Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000912061 | |
Entity Registrant Name | Natural Health Trends Corp. | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2020 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-36849 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 59-2705336 | |
Entity Address, Address Line One | Units 1205-07, 12F Mira Place Tower A 132 Nathan Road | |
Entity Address, City or Town | Kowloon | |
Entity Address, Country | HK | |
City Area Code | 852 | |
Local Phone Number | 3107-0800 | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | NHTC | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 11,422,539 |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 90,789 | $ 96,035 |
Inventories | 4,259 | 6,404 |
Other current assets | 4,972 | 5,936 |
Total current assets | 100,020 | 108,375 |
Property and equipment, net | 581 | 735 |
Operating lease right-of-use assets | 4,200 | 3,135 |
Restricted cash | 517 | 3,390 |
Deferred tax asset | 1,069 | 2,039 |
Other assets | 701 | 823 |
Total assets | 107,088 | 118,497 |
Current liabilities: | ||
Accounts payable | 887 | 680 |
Accrued commissions | 3,046 | 2,931 |
Other accrued expenses | 1,786 | 2,387 |
Deferred revenue | 3,477 | 4,506 |
Amounts held in eWallets | 9,831 | 12,938 |
Operating lease liabilities | 1,217 | 1,655 |
Other current liabilities | 1,067 | 1,205 |
Total current liabilities | 21,311 | 26,302 |
Income taxes payable | 13,748 | 15,365 |
Deferred tax liability | 203 | 202 |
Operating lease liabilities | 3,150 | 1,564 |
Total liabilities | 38,412 | 43,433 |
Commitments and contingencies (Note 7) | ||
Stockholders’ equity: | ||
Preferred stock, $0.001 par value; 5,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, $0.001 par value; 50,000,000 shares authorized; 12,979,414 shares issued at September 30, 2020 and December 31, 2019 | 13 | 13 |
Additional paid-in capital | 86,102 | 86,102 |
Retained earnings | 9,358 | 16,117 |
Accumulated other comprehensive loss | (893) | (1,264) |
Treasury stock, at cost; 1,556,875 shares at September 30, 2020 and December 31, 2019 | (25,904) | (25,904) |
Total stockholders’ equity | 68,676 | 75,064 |
Total liabilities and stockholders’ equity | $ 107,088 | $ 118,497 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, issued (in shares) | 12,979,414 | 12,979,414 |
Treasury stock, shares (in shares) | 1,556,875 | 1,556,875 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 14,124 | $ 17,023 | $ 45,476 | $ 59,779 |
Cost of sales | 3,635 | 4,371 | 12,966 | 15,002 |
Gross profit | 10,489 | 12,652 | 32,510 | 44,777 |
Operating expenses: | ||||
Commissions expense | 5,620 | 7,362 | 19,336 | 28,258 |
Selling, general and administrative expenses | 4,201 | 6,354 | 13,771 | 20,296 |
Total operating expenses | 9,821 | 13,716 | 33,107 | 48,554 |
Income (loss) from operations | 668 | (1,064) | (597) | (3,777) |
Other income, net | 385 | 323 | 603 | 1,128 |
Income (loss) before income taxes | 1,053 | (741) | 6 | (2,649) |
Income tax provision (benefit) | 418 | 502 | (90) | 120 |
Net income (loss) | $ 635 | $ (1,243) | $ 96 | $ (2,769) |
Net income (loss) per common share: | ||||
Basic (in dollars per share) | $ 0.06 | $ (0.12) | $ 0.01 | $ (0.25) |
Diluted (in dollars per share) | $ 0.06 | $ (0.12) | $ 0.01 | $ (0.25) |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 10,678 | 10,623 | 10,581 | 11,010 |
Diluted (in shares) | 11,424 | 10,623 | 11,424 | 11,010 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) | $ 635 | $ (1,243) | $ 96 | $ (2,769) |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 493 | (584) | 355 | (537) |
Unrealized gains (losses) on available-for-sale securities | (2) | 12 | 16 | 23 |
Comprehensive income (loss) | $ 1,126 | $ (1,815) | $ 467 | $ (3,283) |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
BALANCE (in shares) at Dec. 31, 2018 | 0 | 12,979,414 | (1,603,322) | ||||
Balance, December 31, 2019 at Dec. 31, 2018 | $ 0 | $ 13 | $ 86,415 | $ 44,431 | $ (1,250) | $ (39,748) | $ 89,861 |
Net income (loss) | 0 | 0 | 0 | (1,923) | 0 | 0 | (1,923) |
Dividends declared | 0 | 0 | 0 | (2,736) | 0 | 0 | (2,736) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 259 | 0 | 259 |
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 | 0 | 0 | 17 | $ 0 | 17 |
Common stock issued (in shares) | 0 | 0 | 22,603 | ||||
Common stock issued | $ 0 | $ 0 | 0 | 0 | $ 543 | 377 | |
Common stock issued | (166) | ||||||
BALANCE (in shares) at Mar. 31, 2019 | 0 | 12,979,414 | (1,580,719) | ||||
Balance, September 30, 2020 at Mar. 31, 2019 | $ 0 | $ 13 | 86,249 | 39,772 | (974) | $ (39,205) | 85,855 |
BALANCE (in shares) at Dec. 31, 2018 | 0 | 12,979,414 | (1,603,322) | ||||
Balance, December 31, 2019 at Dec. 31, 2018 | $ 0 | $ 13 | 86,415 | 44,431 | (1,250) | $ (39,748) | 89,861 |
Net income (loss) | (2,769) | ||||||
Foreign currency translation adjustment | (537) | ||||||
Unrealized gains (losses) on available-for-sale securities | 23 | ||||||
BALANCE (in shares) at Sep. 30, 2019 | 0 | 12,979,414 | (1,459,090) | ||||
Balance, September 30, 2020 at Sep. 30, 2019 | $ 0 | $ 13 | 86,102 | 23,567 | (1,764) | $ (25,351) | 82,567 |
BALANCE (in shares) at Mar. 31, 2019 | 0 | 12,979,414 | (1,580,719) | ||||
Balance, December 31, 2019 at Mar. 31, 2019 | $ 0 | $ 13 | 86,249 | 39,772 | (974) | $ (39,205) | 85,855 |
Net income (loss) | 0 | 0 | 0 | 397 | 0 | 0 | 397 |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (212) | 0 | (212) |
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 | 0 | 0 | (6) | $ 0 | (6) |
Repurchase of common stock (in shares) | 0 | 0 | (612,729) | ||||
Repurchase of common stock | $ 0 | $ 0 | 0 | 0 | 0 | $ (6,682) | (6,682) |
BALANCE (in shares) at Jun. 30, 2019 | 0 | 12,979,414 | (2,193,448) | ||||
Balance, September 30, 2020 at Jun. 30, 2019 | $ 0 | $ 13 | 86,249 | 40,169 | (1,192) | $ (45,887) | 79,352 |
Net income (loss) | 0 | 0 | 0 | (1,243) | 0 | 0 | (1,243) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (584) | 0 | (584) |
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 | 0 | 0 | 12 | $ 0 | 12 |
Common stock issued (in shares) | 0 | 0 | 1,117,485 | ||||
Common stock issued | $ 0 | $ 0 | (15,359) | 0 | $ 23,418 | 7,912 | |
Common stock issued | (147) | ||||||
Repurchase of common stock (in shares) | 0 | 0 | (383,127) | ||||
Repurchase of common stock | $ 0 | $ 0 | 0 | 0 | 0 | $ (2,882) | (2,882) |
BALANCE (in shares) at Sep. 30, 2019 | 0 | 12,979,414 | (1,459,090) | ||||
Balance, September 30, 2020 at Sep. 30, 2019 | $ 0 | $ 13 | 86,102 | 23,567 | (1,764) | $ (25,351) | 82,567 |
BALANCE (in shares) at Dec. 31, 2019 | 0 | 12,979,414 | (1,556,875) | ||||
Balance, December 31, 2019 at Dec. 31, 2019 | $ 0 | $ 13 | 86,102 | 16,117 | (1,264) | $ (25,904) | 75,064 |
Net income (loss) | 0 | 0 | 0 | (573) | 0 | 0 | (573) |
Dividends declared | 0 | 0 | 0 | (2,285) | 0 | 0 | (2,285) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | (222) | 0 | (222) |
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 | 0 | 0 | (87) | $ 0 | (87) |
BALANCE (in shares) at Mar. 31, 2020 | 0 | 12,979,414 | (1,556,875) | ||||
Balance, September 30, 2020 at Mar. 31, 2020 | $ 0 | $ 13 | 86,102 | 13,259 | (1,573) | $ (25,904) | 71,897 |
BALANCE (in shares) at Dec. 31, 2019 | 0 | 12,979,414 | (1,556,875) | ||||
Balance, December 31, 2019 at Dec. 31, 2019 | $ 0 | $ 13 | 86,102 | 16,117 | (1,264) | $ (25,904) | 75,064 |
Net income (loss) | 96 | ||||||
Foreign currency translation adjustment | 355 | ||||||
Unrealized gains (losses) on available-for-sale securities | 16 | ||||||
BALANCE (in shares) at Sep. 30, 2020 | 0 | 12,979,414 | (1,556,875) | ||||
Balance, September 30, 2020 at Sep. 30, 2020 | $ 0 | $ 13 | 86,102 | 9,358 | (893) | $ (25,904) | 68,676 |
BALANCE (in shares) at Mar. 31, 2020 | 0 | 12,979,414 | (1,556,875) | ||||
Balance, December 31, 2019 at Mar. 31, 2020 | $ 0 | $ 13 | 86,102 | 13,259 | (1,573) | $ (25,904) | 71,897 |
Net income (loss) | 0 | 0 | 0 | 34 | 0 | 0 | 34 |
Dividends declared | 0 | 0 | 0 | (2,285) | 0 | 0 | (2,285) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 84 | 0 | 84 |
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 | 0 | 0 | 105 | $ 0 | 105 |
BALANCE (in shares) at Jun. 30, 2020 | 0 | 12,979,414 | (1,556,875) | ||||
Balance, September 30, 2020 at Jun. 30, 2020 | $ 0 | $ 13 | 86,102 | 11,008 | (1,384) | $ (25,904) | 69,835 |
Net income (loss) | 0 | 0 | 0 | 635 | 0 | 0 | 635 |
Dividends declared | 0 | 0 | 0 | (2,285) | 0 | 0 | (2,285) |
Foreign currency translation adjustment | 0 | 0 | 0 | 0 | 493 | 0 | 493 |
Unrealized gains (losses) on available-for-sale securities | $ 0 | $ 0 | 0 | 0 | (2) | $ 0 | (2) |
BALANCE (in shares) at Sep. 30, 2020 | 0 | 12,979,414 | (1,556,875) | ||||
Balance, September 30, 2020 at Sep. 30, 2020 | $ 0 | $ 13 | $ 86,102 | $ 9,358 | $ (893) | $ (25,904) | $ 68,676 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Dividends declared, per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 96 | $ (2,769) |
Adjustments to reconcile net income (loss) to net cash used in operating activities: | ||
Depreciation and amortization | 301 | 290 |
Noncash lease expense | 1,199 | 1,336 |
Deferred income taxes | 979 | (3) |
Changes in assets and liabilities: | ||
Inventories | 2,193 | 4,104 |
Other current assets | 923 | (1,674) |
Other assets | 120 | 2 |
Accounts payable | 206 | (1,002) |
Accrued commissions | 136 | (8,683) |
Other accrued expenses | (598) | (1,779) |
Deferred revenue | (1,045) | (3,485) |
Amounts held in eWallets | (3,163) | (1,508) |
Operating lease liabilities | (1,120) | (1,392) |
Income taxes payable | (1,617) | (1,617) |
Other current liabilities | (140) | (235) |
Long-term incentive | 0 | (333) |
Net cash used in operating activities | (1,530) | (18,748) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (147) | (181) |
Net cash used in investing activities | (147) | (181) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | 0 | (9,564) |
Dividends paid | (6,855) | (2,736) |
Net cash used in financing activities | (6,855) | (12,300) |
Effect of exchange rates on cash, cash equivalents and restricted cash | 413 | (428) |
Net decrease in cash, cash equivalents and restricted cash | (8,119) | (31,657) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 99,425 | 135,651 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 91,306 | 103,994 |
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | ||
Issuance of treasury stock for employee awards, net | 0 | 8,289 |
Right-of-use assets obtained in exchange for operating lease liabilities | $ 2,724 | $ 5,058 |
Note 1 - Nature of Operations,
Note 1 - Nature of Operations, Basis of Presentation and Consolidation | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Business Description and Basis of Presentation [Text Block] | 1. Nature of Operations Natural Health Trends Corp., a Delaware corporation (whether or not The Company’s wholly-owned subsidiaries have an active physical presence in the following markets: the Americas, which consists of the United States, Canada, Cayman Islands, Mexico and Peru; Greater China, which consists of Hong Kong, Taiwan and China; Southeast Asia, which consists of Singapore, Malaysia, Thailand and Vietnam; South Korea; Japan; India; and Europe. The Company also operates in Russia and Kazakhstan through an engagement with a local service provider. Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 10 01 X. not 2019 10 March 9, 2020. Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. Restricted Cash In June 2015, December 31, 2019 March 2020 Net Income (Loss) Per Common Share Diluted net income (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not The following tables illustrate the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, 2020 2019 Income (Numerator) Shares (Denominator) Per Share Amount Loss (Numerator) Shares (Denominator) Per Share Amount Basic net income (loss) per common share: Net income (loss) available to common stockholders $ 635 10,678 $ 0.06 $ (1,243 ) 10,623 $ (0.12 ) Effect of dilutive securities: Non-vested restricted stock — 746 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 635 11,424 $ 0.06 $ (1,243 ) 10,623 $ (0.12 ) Nine Months Ended September 30, 2020 2019 Income (Numerator) Shares (Denominator) Per Share Amount Loss (Numerator) Shares (Denominator) Per Share Amount Basic net income (loss) per common share: Net income (loss) available to common stockholders $ 96 10,581 $ 0.01 $ (2,769 ) 11,010 $ (0.25 ) Effect of dilutive securities: Non-vested restricted stock — 843 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 96 11,424 $ 0.01 $ (2,769 ) 11,010 $ (0.25 ) In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. As such, non-vested restricted stock totaling 672,231 and 263,289 shares were not three nine September 30, 2019, Recent Accounting Pronouncements In June 2016, 2016 13, Financial Instruments - Credit Losses (Topic 326 326 November 2019, 2019 11, Codification Improvements to Topic 326, 2019 11 326. 2016 13 2019 11 December 15, 2022, In August 2018, 2018 13, Fair Value Measurement (Topic 820 December 15, 2019, not In December 2019, 2019 12, Income Taxes (Topic 740 December 15, 2020, first 2020. not Other recently issued accounting pronouncements did not not |
Note 2 - Revenue
Note 2 - Revenue | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | 2. Revenue Recognition All revenue is recognized when the performance obligations under a contract, including any product vouchers sold on a stand-alone basis in Hong Kong, are satisfied. Product sales are recognized when the products are shipped and title passes to independent members. Product sales to members are made pursuant to a member agreement that provides for transfer of both title and risk of loss upon the Company’s delivery to the carrier that completes delivery to the members, which is commonly referred to as “F.O.B. Shipping Point.” The Company’s sales arrangements do not Actual product returns are recorded as a reduction to net sales. The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. The reserve is based upon the return policy of each country, which varies from 14 one nine September 30, 2020 2019 No 3 The Company has elected to account for shipping and handling activities performed after title has passed to members as a fulfillment cost, and accrues for the costs of shipping and handling if revenue is recognized before the contractually obligated shipping and handling activities occurs. Shipping charges billed to members are included in net sales. Costs associated with shipments are included in cost of sales. Event and training revenue is deferred and recognized as the event or training occurs. Costs of events and member training are included within selling, general and administrative expenses. Various taxes on the sale of products to members are collected by the Company as an agent and remitted to the respective taxing authority. These taxes are presented on a net basis and recorded as a liability until remitted to the respective taxing authority. Deferred Revenue The Company primarily receives payment by credit card at the time members place orders. Amounts received for unshipped product orders and unredeemed product vouchers are considered a contract liability and are recorded as deferred revenue. The increase in deferred revenue from June 30, 2020 September 30, 2020 3 Disaggregation of Revenue The Company sells products to a member network that operates in a seamless manner from market to market, except for the Chinese market where it sells to consumers through an e-commerce retail platform and the Russia and Kazakhstan market where the Company operates through an engagement of a third 10 The Company’s net sales by product and service are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Product sales $ 12,023 $ 15,732 $ 41,234 $ 56,355 Administrative fees, freight and other 2,316 1,468 4,854 4,713 Less: sales returns (215 ) (177 ) (612 ) (1,289 ) Total net sales $ 14,124 $ 17,023 $ 45,476 $ 59,779 During June 2020, three September 30, 2020. Concentration No single market other than Hong Kong had net sales greater than 10% 10% three nine September 30, 2020 2019 no 10% Arrangements with Multiple Performance Obligations The Company’s contracts with customers may Practical Expedients The Company generally expenses sales commissions when incurred because the amortization period would have been one The Company does not one |
Note 3 - Balance Sheet Componen
Note 3 - Balance Sheet Components | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 3. The components of certain balance sheet amounts are as follows (in thousands): September 30, 2020 December 31, 2019 Cash, cash equivalents and restricted cash: Cash $ 22,408 $ 13,720 Cash equivalents 68,381 82,315 90,789 96,035 Restricted cash 517 3,390 $ 91,306 $ 99,425 Inventories: Finished goods $ 3,844 $ 6,142 Raw materials 836 1,249 Reserve for obsolescence (421 ) (987 ) $ 4,259 $ 6,404 Other accrued expenses: Sales returns $ 207 $ 373 Employee-related expense 941 1,258 Warehousing, inventory-related and other 638 756 $ 1,786 $ 2,387 Deferred revenue: Unshipped product and unredeemed product vouchers $ 1,397 $ 2,390 Auto ship advances 1,971 1,985 Other 109 131 $ 3,477 $ 4,506 |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. As of September 30, 2020 three 320, Investments - Debt and Equity Securities September 30, 2020 The carrying amounts of the Company’s financial instruments, including cash and accounts payable, approximate fair value because of their short maturities. The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not Investments by significant category included in cash equivalents at the end of each period were as follows (in thousands): September 30, 2020 December 31, 2019 Fair Value Level 1 Adjusted Cost Gross Unrealized Losses Fair Value Adjusted Cost Gross Unrealized Losses Fair Value Money market funds Level 1 $ 56,547 $ — $ 56,547 $ 11,659 $ — $ 11,659 Time deposits Level 2 5,000 — 5,000 13,544 — 13,544 Municipal debt securities Level 2 2,104 — 2,104 347 — 347 Corporate debt securities Level 2 4,732 (2 ) 4,730 56,784 (19 ) 56,765 Total investments $ 68,383 $ (2 ) $ 68,381 $ 82,334 $ (19 ) $ 82,315 1 FASB Topic 820, Level 1: Level 2: Level 3: not |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 5 . LEASES The Company leases 9,600 square feet of office space in Hong Kong and 4,900 square feet of office space in Rolling Hills Estates, California for its corporate staff. In June 2020, five September 2030. July 1, 2020, June 2023. November 2025, February 2021, November 2022, The Company leases eight branch offices throughout China, and additional office space in Peru, Japan, Taiwan, South Korea, Singapore, Malaysia, Vietnam, Indonesia, Thailand, India, and the Cayman Islands. The Company also leases a factory in Zhongshan, China. The Company contracts with third None third not The components of lease cost for the three nine September 30, 2020 2019 Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating leases $ 377 $ 512 $ 1,292 $ 1,544 Short-term leases 72 73 237 201 Total lease cost $ 449 $ 585 $ 1,529 $ 1,745 Cash paid for amounts included in the measurement of operating leases liabilities was $342,000 and $459,000 for the three September 30, 2020 2019 nine September 30, 2020 2019 The weighted-average remaining lease term and discount rate related to operating leases as of September 30, 2020 Weighted-average remaining lease term (in years) 5.5 Weighted-average discount rate 3.5 % As most of our leases do not The annual scheduled lease payments of our operating lease liabilities as of September 30, 2020 Remainder of 2020 $ 373 2021 1,245 2022 1,095 2023 582 2024 261 Thereafter 1,251 Total lease payments $ 4,807 Less: imputed interest (440 ) Present value of lease liabilities $ 4,367 For all asset classes, the Company elected not 12 not |
Note 6 - Income Taxes
Note 6 - Income Taxes | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6 . INCOME TAXES The effective income tax rate for the three nine September 30, 2020 March 27, 2020. 1986, not 2018 2019 2020 five As of September 30, 2020 not not September 30, 2020 not As of September 30, 2020 no August 2020 December 31, 2019 December 31, 2016. 2040. September 30, 2020 As a result of capital return activities, the Company determined that a portion of its current undistributed foreign earnings is no not September 30, 2020 not September 30, 2020 2017, no 50% September 30, 2020 The Company and its subsidiaries file tax returns in the United States, California, New Jersey and Texas and various foreign jurisdictions. During the fourth 2018, 2016 2017 2018 2007 No no 2015. |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 7 . COMMITMENTS AND CONTINGENCIES On January 8, 2019, two Kauffman v. Natural Health Trends Corp. No. 2:19 00163. May 3, 2019, June 3, 2019, January 17, 2020, February 14, 2020, April 9, 2020, The SEC is conducting a non-public investigation to determine whether there have been violations of the federal securities laws relating to the trading of the Company’s securities and/or its public disclosures. The Company has fully cooperated with the SEC and continues to do so. The amount of time needed to resolve this matter is uncertain, and the Company cannot predict the outcome or whether it will face additional governmental inquiries or other actions. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 8. Dividends The following table summarizes the Company’s cash dividend activity for the nine September 30, 2020 Declaration Date Per Share Amount Record Date Payment Date February 10, 2020 $ 0.20 $ 2,285 February 25, 2020 March 6, 2020 May 4, 2020 0.20 2,285 May 19, 2020 May 29, 2020 August 3, 2020 0.20 2,285 August 18, 2020 August 28, 2020 $ 0.60 $ 6,855 The declaration and payment of any future dividends on shares of common stock will be at the sole discretion of the Company’s Board of Directors. Stock Repurchases On January 12, 2016, first July 28, 2015 10b 18 may one 10b5 1 not may On May 16, 2019, 2012 9 May 2019, 10b 18 May 31, 2019. On August 6, 2019, August September 2019, As of September 30, 2020 $70.0 July 28, 2015 January 12, 2016 Restricted Stock At the Company’s annual meeting of stockholders held on April 7, 2016, 2016 “2016 2007 2016 may September 30, 2020 2016 The following table summarizes the Company’s restricted stock activity under the 2016 Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2019 957,682 $ 7.34 Vested (293,583 ) $ 7.53 Nonvested at September 30, 2020 664,099 $ 7.25 Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component for the nine 2020 Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Available-For-Sale Investments Total Balance, December 31, 2019 $ (1,245 ) $ (19 ) $ (1,264 ) Other comprehensive income 355 16 371 Balance, September 30, 2020 $ (890 ) $ (3 ) $ (893 ) |
Note 9 - Related Party Transact
Note 9 - Related Party Transactions | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 9. The Company is a party to a Royalty Agreement and License with Broady Health Sciences, L.L.C., a Texas limited liability company, (“BHS”) regarding the manufacture and sale of a product called ReStor™. George K. Broady, a director of the Company and beneficial owner of more than 5% of its outstanding common stock, is owner of BHS. Under this agreement (as amended), the Company agreed to pay BHS a royalty based on a price per unit in return for the right to manufacture (or have manufactured), market, import, export and sell this product worldwide by or through multi-level marketing or network marketing. Such royalties were $14,000 and $19,000 for the three September 30, 2020 2019 nine September 30, 2020 2019 not may no March 20, 2020 five March 31, 2025, one The Company procured in China and arranged for shipment to The Aberdeen Group, LLC (“Aberdeen”) one order of apparel products in the amount of $7,100 during the three March 31, 2019. third 402 2002. not 402. On May 17, 2019, 2012 10b5 1 1934, May 16, 2019. May 31, 2019, 8. |
Note 10 - Segment Information
Note 10 - Segment Information | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 10. The Company sells products to a member network that operates in a seamless manner from market to market, except for the China market where it sells to some consumers through an e-commerce platform, and the Russia and Kazakhstan market where the Company’s engagement of a third single The Company reviews its net sales and operating income (loss) by operating segment, and reviews its assets and capital expenditures on a consolidated basis and not not The Company’s operating information by geographic area are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales: Primary Reporting Segment $ 13,294 $ 16,254 $ 42,718 $ 56,979 China 640 525 2,156 2,138 Russia and Kazakhstan 190 244 602 662 Total net sales $ 14,124 $ 17,023 $ 45,476 $ 59,779 Income (loss) from operations: Primary Reporting Segment $ 2,715 $ 2,974 $ 6,038 $ 7,506 China 134 (795 ) 64 (1,530 ) Russia and Kazakhstan (59 ) (82 ) (37 ) (138 ) Total income from operations for reportable segments 2,790 2,097 6,065 5,838 Unallocated corporate expenses (2,122 ) (3,161 ) (6,662 ) (9,615 ) Other income, net 385 323 603 1,128 Income (loss) before income taxes $ 1,053 $ (741 ) $ 6 $ (2,649 ) The Company’s net sales by geographic area are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales from external customers: United States $ 338 $ 551 $ 1,202 $ 1,607 Canada 132 313 536 808 Peru 357 581 954 1,938 Hong Kong 1 11,132 13,575 36,238 48,465 China 640 525 2,156 2,138 Taiwan 771 649 2,261 2,340 South Korea 52 98 220 288 Russia and Kazakhstan 190 244 602 662 Europe 259 343 747 1,017 Other foreign countries 253 144 560 516 Total net sales $ 14,124 $ 17,023 $ 45,476 $ 59,779 1 Substantially all of our Hong Kong revenues are derived from the sale of products that are delivered to members in China. See “Item 1A. 10 |
Note 11 - Subsequent Events
Note 11 - Subsequent Events | 9 Months Ended |
Sep. 30, 2020 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 11. On November 2, 2020, November 27, 2020 November 17, 2020. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10 10 01 X. not 2019 10 March 9, 2020. |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its wholly-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash In June 2015, December 31, 2019 March 2020 |
Earnings Per Share, Policy [Policy Text Block] | Net Income (Loss) Per Common Share Diluted net income (loss) per common share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents. The dilutive effect of non-vested restricted stock is reflected by application of the treasury stock method. Under the treasury stock method, the amount of compensation cost for future service that the Company has not The following tables illustrate the computation of basic and diluted net income (loss) per common share for the periods indicated (in thousands, except per share data): Three Months Ended September 30, 2020 2019 Income (Numerator) Shares (Denominator) Per Share Amount Loss (Numerator) Shares (Denominator) Per Share Amount Basic net income (loss) per common share: Net income (loss) available to common stockholders $ 635 10,678 $ 0.06 $ (1,243 ) 10,623 $ (0.12 ) Effect of dilutive securities: Non-vested restricted stock — 746 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 635 11,424 $ 0.06 $ (1,243 ) 10,623 $ (0.12 ) Nine Months Ended September 30, 2020 2019 Income (Numerator) Shares (Denominator) Per Share Amount Loss (Numerator) Shares (Denominator) Per Share Amount Basic net income (loss) per common share: Net income (loss) available to common stockholders $ 96 10,581 $ 0.01 $ (2,769 ) 11,010 $ (0.25 ) Effect of dilutive securities: Non-vested restricted stock — 843 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 96 11,424 $ 0.01 $ (2,769 ) 11,010 $ (0.25 ) In periods when losses are reported, the weighted-average number of common shares outstanding excludes common stock equivalents because their inclusion would be anti-dilutive. As such, non-vested restricted stock totaling 672,231 and 263,289 shares were not three nine September 30, 2019, |
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements In June 2016, 2016 13, Financial Instruments - Credit Losses (Topic 326 326 November 2019, 2019 11, Codification Improvements to Topic 326, 2019 11 326. 2016 13 2019 11 December 15, 2022, In August 2018, 2018 13, Fair Value Measurement (Topic 820 December 15, 2019, not In December 2019, 2019 12, Income Taxes (Topic 740 December 15, 2020, first 2020. not Other recently issued accounting pronouncements did not not |
Note 1 - Nature of Operations_2
Note 1 - Nature of Operations, Basis of Presentation and Consolidation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended September 30, 2020 2019 Income (Numerator) Shares (Denominator) Per Share Amount Loss (Numerator) Shares (Denominator) Per Share Amount Basic net income (loss) per common share: Net income (loss) available to common stockholders $ 635 10,678 $ 0.06 $ (1,243 ) 10,623 $ (0.12 ) Effect of dilutive securities: Non-vested restricted stock — 746 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 635 11,424 $ 0.06 $ (1,243 ) 10,623 $ (0.12 ) Nine Months Ended September 30, 2020 2019 Income (Numerator) Shares (Denominator) Per Share Amount Loss (Numerator) Shares (Denominator) Per Share Amount Basic net income (loss) per common share: Net income (loss) available to common stockholders $ 96 10,581 $ 0.01 $ (2,769 ) 11,010 $ (0.25 ) Effect of dilutive securities: Non-vested restricted stock — 843 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 96 11,424 $ 0.01 $ (2,769 ) 11,010 $ (0.25 ) |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Product sales $ 12,023 $ 15,732 $ 41,234 $ 56,355 Administrative fees, freight and other 2,316 1,468 4,854 4,713 Less: sales returns (215 ) (177 ) (612 ) (1,289 ) Total net sales $ 14,124 $ 17,023 $ 45,476 $ 59,779 |
Note 3 - Balance Sheet Compon_2
Note 3 - Balance Sheet Components (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Additional Balance Sheet Components [Table Text Block] | September 30, 2020 December 31, 2019 Cash, cash equivalents and restricted cash: Cash $ 22,408 $ 13,720 Cash equivalents 68,381 82,315 90,789 96,035 Restricted cash 517 3,390 $ 91,306 $ 99,425 Inventories: Finished goods $ 3,844 $ 6,142 Raw materials 836 1,249 Reserve for obsolescence (421 ) (987 ) $ 4,259 $ 6,404 Other accrued expenses: Sales returns $ 207 $ 373 Employee-related expense 941 1,258 Warehousing, inventory-related and other 638 756 $ 1,786 $ 2,387 Deferred revenue: Unshipped product and unredeemed product vouchers $ 1,397 $ 2,390 Auto ship advances 1,971 1,985 Other 109 131 $ 3,477 $ 4,506 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | September 30, 2020 December 31, 2019 Fair Value Level 1 Adjusted Cost Gross Unrealized Losses Fair Value Adjusted Cost Gross Unrealized Losses Fair Value Money market funds Level 1 $ 56,547 $ — $ 56,547 $ 11,659 $ — $ 11,659 Time deposits Level 2 5,000 — 5,000 13,544 — 13,544 Municipal debt securities Level 2 2,104 — 2,104 347 — 347 Corporate debt securities Level 2 4,732 (2 ) 4,730 56,784 (19 ) 56,765 Total investments $ 68,383 $ (2 ) $ 68,381 $ 82,334 $ (19 ) $ 82,315 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Operating leases $ 377 $ 512 $ 1,292 $ 1,544 Short-term leases 72 73 237 201 Total lease cost $ 449 $ 585 $ 1,529 $ 1,745 Weighted-average remaining lease term (in years) 5.5 Weighted-average discount rate 3.5 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Remainder of 2020 $ 373 2021 1,245 2022 1,095 2023 582 2024 261 Thereafter 1,251 Total lease payments $ 4,807 Less: imputed interest (440 ) Present value of lease liabilities $ 4,367 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Schedule of Dividends Payable [Table Text Block] | Declaration Date Per Share Amount Record Date Payment Date February 10, 2020 $ 0.20 $ 2,285 February 25, 2020 March 6, 2020 May 4, 2020 0.20 2,285 May 19, 2020 May 29, 2020 August 3, 2020 0.20 2,285 August 18, 2020 August 28, 2020 $ 0.60 $ 6,855 |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2019 957,682 $ 7.34 Vested (293,583 ) $ 7.53 Nonvested at September 30, 2020 664,099 $ 7.25 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustment Unrealized Gains (Losses) on Available-For-Sale Investments Total Balance, December 31, 2019 $ (1,245 ) $ (19 ) $ (1,264 ) Other comprehensive income 355 16 371 Balance, September 30, 2020 $ (890 ) $ (3 ) $ (893 ) |
Note 10 - Segment Information (
Note 10 - Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales: Primary Reporting Segment $ 13,294 $ 16,254 $ 42,718 $ 56,979 China 640 525 2,156 2,138 Russia and Kazakhstan 190 244 602 662 Total net sales $ 14,124 $ 17,023 $ 45,476 $ 59,779 Income (loss) from operations: Primary Reporting Segment $ 2,715 $ 2,974 $ 6,038 $ 7,506 China 134 (795 ) 64 (1,530 ) Russia and Kazakhstan (59 ) (82 ) (37 ) (138 ) Total income from operations for reportable segments 2,790 2,097 6,065 5,838 Unallocated corporate expenses (2,122 ) (3,161 ) (6,662 ) (9,615 ) Other income, net 385 323 603 1,128 Income (loss) before income taxes $ 1,053 $ (741 ) $ 6 $ (2,649 ) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Net sales from external customers: United States $ 338 $ 551 $ 1,202 $ 1,607 Canada 132 313 536 808 Peru 357 581 954 1,938 Hong Kong 1 11,132 13,575 36,238 48,465 China 640 525 2,156 2,138 Taiwan 771 649 2,261 2,340 South Korea 52 98 220 288 Russia and Kazakhstan 190 244 602 662 Europe 259 343 747 1,017 Other foreign countries 253 144 560 516 Total net sales $ 14,124 $ 17,023 $ 45,476 $ 59,779 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations, Basis of Presentation and Consolidation (Details Textual) ¥ in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019shares | Sep. 30, 2019shares | Dec. 31, 2019USD ($) | Dec. 31, 2019CNY (¥) | |
Restricted Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 672,231 | 263,289 | ||
CHINA | ||||
Restricted Cash and Cash Equivalents, Total | $ 2.9 | ¥ 20 |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations, Basis of Presentation and Consolidation - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net income (loss) available to common stockholders | $ 635 | $ (1,243) | $ 96 | $ (2,769) |
Basic (in shares) | 10,678 | 10,623 | 10,581 | 11,010 |
Net income available to common stockholders, per share (in dollars per share) | $ 0.06 | $ (0.12) | $ 0.01 | $ (0.25) |
Non-vested restricted stock, shares (in shares) | 746 | 0 | 843 | 0 |
Net income (loss) available to common stockholders plus assumed conversions | $ 635 | $ (1,243) | $ 96 | $ (2,769) |
Net income available to common stockholders plus assumed conversions, shares (in shares) | 11,424 | 10,623 | 11,424 | 11,010 |
Net income available to common stockholders plus assumed conversions, per share (in dollars per share) | $ 0.06 | $ (0.12) | $ 0.01 | $ (0.25) |
Note 2 - Revenue (Details Textu
Note 2 - Revenue (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020USD ($) | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenue from Contract with Customers, Sales Returns, Percent | 1.00% | 2.00% | ||
Contract with Customer, Liability, Revenue Recognized | $ 812,000 | |||
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Number of Major Markets | 0 | 0 | 0 | 0 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||||
Number of Major Customers | 0 | 0 | 0 | 0 |
Minimum [Member] | ||||
Revenue from Contract with Customer, Sales Returns Policy Term (Day) | 14 days | |||
Revenue from Contract with Customers, Historical Sales Returns, Percent | 1.00% | |||
Maximum [Member] | ||||
Revenue from Contract with Customer, Sales Returns Policy Term (Day) | 1 year | |||
Revenue from Contract with Customers, Historical Sales Returns, Percent | 10.00% |
Note 2 - Revenue - Net Sales by
Note 2 - Revenue - Net Sales by Product and Service (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 14,124 | $ 17,023 | $ 45,476 | $ 59,779 |
Less: sales returns | (215) | (177) | (612) | (1,289) |
Product [Member] | ||||
Net sales | 12,023 | 15,732 | 41,234 | 56,355 |
Administrative Fees, Freight and Other [Member] | ||||
Net sales | $ 2,316 | $ 1,468 | $ 4,854 | $ 4,713 |
Note 3 - Balance Sheet Compon_3
Note 3 - Balance Sheet Components - Summary of Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Cash, cash equivalents and restricted cash: | ||||
Cash | $ 22,408 | $ 13,720 | ||
Cash equivalents | 68,381 | 82,315 | ||
Cash and cash equivalents | 90,789 | 96,035 | ||
Restricted cash | 517 | 3,390 | ||
Cash, cash equivalents and restricted cash | 91,306 | 99,425 | $ 103,994 | $ 135,651 |
Inventories: | ||||
Finished goods | 3,844 | 6,142 | ||
Raw materials | 836 | 1,249 | ||
Reserve for obsolescence | (421) | (987) | ||
Inventories | 4,259 | 6,404 | ||
Other accrued expenses: | ||||
Sales returns | 207 | 373 | ||
Employee-related expense | 941 | 1,258 | ||
Warehousing, inventory-related and other | 638 | 756 | ||
Other accrued expenses | 1,786 | 2,387 | ||
Deferred revenue: | ||||
Deferred revenue | 3,477 | 4,506 | ||
Unshipped Product [Member] | ||||
Deferred revenue: | ||||
Deferred revenue | 1,397 | 2,390 | ||
Auto ship advances [Member] | ||||
Deferred revenue: | ||||
Deferred revenue | 1,971 | 1,985 | ||
Product and Service, Other [Member] | ||||
Deferred revenue: | ||||
Deferred revenue | $ 109 | $ 131 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Investments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | |
Adjusted cost | [1] | $ 68,383 | $ 82,334 |
Gross unrealized losses | [1] | (2) | (19) |
Fair value | [1] | 68,381 | 82,315 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Adjusted cost | [1] | 56,547 | 11,659 |
Gross unrealized losses | [1] | 0 | 0 |
Fair value | [1] | 56,547 | 11,659 |
Bank Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Adjusted cost | [1] | 5,000 | 13,544 |
Gross unrealized losses | [1] | 0 | 0 |
Fair value | [1] | 5,000 | 13,544 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Adjusted cost | [1] | 2,104 | 347 |
Gross unrealized losses | [1] | 0 | 0 |
Fair value | [1] | 2,104 | 347 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Adjusted cost | [1] | 4,732 | 56,784 |
Gross unrealized losses | [1] | (2) | (19) |
Fair value | [1] | $ 4,730 | $ 56,765 |
[1] | FASB Topic 820, Fair Value Measurements, establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or unobservable inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) | Jul. 01, 2020 | Sep. 30, 2020USD ($)aft² | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)aft² | Sep. 30, 2019USD ($) |
Operating Lease, Payments | $ | $ 342,000 | $ 459,000 | $ 1,200,000 | $ 1,500,000 | |
HONG KONG | |||||
Area of Land (Acre) | a | 9,600 | 9,600 | |||
Percent of Increase in Monthly Lease Cost Savings | 10.00% | ||||
Rolling Hills Estates [Member] | |||||
Area of Land (Acre) | 4,900 | 4,900 | |||
Lessee, Operating Lease, Renewal Term (Year) | 5 years | 5 years | |||
Richmond, British Columbia [Member] | |||||
Area of Land (Acre) | 1,600 | 1,600 | |||
Metuchen, New Jersey [Member] | |||||
Area of Land (Acre) | 2,000 | 2,000 | |||
CHINA | |||||
Lessee, Number of Branches | 8 | 8 |
Note 5 - Leases - Lease Cost (D
Note 5 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Operating leases | $ 377 | $ 512 | $ 1,292 | $ 1,544 |
Short-term leases | 72 | 73 | 237 | 201 |
Total lease cost | $ 449 | $ 585 | $ 1,529 | $ 1,745 |
Weighted-average remaining lease term (in years) (Year) | 5 years 6 months | 5 years 6 months | ||
Weighted-average discount rate | 3.50% | 3.50% |
Note 5 - Leases - Maturity of L
Note 5 - Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Remainder of 2020 | $ 373 |
2021 | 1,245 |
2022 | 1,095 |
2023 | 582 |
2024 | 261 |
Thereafter | 1,251 |
Total lease payments | 4,807 |
Less: imputed interest | (440) |
Present value of lease liabilities | $ 4,367 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) $ in Thousands | Sep. 30, 2020USD ($) |
Deferred Tax Assets, Valuation Allowance, Total | $ 0 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards, Total | 3,600 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards, Subject to Expiration | 2,400 |
Foreign Tax Authority [Member] | |
Operating Loss Carryforwards, Subject to Expiration | $ 2,900 |
Note 8 - Stockholders' Equity_2
Note 8 - Stockholders' Equity (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | ||||||
May 31, 2019 | Sep. 30, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Sep. 30, 2020 | Mar. 20, 2020 | May 16, 2019 | Jan. 12, 2016 | Jul. 28, 2015 | |
Stock Repurchase Program, Authorized Amount | $ 70,000 | $ 15,000 | |||||||
Treasury Stock, Shares, Acquired (in shares) | 612,729 | 383,127 | |||||||
Treasury Stock, Value, Acquired, Cost Method | $ 6,700 | $ 2,900 | $ 2,882 | $ 6,682 | |||||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 21,900 | ||||||||
Equity Incentive Plan 2016 [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized (in shares) | 2,500,000 | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant (in shares) | 1,219,583 | ||||||||
Director [Member] | |||||||||
Common Stock, Percentage of Beneficial Stock Outstanding | 5.00% | 5.00% | |||||||
Broady Trust [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 8,000 | ||||||||
Open Market Purchases [Member] | |||||||||
Stock Repurchase Program, Authorized Amount | $ 4,700 |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Dividend Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Dividends per share (in dollars per share) | $ 0.60 | |
Dividends | $ 6,855 | $ 2,736 |
Dividends Declared February 10, 2020 [Member] | ||
Dividends per share (in dollars per share) | $ 0.20 | |
Dividends | $ 2,285 | |
Dividends Declared May 4, 2020 [Member] | ||
Dividends per share (in dollars per share) | $ 0.20 | |
Dividends | $ 2,285 | |
Dividends Declared August 3, 2020 [Member] | ||
Dividends per share (in dollars per share) | $ 0.20 | |
Dividends | $ 2,285 |
Note 8 - Stockholders' Equity_3
Note 8 - Stockholders' Equity - Restricted Stock Activity (Details) - Restricted Stock [Member] | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Nonvested at December 31, 2019 (in shares) | shares | 957,682 |
Nonvested at December 31, 2019, wtd. avg. price (in dollars per share) | $ / shares | $ 7.34 |
Vested (in shares) | shares | (293,583) |
Vested, wtd. avg. price (in dollars per share) | $ / shares | $ 7.53 |
Nonvested at September 30, 2020 (in shares) | shares | 664,099 |
Nonvested at June 30, 2020, wtd. avg. price (in dollars per share) | $ / shares | $ 7.25 |
Note 8 - Stockholders' Equity_4
Note 8 - Stockholders' Equity - Changes in Accumulated Other Comprehensive Loss (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Balance, December 31, 2019 | $ 75,064 |
Balance, September 30, 2020 | 68,676 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance, December 31, 2019 | (1,245) |
Other comprehensive income | 355 |
Balance, September 30, 2020 | (890) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |
Balance, December 31, 2019 | (19) |
Other comprehensive income | 16 |
Balance, September 30, 2020 | (3) |
AOCI Attributable to Parent [Member] | |
Balance, December 31, 2019 | (1,264) |
Other comprehensive income | 371 |
Balance, September 30, 2020 | $ (893) |
Note 9 - Related Party Transa_2
Note 9 - Related Party Transactions (Details Textual) | Mar. 20, 2020 | May 17, 2019USD ($)shares | May 31, 2019USD ($)shares | Sep. 30, 2019USD ($)shares | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | May 16, 2019 |
Treasury Stock, Shares, Acquired (in shares) | shares | 612,729 | 383,127 | |||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 6,700,000 | $ 2,900,000 | $ 2,882,000 | $ 6,682,000 | |||||||
Aberdeen [Member] | Unrelated Third Party [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 20.00% | 20.00% | |||||||||
Broady Trust [Member] | |||||||||||
Stock Repurchase Program, Ratio of Number of Shares Authorized to be Repurchased in Private Transaction | 0.4105 | ||||||||||
Treasury Stock, Shares, Acquired (in shares) | shares | 178,324 | ||||||||||
Treasury Stock, Value, Acquired, Cost Method | $ 1,900,000 | ||||||||||
Director [Member] | |||||||||||
Common Stock, Percentage of Beneficial Stock Outstanding | 5.00% | 5.00% | |||||||||
Director [Member] | Aberdeen [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 40.00% | 40.00% | |||||||||
BHS [Member] | Royalty Agreement and License [Member] | |||||||||||
Royalty Expense | $ 14,000 | $ 19,000 | $ 64,000 | $ 75,000 | |||||||
Related Party Transaction, Additional Extension Period of Agreement (Year) | 5 years | ||||||||||
Related Party Transaction, Automatic Renewal Period of Agreement (Year) | 1 year | ||||||||||
Number of Days Termination Notice (Day) | 90 days | ||||||||||
Aberdeen [Member] | |||||||||||
Related Party Transaction, Other Revenues from Transactions with Related Party | $ 420 | ||||||||||
Aberdeen [Member] | Shipment of Apparel Products [Member] | |||||||||||
Number of Product Orders | 1 | ||||||||||
Related Party Transaction, Amounts of Transaction | $ 7,100 | ||||||||||
Sharng Holdings [Member] | Aberdeen [Member] | |||||||||||
Noncontrolling Interest, Ownership Percentage by Parent | 40.00% | 40.00% |
Note 10 - Segment Information_2
Note 10 - Segment Information (Details Textual) | 9 Months Ended |
Sep. 30, 2020 | |
Number of Reportable Segments | 1 |
Note 10 - Segment Information -
Note 10 - Segment Information - Operating Information by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net sales | $ 14,124 | $ 17,023 | $ 45,476 | $ 59,779 |
Income (loss) from operations | 668 | (1,064) | (597) | (3,777) |
Other income, net | 385 | 323 | 603 | 1,128 |
Income (loss) before income taxes | 1,053 | (741) | 6 | (2,649) |
Operating Segments [Member] | ||||
Income (loss) from operations | 2,790 | 2,097 | 6,065 | 5,838 |
Intersegment Eliminations [Member] | ||||
Income (loss) from operations | (2,122) | (3,161) | (6,662) | (9,615) |
CHINA | ||||
Net sales | 640 | 525 | 2,156 | 2,138 |
CHINA | Operating Segments [Member] | ||||
Income (loss) from operations | 134 | (795) | 64 | (1,530) |
Russia and Kazakhstan [Member] | ||||
Net sales | 190 | 244 | 602 | 662 |
Russia and Kazakhstan [Member] | Operating Segments [Member] | ||||
Income (loss) from operations | (59) | (82) | (37) | (138) |
Primary Reporting Segment [Member] | ||||
Net sales | 13,294 | 16,254 | 42,718 | 56,979 |
Primary Reporting Segment [Member] | Operating Segments [Member] | ||||
Income (loss) from operations | $ 2,715 | $ 2,974 | $ 6,038 | $ 7,506 |
Note 10 - Segment Information_3
Note 10 - Segment Information - Net Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Net sales | $ 14,124 | $ 17,023 | $ 45,476 | $ 59,779 | |
UNITED STATES | |||||
Net sales | 338 | 551 | 1,202 | 1,607 | |
CANADA | |||||
Net sales | 132 | 313 | 536 | 808 | |
PERU | |||||
Net sales | 357 | 581 | 954 | 1,938 | |
HONG KONG | |||||
Net sales | [1] | 11,132 | 13,575 | 36,238 | 48,465 |
CHINA | |||||
Net sales | 640 | 525 | 2,156 | 2,138 | |
TAIWAN, PROVINCE OF CHINA | |||||
Net sales | 771 | 649 | 2,261 | 2,340 | |
KOREA, REPUBLIC OF | |||||
Net sales | 52 | 98 | 220 | 288 | |
Russia and Kazakhstan [Member] | |||||
Net sales | 190 | 244 | 602 | 662 | |
Europe [Member] | |||||
Net sales | 259 | 343 | 747 | 1,017 | |
Other Foreign Countries [Member] | |||||
Net sales | $ 253 | $ 144 | $ 560 | $ 516 | |
[1] | Substantially all of our Hong Kong revenues are derived from the sale of products that are delivered to members in China. See "Item 1A. Risk Factors" in this report and in our most recent Annual Report on Form 10-K. |
Note 11 - Subsequent Events (De
Note 11 - Subsequent Events (Details Textual) - $ / shares | Nov. 02, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.24 | |
Subsequent Event [Member] | |||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.20 |