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Note 11 - Segment Information | 6 Months Ended
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Jun. 30, 2025
Notes to Financial Statements |
Segment Reporting Disclosure [Text Block] | 11. 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. 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):
|  | Three Months Ended June 30, 2025 |  |  | Three Months Ended June 30, 2024 |
|  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |  |  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |
Net sales |  | $ | 9,493 |  |  | $ | 219 |  |  | $ | 101 |  |  | $ | 9,813 |  |  | $ | 10,023 |  |  | $ | 336 |  |  | $ | 116 |  |  | $ | 10,475 |
Cost of sales |  |  | 2,450 |  |  |  | 51 |  |  |  | 57 |  |  |  | 2,558 |  |  |  | 2,574 |  |  |  | 65 |  |  |  | 60 |  |  |  | 2,699 |
Gross profit |  |  | 7,043 |  |  |  | 168 |  |  |  | 44 |  |  |  | 7,255 |  |  |  | 7,449 |  |  |  | 271 |  |  |  | 56 |  |  |  | 7,776 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions expense1 |  |  | 3,973 |  |  |  | — |  |  |  | 39 |  |  |  | 4,012 |  |  |  | 4,157 |  |  |  | — |  |  |  | 46 |  |  |  | 4,203 |
Employee-related costs |  |  | 897 |  |  |  | 220 |  |  |  | 14 |  |  |  | 1,131 |  |  |  | 886 |  |  |  | 216 |  |  |  | 9 |  |  |  | 1,111 |
Facility costs |  |  | 294 |  |  |  | 36 |  |  |  | 3 |  |  |  | 333 |  |  |  | 292 |  |  |  | 40 |  |  |  | 4 |  |  |  | 336 |
Other segment items2 |  |  | 319 |  |  |  | 81 |  |  |  | 12 |  |  |  | 412 |  |  |  | 404 |  |  |  | 91 |  |  |  | 14 |  |  |  | 509 |
Segment income (loss) from operations |  | $ | 1,560 |  |  | $ | (169 | ) |  | $ | (24 | ) |  |  | 1,367 |  |  | $ | 1,710 |  |  | $ | (76 | ) |  | $ | (17 | ) |  |  | 1,617 |
Reconciliation of income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,700 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (1,855 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 348 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 519 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 15 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 281 |
|  | Six Months Ended June 30, 2025 |  |  | Six Months Ended June 30, 2024 |
|  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |  |  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |
Net sales |  | $ | 19,899 |  |  | $ | 453 |  |  | $ | 198 |  |  | $ | 20,550 |  |  | $ | 20,489 |  |  | $ | 720 |  |  | $ | 217 |  |  | $ | 21,426 |
Cost of sales |  |  | 5,177 |  |  |  | 99 |  |  |  | 114 |  |  |  | 5,390 |  |  |  | 5,364 |  |  |  | 138 |  |  |  | 109 |  |  |  | 5,611 |
Gross profit |  |  | 14,722 |  |  |  | 354 |  |  |  | 84 |  |  |  | 15,160 |  |  |  | 15,125 |  |  |  | 582 |  |  |  | 108 |  |  |  | 15,815 |
Less: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Commissions expense1 |  |  | 8,408 |  |  |  | — |  |  |  | 92 |  |  |  | 8,500 |  |  |  | 8,585 |  |  |  | — |  |  |  | 104 |  |  |  | 8,689 |
Employee-related costs |  |  | 1,738 |  |  |  | 453 |  |  |  | 26 |  |  |  | 2,217 |  |  |  | 1,826 |  |  |  | 474 |  |  |  | 25 |  |  |  | 2,325 |
Facility costs |  |  | 579 |  |  |  | 71 |  |  |  | 6 |  |  |  | 656 |  |  |  | 589 |  |  |  | 82 |  |  |  | 8 |  |  |  | 679 |
Other segment items2 |  |  | 764 |  |  |  | 145 |  |  |  | 24 |  |  |  | 933 |  |  |  | 789 |  |  |  | 196 |  |  |  | 28 |  |  |  | 1,013 |
Segment income (loss) from operations |  | $ | 3,233 |  |  | $ | (315 | ) |  | $ | (64 | ) |  |  | 2,854 |  |  | $ | 3,336 |  |  | $ | (170 | ) |  | $ | (57 | ) |  |  | 3,109 |
Reconciliation of income before income taxes: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Unallocated corporate expenses |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,532 | ) |  |  |  |  |  |  |  |  |  |  |  |  |  |  | (3,712 | )
Other income, net |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 813 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 1,082 |
Income before income taxes |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 135 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 479 |
1 Our 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):
|  | June 30, 2025 |  |  | December 31, 2024 |
|  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |  |  | Primary Reporting Unit |  |  | China |  |  | Russia and Kazakhstan |  |  | Total |
Inventories |  | $ | 1,914 |  |  | $ | 165 |  |  | $ | 67 |  |  | $ | 2,146 |  |  | $ | 2,422 |  |  | $ | 159 |  |  | $ | 36 |  |  | $ | 2,617 |
Other inventories and inventory-related deposits1 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 760 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 971 |
Other assets2 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 42,256 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  | 51,771 |
Total assets |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 45,162 |  |  |  |  |  |  |  |  |  |  |  |  |  |  | $ | 55,359 |
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):
|  | Three Months Ended June 30, |  |  | Six Months Ended June 30, |
|  | 2025 |  |  | 2024 |  |  | 2025 |  |  | 2024 |
Net sales from external customers: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
United States |  | $ | 299 |  |  | $ | 263 |  |  | $ | 585 |  |  | $ | 525 |
Canada |  |  | 130 |  |  |  | 142 |  |  |  | 231 |  |  |  | 253 |
Peru and Colombia |  |  | 320 |  |  |  | 284 |  |  |  | 569 |  |  |  | 504 |
Hong Kong1 |  |  | 8,004 |  |  |  | 8,468 |  |  |  | 17,127 |  |  |  | 17,642 |
China |  |  | 219 |  |  |  | 336 |  |  |  | 453 |  |  |  | 720 |
Taiwan |  |  | 396 |  |  |  | 486 |  |  |  | 718 |  |  |  | 823 |
Japan |  |  | 82 |  |  |  | 55 |  |  |  | 146 |  |  |  | 121 |
Malaysia and Singapore |  |  | 82 |  |  |  | 66 |  |  |  | 132 |  |  |  | 119 |
Russia and Kazakhstan |  |  | 101 |  |  |  | 116 |  |  |  | 198 |  |  |  | 217 |
Europe |  |  | 120 |  |  |  | 157 |  |  |  | 270 |  |  |  | 309 |
Other foreign countries |  |  | 60 |  |  |  | 102 |  |  |  | 121 |  |  |  | 193 |
Total net sales |  | $ | 9,813 |  |  | $ | 10,475 |  |  | $ | 20,550 |  |  | $ | 21,426 |
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” in our most recent Annual Report on Form 10-K.

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- Definition The entire disclosure for reporting segments including data and tables. 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