Cover Page
Cover Page - shares | 9 Months Ended | |
Mar. 31, 2024 | May 01, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 001-35647 | |
Entity Registrant Name | LIFEVANTAGE CORP | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 90-0224471 | |
Entity Address, Address Line One | 3300 Triumph Blvd | |
Entity Address, Address Line Two | Suite 700 | |
Entity Address, City or Town | Lehi | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84043 | |
City Area Code | 801 | |
Local Phone Number | 432-9000 | |
Title of 12(b) Security | Common Stock, par value $0.0001 | |
Trading Symbol | LFVN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,700,556 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0000849146 | |
Current Fiscal Year End Date | --06-30 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Current assets | ||
Cash and cash equivalents | $ 17,377 | $ 21,605 |
Accounts receivable | 2,135 | 1,612 |
Income tax receivable | 360 | 241 |
Inventory, net | 15,162 | 16,073 |
Prepaid expenses and other | 2,763 | 4,753 |
Total current assets | 37,797 | 44,284 |
Long-term assets | ||
Property and equipment, net | 8,349 | 9,086 |
Right-of-use assets | 9,382 | 8,738 |
Intangible assets, net | 356 | 455 |
Deferred income tax asset | 4,927 | 2,991 |
Other long-term assets | 496 | 569 |
TOTAL ASSETS | 61,307 | 66,123 |
Current liabilities | ||
Accounts payable | 6,954 | 3,505 |
Commissions payable | 6,093 | 6,651 |
Income tax payable | 772 | 0 |
Lease liabilities | 1,675 | 1,521 |
Other accrued expenses | 6,981 | 7,932 |
Total current liabilities | 22,475 | 19,609 |
Long-term lease liabilities | 11,852 | 11,566 |
Other long-term liabilities | 211 | 299 |
Total liabilities | 34,538 | 31,474 |
Commitments and contingencies - Note 7 | ||
Stockholders’ equity | ||
Preferred stock — par value $0.0001 per share, 5,000 shares authorized, no shares issued or outstanding | 0 | 0 |
Common stock — par value $0.0001 per share, 40,000 shares authorized and 12,688 and 12,622 issued and outstanding as of March 31, 2024 and June 30, 2023, respectively | 1 | 1 |
Additional paid-in capital | 136,198 | 134,314 |
Accumulated deficit | (107,709) | (98,305) |
Accumulated other comprehensive loss | (1,721) | (1,361) |
Total stockholders’ equity | 26,769 | 34,649 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 61,307 | $ 66,123 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2024 | Jun. 30, 2023 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in USD per share) | $ 0.0001 | $ 0.0001 |
Common stock, shares authorized (in shares) | 40,000,000 | 40,000,000 |
Common stock, shares issued (in shares) | 12,688,000 | 12,622,000 |
Common stock, shares outstanding (in shares) | 12,688,000 | 12,622,000 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 48,245 | $ 53,741 | $ 151,233 | $ 159,177 |
Cost of sales | 10,172 | 10,618 | 31,418 | 32,318 |
Gross profit | 38,073 | 43,123 | 119,815 | 126,859 |
Operating expenses: | ||||
Commissions and incentives | 19,714 | 23,816 | 63,941 | 71,185 |
Selling, general and administrative | 16,425 | 17,708 | 54,452 | 54,018 |
Total operating expenses | 36,139 | 41,524 | 118,393 | 125,203 |
Operating income | 1,934 | 1,599 | 1,422 | 1,656 |
Other income (expense): | ||||
Interest income, net | 76 | 59 | 352 | 91 |
Other income (expense), net | (89) | 7 | (135) | (304) |
Total other income (expense) | (13) | 66 | 217 | (213) |
Income before income taxes | 1,921 | 1,665 | 1,639 | 1,443 |
Income tax expense | (262) | (643) | (7) | (869) |
Net income | $ 1,659 | $ 1,022 | $ 1,632 | $ 574 |
Net income per share: | ||||
Basic (in USD per share) | $ 0.13 | $ 0.08 | $ 0.13 | $ 0.05 |
Diluted (in USD per share) | $ 0.13 | $ 0.08 | $ 0.13 | $ 0.05 |
Weighted-average shares outstanding: | ||||
Basic (in shares) | 12,424 | 12,615 | 12,525 | 12,538 |
Diluted (in shares) | 12,986 | 12,770 | 13,010 | 12,555 |
Other comprehensive (loss) income, net of tax: | ||||
Foreign currency translation adjustment | $ (529) | $ 14 | $ (360) | $ 144 |
Other comprehensive (loss) income, net of tax | (529) | 14 | (360) | 144 |
Comprehensive income | $ 1,130 | $ 1,036 | $ 1,272 | $ 718 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss |
Beginning balance (in shares) at Jun. 30, 2022 | 12,493 | ||||
Beginning balance at Jun. 30, 2022 | $ 31,516 | $ 1 | $ 131,075 | $ (98,437) | $ (1,123) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 602 | 602 | |||
Common stock issued under equity award plans (in shares) | 48 | ||||
Common stock issued under equity award plans | 0 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (17) | ||||
Shares canceled or surrendered as payment of tax withholding and other | (72) | (72) | |||
Common stock issued under employee stock purchase plan (in shares) | 36 | ||||
Common stock issued under employee stock purchase plan | 121 | 121 | |||
Cash dividends | (377) | (377) | |||
Currency translation adjustment | (510) | (510) | |||
Net income (loss) | 610 | 610 | |||
Ending balance (in shares) at Sep. 30, 2022 | 12,560 | ||||
Ending balance at Sep. 30, 2022 | 31,890 | $ 1 | 131,726 | (98,204) | (1,633) |
Beginning balance (in shares) at Jun. 30, 2022 | 12,493 | ||||
Beginning balance at Jun. 30, 2022 | $ 31,516 | $ 1 | 131,075 | (98,437) | (1,123) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (36) | ||||
Common stock issued under employee stock purchase plan (in shares) | 76 | ||||
Net income (loss) | $ 574 | ||||
Ending balance (in shares) at Mar. 31, 2023 | 12,771 | ||||
Ending balance at Mar. 31, 2023 | 33,442 | $ 1 | 133,424 | (99,004) | (979) |
Beginning balance (in shares) at Jun. 30, 2022 | 12,493 | ||||
Beginning balance at Jun. 30, 2022 | $ 31,516 | $ 1 | 131,075 | (98,437) | (1,123) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchase of company stock (in shares) | 0 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 12,622 | 12,622 | |||
Ending balance at Jun. 30, 2023 | $ 34,649 | $ 1 | 134,314 | (98,305) | (1,361) |
Beginning balance (in shares) at Sep. 30, 2022 | 12,560 | ||||
Beginning balance at Sep. 30, 2022 | 31,890 | $ 1 | 131,726 | (98,204) | (1,633) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 823 | 823 | |||
Common stock issued under equity award plans (in shares) | 152 | ||||
Common stock issued under equity award plans | 0 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (5) | ||||
Shares canceled or surrendered as payment of tax withholding and other | (19) | (19) | |||
Cash dividends | (381) | (381) | |||
Currency translation adjustment | 640 | 640 | |||
Net income (loss) | (1,058) | (1,058) | |||
Ending balance (in shares) at Dec. 31, 2022 | 12,707 | ||||
Ending balance at Dec. 31, 2022 | 31,895 | $ 1 | 132,530 | (99,643) | (993) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 817 | 817 | |||
Common stock issued under equity award plans (in shares) | 38 | ||||
Common stock issued under equity award plans | 0 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (14) | ||||
Shares canceled or surrendered as payment of tax withholding and other | (54) | (54) | |||
Repurchase of company stock (in shares) | 0 | ||||
Repurchase of company stock | $ (383) | (383) | |||
Common stock issued under employee stock purchase plan (in shares) | 40 | 40 | |||
Common stock issued under employee stock purchase plan | $ 131 | 131 | |||
Currency translation adjustment | 14 | 14 | |||
Net income (loss) | 1,022 | 1,022 | |||
Ending balance (in shares) at Mar. 31, 2023 | 12,771 | ||||
Ending balance at Mar. 31, 2023 | $ 33,442 | $ 1 | 133,424 | (99,004) | (979) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Repurchase of company stock (in shares) | 0 | ||||
Ending balance (in shares) at Jun. 30, 2023 | 12,622 | 12,622 | |||
Ending balance at Jun. 30, 2023 | $ 34,649 | $ 1 | 134,314 | (98,305) | (1,361) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 978 | 978 | |||
Common stock issued under equity award plans (in shares) | 281 | ||||
Common stock issued under equity award plans | 0 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (90) | ||||
Shares canceled or surrendered as payment of tax withholding and other | (465) | (465) | |||
Repurchase of company stock (in shares) | (145) | ||||
Repurchase of company stock | (795) | (795) | |||
Common stock issued under employee stock purchase plan (in shares) | 39 | ||||
Common stock issued under employee stock purchase plan | 126 | 126 | |||
Cash dividends | (5,534) | (5,534) | |||
Currency translation adjustment | (294) | (294) | |||
Net income (loss) | 629 | 629 | |||
Ending balance (in shares) at Sep. 30, 2023 | 12,707 | ||||
Ending balance at Sep. 30, 2023 | $ 29,294 | $ 1 | 134,953 | (104,005) | (1,655) |
Beginning balance (in shares) at Jun. 30, 2023 | 12,622 | 12,622 | |||
Beginning balance at Jun. 30, 2023 | $ 34,649 | $ 1 | 134,314 | (98,305) | (1,361) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (200) | ||||
Repurchase of company stock (in shares) | (700) | ||||
Common stock issued under employee stock purchase plan (in shares) | 64 | ||||
Net income (loss) | $ 1,632 | ||||
Ending balance (in shares) at Mar. 31, 2024 | 12,688 | 12,688 | |||
Ending balance at Mar. 31, 2024 | $ 26,769 | $ 1 | 136,198 | (107,709) | (1,721) |
Beginning balance (in shares) at Sep. 30, 2023 | 12,707 | ||||
Beginning balance at Sep. 30, 2023 | 29,294 | $ 1 | 134,953 | (104,005) | (1,655) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 750 | 750 | |||
Common stock issued under equity award plans (in shares) | 495 | ||||
Common stock issued under equity award plans | 0 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (34) | ||||
Shares canceled or surrendered as payment of tax withholding and other | (213) | (213) | |||
Repurchase of company stock (in shares) | (288) | ||||
Repurchase of company stock | (1,876) | (1,876) | |||
Cash dividends | (455) | (455) | |||
Currency translation adjustment | 463 | 463 | |||
Net income (loss) | (656) | (656) | |||
Ending balance (in shares) at Dec. 31, 2023 | 12,880 | ||||
Ending balance at Dec. 31, 2023 | 27,307 | $ 1 | 135,490 | (106,992) | (1,192) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Stock-based compensation | 796 | 796 | |||
Common stock issued under equity award plans (in shares) | 25 | ||||
Common stock issued under equity award plans | 0 | ||||
Shares canceled or surrendered as payment of tax withholding and other (in shares) | (38) | ||||
Shares canceled or surrendered as payment of tax withholding and other | $ (233) | (233) | |||
Repurchase of company stock (in shares) | (300) | (292) | |||
Repurchase of company stock | $ (1,928) | (1,928) | |||
Common stock issued under employee stock purchase plan (in shares) | 25 | 113 | |||
Common stock issued under employee stock purchase plan | $ 145 | 145 | |||
Cash dividends | (448) | (448) | |||
Currency translation adjustment | (529) | (529) | |||
Net income (loss) | $ 1,659 | 1,659 | |||
Ending balance (in shares) at Mar. 31, 2024 | 12,688 | 12,688 | |||
Ending balance at Mar. 31, 2024 | $ 26,769 | $ 1 | $ 136,198 | $ (107,709) | $ (1,721) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flows from Operating Activities: | ||
Net income | $ 1,632 | $ 574 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 2,775 | 2,678 |
Stock-based compensation | 2,524 | 2,242 |
Non-cash operating lease expense | 920 | 1,257 |
Loss on disposal of assets | 0 | 24 |
Deferred income tax | (1,936) | (953) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (552) | 975 |
Income tax receivable | (118) | 1,090 |
Inventory, net | 725 | (1,947) |
Prepaid expenses and other | 1,983 | 1,859 |
Other long-term assets | 59 | 55 |
Accounts payable | 3,385 | (1,642) |
Income tax payable | 772 | (453) |
Other accrued expenses | (1,549) | (1,301) |
Lease liabilities | (1,120) | (1,274) |
Other long-term liabilities | 115 | (119) |
Net Cash Provided by Operating Activities | 9,615 | 3,065 |
Cash Flows from Investing Activities: | ||
Purchase of property and equipment | (1,967) | (2,554) |
Net Cash Used in Investing Activities | (1,967) | (2,554) |
Cash Flows from Financing Activities: | ||
Repurchase of company stock | (4,599) | 0 |
Payment of cash dividends | (6,437) | (1,141) |
Shares canceled or surrendered as payment of tax withholding and other | (911) | (145) |
Proceeds from common stock issued under employee stock purchase plan | 271 | 252 |
Net Cash Used in Financing Activities | (11,676) | (1,034) |
Foreign Currency Effect on Cash | (200) | (138) |
Decrease in Cash and Cash Equivalents: | (4,228) | (661) |
Cash and Cash Equivalents — beginning of period | 21,605 | 20,190 |
Cash and Cash Equivalents — end of period | 17,377 | 19,529 |
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION | ||
Cash paid for interest | 5 | 3 |
Cash paid for income taxes | $ 1,381 | $ 977 |
Organization and Basis of Prese
Organization and Basis of Presentation | 9 Months Ended |
Mar. 31, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation LifeVantage is a company focused on nutrigenomics, the study of how nutrition and naturally occurring compounds affect human genes to support good health. The Company is dedicated to helping people achieve their health, wellness and financial goals. The Company provides quality, scientifically-validated products to customers and independent consultants as well as a financially rewarding commission-based direct sales opportunity to its independent consultants. LifeVantage sells its products in the United States, Mexico, Japan, Australia, Hong Kong, Canada, Thailand, the United Kingdom, the Netherlands, Germany, Taiwan, Austria, Spain, Ireland, Belgium, New Zealand, Singapore, and the Philippines. The Company sold its products in China through a China approved cross-border e-commerce business model until March 15, 2023, at which time the Company closed its e-commerce business in China. The Company engages in the identification, research, development, formulation and sale of advanced nutrigenomic activators, dietary supplements, nootropics, pre- and pro-biotics, weight management, skin and hair care, bath & body, and targeted relief products. The Company’s line of scientifically validated dietary supplements includes its flagship Protandim ® family of products, LifeVantage ® Omega+, ProBio, IC Bright ® , Daily Wellness, Rise AM, Reset PM and D3+ dietary supplements. TrueScience ® is the Company's Nrf2 enhanced line of skin, hair, and bath & body products. The Company also markets and sells Petandim ® , its companion pet supplement formulated to combat oxidative stress in dogs, AXIO ® its nootropic energy drink mixes, and PhysIQ ™ , its smart weight management system. The condensed consolidated financial statements included herein have been prepared by the Company’s management, without audit, pursuant to the rules and regulations of the SEC. In the opinion of the Company’s management, these interim financial statements include all adjustments that are considered necessary for a fair presentation of its financial position as of March 31, 2024, and the results of operations for the three and nine months ended March 31, 2024 and 2023, and the cash flows for the nine months ended March 31, 2024 and 2023. Interim results are not necessarily indicative of results for a full year or for any future period. The condensed consolidated financial statements and notes included herein are presented as required by Form 10-Q, and do not contain certain information included in the Company’s audited financial statements and notes for the fiscal year ended June 30, 2023, pursuant to the rules and regulations of the SEC. For further information, refer to the financial statements and notes thereto as of and for the year ended June 30, 2023, and included in the annual report on Form 10-K on file with the SEC. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Consolidation The condensed consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries. All significant intercompany accounts and transactions are eliminated in consolidation. Use of Estimates The Company prepares the condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In preparing these statements, the Company is required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, the Company reviews its estimates, including, but not limited to, those related to inventory valuation and obsolescence, sales returns, income taxes and tax valuation reserves, transfer pricing methodology and positions, impairment of assets, share-based compensation, and loss contingencies. Foreign Currency Translation A portion of the Company’s business operations occurs outside the United States. The local currency of each of the Company’s subsidiaries is generally its functional currency. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the condensed consolidated balance sheets and as a component of com prehensive income. Transaction gains and losses are included in other expense, net in the condensed consolidated statements of operations and comprehensive income. For the three months ended March 31, 2024 and 2023, net foreign currency losses of $0.1 million and gains of $36,000, respectively, are recorded in other income (expense), net. For the nine months ended March 31, 2024 and 2023, net foreign currency losses of $0.2 million and $0.2 million, respectively, are recorded in other income (expense), net. Cash and Cash Equivalents The Company considers only its monetary liquid assets with original maturities of three months or less as cash and cash equivalents. Concentration of Credit Risk Accounting guidance for financial instruments requires disclosure of significant concentrations of credit risk regardless of the degree of such risk. Financial instruments with significant credit risk include cash and investments. At March 31, 2024, the Company had $13.1 million in cash accounts at one financial institution and $4.3 million in accounts at other financial institutions. At June 30, 2023, the Company had $17.0 million in cash accounts at one financial institution and $4.6 million in accounts at other financial institutions. As of March 31, 2024 and June 30, 2023, and during the periods then ended, the Company’s cash balances exceeded federally insured limits. Accounts Receivable The Company’s accounts receivable as of March 31, 2024 and June 30, 2023 consist primarily of credit card receivables. Based on the Company’s verification process for customer credit cards and historical information available, management has determined that an allowance for doubtful accounts on credit card sales related to its customer sales as of March 31, 2024 and June 30, 2023 is not necessary. No bad debt expense was recorded during the three and nine months ended March 31, 2024 and 2023. Inventory As of March 31, 2024 and June 30, 2023, inventory consisted of (in thousands): March 31, June 30, Finished goods $ 11,273 74.4 % $ 12,153 75.6 % Raw materials 3,889 25.6 % 3,920 24.4 % Total inventory $ 15,162 100.0 % $ 16,073 100.0 % Inventories are carried at the lower of cost or net realizable value, using the first-in, first-out method, which includes a reduction in inventory values of $1.3 million and $1.3 million at March 31, 2024 and June 30, 2023, respectively, related to obsolete and slow-moving inventory. Fair Value of Financial Instruments The Company accounts for assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. Our financial instruments, consisting primarily of cash and cash equivalents, accounts receivable, and accounts payable, approximate fair value due to their short-term nature. Revenue Recognition Revenue is recognized when control of the promised goods or services are transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales, value-added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company generates the majority of its revenue through product sales to customers. These products include the Protandim ® line of dietary supplements, LifeVantage ® Omega+, ProBio, IC Bright ® , Daily Wellness, Rise AM, Reset PM, and D3+ dietary supplements, TrueScience ® skin, hair, bath & body and targeted relief, Petandim ® , Axio ® nootropic energy drink mixes, and the PhysIQ ™ smart weight management system. The Company ships most of its product directly to the consumer and receives substantially all payment for product sales in the form of credit card receipts. Revenue from direct product sales to customers is recognized upon shipment, which is when passage of title and risk of loss occurs. For items sold in packs and bundles, the Company determines the standalone selling price at contract inception for each distinct good, and then allocates the transaction price on a relative standalone selling price basis. Any discounts are accounted for as a direct reduction to the transaction price. Shipping and handling revenue is recognized upon shipment when the performance obligation is completed. Contract liabilities, recorded as deferred revenue, include loyalty program credit deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as credits which are redeemed for additional products at a later date. The Company also records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. In addition, the Company pre-sells tickets to its events. When cash p ayments are received in advance of events, the cash received is recorded to deferred revenue until the event is held, at which time the Company has performed its obligations under the contract and the revenue is recognized. Deferred revenue is included in accrued expenses in the consolidated balance sheets. The balance of deferred revenue related to contract liabilities was $0.7 million and $0.8 million as of March 31, 2024 and June 30, 2023, respectively. The contract liabilities impact to revenue for the three months ended March 31, 2024 and 2023 was an increase of $0.2 million and a decrease of $0.1 million, respectively. The contract liabilities impact to revenue for the nine months ended March 31, 2024 and 2023 was an increase of $0.1 million and a decrease of $0.3 million, respectively. Estimated returns are recorded when product is shipped. Subject to some exceptions based on local regulations, the Company’s return policy is to provide a full refund for product returned within 30 days. After 30 days of purchase, only unopened product that is in a resalable and restockable condition may be returned within twelve months of purchase and shall receive a 100% refund, less a 10% handling and restocking fee and any shipping and handling costs. The Company establishes a refund liability reserve, and an asset reserve for its right to recover products, based on historical experience. The returns asset reserve and returns liability reserve are evaluated on a quarterly basis. As of March 31, 2024 and June 30, 2023, the returns liability reserve, net was $0.1 million and $0.1 million, respectively. Shipping and Handling Shipping and handling costs associated with inbound freight and freight out to customers and independent consultants are included in cost of sales. Shipping and handling fees charged to customers and independent consultants are included in revenue. Research and Development Costs The Company expenses all costs related to research and development activities, as incurred. Research and development expens es for the three months ended March 31, 2024 and 2023 were $0.2 million and $0.2 million, respectively. Research and development expens es for the nine months ended March 31, 2024 and 2023 were $0.5 million and $0.4 million, respectively. Leases The Company accounts for leases in accordance with Accounting Standards Codification ("ASC") 842. The Company reviews all contracts and determines if the arrangement is or contains a lease, at inception. Operating leases are included in right-of-use (“ROU”) assets, current lease liabilities and long-term lease liabilities on the condensed consolidated balance sheets. The Company does not have any finance leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any upfront lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with a term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any residual value guarantees. Changes in the Company's strategies have resulted in operation modifications in certain Asia/Pacific markets resulting in the closure of showrooms and changes to selling models. As of December 31, 2022, the Company abandoned the ROU assets related to the Hong Kong and Singapore showroom leases. These leases were terminated in February 2023 and the Company has no remaining lease liability for these showrooms. Total expenses related to the abandonment of the ROU assets and costs associated with the change in operations in these markets for the nine months ended March 31, 2023 was $0.4 million and is included in selling, general, and administrative expenses. Stock-Based Compensation The Company recognizes stock-based compensation by measuring the cost of services to be rendered based on the grant date fair value of the equity award. The Company recognizes stock-based compensation, net of any estimated forfeitures, over the period an employee is required to provide service in exchange for the awa rd, generally referred to as the requisite service period. The Company estimates forfeitures based on historical information and other management assumptions. For awards with market-based performance conditions, the cost of the awards is recognized as the requisite service is rendered by employees, regardless of when, if ever, the market-based performance conditions are satisfied. The Black-Scholes option pricing model is used to estimate the fair value of stock options and options under the Company's 2019 Employee Stock Purchase Plan. The determination of the fair value of options is affected by the Company's stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The Company uses historical data for estimating the expected volatility and expected life of stock options required in the Black-Scholes model. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the stock options. The fair value of restricted stock grants, including performance restricted stock units that include non-market based performance conditions, is based on the closing market price of the Company's stock on the date of grant less the Company's expected dividend yield. The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance conditions will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs accordingly. Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled, updated as needed for changes in corporate tax rates. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the effective date of the change. The Company recognizes tax liabilities or benefits from an uncertain position only if it is more likely than not that the position will be sust ained upon examination by taxing authorities based on the technical merits of the issue. The amount recognized would be the largest liability or benefit that the Company believes has greater than a 50% likelihood of being realized upon settlement. For the nine months ended March 31, 2024 and 2023, the Company recognized income tax expense of $7,000 and $0.9 million, respectively, which is reflective of the Company’s current estimated federal, state and foreign effective tax rate. Realization of deferred tax assets is dependent upon future earnings in specific tax jurisdictions, the timing and amount of which are uncertain. Income Per Share Basic income per common share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period, less unvested restricted stock awards. Diluted income per common share is computed by dividing net income by the weighted-average common shares and potentially dilutive common share equivalents using the treasury stock method. For the three months ended March 31, 2024 and 2023, the effects of approximately 8,000 and 0.1 million common shares, respectively, issuable upon exercise of options and non-vested shares of restricted stock are not included in computations as their effect was anti-dilutive. For the nine months ended March 31, 2024 and 2023, the effects of approximately 34,000 and 0.3 million common shares, respectively, issuable upon exercise of options and non-vested shares of restricted stock are not included in computations as their effect was anti-dilutive. The following is a reconciliation of net income per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Numerator: Net income $ 1,659 $ 1,022 $ 1,632 $ 574 Denominator: Basic weighted-average common shares outstanding 12,424 12,615 12,525 12,538 Effect of dilutive securities: Stock awards and options 562 155 485 17 Diluted weighted-average common shares outstanding 12,986 12,770 13,010 12,555 Net income per share, basic $ 0.13 $ 0.08 $ 0.13 $ 0.05 Net income per share, diluted $ 0.13 $ 0.08 $ 0.13 $ 0.05 Segment Information and Disaggregated Revenue The Company operates in a single operating segment by selling products directly to customers and through an international network of independent consultants that operates in an integrated manner from market to market. Commissions and incentives expenses are the Company’s largest expense comprised of the commissions paid to its independent consultants. The Company manages its business primarily by managing its international network of independent consultants. The Company disaggregates revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region. The following table presents the Company's revenue disaggregated by these two geographic regions (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Americas $ 37,215 $ 39,532 $ 114,795 $ 115,606 Asia/Pacific & Europe 11,030 14,209 36,438 43,571 Total revenue $ 48,245 $ 53,741 $ 151,233 $ 159,177 Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 United States $ 35,333 $ 37,855 $ 109,448 $ 110,485 Japan $ 6,223 $ 8,133 $ 21,051 $ 23,665 The following table presents the Company's long-lived assets for its most significant geographic markets (in thousands): March 31, June 30, United States $ 20,468 $ 20,504 Japan $ 2,156 $ 354 |
Leases
Leases | 9 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Leases | Leases The Company has operating leases for current corporate offices and certain equipment. These leases have remaining terms of appro ximately one As of March 31, 2024, the weighted average remaining lease term and weighted average discount rate for operating leases was 7.28 years and 3.26%, respectively. As of June 30, 2023, the weighted average remaining lease term and weighted average discount rate for operating leases was 8.27 years and 3.25%, respectively. For the three months ended March 31, 2024 and 2023, operating lease expense was $0.5 million and $0.6 million, respectively. For the nine months ended March 31, 2024 and 2023, operating lease expense was $1.6 million and $2.2 million, respectively. The components of lease expense for the three and nine months ended March 31, 2024 and 2023, were as follows: Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Operating lease expense Operating lease cost $ 459 $ 516 $ 1,451 $ 1,929 Variable lease cost 42 103 136 189 Short-term lease costs 12 18 35 63 Total lease expense $ 513 $ 637 $ 1,622 $ 2,181 Supplemental cash flow information related to operating leases was as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Operating cash outflows from operating leases $ 560 $ 782 $ 1,651 $ 2,288 Right-of-use assets obtained in exchange for lease obligations $ 265 $ — $ 1,767 $ — Maturity of lease liabilities at March 31, 2024 are as follows (in thousands): Year ended June 30, Amount 2024 (remaining three months ending June 30, 2024) $ 550 2025 2,025 2026 2,068 2027 2,080 2028 2,057 Thereafter 6,394 Total 15,174 Less: imputed interest (1,647) Present value of lease liabilities $ 13,527 |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-Term Debt On March 30, 2016, t he Company entered into a loan agreement (the "2016 Loan Agreement") and a security agreement (the "Security Agreement"). The 2016 Loan Agreement provides for a term loan in an aggregate principal amount of $10.0 million ( the "2016 Term Loan") and a revolving loan facility in an aggregate principal amount not to exceed $2.0 million (the "2016 Revolving Loan," and collectively with the 2016 Term Loan, the 2016 Loan Agreement and the Security Agreement, the "2016 Credit Facility" and together with the amendments described below, the "Credit Facility"). During the fiscal year ended June 30, 2020, the Company repaid, in full, the balance of the 2016 Term Loan. On May 4, 2018 and February 1, 2019, the Company entered into loan modification agreements (“Amendment No. 1” and “Amendment No. 2”, respectively). These loan modification agreements amended certain financial covenants and the available borrowing amount under the 2016 Revolving Loan. On April 1, 2021, the Company entered into a loan modification agreement ("Amendment No. 3"), which amended the Credit Facility. Amendment No. 3, with an available borrowing amount of $5.0 million , a revised maturity date from March 31, 2021 to March 31, 2024, and a modified variable interest rate based on the one-month United States Treasury Rate, plus a margin of 3.00% , with an interest rate floor of 4.00%. Amendment No. 3 also revised the debt (total liabilities) to tangible net worth ratio (as defined in Amendment No. 3) covenant to require that the Company maintain this ratio not in excess of 2.00 to 1.00, measured as of the end of each fiscal quarter, and revised the definition and calculation of the minimum fixed charge coverage ratio (as defined in Amendment No. 3). There were no other changes to the minimum fixed charge coverage ratio of 1.10 to 1.00 or the minimum working capital of $6.0 million as set forth in previous amendments. The Company entered into a loan modification agreement ("Amendment No. 4"), effective September 30, 2022, which further amended the Credit Facility. Amendment No. 4 revised the calculation of the minimum fixed charge coverage ratio (as defined in Amendment No. 4) and allows the Company to declare and pay dividends, up to $500,000 per quarter, through September 30, 2023. There were no other changes to the covenants or revolving loan facility as set forth in Amendment No. 3. If the Company borrows under the 2016 Revolving Loan, interest will be payable quarterly in arrears on the last day of each fiscal quarter. On August 28, 2023, the Company received approval, without modifying Amendment No. 4, to declare and pay a one-time cash dividend of $0.40 per share of common stock, to be paid on September 22, 2023. The Company also received approval to declare and pay dividends, up to $750,000, per quarter, through September 30, 2024. On March 31, 2024, the Credit Facility reached the maturity date and was terminated. As of March 31, 2024, there was no balance outstanding on this credit facility. On April 12, 2024, the Company entered into a Loan Agreement (the “Loan Agreement”) with Bank of America, N.A., as Lender (the “Lender”). In connection with the Loan Agreement and on the same date, the Company, Lifeline Nutraceuticals Corporation, as Guarantor (the “Guarantor”), and the Lender also entered into a Continuing and Unconditional Guaranty (the “Continuing and Unconditional Guaranty”) and a Security and Pledge Agreement (the “Security and Pledge Agreement”). The Loan Agreement provides for a revolving line of credit in an aggregate principal amount not to exceed $5.0 million |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity During the three months ended March 31, 2024 and 2023 , the Company issued 0.1 million and 38,000 shares of common stock, respectively, under equity award plans. During the three months ended March 31, 2024 and 2023 , the Company issued zero shares of common stock upon the exercise of stock options. During the three months ended March 31, 2024 and 2023, 38,000 and 14,000 shares of restricted stock, respectively, were canceled or surrendered as payment of tax withholding upon vesting. During the nine months ended March 31, 2024 and 2023 , the Company issued 0.9 million and 0.2 million shares of common stock, respectively, under equity award plans. During the nine months ended March 31, 2024 and 2023 , the Company issued zero shares of common stock upon the exercise of stock options. During the nine months ended March 31, 2024 and 2023, 0.2 million and 36,000 shares of restricted stock, respectively, were canceled or surrendered as payment of tax withholding upon vesting. On November 27, 2017, the Company announced a share repurchase program authorizing it to repurchase up to $5 million in shares of the Company's common stock. The repurchase program permits the Company to purchase shares through a variety of methods, including in the open market, through privately negotiated transactions or other means as determined by the Company's management. As part of the repurchase program, the Company has entered into a pre-arranged stock repurchase plan which operates in accordance with guidelines specified under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. Accordingly, any transactions under such stock repurchase plan will be completed in accordance with the terms of the plan, including specified price, volume and timing conditions. The authorization may be suspended or discontinued at any time. On February 1, 2019, the Company's board of directors (the "Board of Directors") approved an amendment to increase the authorized share repurchase amount from $5.0 million to $15.0 million. On August 27, 2020, the Board of Directors approved an amendment to increase the authorized share repurchase amount from $15.0 million to $35.0 million and to extend the duration of the program through November 30, 20 23 and, on February 17, 2022, the Board of Directors approved an amendment to increase the authorized share repurchase amount from $35.0 million to $60.0 million. On June 12, 2023, the Board of Directors approved an amendment to extend the duration of the repurchase program period to December 31, 2026. During the three and nine months ended March 31, 2024, the Company purchased 0.3 million shares and 0.7 million shares of common stock at an aggregate price of $1.9 million and $4.6 million under this repurchase program, respectively. During the three and nine months ended March 31, 2023 , the Company purchased no shares of common stock under this repurchase program, respectively. At March 31, 2024, there is $22.3 million remaining under this repurchase program. On August 30, 2023, the Board of Directors approved a stockholder rights agreement (the “Rights Plan”) and declared a dividend of one right for each outstanding share of common stock to stockholders of record on September 11, 2023. Each right entitles holders to purchase one newly issued share of preferred stock at an exercise price of $20 per right, subject to adjustment. Initially, the rights are not exercisable and trade with shares of the Company’s common stock. In general, the rights become exercisable following a public announcement that a person acquires 12% (or, in the case of passive investors, 20%) or more of the outstanding shares of the Company’s common stock. If a person becomes an acquiring person, each holder of rights (except the acquiring person) will have the right to purchase, for the purchase price, a number of shares of the Company’s common stock at a 50% discount to the then-current trading price. Rather than allowing the rights to be exercised in those circumstances, the Board of Directors may exchange each right, other than the rights owned by the acquiring person, for a share of the Company’s common stock. The agreement provides for exceptions and additional terms for other certain situations and circumstances. The Rights Plan is intended to protect the interests of LifeVantage and its stockholders by reducing the likelihood that any entity, person or group gains control of the Company through open-market accumulation or other means without payment of an adequate control premium and expires August 24, 2024, unless it is earlier terminated or the rights are earlier redeemed or exchanged by the Board of Directors. There is currently no impact to the Company’s Consolidated Financial Statements. The Company’s Certificate of Incorporation authorizes the issuance of preferred stock. However , as of March 31, 2024, none have been issued nor have any rights or preferences been assigned to the preferred stock by the Company’s Board of Directors. Dividends In August 2023, the Board of Directors declared a quarterly cash dividend of $0.035 per share of common stock and a one-time cash dividend of $0.40 per share of common stock to be paid on September 22, 2023 to stockholders of record on September 8, 2023. In November 2023, the Board of Directors declared a quarterly cash dividend of $0.035 per share of common stock to be paid on December 15, 2023 to stockholders of record on December 1, 2023. In January 2024, the Board of Directors declared a quarterly cash dividend of $0.035 per share of common stock to be paid on March 15, 2024 to stockholders of record on March 1, 2024. Cash dividends for the three and nine months ended March 31, 2024 totaled $0.4 million and $6.4 million, or $0.035 and $0.51 per share, respectively. Cash dividends for the three and nine months ended March 31, 2023 totaled $0.4 million and $1.1 million, or $0.03 and $0.09 per share, respectively. The declaration of dividends is subject to the discretion of the Board of Directors and will depend upon various factors, including the Company's earnings, financial condition, restrictions imposed by any indebtedness that may be outstanding, cash requirements, future prospects and other factors deemed relevant by the Board of Directors. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Long-Term Incentive Plans Equity-Settled Plans The Company adopted, and the stockholders approved, the 2017 Long-Term Incentive Plan (the “2017 Plan”), effective February 16, 2017, to provide incentives to eligible employees, directors and consultants. The initial share pool approved was 650,000 shares. On November 9, 2023, the stockholders approved amendments to the 2017 Plan to increase the number of shares of the Company's common stock that are available for issuance under the 2017 plan by 1,138,000 shares. As of March 31, 2024, a maximum of 5.1 million shares of the Company's common stock can be issued under the 2017 Plan in connection with the grant of awards which is calculated as the sum of (i) 4,630,000 shares and (ii) up to 475,000 shares previously reserved for issuance under the Company's 2010 Long Term Incentive Plan, including shares returned upon cancellation, termination or forfeiture of awards that were previously granted under that plan. Outstanding stock options awarded under the 2017 Plan have exercise prices of $4.44 per share, and vest over a three year vesting period. Awards expire in accordance with the terms of each award and, upon expiration of the award, the shares subject to the award are added back to the 2017 Plan. The contractual term of stock options granted is generally ten years. As of March 31, 2024, under the 2017 Plan, there were stock option awards outstanding, net of awards expired, for an aggregate of 0.1 million shares of the Company's common stock. Employee Stock Purchase Plan General. The Company's 2019 Employee Stock Purchase Plan ("ESPP") was adopted by the Board of Directors in September 2018 and the Company's stockholders approved it in November 2018. The ESPP is intended to qualify under Section 423 of the Internal Revenue Code. Share Reserve. The Company has reserved 0.4 million shares of its common stock for issuance under the ESPP. As of March 31, 2024, 0.1 million shares were available for issuance. The number of shares reserved under the ESPP will automatically be adjusted in the event of a stock split, stock dividend or a reverse stock split (including an adjustment to the per-purchase period share limit). Purchase Price. Employees may purchase each share of common stock under the ESPP at a price equal to 85% of the lower of the fair market values of the stock as of the beginning or the end of the six-month offering periods. An employee's contributions to the ESPP are limited to 15% of their regular hourly or salary compensation, and up to a maximum of 3,000 shares may be purchased during any offering period. A participant shall not be granted an option under the ESPP if such option would permit the participant's rights to purchase stock to accrue at a rate exceeding $25,000 grant date fair market value of stock for each calendar year in which such option is outstanding at any time. Offering Periods. Unless otherwise determined by the compensation committee, the ESPP will be operated through a series of successive six-month offering periods, which will begin each year on March 1 and September 1. Duri ng the three months ended March 31, 2024 and 2023 , approximately 25,000 and 40,000 shares of common stock were issued under the ESPP, respectively. Duri ng the nine months ended March 31, 2024 and 2023 , approximately 64,000 and 76,000 shares of common stock were issued under the ESPP, respectively. Stock-Based Compensation For the three months ended March 31, 2024 and 2023, compensation of $0.8 million and $0.8 million, respectively, was reflected as an increase to additional paid-in capital, all of which was employee related. For the nine months ended March 31, 2024 and 2023, compensation of $2.5 million and $2.2 million, respectively, was reflected as an increase to additional |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingencies The Company accounts for contingent liabilities in accordance with ASC 450, Contingencies. This guidance requires management to assess potential contingent liabilities that may exist as of the date of the financial statements to determine the probability and amount of loss that may have occurred, which inherently involves an exercise of judgment. If the assessment of a contingency indicates that it is probable that a material loss has been incurred and the amount of the liability can be estimated, then the estimated liability would be accrued in the Company’s financial statements. If the assessment indicates that a potential material loss contingency is not probable but is reasonably possible, or is probable but cannot be estimated, then the nature of the contingent liability, and an estimate of the range of possible losses, if determinable and material, would be disclosed. For loss contingencies considered remote, no accrual or disclosures are generally made. Management has assessed potential contingent liabilities as of March 31, 2024, and based on the assessment, there are no probable loss contingencies requiring accrual or disclosures within its financial statements. Legal Accruals In addition to commitments and obligations in the ordinary course of business, from time to time, the Company is subject to various claims, pending and potential legal actions, investigations relating to governmental laws and regulations and other matters arising out of the normal conduct of its business. Management assesses contingencies to determine the degree of probability and range of possible loss for potential accrual in the consolidated financial statements. An estimated loss contingency is accrued in the consolidated financial statements if it is probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Because evaluating legal claims and litigation results are inherently unpredictable and unfavorable results could occur, assessing contingencies is highly subjective and requires judgments about future events. When evaluating contingencies, management may be unable to provide a meaningful estimate due to a number of factors, including the procedural status of the matter in question, the presence of complex or novel legal theories, and/or the ongoing discovery and development of information important to the matters. In addition, damage amounts claimed or asserted against the Company may be unsupported, exaggerated or unrelated to possible outcomes, and as such are not meaningful indicators of a potential liability. Management regularly reviews contingencies to determine the adequacy of financial statement accruals and related disclosures. The amount of ultimate loss may differ from these estimates. It is possible that cash flows or results of operations could be materially affected in any particular period by the unfavorable publicity or resolution of one or more of these contingencies. Whether any losses finally determined in any claim, action, investigation or proceeding or publicity related to such could reasonably have a material effect on the Company's business, financial condition, results of operations or cash flows will depend on a number of variables, including: the timing and amount of such losses; the structure and type of any remedies; the significance of the impact of any such losses, damages or remedies may have on the consolidated financial statements; and the unique facts and circumstances of the particular matter that may give rise to additional factors. Other Matters. |
Subsequent Events
Subsequent Events | 9 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 8 — Subsequent Events On April 12, 2024, the Company entered into the 2024 Credit Facility. In the event the Company borrows under the Line of Credit, interest will be payable commencing May 31, 2024, and then on the last day of each month thereafter until payment in full of all principal outstanding under the Line of Credit, with all unpaid principal and interest due on April 12, 2027 (the “Expiration Date”). The Line of Credit will bear interest at a rate per year equal to the sum of (i) the greater of the Term SOFR Daily Floating Rate (as defined in the Loan Agreement) or 0.00%, plus (ii) 2.00%. Amounts under the Line of Credit may be repaid and re-borrowed from time to time until the Expiration Date. The Company’s obligations under the Loan Agreement are secured by a security interest in substantially all of the assets of the Company and the Guarantor, as further provided for in the Security and Pledge Agreement. Pursuant to the Continuing and Unconditional Guaranty, the Guarantor guarantees and promises to pay promptly to the Lender all indebtedness of the Company when due. The Loan Agreement contains customary covenants, including affirmative and negative covenants that in certain circumstances restrict the Company’s ability to incur additional indebtedness, make certain investments, purchase or otherwise acquire all or substantially all the assets or equity interests of other companies, or transfer any part of the business or any assets of the Company or the Guarantor. The Loan Agreement requires that the Company maintain specified financial ratios and satisfy certain financial condition tests. The Loan Agreement contains certain customary events of default, including, among other things, failure of the Company to make required payments under the Loan Agreement, certain breaches of representations made by the Company or the Guarantor, insolvency or bankruptcy of the Company or the Guarantor, failure to have an enforceable first lien or security interest in any property given as security for the Loan Agreement, or failure of the Company to comply with covenants set forth in the Loan Agreement. If an event of default occurs under the Loan Agreement, the obligation of the Lender to make any additional credit available to the Company may be terminated and the amounts outstanding may become immediately due and payable in the discretion of the Lender, provided that in the event of insolvency or bankruptcy of the Company or the Guarantor, all debts outstanding under the Loan Agreement will automatically become due and payable. Upon the occurrence of any default or after maturity, all amounts outstanding under the Loan Agreement will at the option of the Lender bear interest at a rate which is 2.00% higher than the rate of interest otherwise provided under the Loan Agreement. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||||||||
Net income | $ 1,659 | $ (656) | $ 629 | $ 1,022 | $ (1,058) | $ 610 | $ 1,632 | $ 574 |
Insider Trading Arrangements
Insider Trading Arrangements | 9 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation |
Use of Estimates | Use of Estimates The Company prepares the condensed consolidated financial statements and related disclosures in conformity with accounting principles generally accepted in the United States of America ("GAAP"). In preparing these statements, the Company is required to use estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ materially from those estimates and assumptions. On an ongoing basis, the Company reviews its estimates, including, but not limited to, those related to inventory valuation and obsolescence, sales returns, income taxes and tax valuation reserves, transfer pricing methodology and positions, impairment of assets, share-based compensation, and loss contingencies. |
Foreign Currency Translation | Foreign Currency Translation A portion of the Company’s business operations occurs outside the United States. The local currency of each of the Company’s subsidiaries is generally its functional currency. All assets and liabilities are translated into U.S. dollars at exchange rates existing at the balance sheet dates, revenue and expenses are translated at weighted-average exchange rates and stockholders’ equity is recorded at historical exchange rates. The resulting foreign currency translation adjustments are recorded as a separate component of stockholders’ equity in the condensed consolidated balance sheets and as a component of com |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers only its monetary liquid assets with original maturities of three months or less as cash and cash equivalents. |
Concentration of Credit Risk | Concentration of Credit Risk Accounting guidance for financial instruments requires disclosure of significant concentrations of credit risk regardless of the degree of |
Accounts Receivable | Accounts Receivable |
Inventory | Inventories are carried at the lower of cost or net realizable value, using the first-in, first-out method |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The Company accounts for assets and liabilities using a hierarchy of valuation techniques based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Company's market assumptions. These two types of inputs have created the fair-value hierarchy below. This hierarchy requires the Company to minimize the use of unobservable inputs and to use observable market data, if available, when determining fair value. • Level 1—Quoted prices for identical instruments in active markets; • Level 2—Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets; and • Level 3—Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable. |
Revenue Recognition & Shipping and Handling | Revenue Recognition Revenue is recognized when control of the promised goods or services are transferred to the customer, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Sales, value-added, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue. The Company generates the majority of its revenue through product sales to customers. These products include the Protandim ® line of dietary supplements, LifeVantage ® Omega+, ProBio, IC Bright ® , Daily Wellness, Rise AM, Reset PM, and D3+ dietary supplements, TrueScience ® skin, hair, bath & body and targeted relief, Petandim ® , Axio ® nootropic energy drink mixes, and the PhysIQ ™ smart weight management system. The Company ships most of its product directly to the consumer and receives substantially all payment for product sales in the form of credit card receipts. Revenue from direct product sales to customers is recognized upon shipment, which is when passage of title and risk of loss occurs. For items sold in packs and bundles, the Company determines the standalone selling price at contract inception for each distinct good, and then allocates the transaction price on a relative standalone selling price basis. Any discounts are accounted for as a direct reduction to the transaction price. Shipping and handling revenue is recognized upon shipment when the performance obligation is completed. Contract liabilities, recorded as deferred revenue, include loyalty program credit deferrals with certain customers which are accounted for as a reduction in the transaction price and are generally recognized as credits which are redeemed for additional products at a later date. The Company also records deferred revenue when cash payments are received or due in advance of performance, including amounts which are refundable. In addition, the Company pre-sells tickets to its events. When cash p ayments are received in advance of events, the cash received is recorded to deferred revenue until the event is held, at which time the Company has performed its obligations under the contract and the revenue is recognized. Deferred revenue is included in accrued expenses in the consolidated balance sheets. The balance of deferred revenue related to contract liabilities was $0.7 million and $0.8 million as of March 31, 2024 and June 30, 2023, respectively. The contract liabilities impact to revenue for the three months ended March 31, 2024 and 2023 was an increase of $0.2 million and a decrease of $0.1 million, respectively. The contract liabilities impact to revenue for the nine months ended March 31, 2024 and 2023 was an increase of $0.1 million and a decrease of $0.3 million, respectively. Estimated returns are recorded when product is shipped. Subject to some exceptions based on local regulations, the Company’s return policy is to provide a full refund for product returned within 30 days. After 30 days of purchase, only unopened product that is in a resalable and restockable condition may be returned within twelve months of purchase and shall receive a 100% refund, less a 10% handling and restocking fee and any shipping and handling costs. The Company establishes a refund liability reserve, and an asset reserve for its right to recover products, based on historical experience. The returns asset reserve and returns liability reserve are evaluated on a quarterly basis. As of March 31, 2024 and June 30, 2023, the returns liability reserve, net was $0.1 million and $0.1 million, respectively. Shipping and Handling Shipping and handling costs associated with inbound freight and freight out to customers and independent consultants are included in cost of sales. Shipping and handling fees charged to customers and independent consultants are included in revenue. |
Research and Development Costs | Research and Development Costs |
Leases | Leases The Company accounts for leases in accordance with Accounting Standards Codification ("ASC") 842. The Company reviews all contracts and determines if the arrangement is or contains a lease, at inception. Operating leases are included in right-of-use (“ROU”) assets, current lease liabilities and long-term lease liabilities on the condensed consolidated balance sheets. The Company does not have any finance leases. Operating lease ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. ROU assets and lease liabilities are recognized at the lease commencement date based on the estimated present value of lease payments over the lease term. The Company uses its estimated incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. The operating lease ROU asset also includes any upfront lease payments made and excludes lease incentives and initial direct costs incurred. The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. Leases with a term of 12 months or less are not recorded on the balance sheet. The Company’s lease agreements do not contain any residual value guarantees. Changes in the Company's strategies have resulted in operation modifications in certain Asia/Pacific markets resulting in the closure of showrooms and changes to selling models. As of December 31, 2022, the Company abandoned the ROU assets related to the Hong Kong and Singapore showroom leases. These leases were terminated in February 2023 and the Company has no remaining lease liability for these showrooms. Total expenses related to the abandonment of the ROU assets and costs associated with the change in operations in these markets for the nine months ended |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes stock-based compensation by measuring the cost of services to be rendered based on the grant date fair value of the equity award. The Company recognizes stock-based compensation, net of any estimated forfeitures, over the period an employee is required to provide service in exchange for the awa rd, generally referred to as the requisite service period. The Company estimates forfeitures based on historical information and other management assumptions. For awards with market-based performance conditions, the cost of the awards is recognized as the requisite service is rendered by employees, regardless of when, if ever, the market-based performance conditions are satisfied. The Black-Scholes option pricing model is used to estimate the fair value of stock options and options under the Company's 2019 Employee Stock Purchase Plan. The determination of the fair value of options is affected by the Company's stock price and a number of assumptions, including expected volatility, expected life, risk-free interest rate and expected dividends. The Company uses historical data for estimating the expected volatility and expected life of stock options required in the Black-Scholes model. The risk-free interest rate assumption is based on observed interest rates appropriate for the expected terms of the stock options. The fair value of restricted stock grants, including performance restricted stock units that include non-market based performance conditions, is based on the closing market price of the Company's stock on the date of grant less the Company's expected dividend yield. The Company recognizes compensation costs for awards with performance conditions when it concludes it is probable that the performance conditions will be achieved. The Company reassesses the probability of vesting at each balance sheet date and adjusts compensation costs accordingly. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry-forwards. Deferred tax assets and liabilities are measured using statutory tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled, updated as needed for changes in corporate tax rates. The effect on deferred tax assets and liabilities from a change in tax rates is recognized in income in the period that includes the effective date of the change. The Company recognizes tax liabilities or benefits from an uncertain position only if it is more likely than not that the position will be sust ained upon examination by taxing authorities based on the technical merits of the issue. The amount recognized would be the largest liability or benefit that the Company believes has greater than a 50% likelihood of being realized upon settlement. |
Income Per Share | Income Per Share Basic income per common share is computed by dividing the net income by the weighted-average number of common shares outstanding during the period, less unvested restricted stock awards. Diluted income per common share is computed by dividing net income by the weighted-average common shares and potentially dilutive common share equivalents using the treasury stock method. |
Segment Information | Segment Information and Disaggregated Revenue The Company operates in a single operating segment by selling products directly to customers and through an international network of independent consultants that operates in an integrated manner from market to market. Commissions and incentives expenses are the Company’s largest expense comprised of the commissions paid to its independent consultants. The Company manages its business primarily by managing its international network of independent consultants. The Company disaggregates revenue in two geographic regions: the Americas region and the Asia/Pacific & Europe region. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Components of Inventory | As of March 31, 2024 and June 30, 2023, inventory consisted of (in thousands): March 31, June 30, Finished goods $ 11,273 74.4 % $ 12,153 75.6 % Raw materials 3,889 25.6 % 3,920 24.4 % Total inventory $ 15,162 100.0 % $ 16,073 100.0 % |
Schedule of Computation of Net (Loss) Income Per Share | The following is a reconciliation of net income per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands, except per share amounts): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Numerator: Net income $ 1,659 $ 1,022 $ 1,632 $ 574 Denominator: Basic weighted-average common shares outstanding 12,424 12,615 12,525 12,538 Effect of dilutive securities: Stock awards and options 562 155 485 17 Diluted weighted-average common shares outstanding 12,986 12,770 13,010 12,555 Net income per share, basic $ 0.13 $ 0.08 $ 0.13 $ 0.05 Net income per share, diluted $ 0.13 $ 0.08 $ 0.13 $ 0.05 |
Schedule of Revenue Disaggregated by Geographic Regions | The following table presents the Company's revenue disaggregated by these two geographic regions (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Americas $ 37,215 $ 39,532 $ 114,795 $ 115,606 Asia/Pacific & Europe 11,030 14,209 36,438 43,571 Total revenue $ 48,245 $ 53,741 $ 151,233 $ 159,177 Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 United States $ 35,333 $ 37,855 $ 109,448 $ 110,485 Japan $ 6,223 $ 8,133 $ 21,051 $ 23,665 |
Schedule of Long-lived Assets by Geographic Areas | The following table presents the Company's long-lived assets for its most significant geographic markets (in thousands): March 31, June 30, United States $ 20,468 $ 20,504 Japan $ 2,156 $ 354 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Mar. 31, 2024 | |
Leases [Abstract] | |
Schedule of Lease, Cost | The components of lease expense for the three and nine months ended March 31, 2024 and 2023, were as follows: Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Operating lease expense Operating lease cost $ 459 $ 516 $ 1,451 $ 1,929 Variable lease cost 42 103 136 189 Short-term lease costs 12 18 35 63 Total lease expense $ 513 $ 637 $ 1,622 $ 2,181 Supplemental cash flow information related to operating leases was as follows (in thousands): Three Months Ended March 31, Nine Months Ended March 31, 2024 2023 2024 2023 Operating cash outflows from operating leases $ 560 $ 782 $ 1,651 $ 2,288 Right-of-use assets obtained in exchange for lease obligations $ 265 $ — $ 1,767 $ — |
Schedule of Maturity of Lease Liabilities | Maturity of lease liabilities at March 31, 2024 are as follows (in thousands): Year ended June 30, Amount 2024 (remaining three months ending June 30, 2024) $ 550 2025 2,025 2026 2,068 2027 2,080 2028 2,057 Thereafter 6,394 Total 15,174 Less: imputed interest (1,647) Present value of lease liabilities $ 13,527 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Narrative (Details) shares in Thousands | 3 Months Ended | 9 Months Ended | ||||
Dec. 31, 2023 USD ($) | Jun. 30, 2023 USD ($) | Mar. 31, 2024 USD ($) shares | Mar. 31, 2023 USD ($) shares | Mar. 31, 2024 USD ($) segment region shares | Mar. 31, 2023 USD ($) shares | |
Concentration Risk [Line Items] | ||||||
Foreign currency transaction gain (loss), realized | $ (100,000) | $ 36,000 | $ (200,000) | $ (200,000) | ||
Bad debt expenses | 0 | 0 | 0 | 0 | ||
Inventory valuation reserves | $ 1,300,000 | 1,300,000 | 1,300,000 | |||
Deferred revenue | 800,000 | 700,000 | 700,000 | |||
Revenue recognized related to accrued loyalty points | $ (200,000) | 100,000 | $ (100,000) | 300,000 | ||
Money back guarantee period | 30 days | |||||
Return period for resalable and restockable Items | 12 months | |||||
Refund percent for resalable and restockable Items | 100% | 100% | ||||
Handling and restocking fee, percentage (as a percent) | 10% | 10% | ||||
Return liability reserve | 100,000 | $ 100,000 | $ 100,000 | |||
Research and development | 200,000 | 200,000 | 500,000 | 400,000 | ||
Present value of lease liabilities | 13,527,000 | 13,527,000 | ||||
Loss on contract termination | 400,000 | 400,000 | ||||
Income tax expense | $ 262,000 | $ 643,000 | $ 7,000 | $ 869,000 | ||
Antidilutive securities excluded from EPS calculation (in shares) | shares | 8 | 100 | 34 | 300 | ||
Number of geographic segments | region | 2 | |||||
Number of operating segments | segment | 1 | |||||
HONG KONG | ||||||
Concentration Risk [Line Items] | ||||||
Present value of lease liabilities | $ 0 | $ 0 | ||||
Cash accounts held primarily at One Financial Institution | ||||||
Concentration Risk [Line Items] | ||||||
Concentration of credit risk | $ 13,100,000 | 17,000,000 | ||||
Cash held primarily at Other Financial Institutions | ||||||
Concentration Risk [Line Items] | ||||||
Concentration of credit risk | $ 4,300,000 | $ 4,600,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Components of Inventory (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Jun. 30, 2023 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 11,273 | $ 12,153 |
Raw materials | 3,889 | 3,920 |
Total inventory | $ 15,162 | $ 16,073 |
Finished goods, percent of inventory (in percentage) | 74.40% | 75.60% |
Raw materials, percent of inventory (in percentage) | 25.60% | 24.40% |
Percent of total inventory (in percentage) | 100% | 100% |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Summary of Computation of Net (Loss) Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Mar. 31, 2024 | Dec. 31, 2023 | Sep. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||||||||
Net income | $ 1,659 | $ (656) | $ 629 | $ 1,022 | $ (1,058) | $ 610 | $ 1,632 | $ 574 |
Denominator: | ||||||||
Basic weighted-average common shares outstanding (in shares) | 12,424 | 12,615 | 12,525 | 12,538 | ||||
Effect of dilutive securities: | ||||||||
Stock awards and options (in shares) | 562 | 155 | 485 | 17 | ||||
Diluted weighted-average common shares outstanding (in shares) | 12,986 | 12,770 | 13,010 | 12,555 | ||||
Net income per share, basic (in USD per share) | $ 0.13 | $ 0.08 | $ 0.13 | $ 0.05 | ||||
Net income per share, diluted (in USD per share) | $ 0.13 | $ 0.08 | $ 0.13 | $ 0.05 |
Summary of Significant Accoun_7
Summary of Significant Accounting Policies - Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | $ 48,245 | $ 53,741 | $ 151,233 | $ 159,177 | |
Americas | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 37,215 | 39,532 | 114,795 | 115,606 | |
Asia/Pacific & Europe | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 11,030 | 14,209 | 36,438 | 43,571 | |
United States | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 35,333 | 37,855 | 109,448 | 110,485 | |
Long-lived assets | 20,468 | 20,468 | $ 20,504 | ||
Japan | |||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||
Revenue, net | 6,223 | $ 8,133 | 21,051 | $ 23,665 | |
Long-lived assets | $ 2,156 | $ 2,156 | $ 354 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | |
Lessee, Lease, Description [Line Items] | |||||
Weighted average remaining lease term | 7 years 3 months 10 days | 7 years 3 months 10 days | 8 years 3 months 7 days | ||
Weighted average discount rate (as a percent) | 3.26% | 3.26% | 3.25% | ||
Operating lease expense | $ 0.5 | $ 0.6 | $ 1.6 | $ 2.2 | |
Minimum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 1 year | 1 year | |||
Maximum | |||||
Lessee, Lease, Description [Line Items] | |||||
Lease term | 8 years | 8 years |
Leases - Schedule of Lease, Cos
Leases - Schedule of Lease, Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Leases [Abstract] | ||||
Operating cash outflows from operating leases | $ 560 | $ 782 | $ 1,651 | $ 2,288 |
Right-of-use assets obtained in exchange for lease obligations | $ 265 | $ 0 | $ 1,767 | $ 0 |
Leases - Schedule Of Lease Expe
Leases - Schedule Of Lease Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | |
Operating lease expense | ||||
Operating lease cost | $ 459 | $ 516 | $ 1,451 | $ 1,929 |
Variable lease cost | 42 | 103 | 136 | 189 |
Short-term lease costs | 12 | 18 | 35 | 63 |
Total lease expense | $ 513 | $ 637 | $ 1,622 | $ 2,181 |
Leases - Schedule of Maturity o
Leases - Schedule of Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2024 USD ($) |
Leases [Abstract] | |
2024 (remaining three months ending June 30, 2024) | $ 550 |
2025 | 2,025 |
2026 | 2,068 |
2027 | 2,080 |
2028 | 2,057 |
Thereafter | 6,394 |
Total | 15,174 |
Less: imputed interest | (1,647) |
Present value of lease liabilities | $ 13,527 |
Long-Term Debt (Details)
Long-Term Debt (Details) | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||||
Sep. 22, 2023 $ / shares | Apr. 01, 2021 USD ($) | Aug. 31, 2023 $ / shares | Mar. 31, 2024 $ / shares | Mar. 31, 2023 $ / shares | Mar. 31, 2024 $ / shares | Mar. 31, 2023 $ / shares | Apr. 12, 2024 USD ($) | Aug. 28, 2023 USD ($) | Sep. 30, 2022 USD ($) | Mar. 30, 2016 USD ($) | |
Line of Credit Facility [Line Items] | |||||||||||
Maximum dividend | $ 750,000 | ||||||||||
Cash dividend paid (in dollars per share) | $ / shares | $ 0.035 | $ 0.03 | $ 0.51 | $ 0.09 | |||||||
Special Dividend | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Cash dividend paid (in dollars per share) | $ / shares | $ 0.40 | ||||||||||
Cash dividend, common stock declared (in dollars per share) | $ / shares | $ 0.40 | ||||||||||
Ordinary Dividend | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Cash dividend paid (in dollars per share) | $ / shares | $ 0.035 | ||||||||||
Cash dividend, common stock declared (in dollars per share) | $ / shares | $ 0.035 | ||||||||||
Secured Debt | March 2016 Term Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum capacity on draw | $ 10,000,000 | ||||||||||
Debt instrument, covenant, required minimum working capital | $ 6,000,000 | ||||||||||
Secured Debt | March 2016 Revolving Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, covenant, fixed charge coverage ratio | 1.10 | ||||||||||
Revolving Credit Facility | Line of Credit | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Debt instrument, covenant, total liabilities to tangible net worth ratio (not greater than) | 2 | ||||||||||
Revolving Credit Facility | March 2016 Revolving Loan | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum capacity on draw | $ 5,000,000 | $ 2,000,000 | |||||||||
Basis spread on variable rate (as a percent) | 3% | ||||||||||
Floor interest rate (as a percent) | 4% | ||||||||||
Debt instrument. Covenant, Dividend Payment Amount Maximum | $ 500,000 | ||||||||||
Revolving Credit Facility | March 2016 Revolving Loan | Line of Credit | Subsequent Event | |||||||||||
Line of Credit Facility [Line Items] | |||||||||||
Maximum capacity on draw | $ 5,000,000 |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - USD ($) | 1 Months Ended | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||||||
Sep. 22, 2023 | Aug. 31, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Jun. 30, 2023 | Aug. 30, 2023 | Feb. 17, 2022 | Aug. 27, 2020 | Feb. 01, 2019 | Nov. 27, 2017 | |
Class of Stock [Line Items] | |||||||||||||
Shares issued for stock option exercises (in shares) | 0 | 0 | 0 | ||||||||||
Shares canceled or surrendered as payment of tax withholding (in shares) | 200,000 | 36,000 | |||||||||||
Repurchase common stock amount authorized (up to) | $ 60,000,000 | $ 35,000,000 | $ 15,000,000 | $ 5,000,000 | |||||||||
Stock repurchase program shares repurchased (in shares) | 300,000 | 0 | 700,000 | 0 | |||||||||
Repurchase of company stock | $ 1,900,000 | $ 4,599,000 | $ 0 | ||||||||||
Remaining authorized repurchase amount | $ 22,300,000 | $ 22,300,000 | |||||||||||
Number of rights | 1 | ||||||||||||
Exercise price of rights (in dollars per share) | $ 20 | ||||||||||||
Percent of common stock acquisition that makes rights exercisable | 12% | ||||||||||||
Percent of common stock acquisition that makes rights exercisable, passive investors | 20% | ||||||||||||
Discount percent | 50% | ||||||||||||
Cash dividend paid (in dollars per share) | $ 0.035 | $ 0.03 | $ 0.51 | $ 0.09 | |||||||||
Dividends, common stock, cash | $ 400,000 | $ 400,000 | $ 6,400,000 | $ 1,100,000 | |||||||||
Ordinary Dividend | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Cash dividend paid (in dollars per share) | $ 0.035 | ||||||||||||
Cash dividend, common stock declared (in dollars per share) | $ 0.035 | ||||||||||||
Special Dividend | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Cash dividend paid (in dollars per share) | $ 0.40 | ||||||||||||
Cash dividend, common stock declared (in dollars per share) | $ 0.40 | ||||||||||||
Common Stock | |||||||||||||
Class of Stock [Line Items] | |||||||||||||
Shares issued under equity award plan (in shares) | 100,000 | 38,000 | 900,000 | 200,000 | |||||||||
Shares canceled or surrendered as payment of tax withholding (in shares) | 38,000 | 14,000 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Nov. 09, 2023 | Feb. 16, 2017 | Sep. 27, 2010 | Mar. 31, 2024 | Mar. 31, 2023 | Mar. 31, 2024 | Mar. 31, 2023 | Feb. 02, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock issued under employee stock purchase plan (in shares) | 25,000 | 40,000 | 64,000 | 76,000 | ||||
Stock based compensation reflected in additional paid in capital | $ 800,000 | $ 800,000 | $ 2,500,000 | $ 2,200,000 | ||||
2010 Long-Term Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 475,000 | |||||||
Contractual term of stock options granted | 10 years | |||||||
2017 Long-Term Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 5,100,000 | 5,100,000 | ||||||
Number of additional shares authorized (in shares) | 1,138,000 | 650,000 | ||||||
Right to purchase common stock, non-vested and outstanding, exercise price (in USD per share) | $ 4.44 | $ 4.44 | ||||||
Share based payment award, vesting period | 3 years | |||||||
Options outstanding, net of awards expired (in shares) | 100,000 | 100,000 | ||||||
2017 Long-Term Incentive Plan Excluding 2010 Long-Term Incentive Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares authorized (in shares) | 4,630,000 | |||||||
Employee Stock Purchase Plan | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common Stock, capital shares reserved for future issuance (in shares) | 400,000 | 400,000 | ||||||
Shares available for issuance under the ESPP (in shares) | 100,000 | 100,000 | ||||||
Purchase price of common stock (as a percent) | 85% | |||||||
Maximum employee subscription rate (as a percent) | 15% | 15% | ||||||
Maximum number of shares per employee (in shares) | 3,000 | |||||||
Amount in excess of fair market value of stock for option not to be granted | $ 25,000 | $ 25,000 | ||||||
Offering period | 6 months |