Quarterly report pursuant to Section 13 or 15(d)

STOCKHOLDERS' EQUITY

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STOCKHOLDERS' EQUITY
 9 Months Ended
Sep. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stockholders' Equity Note Disclosure [Text Block] . STOCKHOLDERS’ EQUITY
 
Dividends
 
The following table summarizes the Company’s cash dividend activity for the nine months ended September 30, 2017 (in thousands, except per share data):
Declaration Date
 
Per Share
 
Amount
 
Record Date
 
Payment Date
July 31, 2017 (special)
 
$
0.25

 
$
2,833

 
August 21, 2017
 
August 31, 2017
July 31, 2017
 
0.11

 
1,246

 
August 21, 2017
 
August 31, 2017
April 24, 2017 (special)
 
0.35

 
3,964

 
May 9, 2017
 
May 19, 2017
April 24, 2017
 
0.10

 
1,133

 
May 9, 2017
 
May 19, 2017
January 24, 2017 (special)
 
0.35

 
3,962

 
February 21, 2017
 
March 3, 2017
January 24, 2017
 
0.09

 
1,019

 
February 21, 2017
 
March 3, 2017
 
 
$
1.25

 
$
14,157

 
 
 
 


Declaration and payment of any future dividends on shares of common stock will be at the discretion of the Company’s Board of Directors.

Stock Repurchases

On January 12, 2016, the Board of Directors authorized an increase to the Company’s stock repurchase program first approved on July 28, 2015 from $15.0 million to $70.0 million. Repurchases are expected to be executed to the extent that the Company’s earnings and cash-on-hand allow, and will be made in accordance with all applicable securities laws and regulations, including Rule 10b-18 of the Exchange Act. For all or a portion of the authorized repurchase amount, the Company may enter into one or more plans that are compliant with Rule 10b5-1 of the Exchange Act that are designed to facilitate these purchases. The stock repurchase program does not require the Company to acquire a specific number of shares, and may be suspended from time to time or discontinued. As of September 30, 2017, $32.0 million of the $70.0 million stock repurchase program approved on July 28, 2015 and increased on January 12, 2016 remained available for future purchases, inclusive of related estimated income tax.

Restricted Stock

Stock-based compensation expense totaled $8,600 and $10,000 for the three months ended September 30, 2017 and 2016, respectively, and $25,900 and $94,000 for the nine months ended September 30, 2017 and 2016, respectively. During March 2016, the Company modified the vesting feature of an award granted to a director who decided to not stand for re-election at the Company’s 2016 annual meeting of stockholders. The modification of the award resulted in an additional $64,000 in stock-based compensation expense for the three months ended March 31, 2016.

At the Company’s annual meeting of stockholders held on April 7, 2016, the Company’s stockholders approved the Natural Health Trends Corp. 2016 Equity Incentive Plan (the “2016 Plan”) to replace its 2007 Equity Incentive Plan. The 2016 Plan allows for the grant of various equity awards including incentive stock options, non-statutory options, stock, stock units, stock appreciation rights and other similar equity-based awards to the Company’s employees, officers, non-employee directors, contractors, consultants and advisors of the Company. Up to 2,500,000 shares of the Company’s common stock (subject to adjustment under certain circumstances) may be issued pursuant to awards granted. At September 30, 2017, 2,393,873 shares remained available for issuance under the 2016 Plan.

On January 24, 2017, the Company granted 56,260 shares of restricted common stock under the 2016 Plan to certain employees for the purpose of further aligning their interest with those of its stockholders and settling fiscal 2016 performance incentives totaling $1.4 million. The shares vest on a quarterly basis over three years and are subject to forfeiture in the event of the employee’s termination of service to the Company under specified circumstances.

The following table summarizes the Company’s restricted stock activity under the 2016 Plan:
 
Shares
 
Wtd. Avg. Price at Date of Issuance
Nonvested at December 31, 2016
38,256

 
$
34.13

Granted
56,260

 
25.44

Vested
(26,502
)
 
29.58

Forfeited
(1,148
)
 
28.55

Nonvested at September 30, 2017
66,866

 
28.72



The following table summarizes the Company’s other restricted stock activity:
 
Shares
 
Wtd. Avg. Price at Date of Issuance
Nonvested at December 31, 2016
22,348

 
$
12.15

Granted
—

 
—

Vested
(16,455
)
 
12.15

Forfeited
(418
)
 
12.28

Nonvested at September 30, 2017
5,475

 
12.15


 
As of September 30, 2017, total unrecognized stock-based compensation expense related to non-vested restricted stock was $8,400, which is expected to be recognized over a weighted-average period of 0.2 years.

Accumulated Other Comprehensive Loss
 
The changes in accumulated other comprehensive loss by component for the first nine months of 2017 were as follows (in thousands):
 
Foreign Currency Translation Adjustment
 
Unrealized Losses on Available-For-Sale Investments
 
Total
Balance, December 31, 2016
$
(805
)
 
$
(2
)
 
$
(807
)
Other comprehensive income (loss)
359

 
(10
)
 
349

Amounts reclassified out of accumulated other comprehensive loss
(258
)
 
—

 
(258
)
Balance, September 30, 2017
$
(704
)
 
$
(12
)
 
$
(716
)