304,000 | $ 52,540,000 |
Consolidated Balance Sheets (C3
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Jun. 30, 2015 | Dec. 31, 2014 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 12,979,414 | 12,891,317 |
Treasury stock, shares (in shares) | 583,476 | 384,220 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - Scenario, Unspecified [Domain] - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net sales | $ 69,716 | $ 34,189 | $ 110,425 | $ 57,351 |
Cost of sales | 14,094 | 7,509 | 23,024 | 12,761 |
Gross profit | 55,622 | 26,680 | 87,401 | 44,590 |
Operating expenses: | ||||
Distributor commissions | 35,010 | 15,458 | 53,407 | 25,881 |
Selling, general and administrative expenses (including stock-based compensation expense of $9 and $20 during the three months ended June 30, 2014 and 2015, respectively, and $34 and $35 during the six months ended June 30, 2014 and 2015, respectively) | 8,281 | 5,031 | 14,704 | 9,378 |
Depreciation and amortization | 68 | 23 | 109 | 44 |
Total operating expenses | 43,359 | 20,512 | 68,220 | 35,303 |
Income from operations | 12,263 | 6,168 | 19,181 | 9,287 |
Other income (expense), net | 132 | 1 | 23 | (8) |
Income before income taxes | 12,395 | 6,169 | 19,204 | 9,279 |
Income tax provision | 122 | 59 | 193 | 98 |
Net income | $ 12,273 | 6,110 | $ 19,011 | 9,181 |
Preferred stock dividends | (3) | (7) | ||
Net income available to common stockholders | $ 12,273 | $ 6,107 | $ 19,011 | $ 9,174 |
Income per common share: | ||||
Basic (in dollars per share) | $ 0.99 | $ 0.51 | $ 1.53 | $ 0.78 |
Diluted (in dollars per share) | $ 0.98 | $ 0.49 | $ 1.52 | $ 0.76 |
Weighted-average number of common shares outstanding: | ||||
Basic (in shares) | 12,403 | 11,821 | 12,428 | 11,592 |
Diluted (in shares) | 12,461 | 12,305 | 12,513 | 12,050 |
Cash dividends declared per share: | ||||
Common (in dollars per share) | $ 0.03 | $ 0.005 | $ 0.05 | $ 0.01 |
Series A preferred stock (in dollars per share) | $ 0.02 | $ 0.835 |
Consolidated Statements of Ope5
Consolidated Statements of Operations (Unaudited) (Parentheticals) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Stock-based compensation expense included in selling, general, and administrative expense | $ 20 | $ 9 | $ 35 | $ 34 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Net income | $ 12,273 | $ 6,110 | $ 19,011 | $ 9,181 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 16 | $ 42 | 153 | $ 15 |
Release of cumulative translation adjustment | (82) | (82) | ||
Net change in foreign currency translation adjustment | (66) | $ 42 | 71 | $ 15 |
Unrealized gains on available-for-sale securities | 2 | 2 | ||
Comprehensive income | $ 12,209 | $ 6,152 | $ 19,084 | $ 9,196 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 19,011,000 | $ 9,181,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 109,000 | 44,000 |
Stock-based compensation | 35,000 | $ 34,000 |
Cumulative translation adjustment realized in net income | (82,000) | |
Changes in assets and liabilities: | ||
Accounts receivable | (186,000) | $ 24,000 |
Inventories, net | (1,524,000) | (2,502,000) |
Other current assets | (672,000) | (104,000) |
Other assets | (232,000) | (16,000) |
Accounts payable | 849,000 | 1,586,000 |
Income taxes payable | 56,000 | 86,000 |
Accrued distributor commissions | 5,471,000 | 1,268,000 |
Other accrued expenses | 4,674,000 | 2,466,000 |
Deferred revenue | 5,459,000 | $ 606,000 |
Amounts held in distributor eWallets | 6,468,000 | |
Other current liabilities | 186,000 | $ 152,000 |
Long-term incentive | (141,000) | |
Net cash provided by operating activities | 39,481,000 | $ 12,825,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment, net | (333,000) | $ (97,000) |
Increase in restricted cash | (3,272,000) | |
Net cash used in investing activities | (3,605,000) | $ (97,000) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Proceeds from exercise of warrants | 309,000 | 2,630,000 |
Repurchase of common stock | (6,082,000) | (63,000) |
Dividends paid | (621,000) | (195,000) |
Net cash provided by (used in) financing activities | (6,394,000) | 2,372,000 |
Effect of exchange rates on cash and cash equivalents | 124,000 | (28,000) |
Net increase in cash and cash equivalents | 29,606,000 | 15,072,000 |
CASH AND CASH EQUIVALENTS, beginning of period | 44,816,000 | 14,550,000 |
CASH AND CASH EQUIVALENTS, end of period | $ 74,422,000 | 29,622,000 |
NON-CASH FINANCING ACTIVITY: | ||
Conversion of preferred stock | 29,000 | |
Cash dividends declared, but not yet paid | $ 25,000 | |
Issuance of treasury stock | $ 666,000 |
Note 1 - Nature of Operations a
Note 1 - Nature of Operations and Basis of Presentation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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; South Korea; Japan; and Europe, which consists of Italy and Slovenia. We also operate within certain Commonwealth of Independent States (Russia and Kazakhstan) through our engagement with a local service provider. 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 2014 Annual Report on Form 10-K filed with the United States Securities and Exchange Commission (SEC) on March 6, 2015. |
Note 2 - Summary of Significant
Note 2 - Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
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. Cash and Cash Equivalents As of June 30, 2015, cash and cash equivalents include $2.8 million held in banks located within China, which is subject to foreign currency controls. Additionally, as of June 30, 2015, cash and cash equivalents include the Company's investments in debt securities, comprising municipal notes and bonds. The Company considers all highly liquid investments with original maturities of three months or less when purchased and have insignificant interest rate risk to be cash equivalents. Debt securities classified as cash equivalents are required to be accounted for in accordance with ASC 320, Investments - Debt and Equity Securities Cash and cash equivalents at the end of each period were as follows (in thousands): December 31, 2014 June 30, 2015 Cash $ 37,314 $ 51,852 Available-for-sale investments 7,502 22,570 Total cash and cash equivalents $ 44,816 $ 74,422 Restricted Cash In June 2015, the Company funded a bank deposit account in the amount of CNY 20 million (USD 3.3 million) in anticipation of submitting a direct selling license application. Such deposit is required by Chinese laws to establish a consumer protection fund. 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 2011, and is no longer subject to state income tax examinations for years prior to 2010. 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. Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands): December 31, 2014 June 30, 2015 Adjusted Cost Gross Unrealized Gains Fair Value Adjusted Cost Gross Unrealized Gains Fair Value Municipal bonds and notes $ - $ - $ - $ 10,003 $ 2 $ 10,005 Financial institution instruments 7,502 - 7,502 12,565 - 12,565 Total available-for-sale investments $ 7,502 $ - $ 7,502 $ 22,568 $ 2 $ 22,570 Financial institution instruments include instruments issued or managed by financial institutions such as money market fund deposits and time deposits. Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income by component for the first six months of 2015 were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Gains on Available-For-Sale Investments Total Balance, December 31, 2014 $ 62 $ - $ 62 Other comprehensive income before reclassifications 153 2 155 Amounts reclassified out of accumulated other comprehensive income (82 ) - (82 ) Balance, June 30, 2015 $ 133 $ 2 $ 135 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 for the three and six month periods ended June 30, 2014 were 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 periods. Net income available to common stockholders was allocated to both common stock and participating securities as if all of the income for the periods had been distributed. The Company’s Series A convertible preferred stock was a participating security due to its participation rights related to dividends declared by the Company. If dividends were distributed to common stockholders, the Company was 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. For the three and six month periods ended June 30, 2014, the dilutive effect of the Company’s Series A convertible preferred stock was 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 the period. 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, 2014 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 6,107 $ 12,273 Less: undistributed earnings to participating securities (48 ) - Net income allocated to common stockholders 6,059 11,821 $ 0.51 12,273 12,403 $ 0.99 Effect of dilutive securities: Warrants to purchase common stock - 444 - 6 Non-vested restricted stock - 40 - 52 Plus: reallocation of undistributed earnings to participating securities 2 - Diluted EPS: Net income allocated to common stockholders plus assumed conversions $ 6,061 12,305 $ 0.49 $ 12,273 12,461 $ 0.98 Six Months Ended June 30, 2014 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 9,174 $ 19,011 Less: undistributed earnings to participating securities (80 ) - Net income allocated to common stockholders 9,094 11,592 $ 0.78 19,011 12,428 $ 1.53 Effect of dilutive securities: Warrants to purchase common stock - 396 - 39 Non-vested restricted stock - 62 - 46 Plus: reallocation of undistributed earnings to participating securities 4 - Diluted EPS: Net income allocated to common stockholders plus assumed conversions $ 9,098 12,050 $ 0.76 $ 19,011 12,513 $ 1.52 Recently Issued and Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers In July 2015, the FASB issued ASU No. 2015-11, Inventory: Simplifying the Measurement of Inventory 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 - Stock-based Compensati
Note 3 - Stock-based Compensation | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 3. STOCK-BASED COMPENSATION Stock-based compensation expense totaled $9,000 and $20,000 for the three months ended June 30, 2014 and 2015, respectively, and $34,000 and $35,000 for the six months ended June 30, 2014 and 2015, respectively. No tax benefits were attributed to the stock-based compensation because a valuation allowance was maintained for substantially all net deferred tax assets. On January 20, 2015, the Company’s Board of Directors granted 60,960 shares of restricted common stock to certain employees and its outside directors for the purpose of further aligning their interest with those of its stockholders and, as to the employee shares, settling fiscal 2014 performance incentives. The shares vest on a quarterly basis over the next three years and are subject to forfeiture in the event of their termination of service to the Company under specified circumstances. On February 11, 2015, the Board of Directors granted an additional 6,116 shares of restricted common stock subject to the same conditions. The following table summarizes the Company’s restricted stock activity: Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2014 - $ - Granted 67,076 12.15 Vested (11,182 ) 12.15 Nonvested at June 30, 2015 55,894 12.15 As of June 30, 2015, total unrecognized stock-based compensation expense related to non-vested restricted stock was $128,000, which is expected to be recognized over a weighted-average period of 2.5 years. On August 13, 2012, the 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 Exchange Act 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 latest 10b5-1 plan terminated in November 2014, and the Company, as Trustee, has not entered into a new 10b5-1 plan. 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, 2014 23,984 $ 1.37 Vested (12,004 ) 1.37 Nonvested at June 30, 2015 11,980 1.37 As of June 30, 2015, total unrecognized stock-based compensation expense related to these stock awards $14,000, which is expected to be recognized over a weighted-average period of 0.5 years. |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 4. STOCKHOLDERS’ EQUITY Dividends On February 27, 2015, the Board of Directors declared a cash dividend of $0.02 on each share of common stock outstanding, payable on March 27, 2015 to stockholders of record on March 17, 2015. On May 4, 2015, the Board of Directors declared a cash dividend of $0.03 on each share of common stock outstanding, payable on May 29, 2015 to stockholders of record on May 19, 2015. Treasury Stock On January 22, 2015, the Company entered into a Stock Repurchase Agreement with George K. Broady, a director of the Company and owner of more than 5% of its outstanding common stock. The agreement provided for the Company’s purchase from Mr. Broady in off-the-market, private transactions of a total of 91,817 shares of the Company’s common stock, which would be purchased at the rate of 5,000 shares each trading day following the date of the agreement until all of such shares were purchased (see Note 6). The shares would be purchased at a per share price equal to the closing price per share of the Company’s common stock on the preceding trading day, as reported on the primary market in which the Company’s common stock is publicly traded. The Company’s purchases concluded on February 19, 2015, and resulted in an aggregate purchase price of $1.1 million. On May 4, 2015, the Board of Directors approved a stock repurchase program of up to $5.0 million of the Company’s outstanding shares of common stock. In connection therewith, the Company was advised by Mr. Broady that he would participate in the stock repurchase program on a basis roughly proportional to his ownership interest (see Note 6). As such, the Company authorized its broker to proceed with the purchase of shares of the Company’s common stock in the open market for a total purchase price of $3.5 million in accordance with Rules 10b5-1 and 10b-18 under the Exchange Act. The open market repurchases were completed on May 12, 2015. The stock repurchase program, which included both open market purchases and the purchase of shares from Mr. Broady, resulted in the Company purchasing a total of 186,519 shares of its common stock for an aggregate purchase price of $5.0 million, plus transaction costs. Common Stock Purchase Warrants In April 2015, warrants to purchase 88,097 shares of common stock were exercised at $3.5043 per share for total proceeds of $309,000. |
Note 5 - Contingencies
Note 5 - Contingencies | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 5. CONTINGENCIES 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, 2015, non-current other assets include KRW 223 million (USD $198,000) 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. |
Note 6- Related Party Transacti
Note 6- Related Party Transactions | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 6. RELATED PARTY TRANSACTIONS Product Royalties 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™. Also, on April 29, 2015, the Company entered into a Royalty Agreement and License with BHS regarding the manufacture and sale of a product called Soothe Stock Repurchase Agreements On January 22, 2015, the Company entered into a Stock Repurchase Agreement with George K. Broady, a director of the Company and owner of more than 5% of its outstanding common stock. The agreement provided for the Company’s purchase from Mr. Broady in off-the-market, private transactions of a total of 91,817 shares of the Company’s common stock, which would be purchased at the rate of 5,000 shares each trading day following the date of the agreement until all of such shares were purchased. The shares would be purchased at a per share price equal to the closing price per share of the Company’s common stock on the preceding trading day, as reported on the primary market in which the Company’s common stock is publicly traded. The Company’s purchases concluded on February 19, 2015, and resulted in an aggregate purchase price of $1.1 million. See Note 4. On May 7, 2015, the Company entered into a Stock Repurchase Agreement with Mr. Broady that provided for the Company’s purchase of common stock from Mr. Broady in off-the-market, private transactions at a rate equal to 0.4286 times the number of shares purchased by the Company’s broker in conjunction with the stock repurchase program authorized by the Company’s Board of Directors on May 4, 2015. The Company’s purchases from Mr. Broady concluded on May 13, 2015, and resulted in an aggregate purchase price of $1.5 million. See Note 4. |
Note 7 - Subsequent Events
Note 7 - Subsequent Events | 6 Months Ended |
Jun. 30, 2015 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 7. SUBSEQUENT EVENTS On July 28, 2015, the Board of Directors declared a cash dividend of $0.04 on each share of common stock outstanding. Such dividends are payable on August 28, 2015 to stockholders of record on August 18, 2015. Payment of any future dividends on shares of common stock will be at the discretion of the Company’s Board of Directors. Also on July 28, 2015, the Board of Directors approved a stock repurchase program of up to $15.0 million of the Company’s outstanding shares of common stock, including $5.0 million of repurchases intended to be executed as soon as possible. Such repurchases are expected to be executed to the extent that the Company’s earnings and cash-on-hand allow, and are anticipated to be conducted through December 2016. Such repurchases will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Securities Exchange Act of 1934 (the “Exchange Act”). For all or a portion of the authorized repurchase amount, the Company may enter into one or more plans that are compliant with Rule 10b5-1 of the Exchange Act that are designed to facilitate these purchases. The repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. The Company anticipates that George K. Broady, its largest shareholder and a member of its Board of Directors, will participate in the Company’s repurchase program on a basis roughly proportional to his ownership interest. To that end, the Company and Mr. Broady are in discussions regarding the terms of a mutually agreeable stock purchase agreement. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
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. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents As of June 30, 2015, cash and cash equivalents include $2.8 million held in banks located within China, which is subject to foreign currency controls. Additionally, as of June 30, 2015, cash and cash equivalents include the Company's investments in debt securities, comprising municipal notes and bonds. The Company considers all highly liquid investments with original maturities of three months or less when purchased and have insignificant interest rate risk to be cash equivalents. Debt securities classified as cash equivalents are required to be accounted for in accordance with ASC 320, Investments - Debt and Equity Securities Cash and cash equivalents at the end of each period were as follows (in thousands): December 31, 2014 June 30, 2015 Cash $ 37,314 $ 51,852 Available-for-sale investments 7,502 22,570 Total cash and cash equivalents $ 44,816 $ 74,422 |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash In June 2015, the Company funded a bank deposit account in the amount of CNY 20 million (USD 3.3 million) in anticipation of submitting a direct selling license application. Such deposit is required by Chinese laws to establish a consumer protection fund. |
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 2011, and is no longer subject to state income tax examinations for years prior to 2010. 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. Available-for-sale investments included in cash equivalents at the end of each period were as follows (in thousands): December 31, 2014 June 30, 2015 Adjusted Cost Gross Unrealized Gains Fair Value Adjusted Cost Gross Unrealized Gains Fair Value Municipal bonds and notes $ - $ - $ - $ 10,003 $ 2 $ 10,005 Financial institution instruments 7,502 - 7,502 12,565 - 12,565 Total available-for-sale investments $ 7,502 $ - $ 7,502 $ 22,568 $ 2 $ 22,570 Financial institution instruments include instruments issued or managed by financial institutions such as money market fund deposits and time deposits. |
Comprehensive Income, Policy [Policy Text Block] | Accumulated Other Comprehensive Income The changes in accumulated other comprehensive income by component for the first six months of 2015 were as follows (in thousands): Foreign Currency Translation Adjustment Unrealized Gains on Available-For-Sale Investments Total Balance, December 31, 2014 $ 62 $ - $ 62 Other comprehensive income before reclassifications 153 2 155 Amounts reclassified out of accumulated other comprehensive income (82 ) - (82 ) Balance, June 30, 2015 $ 133 $ 2 $ 135 |
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 for the three and six month periods ended June 30, 2014 were 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 periods. Net income available to common stockholders was allocated to both common stock and participating securities as if all of the income for the periods had been distributed. The Company’s Series A convertible preferred stock was a participating security due to its participation rights related to dividends declared by the Company. If dividends were distributed to common stockholders, the Company was 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. For the three and six month periods ended June 30, 2014, the dilutive effect of the Company’s Series A convertible preferred stock was 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 the period. 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, 2014 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 6,107 $ 12,273 Less: undistributed earnings to participating securities (48 ) - Net income allocated to common stockholders 6,059 11,821 $ 0.51 12,273 12,403 $ 0.99 Effect of dilutive securities: Warrants to purchase common stock - 444 - 6 Non-vested restricted stock - 40 - 52 Plus: reallocation of undistributed earnings to participating securities 2 - Diluted EPS: Net income allocated to common stockholders plus assumed conversions $ 6,061 12,305 $ 0.49 $ 12,273 12,461 $ 0.98 Six Months Ended June 30, 2014 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 9,174 $ 19,011 Less: undistributed earnings to participating securities (80 ) - Net income allocated to common stockholders 9,094 11,592 $ 0.78 19,011 12,428 $ 1.53 Effect of dilutive securities: Warrants to purchase common stock - 396 - 39 Non-vested restricted stock - 62 - 46 Plus: reallocation of undistributed earnings to participating securities 4 - Diluted EPS: Net income allocated to common stockholders plus assumed conversions $ 9,098 12,050 $ 0.76 $ 19,011 12,513 $ 1.52 |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Issued and Adopted Accounting Pronouncements In May 2014, the FASB issued ASU No. 2014-09, Revenue From Contracts With Customers In July 2015, the FASB issued ASU No. 2015-11, Inventory: Simplifying the Measurement of Inventory 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 Significa16
Note 2 - Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Schedule of Cash and Cash Equivalents [Table Text Block] | December 31, 2014 June 30, 2015 Cash $ 37,314 $ 51,852 Available-for-sale investments 7,502 22,570 Total cash and cash equivalents $ 44,816 $ 74,422 |
Available-for-sale Securities [Table Text Block] | December 31, 2014 June 30, 2015 Adjusted Cost Gross Unrealized Gains Fair Value Adjusted Cost Gross Unrealized Gains Fair Value Municipal bonds and notes $ - $ - $ - $ 10,003 $ 2 $ 10,005 Financial institution instruments 7,502 - 7,502 12,565 - 12,565 Total available-for-sale investments $ 7,502 $ - $ 7,502 $ 22,568 $ 2 $ 22,570 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustment Unrealized Gains on Available-For-Sale Investments Total Balance, December 31, 2014 $ 62 $ - $ 62 Other comprehensive income before reclassifications 153 2 155 Amounts reclassified out of accumulated other comprehensive income (82 ) - (82 ) Balance, June 30, 2015 $ 133 $ 2 $ 135 |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended June 30, 2014 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 6,107 $ 12,273 Less: undistributed earnings to participating securities (48 ) - Net income allocated to common stockholders 6,059 11,821 $ 0.51 12,273 12,403 $ 0.99 Effect of dilutive securities: Warrants to purchase common stock - 444 - 6 Non-vested restricted stock - 40 - 52 Plus: reallocation of undistributed earnings to participating securities 2 - Diluted EPS: Net income allocated to common stockholders plus assumed conversions $ 6,061 12,305 $ 0.49 $ 12,273 12,461 $ 0.98 Six Months Ended June 30, 2014 2015 Income (Numerator) Shares (Denominator) Per Share Amount Income (Numerator) Shares (Denominator) Per Share Amount Basic EPS: Net income available to common stockholders $ 9,174 $ 19,011 Less: undistributed earnings to participating securities (80 ) - Net income allocated to common stockholders 9,094 11,592 $ 0.78 19,011 12,428 $ 1.53 Effect of dilutive securities: Warrants to purchase common stock - 396 - 39 Non-vested restricted stock - 62 - 46 Plus: reallocation of undistributed earnings to participating securities 4 - Diluted EPS: Net income allocated to common stockholders plus assumed conversions $ 9,098 12,050 $ 0.76 $ 19,011 12,513 $ 1.52 |
Note 3 - Stock-based Compensa17
Note 3 - Stock-based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Notes Tables | |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2014 - $ - Granted 67,076 12.15 Vested (11,182 ) 12.15 Nonvested at June 30, 2015 55,894 12.15 |
Schedule of Nonvested Share Activity [Table Text Block] | Shares Wtd. Avg. Grant-Date Fair Value Nonvested at December 31, 2014 23,984 $ 1.37 Vested (12,004 ) 1.37 Nonvested at June 30, 2015 11,980 1.37 |
Note 2 - Summary of Significa18
Note 2 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands, ¥ in Millions | Jun. 30, 2015USD ($) | Jun. 30, 2015CNY (¥) | Dec. 31, 2014USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2013USD ($) |
CHINA | |||||
Cash and Cash Equivalents, at Carrying Value | $ 2,800 | ||||
Bank Deposit in Anticipation of Submitting Direct Selling License Application [Member] | |||||
Restricted Cash and Cash Equivalents | 3,300 | ¥ 20 | |||
Cash and Cash Equivalents, at Carrying Value | $ 74,422 | $ 44,816 | $ 29,622 | $ 14,550 |
Note 2 - Cash and Cash Equivale
Note 2 - Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Cash [Member] | ||
Cash and cash equivalents | $ 51,852 | $ 37,314 |
Available-for-Sale Investments[ Member] | ||
Cash and cash equivalents | 22,570 | 7,502 |
Cash and cash equivalents | $ 74,422 | $ 44,816 |
Note 2 - Available-for-sale Inv
Note 2 - Available-for-sale Investments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Municipal Bonds and Notes [Member] | ||
Adjusted cost | $ 10,003 | |
Gross unrealized gains | 2 | |
Fair value | 10,005 | |
Financial Institution Instruments [Member] | ||
Adjusted cost | $ 12,565 | $ 7,502 |
Gross unrealized gains | ||
Fair value | $ 12,565 | $ 7,502 |
Adjusted cost | 22,568 | $ 7,502 |
Gross unrealized gains | 2 | |
Fair value | $ 22,570 | $ 7,502 |
Note 2 - Changes in Accumulated
Note 2 - Changes in Accumulated Other Comprehensive Income (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2015USD ($) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance, December 31, 2014 | $ 62 |
Other comprehensive income before reclassifications | 153 |
Amounts reclassified out of accumulated other comprehensive income | (82) |
Balance, June 30, 2015 | $ 133 |
Accumulated Net Investment Gain (Loss) Attributable to Parent [Member] | |
Balance, December 31, 2014 | |
Other comprehensive income before reclassifications | $ 2 |
Amounts reclassified out of accumulated other comprehensive income | |
Balance, June 30, 2015 | $ 2 |
Balance, December 31, 2014 | 62 |
Other comprehensive income before reclassifications | 155 |
Amounts reclassified out of accumulated other comprehensive income | (82) |
Balance, June 30, 2015 | $ 135 |
Note 2 - Basic and Diluted Inco
Note 2 - Basic and Diluted Income Per Share (Details) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Distributed [Member] | ||||
Basic EPS: | ||||
Net income available to common stockholders | $ 12,273 | $ 6,059 | $ 19,011 | $ 9,094 |
Net income allocated to common stockholders (in shares) | 12,403 | 11,821 | 12,428 | 11,592 |
Net income allocated to common stockholders (in dollars per share) | $ 0.99 | $ 0.51 | $ 1.53 | $ 0.78 |
Restricted Stock [Member] | ||||
Effect of dilutive securities: | ||||
Non-vested restricted stock (in shares) | 52 | 40 | 46 | 62 |
Net income available to common stockholders | $ 12,273 | $ 6,107 | $ 19,011 | $ 9,174 |
Less: undistributed earnings to participating securities | $ (48) | $ (80) | ||
Net income allocated to common stockholders (in shares) | 12,403 | 11,821 | 12,428 | 11,592 |
Net income allocated to common stockholders (in dollars per share) | $ 0.99 | $ 0.51 | $ 1.53 | $ 0.78 |
Warrants to purchase common stock (in shares) | 6 | 444 | 39 | 396 |
Plus: reallocation of undistributed earnings to participating securities | $ 2 | $ 4 | ||
Diluted EPS: | ||||
Net income allocated to common stockholders plus assumed conversions | $ 12,273 | $ 6,061 | $ 19,011 | $ 9,098 |
Net income allocated to common stockholders plus assumed conversions (in shares) | 12,461 | 12,305 | 12,513 | 12,050 |
Net income allocated to common stockholders plus assumed conversions (in dollars per share) | $ 0.98 | $ 0.49 | $ 1.52 | $ 0.76 |
Note 3 - Stock-based Compensa23
Note 3 - Stock-based Compensation (Details Textual) - USD ($) | Feb. 11, 2015 | Jan. 20, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2013 | Aug. 13, 2012 |
Restricted Stock [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 6,116 | 60,960 | 67,076 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | |||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 128,000 | $ 128,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 182 days | |||||||
Employee Service Share-based Compensation, Tax Benefit from Compensation Expense | $ 0 | |||||||
Allocated Share-based Compensation Expense | 20,000 | $ 9,000 | 35,000 | $ 34,000 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 14,000 | $ 14,000 | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 182 days | |||||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 100,000 | |||||||
Share-based Compensation Incentive Compensation Period | 3 years |
Note 3 - Stock-based Compensa24
Note 3 - Stock-based Compensation - Restricted Stock Activity (Details) - Restricted Stock [Member] - $ / shares | 6 Months Ended |
Jun. 30, 2015 | |
Nonvested (in shares) | |
Nonvested (in dollars per share) | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 67,076 |
Granted (in dollars per share) | $ 12.15 |
Vested (in shares) | (11,182) |
Vested (in dollars per share) | $ 12.15 |
Nonvested (in shares) | 55,894 |
Nonvested (in dollars per share) | $ 12.15 |
Note 3 - Stock-based Compensa25
Note 3 - Stock-based Compensation - Common Stock Unit Activity (Details) - 6 months ended Jun. 30, 2015 - $ / shares | Total |
Nonvested (in shares) | 23,984 |
Nonvested (in dollars per share) | $ 1.37 |
Vested (in shares) | (12,004) |
Vested (in dollars per share) | $ 1.37 |
Nonvested at June 30, 2015 (in shares) | 11,980 |
Nonvested at June 30, 2015 (in dollars per share) | $ 1.37 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Details Textual) - USD ($) | May. 13, 2015 | May. 12, 2015 | May. 04, 2015 | Feb. 27, 2015 | Feb. 19, 2015 | Apr. 30, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jan. 22, 2015 |
George K. Broady [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||||||||
Treasury Stock, Shares, Acquired | 91,817 | ||||||||||
Stock Repurchase Program, Number of Shares Repurchased Per Day | 5,000 | ||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,500,000 | $ 1,100,000 | |||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.005 | $ 0.05 | $ 0.01 | |||||
Treasury Stock, Shares, Acquired | 186,519 | ||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 5,000,000 | ||||||||||
Stock Repurchase Program, Authorized Amount | $ 5,000,000 | ||||||||||
Treasury Stock, Value, Acquired, Cost Method, Excluding Related Party | $ 3,500,000 | ||||||||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 88,097 | ||||||||||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 3.5043 | ||||||||||
Proceeds from Warrant Exercises | $ 309,000 | $ 309,000 | $ 2,630,000 |
Note 5 - Contingencies (Details
Note 5 - Contingencies (Details Textual) - Jun. 30, 2015 ₩ in Millions | KRW (₩) | USD ($) |
Other Noncurrent Assets [Member] | ||
Distributor Claims Reserve | ₩ 223 | $ 198,000 |
Note 6- Related Party Transac28
Note 6- Related Party Transactions (Details Textual) | May. 13, 2015USD ($) | May. 12, 2015USD ($)shares | Apr. 29, 2015 | Feb. 19, 2015USD ($)shares | Feb. 28, 2013 | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($) | Jan. 22, 2015 |
Broady Health Sciences [Member] | Soothe [Member] | |||||||||||
Royalty Rate | 2.50% | ||||||||||
Royalty Expense | $ 1,500 | $ 1,400 | $ 3,900 | $ 3,200 | $ 11,700 | ||||||
Number of Days Termination Notice | 120 days | ||||||||||
Broady Health Sciences [Member] | ReStore [Member] | |||||||||||
Royalty Rate | 2.50% | ||||||||||
Royalty Expense | $ 144,000 | $ 36,000 | $ 256,000 | $ 65,000 | |||||||
Number of Days Termination Notice | 120 days | ||||||||||
George Broady Member | |||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||||||||
George K. Broady [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 5.00% | ||||||||||
Treasury Stock, Shares, Acquired | shares | 91,817 | ||||||||||
Stock Repurchase Program, Number of Shares Repurchased Per Day | shares | 5,000 | ||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,500,000 | $ 1,100,000 | |||||||||
Treasury Stock Acquired Rate | 0.4286 | ||||||||||
Treasury Stock, Shares, Acquired | shares | 186,519 | ||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 5,000,000 |
Note 7 - Subsequent Events (Det
Note 7 - Subsequent Events (Details Textual) - USD ($) | Jul. 28, 2015 | May. 12, 2015 | May. 04, 2015 | Feb. 27, 2015 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 |
Subsequent Event [Member] | ||||||||
Common Stock, Dividends, Per Share, Declared | $ 0.04 | |||||||
Stock Repurchase Program, Authorized Amount | $ 15,000,000 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 5,000,000 | |||||||
Common Stock, Dividends, Per Share, Declared | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.005 | $ 0.05 | $ 0.01 | ||
Stock Repurchase Program, Authorized Amount | $ 5,000,000 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 5,000,000 |