Annual report pursuant to Section 13 and 15(d)

Note 10 - Segment Information

v2.4.0.8
Note 10 - Segment Information
 12 Months Ended
Dec. 31, 2013
Segment Reporting [Abstract]  
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 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 geographic area are as follows (in thousands):


   

Year Ended December 31,

 
   

2012

   

2013

 

Net sales from external customers:

               

United States

  $ 1,737     $ 2,289  

Hong Kong

    26,235       40,585  

China

    1,081       791  

Taiwan

    2,074       3,387  

South Korea

    285       702  

Russia and Kazakhstan

    5,540       4,354  

Other foreign countries

    562       419  

Total net sales

  $ 37,514     $ 52,527  

The Company’s net sales by product and service are as follows (in thousands):


   

December 31,

 
   

2012

   

2013

 

Net sales by product and service:

               

Product sales

  $ 36,174     $ 50,385  

Enrollment package revenue, freight and other

    2,225       2,955  

Less: sales returns

    (885 )     (813 )

Total net sales

  $ 37,514     $ 52,527  

The Company’s long-lived assets by geographic area are as follows (in thousands):


   

December 31,

 
   

2012

   

2013

 

Long-lived assets:

               

United States

  $ 38     $ 35  
China     63       137  

Other foreign countries

    20       93  

Total long-lived assets

  $ 121     $ 265