Modification to Obligation for Purchase of Distributorship

9 Months Ended

Sep. 30, 2012

Modification To Obligation For Purchase Of Distributorship [Abstract]

Modification To Obligation For Purchase Of Distributorship [Text Block]

Note 7-- Modification to Obligation for Purchase of Distributorship

On August 31, 2009, the Company acquired an independent Reliv distributorship from its owner ("Seller") which resulted in the Seller financing $1,343,881 of the purchase price over a period of seven years with monthly payments of principal and interest totaling $18,994.

At June 30, 2012, the Company's remaining principal balance due to the Seller under this transaction was approximately $856,000. On July 17, 2012, the Company and Seller entered into an Agreement to modify the Company's remaining obligation to equal twelve consecutive monthly payments of principal and interest of $37,500 with the first payment commencing in July 2012. The Company has presented the non-cash gain of $410,320 relating to this modification as Other Income / (Expense) in the accompanying condensed consolidated statements of net income and comprehensive income (loss). At September 30, 2012, the Company's remaining principal balance due to the Seller was approximately $335,000.