SUBSEQUENT EVENTS

12 Months Ended

Dec. 31, 2011

Notes To Financial Statements [Abstract]

Subsequent Events

NOTE 17: SUBSEQUENT EVENTS

On January 9, 2012, the Company held a Special Meeting of Shareholders where shareholders approved an amendment to the Company’s Amended and Restated Articles of Incorporation to effect a reverse stock split of the Company’s common stock at a specific ratio within a range from 1-for-10 to 1-for-15 and granted authorization to the Board of Directors to determine, in its discretion, the timing and the specific ratio of the reverse stock split. At a subsequent Board of Directors’ meeting held after the shareholders’ meeting, the Board of Directors passed a resolution to set the ratio for the stock split at 1-for-10.

The reverse stock split became effective as of 11:59 p.m. on January 13, 2012. The trading of the Company’s common stock on Nasdaq on a split-adjusted basis began at the opening of trading on January 17, 2012. The primary purposes of the reverse stock split were to increase the per-share market price of the Company’s common stock in order to maintain its listing on Nasdaq, encourage investor interest in the Company, and promote greater liquidity for the Company’s existing shareholders. As previously announced, the Company was provided an initial period of 180 calendar days, or until February 7, 2012, to maintain a closing bid price of at least $1.00 per share for 10 consecutive trading days, enabling the Company to retain its listing on Nasdaq.

On January 31, 2012, the Company received a letter from The NASDAQ Stock Market confirming that the Company had regained compliance with the minimum bid price requirement for continued listing on Nasdaq. The letter stated that The NASDAQ Stock Market staff had determined that for the last 10 consecutive business days, from January 17, 2012 to January 30, 2012, the closing bid price of the Company's common stock had been at $1.00 per share or greater and accordingly, the Company had regained compliance with Listing Rule 5450(a)(1).

On March 1, 2012, the Company reached a settlement in the previously disclosed lawsuit, Susan Shon vs. Mannatech. The amount of the settlement was recorded in other operating costs for the year ended December 31, 2011. For more information, see Note 13, “Litigation”.

On March 16, 2012, the Company reached a settlement in the previously disclosed lawsuit, Marinova vs. Mannatech. The amount of the settlement payment was recorded in other operating costs for the year ended December 31, 2011. For more information, see Note 13, “Litigation”.

On March 21, 2012, the Board of Directors adopted resolutions amending the June 2004 Plan to clarify that the maximum number of shares of common stock that the Company is authorized to repurchase in the open market under the June 2004 Plan is up to the lesser of (i) 130,000 shares and (ii) $1,300,000 in shares.  The Board of Directors also clarified that in the event of any further splits of the Company’s common stock, the number of shares the Company will be authorized to repurchase under such amended June 2004 Plan shall automatically adjust according to the ratio set by the Board of Directors.