Quarterly report pursuant to Section 13 or 15(d)

Accounting Policies, by Policy (Policies)

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Accounting Policies, by Policy (Policies)
 6 Months Ended
Jun. 30, 2012
Consolidation, Policy [Policy Text Block] Principles of Consolidation The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. All significant inter-company balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block] Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. The most significant accounting estimates inherent in the preparation of the Company's financial statements include estimates associated with obsolete inventory and the fair value of acquired intangible assets, including goodwill, as well as those used in the determination of liabilities related to sales returns and income taxes.Various assumptions and other factors prompt the determination of these significant estimates.The process of determining significant estimates is fact specific and takes into account historical experience and current and expected economic conditions.The actual results may differ materially and adversely from the Company's estimates.To the extent that there are material differences between the estimates and actual results, future results of operations will be affected.
Income Tax, Policy [Policy Text Block] Income Taxes The Company recognizes income taxes under the liability method of accounting for income taxes.Deferred income taxes are recognized for differences between the financial reporting and tax bases of assets and liabilities at enacted statutory tax rates in effect for the years in which the differences are expected to reverse.Valuation allowances are established when necessary to reduce deferred tax assets to the amounts expected to be ultimately realized.The Company recognizes tax benefits from uncertain tax positions only if it is more likely than not that the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such a position are measured based on the largest benefit that has a greater than fifty percent likelihood of being realized upon ultimate resolution. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of income tax expense. Deferred taxes are not provided on the portion of undistributed earnings of subsidiaries outside of the United States when these earnings are considered permanently reinvested. The Company and its subsidiaries file income tax returns in the United States, various states, and foreign jurisdictions.The Company is no longer subject to U.S. federal income tax examinations for years prior to 2008, and is no longer subject to state income tax examinations for years prior to 2007.No jurisdictions are currently examining any income tax returns of the Company or its subsidiaries.
Fair Value of Financial Instruments, Policy [Policy Text Block] Fair Value of Financial Instruments The carrying amounts of the Company's financial instruments, including cash and cash equivalents, accounts receivable, accounts payable and accrued expenses, approximate fair value because of their short maturities.The carrying amount of the noncurrent restricted cash approximates fair value since, absent the restrictions, the underlying assets would be included in cash and cash equivalents. Accounting standards permit companies, at their option, to choose to measure many financial instruments and certain other items at fair value. The Company has elected to not fair value existing eligible items.
Revenue Recognition, Policy [Policy Text Block] Revenue Recognition Product sales are recorded when the products are shipped and title passes to independent distributors.Product sales to distributors are made pursuant to a distributor agreement that provides for transfer of both title and risk of loss upon our delivery to the carrier that completes delivery to the distributors, which is commonly referred to as "F.O.B. Shipping Point."The Company primarily receives payment by credit card at the time distributors place orders.Amounts received for unshipped product are recorded as deferred revenue.The Company's sales arrangements do not contain right of inspection or customer acceptance provisions other than general rights of return. Actual product returns are recorded as a reduction to net sales.The Company estimates and accrues a reserve for product returns based on its return policies and historical experience. Enrollment package revenue, including any nonrefundable set-up fees, is deferred and recognized over the term of the arrangement, generally twelve months.Enrollment packages provide distributors access to both a personalized marketing website and a business management system.No upfront costs are deferred as theamount is nominal. Shipping charges billed to distributors are included in net sales.Costs associated with shipments are included in cost of sales. Various taxes on the sale of products and enrollment packages to distributors are collected by the Company as an agent and remitted to the respective taxing authority.These taxes are presented on a net basis and recorded as a liability until remitted to the respective taxing authority.
Selling, General and Administrative Expenses, Policy [Policy Text Block] Selling, General and Administrative Expenses During the second quarter of 2011, the Company successfully negotiated and entered into agreements with certain legacy and on-going vendors to settle prior outstanding payable balances.The impact of such agreements to settle outstanding payable balances was $209,000 less than carrying value, which was immediately recognized as a credit to selling, general and administrative expenses upon settlement.
Earnings Per Share, Policy [Policy Text Block] Income Per Share Basic income per share is computed by dividing net income applicable to common stockholders by the weighted-average number of common shares outstanding during the period.Diluted income per share is determined using the weighted-average number of common shares outstanding during the period, adjusted for the dilutive effect of common stock equivalents, consisting of non-vested restricted stock and shares that might be issued upon the exercise of outstanding stock options and warrants and the conversion of preferred stock. The dilutive effect of non-vested restricted stock, stock options and warrants is reflected by application of the treasury stock method.Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefit that would be recorded in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares.The potential tax benefit derived from exercise of non-qualified stock options has been excluded from the treasury stock calculation as the Company is uncertain that the benefit will be realized.
New Accounting Pronouncements, Policy [Policy Text Block] Recently Issued and Adopted Accounting Pronouncements On January1, 2012, the Company adopted the new Financial Accounting Standards Board guidance on the presentation of comprehensive income.Specifically, the new guidance requires an entity to present components of net income and other comprehensive income in either a single continuous statement of comprehensive income, or in two separate but consecutive statements, which is the approach the Company has selected.The new guidance eliminated the option to present the components of other comprehensive income as part of the statement of changes in stockholders' equity.While the new guidance changed the presentation of comprehensive income, there were no changes to the components that are recognized in net income or other comprehensive income from that of previous accounting guidance. Other recently issued accounting pronouncements did not or are not believed by management to have a material impact on the Company's present or future financial statements.