Annual report pursuant to Section 13 and 15(d)

Note 10 - Segment Information

v2.4.1.9
Note 10 - Segment Information
 12 Months Ended
Dec. 31, 2014
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
10.    
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 all 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 all 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 geographic area are as follows (in thousands):
 
   
Year Ended December 31,
  
   
2013
    
2014
  
Net sales from external customers:
                
United States
   $ 2,289     $ 1,438  
Canada
     72       1,374  
Hong Kong
     40,585       111,028  
China
     791       1,538  
Taiwan
     3,387       4,628  
South Korea
     702       1,009  
Russia, Kazakhstan and Ukraine
     4,354       3,113  
Other foreign countries
     347       462  
Total net sales
   $ 52,527     $ 124,590  
 
The Company’s net sales by product and service are as follows (in thousands):
 
   
December 31,
  
   
2013
    
2014
  
Net sales by product and service:
                
Product sales
   $ 50,385     $ 118,843  
Enrollment package revenue, freight and other
     2,955       7,927  
Less: sales returns
     (813 )     (2,180 )
Total net sales
   $ 52,527     $ 124,590  
 
The Company’s long-lived assets by geographic area are as follows (in thousands):
 
   
December 31,
  
   
2013
    
2014
  
Long-lived assets:
                
United States
   $ 35     $ 31  
China     137       241  
Other foreign countries
     93       204  
Total long-lived assets
   $ 265     $ 476