XML 33 R21.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Note 13 - Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2024
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 13. SEGMENT INFORMATION 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 retail platform, and the Russia and Kazakhstan market where the Company’s engagement of a third-party service provider results in a different economic structure than its other markets. Otherwise, the Company believes that all of its other operating segments have similar economic characteristics and are similar in the nature of the products sold, the product acquisition process, the types of customers products are sold to, the methods used to distribute the products, and the nature of the regulatory environment. Therefore, the Company aggregates its other operating segments (including its Hong Kong operating segment) into a single reporting segment (the “Primary Reporting Unit”). The Company’s CODM is its President, who reviews financial information presented on a geographic basis. The CODM primarily uses net sales, gross profit and operating profit in assessing segment performance and determining the allocation of resources. The CODM also uses gross profit for evaluating pricing strategy. The CODM is the primary individual in control of resource allocation, and the allocation determinations are generally made in consultation with senior management, which the CODM is a member. Segment operating income is adjusted for certain direct costs and commission allocations. The CODM also regularly reviews inventory information by operating segment in assessing segment performance and determining the allocation of resources. The Company’s financial information by segment is as follows (in thousands):
|  | Year Ended December 31, 2024 |  |  | Year Ended December 31, 2023 |
|  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |  |  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |
Net sales |  | $ | 40,893 |  |  | $ | 1,580 |  |  | $ | 490 |  |  | $ | 42,963 |  |  | $ | 42,209 |  |  | $ | 1,235 |  |  | $ | 480 |  |  | $ | 43,924 |
Cost of sales |  |  | 10,658 |  |  |  | 292 |  |  |  | 228 |  |  |  | 11,178 |  |  |  | 10,699 |  |  |  | 274 |  |  |  | 202 |  |  |  | 11,175 |
Gross profit |  |  | 30,235 |  |  |  | 1,288 |  |  |  | 262 |  |  |  | 31,785 |  |  |  | 31,510 |  |  |  | 961 |  |  |  | 278 |  |  |  | 32,749 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions expense1 |  |  | 17,305 |  |  |  | — |  |  |  | 266 |  |  |  | 17,571 |  |  |  | 18,130 |  |  |  | — |  |  |  | 284 |  |  |  | 18,414 |
Employee-related costs |  |  | 3,629 |  |  |  | 950 |  |  |  | 48 |  |  |  | 4,627 |  |  |  | 3,458 |  |  |  | 900 |  |  |  | 45 |  |  |  | 4,403 |
Facility costs |  |  | 1,191 |  |  |  | 155 |  |  |  | 14 |  |  |  | 1,360 |  |  |  | 1,193 |  |  |  | 175 |  |  |  | 13 |  |  |  | 1,381 |
Other segment items2 |  |  | 1,494 |  |  |  | 325 |  |  |  | 57 |  |  |  | 1,876 |  |  |  | 1,662 |  |  |  | 420 |  |  |  | 70 |  |  |  | 2,152 |
Segment income (loss) from operations |  | $ | 6,616 |  |  | $ | (142 | ) |  | $ | (123 | ) |  |  | 6,351 |  |  | $ | 7,067 |  |  | $ | (534 | ) |  | $ | (134 | ) |  |  | 6,399 |
Reconciliation of income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (7,650 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (8,070 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,919 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 2,416 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 620 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 745 |
1Our China subsidiary maintains an e-commerce retail platform and does not pay commissions. 2 Other segment items include credit card fees and assessments, marketing-related costs, professional fees and other business expenses. The Company’s segment assets are as follows (in thousands):
|  | December 31, 2024 |  |  | December 31, 2023 |
|  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |  |  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |
Inventories |  | $ | 2,422 |  |  | $ | 159 |  |  | $ | 36 |  |  | $ | 2,617 |  |  | $ | 2,991 |  |  | $ | 147 |  |  | $ | 27 |  |  | $ | 3,165 |
Other inventories and inventory-related deposits1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 971 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,655 |
Other assets2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 51,771 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 64,271 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 55,359 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 69,091 |
1 Other inventories and inventory-related deposits pertain to the Company's trading company and are not specific to any of the Company's operating segments. 2 Other assets primarily include cash, cash equivalents and marketable securities, but also includes all other current and noncurrent assets. The Company’s net sales by geographic area are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Net sales from external customers: |  |  |  |  |  |  |  |
United States |  | $ | 1,044 |  |  | $ | 1,157 |
Canada |  |  | 535 |  |  |  | 710 |
Peru and Colombia |  |  | 1,101 |  |  |  | 1,497 |
Hong Kong1 |  |  | 35,106 |  |  |  | 34,898 |
China |  |  | 1,580 |  |  |  | 1,235 |
Taiwan |  |  | 1,591 |  |  |  | 2,181 |
Japan |  |  | 292 |  |  |  | 450 |
Russia and Kazakhstan |  |  | 490 |  |  |  | 480 |
Europe |  |  | 635 |  |  |  | 733 |
Other foreign countries |  |  | 589 |  |  |  | 583 |
Total net sales |  | $ | 42,963 |  |  | $ | 43,924 |
1 Substantially all of the Company's Hong Kong revenues are derived from the sale of products that are delivered to members in China. See “Item 1A. Risk Factors.” The Company’s net sales by product and service are as follows (in thousands):
|  | Year Ended December 31, |
|  | 2024 |  |  | 2023 |
Net sales by product and service: |  |  |  |  |  |  |  |
Product sales |  | $ | 41,729 |  |  | $ | 42,108 |
Administrative fees, freight and other |  |  | 1,544 |  |  |  | 2,014 |
Less: sales returns |  |  | (310 | ) |  |  | (198 | )
Total net sales |  | $ | 42,963 |  |  | $ | 43,924 |
Due to system constraints, it is impracticable for the Company to separately disclose sales by product category for the years presented. The Company’s long-lived tangible assets as well as the Company's operating lease right-of-use assets by geographic area are as follows (in thousands):
|  | December 31, |
|  | 2024 |  |  | 2023 |
Long-lived assets: |  |  |  |  |  |  |  |
United States |  | $ | 1,425 |  |  | $ | 1,754 |
Hong Kong |  |  | 828 |  |  |  | 1,350 |
China |  |  | 164 |  |  |  | 216 |
Other foreign countries |  |  | 271 |  |  |  | 265 |
Total long-lived assets |  | $ | 2,688 |  |  | $ | 3,585 |

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 5: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 6: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 8: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 9: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 10: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 11: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 15: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 16: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 17: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration