Quarterly report pursuant to Section 13 or 15(d)

Consolidated Statements of Cash Flows (Unaudited)

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Consolidated Statements of Cash Flows (Unaudited) - USD ($)
 6 Months Ended
Jun. 30, 2015
Jun. 30, 2014
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 19,011,000 $ 9,181,000
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 109,000 44,000
Stock-based compensation 35,000 $ 34,000
Cumulative translation adjustment realized in net income (82,000)  
Changes in assets and liabilities:    
Accounts receivable (186,000) $ 24,000
Inventories, net (1,524,000) (2,502,000)
Other current assets (672,000) (104,000)
Other assets (232,000) (16,000)
Accounts payable 849,000 1,586,000
Income taxes payable 56,000 86,000
Accrued distributor commissions 5,471,000 1,268,000
Other accrued expenses 4,674,000 2,466,000
Deferred revenue 5,459,000 $ 606,000
Amounts held in distributor eWallets 6,468,000  
Other current liabilities 186,000 $ 152,000
Long-term incentive (141,000)  
Net cash provided by operating activities 39,481,000 $ 12,825,000
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment, net (333,000) $ (97,000)
Increase in restricted cash (3,272,000)  
Net cash used in investing activities (3,605,000) $ (97,000)
CASH FLOWS FROM FINANCING ACTIVITIES    
Proceeds from exercise of warrants 309,000 2,630,000
Repurchase of common stock (6,082,000) (63,000)
Dividends paid (621,000) (195,000)
Net cash provided by (used in) financing activities (6,394,000) 2,372,000
Effect of exchange rates on cash and cash equivalents 124,000 (28,000)
Net increase in cash and cash equivalents 29,606,000 15,072,000
CASH AND CASH EQUIVALENTS, beginning of period 44,816,000 14,550,000
CASH AND CASH EQUIVALENTS, end of period $ 74,422,000 29,622,000
NON-CASH FINANCING ACTIVITY:    
Conversion of preferred stock   29,000
Cash dividends declared, but not yet paid   $ 25,000
Issuance of treasury stock $ 666,000