Annual report pursuant to Section 13 and 15(d)

11. Segment Information

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11. Segment Information
 12 Months Ended
Dec. 31, 2011
Notes To Financial Statements  
Segment Reporting Disclosure [Text Block]
11.  SEGMENT INFORMATION

The Company sells products to a distributor network that operates in a seamless manner from market to market, except for the Chinese market.  The Company believes that each of its operating segments should be aggregated into a single reportable segment as they have similar economic characteristics.  In making this determination, the Company believes that each of the operating segments 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.

The Company’s e-commerce retail business launched in China during June 2007 does not require a direct selling license and allows for discounts on volume purchases.  There is no separate segment manager who is held accountable by our chief operating decision-makers, or anyone else, for operations, operating results and planning for the Chinese market on a stand-alone basis.  Accordingly, we consider ourselves to be in a single reporting segment and operating unit structure.
 
 
The Company’s net sales by market are as follows (in thousands):

   
Year Ended December 31,
 
   
2010
   
2011
 
Net sales to external customers:
           
North America
  $ 1,214     $ 1,487  
Hong Kong
    13,930       21,038  
China
    1,202       1,131  
Taiwan
    1,870       1,931  
South Korea
    828       445  
Japan
    428       240  
Russia
    3,541       4,537  
Europe
    563       353  
Total net sales
  $ 23,576     $ 31,162  

The Company’s long-lived assets, which consist of property and equipment and intangible assets, including goodwill, by market are as follows (in thousands):

   
December 31,
 
   
2010
   
2011
 
Long-lived assets:
           
North America
  $ 1,995     $ 1,768  
Hong Kong
    39       9  
China
    79       41  
Other foreign countries
    54       14  
Total long-lived assets
  $ 2,167     $ 1,832  

Due to system constraints, it is impracticable for the Company to separately disclose product and enrollment package revenue for the years presented.