Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
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 | Q1 | |
Document Fiscal Year Focus | 2021 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2021 | |
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, Tsimshatsui | |
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 | Mar. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 90,214 | $ 92,367 |
Inventories | 3,627 | 3,779 |
Other current assets | 3,393 | 3,595 |
Total current assets | 97,234 | 99,741 |
Property and equipment, net | 521 | 539 |
Operating lease right-of-use assets | 3,839 | 3,745 |
Restricted cash | 522 | 525 |
Deferred tax asset | 721 | 731 |
Other assets | 648 | 661 |
Total assets | 103,485 | 105,942 |
Current liabilities: | ||
Accounts payable | 756 | 580 |
Income taxes payable | 1,547 | 1,481 |
Accrued commissions | 3,116 | 3,496 |
Other accrued expenses | 1,670 | 1,922 |
Deferred revenue | 4,169 | 3,091 |
Amounts held in eWallets | 7,754 | 8,503 |
Operating lease liabilities | 1,252 | 1,163 |
Other current liabilities | 1,125 | 1,270 |
Total current liabilities | 21,389 | 21,506 |
Income taxes payable | 13,748 | 13,748 |
Deferred tax liability | 216 | 216 |
Operating lease liabilities | 2,756 | 2,775 |
Total liabilities | 38,109 | 38,245 |
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 March 31, 2021 and December 31, 2020 | 13 | 13 |
Additional paid-in capital | 86,102 | 86,102 |
Retained earnings | 5,690 | 7,822 |
Accumulated other comprehensive loss | (525) | (336) |
Treasury stock, at cost; 1,556,875 shares at March 31, 2021 and December 31, 2020 | (25,904) | (25,904) |
Total stockholders’ equity | 65,376 | 67,697 |
Total liabilities and stockholders’ equity | $ 103,485 | $ 105,942 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares | Mar. 31, 2021 | Dec. 31, 2020 |
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 | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 13,469 | $ 14,948 |
Cost of sales | 3,255 | 4,514 |
Gross profit | 10,214 | 10,434 |
Operating expenses: | ||
Commissions expense | 5,514 | 6,603 |
Selling, general and administrative expenses | 4,480 | 5,279 |
Total operating expenses | 9,994 | 11,882 |
Income (loss) from operations | 220 | (1,448) |
Other income, net | 20 | 93 |
Income (loss) before income taxes | 240 | (1,355) |
Income tax provision (benefit) | 87 | (782) |
Net income (loss) | $ 153 | $ (573) |
Net income (loss) per common share: | ||
Basic (in dollars per share) | $ 0.01 | $ (0.05) |
Diluted (in dollars per share) | $ 0.01 | $ (0.05) |
Weighted average common shares outstanding: | ||
Basic (in shares) | 10,874 | 10,483 |
Diluted (in shares) | 11,424 | 10,483 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income Loss (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income (loss) | $ 153 | $ (573) |
Other comprehensive loss, net of tax: | ||
Foreign currency translation adjustment | (182) | (222) |
Unrealized losses on available-for-sale securities | (7) | (87) |
Comprehensive loss | $ (36) | $ (882) |
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, 2019 | 0 | 12,979,414 | (1,556,875) | ||||
Balance 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 adjustments | 0 | 0 | 0 | 0 | (222) | 0 | (222) |
Unrealized 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 at Mar. 31, 2020 | $ 0 | $ 13 | 86,102 | 13,259 | (1,573) | $ (25,904) | 71,897 |
BALANCE (in shares) at Dec. 31, 2020 | 0 | 12,979,414 | (1,556,875) | ||||
Balance at Dec. 31, 2020 | $ 0 | $ 13 | 86,102 | 7,822 | (336) | $ (25,904) | 67,697 |
Net income (loss) | 0 | 0 | 0 | 153 | 0 | 0 | 153 |
Dividends declared | 0 | 0 | 0 | (2,285) | 0 | 0 | (2,285) |
Foreign currency translation adjustments | 0 | 0 | 0 | 0 | (182) | 0 | (182) |
Unrealized losses on available-for-sale securities | $ 0 | $ 0 | 0 | 0 | (7) | $ 0 | (7) |
BALANCE (in shares) at Mar. 31, 2021 | 0 | 12,979,414 | (1,556,875) | ||||
Balance at Mar. 31, 2021 | $ 0 | $ 13 | $ 86,102 | $ 5,690 | $ (525) | $ (25,904) | $ 65,376 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Unaudited) (Parentheticals) - $ / shares | Feb. 08, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Dividends declared, per share (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 153 | $ (573) |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 79 | 95 |
Noncash lease expense | 294 | 418 |
Deferred income taxes | 9 | 869 |
Changes in assets and liabilities: | ||
Inventories | 123 | 1,001 |
Other current assets | 195 | (1,033) |
Other assets | 2 | 52 |
Accounts payable | 176 | 168 |
Income taxes payable | 67 | (164) |
Accrued commissions | (344) | (528) |
Other accrued expenses | (245) | (398) |
Deferred revenue | 1,093 | (521) |
Amounts held in eWallets | (727) | (175) |
Operating lease liabilities | (322) | (440) |
Other current liabilities | (139) | 239 |
Net cash provided by (used in) operating activities | 414 | (990) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (63) | (12) |
Net cash used in investing activities | (63) | (12) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Dividends paid | (2,285) | (2,285) |
Net cash used in financing activities | (2,285) | (2,285) |
Effect of exchange rates on cash, cash equivalents and restricted cash | (222) | (240) |
Net decrease in cash, cash equivalents and restricted cash | (2,156) | (3,527) |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 92,892 | 99,425 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | 90,736 | 95,898 |
SUPPLEMENTAL DISCLOSURES OF OTHER CASH FLOW INFORMATION: | ||
Right-of-use assets obtained in exchange for operating lease liabilities | $ 400 | $ 194 |
Note 1 - Nature of Operations,
Note 1 - Nature of Operations, Basis of Presentation and Consolidation | 3 Months Ended |
Mar. 31, 2021 | |
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 2020 10 February 26, 2021. 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. Reclassification Certain income taxes payable balances have been reclassified in the prior year consolidated statement of cash flows to conform to current year presentation. 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 table illustrates 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 March 31, 2021 2020 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 $ 153 10,874 $ 0.01 $ (573 ) 10,483 $ (0.05 ) Effect of dilutive securities: Non-vested restricted stock — 550 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 153 11,424 $ 0.01 $ (573 ) 10,483 $ (0.05 ) 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 940,476 shares were not three March 31, 2020. 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, Other recently issued accounting pronouncements did not not |
Note 2 - Revenue
Note 2 - Revenue | 3 Months Ended |
Mar. 31, 2021 | |
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 three March 31, 2021 2020 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 December 31, 2020 March 31, 2021 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 11 The Company’s net sales by product and service are as follows (in thousands): Three Months Ended March 31, 2021 2020 Product sales $ 12,031 $ 14,011 Administrative fees, freight and other 1,554 1,084 Less: sales returns (116 ) (147 ) Total net sales $ 13,469 $ 14,948 During June 2020, three March 31, 2021 Concentration No single market other than Hong Kong had net sales greater than 10% 10% three March 31, 2021 2020 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 | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Supplemental Balance Sheet Disclosures [Text Block] | 3. The components of certain balance sheet amounts are as follows (in thousands): March 31, 2021 December 31, 2020 Cash, cash equivalents and restricted cash: Cash $ 23,993 $ 23,977 Cash equivalents 66,221 68,390 90,214 92,367 Restricted cash 522 525 $ 90,736 $ 92,892 Inventories: Finished goods $ 3,275 $ 3,071 Raw materials 635 1,047 Reserve for obsolescence (283 ) (339 ) $ 3,627 $ 3,779 Other accrued expenses: Sales returns $ 182 $ 189 Employee-related expense 879 1,149 Warehousing, inventory-related and other 609 584 $ 1,670 $ 1,922 Deferred revenue: Unshipped product and unredeemed product vouchers $ 2,117 $ 1,005 Auto ship advances 1,946 1,977 Other 106 109 $ 4,169 $ 3,091 |
Note 4 - Fair Value Measurement
Note 4 - Fair Value Measurements | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | 4. As of March 31, 2021 three 320, Investments - Debt and Equity Securities March 31, 2021 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): March 31, 2021 December 31, 2020 Fair Value Level 1 Adjusted Cost Gross Unrealized Losses Fair Value Adjusted Cost Gross Unrealized Losses Fair Value Money market funds Level 1 $ 22,553 $ — $ 22,553 $ 21,042 $ — $ 21,042 Time deposits Level 2 5,000 — 5,000 5,458 — 5,458 Government and municipal debt securities Level 2 18,455 (7 ) 18,448 30,280 (5 ) 30,275 Corporate debt securities Level 2 20,231 (11 ) 20,220 11,621 (6 ) 11,615 Total investments $ 66,239 $ (18 ) $ 66,221 $ 68,401 $ (11 ) $ 68,390 1 FASB Topic 820, Level 1: Level 2: Level 3: not |
Note 5 - Leases
Note 5 - Leases | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Lessee, Operating Leases [Text Block] | 5 . LEASES The Company leases 7,300 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 2024, November 2022, The Company leases eight third None third not The components of lease cost for the three March 31, 2021 2020 Three Months Ended March 31, 2021 2020 Operating leases $ 318 $ 469 Short-term leases 48 83 Total lease cost $ 366 $ 552 Cash paid for amounts included in the measurement of operating leases liabilities was $358,000 and $479,000 for the three March 31, 2021 2020 The weighted-average remaining lease term and discount rate related to operating leases as of March 31, 2021 Weighted-average remaining lease term (in years) 5.3 Weighted-average discount rate 3.3 % As most of our leases do not The annual scheduled lease payments of our operating lease liabilities as of March 31, 2021 Remainder of 2021 $ 958 2022 1,242 2023 676 2024 272 2025 261 Thereafter 990 Total lease payments $ 4,399 Less: imputed interest (391 ) Present value of lease liabilities $ 4,008 For all asset classes, the Company elected not 12 not |
Note 6 - Income Taxes
Note 6 - Income Taxes | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | 6 . INCOME TAXES The effective income tax rate for the three March 31, 2021 March 31, 2021 not not March 31, 2021 not As of March 31, 2021 no August 2020 December 31, 2019 December 31, 2016. 2039. March 31, 2021 As a result of capital return activities, the Company determined that a portion of its current undistributed foreign earnings is no not March 31, 2021 not March 31, 2021 2017, no 50% March 31, 2021 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 2019 No no 2015. No |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | 7 . COMMITMENTS AND CONTINGENCIES 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 - Stock-based Incentive
Note 8 - Stock-based Incentive Plans | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Share-based Payment Arrangement [Text Block] | 8. Restricted Stock At the Company’s annual meeting of stockholders held on April 7, 2016, 2016 “2016 2007 2016 may March 31, 2021 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, 2020 566,272 $ 7.21 Vested (95,008 ) $ 7.27 Nonvested at March 31, 2021 471,264 $ 7.19 Phantom Equity On March 15, 2021, may may may not ten no may 10 Also on March 15, 2021, eight three March 15, 2021 June 15, 2021 April 14, 2021, fifteenth not The phantom share awards are accounted for as liabilities in accordance with FASB Accounting Standards Codification (“ASC”) Topic 718, Compensation Stock Compensation Awards totaling 27,913 phantom shares vested on March 15, 2021, three March 31, 2021 |
Note 9 - Stockholders' Equity
Note 9 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | 9. Dividends On February 8, 2021, March 5, 2021 February 23, 2021. Stock Repurchases On January 12, 2016, first July 28, 2015 10b 18 may one 10b5 1 not may March 31, 2021 $70.0 Accumulated Other Comprehensive Loss The changes in accumulated other comprehensive loss by component for the three 2021 Foreign Currency Translation Adjustment Unrealized Losses on Available-For-Sale Investments Total Balance, December 31, 2020 $ (325 ) $ (11 ) $ (336 ) Other comprehensive loss (182 ) (7 ) (189 ) Balance, March 31, 2021 $ (507 ) $ (18 ) $ (525 ) |
Note 10 - Related Party Transac
Note 10 - Related Party Transactions | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | 10. 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 an indirect 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. The Company recognized royalties of $8,000 and $15,000 during the three March 31, 2021 2020 not may no March 31, 2025, one |
Note 11 - Segment Information
Note 11 - Segment Information | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | 11. 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 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 March 31, 2021 2020 Net sales: Primary Reporting Segment $ 12,770 $ 14,008 China 508 698 Russia and Kazakhstan 191 242 Total net sales $ 13,469 $ 14,948 Income (loss) from operations: Primary Reporting Segment $ 2,699 $ 1,315 China (7 ) (83 ) Russia and Kazakhstan (48 ) (82 ) Total income (loss) from operations for reportable segments 2,644 1,150 Unallocated corporate expenses (2,424 ) (2,598 ) Other income, net 20 93 Income (loss) before income taxes $ 240 $ (1,355 ) The Company’s net sales by geographic area are as follows (in thousands): Three Months Ended March 31, 2021 2020 Net sales from external customers: United States $ 311 $ 491 Canada 171 261 Peru 516 360 Hong Kong 1 10,322 11,413 China 508 698 Taiwan 691 940 South Korea 68 127 Russia and Kazakhstan 191 242 Europe 350 233 Other foreign countries 341 183 Total net sales $ 13,469 $ 14,948 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 12 - Subsequent Event
Note 12 - Subsequent Event | 3 Months Ended |
Mar. 31, 2021 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | 12. On May 3, 2021, May 28, 2021 May 18, 2021. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
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 2020 10 February 26, 2021. |
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. |
Reclassification, Comparability Adjustment [Policy Text Block] | Reclassification Certain income taxes payable balances have been reclassified in the prior year consolidated statement of cash flows to conform to current year presentation. |
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 table illustrates 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 March 31, 2021 2020 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 $ 153 10,874 $ 0.01 $ (573 ) 10,483 $ (0.05 ) Effect of dilutive securities: Non-vested restricted stock — 550 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 153 11,424 $ 0.01 $ (573 ) 10,483 $ (0.05 ) 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 940,476 shares were not three March 31, 2020. |
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, 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) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three Months Ended March 31, 2021 2020 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 $ 153 10,874 $ 0.01 $ (573 ) 10,483 $ (0.05 ) Effect of dilutive securities: Non-vested restricted stock — 550 — — Diluted net income (loss) per common share: Net income (loss) available to common stockholders plus assumed conversions $ 153 11,424 $ 0.01 $ (573 ) 10,483 $ (0.05 ) |
Note 2 - Revenue (Tables)
Note 2 - Revenue (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Revenue from External Customers by Products and Services [Table Text Block] | Three Months Ended March 31, 2021 2020 Product sales $ 12,031 $ 14,011 Administrative fees, freight and other 1,554 1,084 Less: sales returns (116 ) (147 ) Total net sales $ 13,469 $ 14,948 |
Note 3 - Balance Sheet Compon_2
Note 3 - Balance Sheet Components (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Additional Balance Sheet Components [Table Text Block] | March 31, 2021 December 31, 2020 Cash, cash equivalents and restricted cash: Cash $ 23,993 $ 23,977 Cash equivalents 66,221 68,390 90,214 92,367 Restricted cash 522 525 $ 90,736 $ 92,892 Inventories: Finished goods $ 3,275 $ 3,071 Raw materials 635 1,047 Reserve for obsolescence (283 ) (339 ) $ 3,627 $ 3,779 Other accrued expenses: Sales returns $ 182 $ 189 Employee-related expense 879 1,149 Warehousing, inventory-related and other 609 584 $ 1,670 $ 1,922 Deferred revenue: Unshipped product and unredeemed product vouchers $ 2,117 $ 1,005 Auto ship advances 1,946 1,977 Other 106 109 $ 4,169 $ 3,091 |
Note 4 - Fair Value Measureme_2
Note 4 - Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Available-for-sale Securities [Table Text Block] | March 31, 2021 December 31, 2020 Fair Value Level 1 Adjusted Cost Gross Unrealized Losses Fair Value Adjusted Cost Gross Unrealized Losses Fair Value Money market funds Level 1 $ 22,553 $ — $ 22,553 $ 21,042 $ — $ 21,042 Time deposits Level 2 5,000 — 5,000 5,458 — 5,458 Government and municipal debt securities Level 2 18,455 (7 ) 18,448 30,280 (5 ) 30,275 Corporate debt securities Level 2 20,231 (11 ) 20,220 11,621 (6 ) 11,615 Total investments $ 66,239 $ (18 ) $ 66,221 $ 68,401 $ (11 ) $ 68,390 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Lease, Cost [Table Text Block] | Three Months Ended March 31, 2021 2020 Operating leases $ 318 $ 469 Short-term leases 48 83 Total lease cost $ 366 $ 552 Weighted-average remaining lease term (in years) 5.3 Weighted-average discount rate 3.3 % |
Lessee, Operating Lease, Liability, Maturity [Table Text Block] | Remainder of 2021 $ 958 2022 1,242 2023 676 2024 272 2025 261 Thereafter 990 Total lease payments $ 4,399 Less: imputed interest (391 ) Present value of lease liabilities $ 4,008 |
Note 8 - Stock-based Incentiv_2
Note 8 - Stock-based Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Nonvested Restricted Stock Shares Activity [Table Text Block] | Shares Wtd. Avg. Price at Date of Issuance Nonvested at December 31, 2020 566,272 $ 7.21 Vested (95,008 ) $ 7.27 Nonvested at March 31, 2021 471,264 $ 7.19 |
Note 9 - Stockholders' Equity (
Note 9 - Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | Foreign Currency Translation Adjustment Unrealized Losses on Available-For-Sale Investments Total Balance, December 31, 2020 $ (325 ) $ (11 ) $ (336 ) Other comprehensive loss (182 ) (7 ) (189 ) Balance, March 31, 2021 $ (507 ) $ (18 ) $ (525 ) |
Note 11 - Segment Information (
Note 11 - Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Notes Tables | |
Reconciliation of Operating Profit (Loss) from Segments to Consolidated [Table Text Block] | Three Months Ended March 31, 2021 2020 Net sales: Primary Reporting Segment $ 12,770 $ 14,008 China 508 698 Russia and Kazakhstan 191 242 Total net sales $ 13,469 $ 14,948 Income (loss) from operations: Primary Reporting Segment $ 2,699 $ 1,315 China (7 ) (83 ) Russia and Kazakhstan (48 ) (82 ) Total income (loss) from operations for reportable segments 2,644 1,150 Unallocated corporate expenses (2,424 ) (2,598 ) Other income, net 20 93 Income (loss) before income taxes $ 240 $ (1,355 ) |
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | Three Months Ended March 31, 2021 2020 Net sales from external customers: United States $ 311 $ 491 Canada 171 261 Peru 516 360 Hong Kong 1 10,322 11,413 China 508 698 Taiwan 691 940 South Korea 68 127 Russia and Kazakhstan 191 242 Europe 350 233 Other foreign countries 341 183 Total net sales $ 13,469 $ 14,948 |
Note 1 - Nature of Operations_3
Note 1 - Nature of Operations, Basis of Presentation and Consolidation (Details Textual) | 3 Months Ended |
Mar. 31, 2020shares | |
Restricted Stock [Member] | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 940,476 |
Note 1 - Nature of Operations_4
Note 1 - Nature of Operations, Basis of Presentation and Consolidation - Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net income (loss) available to common stockholders | $ 153 | $ (573) |
Basic (in shares) | 10,874 | 10,483 |
Basic (in dollars per share) | $ 0.01 | $ (0.05) |
Non-vested restricted stock | $ 0 | $ 0 |
Non-vested restricted stock (in shares) | 550 | 0 |
Net income (loss) available to common stockholders plus assumed conversions | $ 153 | $ (573) |
Diluted (in shares) | 11,424 | 10,483 |
Diluted (in dollars per share) | $ 0.01 | $ (0.05) |
Note 2 - Revenue (Details Textu
Note 2 - Revenue (Details Textual) $ in Millions | 3 Months Ended | |
Mar. 31, 2021USD ($) | Mar. 31, 2020 | |
Revenue from Contract with Customers, Sales Returns, Percent | 1.00% | 2.00% |
Contract with Customer, Liability, Revenue Recognized | $ 1.1 | |
Geographic Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Major Markets | 0 | 0 |
Customer Concentration Risk [Member] | Revenue Benchmark [Member] | ||
Number of Major Customers | 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 | 5.00% |
Note 2 - Revenue - Net Sales by
Note 2 - Revenue - Net Sales by Product and Service (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 13,469 | $ 14,948 |
Less: sales returns | (116) | (147) |
Product [Member] | ||
Net sales | 12,031 | 14,011 |
Administrative Fees, Freight and Other [Member] | ||
Net sales | $ 1,554 | $ 1,084 |
Note 3 - Balance Sheet Compon_3
Note 3 - Balance Sheet Components - Summary of Balance Sheet Amounts (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Cash | $ 23,993 | $ 23,977 |
Cash equivalents | 66,221 | 68,390 |
Cash and cash equivalents | 90,214 | 92,367 |
Restricted cash | 522 | 525 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Ending Balance | 90,736 | 92,892 |
Inventories: | ||
Finished goods | 3,275 | 3,071 |
Raw materials | 635 | 1,047 |
Reserve for obsolescence | (283) | (339) |
Inventory, Net, Total | 3,627 | 3,779 |
Other accrued expenses: | ||
Sales returns | 182 | 189 |
Employee-related expense | 879 | 1,149 |
Warehousing, inventory-related and other | 609 | 584 |
Accrued Liabilities, Current, Total | 1,670 | 1,922 |
Deferred revenue: | ||
Deferred revenue | 4,169 | 3,091 |
Unshipped Product [Member] | ||
Deferred revenue: | ||
Deferred revenue | 2,117 | 1,005 |
Auto ship advances [Member] | ||
Deferred revenue: | ||
Deferred revenue | 1,946 | 1,977 |
Product and Service, Other [Member] | ||
Deferred revenue: | ||
Deferred revenue | $ 106 | $ 109 |
Note 4 - Fair Value Measureme_3
Note 4 - Fair Value Measurements - Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Mar. 31, 2020 | |
Adjusted cost | [1] | $ 66,239 | $ 68,401 |
Gross unrealized losses | [1] | (18) | (11) |
Fair value | [1] | 66,221 | 68,390 |
Money Market Funds [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Adjusted cost | [1] | 22,553 | 21,042 |
Gross unrealized losses | [1] | 0 | 0 |
Fair value | [1] | 22,553 | 21,042 |
Bank Time Deposits [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Adjusted cost | [1] | 5,000 | 5,458 |
Gross unrealized losses | [1] | 0 | 0 |
Fair value | [1] | 5,000 | 5,458 |
Municipal Bonds [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Adjusted cost | [1] | 18,455 | 30,280 |
Gross unrealized losses | [1] | (7) | (5) |
Fair value | [1] | 18,448 | 30,275 |
Corporate Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Adjusted cost | [1] | 20,231 | 11,621 |
Gross unrealized losses | [1] | (11) | (6) |
Fair value | [1] | $ 20,220 | $ 11,615 |
[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) | 3 Months Ended | ||
Mar. 31, 2021USD ($)ft² | Mar. 31, 2020USD ($) | Jun. 30, 2020 | |
Operating Lease, Payments | $ | $ 358,000 | $ 479,000 | |
HONG KONG | |||
Area of Land (Square Foot) | 7,300 | ||
Rolling Hills Estates [Member] | |||
Area of Land (Square Foot) | 4,900 | ||
Lessee, Operating Lease, Renewal Term (Year) | 5 years | ||
Richmond, British Columbia [Member] | |||
Area of Land (Square Foot) | 1,600 | ||
Metuchen, New Jersey [Member] | |||
Area of Land (Square Foot) | 2,000 | ||
CHINA | |||
Lessee, Number of Branches | 8 |
Note 5 - Leases - Lease Cost (D
Note 5 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Operating leases | $ 318 | $ 469 |
Short-term leases | 48 | 83 |
Total lease cost | $ 366 | $ 552 |
Weighted-average remaining lease term (in years) (Year) | 5 years 3 months 18 days | |
Weighted-average discount rate | 3.30% |
Note 5 - Leases - Maturity of L
Note 5 - Leases - Maturity of Lease Liabilities (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Remainder of 2021 | $ 958 |
2022 | 1,242 |
2023 | 676 |
2024 | 272 |
2025 | 261 |
Thereafter | 990 |
Total lease payments | 4,399 |
Less: imputed interest | (391) |
Present value of lease liabilities | $ 4,008 |
Note 6 - Income Taxes (Details
Note 6 - Income Taxes (Details Textual) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Deferred Tax Assets, Valuation Allowance, Total | $ 0 |
Internal Revenue Service (IRS) [Member] | |
Open Tax Year | 2007 |
Domestic Tax Authority [Member] | |
Operating Loss Carryforwards, Total | $ 3,600 |
State and Local Jurisdiction [Member] | |
Operating Loss Carryforwards, Subject to Expiration | 3,500 |
Foreign Tax Authority [Member] | |
Operating Loss Carryforwards, Subject to Expiration | $ 2,800 |
Note 8 - Stock-based Incentiv_3
Note 8 - Stock-based Incentive Plans (Details Textual) - USD ($) | Mar. 15, 2021 | Mar. 31, 2021 |
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 | |
The Phantom Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Expiration Period (Year) | 10 years | |
The Phantom Plan [Member] | Phantom Shares [Member] | Employees and Non-Employee Directors [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period (in shares) | 223,307 | |
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period (Month) | 3 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period (in shares) | 27,913 | |
Share-based Payment Arrangement, Expense | $ 188,000 | |
The Phantom Plan [Member] | Phantom Shares [Member] | Employees and Non-Employee Directors [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Maximum Payment Per Share (in dollars per share) | $ 12 |
Note 8 - Stock-based Incentiv_4
Note 8 - Stock-based Incentive Plans - Restricted Stock Activity (Details) - Restricted Stock [Member] | 3 Months Ended |
Mar. 31, 2021$ / sharesshares | |
Balance (in shares) | shares | 566,272 |
Balance, weighted avg. price (in dollars per share) | $ / shares | $ 7.21 |
Vested (in shares) | shares | (95,008) |
Vested, wtd. avg. price (in dollars per share) | $ / shares | $ 7.27 |
Balance (in shares) | shares | 471,264 |
Balance, weighted avg. price (in dollars per share) | $ / shares | $ 7.19 |
Note 9 - Stockholders' Equity_2
Note 9 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Feb. 08, 2021 | Mar. 31, 2021 | Mar. 31, 2020 | Jan. 12, 2016 | Jul. 28, 2015 |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | ||
Stock Repurchase Program, Authorized Amount | $ 70 | $ 15 | |||
Stock Repurchase Program, Remaining Authorized Repurchase Amount | $ 21.9 |
Note 9 - Stockholders' Equity -
Note 9 - Stockholders' Equity - Changes in Accumulated Other Comprehensive Loss (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Balance | $ 67,697 |
Balance | 65,376 |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | |
Balance | (325) |
Other comprehensive loss | (182) |
Balance | (507) |
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member] | |
Balance | (11) |
Other comprehensive loss | (7) |
Balance | (18) |
AOCI Attributable to Parent [Member] | |
Balance | (336) |
Other comprehensive loss | (189) |
Balance | $ (525) |
Note 10 - Related Party Trans_2
Note 10 - Related Party Transactions (Details Textual) - USD ($) | Mar. 20, 2020 | Mar. 31, 2021 | Mar. 31, 2020 |
Director [Member] | |||
Common Stock, Percentage of Beneficial Stock Outstanding | 5.00% | ||
BHS [Member] | Royalty Agreement and License [Member] | |||
Royalty Expense | $ 8,000 | $ 15,000 | |
Related Party Transaction, Automatic Renewal Period of Agreement (Year) | 1 year | ||
Number of Days Termination Notice (Day) | 90 days |
Note 11 - Segment Information -
Note 11 - Segment Information - Operating Information by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Net sales | $ 13,469 | $ 14,948 |
Income (loss) from operations | 220 | (1,448) |
Other income, net | 20 | 93 |
Income (loss) before income taxes | 240 | (1,355) |
Operating Segments [Member] | ||
Income (loss) from operations | 2,644 | 1,150 |
Intersegment Eliminations [Member] | ||
Income (loss) from operations | (2,424) | (2,598) |
CHINA | ||
Net sales | 508 | 698 |
CHINA | Operating Segments [Member] | ||
Income (loss) from operations | (7) | (83) |
Russia and Kazakhstan [Member] | ||
Net sales | 191 | 242 |
Russia and Kazakhstan [Member] | Operating Segments [Member] | ||
Income (loss) from operations | (48) | (82) |
Primary Reporting Segment [Member] | ||
Net sales | 12,770 | 14,008 |
Primary Reporting Segment [Member] | Operating Segments [Member] | ||
Income (loss) from operations | $ 2,699 | $ 1,315 |
Note 11 - Segment Information_2
Note 11 - Segment Information - Net Sales by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021 | Mar. 31, 2020 | ||
Net sales | $ 13,469 | $ 14,948 | |
UNITED STATES | |||
Net sales | 311 | 491 | |
CANADA | |||
Net sales | 171 | 261 | |
PERU | |||
Net sales | 516 | 360 | |
HONG KONG | |||
Net sales | [1] | 10,322 | 11,413 |
CHINA | |||
Net sales | 508 | 698 | |
TAIWAN, PROVINCE OF CHINA | |||
Net sales | 691 | 940 | |
KOREA, REPUBLIC OF | |||
Net sales | 68 | 127 | |
Russia and Kazakhstan [Member] | |||
Net sales | 191 | 242 | |
Europe [Member] | |||
Net sales | 350 | 233 | |
Other Foreign Countries [Member] | |||
Net sales | $ 341 | $ 183 | |
[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 12 - Subsequent Event (Det
Note 12 - Subsequent Event (Details Textual) - $ / shares | May 03, 2021 | Feb. 08, 2021 | Mar. 31, 2021 | Mar. 31, 2020 |
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.20 | $ 0.20 | $ 0.20 | |
Subsequent Event [Member] | ||||
Common Stock, Dividends, Per Share, Declared (in dollars per share) | $ 0.20 |