Segment and Geographical Information

12 Months Ended

Dec. 31, 2015

Segment Reporting [Abstract]

Segment and Geographical Information

The Company offers a wide variety of products to support a healthy lifestyle including; Nutritional Supplements, Sports and Energy Drinks, Health and Wellness, Weight Loss, Gourmet Coffee, Skincare and Cosmetics, Lifestyle Services, digital products including Scrap books and Memory books, Packaged Foods, Pharmacy Discount Cards, and Clothing and Jewelry line. The Company’s business is classified by management into two reportable segments: direct selling and commercial coffee.

The Company’s segments reflect the manner in which the business is managed and how the Company allocates resources and assesses performance. The Company’s chief operating decision maker is the Chief Executive Officer. The Company’s chief operating decision maker evaluates segment performance primarily based on revenue and segment operating income. The principal measures and factors the Company considered in determining the number of reportable segments were revenue, gross margin percentage, sales channel, customer type and competitive risks. In addition, each reporting segment has similar products and customers, similar methods of marketing and distribution and a similar regulatory environment.

The accounting policies of the segments are consistent with those described in the summary of significant accounting policies. Segment revenue excludes intercompany revenue eliminated in the consolidation. The following tables present certain financial information for each segment (in thousands):

	Years ended
	December 31,
	2015			2014
Revenues
Direct selling	$	138,927		$	116,365
Commercial coffee		17,670			17,678
Total revenues	$	156,597		$	134,043
Gross profit
Direct selling	$	93,613		$	76,530
Commercial coffee		(644	)		(205	)
Total gross margin	$	92,969		$	76,325
Net (loss) income
Direct selling	$	3,144		$	5,274
Commercial coffee		(4,850	)		95
Total net (loss) income	$	(1,706	)	$	5,369
Capital expenditures
Direct selling	$	1,396		$	1,140
Commercial coffee		2,223			5,263
Total capital expenditures	$	3,619		$	6,403

	December 31,
	2015		2014
Total assets
Direct selling	$	38,363	$	36,149
Commercial coffee		24,422		19,583
Total assets	$	62,785	$	55,732

Total tangible assets, net located outside the United States are approximately $5.2 million as of December 31, 2015. For the year ended December 31, 2014, total assets, net located outside the United States were approximately $4.2 million.

The Company conducts its operations primarily in the United States. The Company also sells its products in 70 different countries. The following table displays revenues attributable to the geographic location of the customer (in thousands):

	Years ended
	December 31,
	2015		2014
Revenues
United States	$	145,259		$	125,638
International		11,338			8,405
Total revenues	$	156,597		$	134,043