Annual report pursuant to Section 13 and 15(d)

Consolidated Statements of Cash Flows

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Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Dec. 31, 2013
Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 4,089 $ 2,630
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 66 45
Stock-based compensation 110 94
Deferred income taxes 16 (56)
Changes in assets and liabilities:    
Accounts receivable (17) (24)
Inventories, net (974) 236
Other current assets (35) (95)
Other assets (38) (5)
Accounts payable 1,673 (826)
Income taxes payable 16 (1)
Accrued distributor commissions 2,679 117
Other accrued expenses 1,467 203
Deferred revenue 1,738 (140)
Other current liabilities (104) 36
Net cash provided by operating activities 10,686 2,214
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property and equipment (210) (96)
Decrease (increase) in restricted cash (82) 493
Net cash provided by (used in) investing activities (292) 397
CASH FLOWS FROM FINANCING ACTIVITIES:    
Repurchase of common stock (52) (3)
Net cash used in financing activities (52) (3)
Effect of exchange rates on cash and cash equivalents 1 (18)
Net increase in cash and cash equivalents 10,343 2,590
CASH AND CASH EQUIVALENTS, beginning of period 4,207 1,617
CASH AND CASH EQUIVALENTS, end of period $ 14,550 $ 4,207