View Filing Data

Document and Entity Information - shares	6 Months Ended
Document and Entity Information - shares	Jun. 30, 2020	Jul. 31, 2020
Entity Information [Line Items]
Entity Shell Company	false
Entity Interactive Data Current	Yes
Document Quarterly Report	true
Document Transition Report	false
Entity Current Reporting Status	Yes
Entity Registrant Name	MANNATECH INC
Entity Central Index Key	0001056358
Current Fiscal Year End Date	--12-31
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Document Type	10-Q
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		2,101,240

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Cash and cash equivalents	$ 20,712	$ 24,762
Restricted cash	943	943
Accounts receivable, net of allowance of $654 and $708 in 2020 and 2019, respectively	251	955
Income tax receivable	1,333	220
Inventories, net	13,319	10,152
Prepaid expenses and other current assets	3,122	2,239
Deferred commissions	1,650	1,758
Total current assets	41,330	41,029
Property and equipment, net	4,456	5,261
Construction in progress	1,131	865
Long-term restricted cash	4,242	5,295
Other assets	11,986	9,592
Long-term deferred tax assets, net	991	881
Total assets	64,136	62,923
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current portion of finance leases	84	87
Accounts payable	5,971	3,526
Accrued expenses	8,162	8,209
Commissions and incentives payable	9,981	9,728
Taxes payable	1,609	2,187
Current notes payable	889	739
Deferred revenue	4,801	4,416
Total current liabilities	31,497	28,892
Finance leases, excluding current portion	178	176
Deferred tax liabilities	3	3
Long-term notes payable	92	363
Other long-term liabilities	7,727	6,214
Total liabilities	39,497	35,648
Commitments and contingencies
Shareholders’ equity:
Preferred stock, $0.01 par value, 1,000,000 shares authorized, no shares issued or outstanding	0	0
Common stock, $0.0001 par value, 99,000,000 shares authorized, 2,742,857 shares issued and 2,101,240 shares outstanding as of June 30, 2020 and 2,742,857 shares issued and 2,381,131 shares outstanding as of December 31, 2019	0	0
Additional paid-in capital	33,764	34,143
Retained earnings (accumulated deficit)	2,628	(690)
Accumulated other comprehensive income	2,671	3,757
Treasury stock, at average cost, 641,617 shares as of June 30, 2020 and 361,726 shares as of December 31, 2019	(14,424)	(9,935)
Total shareholders’ equity	24,639	27,275
Total liabilities and shareholders’ equity	$ 64,136	$ 62,923

CONSOLIDATED BALANCE SHEETS - (UNAUDITED) (Parenthetical) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Accounts receivable, allowance for doubtful accounts	$ 654	$ 708
Shareholders' equity:
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized (in shares)	1,000,000	1,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0.0001	$ 0.0001
Common stock, shares authorized (in shares)	99,000,000	99,000,000
Common stock, shares issued (in shares)	2,742,857	2,742,857
Common stock, shares outstanding (in shares)	2,101,240	2,381,131
Treasury stock, shares (in shares)	641,617	361,726

CONSOLIDATED STATEMENTS OF OPERATIONS - (UNAUDITED) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Statement [Abstract]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 37,647	$ 40,711	$ 74,252	$ 78,684
Cost of sales	8,708	8,115	15,716	15,542
Gross profit	28,939	32,596	58,536	63,142
Operating expenses:
Commissions and incentives	15,330	16,295	30,219	31,494
Selling and administrative expenses	7,165	8,381	14,020	15,957
Depreciation and amortization expense	537	517	1,057	1,045
Other operating costs	4,797	5,384	10,118	11,507
Total operating expenses	27,829	30,577	55,414	60,003
Income from operations	1,110	2,019	3,122	3,139
Interest income (expense), net	13	25	63	(70)
Other (expense) income, net	166	980	(42)	984
Income before income taxes	1,289	3,024	3,143	4,053
Income tax (provision) benefit	(159)	(1,037)	775	(1,378)
Net income	$ 1,130	$ 1,987	$ 3,918	$ 2,675
Earnings per common share:
Basic (in dollars per share)	$ 0.48	$ 0.83	$ 1.65	$ 1.12
Diluted (in dollars per share)	$ 0.47	$ 0.81	$ 1.62	$ 1.09
Weighted-average common shares outstanding:
Basic (in shares)	2,370	2,394	2,380	2,395
Diluted (in shares)	2,388	2,452	2,402	2,457

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) - (UNAUDITED) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of Comprehensive Income [Abstract]
Net income	$ 1,130	$ 1,987	$ 3,918	$ 2,675
Foreign currency translations	548	(189)	(1,086)	(630)
Comprehensive income	$ 1,678	$ 1,798	$ 2,832	$ 2,045

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY - (UNAUDITED) - USD ($) $ in Thousands	Total	Common stock Par value	Additional paid-in capital	Retained earnings (accumulated deficit)	Accumulated other comprehensive income	Treasury stock
43921 at Dec. 31, 2018	$ 25,324	$ 0	$ 33,939	$ (2,782)	$ 4,337	$ (10,170)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	688			688
Payment of cash dividends	(303)			(303)
Charge related to stock-based compensation			107
Issuance of unrestricted shares	280		(141)			421
Repurchase of common stock	(9)					(9)
Foreign currency translations	(441)				(441)
44012 at Mar. 31, 2019	25,646	0	33,905	(2,397)	3,896	(9,758)
43921 at Dec. 31, 2018	25,324	0	33,939	(2,782)	4,337	(10,170)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,675
Charge related to stock-based compensation	107
Foreign currency translations	(630)
44012 at Jun. 30, 2019	27,245	0	34,026	(710)	3,707	(9,778)
43921 at Mar. 31, 2019	25,646	0	33,905	(2,397)	3,896	(9,758)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,987			1,987
Payment of cash dividends	(300)			(300)
Charge related to stock-based compensation	160		160
Repurchase of common stock	(58)					(58)
Foreign currency translations	(189)				(189)
44012 at Jun. 30, 2019	27,245	0	34,026	(710)	3,707	(9,778)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income Taxes Paid	1		39			38
43921 at Dec. 31, 2019	27,275	0	34,143	(690)	3,757	(9,935)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	2,787			2,787
Payment of cash dividends	(300)			(300)
Charge related to stock-based compensation	83		83
Issuance of unrestricted shares	210		(163)			373
Repurchase of common stock	(86)					(86)
Foreign currency translations	(1,634)				(1,634)
44012 at Mar. 31, 2020	28,335	0	34,063	1,797	2,123	(9,648)
43921 at Dec. 31, 2019	27,275	0	34,143	(690)	3,757	(9,935)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	3,918
Foreign currency translations	(1,086)
44012 at Jun. 30, 2020	24,639	0	33,764	2,628	2,671	(14,424)
43921 at Mar. 31, 2020	28,335	0	34,063	1,797	2,123	(9,648)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,130			1,130
Payment of cash dividends	(299)			(299)
Charge related to stock-based compensation	34		34
Repurchase of common stock	(5,109)					(5,109)
Foreign currency translations	548				548
44012 at Jun. 30, 2020	24,639	$ 0	33,764	$ 2,628	$ 2,671	(14,424)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Income Taxes Paid	$ 0		$ 333			$ 333

- Definition

The portion of profit or loss for the period, net of income taxes, which is attributable to the parent.

+ References + Details

CONSOLIDATED STATEMENTS OF CASH FLOWS - (UNAUDITED) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income	$ 3,918	$ 2,675
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	1,057	1,045
Operating Right Of Use Lease Liabilities Net	1,136	882
Provision for inventory losses	194	436
Provision for doubtful accounts	(35)	71
Gain (Loss) on Disposition of Assets	8	(62)
Charge related to stock-based compensation	327	547
Deferred income taxes	(110)	453
Changes in operating assets and liabilities:
Accounts receivable	739	(91)
Income tax receivable	(1,113)	163
Inventories	(3,361)	(952)
Prepaid expenses and other current assets	(1,008)	1,299
Deferred commissions	108	(223)
Other assets	(897)	(399)
Accounts payable	2,445	(763)
Accrued expenses and other liabilities	(972)	(331)
Taxes payable	(578)	(74)
Commissions and incentives payable	253	(1,498)
Deferred revenue	385	509
Net cash provided by operating activities	2,480	3,811
CASH FLOWS FROM INVESTING ACTIVITIES:
Acquisition of property and equipment	(478)	(684)
Net cash used in investing activities	(478)	(684)
CASH FLOWS FROM FINANCING ACTIVITIES:
Repurchase of common stock	(5,195)	(67)
Payment of cash dividends	(600)	(603)
Proceeds from Other Debt	2,244
Repayments of Other Debt	(2,244)
Repayment of other notes payable and finance lease obligations	(242)	(668)
Net cash used in financing activities	(6,037)	(1,338)
Effect of currency exchange rate changes on cash and cash equivalents	(1,068)	(603)
Net (decrease) increase in cash, cash equivalents, and restricted cash	(5,103)	1,186
Cash, cash equivalents, and restricted cash at the beginning of the period	31,000	30,584
Cash, cash equivalents, and restricted cash at the end of the period	25,897	31,770
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability	2,670	854
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability	47	241
Interest Paid, Excluding Capitalized Interest, Operating Activities	40	69
NonCashOperatingLeaseRightOfUseAssetsAndLeaseLiabilities	0	4,638
Non Cash Finance Lease Right Of Use Assets And Lease Liabilities	0	103
Income Taxes Paid, Net	$ 821	$ 1,049

Organization, Consolidation and Presentation of Financial Statements

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization, Consolidation and Presentation of Financial Statements Disclosure

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Mannatech, Incorporated (together with its subsidiaries, the “Company”), located in Flower Mound, Texas, was incorporated in the state of Texas on November 4, 1993 and is listed on the Nasdaq Global Select Market under the symbol “MTEX”. The Company develops, markets, and sells high-quality, proprietary nutritional supplements, topical and skin care and anti-aging products, and weight-management products. We currently sell our products into three regions: (i) the Americas (the United States, Canada and Mexico); (ii) EMEA (Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, Namibia, the Netherlands, Norway, South Africa, Spain, Sweden and the United Kingdom); and (iii) Asia/Pacific (Australia, Japan, New Zealand, the Republic of Korea, Singapore, Taiwan, Hong Kong, and China).

Active business building associates ("independent associates" or "associates") and preferred customers purchase the Company’s products at published wholesale prices. The Company cannot distinguish products sold for personal use from other sales, when sold to associates, because it is not involved with the products after delivery, other than usual and customary product warranties and returns. Only associates are eligible to earn commissions and incentives. The Company operates a non-direct selling business in mainland China. Our subsidiary in China, Meitai Daily Necessity & Health Products Co., Ltd. (“Meitai”), is operating as a traditional retailer under a cross-border e-commerce model in China. Meitai cannot legally conduct a direct selling business in China unless it acquires a direct selling license in China.

The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") for interim financial information and with instructions for Form 10-Q and Article 8-03 of Regulation S-X. Accordingly, the Company’s consolidated financial statements and footnotes contained herein do not include all of the information and footnotes required by GAAP to be considered “complete financial statements”. However, in the opinion of the Company’s management, the accompanying unaudited consolidated financial statements and footnotes contain all adjustments, including normal recurring adjustments, considered necessary for a fair presentation of the Company’s consolidated financial information as of, and for, the periods presented. The Company cautions that its consolidated results of operations for an interim period are not necessarily indicative of its consolidated results of operations to be expected for its fiscal year. The December 31, 2019 consolidated balance sheet was included in the audited consolidated financial statements in the Company’s annual report on Form 10-K for the year ended December 31, 2019 and filed with the United States Securities and Exchange Commission (the “SEC”) on March 26, 2020 (the “2019 Annual Report”), which includes all disclosures required by GAAP. Therefore, these unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements of the Company included in the 2019 Annual Report.

On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of a new strain of coronavirus ("COVID-19") and the risks to the international community as the virus spreads globally beyond its point of origin. In March 2020, the WHO declared the outbreak of COVID-19 as a pandemic, which has spread throughout our international regions and continues to spread throughout the United States. We have closed some offices and have begun to work remotely for an uncertain period of time.

The Company depends on an independent sales force of distributors (“associates”) to market and sell its products to consumers. Developments such as social distancing and shelter-in-place directives have impacted and may continue to impact their ability to engage with potential and existing customers. The adverse economic effects of COVID-19 may also materially decrease demand for the Company’s products based on changes in consumer behavior or the restrictions in place by governments trying to curb the outbreak. For example, the Company has rescheduled corporate sponsored events, and in some cases, our associates have canceled sales meetings.

For some products, the Company was experiencing shortages of raw materials and ingredients. We have experienced challenges in getting these materials and ingredients to our contract manufacturers and finished products to our distribution centers resulting from reductions in global transportation capacity. One of our distribution centers was closed for a week for sanitization as a result of an employee testing positive for the virus. This closure temporarily delayed deliveries to customers in one region. The distribution center reopened prior to the end of the quarter with an immaterial impact to current quarter revenues.

While the conditions described above are expected to be temporary, prolonged workforce disruptions, continued disruption in our supply chain and potential decreases in consumer demands may negatively impact sales in fiscal year 2020 and the Company’s overall liquidity. The full impact of COVID-19 continues to evolve and we are actively monitoring the global situation with a focus on our financial condition, liquidity, operations, suppliers, industry, and workforce.

Principles of Consolidation

The consolidated financial statements and footnotes include the accounts of Mannatech and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of the Company’s consolidated financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Company’s estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. However, actual results may differ from these estimates under different assumptions or conditions.

The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies.

Cash, Cash Equivalents, and Restricted Cash

The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are received within 24 to 72 hours. As of June 30, 2020, and December 31, 2019, credit card receivables were $2.4 million and $0.7 million, respectively. As of June 30, 2020, and December 31, 2019, cash and cash equivalents held in bank accounts in foreign countries totaled $17.0 million and $18.2 million, respectively. The Company invests cash in liquid instruments, such as money market funds and interest-bearing deposits. The Company also holds cash in high quality financial institutions and does not believe it has an excessive exposure to credit concentration risk.

A significant portion of our cash and cash equivalent balances were concentrated within the Republic of Korea, with total net assets within this foreign location totaling $19.0 million and $19.2 million at June 30, 2020 and December 31, 2019, respectively. In addition, for the three and six months ended June 30, 2020 and 2019, a concentrated portion of our operating cash flows were earned from operations within the Republic of Korea. An adverse change in economic conditions within the Republic of Korea could negatively affect the Company’s results of operations.

The Company is required to restrict cash for: (i) direct selling insurance premiums and credit card sales in the Republic of Korea; (ii) reserve on credit card sales in the United States and Canada; and (iii) the Australia building lease collateral. As of June 30, 2020, and December 31, 2019, our total restricted cash was $5.2 million and $6.2 million, respectively.

The following table provides a reconciliation of cash, cash equivalents, and restricted cash reported within the Company's consolidated balance sheets to the total amount presented in the consolidated statement of cash flows (in thousands):


	June 30, 2020		December 31, 2019
Cash and cash equivalents at beginning of period	$	24,762	$	21,845
Current restricted cash at beginning of period	943		1,514
Long-term restricted cash at beginning of period	5,295		7,225
Cash, cash equivalents, and restricted cash at beginning of period	$	31,000	$	30,584

Cash and cash equivalents at end of period	$	20,712	$	24,762
Current restricted cash at end of period	943		943
Long-term restricted cash at end of period	4,242		5,295
Cash, cash equivalents, and restricted cash at end of period	$	25,897	$	31,000

Accounts Receivable

Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of June 30, 2020, and December 31, 2019, receivables consisted primarily of amounts due from preferred customers and associates. As of June 30, 2020 and December 31, 2019, the Company's accounts receivable balance (net of allowance) was $0.3 million and $1.0 million, respectively. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due and writes-off receivables when they become uncollectible. At each of June 30, 2020 and December 31, 2019, the Company held an allowance for doubtful accounts of $0.7 million.

Inventories

Inventories consist of raw materials, finished goods, and promotional materials that are stated at the lower of cost (using standard costs that approximate average costs) or net realizable value. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off.

Other Assets

As of June 30, 2020 and December 31, 2019, other assets were $12.0 million and $9.6 million, respectively . These amounts primarily consisted of right-of-use assets related to office building and equipment leases, net of lease incentives, of $7.3 million and $5.6 million as of June 30, 2020 and December 31, 2019, respectively. See Note 8, Leases for more information on these assets. Also included in Other Assets were deposits for building leases in various locations of $2.0 million and $2.2 million as of June 30, 2020 and December 31, 2019, respectively. Additionally, included in the June 30, 2020 and December 31, 2019 balances were $2.5 million and $1.6 million, respectively, representing a deposit with Mutual Aid Cooperative and Consumer in the Republic of Korea, an organization established by the Republic of Korea’s Fair Trade Commission to protect consumers who participate in network marketing activities. Finally, each of the June 30, 2020 and December 31, 2019 balances included $0.2 million of indefinite lived intangible assets relating to the Manapol® powder trademark.

Accrued Expenses

At each of June 30, 2020 and December 31, 2019, accrued expenses were $8.2 million. These amounts primarily consisted of $2.3 million representing employee benefits, which included accrued wages, bonus and severance at each of June 30, 2020 and December 31, 2019, respectively. Also included in the June 30, 2020 and December 31, 2019 balances were non-inventory accrued liabilities of $2.4 million and $2.2 million, respectively. Additionally, included in the June 30, 2020 and December 31, 2019 balances were $1.9 million and $1.6 million for the current portion of lease liabilities, respectively, and $0.8 million and $0.9 million for accrued auditing and accounting fees, respectively. At June 30, 2020 and December 31, 2019 other accrued expenses were $0.7 million and $1.2 million, respectively.

Notes Payable

Notes payable were $1.0 million and $1.1 million as of June 30, 2020 and December 31, 2019, respectively, as a result of funding from a capital financing agreement related to our investment in leasehold improvements, computer hardware and software and other financing arrangements. At June 30, 2020, the current portion was $0.9 million. At December 31, 2019, the current portion was $0.7 million.

On April 10, 2020, the Company received loan proceeds of $2.2 million (the “Loan”) under the Paycheck Protection Program (“PPP”). The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020, and is administered by the U.S. Small Business Administration (the “SBA”) The Loan to the Company was made through JPMorgan Chase Bank, N. A., the Company’s existing banker (the “Lender”). At the time the Company applied for and received the Loan, the Company planned to use the Loan proceeds for covered payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. After the Company received the proceeds of the Loan, the SBA provided subsequent guidance interpreting the PPP. Based on such subsequent guidance, the Company made the determination to repay the Loan in full, which it did on April 30, 2020.

Other Long-Term Liabilities

Other long-term liabilities were $7.7 million and $6.2 million as of June 30, 2020 and December 31, 2019, respectively. As of June 30, 2020 and December 31, 2019, the balance is primarily composed of long-term operating lease obligations of $6.8 million and $5.3 million, respectively. See Note 8, Leases for more information. Additionally, as of June 30, 2020 and December 31, 2019, the Company recorded $0.2 million in other long-term liabilities related to uncertain income tax positions (see Note 7, Income Taxes, of the Company’s 2019 Annual Report). Certain operating leases for the Company’s regional office facilities contain a restoration clause that requires the Company to restore the premises to its original condition. At each of June 30, 2020 and December 31, 2019, accrued restoration costs related to these leases amounted to $0.3 million. At each of June 30, 2020 and December 31, 2019, the Company also recorded a long-term liability for estimated defined benefit obligation related to a non-U.S. defined benefit plan for its Japan operations of $0.3 million (see Note 9, Employee Benefit Plans, of the Company’s 2019 Annual Report).

Revenue Recognition

The Company’s revenue is derived from sales of individual products and associate fees or, in certain geographic markets, starter packs. Substantially all of the Company’s product sales are made at published wholesale prices to associates and preferred customers. The Company records revenue net of any sales taxes and records a reserve for expected sales returns based on its historical experience. The Company recognizes revenue from shipped products when control of the product transfers to the customer, thus the performance obligation is satisfied. Corporate-sponsored event revenue is recognized when the event is held.

Revenues from associate fees relate to providing associates with the right to earn commissions, benefits and incentives for an annual period. Revenue from software tools included in the first contractual year is recognized over three months and revenue from associate fees is recognized over 12 months (see Contracts with Multiple Performance Obligations for recognition guidelines). Almost all orders are paid via credit card. See Note 10, Segment Information, for disaggregation of revenues by geographic segment and type.

The Company collected associate fees within the United States, Canada, South Africa, Japan, Australia, New Zealand, Singapore, Hong Kong, Taiwan, Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, the Netherlands, Norway, Spain, Sweden and the United Kingdom.

Contracts with Multiple Performance Obligations

Orders placed by associates or preferred customers constitute our contracts. Product sales placed in the form of an automatic order contain two performance obligations: (a) the sale of the product and (b) the loyalty program. For these contracts, the Company accounts for each of these obligations separately as they are each distinct. The transaction price is allocated between the product sale and the loyalty program on a relative standalone selling price basis. Sales placed through a one-time order contain only the first performance obligation noted above - the sale of the product.

The Company provides associates with access to a complimentary three-month package for the Success Tracker^TM and Mannatech+ online business tools with the first payment of an associate fee. The first payment of an associate fee contains three performance obligations: (a) the associate fee, whereby the Company provides an associate with the right to earn commissions, bonuses and incentives for a year; (b) three months of complimentary access to utilize the Success Tracker™ online tool; and (c) three months of complimentary access to utilize the Mannatech+ online business tool. The transaction price is allocated between the three performance obligations on a relative standalone selling price basis. Associates do not have complimentary access to online business tools after the first contractual period.

With regards to both of the aforementioned contracts, the Company determines the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts.

Deferred Commissions

The Company defers commissions on (i) the sales of products shipped but not received by customers by the end of the respective period and (ii) the loyalty program. Deferred commissions are incremental costs and are amortized to expense consistent with how the related revenue is recognized. Deferred commissions were $1.8 million for the year ended December 31, 2019. Of this balance, $0.9 million was amortized to commissions expense for the six months ended June 30, 2020. At June 30, 2020, deferred commissions were $1.7 million.

Deferred Revenue

The Company defers certain components of its revenue. Deferred revenue consisted of: (i) sales of products shipped but not received by customers by the end of the respective period; (ii) revenue from the loyalty program; (iii) prepaid registration fees from customers planning to attend a future corporate-sponsored event; and (iv) prepaid annual associate fees. At December 31, 2019, the Company’s deferred revenue was $4.4 million Of this balance, $2.4 million was recognized as revenue for the six months ended June 30, 2020. At June 30, 2020, the Company’s deferred revenue was $4.8 million.

The Company’s customer loyalty program conveys a material right to the customer as it provides the promise to redeem loyalty points for the purchase of products, which is based on earning points through placing consecutive qualified automatic orders. The Company factors in breakage rates, which is the percentage of the loyalty points that are expected to be forfeited or expire, for purposes of revenue recognition. Breakage rates are estimated based on historical data and can be reasonably and objectively determined. The deferred revenue associated with the loyalty program at June 30, 2020 and December 31, 2019 was $3.1 million and $3.1 million, respectively.


Loyalty program	(in thousands)
Loyalty deferred revenue as of January 1, 2019	$	4,231
Loyalty points forfeited or expired	(4,348)
Loyalty points used	(9,127)
Loyalty points vested	11,320
Loyalty points unvested	1,051
Loyalty deferred revenue as of December 31, 2019	$	3,127


Loyalty deferred revenue as of January 1, 2020	$	3,127
Loyalty points forfeited or expired	(1,659)
Loyalty points used	(4,649)
Loyalty points vested	5,124
Loyalty points unvested	1,121
Loyalty deferred revenue as of June 30, 2020	$	3,064

Sales Refund and Allowances

The Company utilizes the expected value method, as set forth by Accounting Standard Codification ("ASC") Topic 606 Revenue from Contracts with Customers ("ASC 606"), to estimate the sales returns and allowance liability by taking the weighted average of the sales return rates over a rolling six-month period. The Company allocates the total amount recorded within the sales return and allowance liability as a reduction of the overall transaction price for the Company’s product sales. The Company deems the sales refund and allowance liability to be a variable consideration.

Historically, sales returns have not materially changed through the years, as the majority of our customers who return their merchandise do so within the first 90 days after the original sale. Sales returns have historically averaged 1.5% or less of our gross sales. For the six months ended June 30, 2020 our sales return reserve consisted of the following (in thousands):


Sales reserve as of January 1, 2019	$	76
Provision related to sales made in current period	1,037
Adjustment related to sales made in prior periods	31
Actual returns or credits related to current period	(973)
Actual returns or credits related to prior periods	(103)
Sales reserve as of December 31, 2019	$	68

Sales reserve as of January 1, 2020	$	68
Provision related to sales made in current period	488
Adjustment related to sales made in prior periods	4
Actual returns or credits related to current period	(411)
Actual returns or credits related to prior periods	(67)
Sales reserve as of June 30, 2020	$	82

Shipping and Handling Costs

The Company records inbound freight as a component of inventory and cost of sales. The Company records freight and shipping fees collected from its customers as fulfillment costs. In accordance with ASC 606-10-25-18a, freight and shipping fees are not deemed to be separate performance obligations as these activities occur before the customer receives the product.

Commissions and Incentives

Associates earn commissions and incentives based on their direct and indirect commissionable net sales over each month of the fiscal year. The Company accrues commissions and incentives when earned by associates and pays commissions on product and pack sales on a monthly basis.

Comprehensive Income and Accumulated Other Comprehensive Income

Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company’s comprehensive income consists of the Company’s net income, foreign currency translation adjustments from its Japan, Republic of Korea, Taiwan, Denmark, Norway, Sweden, Colombia, Mexico and China operations, remeasurement of intercompany balances classified as equity in its Korea, Mexico, Colombia, and Cyprus operations, and changes in the pension obligation for its Japanese employees.

Recently Adopted Accounting Pronouncements

The Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02") as of January 1, 2019 and applied it on a modified retrospective basis approach and elected to not adjust periods prior to January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the carry forward of the historical lease classification. This new standard requires companies to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The adoption increased assets, net of incentive, by $4.7 million and liabilities by $6.1 million on our consolidated balance sheets and did not have a significant impact on our consolidated statement of operations and statements of cash flows. These leases primarily relate to office buildings and office equipment. See Note 8, Leases for more information.

In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) ("ASU 2018-02"), which amended its standard on comprehensive income to provide an option for an entity to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the "TCJA") that was passed in December of 2017 from accumulated other comprehensive income directly to retained earnings. The stranded tax effects result from the remeasurement of deferred tax assets and liabilities which were originally recorded in comprehensive income but whose remeasurement is reflected in the income statement. This is a one-time amendment applicable only to the changes resulting from the TCJA. The Company adopted this standard on January 1, 2019. The overall financial impact of adopting this standard did not have a material effect on our consolidated financial statements.

Accounting Pronouncements Issued But Not Yet Effective

In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This standard adds to U.S. GAAP an impairment model (known as the current expected credit loss ("CECL") model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the more timely recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. ASU 2019-10 deferred the effective date of ASU 2016-13 for all entities except SEC filers that are not smaller reporting companies. Accordingly, this standard will be effective for the Company as of January 1, 2023. While our review is ongoing, we believe ASU 2016-13 will only have applicability to our receivables from revenue transactions. Under ASC 606, revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that trade receivables are recorded, they become subject to the CECL model and estimates of expected credit losses on trade receivables over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. The Company is currently evaluating whether the new guidance will have an impact on our consolidated financial statements or existing internal controls.

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.

INVENTORIES

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

INVENTORIES

Inventories consist of raw materials, finished goods, and promotional materials. The Company provides an allowance for any slow-moving or obsolete inventories. Inventories as of June 30, 2020 and December 31, 2019, consisted of the following (in thousands):


	June 30, 2020		December 31, 2019
Raw materials	$	2,755	$	2,685
Finished goods	11,060		8,341
Inventory reserves for obsolescence	(496)		(874)
Total	$	13,319	$	10,152

INCOME TAXES	6 Months Ended
INCOME TAXES	Jun. 30, 2020
Income Tax Disclosure [Abstract]
INCOME TAXES	INCOME TAXESFor the three and six months ended June 30, 2020, the Company’s effective tax rate was 12.3% and (24.7)%, respectively. For the three and six months ended June 30, 2019, the Company’s effective tax rate was 34.3% and 34.0%, respectively. For the three and six months ended June 30, 2020 and 2019, the Company's effective tax rate was determined based on the estimated annual effective income tax rate. The effective tax rate for the three months ended June 30, 2020 was different from the federal statutory rate due primarily to the mix of earnings across jurisdictions and the associated valuation allowance recorded on losses in certain jurisdictions. The effective tax rate for the six months ended June 30, 2020 was different from the federal statutory rate due primarily to the $1.2 million benefit recorded in connection with the carryback of U.S. net operating losses as allowed by the CARES Act. The effective tax rate for the three and six months ended June 30, 2019 was different from the federal statutory rate due primarily to the mix of earnings across jurisdictions and the associated valuation allowance recorded on losses in certain jurisdictions. Income tax related provisions of stimulus packages in foreign jurisdictions did not have a material impact to our recorded income tax benefit for the three and six months ended June 30, 2020. We are evaluating the impact, if any, that stimulus packages in foreign jurisdictions may have on the Company's future operations, financial position, and liquidity in fiscal year 2020.

STOCK-BASED COMPENSATION

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

The Company currently has one active stock-based compensation plan, the Mannatech, Incorporated 2017 Stock Incentive Plan, which was adopted by the Company’s Board of Directors (the "Board") on April 17, 2017 and was approved by its shareholders on June 8, 2017, and subsequently amended by the Board at its February 2019 special meeting, which amendment was approved by the Company's shareholders on June 11, 2019 (as amended, the "2017 Plan"). The 2017 Plan supersedes the Mannatech, Incorporated 2008 Stock Incentive Plan (as amended, the "2008 Plan"), which was set to expire on February 20, 2018. The Board has reserved a maximum of 370,000 shares of our common stock that may be issued under the 2017 Plan (subject to adjustments for stock splits, stock dividends or other changes in corporate capitalization). As of June 30, 2020, the Company had a total of 144,393 shares available for grant under the 2017 Plan, which expires on April 16, 2027.

The 2017 Plan provides for grants of incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance stock and performance stock units to our employees, board members, and consultants. However, only employees of the Company and its corporate subsidiaries are eligible to receive incentive stock options. The exercise price per share for all stock options will be no less than the market value of a share of common stock on the date of grant. Any incentive stock option granted to an employee owning more than 10% of our common stock will have an exercise price of no less than 110% of our common stock’s market value on the grant date.

The majority of stock options vest over two or three years, and generally are granted with a term of ten years, or five years in the case of an incentive option granted to an employee who owns more than 10% of our common stock.

The Company records stock-based compensation expense related to granting stock options in selling and administrative expenses. During the six months ended June 30, 2020 and 2019, the Company granted 5,000 and 15,000 stock options, respectively. The fair value of stock options granted during the six months ended June 30, 2020 and 2019 was approximately $4.00 and $6.88 per share, respectively. The Company recognized compensation expense as follows for the three and six months ended June 30 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Total gross compensation expense	$	35	$	160	$	117	$	626
Total tax benefit associated with compensation expense	4		12		7		36
Total net compensation expense	$	31	$	148	$	110	$	590

As of June 30, 2020, the Company expects to record compensation expense in the future as follows (in thousands):


	Six months ending December 31, 2020		Year ending December 31,
					2021			2022			2023
Total gross unrecognized compensation expense	$	13	$	15		$	3		$	—
Tax benefit associated with unrecognized compensation expense	3		3			1			—
Total net unrecognized compensation expense	$	10	$	12		$	2		$	—

SHAREHOLDERS' EQUITY

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

SHAREHOLDERS' EQUITY

SHAREHOLDERS’ EQUITY

Treasury Stock

On May 29, 2020, the Company commenced a modified Dutch auction cash tender offer to purchase up to $5.0 million of its outstanding common stock, par value $0.0001 per share, at a per share price not greater than $17.00 nor less than $15.00, to each seller in cash, less any applicable withholding taxes and without interest (the "tender offer"). The tender offer expired on June 25, 2020. As a result of the tender offer, the Company accepted for purchase a total of 294,117 shares of its common stock, which were properly tendered and not properly withdrawn at the price of $17.00 per share, for an aggregate purchase price of $5.0 million, which was funded from cash on hand. Due to the tender offer being oversubscribed, the Company purchased only a prorated portion of those shares properly tendered by each tendering shareholder (other than "odd lot" holders whose shares were purchased on a priority basis) at or below the final per share purchase price. The final proration factor for the tender offer was approximately 86%. These common shares represented approximately 12.31% of the Company's total outstanding shares as of April 30, 2020.

During the three months ended June 30, 2020, the Company repurchased 306,123 shares of its common stock outstanding, which includes the 294,117 shares of its common stock repurchased pursuant to the tender offer. During the three months ended June 30, 2019, the Company purchased 4,039 shares of its common stock outstanding.

As of June 30, 2020, the Company had 2,101,240 shares of common stock outstanding.

Accumulated Other Comprehensive Income

Accumulated other comprehensive income, reflected in the Consolidated Statement of Shareholders’ Equity, represents net income plus the results of certain shareholders’ equity changes not reflected in the Consolidated Statements of Operations, such as foreign currency translation and certain pension and post-retirement benefit obligations. The after-tax components of accumulated other comprehensive income, are as follows (in thousands):


	Foreign Currency Translation		Pension Postretirement Benefit Obligation		Accumulated Other Comprehensive Income, Net
Balance as of December 31, 2019	$	3,435	$	322	$	3,757
Current-period change ⁽¹⁾	(1,086)		—		(1,086)
Balance as of June 30, 2020	$	2,349	$	322	$	2,671

⁽¹⁾No material amounts reclassified from accumulated other comprehensive income.

Dividends

On February 14, 2020, the Board declared a dividend of $0.125 per share that was paid on March 27, 2020 to shareholders of record on March 13, 2020, for an aggregate amount of $0.3 million.

On May 27, 2020, the Board declared a dividend of $0.125 per share that was paid on June 24, 2020 to shareholders of record on June 12, 2020, for an aggregate amount of $0.3 million.

LITIGATION	6 Months Ended
LITIGATION	Jun. 30, 2020
Commitments and Contingencies Disclosure [Abstract]
LITIGATION	LITIGATION Administrative Proceeding Mannatech Korea, Ltd. v. Busan Custom Office, Busan District Court, Korea On or before April 12, 2015, Mannatech Korea, Ltd. filed a suit against the Busan Custom Office (“BCO”) to challenge BCO’s method of calculation regarding its assessment notice issued on July 11, 2013. The assessment notice included an audit of the Company’s imported goods covering fiscal years 2008 through 2012 and required the Company to pay $1.0 million for this assessment, all of which was paid in January 2014. Both parties submitted a response to the Court’s inquiry on January 15, 2016. The final hearing for the case was held on May 26, 2016 where each party presented their respective arguments. The Court set the decision hearing on October 27, 2016, and the Court decided the case in the Company’s favor. However, on November 18, 2016, BCO filed an appeal to the Busan High Court. The first hearing occurred on March 31, 2017, and the second hearing occurred on April 21, 2017. The final hearing was held on June 2, 2017. The Court issued its decision on June 30, 2017 in favor of the BCO. The Company appealed this decision on August 24, 2017. Since the appeal of the decision of the Busan High Court to the Supreme Court, there have been no further developments and the Company is still awaiting the decision of the Supreme Court. This matter remains open. Insured Litigation - Product Liability Meeja Kim, et al., v. Mannatech Korea and Eunbee Cho, Seoul Southern District Court 2020-Gadan-216374 On March 4, 2020, a complaint was filed against Mannatech Korea. Mannatech Korea was served on March 10, 2020. The plaintiffs are the surviving spouse and three children (the “Plaintiffs”) of Kong Seokhwan, a cancer patient who died in October 2017. The Plaintiffs allege that co-defendant and former independent associate, Eunbee Cho, instructed the deceased to take the Company’s products as treatment for cancer. Eunbee Cho was found guilty of fraud and began serving a sentence of one year and six months in November 2019. The Plaintiffs are seeking damages in the amount of 110 million KRW (USD $90,000.00) plus interest of 12% per year. Mannatech Korea has engaged local counsel to defend this matter. Court hearings have been delayed due to COVID-19. It is not possible at this time to predict whether the Company will incur any liability, or to estimate the ranges of damages, if any, which may be incurred in connection with this matter. However, Mannatech Korea believes it has a valid defense and will vigorously defend this claim. This matter remains open. Ruiguo Ma v. MTEX Hong Kong Limited and Beili Guan, Case No. 2019-Jin-0116-Civil-2339, Binhai New District Court, Tianjin, China On or before September 2, 2019, the Company received service of process of the above-captioned matter. Ruiguo Ma, (the "Plaintiff") is alleging that his child suffered tooth decay after consuming the Company's MannaBears product and underwent several surgeries. The Plaintiff is seeking damages of approximately $50,000 USD. The Company has engaged local counsel to defend this case. The Company has provided notice to its insurance carrier. At this time the potential damages do not meet the deductible; therefore, the case has not been tendered to the carrier. The first hearing occurred on September 11, 2019, and the second hearing occurred on October 30, 2019, where each party presented their respective arguments. Court hearings and judgments are postponed due to COVID-19. The Company anticipates a judgment in the third quarter of 2020. Litigation in General The Company has incurred several claims in the normal course of business. The Company believes such claims can be resolved without any material adverse effect on our consolidated financial position, results of operations, or cash flows. The Company maintains certain liability insurance; however, certain costs of defending lawsuits are not covered by or only partially covered by its insurance policies, including claims that are below insurance deductibles. Additionally, insurance carriers could refuse to cover certain claims, in whole or in part. The Company accrues costs to defend itself from litigation as they are incurred. The outcome of litigation is uncertain, and despite management’s views of the merits of any litigation, or the reasonableness of the Company’s estimates and reserves, the Company’s financial statements could nonetheless be materially affected by an adverse judgment. The Company believes it has adequately reserved for the contingencies arising from current legal matters where an outcome was deemed to be probable, and the loss amount could be reasonably estimated.

FAIR VALUE

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

FAIR VALUE

The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures.

Fair Value Measurements and Disclosure (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories:

•Level 1 – Quoted unadjusted prices for identical instruments in active markets.

•Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets.

•Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company.

The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest-bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets. The Company does not have any material financial liabilities that were required to be measured at fair value on a recurring basis at June 30, 2020. The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of June 30, 2020 and December 31, 2019.


June 30, 2020	Level 1		Level 2		Level 3		Total
Assets

Interest bearing deposits – various banks	$	8,620	—		—		$	8,620
Total assets	$	8,620	$	—	$	—	$	8,620
Amounts included in:
Cash and cash equivalents	$	3,908	$	—	$	—	$	3,908
Restricted cash	679		—		—		679
Long-term restricted cash	4,033		—		—		4,033
Total	$	8,620	$	—	$	—	$	8,620


December 31, 2019	Level 1		Level 2		Level 3		Total
Assets
Money Market Funds – Fidelity, US	$	5,000	$	—	$	—	$	5,000
Interest bearing deposits – various banks	8,962		—		—		8,962
Total assets	$	13,962	$	—	$	—	$	13,962
Amounts included in:
Cash and cash equivalents	$	8,636	$	—	$	—	$	8,636
Restricted cash	679		—		—		679
Long-term restricted cash	4,647		—		—		4,647
Total	$	13,962	$	—	$	—	$	13,962

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SEGMENT INFORMATION

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

SEGMENT INFORMATION

The Company's sole reporting segment is one where we sell proprietary nutritional supplements, skin care and anti-aging products, and weight-management and fitness products through network marketing distribution channels operating in twenty-four countries. Each of the business units sells similar packs (with the exception of the United States, Canada, South Africa, Japan, Australia, New Zealand, Singapore, Hong Kong, Taiwan, Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, the Netherlands, Norway, Sweden and the United Kingdom, where packs have been replaced with associate fees, see Note 1, Organization and Summary of Significant Accounting Policies) and products and possesses similar economic characteristics, such as selling prices and gross margins. In each country, the Company markets its products and pays commissions and incentives in similar market environments. The Company’s management reviews its financial information by country and focuses its internal reporting and analysis of revenues by pack sales and associate fees and product sales. The Company sells its products through its independent associates who occupy positions in our network and distribute products through similar distribution channels in each country. No single independent associate has ever accounted for more than 10% of the Company’s consolidated net sales. The Company also operates a non-direct selling business in mainland China. Our subsidiary in China, Meitai, is operating as a traditional retailer under a cross-border e-commerce model. Meitai cannot legally conduct a direct selling business in China unless it acquires a direct selling license in China.

The Company operates facilities in eleven countries and sells product in twenty-five countries around the world. These facilities are located in the United States, Canada, Australia, the United Kingdom, Japan, the Republic of Korea (South Korea), Taiwan, South Africa, Mexico, Hong Kong, Singapore and China. Each facility services different geographic areas. We currently sell our products in three regions: (i) the Americas (the United States, Canada and Mexico); (ii) EMEA (Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, Namibia, the Netherlands, Norway, South Africa, Spain, Sweden and the United Kingdom); and (iii) Asia/Pacific (Australia, Japan, New Zealand, the Republic of Korea, Singapore, Taiwan, Hong Kong and China).

Consolidated net sales shipped to customers in these regions, along with pack or associate fee and product information for the three and six months ended June 30, were as follows (in millions, except percentages):


	Three Months Ended June 30,														Six Months Ended June 30,
Region	2020						2019						2020				2019
Americas	$	10.9	29.0	%	$	12.4	30.5	%	$	22.6	30.4	%	$	24.4	31.0	%
Asia/Pacific	23.5		62.5	%	24.8		60.9	%	45.0		60.6	%	47.6		60.5	%
EMEA	3.2		8.5	%	3.5		8.6	%	6.7		9.0	%	6.7		8.5	%
Totals	$	37.6	100.0	%	$	40.7	100.0	%	$	74.3	100.0	%	$	78.7	100.0	%


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Consolidated product sales	$	37.0	$	39.9	$	73.1	$	77.1
Consolidated pack sales and associate fees	0.4		0.6		0.8		1.2
Consolidated other	0.2		0.2		0.4		0.4
Consolidated total net sales	$	37.6	$	40.7	$	74.3	$	78.7

Long-lived assets, which include property and equipment and construction in process for the Company and its subsidiaries, as of June 30, 2020 and December 31, 2019, reside in the following regions, as follows (in millions):


Region	June 30, 2020		December 31, 2019
Americas	$	4.6	$	5.1
Asia/Pacific	1.0		1.0
EMEA	—		—
Total	$	5.6	$	6.1

Inventory balances, which consist of raw materials, finished goods, and promotional materials, as offset by the allowance for slow moving or obsolete inventories, reside in the following regions (in millions):


Region	June 30, 2020		December 31, 2019
Americas	$	6.4	$	5.4
Asia/Pacific	5.7		3.8
EMEA	1.2		1.0
Total	$	13.3	$	10.2

Leases (Notes)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Leases of Lessee Disclosure [Text Block]

LEASES

The Company has entered into contractual lease arrangements to rent office space and equipment from third-party lessors. On January 1, 2019, the Company adopted ASC Topic 842, Leases, ("Topic 842") and related disclosures. See note 5 to the consolidated financial statements in our Annual Report on Form 10-K for the year ended December 31, 2019.

As of June 30, 2020, the Company had net operating lease right-of-use assets of $7.3 million and net finance lease right-of-use assets of $0.3 million. At June 30, 2020, our operating lease liabilities were $6.8 million and our finance lease liabilities were $0.2 million.

The weighted-average remaining lease term and discount rate related to the Company’s operating lease liabilities as of June 30, 2020 were 5.73 years and 4.1%, respectively. The weighted-average remaining lease term and discount rate related to the Company’s finance lease liabilities as of June 30, 2020 were 3.19 years and 5.6%, respectively. The Company's lease discount rates are generally based on estimates of its incremental borrowing rate, as discount rates implicit in the Company's leases cannot be readily determined.

As of June 30, 2020 and 2019 our leased assets and liabilities consisted of the following (in thousands):


Leases	Classification	June 30, 2020		June 30, 2019
Right-of-use assets
Operating leases	Other assets	$	7,332	$	4,384
Finance leases	Property and equipment, net	283		416
Total leased assets		$	7,615	$	4,800

Lease liabilities
Current portion
Operating leases	Accrued expenses	$	1,906	$	1,567
Finance leases	Current portion of finance leases	84		104
Long-term
Operating leases	Other long-term liabilities	6,793		4,343
Finance leases	Finance leases, excluding current portion	178		222
Total lease liabilities		$	8,961	$	6,236

As of June 30, 2020 future minimum lease payments on operating and financing leases were as follows (in thousands):


	June 30, 2020
Maturity of lease liabilities	Operating Leases		Financing Leases
Remaining 2020	$	1,227	$	49
2021	2,151		94
2022	1,705		74
2023	1,159		45
2024	1,242		21
2025	865		1
Thereafter	1,528		—
Total minimum lease payments	$	9,877	$	284
Imputed interest	(1,178)		(22)
Present value of minimum lease payments	$	8,699	$	262

SUBSEQUENT EVENTS (Notes)	6 Months Ended
SUBSEQUENT EVENTS (Notes)	Jun. 30, 2020
Subsequent Events [Abstract]
Subsequent Events [Text Block]	SUBSEQUENT EVENTSOn April 10, 2020, the Company received loan proceeds of $2,243,687 (the “Loan”) under the Paycheck Protection Program (“PPP”). The PPP was established under the recent CARES Act and is administered by the U.S. Small Business Administration. The Loan to the Company was made through JPMorgan Chase Bank, N. A., the Company’s existing banker (the “Lender”). At the time the Company applied for and received the Loan, the Company planned to use the Loan proceeds for covered payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. After the Company received the proceeds of the Loan, the SBA provided subsequent guidance interpreting the PPP. Based on such subsequent guidance, the Company made the determination to repay the Loan in full, which it did on April 30, 2020.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2020
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Principles of Consolidation	Principles of Consolidation The consolidated financial statements and footnotes include the accounts of Mannatech and its wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates	Use of Estimates The preparation of the Company’s consolidated financial statements in accordance with GAAP requires the use of estimates that affect the reported value of assets, liabilities, revenues and expenses. These estimates are based on historical experience and various other factors. The Company continually evaluates the information used to make these estimates as the business and economic environment changes. Historically, actual results have not varied materially from the Company’s estimates and the Company does not currently anticipate a significant change in its assumptions related to these estimates. However, actual results may differ from these estimates under different assumptions or conditions. The use of estimates is pervasive throughout the consolidated financial statements, but the accounting policies and estimates considered the most significant are described in this note to the consolidated financial statements, Organization and Summary of Significant Accounting Policies.
Cash and Cash Equivalents	Cash, Cash Equivalents, and Restricted Cash The Company considers all highly liquid investments with original maturities of three months or less to be cash equivalents. The Company includes in its cash and cash equivalents credit card receivables due from its credit card processor, as the cash proceeds from credit card receivables are received within 24 to 72 hours. As of June 30, 2020, and December 31, 2019, credit card receivables were $2.4 million and $0.7 million, respectively. As of June 30, 2020, and December 31, 2019, cash and cash equivalents held in bank accounts in foreign countries totaled $17.0 million and $18.2 million, respectively. The Company invests cash in liquid instruments, such as money market funds and interest-bearing deposits. The Company also holds cash in high quality financial institutions and does not believe it has an excessive exposure to credit concentration risk.
Restricted Cash	The Company is required to restrict cash for: (i) direct selling insurance premiums and credit card sales in the Republic of Korea; (ii) reserve on credit card sales in the United States and Canada; and (iii) the Australia building lease collateral. As of June 30, 2020, and December 31, 2019, our total restricted cash was $5.2 million and $6.2 million, respectively.
Accounts Receivable	Accounts Receivable Accounts receivable are carried at their estimated collectible amounts. Receivables are created upon shipment of an order if the credit card payment is rejected or does not match the order total. As of June 30, 2020, and December 31, 2019, receivables consisted primarily of amounts due from preferred customers and associates. As of June 30, 2020 and December 31, 2019, the Company's accounts receivable balance (net of allowance) was $0.3 million and $1.0 million, respectively. The Company periodically evaluates its receivables for collectability based on historical experience, recent account activities, and the length of time receivables are past due and writes-off receivables when they become uncollectible. At each of June 30, 2020 and December 31, 2019, the Company held an allowance for doubtful accounts of $0.7 million.
Inventories	Inventories Inventories consist of raw materials, finished goods, and promotional materials that are stated at the lower of cost (using standard costs that approximate average costs) or net realizable value. The Company periodically reviews inventories for obsolescence and any inventories identified as obsolete are reserved or written off.
Other Assets	Other Assets As of June 30, 2020 and December 31, 2019, other assets were $12.0 million and $9.6 million, respectively . These amounts primarily consisted of right-of-use assets related to office building and equipment leases, net of lease incentives, of $7.3 million and $5.6 million as of June 30, 2020 and December 31, 2019, respectively. See Note 8, Leases for more information on these assets. Also included in Other Assets were deposits for building leases in various locations of $2.0 million and $2.2 million as of June 30, 2020 and December 31, 2019, respectively. Additionally, included in the June 30, 2020 and December 31, 2019 balances were $2.5 million and $1.6 million, respectively, representing a deposit with Mutual Aid Cooperative and Consumer in the Republic of Korea, an organization established by the Republic of Korea’s Fair Trade Commission to protect consumers who participate in network marketing activities. Finally, each of the June 30, 2020 and December 31, 2019 balances included $0.2 million of indefinite lived intangible assets relating to the Manapol® powder trademark.
Notes Payable	Notes Payable Notes payable were $1.0 million and $1.1 million as of June 30, 2020 and December 31, 2019, respectively, as a result of funding from a capital financing agreement related to our investment in leasehold improvements, computer hardware and software and other financing arrangements. At June 30, 2020, the current portion was $0.9 million. At December 31, 2019, the current portion was $0.7 million. On April 10, 2020, the Company received loan proceeds of $2.2 million (the “Loan”) under the Paycheck Protection Program (“PPP”). The PPP was established under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), enacted on March 27, 2020, and is administered by the U.S. Small Business Administration (the “SBA”) The Loan to the Company was made through JPMorgan Chase Bank, N. A., the Company’s existing banker (the “Lender”). At the time the Company applied for and received the Loan, the Company planned to use the Loan proceeds for covered payroll costs, rent and utilities in accordance with the relevant terms and conditions of the CARES Act. After the Company received the proceeds of the Loan, the SBA provided subsequent guidance interpreting the PPP. Based on such subsequent guidance, the Company made the determination to repay the Loan in full, which it did on April 30, 2020.
Revenue Recognition	Revenue Recognition The Company’s revenue is derived from sales of individual products and associate fees or, in certain geographic markets, starter packs. Substantially all of the Company’s product sales are made at published wholesale prices to associates and preferred customers. The Company records revenue net of any sales taxes and records a reserve for expected sales returns based on its historical experience. The Company recognizes revenue from shipped products when control of the product transfers to the customer, thus the performance obligation is satisfied. Corporate-sponsored event revenue is recognized when the event is held. Revenues from associate fees relate to providing associates with the right to earn commissions, benefits and incentives for an annual period. Revenue from software tools included in the first contractual year is recognized over three months and revenue from associate fees is recognized over 12 months (see Contracts with Multiple Performance Obligations for recognition guidelines). Almost all orders are paid via credit card. See Note 10, Segment Information, for disaggregation of revenues by geographic segment and type. The Company collected associate fees within the United States, Canada, South Africa, Japan, Australia, New Zealand, Singapore, Hong Kong, Taiwan, Austria, the Czech Republic, Denmark, Estonia, Finland, Germany, the Republic of Ireland, the Netherlands, Norway, Spain, Sweden and the United Kingdom. Contracts with Multiple Performance Obligations Orders placed by associates or preferred customers constitute our contracts. Product sales placed in the form of an automatic order contain two performance obligations: (a) the sale of the product and (b) the loyalty program. For these contracts, the Company accounts for each of these obligations separately as they are each distinct. The transaction price is allocated between the product sale and the loyalty program on a relative standalone selling price basis. Sales placed through a one-time order contain only the first performance obligation noted above - the sale of the product. The Company provides associates with access to a complimentary three-month package for the Success Tracker^TM and Mannatech+ online business tools with the first payment of an associate fee. The first payment of an associate fee contains three performance obligations: (a) the associate fee, whereby the Company provides an associate with the right to earn commissions, bonuses and incentives for a year; (b) three months of complimentary access to utilize the Success Tracker™ online tool; and (c) three months of complimentary access to utilize the Mannatech+ online business tool. The transaction price is allocated between the three performance obligations on a relative standalone selling price basis. Associates do not have complimentary access to online business tools after the first contractual period. With regards to both of the aforementioned contracts, the Company determines the standalone selling prices based on our overall pricing objectives, taking into consideration market conditions and other factors, including the value of the contracts.
Commissions and Incentives	Commissions and Incentives Associates earn commissions and incentives based on their direct and indirect commissionable net sales over each month of the fiscal year. The Company accrues commissions and incentives when earned by associates and pays commissions on product and pack sales on a monthly basis.
Comprehensive Income and Accumulated Other Comprehensive Income	Comprehensive Income and Accumulated Other Comprehensive Income Comprehensive income is defined as the change in equity of a business enterprise during a period from transactions and other events and circumstances from non-owner sources and includes all changes in equity during a period except those resulting from investments by owners and distributions to owners. The Company’s comprehensive income consists of the Company’s net income, foreign currency translation adjustments from its Japan, Republic of Korea, Taiwan, Denmark, Norway, Sweden, Colombia, Mexico and China operations, remeasurement of intercompany balances classified as equity in its Korea, Mexico, Colombia, and Cyprus operations, and changes in the pension obligation for its Japanese employees.
Recently Adopted and Issued But Not Yet Effective Accounting Pronouncements	Recently Adopted Accounting Pronouncements The Company adopted Accounting Standards Update ("ASU") 2016-02, Leases (Topic 842) ("ASU 2016-02") as of January 1, 2019 and applied it on a modified retrospective basis approach and elected to not adjust periods prior to January 1, 2019. The Company elected the package of practical expedients permitted under the transition guidance within the new standard, which, among other things, allowed the carry forward of the historical lease classification. This new standard requires companies to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. The adoption increased assets, net of incentive, by $4.7 million and liabilities by $6.1 million on our consolidated balance sheets and did not have a significant impact on our consolidated statement of operations and statements of cash flows. These leases primarily relate to office buildings and office equipment. See Note 8, Leases for more information. In February 2018, the Financial Accounting Standards Board ("FASB") issued ASU 2018-02, Income Statement - Reporting Comprehensive Income, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income (Topic 220) ("ASU 2018-02"), which amended its standard on comprehensive income to provide an option for an entity to reclassify the stranded tax effects of the Tax Cuts and Jobs Act (the "TCJA") that was passed in December of 2017 from accumulated other comprehensive income directly to retained earnings. The stranded tax effects result from the remeasurement of deferred tax assets and liabilities which were originally recorded in comprehensive income but whose remeasurement is reflected in the income statement. This is a one-time amendment applicable only to the changes resulting from the TCJA. The Company adopted this standard on January 1, 2019. The overall financial impact of adopting this standard did not have a material effect on our consolidated financial statements. Accounting Pronouncements Issued But Not Yet Effective In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments ("ASU 2016-13"). This standard adds to U.S. GAAP an impairment model (known as the current expected credit loss ("CECL") model that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses, which is intended to result in the more timely recognition of losses. Under the CECL model, entities will estimate credit losses over the entire contractual term of the instrument (considering estimated prepayments, but not expected extensions or modifications) from the date of initial recognition of the financial instrument. Measurement of expected credit losses are to be based on relevant forecasts that affect collectability. The scope of financial assets within the CECL methodology is broad and includes trade receivables from certain revenue transactions and certain off-balance sheet credit exposures. Different components of the guidance require modified retrospective or prospective adoption. ASU 2019-10 deferred the effective date of ASU 2016-13 for all entities except SEC filers that are not smaller reporting companies. Accordingly, this standard will be effective for the Company as of January 1, 2023. While our review is ongoing, we believe ASU 2016-13 will only have applicability to our receivables from revenue transactions. Under ASC 606, revenue is recognized when, among other criteria, it is probable that the entity will collect the consideration to which it is entitled for goods or services transferred to a customer. At the point that trade receivables are recorded, they become subject to the CECL model and estimates of expected credit losses on trade receivables over their contractual life will be required to be recorded at inception based on historical information, current conditions, and reasonable and supportable forecasts. The Company is currently evaluating whether the new guidance will have an impact on our consolidated financial statements or existing internal controls. 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.
Fair Value	The Company utilizes fair value measurements to record fair value adjustments to certain financial assets and to determine fair value disclosures. Fair Value Measurements and Disclosure (Topic 820) of the FASB establishes a fair value hierarchy that requires the use of observable market data, when available, and prioritizes the inputs to valuation techniques used to measure fair value in the following categories: •Level 1 – Quoted unadjusted prices for identical instruments in active markets. •Level 2 – Quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-derived valuations in which all observable inputs and significant value drivers are observable in active markets. •Level 3 – Model-derived valuations in which one or more significant inputs or significant value drivers are unobservable, including assumptions developed by the Company. The primary objective of the Company’s investment activities is to preserve principal while maximizing yields without significantly increasing risk. The investment instruments held by the Company are money market funds and interest-bearing deposits for which quoted market prices are readily available. The Company considers these highly liquid investments to be cash equivalents. These investments are classified within Level 1 of the fair value hierarchy because they are valued based on quoted market prices in active markets.
Accrued Expenses	Accrued Expenses At each of June 30, 2020 and December 31, 2019, accrued expenses were $8.2 million. These amounts primarily consisted of $2.3 million representing employee benefits, which included accrued wages, bonus and severance at each of June 30, 2020 and December 31, 2019, respectively. Also included in the June 30, 2020 and December 31, 2019 balances were non-inventory accrued liabilities of $2.4 million and $2.2 million, respectively. Additionally, included in the June 30, 2020 and December 31, 2019 balances were $1.9 million and $1.6 million for the current portion of lease liabilities, respectively, and $0.8 million and $0.9 million for accrued auditing and accounting fees, respectively. At June 30, 2020 and December 31, 2019 other accrued expenses were $0.7 million and $1.2 million, respectively.

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

6 Months Ended

Jun. 30, 2020

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Reconciliation of cash, cash equivalents, and restricted cash


	June 30, 2020		December 31, 2019
Cash and cash equivalents at beginning of period	$	24,762	$	21,845
Current restricted cash at beginning of period	943		1,514
Long-term restricted cash at beginning of period	5,295		7,225
Cash, cash equivalents, and restricted cash at beginning of period	$	31,000	$	30,584

Cash and cash equivalents at end of period	$	20,712	$	24,762
Current restricted cash at end of period	943		943
Long-term restricted cash at end of period	4,242		5,295
Cash, cash equivalents, and restricted cash at end of period	$	25,897	$	31,000

Loyalty deferred revenue

The deferred revenue associated with the loyalty program at June 30, 2020 and December 31, 2019 was $3.1 million and $3.1 million, respectively.


Loyalty program	(in thousands)
Loyalty deferred revenue as of January 1, 2019	$	4,231
Loyalty points forfeited or expired	(4,348)
Loyalty points used	(9,127)
Loyalty points vested	11,320
Loyalty points unvested	1,051
Loyalty deferred revenue as of December 31, 2019	$	3,127


Loyalty deferred revenue as of January 1, 2020	$	3,127
Loyalty points forfeited or expired	(1,659)
Loyalty points used	(4,649)
Loyalty points vested	5,124
Loyalty points unvested	1,121
Loyalty deferred revenue as of June 30, 2020	$	3,064

Sales return reserve

For the six months ended June 30, 2020 our sales return reserve consisted of the following (in thousands):


Sales reserve as of January 1, 2019	$	76
Provision related to sales made in current period	1,037
Adjustment related to sales made in prior periods	31
Actual returns or credits related to current period	(973)
Actual returns or credits related to prior periods	(103)
Sales reserve as of December 31, 2019	$	68

Sales reserve as of January 1, 2020	$	68
Provision related to sales made in current period	488
Adjustment related to sales made in prior periods	4
Actual returns or credits related to current period	(411)
Actual returns or credits related to prior periods	(67)
Sales reserve as of June 30, 2020	$	82

Other Noncurrent Liabilities

Other Long-Term LiabilitiesOther long-term liabilities were $7.7 million and $6.2 million as of June 30, 2020 and December 31, 2019, respectively. As of June 30, 2020 and December 31, 2019, the balance is primarily composed of long-term operating lease obligations of $6.8 million and $5.3 million, respectively. See Note 8, Leases for more information. Additionally, as of June 30, 2020 and December 31, 2019, the Company recorded $0.2 million in other long-term liabilities related to uncertain income tax positions (see Note 7, Income Taxes, of the Company’s 2019 Annual Report). Certain operating leases for the Company’s regional office facilities contain a restoration clause that requires the Company to restore the premises to its original condition. At each of June 30, 2020 and December 31, 2019, accrued restoration costs related to these leases amounted to $0.3 million. At each of June 30, 2020 and December 31, 2019, the Company also recorded a long-term liability for estimated defined benefit obligation related to a non-U.S. defined benefit plan for its Japan operations of $0.3 million (see Note 9, Employee Benefit Plans, of the Company’s 2019 Annual Report).

INVENTORIES (Tables)

6 Months Ended

Jun. 30, 2020

Inventory Disclosure [Abstract]

Schedule of inventory

Inventories as of June 30, 2020 and December 31, 2019, consisted of the following (in thousands):


	June 30, 2020		December 31, 2019
Raw materials	$	2,755	$	2,685
Finished goods	11,060		8,341
Inventory reserves for obsolescence	(496)		(874)
Total	$	13,319	$	10,152

STOCK-BASED COMPENSATION (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangement [Abstract]

Schedule of compensation cost

The Company recognized compensation expense as follows for the three and six months ended June 30 (in thousands):


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Total gross compensation expense	$	35	$	160	$	117	$	626
Total tax benefit associated with compensation expense	4		12		7		36
Total net compensation expense	$	31	$	148	$	110	$	590

Schedule of unrecognized compensation expense

As of June 30, 2020, the Company expects to record compensation expense in the future as follows (in thousands):


	Six months ending December 31, 2020		Year ending December 31,
					2021			2022			2023
Total gross unrecognized compensation expense	$	13	$	15		$	3		$	—
Tax benefit associated with unrecognized compensation expense	3		3			1			—
Total net unrecognized compensation expense	$	10	$	12		$	2		$	—

SHAREHOLDERS' EQUITY (Tables)

6 Months Ended

Jun. 30, 2020

Equity [Abstract]

Components of accumulated other comprehensive income

The after-tax components of accumulated other comprehensive income, are as follows (in thousands):


	Foreign Currency Translation		Pension Postretirement Benefit Obligation		Accumulated Other Comprehensive Income, Net
Balance as of December 31, 2019	$	3,435	$	322	$	3,757
Current-period change ⁽¹⁾	(1,086)		—		(1,086)
Balance as of June 30, 2020	$	2,349	$	322	$	2,671

⁽¹⁾No material amounts reclassified from accumulated other comprehensive income.

FAIR VALUE (Tables)

6 Months Ended

Jun. 30, 2020

Fair Value Disclosures [Abstract]

Fair value, assets measured on recurring basis

The table below presents the recorded amount of financial assets measured at fair value (in thousands) on a recurring basis as of June 30, 2020 and December 31, 2019.


June 30, 2020	Level 1		Level 2		Level 3		Total
Assets

Interest bearing deposits – various banks	$	8,620	—		—		$	8,620
Total assets	$	8,620	$	—	$	—	$	8,620
Amounts included in:
Cash and cash equivalents	$	3,908	$	—	$	—	$	3,908
Restricted cash	679		—		—		679
Long-term restricted cash	4,033		—		—		4,033
Total	$	8,620	$	—	$	—	$	8,620


December 31, 2019	Level 1		Level 2		Level 3		Total
Assets
Money Market Funds – Fidelity, US	$	5,000	$	—	$	—	$	5,000
Interest bearing deposits – various banks	8,962		—		—		8,962
Total assets	$	13,962	$	—	$	—	$	13,962
Amounts included in:
Cash and cash equivalents	$	8,636	$	—	$	—	$	8,636
Restricted cash	679		—		—		679
Long-term restricted cash	4,647		—		—		4,647
Total	$	13,962	$	—	$	—	$	13,962

SEGMENT INFORMATION (Tables)

6 Months Ended

Jun. 30, 2020

Segment Reporting [Abstract]

Net sales shipped to customers by geographic region


	Three Months Ended June 30,														Six Months Ended June 30,
Region	2020						2019						2020				2019
Americas	$	10.9	29.0	%	$	12.4	30.5	%	$	22.6	30.4	%	$	24.4	31.0	%
Asia/Pacific	23.5		62.5	%	24.8		60.9	%	45.0		60.6	%	47.6		60.5	%
EMEA	3.2		8.5	%	3.5		8.6	%	6.7		9.0	%	6.7		8.5	%
Totals	$	37.6	100.0	%	$	40.7	100.0	%	$	74.3	100.0	%	$	78.7	100.0	%

Product and pack information


	Three Months Ended June 30,						Six Months Ended June 30,
	2020		2019		2020		2019
Consolidated product sales	$	37.0	$	39.9	$	73.1	$	77.1
Consolidated pack sales and associate fees	0.4		0.6		0.8		1.2
Consolidated other	0.2		0.2		0.4		0.4
Consolidated total net sales	$	37.6	$	40.7	$	74.3	$	78.7

Long-lived assets, by geographic region


Region	June 30, 2020		December 31, 2019
Americas	$	4.6	$	5.1
Asia/Pacific	1.0		1.0
EMEA	—		—
Total	$	5.6	$	6.1

Inventory balances, by region


Region	June 30, 2020		December 31, 2019
Americas	$	6.4	$	5.4
Asia/Pacific	5.7		3.8
EMEA	1.2		1.0
Total	$	13.3	$	10.2

Leases (Tables)

6 Months Ended

Jun. 30, 2020

Leases [Abstract]

Schedule Of Maturities Of Operating And Finance Leases Liabilities [Table Text Block]

As of June 30, 2020 future minimum lease payments on operating and financing leases were as follows (in thousands):


	June 30, 2020
Maturity of lease liabilities	Operating Leases		Financing Leases
Remaining 2020	$	1,227	$	49
2021	2,151		94
2022	1,705		74
2023	1,159		45
2024	1,242		21
2025	865		1
Thereafter	1,528		—
Total minimum lease payments	$	9,877	$	284
Imputed interest	(1,178)		(22)
Present value of minimum lease payments	$	8,699	$	262

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)		6 Months Ended
	Jun. 25, 2020 shares	Jun. 30, 2020 USD ($) region	Sep. 30, 2020 USD ($)	Dec. 31, 2019 USD ($)
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Number of regions in which company sells products \| region		3
Credit card receivables		$ 2,400,000		$ 700,000
Cash and cash equivalents held in foreign bank accounts		17,000,000.0		18,200,000
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items]
Restricted cash		5,200,000		6,200,000
Accounts receivable, net of allowance		251,000		955,000
Allowance for doubtful accounts		700,000		700,000
Other assets		11,986,000		9,592,000
Deposits for building leases		2,000,000.0		2,200,000
Fair trade commission deposits		2,500,000		1,600,000
Indefinite lived intangible assets				200,000
Notes payable		1,000,000.0		1,100,000
Notes payable, current portion		889,000		739,000
Other long-term liabilities		7,727,000		6,214,000
Uncertain income tax position		200,000		200,000
Accrued lease restoration costs		300,000		300,000
Defined benefit plan obligation		300,000		300,000
Deferred commissions		1,650,000		1,758,000
Amortization of deferred commissions		900,000
Deferred revenue		4,801,000		4,416,000
Loyalty deferred revenue, ending balance		$ 3,064,000
Percentage of sale returns		1.50%
Accrued expenses		$ 8,162,000		8,209,000
Accrued Employee Benefits, Current		2,300,000
Non-inventory accrual, current		2,400,000		2,200,000
Accrued Professional Fees		800,000		900,000
Other Accrued Liabilities, Current		700,000		1,200,000
Accrued expenses		8,162,000		8,209,000
Other Assets, Current		12,000,000.0		9,600,000
Deferred Revenue, Revenue Recognized		2,400,000
Purchased shares \| shares	294,117
Other Borrowings		2,200,000	$ 2,243,687
South Korea
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items]
Net assets		$ 19,000,000.0		$ 19,200,000
Software Tools
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period		3 months
Associate Fees
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Line Items]
Revenue, remaining performance obligation, expected timing of satisfaction, period		12 months

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Schedule of Cash, Cash Equivalents, and Restricted Cash (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018
Cash And Cash Equivalents, Resticted Cash And Restricted Cash Equivalents [Roll Forward]
Cash and cash equivalents	$ 20,712	$ 24,762		$ 21,845
Restricted Cash and Cash Equivalents, Current	943	943		1,514
Restricted Cash and Cash Equivalents, Noncurrent	4,242	5,295		7,225
Cash, cash equivalents and restricted cash	$ 25,897	$ 31,000	$ 31,770	$ 30,584

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Loyalty Deferred Revenue (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2020	Dec. 31, 2019
Loyalty program
Loyalty deferred revenue, beginning balance	$ 3,127	$ 4,231
Loyalty points forfeited or expired	(1,659)	(4,348)
Loyalty points used	(4,649)	(9,127)
Loyalty points vested	5,124	11,320
Loyalty points unvested	1,121	1,051
Loyalty deferred revenue, ending balance	3,064	3,127
Deferred commissions	$ 1,650	$ 1,758

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Sales Returns (Details) - Allowance for Sales Returns - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2020	Jun. 30, 2020
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Sales reserves, beginning balance	$ 68	$ 68
Provision related to sales made in current period	1,037	488
Adjustment related to sales made in prior periods	31	4
Actual returns or credits related to current period	(973)	(411)
Actual returns or credits related to prior periods	$ (103)	(67)
Sales reserves, ending balance		$ 82

INVENTORIES (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Inventory Disclosure [Abstract]
Raw materials	$ 2,755	$ 2,685
Finished goods	11,060	8,341
Inventory reserves for obsolescence	(496)	(874)
Total	$ 13,319	$ 10,152

INCOME TAXES (Details) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
INCOME TAXES (Details) - USD ($) $ in Millions	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Income Tax Disclosure [Abstract]
Effective tax rate	12.30%	34.30%	(24.70%)	34.00%
U.S. Net Operating Loss Carryback			$ 1.2

EARNINGS (LOSS) PER SHARE (Details) - $ / shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings Per Share [Abstract]
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements			20	60
Diluted (in shares)	2,388	2,452	2,402	2,457
Average common stock closing price (in dollars per share)	$ 13.00	$ 17.29	$ 13.61	$ 18.12
Basic (in shares)	2,370	2,394	2,380	2,395
Antidilutive securities excluded from earnings per share, amount (in shares)	300	300	600	400

STOCK-BASED COMPENSATION - Narrative (Details) - $ / shares	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Apr. 17, 2017
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)			370,000
Number of shares available for grant (in shares)	144,393
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	5,000	15,000
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Weighted Average Grant Date Fair Value	$ 4.00	$ 6.88
Minimum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Percentages of stock option ownership considered for higher exercise price of option	10.00%
Vesting period of stock options	2 years
Maximum
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Option exercise price as percentages of closing exercise price of stock for specific shareholders	110.00%
Vesting period of stock options	3 years
Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of stock option plan	10 years
Incentive Stock Options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period of stock option plan	5 years

STOCK-BASED COMPENSATION - Recognized Compensation Expense (Details) - Stock Options - 2017 Plan - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total gross compensation expense	$ 35	$ 160	$ 117	$ 626
Total tax benefit associated with compensation expense	4	12	7	36
Total net compensation expense	31	$ 148	110	$ 590
Total gross unrecognized compensation expense
Six months ending December 31, 2018	13		13
2019	15		15
2020	3		3
2021	0		0
Tax benefit associated with unrecognized compensation expense
Six months ending December 31, 2018	3		3
2019	3		3
2020	1		1
2021	0		0
Total net unrecognized compensation expense
Six months ending December 31, 2018	10		10
2019	12		12
2020	2		2
2021	$ 0		$ 0

SHAREHOLDERS' EQUITY - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands							6 Months Ended
	Jun. 25, 2020	Jun. 12, 2020	May 29, 2020	May 27, 2020	Mar. 13, 2020	Feb. 14, 2020	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Common Stock
Repurchase of common stock	$ 5,000		$ 5,000
Treasury Stock, Shares, Acquired							306,123	4,039
Common stock, par value (in dollars per share)							$ 0.0001		$ 0.0001
Common stock price (in dollars per share)	$ 17.00
Purchased shares	294,117
Common stock, shares outstanding (in shares)							2,101,240		2,381,131
Dividends [Abstract]
Dividend payable per share (in dollars per share)				$ 0.125		$ 0.125
Dividends paid		$ 300			$ 300

SHAREHOLDERS' EQUITY - Accumulated Other Comprehensive Income (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2020 USD ($)
AOCI Attributable to Parent, Net of Tax [Roll Forward]
43921	$ 27,275
44012	24,639
Accumulated Other Comprehensive Income, Net
AOCI Attributable to Parent, Net of Tax [Roll Forward]
43921	3,757
Current-period change	(1,086)
44012	2,671
Foreign Currency Translation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
43921	3,435
Current-period change	(1,086)
44012	2,349
Pension Postretirement Benefit Obligation
AOCI Attributable to Parent, Net of Tax [Roll Forward]
43921	322
Current-period change	0
44012	$ 322

LITIGATION (Details) $ in Millions	1 Months Ended
LITIGATION (Details) $ in Millions	Jan. 31, 2014 USD ($)
Busan Custom Office [Member] \| Pending Litigation
Loss Contingencies [Line Items]
Damages paid	$ 1.0

FAIR VALUE (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019
Amounts included in:
Restricted cash	$ 5,200	$ 6,200
Recurring Basis
Assets
Money Market Funds – JPMorgan Chase, US		5,000
Interest bearing deposits – various banks	8,620	8,962
Amounts included in:
Cash and cash equivalents	3,908	8,636
Restricted cash	679	679
Long-term restricted cash	4,033	4,647
Total	8,620	13,962
Recurring Basis \| Level 1
Assets
Money Market Funds – JPMorgan Chase, US		5,000
Interest bearing deposits – various banks	8,620	8,962
Amounts included in:
Cash and cash equivalents	3,908	8,636
Restricted cash	679	679
Long-term restricted cash	4,033	4,647
Total	8,620	13,962
Recurring Basis \| Level 2
Assets
Money Market Funds – JPMorgan Chase, US		0
Interest bearing deposits – various banks	0	0
Amounts included in:
Cash and cash equivalents	0	0
Restricted cash	0	0
Long-term restricted cash	0	0
Total	0	0
Recurring Basis \| Level 3
Assets
Money Market Funds – JPMorgan Chase, US		0
Interest bearing deposits – various banks	0	0
Amounts included in:
Cash and cash equivalents	0	0
Restricted cash	0	0
Long-term restricted cash	0	0
Total	$ 0	$ 0

SEGMENT INFORMATION - Narrative (Details)	6 Months Ended
SEGMENT INFORMATION - Narrative (Details)	Jun. 30, 2020 region country
Segment Reporting [Abstract]
Number of countries in which entity network marketing and distribution channels operates	24
Number of countries in which company operates facilities	11
Number of countries in which entity sells products	25
Number of regions in which company sells products \| region	3

SEGMENT INFORMATION - Revenue by Geographic Location (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Revenue from External Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 37,647	$ 40,711	$ 74,252	$ 78,684
Percent of total revenue	100.00%	100.00%	100.00%	100.00%
Long-lived assets	$ 5,600		$ 5,600		$ 6,100
Inventories, net	13,319		13,319		10,152
Consolidated product sales
Revenue from External Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	37,000	$ 39,900	73,100	$ 77,100
Consolidated pack sales and associate fees
Revenue from External Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	400	600	800	1,200
Consolidated other
Revenue from External Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	200	200	400	400
Americas
Revenue from External Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 10,900	$ 12,400	$ 22,600	$ 24,400
Percent of total revenue	29.00%	30.50%	30.40%	31.00%
Asia/Pacific
Revenue from External Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 23,500	$ 24,800	$ 45,000	$ 47,600
Percent of total revenue	62.50%	60.90%	60.60%	60.50%
EMEA
Revenue from External Customer [Line Items]
Revenue from Contract with Customer, Excluding Assessed Tax	$ 3,200	$ 3,500	$ 6,700	$ 6,700
Percent of total revenue	8.50%	8.60%	9.00%	8.50%
Reportable Geographical Components \| Americas
Revenue from External Customer [Line Items]
Long-lived assets	$ 4,600		$ 4,600		5,100
Inventories, net	6,400		6,400		5,400
Reportable Geographical Components \| Asia/Pacific
Revenue from External Customer [Line Items]
Long-lived assets	1,000		1,000		1,000
Inventories, net	5,700		5,700		3,800
Reportable Geographical Components \| EMEA
Revenue from External Customer [Line Items]
Long-lived assets	0		0		0
Inventories, net	$ 1,200		$ 1,200		$ 1,000

Leases (Details) - USD ($) $ in Thousands	Jun. 30, 2020	Dec. 31, 2019	Jun. 30, 2019
Lessor, Lease, Description [Line Items]
Finance and Operating Lease Assets	$ 7,615		$ 4,800
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year	1,227
Finance Lease, Liability, Payments, Remainder of Fiscal Year	49
Lessee, Operating Lease, Liability, Payments, Due Year Two	2,151
Finance Lease, Liability, Payments, Due Year Two	94
Lessee, Operating Lease, Liability, Payments, Due Year Three	1,705
Finance Lease, Liability, Payments, Due Year Three	74
Lessee, Operating Lease, Liability, Payments, Due Year Four	1,159
Finance Lease, Liability, Payments, Due Year Four	45
Lessee, Operating Lease, Liability, Payments, Due Year Five	1,242
Finance Lease, Liability, Payments, Due Year Five	21
Finance Lease Liability Payments Due Year Six	1
Lessee Operating Lease Liability Payments Due Year Six	865
Lessee Operating Lease Liability Payments Due After Year Six	1,528
Finance Lease, Liability, Payments, Due after Year Five	0
Lessee, Operating Lease, Liability, Payments, Due	9,877
Finance Lease, Liability, Payment, Due	284
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(1,178)
Finance Lease, Liability, Undiscounted Excess Amount	(22)
Operating Lease, Liability	8,699
Finance Lease, Liability	262
Finance and Operating Lease Liabilities	$ 8,961		6,236
Operating Lease, Weighted Average Remaining Lease Term	5 years 8 months 23 days
Operating Lease, Weighted Average Discount Rate, Percent	4.10%
Finance Lease, Weighted Average Remaining Lease Term	3 years 2 months 8 days
Finance Lease, Weighted Average Discount Rate, Percent	5.60%
Property, Plant and Equipment, Type [Domain]
Lessor, Lease, Description [Line Items]
Finance Lease, Right-of-Use Asset	$ 283		416
Accrued Expenses [Member]
Lessor, Lease, Description [Line Items]
Operating Lease, Liability, Current	1,906	$ 1,600	1,567
Current portion of capital leases [Member]
Lessor, Lease, Description [Line Items]
Finance Lease, Liability, Current	84		104
Other longterm liabilities [Member]
Lessor, Lease, Description [Line Items]
Operating Lease, Liability, Noncurrent	6,793	5,300	4,343
Finance Lease, Liability, Noncurrent	178		222
Other Assets [Member]
Lessor, Lease, Description [Line Items]
Operating Lease, Right-of-Use Asset	$ 7,332	$ 5,600	$ 4,384

SUBSEQUENT EVENTS (Details) - USD ($)	Sep. 30, 2020	Jun. 30, 2020
Subsequent Events [Abstract]
Other Borrowings	$ 2,243,687	$ 2,200,000

Label	Element	Value
Sales Returns and Allowances [Member]
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount	us-gaap_ValuationAllowancesAndReservesBalance	$ 76,000