Significant Accounting Policies (Policies)

3 Months Ended

Mar. 31, 2018

Accounting Policies [Abstract]

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the instructions to Form

10

-Q and reflect all adjustments (which primarily include normal recurring accruals) which management believes are necessary to present fairly the financial position, results of operations and cash flows. These statements, however, do

not

include all information and footnotes necessary for a complete presentation of financial position, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States. Interim results

may

not

necessarily be indicative of results that

may

be expected for any other interim period or for the year as a whole. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the annual report on Form

10

-K for the year ended

December 31, 2017,

filed

March 29, 2018

with the Securities and Exchange Commission.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates

The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from those estimates.

New Accounting Pronouncements, Policy [Policy Text Block]

New Accounting Pronouncements –

Not

Yet Adopted

In

February 2016,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Updated (“ASU”)

No.

2016

-

2,

Leases (Topic

842

)

which supersedes the existing lease guidance. This update requires lessees to recognize a lease liability and a lease asset for all leases, including operating leases, with a lease term greater than

twelve

months on its balance sheet. The update also expands the required quantitative and qualitative disclosures surrounding leases. This update is effective for fiscal years beginning after

December 15, 2018

and interim periods within those fiscal years, with earlier application permitted. The Company expects the adoption of this standard to result in the recognition of right-of-use assets and lease liabilities

not

currently recorded in the Company’s consolidated financial statements. The Company is evaluating its transition method and other effects that the new standard will have on its consolidated financial statements and related disclosures.

New Accounting Pronouncements – Adopted

January 1, 2018

On

January 1, 2018,

the Company adopted ASU

No.

2014

-

09,

Revenue from Contracts with Customers

(including amendments), and applied the new revenue standard to all contracts using the modified retrospective method. Under this method, prior quarters are

not

restated. Upon adoption, the Company recognized the cumulative effect of applying the new revenue standard as a reduction of

$367,568

to the opening retained earnings (accumulated deficit) balance.

In accordance with the new revenue standard requirements, the disclosure of the impact of adoption to the Company’s financial position and results from operations are as follows:

	March 31, 2018
	Balance at			Adjustments			Balance at
	December 31			Due to			January 1
	2017			ASU 2014-09			2018
Liabilities and stockholders' equity
Accumulated deficit	$	(10,040,229	)	$	(367,568	)	$	(10,407,797	)
Deferred revenue		-			367,568			367,568

	Three Months Ended March 31, 2018
				Without			Effect of
				Adoption of			Change
	As Reported			ASU 2014-09			Higher/(Lower)
Operating results
Net sales	$	10,003,239		$	9,991,047		$	12,192
Net income (loss)		(238,305	)		(250,497	)		12,192

The new revenue standard defines a

five

step process to recognize revenues. Under this new standard, the Company determined that the timeframe for recognizing the revenue performance obligation for membership-fee type revenue would be lengthened to more closely correlate with the distributor and customer membership terms of generally

twelve

months. Based upon all contracts still in existence as of

December 31, 2017,

the adoption of the new revenue standard resulted in the recognition of a deferred revenue liability balance of

$367,568.

Prior to adoption of the new revenue standard, the Company’s primary source of revenue has been from the sale of nutritional products to the Company’s independent distributors whereby revenue is recognized when product is shipped and risk of loss has passed to the customer; and the Company’s nutritional product revenue recognition policy does

not

change under the new revenue standard.

The Company does

not

anticipate that the adoption of the new standard will be material to net sales and net income on an ongoing basis.

Description of Products and Services by

Region and Category

The Company operates in

one

reportable segment, a network marketing segment consisting of

six

operating units that sell nutritional and dietary products to a sales force of independent distributors that sell the products directly to customers. These operating units are based on geographic regions, as follows:

	Three months ended March 31
	2018		2017
Net sales to external customers
United States	$	7,670,061	$	10,258,939
Australia/New Zealand		231,928		259,427
Canada		242,120		264,303
Mexico		107,371		157,317
Europe (1)		1,164,884		1,200,774
Asia (2)		586,875		637,022
Total net sales	$	10,003,239	$	12,777,782

( 1 )	Europe consists of United Kingdom, Ireland, France, Germany, Austria, and the Netherlands.
( 2 )	Asia consists of Philippines, Malaysia, Singapore, and Indonesia.

The Company classifies its sales into

two

categories of sales products plus handling & freight income. Net sales by product category, as follows:

	Three months ended March 31
	2018		2017
Net sales by product category
Nutritional and dietary supplements	$	9,069,356	$	11,419,619
Sales aids and other		322,025		415,497
Handling & freight income		611,858		942,666
Total net sales	$	10,003,239	$	12,777,782