x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Texas | 75-2508900 | |
(State or other Jurisdiction of Incorporation or Organization) | (I.R.S. Employer Identification No.) | |
(Address of Principal Executive Offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Common Stock, par value $0.0001 per share | The Nasdaq Stock Market LLC |
Large accelerated filer | Accelerated filer | Non-accelerated filer | Smaller reporting company | Emerging growth company o |
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Item 11 | ||
Item 12 | ||
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Item 14 | ||
Item 16 | ||
management’s plans and objectives for future operations; |
existing cash flows being adequate to fund future operational needs; |
future plans related to budgets, future capital requirements, market share growth, and anticipated capital projects and obligations; |
the realization of net deferred tax assets; |
the ability to curtail operating expenditures; |
global statutory tax rates remaining unchanged; |
the impact of future market changes due to exposure to foreign currency translations; |
the possibility of certain policies, procedures, and internal processes minimizing exposure to market risk; |
the impact of new accounting pronouncements on financial condition, results of operations, or cash flows; |
the outcome of new or existing litigation matters; |
the outcome of new or existing regulatory inquiries or investigations; and |
other assumptions described in this report underlying such forward-looking statements. |
overall growth or lack of growth in the nutritional supplements industry; |
plans for expected future product development; |
changes in manufacturing costs; |
shifts in the mix of packs and products; |
the competitive nature of our business with respect to products and pricing; |
publicity related to our products or network marketing; and |
Item 1. | Business |
• | In 1994, we developed and began selling our first products containing Manapol® powder, an ingredient formulated to support cell-to-cell communication. |
• | In 1996, we enhanced our products based on the study of glycoproteins and our scientists developed our own proprietary compound, Ambrotose®complex, which we patented. Our Ambrotose®complex is a blend of polysaccharides (composed of monosaccharides) that helps provide support for the immune system. |
• | In 2001, we broadened our proprietary ingredients by developing the Ambroglycin®blend, a balanced food-mineral matrix which helps deliver nutrients to the body and which is used in our proprietary |
• | In 2004, we introduced our proprietary blend of antioxidant nutrients, MTech AO Blend® ingredient, which is used in our proprietary antioxidant Ambrotose AO®product. |
• | In 2006, we introduced a unique blend of plant-based minerals, natural vitamins, and standardized phytochemicals for use in our proprietary PhytoMatrix® product. We also introduced a compound used in reformulated Advanced Ambrotose® complex. This compound allows a more potent concentration of the full range of mannose-containing polysaccharides occurring naturally in aloe to be produced in a stable powdered form. |
• | In 2007, we introduced into the United States market our skin care and anti-aging line of products that supports skin’s natural texture, beauty, and elasticity. We also launched our PhytoMatrix® caplets, Advanced Ambrotose® capsules and Manna•Bears™ supplement into international markets. |
• | In 2008, we introduced a proprietary proteolytic enzyme and phytosterol dietary supplement that supports the body’s natural recovery processes associated with physical activity in our BounceBack® capsules. We also introduced a proprietary version of whey protein peptide technology that assists targeted fat loss when combined with exercise and a healthy diet in our OsoLean™ powder. |
• | In 2009, we introduced our Omega-3, which features EPA/DHA essential acids, PhytoBurst™ Nutritional Chews formulated with vitamins, minerals, and phytonutrients from food-sourced ingredients, and GI-ProBalance™ Slimstick, which is a synbiotic digestive product containing probiotics, prebiotics, and digestive enzymes. In addition, we improved our Ambrotose® products to include beta-Carotene. |
• | In 2010, we launched our Mannatech LIFT™ Skin Care System, which is paraben-free and formulated to give skin a more natural youthful appearance. |
• |
In 2012, we launched our NutriVerus™ powder, a single product that features all of our core scientific technologies at a very affordable price. This unique, ground-breaking product combines our core glyconutrient technologies with vitamins, minerals, antioxidants and stabilized rice bran, all based on Real Food Technology solutions. |
• | In 2013, we launched Ūth™ skin cream, a breakthrough in anti-aging that incorporates Mannatech’s glyconutrient technology along with a microsphere delivery system that supports more thorough delivery of the active ingredients to all levels of the skin. |
• | In |
• | In |
Product Category | Representative Products |
Integrative Health | Ambrotose® complex, Ambrotose AO®, Advanced Ambrotose®, |
Targeted Health | BounceBack®, CardioBALANCE®, GI Pro Balance™ Slimstick, GI-Zyme®, GlycoCafe™, ImmunoSTART®, Manna-C™, |
Weight and Fitness | AmbroStart®, OsoLean™ |
Skin Care | Emprizone®, FIRM with Ambrotose®, |
Home Living | Serenity Home Diffuser, Essential Oils: Eucalyptus, Fractionated Coconut and Aloe, Frankincense, Lavender, Lemon, No. 1 Protective Blend, Orange, Peppermint, and Sweet Almond and Aloe. |
2015 | 2014 | |||||||||||||||
Sales by product | % of total net sales | Sales by product | % of total net sales | |||||||||||||
Advanced Ambrotose® | $ | 59,026 | 32.7 | % | $ | 63,791 | 33.6 | % | ||||||||
Ambrotose® | 9,686 | 5.4 | % | 10,895 | 5.7 | % | ||||||||||
NutriVerus™ | 8,541 | 4.7 | % | 10,530 | 5.5 | % | ||||||||||
PLUS™ | 8,239 | 4.6 | % | 8,923 | 4.7 | % | ||||||||||
Ūth™ Skin Rejuvenation | 5,394 | 3.0 | % | 13,431 | 7.1 | % | ||||||||||
Total | $ | 90,886 | 50.4 | % | $ | 107,571 | 56.6 | % |
2017 | 2016 | ||||||||||||
Sales by product | % of total net sales | Sales by product | % of total net sales | ||||||||||
Advanced Ambrotose® | $ | 52,592 | 29.8 | % | $ | 55,863 | 31.0 | % | |||||
TruHealth™ | 16,652 | 9.4 | % | 9,220 | 5.1 | % | |||||||
Manapol® Powder | 11,183 | 6.3 | % | 2,153 | 1.2 | % | |||||||
Ambrotose® | 8,459 | 4.8 | % | 10,196 | 5.7 | % | |||||||
PLUS ™ | 7,461 | 4.2 | % | 7,935 | 4.4 | % | |||||||
Total | $ | 96,347 | 54.5 | % | $ | 85,367 | 47.4 | % |
marketability and proprietary nature of the product; |
data supporting claims of efficacy and safety. |
1. | High-Quality, Innovative, Proprietary Products.We base our product concept on the scientific belief that certain glyconutrients, also known as monosaccharides, are essential for maintaining a healthy immune system. We believe the addition of effective nutritional supplements to a well-balanced diet, coupled with an effective exercise program, will enhance and help maintain optimal health and wellness. We focus on producing products that are from all-natural sources with no synthetic or chemically derived additives. We formulate our products with predominately naturally-occurring, plant-derived, carbohydrate-based, safe ingredients that are designed to use nutrients working through normal physiology to help achieve and maintain optimal health and wellness, rather than developing common synthetic, carbohydrate-based products. |
2. | Research and Development Efforts. We are steadfast in our commitment to quality-driven research and development. We use systematic processes for the research and development of our unique proprietary product formulas, as well as the identification of quality suppliers and manufacturers. Our research and quality assurance programs are outlined on our corporate websites www.mannatechscience.org, www.mannatech.com, and www.allaboutmannatech.com. |
3. | Quality Assurance Program.Mannatech uses only qualified manufacturing contractors to produce, test, and package our finished products. These contractors must be compliant and current with required certifications and they must strictly adhere to our own quality standards for all markets. Certifications and guidelines that our contract manufacturers are required to carry and/or follow include: |
the FDA’s current Good Manufacturing Practices for manufacturing, packaging, labeling, and holding of dietary supplements; |
ten products are certified according to the NSF/ANSI 173 Dietary Supplement Standard—the only American National Standard for dietary supplements. This certification ensures that this product contains only the ingredients indicated on the label and is free of impurities, and that Good Manufacturing Practices were used in the manufacturing facility; and |
4. | Global Scientific Advisory Board. A charter for an advisory board has been established and |
5. | High-Caliber, Industry-Leading Independent Associates. Our global team of independent associates is comprised of dedicated, hard-working, high-caliber individuals, many of whom have been associated with the network marketing industry for decades and have been loyal to us since our beginning in 1993. To capitalize on their wealth of knowledge and experience, we sponsor |
6. | Support Philosophy for Our Independent Associates and |
• | maintaining an extensive web-based downline management system called Success Tracker™ that provides access to web conferencing and downline organization reporting for our independent associates at minimal costs; |
sponsoring marketing events, designed to provide information, education, and motivation for our dedicated business-building associates and to help stimulate business development. These events provide an interactive venue for introducing new products and services and allow interaction between our management teams, outside researchers, and independent associates. |
7. | Flexible Operating Strategy. We believe efficiency, focus, and flexibility are paramount to our operations. For more than a decade, we have contracted with third parties to supply and manufacture our proprietary raw materials and products, which we believe allows us to minimize capital expenditures, capitalize on such parties’ expertise, and build additional resources for strategic alliances in the areas of distribution and logistics, product registration, and export requirements. By contracting with various suppliers and manufacturers and by outsourcing distribution for all of our operations, we believe we can quickly adapt operations to current demands in a timely, efficient, and cost-effective manner. We monitor the performance of our third party contractors to ensure they maintain a high quality of service. In addition, we identify alternative sources for our raw materials suppliers and finished goods manufacturers to help prevent any risk of interruption in production should any existing contractors become unable to perform satisfactorily. |
8. | Experience and Depth of Our Management Team and Board of Directors. We believe that our team of executives has extensive experience in every aspect of business operations and is highly focused on our success. At December 31, |
Provide Outstanding Product Value and Results to Customers. We work to ensure that all associates and their customers have a great experience with each of our product. Products that deliver tangible results, are supported by science, and are backed by a powerful satisfaction guarantee. |
• |
offering Success Tracker |
providing a wide assortment of business-building and educational materials to help stimulate product sales and simplify enrollment. |
generating product sales to preferred customers from an independent associate’s global downline to earn certain achievement levels; |
obtaining certain achievement levels and enrolling other independent associates who place qualifying orders; |
obtaining and developing certain achievement levels within their downline organizations to qualify for additional bonuses; and |
various other incentive programs. |
minimize the time required to process orders and distribute products; |
provide customized ordering information; |
quickly respond to information requests, including providing detailed and accurate information to independent associates about qualification and downline activity; |
provide detailed reports about paid commissions and incentives; |
support order processing and customer service departments; and |
help monitor, analyze, and report operating and financial results. |
direct selling and network marketing systems; |
transfer pricing and similar regulations affecting the amount of foreign taxes and customs duties paid; |
taxation of independent associates and requirements to collect taxes and maintain appropriate records; |
how a company manufactures, packages, labels, distributes, imports, sells, and stores products; |
product ingredients; |
product claims; |
marketing and advertising; and |
the extent to which companies may be responsible for claims made by independent associates. |
the Food and Drug Administration (the “FDA”); |
the Federal Trade Commission (the “FTC”); |
the Consumer Product Safety Commission; |
the Department of Agriculture; |
the Environmental Protection Agency; |
the United States Postal Service; |
state attorney general offices; and |
various agencies of the states and localities in which our products are sold. |
the identification of dietary or nutritional supplements and their nutrition and ingredient labeling; |
requirements related to the wording used for claims about nutrients, health claims, and statements of nutritional support; |
labeling requirements for dietary or nutritional supplements for which “high potency,” “antioxidant,” and “trans-fatty acids” claims are made; |
notification procedures for statements on dietary and nutritional supplements; and |
pre-market notification procedures for new dietary ingredients in nutritional supplements. |
the National Provincial Laws, Natural Health Product Regulations of Canada, and the Federal Competition Act in Canada; |
social security taxes; |
antitrust laws. |
claims made about our products; |
sales of products in markets where the products have not been approved or licensed. |
AdvoCare International |
Vitamin Shoppe Industries, Inc. |
our products can be introduced into the global marketplace at a much lower up-front cost than through conventional methods; |
network marketing enables independent associates to earn financial rewards. |
our easy and convenient delivery system. |
2015 | 2014 | |||||||
North America | 181 | 172 | ||||||
Asia/Pacific | 77 | 74 | ||||||
EMEA | 29 | 24 | ||||||
Total | 287 | 270 |
2017 | 2016 | ||||
Americas | 162 | 185 | |||
Asia/Pacific | 79 | 80 | |||
EMEA | 11 | 25 | |||
Total | 252 | 290 |
2015 | 2014 | |||||||
Full-time employees | 282 | 265 | ||||||
Part-time employees | 5 | 5 | ||||||
Total | 287 | 270 |
2017 | 2016 | ||||
Full-time employees | 250 | 281 | |||
Part-time employees | 2 | 9 | |||
Total | 252 | 290 |
1. | If we are unable to attract and retain independent associates, our business may suffer. |
2. | The loss of key high-level independent associate leaders could negatively impact our associate growth and our revenue. |
3. | Changes to our associate compensation arrangements could be viewed negatively by some independent associates, could cause failure to achieve desired long-term results and have a negative impact on revenue. |
to address changing market dynamics; |
to provide incentives to independent associates that are intended to help grow our business; |
to conform to local regulations; and |
to address other business needs. |
4. | An increase in the amount of commissions and incentives paid to independent associates |
5. | The loss of key management personnel could adversely affect our business. |
6. | If government regulations regarding network marketing change or are interpreted or enforced in a manner adverse to our business, we may be subject to new enforcement actions and material limitations regarding our overall business model. |
7. | Independent associates could fail to comply with our associate policies and procedures or make improper product, compensation, marketing or advertising claims that violate laws or regulations, which could result in claims against us that could harm our financial condition and operating results. |
8. | We may be held responsible for certain taxes or assessments relating to the activities of our independent associates, which could harm our financial condition and operating results. |
9. | Challenges by private parties to the form of our network marketing system could harm our business. |
10. | If our network marketing activities do not comply with government regulations, our business could suffer. |
11. | If we violate governmental regulations or fail to obtain necessary regulatory approvals, our operations could be adversely affected. |
the formulation, manufacturing, packaging, labeling, distribution, importation, sale, and storage of our products; |
export and import restrictions. |
12. | Increased regulatory scrutiny of nutritional supplements as well as new regulations that are being adopted in some of our markets with respect to nutritional supplements could result in more restrictive regulations and harm our results if our supplements or advertising activities are found to violate existing or new regulations or if we are not able to effect necessary changes to our products in a timely and efficient manner to respond to new regulations. |
13. | If we are unable to protect the proprietary rights of our products, our business could suffer. |
• | our Ambrotose® complex, a glyconutritional dietary supplement ingredient consisting of a blend of monosaccharides, or sugar molecules, used in the majority of our products; |
• | the MTech AO Blend® formulation, our proprietary antioxidant technology used in the Ambrotose AO® complex; and |
• | a compound used in our reformulated Advanced Ambrotose® complex that allows for a more potent concentration of the full range of mannose-containing polysaccharides occurring naturally in aloe. |
14. | Our inability to develop and introduce new products that gain independent associate, |
15. | Our failure to appropriately respond to changing consumer preferences and demand for new products or product enhancements could significantly harm our relationship with independent associates and |
accurately anticipate consumer needs; |
differentiate our product offerings from those of our competitors. |
16. | If our outside suppliers and manufacturers fail to supply products in sufficient quantities and in a timely fashion, our business could suffer. |
17. | The loss of suppliers or shortages of raw materials could have an adverse effect on our business, financial condition, or results of operations. |
18. | If we are exposed to product liability claims, we may be liable for damages and expenses, which could affect our overall financial condition. |
19. | Concentration Risk |
2015 | 2014 | |||||||||||||||
Sales by product | % of total net sales | Sales by product | % of total net sales | |||||||||||||
Advanced Ambrotose® | $ | 59,026 | 32.7 | % | $ | 63,791 | 33.6 | % | ||||||||
Ambrotose® | 9,686 | 5.4 | % | 10,895 | 5.7 | % | ||||||||||
NutriVerus™ | 8,541 | 4.7 | % | 10,530 | 5.5 | % | ||||||||||
PLUS™ | 8,239 | 4.6 | % | 8,923 | 4.7 | % | ||||||||||
Ūth™ Skin Rejuvenation | 5,394 | 3.0 | % | 13,431 | 7.1 | % | ||||||||||
Total | $ | 90,886 | 50.4 | % | $ | 107,571 | 56.6 | % |
2017 | 2016 | ||||||||||||
Sales by product | % of total net sales | Sales by product | % of total net sales | ||||||||||
Advanced Ambrotose® | $ | 52,592 | 29.8 | % | $ | 55,863 | 31.0 | % | |||||
TruHealth™ | 16,652 | 9.4 | % | 9,220 | 5.1 | % | |||||||
Manapol® Powder | 11,183 | 6.3 | % | 2,153 | 1.2 | % | |||||||
Ambrotose® | 8,459 | 4.8 | % | 10,196 | 5.7 | % | |||||||
PLUS ™ | 7,461 | 4.2 | % | 7,935 | 4.4 | % | |||||||
Total | $ | 96,347 | 54.5 | % | $ | 85,367 | 47.4 | % |
20. | If we incur substantial liability from litigation, complaints, or enforcement actions or incur liabilities or penalties resulting from misconduct by our independent associates, our financial condition could suffer. |
21. | The global nutrition and skin care industries are intensely competitive and the strengthening of any of our competitors could harm our business. |
22. | A downturn in the economy could affect consumer purchases of discretionary items such as the health and wellness products that we offer, which could have an adverse effect on our business, financial condition, profitability, and cash flows. |
23. | If our international markets are not successful, our business could suffer. |
24. | Adverse or negative publicity could cause our business to suffer. |
25. | If our information technology system fails or if the implementation of new information technology systems is not executed efficiently and effectively, our business, financial position, and our operating results could be adversely affected. |
financial reporting. |
26. | Taxation and transfer pricing affect our operations and we could be subjected to additional taxes, duties, interest, and penalties in material amounts, which could harm our business. |
27. | Currency exchange rate fluctuations could reduce our overall profits. |
28. | Our stock price is volatile and may fluctuate significantly. |
the sale of large amounts of stock by insiders. |
29. | Certain shareholders, directors, and officers own a significant amount of our stock, which could allow them to influence corporate transactions and other matters. |
30. | We have implemented anti-takeover provisions that may help discourage a change of control. |
31. | Our failure to comply with the NASDAQ Global Select Market continued listing standards may adversely affect the price and liquidity of our shares of common stock as well as our ability to raise capital in the future. |
32. | We are not required to pay dividends, and our Board of Directors may decide not to declare dividends in the future. |
33. | We rely upon our existing cash balances and cash flow from operations to fund our |
34. | The reduced disclosure requirements applicable to us as a "smaller reporting company" may make our common stock less attractive to investors. |
Item 2. | Properties |
Location | Size | Expiration date | ||
Coppell, Texas (distribution center) | 75,000 sq. feet(1) | March 2018 | ||
Coppell, Texas | 110,000 sq. feet | March 2018 | ||
St. Leonards, Australia (Australian headquarters) | 850 sq. meters(2) | December 2018 | ||
Chuo-ku, Osaka, Japan (Japanese training center) | 73 Tsubos(4) | August 2020 | ||
Gangnam-gu, Seoul, Korea (Republic of Korea headquarters) | 718 Pyong(5) | June | ||
Seo-gu, Daejun, Korea (Regional center) | 113 Pyong(6) | June | ||
Haewoondae-gu, Busan, Korea (Pusan training center) | 191 Pyong(7) | March | ||
Incheon, South Korea (Incheon training center) | 218 Pyong(8) | April | ||
Seoul, South Korea (office) | 99 Pyong(9) | June | ||
Taipei, Taiwan (Taiwan headquarters) | 172 Pings(10) | February 2020 | ||
Kaohsiung, Taiwan (Taiwan training center) | 102 Pings(11) | June 2020 | ||
Zug, Switzerland (Switzerland headquarters) | 680 sq. meters(12) | — | ||
Tsim Sha Tsui, Kowloon, Hong Kong (office) | ||||
Hengqin, Zhuhai, China (office) | 677 sq. feet | November 2018 | ||
Tianhe, Guangzhou, China (office) | 355 sq. feet | July 2018 | ||
Richmond, BC (Canada training center) | 1,963 sq. feet | September | ||
Markham, ON (office) | 1,714 sq. feet | September 2019 | ||
Bedfordview, South Africa (office) | 383 sq. meters(13) | — | ||
Guadalajara, Mexico | 389 sq. meters(14) | March | ||
Mexico City, Mexico (customer service center) | 123 sq. meters(15) | August | ||
Monterrey, Mexico (office) | 149.16 sq. meters(16) | June | ||
Tuxtla, Mexico (office) | 23.76 sq. meters(17) | October | ||
Colima, Mexico (office) | 68 sq. meters(18) | January 2019 | ||
Singapore (meeting center) | 1,098 sq. feet | |||
Bogota, Columbia (office) | 700 sq. feet | — (19) |
(1) The Company subleases a majority of this space to Integrated Distribution and Logistics Direct, LLC, which provides warehousing and distribution services. (2)Approximately 9,150 square feet & subleases 2,153 (3) Approximately (4) Approximately 2,598 square feet. (5) Approximately 25,549 square feet. (6) Approximately 4,021 square feet. (7) Approximately 6,796 square feet. (8) Approximately 7,757 square feet. (9) Approximately 3,523 square feet. | (10) Approximately 6,119 square feet. | (11) Approximately 3,629 square feet. (12) Approximately 7,320 square feet. (13) Approximately 4,123 square feet. (14) Approximately 4,187 square feet. (15) Approximately 1,324 square feet. (16) Approximately 1,606 square feet. (17) Approximately 256 square feet. (18) (19) Renewable annually. |
Item 4. | Mine Safety Disclosures |
Item 5. | Market for Registrant’s Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities |
2015: | Low | High | ||||||
First Quarter | $ | 17.12 | $ | 28.49 | ||||
Second Quarter | $ | 18.00 | $ | 21.04 | ||||
Third Quarter | $ | 16.91 | $ | 21.00 | ||||
Fourth Quarter | $ | 18.55 | $ | 28.06 |
2017: | Low | High | |||||
First Quarter | $ | 15.00 | $ | 20.35 | |||
Second Quarter | $ | 13.10 | $ | 16.61 | |||
Third Quarter | $ | 14.00 | $ | 16.65 | |||
Fourth Quarter | $ | 13.61 | $ | 15.00 |
2014: | Low | High | ||||||
First Quarter | $ | 12.64 | $ | 19.96 | ||||
Second Quarter | $ | 12.14 | $ | 18.49 | ||||
Third Quarter | $ | 11.77 | $ | 17.32 | ||||
Fourth Quarter | $ | 12.66 | $ | 30.65 |
2016: | Low | High | |||||
First Quarter | $ | 16.85 | $ | 24.33 | |||
Second Quarter | $ | 18.58 | $ | 22.88 | |||
Third Quarter | $ | 16.64 | $ | 20.59 | |||
Fourth Quarter | $ | 16.25 | $ | 21.85 |
Period | Total number of shares purchased | Average price paid per share | Total number of shares purchased as part of publicly announced programs(a) | Dollar value of shares that may yet be purchased (b) (in thousands) | ||||||||||
October 1, 2017 - October 31, 2017 | — | $ | — | — | $ | 19,584 | ||||||||
November 1, 2017 - November 30, 2017 | — | $ | — | — | 19,584 | |||||||||
December 1, 2017 - December 31, 2017 | 5,551 | $ | 14.72 | 5,551 | 19,502 | |||||||||
Total | 5,551 | 5,551 |
Item 6. | Selected Financial Data |
2015 | 2014 | Change | ||||||||||||||||||||||
Total Dollars | % of net sales | Total dollars | % of net sales | Dollar | Percentage | |||||||||||||||||||
Net sales | $ | 180,267 | 100.0 | % | $ | 190,081 | 100.0 | % | $ | (9,814 | ) | (5.2 | )% | |||||||||||
Cost of sales | 34,102 | 18.9 | % | 38,350 | 20.2 | % | (4,248 | ) | (11.1 | )% | ||||||||||||||
Gross profit | 146,165 | 81.1 | % | 151,731 | 79.8 | % | (5,566 | ) | (3.7 | )% | ||||||||||||||
Operating expenses: | ||||||||||||||||||||||||
Commissions and incentives | 72,956 | 40.5 | % | 75,240 | 39.6 | % | (2,284 | ) | (3.0 | )% | ||||||||||||||
Selling and administrative expenses | 34,458 | 19.1 | % | 36,193 | 19.0 | % | (1,735 | ) | (4.8 | )% | ||||||||||||||
Depreciation and amortization | 1,793 | 1.0 | % | 1,608 | 0.8 | % | 185 | 11.5 | % | |||||||||||||||
Other operating costs | 24,814 | 13.8 | % | 25,948 | 13.7 | % | (1,134 | ) | (4.4 | )% | ||||||||||||||
Total operating expenses | 134,021 | 74.3 | % | 138,989 | 73.1 | % | (4,968 | ) | (3.6 | )% | ||||||||||||||
Income from operations | 12,144 | 6.7 | % | 12,742 | 6.7 | % | (598 | ) | (4.7 | )% | ||||||||||||||
Interest income | 210 | 0.1 | % | 121 | 0.1 | % | 89 | 73.6 | % | |||||||||||||||
Other expense, net | (4,155 | ) | (2.3 | )% | (3,042 | ) | (1.6 | )% | (1,113 | ) | 36.6 | % | ||||||||||||
Income before income taxes | 8,199 | 4.5 | % | 9,821 | 5.2 | % | (1,622 | ) | (16.5 | )% | ||||||||||||||
Income tax provision | (2,360 | ) | (1.3 | )% | (3,325 | ) | (1.7 | )% | 965 | 29.0 | % | |||||||||||||
Net income | $ | 5,839 | 3.2 | % | $ | 6,496 | 3.4 | % | $ | (657 | ) | (10.1 | )% |
2017 | 2016 | Change | ||||||||||||||||||
Total Dollars | % of net sales | Total dollars | % of net sales | Dollar | Percentage | |||||||||||||||
Net sales | $ | 176,696 | 100.0 | % | $ | 180,304 | 100.0 | % | $ | (3,608 | ) | (2.0 | )% | |||||||
Cost of sales | 35,667 | 20.2 | % | 36,564 | 20.3 | % | (897 | ) | (2.5 | )% | ||||||||||
Gross profit | 141,029 | 79.8 | % | 143,740 | 79.7 | % | (2,711 | ) | (1.9 | )% | ||||||||||
Operating expenses: | ||||||||||||||||||||
Commissions and incentives | 74,550 | 42.2 | % | 74,215 | 41.2 | % | 335 | 0.5 | % | |||||||||||
Selling and administrative expenses | 35,470 | 20.1 | % | 37,217 | 20.6 | % | (1,747 | ) | (4.7 | )% | ||||||||||
Depreciation and amortization | 1,864 | 1.0 | % | 1,898 | 1.0 | % | (34 | ) | (1.8 | )% | ||||||||||
Other operating costs | 26,626 | 15.1 | % | 29,749 | 16.5 | % | (3,123 | ) | (10.5 | )% | ||||||||||
Total operating expenses | 138,510 | 78.4 | % | 143,079 | 79.4 | % | (4,569 | ) | (3.2 | )% | ||||||||||
Income from operations | 2,519 | 1.4 | % | 661 | 0.4 | % | 1,858 | 281.1 | % | |||||||||||
Interest income | 274 | 0.2 | % | 174 | 0.1 | % | 100 | 57.5 | % | |||||||||||
Other (expense), net | (333 | ) | (0.2 | )% | (1,790 | ) | (1.0 | )% | 1,457 | 81.4 | % | |||||||||
Income (Loss) before income taxes | 2,460 | 1.4 | % | (955 | ) | (0.5 | )% | 3,415 | 357.6 | % | ||||||||||
Income tax benefit (provision) | (4,247 | ) | (2.4 | )% | 369 | 0.2 | % | (4,616 | ) | (1,250.9 | )% | |||||||||
Net loss | $ | (1,787 | ) | (1.0 | )% | $ | (586 | ) | (0.3 | )% | $ | (1,201 | ) | (204.9 | )% |
2015 | 2014 | Reconciliation – Constant $ | ||||||||||||||||||
GAAP Measure: Total $ | Non-GAAP Measure: Constant $ | GAAP Measure: Total $ | Dollar | Percent | ||||||||||||||||
Net sales | 180.3 | 192.1 | $ | 190.1 | 2.0 | 1.1 | % | |||||||||||||
Product | 143.1 | 152.2 | 155.3 | (3.1 | ) | (2.0 | )% | |||||||||||||
Pack | 31.7 | 34.1 | 27.8 | 6.3 | 22.7 | % | ||||||||||||||
Other | 5.5 | 5.8 | 7.0 | (1.2 | ) | (17.1 | )% | |||||||||||||
Gross profit | 146.2 | 155.5 | 151.7 | 3.8 | 2.5 | % | ||||||||||||||
Income from operations | 12.1 | 13.6 | 12.7 | 0.9 | 7.1 | % |
2017 | 2016 | Constant $ Change | |||||||||||||
GAAP Measure: Total $ | Non-GAAP Measure: Constant $ | GAAP Measure: Total $ | Dollar | Percent | |||||||||||
Net sales | 176.7 | 174.4 | $ | 180.3 | (5.9 | ) | (3.3 | )% | |||||||
Product | 157.9 | 155.8 | 148.6 | 7.2 | 4.8 | % | |||||||||
Pack and associate fees(a) | 14.2 | 14.0 | 26.7 | (12.7 | ) | (47.6 | )% | ||||||||
Other | 4.6 | 4.6 | 5.0 | (0.4 | ) | (8.0 | )% | ||||||||
Gross profit | 141.0 | 139.2 | 143.7 | (4.5 | ) | (3.1 | )% | ||||||||
Income from operations | 2.5 | 1.9 | 0.7 | 1.2 | 171.4 | % |
2015 | 2014 | |||||||||||||||
North America | $ | 73.3 | 40.7 | % | $ | 80.8 | 42.5 | % | ||||||||
Asia/Pacific | 91.4 | 50.7 | % | 92.4 | 48.6 | % | ||||||||||
EMEA | 15.6 | 8.6 | % | 16.9 | 8.9 | % | ||||||||||
Total | $ | 180.3 | 100.0 | % | $ | 190.1 | 100.0 | % |
2017 | 2016 | ||||||||||||
Americas | $ | 64.2 | 36.3 | % | $ | 70.2 | 38.9 | % | |||||
Asia/Pacific | 98.8 | 55.9 | % | 96.2 | 53.4 | % | |||||||
EMEA | 13.7 | 7.8 | % | 13.9 | 7.7 | % | |||||||
Total | $ | 176.7 | 100.0 | % | $ | 180.3 | 100.0 | % |
Change | ||||||||||||||||
2015 | 2014 | Dollar | Percentage | |||||||||||||
Consolidated product sales | $ | 143.1 | $ | 155.3 | $ | (12.2 | ) | (7.9 | )% | |||||||
Consolidated pack sales | 31.7 | 27.8 | 3.9 | 14.0 | % | |||||||||||
Consolidated other, including freight | 5.5 | 7.0 | (1.5 | ) | (21.4 | )% | ||||||||||
Total consolidated net sales | $ | 180.3 | $ | 190.1 | $ | (9.8 | ) | (5.2 | )% |
Change | ||||||||||||||
2017 | 2016 | Dollar | Percentage | |||||||||||
Consolidated product sales | $ | 157.9 | $ | 148.6 | $ | 9.3 | 6.3 | % | ||||||
Consolidated pack sales and associate fees(a) | 14.2 | 26.7 | (12.5 | ) | (46.8 | )% | ||||||||
Consolidated other, including freight | 4.6 | 5.0 | (0.4 | ) | (8.0 | )% | ||||||||
Total consolidated net sales | $ | 176.7 | $ | 180.3 | $ | (3.6 | ) | (2.0 | )% |
Change | ||||||||||||||||
2015 | 2014 | Dollar | Percentage | |||||||||||||
New | $ | 8.7 | $ | 8.7 | $ | — | — | % | ||||||||
Continuing | 23.0 | 19.1 | 3.9 | 20.4 | % | |||||||||||
Total | $ | 31.7 | $ | 27.8 | $ | 3.9 | 14.0 | % |
Change | ||||||||||||||
2017 | 2016 | Dollar | Percentage | |||||||||||
New | $ | 6.7 | $ | 11.8 | $ | (5.1 | ) | (43.2 | )% | |||||
Continuing | 7.5 | 14.9 | (7.4 | ) | (49.7 | )% | ||||||||
Total | $ | 14.2 | $ | 26.7 | $ | (12.5 | ) | (46.8 | )% |
2015 | 2014 | |||||||||||||||
New | 96,000 | 43.8 | % | 108,000 | 47.0 | % | ||||||||||
Continuing | 123,000 | 56.2 | % | 122,000 | 53.0 | % | ||||||||||
Total | 219,000 | 100.0 | % | 230,000 | 100.0 | % |
2017 | 2016 | ||||||||||
New | 96,000 | 44.7 | % | 103,000 | 46.4 | % | |||||
Continuing | 119,000 | 55.3 | % | 119,000 | 53.6 | % | |||||
Total | 215,000 | 100.0 | % | 222,000 | 100.0 | % |
Country | 2015 | 2014 | ||||||
Australia | 30.0 | % | 30.0 | % | ||||
Canada | 26.5 | % | 26.5 | % | ||||
Denmark | 23.5 | % | 23.5 | % | ||||
Japan | 37.1 | % | 37.1 | % | ||||
Mexico | 30.0 | % | 30.0 | % | ||||
Norway | 27.0 | % | 27.0 | % | ||||
Republic of Korea | 22.0 | % | 22.0 | % | ||||
Singapore | 17.0 | % | 17.0 | % | ||||
South Africa | 28.0 | % | 28.0 | % | ||||
Sweden | 22.0 | % | 22.0 | % | ||||
Switzerland | 16.2 | % | 16.2 | % | ||||
Taiwan | 17.0 | % | 17.0 | % | ||||
United Kingdom | 20.3 | % | 21.0 | % | ||||
United States | 37.5 | % | 37.5 | % | ||||
Cyprus | 12.5 | % | 12.5 | % | ||||
Hong Kong | 16.5 | % | 16.5 | % | ||||
Ukraine(1) | 18.0 | % | 18.0 | % | ||||
Gibraltar | 10.0 | % | 10.0 | % |
Country | 2017 | 2016 | |||
Australia | 30.0 | % | 30.0 | % | |
Canada | 26.5 | % | 26.5 | % | |
Denmark | 22.0 | % | 22.0 | % | |
Japan | 34.8 | % | 35.4 | % | |
Mexico | 30.0 | % | 30.0 | % | |
Norway | 24.0 | % | 25.0 | % | |
Republic of Korea | 22.0 | % | 22.0 | % | |
Singapore | 17.0 | % | 17.0 | % | |
South Africa | 28.0 | % | 28.0 | % | |
Sweden | 22.0 | % | 22.0 | % | |
Switzerland | 16.2 | % | 16.2 | % | |
Taiwan | 17.0 | % | 17.0 | % | |
United Kingdom | 19.3 | % | 20.0 | % | |
United States | 35.0 | % | 35.0 | % | |
Cyprus | 12.5 | % | 12.5 | % | |
Hong Kong | 16.5 | % | 16.5 | % | |
Ukraine(1) | 18.0 | % | 18.0 | % | |
Gibraltar | 10.0 | % | 10.0 | % | |
Colombia | 34.0 | % | 34.0 | % | |
China(2) | 25.0 | % | 25.0 | % | |
Russia(3) | 20.0 | % | 20.0 | % |
Country | 2015 | 2014 | ||||||
Mexico | $ | 2.5 | $ | 2.7 | ||||
Norway | — | 0.1 | ||||||
Sweden | 0.1 | 0.1 | ||||||
Switzerland | 1.0 | 1.2 | ||||||
Taiwan | 1.2 | 1.2 | ||||||
Ukraine | 0.1 | 0.1 | ||||||
United States | 4.0 | 4.3 | ||||||
Other Jurisdictions | 0.1 | — | ||||||
Total | $ | 9.0 | $ | 9.7 |
Country | 2017 | 2016 | |||||
Colombia | $ | 0.6 | $ | 0.3 | |||
Mexico | 2.8 | 2.4 | |||||
South Africa | 0.1 | — | |||||
Sweden | 0.1 | 0.1 | |||||
Switzerland | — | 0.1 | |||||
Taiwan | 0.8 | 1.3 | |||||
Ukraine | 0.1 | 0.1 | |||||
United Kingdom | 0.1 | — | |||||
United States | 6.8 | 4.1 | |||||
Other Jurisdictions | — | 0.1 | |||||
Total | $ | 11.4 | $ | 8.5 |
the timing of the introduction of new products and incentives; |
the consumer perception of our products and overall operations. |
Provided by / (used in): | 2015 | 2014 | ||||||
Operating activities | $ | 4.4 | $ | 9.4 | ||||
Investing activities | $ | (2.0 | ) | $ | (1.5 | ) | ||
Financing activities | $ | 0.1 | $ | (1.4 | ) |
Provided by / (used in): | 2017 | 2016 | |||||
Operating activities | $ | 10.0 | $ | — | |||
Investing activities | $ | (1.3 | ) | $ | (2.3 | ) | |
Financing activities | $ | (3.1 | ) | $ | (2.5 | ) |
2016 | 2017 | 2018 | 2019 | 2020 | Thereafter | Total | ||||||||||||||||||||||
Capital lease obligations | $ | 492 | $ | 370 | $ | 205 | $ | 52 | $ | 13 | $ | — | $ | 1,132 | ||||||||||||||
Purchase obligations(1)(2) | 5,019 | — | — | — | — | — | 5,019 | |||||||||||||||||||||
Operating leases | 1,729 | 1,430 | 787 | 297 | 112 | — | 4,355 | |||||||||||||||||||||
Note Payable and other financing arrangements | 766 | 579 | 530 | — | — | — | 1,875 | |||||||||||||||||||||
Employment agreements | 1,503 | — | — | — | — | — | 1,503 | |||||||||||||||||||||
Royalty agreement | 52 | 59 | 59 | 59 | 59 | 7 | 295 | |||||||||||||||||||||
Tax liability (3) | 110 | 522 | — | — | — | 83 | 715 | |||||||||||||||||||||
Other obligations(4) | 314 | 164 | 49 | 49 | 97 | 769 | 1,442 | |||||||||||||||||||||
Total commitments and obligations | $ | 9,985 | $ | 3,124 | $ | 1,630 | $ | 457 | $ | 281 | $ | 859 | $ | 16,336 |
2018 | 2019 | 2020 | 2021 | 2022 | Thereafter | Total | |||||||||||||||||||||
Capital lease obligations | $ | 241 | $ | 78 | $ | 40 | $ | 28 | $ | 7 | $ | — | $ | 394 | |||||||||||||
Purchase obligations (1)(2) | 5,175 | 5,100 | 4,675 | — | — | — | 14,950 | ||||||||||||||||||||
Operating leases | 2,639 | 1,353 | 602 | 487 | 491 | 2,801 | 8,373 | ||||||||||||||||||||
Note payable and other financing arrangements | 831 | — | — | — | — | — | 831 | ||||||||||||||||||||
Employment agreements | 710 | — | — | — | — | — | 710 | ||||||||||||||||||||
Royalty agreement | 59 | 59 | 59 | 6 | — | — | 183 | ||||||||||||||||||||
Tax liability (3) | — | — | — | — | — | 166 | 166 | ||||||||||||||||||||
Other obligations (4) | 223 | 26 | 140 | 83 | 58 | 947 | 1,477 | ||||||||||||||||||||
Total commitments and obligations | $ | 9,878 | $ | 6,616 | $ | 5,516 | $ | 604 | $ | 556 | $ | 3,914 | $ | 27,084 |
Estimated useful life | Net carrying value at December 31, | 2017 | |||||
Office furniture and equipment | 5 to 7 years | $ | 0.5 million | ||||
Computer hardware and software | 3 to 5 years | ||||||
Automobiles | 3 to 5 years | — | |||||
Leasehold improvements(1) | 2 to 10 years | ||||||
Total net carrying value at December 31, | 2017 | $ |
Loyalty program | (in thousands) | |||
Loyalty deferred revenue as of January 1, 2014 | $ | 5,456 | ||
Loyalty points forfeited | (4,664 | ) | ||
Loyalty points used | (12,348 | ) | ||
Loyalty points vested | 19,580 | |||
Loyalty points unvested | 1,679 | |||
Loyalty deferred revenue as of December 31, 2014 | $ | 9,703 |
Loyalty program | (in thousands) | ||
Loyalty deferred revenue as of January 1, 2016 | $ | 8,073 | |
Loyalty points forfeited or expired | (6,963 | ) | |
Loyalty points used | (15,451 | ) | |
Loyalty points vested | 20,085 | ||
Loyalty points unvested | 1,289 | ||
Loyalty deferred revenue as of December 31, 2016 | $ | 7,033 |
Loyalty deferred revenue as of January 1, 2015 | $ | 9,703 | ||
Loyalty points forfeited | (8,801 | ) | ||
Loyalty points used | (15,077 | ) | ||
Loyalty points vested | 20,403 | |||
Loyalty points unvested | 1,845 | |||
Loyalty deferred revenue as of December 31, 2015 | $ | 8,073 |
Loyalty deferred revenue as of January 1, 2017 | $ | 7,033 | |
Loyalty points forfeited or expired | (5,895 | ) | |
Loyalty points used | (14,316 | ) | |
Loyalty points vested | 17,836 | ||
Loyalty points unvested | 1,748 | ||
Loyalty deferred revenue as of December 31, 2017 | $ | 6,406 |
December 31, 2015 | ||||
Sales reserve as of January 1, 2015 | $ | 207 | ||
Provision related to sales made in current period | 1,456 | |||
Adjustment related to sales made in prior periods | (10 | ) | ||
Actual returns or credits related to current period | (1,319 | ) | ||
Actual returns or credits related to prior periods | (187 | ) | ||
Sales reserve as of December 31, 2015 | $ | 147 |
December 31, 2017 | |||
Sales reserve as of January 1, 2017 | $ | 129 | |
Provision related to sales made in current period | 1,274 | ||
Adjustment related to sales made in prior periods | 3 | ||
Actual returns or credits related to current period | (1,156 | ) | |
Actual returns or credits related to prior periods | (133 | ) | |
Sales reserve as of December 31, 2017 | $ | 117 |
2015 Grants | April | May | August | November | ||||||||||||
Estimated fair value per share of options granted: | $ | 11.34 | $ | 12.80 | $ | 10.36 | $ | 12.31 | ||||||||
Assumptions: | ||||||||||||||||
Annualized dividend yield | — | % | — | % | — | % | — | % | ||||||||
Risk-free rate of return | 1.2 | % | 1.4 | % | 1.4 | % | 1.6 | % | ||||||||
Common stock price volatility | 79.4 | % | 79.1 | % | 79.2 | % | 80.1 | % | ||||||||
Expected average life of stock options (in years) | 4.5 | 4.5 | 4.5 | 4.5 |
2017 Grants | June | |||
Estimated fair value per share of options granted: | $ | 5.87 | ||
Assumptions: | ||||
Dividend yield | 3.5 | % | ||
Risk-free rate of return | 1.7 | % | ||
Common stock price volatility | 64.4 | % | ||
Expected average life of stock options (in years) | 4.5 |
Year ended December 31, 2015 | As of December 31, 2015 | |||||||||||||||
Country (foreign currency name) | Low | High | Average | Spot | ||||||||||||
Australia (Australian Dollar) | 0.69196 | 0.82330 | 0.75291 | 0.72892 | ||||||||||||
Canada (Canadian Dollar) | 0.71659 | 0.86220 | 0.78398 | 0.72132 | ||||||||||||
Czech Republic (Koruna) | 0.03840 | 0.04380 | 0.04073 | 0.04050 | ||||||||||||
Denmark (Kroner) | 0.14069 | 0.16310 | 0.14891 | 0.14644 | ||||||||||||
Hong Kong (Hong Kong Dollar) | 0.12875 | 0.12904 | 0.12900 | 0.12903 | ||||||||||||
Japan (Yen) | 0.00797 | 0.00857 | 0.00827 | 0.00830 | ||||||||||||
Mexico (Peso) | 0.05751 | 0.06885 | 0.06322 | 0.05785 | ||||||||||||
New Zealand (New Zealand Dollar) | 0.62709 | 0.78430 | 0.70104 | 0.68529 | ||||||||||||
Norway (Krone) | 0.11406 | 0.13702 | 0.12444 | 0.11432 | ||||||||||||
Republic of Korea (Won) | 0.00083 | 0.00094 | 0.00089 | 0.00085 | ||||||||||||
Singapore (Singapore Dollar) | 0.69785 | 0.75781 | 0.72818 | 0.70729 | ||||||||||||
South Africa (Rand) | 0.06302 | 0.08805 | 0.07896 | 0.06494 | ||||||||||||
Sweden (Krona) | 0.11330 | 0.12900 | 0.11873 | 0.11920 | ||||||||||||
Switzerland (Franc) | 0.97107 | 1.17090 | 1.04072 | 1.00928 | ||||||||||||
Taiwan (New Taiwan Dollar) | 0.03005 | 0.03298 | 0.03155 | 0.03040 | ||||||||||||
United Kingdom (British Pound) | 1.46339 | 1.58880 | 1.52916 | 1.48259 | ||||||||||||
Various countries (1) (Euro) | 1.04993 | 1.21430 | 1.11076 | 1.09270 |
Year ended December 31, 2017 | As of December 31, 2017 | ||||||||||
Country (foreign currency name) | Low | High | Average | Spot | |||||||
Australia (Australian Dollar) | 0.72066 | 0.80797 | 0.76679 | 0.78068 | |||||||
Canada (Canadian Dollar) | 0.72759 | 0.82533 | 0.77119 | 0.79677 | |||||||
China (Renminbi) | 0.14383 | 0.15461 | 0.14802 | 0.15361 | |||||||
Columbia (Peso) | 0.00032 | 0.00036 | 0.00034 | 0.00034 | |||||||
Czech Republic (Koruna) | 0.03863 | 0.04696 | 0.04298 | 0.04689 | |||||||
Denmark (Kroner) | 0.14032 | 0.16193 | 0.15188 | 0.16094 | |||||||
Hong Kong (Hong Kong Dollar) | 0.12779 | 0.12896 | 0.12834 | 0.12796 | |||||||
Japan (Yen) | 0.00850 | 0.00928 | 0.00892 | 0.00888 | |||||||
Mexico (Peso) | 0.04562 | 0.05714 | 0.05305 | 0.05082 | |||||||
New Zealand (New Zealand Dollar) | 0.68182 | 0.75254 | 0.71106 | 0.71040 | |||||||
Norway (Krone) | 0.11542 | 0.12943 | 0.12111 | 0.12178 | |||||||
Republic of Korea (Won) | 0.00083 | 0.00094 | 0.00089 | 0.00094 | |||||||
Singapore (Singapore Dollar) | 0.69018 | 0.74825 | 0.72455 | 0.74825 | |||||||
South Africa (Rand) | 0.06917 | 0.08118 | 0.07527 | 0.08094 | |||||||
Sweden (Krona) | 0.10943 | 0.12629 | 0.11729 | 0.12184 | |||||||
Switzerland (Franc) | 0.97481 | 1.05960 | 1.01615 | 1.02454 | |||||||
Taiwan (New Taiwan Dollar) | 0.03084 | 0.03401 | 0.03290 | 0.03371 | |||||||
United Kingdom (British Pound) | 1.20519 | 1.35970 | 1.28863 | 1.34939 | |||||||
Various countries (1) (Euro) | 1.04322 | 1.20472 | 1.12974 | 1.19804 |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure |
Item 9A. | Controls and Procedures |
Item 9B. | Other Information |
Item 15. | Exhibits and Financial Statement Schedule |
Consolidated Balance Sheets as of December 31, | |
Consolidated Statements of Operations for the years ended December 31, | |
Consolidated Statements of Comprehensive Income for the years ended December 31, | |
Consolidated Statements of Shareholders’ Equity for the years ended December 31, | |
Consolidated Statements of Cash Flows for the years ended December 31, | |
Item 16. | Fixing America’s Surface Transportation (FAST) Act |
Incorporated by Reference | ||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit (s) | Filing Date | |||
3.1 | S-1 | 333-63133 | 3.1 | October 28, 1998 | ||||
3.2 | 8-K | 000-24657 | 3.1 | January 17, 2012 | ||||
3.3 | 8-K | 000-24657 | 3.1 | August 27, 2014 | ||||
4.1 | S-1 | 333-63133 | 4.1 | October 28, 1998 | ||||
10.1 | 10-Q | 000-24657 | 10.1 | August 8, 2017 | ||||
10.2 | 10-Q | 000-24657 | 10.2 | August 8, 2017 | ||||
10.3 | 10-Q | 000-24657 | 10.3 | August 8, 2017 | ||||
10.4 | 10-Q | 000-24657 | 10.4 | August 8, 2017 | ||||
10.5 | 10-Q | 000-24657 | 10.5 | August 8, 2017 | ||||
10.6 | 10-Q | 000-24657 | 10.6 | August 8, 2017 | ||||
10.7 | 10-Q | 000-24657 | 10.7 | August 8, 2017 | ||||
10.8 | 10-K | 000-24657 | 10.1 | March 15, 2004 | ||||
10.9 | 10-K | 000-24657 | 10.1 | March 15, 2004 | ||||
10.10 | 10-Q | 000-24657 | 10.2 | August 9, 2004 | ||||
10.11 | 10-Q | 000-24657 | 10.4 | November 4, 2010 | ||||
10.12* | * | * | * | * | ||||
10.13 | 8-K | 000-24657 | 10.1 | September 24, 2007 | ||||
10.14 | 10-Q | 000-24657 | 10.1 | May 12, 2015 | ||||
10.15 | 10-K | 00-24657 | 10.61 | March 14, 2017 | ||||
14.1 | 10-K | 000-24657 | 14.1 | March 16, 2007 | ||||
21* | * | * | * | * | ||||
23.1* | * | * | * | * | ||||
24* | * | * | * | * | ||||
31.1* | * | * | * | * |
Incorporated by Reference | ||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit (s) | Filing Date | |||
31.2* | * | * | * | * | ||||
32.1* | * | * | * | * | ||||
32.2* | * | * | * | * | ||||
99.1* | * | * | * | * | ||||
101.INS* | XBRL Instance Document | * | * | * | * | |||
101.SCH* | XBRL Taxonomy Extension Schema Document | * | * | * | * | |||
101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document | * | * | * | * | |||
101.LAB* | XBRL Taxonomy Extension Label Linkbase Document | * | * | * | * | |||
101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document | * | * | * | * | |||
101.DEF* | XBRL Taxonomy Extension Definition Linkbase Document | * | * | * | * |
MANNATECH, INCORPORATED | ||
Dated: March | By: | /s/ Alfredo Bala |
Alfredo Bala | ||
Chief Executive Officer | ||
(principal executive officer) |
Dated: March | By: | /s/ David A. Johnson |
David A. Johnson | ||
Chief | ||
(principal financial officer) |
Signature | Title | Date | ||
/s/ Alfredo Bala | Chief Executive Officer (principal executive officer) | March | ||
Alfredo Bala | ||||
/s/ David A. Johnson | Chief (principal financial officer) | March | ||
David A. Johnson | ||||
Chairman of the Board | March | |||
J. Stanley Fredrick | ||||
/s/ Robert A. Toth | Director | March | ||
Robert A. Toth | ||||
/s/ Gerald E. Gilbert | Director | March | ||
Gerald E. Gilbert | ||||
/s/ | Director | March | ||
/s/ Larry A. Jobe | Director | March | ||
Larry A. Jobe | ||||
/s/ Linda K. Ferrell | Director | March | ||
Linda K. Ferrell | ||||
/s/ Eric W. Schrier | Director | March | ||
Eric W. Schrier |
Page | |
Consolidated Balance Sheets as of December 31, | |
Consolidated Statements of Operations for the years ended December 31, | |
Consolidated Statements of Comprehensive Income for the years ended December 31, | |
Consolidated Statements of Shareholders’ Equity for the years ended December 31, | |
Consolidated Statements of Cash Flows for the years ended December 31, | |
December 31, 2015 | December 31, 2014 | |||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 31,994 | $ | 27,999 | ||||
Restricted cash | 1,511 | 1,511 | ||||||
Accounts receivable, net of allowance of $261 and $213 in 2015 and 2014, respectively | 369 | 504 | ||||||
Income tax receivable | 4 | 4 | ||||||
Inventories, net | 9,199 | 10,591 | ||||||
Prepaid expenses and other current assets | 2,905 | 3,069 | ||||||
Deferred commissions | 3,443 | 4,544 | ||||||
Deferred tax assets, net | 460 | 1,141 | ||||||
Total current assets | 49,885 | 49,363 | ||||||
Property and equipment, net | 3,848 | 2,481 | ||||||
Construction in progress | 839 | 1,622 | ||||||
Long-term restricted cash | 6,586 | 7,045 | ||||||
Other assets | 3,759 | 3,567 | ||||||
Long-term deferred tax assets, net | 3,725 | 3,320 | ||||||
Total assets | $ | 68,642 | $ | 67,398 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current portion of capital leases | $ | 447 | $ | 901 | ||||
Accounts payable | 2,683 | 4,252 | ||||||
Accrued expenses | 6,221 | 6,356 | ||||||
Commissions and incentives payable | 6,818 | 7,908 | ||||||
Taxes payable | 736 | 2,578 | ||||||
Current deferred tax liability | 84 | 123 | ||||||
Current notes payable | 713 | — | ||||||
Deferred revenue | 8,677 | 10,890 | ||||||
Total current liabilities | 26,379 | 33,008 | ||||||
Capital leases, excluding current portion | 612 | 852 | ||||||
Long-term deferred tax liabilities | 24 | 26 | ||||||
Long-term notes payable | 1,069 | — | ||||||
Other long-term liabilities | 1,994 | 2,136 | ||||||
Total liabilities | 30,078 | 36,022 | ||||||
Commitments and contingencies | ||||||||
Shareholders’ equity: | ||||||||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding | — | — | ||||||
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,773,972 shares issued and 2,682,078 shares outstanding as of December 31, 2015 and 2,773,972 shares issued and 2,676,077 shares outstanding as of December 31, 2014 | — | — | ||||||
Additional paid-in capital | 40,494 | 40,672 | ||||||
Retained earnings | 8,589 | 2,750 | ||||||
Accumulated other comprehensive income (loss) | 686 | (109 | ) | |||||
Treasury stock, at average cost, 91,894 shares as of December 31, 2015 and 97,895 shares as of December 31, 2014, respectively | (11,205 | ) | (11,937 | ) | ||||
Total shareholders’ equity | 38,564 | 31,376 | ||||||
Total liabilities and shareholders’ equity | $ | 68,642 | $ | 67,398 |
December 31, 2017 | December 31, 2016 | ||||||
ASSETS | |||||||
Cash and cash equivalents | $ | 37,682 | $ | 28,687 | |||
Restricted cash | 1,514 | 1,510 | |||||
Accounts receivable, net of allowance of $582 and $463 in 2017 and 2016, respectively | 273 | 298 | |||||
Income tax receivable | 907 | 1,587 | |||||
Inventories, net | 9,385 | 11,961 | |||||
Prepaid expenses and other current assets | 2,607 | 3,483 | |||||
Deferred commissions | 3,880 | 3,229 | |||||
Total current assets | 56,248 | 50,755 | |||||
Property and equipment, net | 3,537 | 3,611 | |||||
Construction in progress | 777 | 1,012 | |||||
Long-term restricted cash | 7,565 | 6,429 | |||||
Other assets | 3,876 | 4,013 | |||||
Long-term deferred tax assets, net | 4,239 | 5,368 | |||||
Total assets | $ | 76,242 | $ | 71,188 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current portion of capital leases | $ | 228 | $ | 357 | |||
Accounts payable | 6,008 | 5,223 | |||||
Accrued expenses | 5,771 | 5,605 | |||||
Commissions and incentives payable | 9,658 | 8,799 | |||||
Taxes payable | 2,404 | 1,040 | |||||
Current notes payable | 815 | 801 | |||||
Deferred revenue | 8,561 | 8,156 | |||||
Total current liabilities | 33,445 | 29,981 | |||||
Capital leases, excluding current portion | 144 | 261 | |||||
Long-term deferred tax liabilities | 1,147 | 29 | |||||
Long-term notes payable | — | 567 | |||||
Other long-term liabilities | 1,265 | 1,465 | |||||
Total liabilities | 36,001 | 32,303 | |||||
Commitments and contingencies (Note 11 and Note 12) | |||||||
Shareholders’ equity: | |||||||
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding | — | — | |||||
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,742,857 shares issued and 2,702,940 shares outstanding as of December 31, 2017 and 2,758,275 shares issued and 2,688,790 shares outstanding as of December 31, 2016 | — | — | |||||
Additional paid-in capital | 34,928 | 38,190 | |||||
Retained earnings | 4,190 | 7,331 | |||||
Accumulated other comprehensive income | 5,984 | 1,834 | |||||
Treasury stock, at average cost, 39,917 shares as of December 31, 2017 and 69,485 shares as of December 31, 2016, respectively | (4,861 | ) | (8,470 | ) | |||
Total shareholders’ equity | 40,241 | 38,885 | |||||
Total liabilities and shareholders’ equity | $ | 76,242 | $ | 71,188 |
For the years ended December 31, | ||||||||
2015 | 2014 | |||||||
Net sales | $ | 180,267 | $ | 190,081 | ||||
Cost of sales | 34,102 | 38,350 | ||||||
Gross profit | 146,165 | 151,731 | ||||||
Operating expenses: | ||||||||
Commissions and incentives | 72,956 | 75,240 | ||||||
Selling and administrative expenses | 34,458 | 36,193 | ||||||
Depreciation and amortization | 1,793 | 1,608 | ||||||
Other operating costs | 24,814 | 25,948 | ||||||
Total operating expenses | 134,021 | 138,989 | ||||||
Income from operations | 12,144 | 12,742 | ||||||
Interest income | 210 | 121 | ||||||
Other expense, net | (4,155 | ) | (3,042 | ) | ||||
Income before income taxes | 8,199 | 9,821 | ||||||
Income tax provision | (2,360 | ) | (3,325 | ) | ||||
Net income | $ | 5,839 | $ | 6,496 | ||||
Earnings per common share: | ||||||||
Basic | $ | 2.18 | $ | 2.44 | ||||
Diluted | $ | 2.14 | $ | 2.40 | ||||
Weighted-average common shares outstanding: | ||||||||
Basic | 2,680 | 2,663 | ||||||
Diluted | 2,728 | 2,706 |
For the years ended December 31, | |||||||
2017 | 2016 | ||||||
Net sales | $ | 176,696 | $ | 180,304 | |||
Cost of sales | 35,667 | 36,564 | |||||
Gross profit | 141,029 | 143,740 | |||||
Operating expenses: | |||||||
Commissions and incentives | 74,550 | 74,215 | |||||
Selling and administrative expenses | 35,470 | 37,217 | |||||
Depreciation and amortization | 1,864 | 1,898 | |||||
Other operating costs | 26,626 | 29,749 | |||||
Total operating expenses | 138,510 | 143,079 | |||||
Income from operations | 2,519 | 661 | |||||
Interest income | 274 | 174 | |||||
Other expense, net | (333 | ) | (1,790 | ) | |||
Income (loss) before income taxes | 2,460 | (955 | ) | ||||
Income tax benefit (provision) | (4,247 | ) | 369 | ||||
Net loss | $ | (1,787 | ) | $ | (586 | ) | |
Earnings per common share: | |||||||
Basic | $ | (0.66 | ) | $ | (0.22 | ) | |
Diluted | $ | (0.66 | ) | $ | (0.22 | ) | |
Weighted-average common shares outstanding: | |||||||
Basic | 2,708 | 2,688 | |||||
Diluted | 2,708 | 2,688 |
2015 | 2014 | |||||||
Net income | $ | 5,839 | $ | 6,496 | ||||
Foreign currency translations gain | 815 | 653 | ||||||
Pension obligations, net of tax provision of $11 and $11 in 2015 and 2014, respectively | (20 | ) | (19 | ) | ||||
Comprehensive income | $ | 6,634 | $ | 7,130 |
2017 | 2016 | ||||||
Net loss | $ | (1,787 | ) | $ | (586 | ) | |
Foreign currency translations gain | 4,169 | 1,176 | |||||
Pension obligations, net of tax provision of $10 and $15 in 2017 and 2016, respectively | (19 | ) | (28 | ) | |||
Comprehensive income | $ | 2,363 | $ | 562 |
Common stock | Additional paid in capital | Retained earnings (deficit) | Accumulated other comprehensive loss | Treasury stock | Total shareholders’ equity | |||||||||||||||||||
Balance at December 31, 2013 | $ | — | $ | 42,592 | $ | (3,746 | ) | $ | (743 | ) | $ | (14,651 | ) | $ | 23,452 | |||||||||
Charge related to stock-based compensation | — | 678 | — | — | — | 678 | ||||||||||||||||||
Stock option exercises | — | (2,630 | ) | — | — | 2,714 | 84 | |||||||||||||||||
Tax benefit from exercise of stock options | — | 32 | — | — | — | 32 | ||||||||||||||||||
Foreign currency translation | — | — | — | 653 | — | 653 | ||||||||||||||||||
Pension obligations, net of tax of $11 | — | — | — | (19 | ) | — | (19 | ) | ||||||||||||||||
Net income | — | — | 6,496 | — | — | 6,496 | ||||||||||||||||||
Balance at December 31, 2014 | $ | — | $ | 40,672 | $ | 2,750 | $ | (109 | ) | $ | (11,937 | ) | $ | 31,376 | ||||||||||
Charge related to stock-based compensation | — | 592 | — | — | — | 592 | ||||||||||||||||||
Stock option exercises | — | (704 | ) | — | — | 732 | 28 | |||||||||||||||||
Tax effect from exercise of stock options | — | (66 | ) | — | — | — | (66 | ) | ||||||||||||||||
Foreign currency translation | — | — | — | 815 | — | 815 | ||||||||||||||||||
Pension obligations, net of tax of $11 | — | — | — | (20 | ) | — | (20 | ) | ||||||||||||||||
Net income | — | — | 5,839 | — | — | 5,839 | ||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | 40,494 | $ | 8,589 | $ | 686 | $ | (11,205 | ) | $ | 38,564 |
Common stock | Additional paid in capital | Retained earnings | Accumulated other comprehensive income | Treasury stock | Total shareholders’ equity | ||||||||||||||||||
Balance at December 31, 2015 | $ | — | $ | 40,494 | $ | 8,589 | $ | 686 | $ | (11,205 | ) | $ | 38,564 | ||||||||||
Charge related to stock-based compensation | — | 690 | — | — | — | 690 | |||||||||||||||||
Release of restricted stock | — | (1,881 | ) | — | — | 1,881 | — | ||||||||||||||||
Stock option exercises | — | (815 | ) | — | — | 854 | 39 | ||||||||||||||||
Tax effect from exercise of stock options | — | (24 | ) | — | — | — | (24 | ) | |||||||||||||||
Foreign currency translation | — | — | — | 1,176 | — | 1,176 | |||||||||||||||||
Pension obligations, net of tax of $15 | — | — | — | (28 | ) | — | (28 | ) | |||||||||||||||
Repurchase of common stock | — | (274 | ) | — | — | — | (274 | ) | |||||||||||||||
Declared and paid dividends | — | — | (672 | ) | — | — | (672 | ) | |||||||||||||||
Net loss | — | — | (586 | ) | — | — | (586 | ) | |||||||||||||||
Balance at December 31, 2016 | $ | — | $ | 38,190 | $ | 7,331 | $ | 1,834 | $ | (8,470 | ) | $ | 38,885 | ||||||||||
Charge related to stock-based compensation | — | 246 | — | — | — | 246 | |||||||||||||||||
Issuance of unrestricted shares | — | (1,228 | ) | — | — | 1,472 | 244 | ||||||||||||||||
Release of restricted stock | — | (306 | ) | — | — | 306 | — | ||||||||||||||||
Stock option exercises | — | (1,748 | ) | — | — | 1,831 | 83 | ||||||||||||||||
Foreign currency translation | — | — | — | 4,169 | — | 4,169 | |||||||||||||||||
Pension obligations, net of tax of $10 | — | — | — | (19 | ) | — | (19 | ) | |||||||||||||||
Repurchase of common stock | — | (226 | ) | — | — | — | (226 | ) | |||||||||||||||
Declared and paid dividends | — | — | (1,354 | ) | — | — | (1,354 | ) | |||||||||||||||
Net loss | — | — | (1,787 | ) | — | — | (1,787 | ) | |||||||||||||||
Balance at December 31, 2017 | $ | — | $ | 34,928 | $ | 4,190 | $ | 5,984 | $ | (4,861 | ) | $ | 40,241 |
For the years ended December 31, | ||||||||
2015 | 2014 | |||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||
Net income | $ | 5,839 | $ | 6,496 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization | 1,793 | 1,608 | ||||||
Provision for inventory losses | 480 | 2,124 | ||||||
Provision for doubtful accounts | 369 | 579 | ||||||
(Gain) loss on disposal of assets | 28 | (9 | ) | |||||
Stock-based compensation expense | 592 | 678 | ||||||
Deferred income taxes | 88 | (1,627 | ) | |||||
Tax expense (benefit) from exercise of stock options | 66 | (32 | ) | |||||
Changes in operating assets and liabilities: | ||||||||
Accounts receivable | (266 | ) | (713 | ) | ||||
Inventories | 605 | 970 | ||||||
Prepaid expenses and other current assets | 462 | 945 | ||||||
Other assets | 86 | (170 | ) | |||||
Deferred commissions | 1,031 | (1,943 | ) | |||||
Accounts payable | (1,562 | ) | (709 | ) | ||||
Accrued expenses and other liabilities | (392 | ) | 854 | |||||
Taxes payable | (1,819 | ) | 803 | |||||
Commissions and incentives payable | (969 | ) | (2,102 | ) | ||||
Deferred revenue | (2,063 | ) | 4,749 | |||||
Change in restricted cash | 18 | (3,081 | ) | |||||
Net cash provided by operating activities | 4,386 | 9,420 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||
Acquisition of property and equipment | (1,979 | ) | (1,534 | ) | ||||
Proceeds from sale of assets | — | 9 | ||||||
Net cash used in investing activities | (1,979 | ) | (1,525 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||
Proceeds from stock options exercised | 28 | 84 | ||||||
Tax benefit (expense) from exercise of stock options | — | 32 | ||||||
Proceeds from note payable | 1,640 | — | ||||||
Repayment of capital lease obligations | (1,526 | ) | (1,540 | ) | ||||
Net cash provided (used) in financing activities | 142 | (1,424 | ) | |||||
Effect of currency exchange rate changes on cash and cash equivalents | 1,446 | 1,133 | ||||||
Net increase in cash and cash equivalents | 3,995 | 7,604 | ||||||
Cash and cash equivalents at the beginning of the year | 27,999 | 20,395 | ||||||
Cash and cash equivalents at the end of the year | $ | 31,994 | $ | 27,999 | ||||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | ||||||||
Income taxes paid, net | $ | 4,659 | $ | 4,253 | ||||
Interest paid on capital leases | $ | 89 | $ | 119 | ||||
Summary of non-cash investing and financing activities: | ||||||||
Assets acquired through financing arrangements | $ | 670 | $ | 2,141 |
For the years ended December 31, | |||||||
2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (1,787 | ) | $ | (586 | ) | |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | |||||||
Depreciation and amortization | 1,864 | 1,898 | |||||
Provision for inventory losses | 714 | 343 | |||||
Provision for doubtful accounts | 351 | 562 | |||||
Loss on disposal of assets | 1 | 426 | |||||
Stock-based compensation expense | 490 | 690 | |||||
Deferred income taxes | 2,143 | (1,290 | ) | ||||
Tax expense from exercise of stock options | — | 24 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable | (308 | ) | (495 | ) | |||
Income tax receivable | 686 | (1,595 | ) | ||||
Inventories | 2,379 | (3,154 | ) | ||||
Prepaid expenses and other current assets | 1,540 | (119 | ) | ||||
Other assets | 477 | (115 | ) | ||||
Deferred commissions | (549 | ) | 208 | ||||
Accounts payable | 710 | 2,553 | |||||
Accrued expenses and other liabilities | (315 | ) | (1,104 | ) | |||
Taxes payable | 1,226 | 233 | |||||
Commissions and incentives payable | 518 | 2,035 | |||||
Deferred revenue | 184 | (534 | ) | ||||
Change in restricted cash | (326 | ) | (3 | ) | |||
Net cash provided by (used in) operating activities | 9,998 | (23 | ) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Acquisition of property and equipment | (1,340 | ) | (2,286 | ) | |||
Proceeds from sale of assets | 1 | 1 | |||||
Net cash used in investing activities | (1,339 | ) | (2,285 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Proceeds from stock options exercised | 83 | 39 | |||||
Repurchase of common stock | (226 | ) | (274 | ) | |||
Payment of cash dividends | (1,354 | ) | (672 | ) | |||
Repayment of capital lease obligations | (1,567 | ) | (1,551 | ) | |||
Net cash used in financing activities | (3,064 | ) | (2,458 | ) | |||
Effect of currency exchange rate changes on cash and cash equivalents | 3,400 | 1,459 | |||||
Net increase (decrease) in cash and cash equivalents | 8,995 | (3,307 | ) | ||||
Cash and cash equivalents at the beginning of the year | 28,687 | 31,994 | |||||
Cash and cash equivalents at the end of the year | $ | 37,682 | $ | 28,687 | |||
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: | |||||||
Income taxes paid, net | $ | 1,694 | $ | 1,778 | |||
Interest paid on capital leases | $ | 68 | $ | 113 | |||
Accrued asset purchases | $ | 238 | $ | 341 | |||
Assets acquired through financing arrangements | $ | 130 | $ | 694 |
Estimated useful life | |
Office furniture and equipment | 5 to 7 years |
Computer hardware and software | 3 to 5 years |
Automobiles | 3 to 5 years |
Leasehold improvements(1) | 2 to 10 years |
Loyalty program | (in thousands) | |||
Loyalty deferred revenue as of January 1, 2014 | $ | 5,456 | ||
Loyalty points forfeited | (4,664 | ) | ||
Loyalty points used | (12,348 | ) | ||
Loyalty points vested | 19,580 | |||
Loyalty points unvested | 1,679 | |||
Loyalty deferred revenue as of December 31, 2014 | $ | 9,703 |
Loyalty program | (in thousands) | ||
Loyalty deferred revenue as of January 1, 2016 | $ | 8,073 | |
Loyalty points forfeited or expired | (6,963 | ) | |
Loyalty points used | (15,451 | ) | |
Loyalty points vested | 20,085 | ||
Loyalty points unvested | 1,289 | ||
Loyalty deferred revenue as of December 31, 2016 | $ | 7,033 |
Loyalty deferred revenue as of January 1, 2015 | $ | 9,703 | ||
Loyalty points forfeited | (8,801 | ) | ||
Loyalty points used | (15,077 | ) | ||
Loyalty points vested | 20,403 | |||
Loyalty points unvested | 1,845 | |||
Loyalty deferred revenue as of December 31, 2015 | $ | 8,073 |
Loyalty deferred revenue as of January 1, 2017 | $ | 7,033 | |
Loyalty points forfeited or expired | (5,895 | ) | |
Loyalty points used | (14,316 | ) | |
Loyalty points vested | 17,836 | ||
Loyalty points unvested | 1,748 | ||
Loyalty deferred revenue as of December 31, 2017 | $ | 6,406 |
December 31, 2015 | ||||
Sales reserve as of January 1, 2015 | $ | 207 | ||
Provision related to sales made in current period | 1,456 | |||
Adjustment related to sales made in prior periods | (10 | ) | ||
Actual returns or credits related to current period | (1,319 | ) | ||
Actual returns or credits related to prior periods | (187 | ) | ||
Sales reserve as of December 31, 2015 | $ | 147 |
December 31, 2017 | |||
Sales reserve as of January 1, 2017 | $ | 129 | |
Provision related to sales made in current period | 1,274 | ||
Adjustment related to sales made in prior periods | 3 | ||
Actual returns or credits related to current period | (1,156 | ) | |
Actual returns or credits related to prior periods | (133 | ) | |
Sales reserve as of December 31, 2017 | $ | 117 |
2015 | 2014 | |||||||||||||||
Sales by product | % of total net sales | Sales by product | % of total net sales | |||||||||||||
Advanced Ambrotose® | $ | 59,026 | 32.7 | % | $ | 63,791 | 33.6 | % | ||||||||
Ambrotose® | 9,686 | 5.4 | % | 10,895 | 5.7 | % | ||||||||||
NutriVerus™ | 8,541 | 4.7 | % | 10,530 | 5.5 | % | ||||||||||
PLUS™ | 8,239 | 4.6 | % | 8,923 | 4.7 | % | ||||||||||
Ūth™ Skin Rejuvenation | 5,394 | 3.0 | % | 13,431 | 7.1 | % | ||||||||||
Total | $ | 90,886 | 50.4 | % | $ | 107,571 | 56.6 | % |
2017 | 2016 | ||||||||||||
Sales by product | % of total net sales | Sales by product | % of total net sales | ||||||||||
Advanced Ambrotose® | $ | 52,592 | 29.8 | % | $ | 55,863 | 31.0 | % | |||||
TruHealth™ | 16,652 | 9.4 | % | 9,220 | 5.1 | % | |||||||
Manapol® Powder | 11,183 | 6.3 | % | 2,153 | 1.2 | % | |||||||
Ambrotose® | 8,459 | 4.8 | % | 10,196 | 5.7 | % | |||||||
PLUS ™ | 7,461 | 4.2 | % | 7,935 | 4.4 | % | |||||||
Total | $ | 96,347 | 54.5 | % | $ | 85,367 | 47.4 | % |
2015 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Money Market Funds – Fidelity, US | $ | 319 | $ | — | $ | — | $ | 319 | ||||||||
Interest bearing deposits – various banks | 14,134 | — | — | 14,134 | ||||||||||||
Total | $ | 14,453 | $ | — | $ | — | $ | 14,453 | ||||||||
Amounts included in: | ||||||||||||||||
Cash and cash equivalents | $ | 8,281 | $ | — | $ | — | $ | 8,281 | ||||||||
Restricted cash | 737 | — | — | 737 | ||||||||||||
Long-term restricted cash | 5,435 | — | — | 5,435 | ||||||||||||
Total | $ | 14,453 | $ | — | $ | — | $ | 14,453 |
2017 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money Market Funds – Fidelity, US | $ | — | $ | — | $ | — | $ | — | |||||||
Interest bearing deposits – various banks | 23,695 | — | — | 23,695 | |||||||||||
Total assets | $ | 23,695 | $ | — | $ | — | $ | 23,695 | |||||||
Amounts included in: | |||||||||||||||
Cash and cash equivalents | $ | 16,651 | $ | — | $ | — | $ | 16,651 | |||||||
Restricted cash | 741 | — | — | 741 | |||||||||||
Long-term restricted cash | 6,303 | — | — | 6,303 | |||||||||||
Total | $ | 23,695 | $ | — | $ | — | $ | 23,695 |
2014 | Level 1 | Level 2 | Level 3 | Total | ||||||||||||
Assets | ||||||||||||||||
Money Market Funds – Fidelity, US | $ | 392 | $ | — | $ | — | $ | 392 | ||||||||
Interest bearing deposits – various banks | 12,322 | — | — | 12,322 | ||||||||||||
Total | $ | 12,714 | $ | — | $ | — | $ | 12,714 | ||||||||
Amounts included in: | ||||||||||||||||
Cash and cash equivalents | $ | 6,159 | $ | — | $ | — | $ | 6,159 | ||||||||
Restricted cash | 738 | — | — | 738 | ||||||||||||
Long-term restricted cash | 5,817 | — | — | 5,817 | ||||||||||||
Total | $ | 12,714 | $ | — | $ | — | $ | 12,714 |
2016 | Level 1 | Level 2 | Level 3 | Total | |||||||||||
Assets | |||||||||||||||
Money Market Funds – Fidelity, US | $ | 12 | $ | — | $ | — | $ | 12 | |||||||
Interest bearing deposits – various banks | 19,357 | — | — | 19,357 | |||||||||||
Total assets | $ | 19,369 | $ | — | $ | — | $ | 19,369 | |||||||
Amounts included in: | |||||||||||||||
Cash and cash equivalents | $ | 13,326 | $ | — | $ | — | $ | 13,326 | |||||||
Restricted cash | 737 | — | — | 737 | |||||||||||
Long-term restricted cash | 5,306 | — | — | 5,306 | |||||||||||
Total | $ | 19,369 | $ | — | $ | — | $ | 19,369 |
2015 | 2014 | |||||||
Raw materials | $ | 1,187 | $ | 2,118 | ||||
Finished goods | 9,277 | 10,615 | ||||||
Inventory reserves for obsolescence | (1,265 | ) | (2,142 | ) | ||||
Total | $ | 9,199 | $ | 10,591 |
2017 | 2016 | ||||||
Raw materials | $ | 879 | $ | 239 | |||
Finished goods | 9,072 | 12,103 | |||||
Inventory reserves for obsolescence | (566 | ) | (381 | ) | |||
Total | $ | 9,385 | $ | 11,961 |
2015 | 2014 | |||||||
Office furniture and equipment | $ | 8,576 | $ | 8,666 | ||||
Computer hardware | 7,747 | 7,738 | ||||||
Computer software | 47,724 | 46,791 | ||||||
Automobiles | 81 | 81 | ||||||
Leasehold improvements | 12,393 | 12,270 | ||||||
76,521 | 75,546 | |||||||
Less accumulated depreciation and amortization | (72,673 | ) | (73,065 | ) | ||||
Property and equipment, net | 3,848 | 2,481 | ||||||
Construction in progress | 839 | 1,622 | ||||||
Total | $ | 4,687 | $ | 4,103 |
2017 | 2016 | ||||||
Office furniture and equipment | $ | 7,648 | $ | 7,791 | |||
Computer hardware | 5,209 | 7,100 | |||||
Computer software | 49,687 | 48,316 | |||||
Automobiles | 81 | 81 | |||||
Leasehold improvements | 11,530 | 12,351 | |||||
74,155 | 75,639 | ||||||
Less accumulated depreciation and amortization | (70,618 | ) | (72,028 | ) | |||
Property and equipment, net | 3,537 | 3,611 | |||||
Construction in progress | 777 | 1,012 | |||||
Total | $ | 4,314 | $ | 4,623 |
2016 | $ | 492 | ||
2017 | 370 | |||
2018 | 205 | |||
2019 | 52 | |||
2020 | 13 | |||
Total future minimum lease payments | 1,132 | |||
Less: Amounts representing interest (effective interest rate 4.74%) | (73 | ) | ||
Present value of minimum lease payments | 1,059 | |||
Current portion of capital lease obligations | 447 | |||
Long-term portion of capital lease obligations | $ | 612 |
2018 | $ | 241 | |
2019 | 78 | ||
2020 | 40 | ||
2021 | 28 | ||
2022 | 7 | ||
Total future minimum lease payments | 394 | ||
Less: Amounts representing interest (effective interest rate 5.61%) | (22 | ) | |
Present value of minimum lease payments | 372 | ||
Current portion of capital lease obligations | 228 | ||
Long-term portion of capital lease obligations | $ | 144 |
2015 | 2014 | |||||||
Accrued asset purchases | $ | 277 | $ | 291 | ||||
Accrued compensation | 1,620 | 2,180 | ||||||
Accrued royalties | 68 | 105 | ||||||
Accrued sales and other taxes | 2,323 | 1,193 | ||||||
Other accrued operating expenses | 562 | 786 | ||||||
Customer deposits and sales returns | 153 | 211 | ||||||
Accrued travel expenses related to corporate events | 271 | 107 | ||||||
Accrued shipping and handling costs | 257 | 344 | ||||||
Rent expense | 76 | 147 | ||||||
Accrued legal and accounting fees | 614 | 992 | ||||||
$ | 6,221 | $ | 6,356 |
2017 | 2016 | ||||||
Accrued asset purchases | $ | 238 | $ | 341 | |||
Accrued compensation | 1,685 | 1,533 | |||||
Accrued royalties | 55 | 75 | |||||
Accrued sales and other taxes | 260 | 1,446 | |||||
Other accrued operating expenses | 785 | 675 | |||||
Customer deposits and sales returns | 153 | 137 | |||||
Accrued travel expenses related to corporate events | 1,156 | 255 | |||||
Accrued shipping and handling costs | 691 | 290 | |||||
Rent expense | 211 | 219 | |||||
Accrued legal and accounting fees | 537 | 634 | |||||
$ | 5,771 | $ | 5,605 |
2015 | 2014 | |||||||
United States | $ | 769 | $ | 2,044 | ||||
Foreign | 7,430 | 7,777 | ||||||
$ | 8,199 | $ | 9,821 |
2017 | 2016 | ||||||
United States | $ | (6,911 | ) | $ | (2,368 | ) | |
Foreign | 9,371 | 1,413 | |||||
$ | 2,460 | $ | (955 | ) |
Current provision (benefit): | 2015 | 2014 | ||||||
Federal | $ | (336 | ) | $ | 2,433 | |||
State | 21 | 43 | ||||||
Foreign | 2,518 | 2,547 | ||||||
2,203 | 5,023 | |||||||
Deferred provision (benefit): | ||||||||
Federal | 191 | (1,792 | ) | |||||
State | 72 | 349 | ||||||
Foreign | (106 | ) | (255 | ) | ||||
157 | (1,698 | ) | ||||||
$ | 2,360 | $ | 3,325 |
Current provision (benefit): | 2017 | 2016 | |||||
Federal | $ | (1,157 | ) | $ | (396 | ) | |
State | 75 | 59 | |||||
Foreign | 3,186 | 1,438 | |||||
2,104 | 1,101 | ||||||
Deferred provision (benefit): | |||||||
Federal | 1,185 | (95 | ) | ||||
State | (425 | ) | (25 | ) | |||
Foreign | 1,383 | (1,350 | ) | ||||
2,143 | (1,470 | ) | |||||
$ | 4,247 | $ | (369 | ) |
2015 | 2014 | |||||||
Federal statutory income taxes | 35.0 | % | 35.0 | % | ||||
State income taxes, net of federal benefit | 1.0 | 3.5 | ||||||
Difference in foreign and United States tax on foreign operations | (14.8 | ) | (16.1 | ) | ||||
Effect of changes in valuation allowance for net operating loss carryforwards | (8.7 | ) | 14.3 | |||||
Effect of change in uncertain tax positions (net) | (0.2 | ) | 0.5 | |||||
Federal Sub-Part F Income from foreign operations | 5.1 | 2.9 | ||||||
Foreign exchange | 5.3 | (0.3 | ) | |||||
Other | 6.2 | (5.9 | ) | |||||
28.9 | % | 33.9 | % |
2017 | 2016 | ||||
Federal statutory income taxes | 35.0 | % | 35.0 | % | |
State income taxes, net of federal benefit | (8.0 | ) | (4.1 | ) | |
Difference in foreign and United States tax on foreign operations | (68.6 | ) | 9.5 | ||
Effect of changes in valuation allowance | 121.1 | 59.0 | |||
Effect of change in uncertain tax positions (net) | (22.6 | ) | 12.8 | ||
Federal Sub-Part F Income from foreign operations | 6.6 | (27.4 | ) | ||
Federal Transition Tax (net of deduction) | 191.4 | — | |||
Effect of changes in tax rates | 32.5 | — | |||
Foreign Exchange | 9.4 | (45.7 | ) | ||
Prior year adjustments | 17.4 | — | |||
Other deferred - NOL expiration | 26.0 | — | |||
Foreign tax credits and withholding tax | (180.8 | ) | — | ||
Meals and entertainment | 5.5 | — | |||
Other permanent items | 4.4 | — | |||
Other | 3.4 | (0.4 | ) | ||
172.7 | % | 38.7 | % |
Deferred tax assets: | 2015 | 2014 | ||||||
Current: | ||||||||
Deferred revenue | $ | 567 | $ | 453 | ||||
Inventory capitalization | 209 | 171 | ||||||
Inventory reserves | 376 | 762 | ||||||
Accrued expenses | 974 | 697 | ||||||
Other | 205 | 127 | ||||||
Total current deferred tax assets | 2,331 | 2,210 | ||||||
Noncurrent: | ||||||||
Depreciation and amortization | 1,788 | 1,867 | ||||||
Net operating loss(1) | 5,378 | 5,842 | ||||||
Deferred royalty | 16 | 28 | ||||||
Non-cash accounting charges related to stock options and warrants | 684 | 628 | ||||||
Accrued expenses | 239 | 350 | ||||||
Foreign tax credit carryover | 3,568 | 3,855 | ||||||
Other | 620 | 506 | ||||||
Total noncurrent deferred tax assets | 12,293 | 13,076 | ||||||
Total deferred tax assets | 14,624 | 15,286 | ||||||
Valuation allowance | (9,028 | ) | (9,745 | ) | ||||
Total deferred tax assets, net of valuation allowance | $ | 5,596 | $ | 5,541 | ||||
Deferred tax liabilities: | ||||||||
Current: | ||||||||
Prepaid expenses | $ | 406 | $ | 413 | ||||
Deferred commissions | 846 | 769 | ||||||
Other | — | 10 | ||||||
Total current deferred tax liabilities | 1,252 | 1,192 | ||||||
Noncurrent: | ||||||||
Internally-developed software | 266 | 11 | ||||||
Depreciation and amortization | 1 | 2 | ||||||
Sub-Part F income deferred | — | — | ||||||
Other | — | 24 | ||||||
Total noncurrent deferred tax liabilities | 267 | 37 | ||||||
Total deferred tax liabilities | $ | 1,519 | $ | 1,229 |
Deferred tax assets: | 2017 | 2016 | |||||
Deferred revenue | $ | 353 | $ | 492 | |||
Inventory capitalization | 147 | 258 | |||||
Inventory reserves | 112 | 82 | |||||
Accrued expenses | 917 | 799 | |||||
Depreciation and amortization | 1,506 | 2,181 | |||||
Net operating loss(1) | 6,549 | 6,021 | |||||
Deferred royalty | 5 | 18 | |||||
Non-cash accounting charges related to stock options and warrants | 464 | 715 | |||||
Foreign tax credit carryover | 5,544 | 3,797 | |||||
Other | 360 | 932 | |||||
Total deferred tax assets | $ | 15,957 | $ | 15,295 | |||
Valuation allowance | (11,436 | ) | (8,458 | ) | |||
Total deferred tax assets, net of valuation allowance | $ | 4,521 | $ | 6,837 | |||
Deferred tax liabilities: | |||||||
Prepaid expenses | $ | 239 | $ | 380 | |||
Deferred commissions | 543 | 742 | |||||
Internally-developed software | 381 | 205 | |||||
Fixed assets | 266 | 178 | |||||
Total deferred tax liabilities | $ | 1,429 | $ | 1,505 | |||
Total net deferred tax asset | $ | 3,092 | $ | 5,332 | |||
Jurisdiction | Gross NOL | Tax Effected NOL | Expiration Years | ||||||
Canada | $ | 9 | $ | 2 | 2026 | ||||
Colombia | $ | 1,641 | $ | 558 | Indefinite | ||||
Cyprus | $ | 8 | $ | 1 | 2021 | ||||
Denmark | $ | 9 | $ | 2 | Indefinite | ||||
Hong Kong | $ | 110 | $ | 18 | Indefinite | ||||
Japan | $ | 400 | $ | 139 | Indefinite | ||||
Mexico | $ | 9,395 | $ | 2,819 | 2020-2027 | ||||
Norway | $ | 263 | $ | 61 | Indefinite | ||||
Russia(1) | $ | 49 | $ | 10 | Indefinite | ||||
Singapore | $ | 131 | $ | 22 | Indefinite | ||||
South Africa | $ | 239 | $ | 67 | Indefinite | ||||
Sweden | $ | 549 | $ | 121 | Indefinite | ||||
Switzerland | $ | 10,893 | $ | 1,001 | 2018-2023 | ||||
Taiwan | $ | 4,707 | $ | 800 | 2018-2026 | ||||
Ukraine(2) | $ | 604 | $ | 109 | Indefinite | ||||
United Kingdom | $ | 454 | $ | 86 | Indefinite |
(1) | On August 1, 2016, the Company established a legal entity in Russia. |
(2) | On March 21, 2014, the Company suspended operations in the Ukraine, but maintains the legal entity. |
Jurisdiction | Gross NOL | Tax Effected NOL | Expiration Years | |||||||||
Colombia | $ | 64 | $ | 22 | 2019 | |||||||
Mexico | 8,482 | 2,545 | 2020-2024 | |||||||||
Norway | 249 | 67 | Indefinite | |||||||||
Singapore | 131 | 22 | Indefinite | |||||||||
Sweden | 513 | 113 | Indefinite | |||||||||
Switzerland | 11,371 | 1,028 | 2016-2020 | |||||||||
Taiwan | 7,133 | 1,213 | 2016-2024 | |||||||||
Ukraine(1) | 581 | 105 | Indefinite | |||||||||
United States (states) | 11,079 | 277 | 2016-2032 |
Country | 2015 | 2014 | ||||||
Mexico | $ | 2.5 | $ | 2.7 | ||||
Norway | — | 0.1 | ||||||
Sweden | 0.1 | 0.1 | ||||||
Switzerland | 1.0 | 1.2 | ||||||
Taiwan | 1.2 | 1.2 | ||||||
Ukraine(1) | 0.1 | 0.1 | ||||||
United States | 4.0 | 4.3 | ||||||
Other Jurisdictions | 0.1 | — | ||||||
Total | $ | 9.0 | $ | 9.7 |
Country | 2017 | 2016 | |||||
Colombia | $ | 0.6 | $ | 0.3 | |||
Mexico | 2.8 | 2.4 | |||||
South Africa | 0.1 | — | |||||
Sweden | 0.1 | 0.1 | |||||
Switzerland | — | 0.1 | |||||
Taiwan | 0.8 | 1.3 | |||||
Ukraine | 0.1 | 0.1 | |||||
United Kingdom | 0.1 | — | |||||
United States | 6.8 | 4.1 | |||||
Other Jurisdictions | — | 0.1 | |||||
Total | $ | 11.4 | $ | 8.5 |
2015 | 2014 | |||||||
Current deferred tax assets | $ | 460 | $ | 1,141 | ||||
Noncurrent deferred tax assets | 3,725 | 3,320 | ||||||
Current deferred tax liabilities | (84 | ) | (123 | ) | ||||
Other long-term liabilities | (24 | ) | (26 | ) | ||||
Net deferred tax assets | $ | 4,077 | $ | 4,312 |
2017 | 2016 | ||||||
Noncurrent deferred tax assets | $ | 4,239 | $ | 5,368 | |||
Long-term deferred tax liabilities | (1,147 | ) | (29 | ) | |||
Net deferred tax assets | $ | 3,092 | $ | 5,339 |
2015 | 2014 | |||||||
Balance as of January 1 | $ | 803 | $ | 738 | ||||
Additions for tax positions related to the current year | — | 1 | ||||||
Additions for tax positions of prior years | — | 111 | ||||||
Reductions of tax positions of prior years | (71 | ) | (47 | ) | ||||
Settlements | (17 | ) | — | |||||
Balance as of December 31 | $ | 715 | $ | 803 |
2017 | 2016 | ||||||
Balance as of January 1 | $ | 733 | $ | 715 | |||
Additions for tax positions related to the current year | — | 90 | |||||
Additions for tax positions of prior years | — | 54 | |||||
Reductions of tax positions of prior years | (576 | ) | (126 | ) | |||
Balance as of December 31 | $ | 157 | $ | 733 |
Jurisdiction | Open Years | |||
Australia | 2013-2017 | |||
Canada | 2013-2017 | |||
China | 2016-2017 | |||
Denmark | 2014-2017 | |||
Japan | 2014-2017 | |||
Mexico | 2013-2017 | |||
Norway | 2010-2017 | |||
Republic of Korea | 2011-2017 | |||
Singapore | 2013-2017 | |||
South Africa | 2014-2017 | |||
Sweden | 2012-2017 | |||
Switzerland | 2013-2017 | |||
Taiwan | 2012-2017 | |||
United Kingdom | 2014-2017 | |||
United States | 2014-2017 |
Al Bala, the Company’s CEO and President; |
2015 | 2014 | |||||||
Sold Products | $ | — million | $ | 0.3 million | ||||
Contributed Cash Donations | $ | — million | $ | 0.3 million |
Projected benefit obligation: | 2015 | 2014 | ||||||
Balance, beginning of year | $ | 549 | $ | 629 | ||||
Service cost | 75 | 88 | ||||||
Interest cost | 3 | 3 | ||||||
Liability losses | (4 | ) | (6 | ) | ||||
Benefits paid to participants | (141 | ) | (122 | ) | ||||
Special termination benefit | — | 34 | ||||||
Foreign currency | (3 | ) | (77 | ) | ||||
Balance, end of year | $ | 479 | $ | 549 | ||||
Plan assets: | 2015 | 2014 | ||||||
Fair value, beginning of year | $ | — | $ | — | ||||
Company contributions | 141 | 122 | ||||||
Benefits paid to participants | (141 | ) | (122 | ) | ||||
Fair value, end of year | $ | — | $ | — |
Projected benefit obligation: | 2017 | 2016 | |||||
Balance, beginning of year | $ | 451 | $ | 479 | |||
Service cost | 76 | 83 | |||||
Interest cost | 2 | 2 | |||||
Liability (gain) loss | (9 | ) | 6 | ||||
Benefits paid to participants | (170 | ) | (138 | ) | |||
Foreign currency | 17 | 19 | |||||
Balance, end of year | $ | 367 | $ | 451 | |||
Plan assets: | 2017 | 2016 | |||||
Fair value, beginning of year | $ | — | $ | — | |||
Company contributions | 170 | 138 | |||||
Benefits paid to participants | (170 | ) | (138 | ) | |||
Fair value, end of year | $ | — | $ | — |
Funded status of the Benefit Plan as of December 31 (in thousands): | 2017 | 2016 | |||||
Benefit obligation | $ | (367 | ) | $ | (451 | ) | |
Fair value of plan assets | — | — | |||||
Excess of benefit obligation over fair value of plan assets | $ | (367 | ) | $ | (451 | ) |
Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands): | 2017 | 2016 | |||||
Accrued benefit liability | $ | (367 | ) | $ | (451 | ) | |
Transition obligation and unrealized gain | (289 | ) | (307 | ) | |||
Net amount recognized in the consolidated balance sheets | $ | (656 | ) | $ | (758 | ) |
Funded status of the Benefit Plan as of December 31 (in thousands): | 2015 | 2014 | ||||||
Benefit obligation | $ | (479 | ) | $ | (549 | ) | ||
Fair value of plan assets | — | — | ||||||
Excess of benefit obligation over fair value of plan assets | $ | (479 | ) | $ | (549 | ) |
Amounts recognized in the accompanying Consolidated Balance Sheets consist of, as of December 31 (in thousands): | 2015 | 2014 | ||||||
Accrued benefit liability | $ | (479 | ) | $ | (549 | ) | ||
Transition obligation and unrealized gain | (339 | ) | (372 | ) | ||||
Net amount recognized in the consolidated balance sheets | $ | (818 | ) | $ | (921 | ) |
Years Ended December 31, | ||||||||
Other changes recognized in comprehensive income (loss) (in thousands): | 2015 | 2014 | ||||||
Net periodic cost | $ | 43 | $ | 85 | ||||
Current year gain | (4 | ) | (6 | ) | ||||
Amortization of transition obligation | (4 | ) | (4 | ) | ||||
Total recognized in other comprehensive income (loss) | (8 | ) | (10 | ) | ||||
Total recognized in comprehensive income (loss) | $ | 35 | $ | 75 |
Years Ended December 31, | |||||||
Other changes recognized in comprehensive income (in thousands): | 2017 | 2016 | |||||
Net periodic cost | $ | 40 | $ | 46 | |||
Current year actuarial (gain) loss | (9 | ) | 6 | ||||
Amortization of transition obligation | (4 | ) | (4 | ) | |||
Total recognized in other comprehensive income (loss) | (13 | ) | 2 | ||||
Total recognized in comprehensive income | $ | 27 | $ | 48 |
As of December 31, | ||||||||
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain (loss) (in thousands): | 2015 | 2014 | ||||||
Transition obligation | $ | 22 | $ | 13 | ||||
Prior service cost | 313 | 353 | ||||||
Net actuarial gain | 4 | 6 | ||||||
Total recognized in accumulated other comprehensive gain (loss) | $ | 339 | $ | 372 |
As of December 31, | |||||||
Amounts not yet reflected in net periodic benefit cost and included in accumulated other comprehensive gain (in thousands): | 2017 | 2016 | |||||
Transition obligation | $ | 28 | $ | 30 | |||
Prior service cost | 252 | 283 | |||||
Net actuarial gain (loss) | 9 | (6 | ) | ||||
Total recognized in accumulated other comprehensive gain | $ | 289 | $ | 307 |
2016 estimated amounts of amortized transition obligation (in thousands): | 2016 | |||
Transition obligation | $ | (4 | ) |
2017 estimated amounts of amortized transition obligation (in thousands): | 2017 | ||
Transition obligation | $ | (4 | ) |
As of December 31, | ||||||||
Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands): | 2015 | 2014 | ||||||
Projected benefit obligation | $ | 479 | $ | 549 | ||||
Accumulated benefit obligation | 479 | 549 | ||||||
Fair value of plan assets | — | — |
As of December 31, | |||||||
Aggregate Benefit Plan information and accumulated benefit obligation in excess of plan assets (in thousands): | 2017 | 2016 | |||||
Projected benefit obligation | $ | 367 | $ | 451 | |||
Accumulated benefit obligation | 367 | 451 | |||||
Fair value of plan assets | — | — |
2015 | 2014 | |||||||
Discount rate | 0.40 | % | 0.50 | % | ||||
Rate of increase in compensation levels | — | % | — | % |
2015 | 2014 | |||||||
Service cost | $ | 75 | $ | 88 | ||||
Interest cost | 3 | 3 | ||||||
Amortization of transition obligation | 4 | 4 | ||||||
Gain | — | — | ||||||
Special termination | — | 34 | ||||||
Prior service cost | (39 | ) | (44 | ) | ||||
Benefit adjustment | — | — | ||||||
Total pension expense | $ | 43 | $ | 85 |
2017 | 2016 | ||||||
Service cost | $ | 76 | $ | 83 | |||
Interest cost | 2 | 2 | |||||
Amortization of transition obligation | 4 | 4 | |||||
Prior service cost | (42 | ) | (43 | ) | |||
Total pension expense | $ | 40 | $ | 46 |
2016 | $ | 53 | ||
2017 | 52 | |||
2018 | 49 | |||
2019 | 49 | |||
2020 | 43 | |||
Next five years | 368 | |||
Total expected benefits to be paid | $ | 614 |
2018 | $ | 24 | |
2019 | 26 | ||
2020 | 27 | ||
2021 | 25 | ||
2022 | 58 | ||
Next five years | 324 | ||
Total expected benefits to be paid | $ | 484 |
2015 | ||||||||||||||||
Number of Options (in thousands) | Weighted average exercise price | Weighted average remaining contractual life (in years) | Aggregate intrinsic value (in thousands) | |||||||||||||
Outstanding at beginning of year | 249 | 16.71 | ||||||||||||||
Granted | 37 | 19.18 | ||||||||||||||
Exercised | (5 | ) | 5.72 | |||||||||||||
Forfeited or expired | (55 | ) | 19.78 | |||||||||||||
Outstanding at end of year | 226 | 16.61 | 7.09 | 505 | ||||||||||||
Options exercisable at year end | 148 | 16.95 | 6.34 | 282 |
2017 | ||||||||||||
Number of Options (in thousands) | Weighted average exercise price | Weighted average remaining contractual life (in years) | Aggregate intrinsic value (in thousands) | |||||||||
Outstanding at beginning of year | 252 | $ | 16.65 | |||||||||
Granted | 10 | 14.18 | ||||||||||
Exercised | (15 | ) | 5.48 | |||||||||
Expired | — | — | ||||||||||
Outstanding at end of year | 247 | $ | 17.23 | 5.53 | $ | (552 | ) | |||||
Options exercisable at year end | 232 | $ | 17.26 | 5.31 | $ | (524 | ) |
2015 | 2014 | |||||||
Dividend yield: | — | (1) | — | (1) | ||||
Risk-free interest rate: | 1.2 – 1.6 | % | 1.3 - 1.5 | % | ||||
Expected market price volatility: | 79.1 – 80.1 | % | 77.1 – 80.5 | % | ||||
Average expected life of stock options: | 4.5 years | 4.5 years |
2017 | 2016 | |||
Dividend yield: | 3.5 | % | 2.5 | % |
Risk-free interest rate: | 1.7 | % | 1.1 – 1.7 | % |
Expected market price volatility: | 64.4 | % | 67.4 – 73.5 | % |
Average expected life of stock options: | 4.5 years | 4.5 years |
2015 | 2014 | |||||||
Selling, general and administrative expenses and income from operations before income taxes | $ | 575 | $ | 512 | ||||
Benefit for income taxes | (137 | ) | (137 | ) | ||||
Effect on net income | $ | 438 | $ | 375 |
2017 | 2016 | ||||||
Selling, general and administrative expenses and income from operations before income taxes | $ | 246 | $ | 690 | |||
Benefit for income taxes | (45 | ) | (86 | ) | |||
Effect on net income | $ | 201 | $ | 604 |
Total gross unrecognized compensation expense | Total tax benefit associated with unrecognized compensation expense | Total net unrecognized compensation expense | ||||||||||
2016 | $ | 352 | $ | 54 | $ | 298 | ||||||
2017 | 176 | 18 | 158 | |||||||||
2018 | 99 | — | 99 | |||||||||
$ | 627 | $ | 72 | $ | 555 |
Total gross unrecognized compensation expense | Total tax benefit associated with unrecognized compensation expense | Total net unrecognized compensation expense | |||||||||
2018 | $ | 122 | $ | 20 | $ | 102 | |||||
2019 | 38 | 3 | 35 | ||||||||
$ | 160 | $ | 23 | $ | 137 |
Years ending December 31, | ||||
2016 | $ | 1,729 | ||
2017 | 1,430 | |||
2018 | 787 | |||
2019 | 297 | |||
2020 | 112 | |||
Thereafter | — | |||
$ | 4,355 |
Years ending December 31, | |||
2018 | $ | 2,639 | |
2019 | 1,353 | ||
2020 | 602 | ||
2021 | 487 | ||
2022 | 491 | ||
Thereafter | 2,801 | ||
$ | 8,373 |
Foreign Currency Translation | Pension Postretirement Benefit Obligation | Accumulated Other Comprehensive Loss, Net | ||||||||||
Balance as of December 31, 2014 | $ | (457 | ) | $ | 348 | $ | (109 | ) | ||||
Current-period change before reclassifications | 815 | — | 815 | |||||||||
Amounts reclassified from accumulated other comprehensive income (loss) | — | (31 | ) | (31 | ) | |||||||
Income tax provision | — | 11 | 11 | |||||||||
Balance as of December 31, 2015 | $ | 358 | $ | 328 | $ | 686 |
Foreign Currency Translation | Pension Postretirement Benefit Obligation | Accumulated Other Comprehensive Income, Net | |||||||||
Balance as of December 31, 2016 | $ | 1,534 | $ | 300 | $ | 1,834 | |||||
Current-period change before reclassifications | 4,169 | — | 4,169 | ||||||||
Amounts reclassified from accumulated other comprehensive income | — | (29 | ) | (29 | ) | ||||||
Income tax benefit | — | 10 | 10 | ||||||||
Balance as of December 31, 2017 | $ | 5,703 | $ | 281 | $ | 5,984 |
Region | 2015 | 2014 | ||||||||||||||
North America | $ | 73.3 | 40.7 | % | $ | 80.8 | 42.5 | % | ||||||||
Asia/Pacific | 91.4 | 50.7 | % | 92.4 | 48.6 | % | ||||||||||
EMEA | 15.6 | 8.6 | % | 16.9 | 8.9 | % | ||||||||||
Total | $ | 180.3 | 100.0 | % | $ | 190.1 | 100.0 | % |
Region | 2017 | 2016 | |||||||||||
Americas | $ | 64.2 | 36.3 | % | $ | 70.2 | 38.9 | % | |||||
Asia/Pacific | 98.8 | 55.9 | % | 96.2 | 53.4 | % | |||||||
EMEA | 13.7 | 7.8 | % | 13.9 | 7.7 | % | |||||||
Total | $ | 176.7 | 100.0 | % | $ | 180.3 | 100.0 | % |
2015 | 2014 | |||||||
Consolidated product sales | $ | 143.1 | $ | 155.3 | ||||
Consolidated pack sales | 31.7 | 27.8 | ||||||
Consolidated other, including freight | 5.5 | 7.0 | ||||||
Total | $ | 180.3 | $ | 190.1 |
2017 | 2016 | ||||||
Consolidated product sales | $ | 157.9 | $ | 148.6 | |||
Consolidated pack sales and associate fees(a) | 14.2 | 26.7 | |||||
Consolidated other, including freight | 4.6 | 5.0 | |||||
Total | $ | 176.7 | $ | 180.3 |
Region | 2015 | 2014 | ||||||
North America | $ | 3.5 | $ | 3.1 | ||||
Asia/Pacific | 1.1 | 0.8 | ||||||
EMEA | 0.1 | 0.2 | ||||||
Total | $ | 4.7 | $ | 4.1 |
Region | 2017 | 2016 | |||||
Americas | $ | 2.9 | $ | 3.1 | |||
Asia/Pacific | 1.3 | 1.4 | |||||
EMEA | 0.1 | 0.1 | |||||
Total | $ | 4.3 | $ | 4.6 |
Region | 2015 | 2014 | ||||||
North America | $ | 3.4 | $ | 4.0 | ||||
Asia/Pacific | 4.3 | 4.3 | ||||||
EMEA | 1.5 | 2.3 | ||||||
Total | $ | 9.2 | $ | 10.6 |
Region | 2017 | 2016 | |||||
Americas | 3.5 | 4.8 | |||||
Asia/Pacific | 4.5 | 4.2 | |||||
EMEA | 1.4 | 3.0 | |||||
Total | $ | 9.4 | $ | 12.0 |
Incorporated by Reference | |||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit (s) | Filing Date |
3.1 | Amended and Restated Articles of Incorporation of Mannatech, dated May 19, 1998. | S-1 | 333-63133 | 3.1 | October 28, 1998 |
3.2 | Amendment to the Amended and Restated Articles of Incorporation of Mannatech, dated January 13, 2012. | 8-K | 000-24657 | 3.1 | January 17, 2012 |
3.3 | Fifth Amended and Restated Bylaws of Mannatech, effective August 25, 2014. | 8-K | 000-24657 | 3.1 | August 27, 2014 |
4.1 | Specimen Certificate representing Mannatech’s common stock, par value $0.0001 per share. | S-1 | 333-63133 | 4.1 | October 28, 1998 |
10.1 | Amended and Restated 1997 Stock Option Plan, dated August 7, 2004. | 10-K | 000-24657 | 10.1 | March 15, 2004 |
10.2 | 2008 Stock Incentive Plan, as amended. | S-8 | 333-197400 | 4.4 | July 14, 2014 |
10.3 | Investment Agreement by and between Mannatech and Dutchess Opportunity Fund, II, LP dated September 16, 2010. | 8-K | 000-24657 | 10.1 | September 21, 2010 |
10.4 | Amendment to Investment Agreement, dated as of October 4, 2010, by and between Mannatech and Dutchess Opportunity Fund, II, LP. | 8-K | 000-24657 | 10.1 | October 5, 2010 |
10.5 | Amended and Restated 1998 Incentive Stock Option Plan, dated August 7, 2004. | 10-K | 000-24657 | 10.1 | March 15, 2004 |
10.6 | Registration Rights Agreement by and between Mannatech and Dutchess Opportunity Fund, II, LP dated September 16, 2010. | 8-K | 000-24657 | 10.2 | September 21, 2010 |
10.7 | Amended and Restated 2000 Option Plan, dated August 7, 2004. | 10-K | 000-24657 | 10.1 | March 15, 2004 |
10.8 | Form of Indemnification Agreement between Mannatech and each member of the Board of Directors of Mannatech Korea Ltd., dated March 3, 2004. | 10-Q | 000-24657 | 10.2 | August 9, 2004 |
10.9 | Form of Indemnification Agreement between Mannatech and each of the following directors: J. Stanley Fredrick, Patricia Wier, Alan D. Kennedy, Gerald E. Gilbert, Marlin Ray Robbins, Larry A. Jobe, and Robert A. Toth. | 10-Q | 000-24657 | 10.4 | November 4, 2010 |
10.10 | Commercial Lease Agreement between Mannatech and MEPC Quorum Properties II Inc., dated November 7, 1996, as amended by the First Amendment thereto dated May 29, 1997 and the Second Amendment thereto dated November 13, 1997. | S-1 | 333-63133 | 10.13 | September 10, 1998 |
10.11 | Second Amendment to the Commercial Lease Agreement between Mannatech and Texas Dugan Limited Partnership, dated September 22, 2005. | 10-Q | 000-24657 | 10.1 | November 9, 2005 |
10.12 | Commercial Lease Agreement between Mannatech and MEPC Quorum Properties II Inc., dated May 29, 1997 as amended by the First Amendment thereto dated November 6, 1997. | S-1 | 333-63133 | 10.14 | September 10, 1998 |
10.13 | Third Amendment to the Commercial Lease Agreement between Mannatech and Texas Dugan Limited Partnership, dated September 22, 2005. | 10-Q | 000-24657 | 10.2 | November 9, 2005 |
10.14 | Trademark License and Supply Agreement between Mannatech and Carrington Laboratories, Inc., dated January 25, 2007. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 8-K | 000-24657 | 10.1 | January 31, 2007 |
10.15 | Supply Agreement between Mannatech and Natural Aloe de Costa Rica, S.A. dated April 1, 2012 (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 8-K | 000-24657 | 10.1 | May 3, 2011 |
10.16 | Supply Agreement between Mannatech (International) Limited and Marinova Pty. Limited, effective August 9, 2007 and dated May 7, 2007. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 10-Q | 000-24657 | 10.3 | May 10, 2007 |
Incorporated by Reference | |||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit (s) | Filing Date |
10.17 | Amendment to Purchase Agreement between Mannatech and Marinova PTY, Limited, dated May 6, 2008. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 10-Q | 000-24657 | 10.4 | August 11, 2008 |
10.18 | Purchase Agreement between Mannatech and Larex, Inc., dated January 1, 2006. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 10-K | 000-24657 | 10.18 | March 16, 2006 |
10.19 | Purchase Agreement between Mannatech and Wellness Enterprises, LLC, dated February 1, 2006. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 10-K | 000-24657 | 10.19 | March 16, 2006 |
10.20 | Supply Agreement between Mannatech and Coradji PTY. Limited, dated March 29, 2004. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 10-Q/A | 000-24657 | 10.1 | March 29, 2005 |
10.21 | Supply License Agreement between Mannatech and InB:Biotechnologies, Inc., dated March 22, 2006. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 10-Q | 000-24657 | 10.2 | May 10, 2006 |
10.22 | Initial Commercial Supply and Manufacturing Agreement between Mannatech and Fine Chemetics, Inc., dated March 29, 2006. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 10-Q | 000-24657 | 10.3 | May 10, 2006 |
10.23 | Supply Agreement between Mannatech, Incorporated, and Improve U.S.A., Inc., effective June 1, 2008, and executed May 2, 2008. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 8-K | 000-24657 | 10.1 | May 8, 2008 |
10.24 | Amendment to Supply Agreement between Mannatech and Improve U.S.A., dated June 1, 2011. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 8-K | 000-24657 | 10.1 | August 22, 2011 |
10.25 | Services Agreement by and between Integrated Distribution and Logistics Direct, LLC and Mannatech dated July 2, 2012 (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 8-K | 000-24657 | 10.1 | July 9, 2012 |
10.26 | Sublease by and between Integrated Distribution and Logistics Direct, LLC and Mannatech, dated July 2, 2012. (Portions of this exhibit were omitted pursuant to a confidential treatment request submitted pursuant to Rule 24b-2 of the Exchange Act.) | 8-K | 000-24657 | 10.2 | July 9, 2012 |
10.27 | Amended and Restated Employment Agreement between Terry L. Persinger and Mannatech, dated June 16, 2008. | 8-K | 000-24657 | 10.1 | June 20, 2008 |
10.28 | Employment Agreement between Robert A. Sinnott, Ph.D. and Mannatech, dated October 5, 2007. | 8-K | 000-24657 | 10.3 | October 11, 2007 |
10.29 | Employment Agreement between Mannatech and Mr. Samuel L. Caster, dated January 23, 2006. | 10-K | 000-24657 | 10.32 | March 16, 2006 |
10.30 | Employment Agreement between Stephen D. Fenstermacher and Mannatech, dated October 5, 2007. | 8-K | 000-24657 | 10.2 | October 11, 2007 |
10.31 | First Amendment to Employment Agreement between Stephen D. Fenstermacher and Mannatech, dated December 18, 2008. | 10-K | 000-24657 | 10.24 | March 12, 2009 |
10.32 | Mutual Severance and Release Agreement by and between Stephen D. Fenstermacher and Mannatech, dated March 12, 2012 | 10-Q | 000-24657 | 10.1 | May 10, 2012 |
10.33 | Employment Agreement between Terence L. O’Day and Mannatech, dated October 5, 2007. | 8-K | 000-24657 | 10.1 | October 11, 2007 |
Incorporated by Reference | ||||||||||
Exhibit Number | Exhibit Description | Form | File No. | Exhibit (s) | Filing Date | |||||
10.34 | Employment Agreement between B. Keith Clark and Mannatech, dated October 5, 2007. | 8-K | 000-24657 | 10.4 | October 11, 2007 | |||||
10.35 | Employment Agreement between Wayne L. Badovinus and Mannatech, dated June 4, 2008. | 8-K | 000-24657 | 10.1 | June 9, 2008 | |||||
10.36 | Employment Agreement between Terri F. Maxwell and Mannatech, dated August 28, 2008. | 8-K | 000-24657 | 10.1 | September 2, 2008 | |||||
10.37 | Lock-up Agreement between Mannatech and J. Stanley Fredrick, dated November 6, 2003. | 10-K | 000-24657 | 10.36 | March 15, 2004 | |||||
10.38 | Termination of Lock-up Agreement between Mannatech and J. Stanley Fredrick, dated March 6, 2009. | 8-K | 000-24657 | 10.1 | March 10, 2009 | |||||
10.39 | Follow-Up Agreement to Letter of Intent Agreement between Mannatech and Jett, dated September 10, 2001. | 10-Q | 000-24657 | 10.4 | November 14, 2001 | |||||
10.40 | Letter of Understanding between Mannatech and Dr. John Axford, dated April 19, 2006. | 8-K | 000-24657 | 99.1 | April 21, 2006 | |||||
10.41 | Extension of the Letter of Spokesperson Arrangement between Mannatech and Dr. John Axford, dated February 18, 2007. | 8-K | 000-24657 | 99.1 | February 21, 2007 | |||||
10.42 | Employment Agreement between Alfredo Bala and Mannatech, effective October 1, 2007, dated September 18, 2007. | 8-K | 000-24657 | 10.1 | September 24, 2007 | |||||
10.43 | Amendment to Employment Agreement between Alfredo Bala and Mannatech, dated October 11, 2007. | 8-K | 000-24657 | 10.1 | October 17, 2007 | |||||
10.44 | Clinical Research Agreement dated January 3, 2007 by and between St. George’s Hospital Medical School (trading as St George’s, University of London), and Mannatech, Inc. | 10-K | 000-24657 | 10.39 | March 17,2008 | |||||
10.45 | Employment Agreement, effective March 2, 2009, by and between Mannatech and Randy S. Bancino. | 8-K | 000-24657 | 10.1 | March 6, 2009 | |||||
10.46 | First Amendment to Employment Agreement, dated as of December 16, 2009, by and between Mannatech and Randy S. Bancino. | 8-K | 000-24657 | 10.4 | December 18, 2009 | |||||
10.47 | Consulting Agreement, dated March 17, 2009, between Mannatech and Salinda Enterprises, LLC and Samuel L. Caster. | 8-K | 000-24657 | 10.1 | March 19, 2009 | |||||
10.48 | Consulting Agreement, dated December 1, 2011, by and between Mannatech and WonderEnterprises, LLC (f/k/a Salinda Enterprises, LLC) and Samuel L. Caster. | 10-K | 000-24657 | 10.46 | March 29, 2012 | |||||
10.49 | Consulting Agreement, effective January 1, 2013, by and between Mannatech and WonderEnterprises, LLC and Samuel L. Caster, dated March 6, 2013. | 10-K | 000-24657 | 10.51 | March 28, 2013 | |||||
10.50 | Consulting Agreement, effective June 1, 2013, by and between Mannatech and WonderEnterprises, LLC and Samuel L. Caster, dated June 3, 2013. | 8-K | 000-24657 | 10.1 | June 4, 2013 | |||||
10.51 | Consulting Agreement, effective as of December 1, 2013, by and between Mannatech and WonderEnterprises, LLC. | 8-K | 000-24657 | 10.1 | December 1, 2013 | |||||
10.52 | Separation and Release Agreement, dated July 17, 2009 between Mannatech and Terri F. Maxwell. | 8-K | 000-24657 | 10.1 | July 21, 2009 | |||||
10.53 | Second Amendment to Employment Agreement, dated as of December 16, 2009, by and between Mannatech and Stephen D. Fenstermacher. | 8-K | 000-24657 | 10.1 | December 18, 2009 | |||||
10.54 | Second Amendment to Employment Agreement, dated as of December 16, 2009, by and between Mannatech and Robert A. Sinnott, Ph.D. | 8-K | 000-24657 | 10.2 | December 18, 2009 | |||||
10.55 | Second Amendment to Employment Agreement, dated as of December 16, 2009, by and between Mannatech and B. Keith Clark. | 8-K | 000-24657 | 10.3 | December 18, 2009 | |||||
10.56 | Separation Agreement and Release, dated March 20, 2013, by and between Mannatech and B. Keith Clark. | 8-K | 000-24657 | 10.1 | March 25, 2013 | |||||
10.57 | Employment Agreement, dated March 4, 2013, by and between Mannatech and Roy Truett. | 8-K | 000-24657 | 10.1 | March 6, 2013 | |||||
10.58 | Separation Agreement and General Release, dated January 30, 2014, by and between Mannatech and Roy Truett. | 10-K | 000-24657 | 10.60 | March 18, 2014 | |||||
10.59 | Executive Service Agreement between Mannatech Korea, Ltd. and Yong Jae (Patrick) Park, dated October 1, 2009. | 10-Q | 000-24657 | 10.1 | May 12, 2015 | |||||
10.60 | First Amendment to Employment Agreement between Mannatech Incorporated and Robert A. Sinnott, MNS, PhD, dated December 18, 2008. | 10-Q | 000-24657 | 10.2 | May 12, 2015 | |||||
14.1 | Code of Ethics. | 10-K | 000-24657 | 14.1 | March 16, 2007 | |||||
List of Subsidiaries. | * | * | * | * | ||||||
Consent of BDO USA, LLP. | * | * | * | * | ||||||
Report of Independent Registered Public Accounting Firm on Financial Statement Schedule. | * | * | * | * | ||||||
24* | Power of Attorney, which is included on the signature page of this annual report on Form 10-K. | * | * | * | * | |||||
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer of Mannatech. | * | * | * | * | ||||||
Certification pursuant to Section 302 of the Sarbanes-Oxley Act of 2002, of the Chief Financial Officer of Mannatech. | * | * | * | * | ||||||
Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, of the Chief Executive Officer of Mannatech. | * | * | * | * |