ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

3 Months Ended

Mar. 31, 2014

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Loyalty deferred revenue

The deferred revenue associated with the loyalty program at March 31, 2014 was $7.7 million and at December 31, 2013 was $5.5 million. Deferred revenue consisted primarily of: (i) sales of packs and products shipped but not received by the customers by the end of the respective period; (ii) revenue from the loyalty program; and (iii) prepaid registration fees from customers planning to attend a future corporate-sponsored event. In total current assets, the Company defers commissions on (i) the sales of packs and products shipped but not received by the customers by the end of the respective period and (ii) the loyalty program. Deferred commissions were $4.1 million and $2.7 million at March 31, 2014 and December 31, 2013, respectively.

Loyalty program		(in thousands)
Loyalty deferred revenue as of June 30, 2013	$	—
Loyalty points forfeited		(1,136	)
Loyalty points used		(723	)
Loyalty points vested		5,072
Loyalty points unvested		2,243
Loyalty deferred revenue as of December 31, 2013	$	5,456

Loyalty deferred revenue as of January 1, 2014	$	5,456
Loyalty points forfeited		(936	)
Loyalty points used		(570	)
Loyalty points vested		1,027
Loyalty points unvested		2,728
Loyalty deferred revenue as of March 31, 2014	$	7,705

Sales return reserve

We estimate a sales return reserve for expected sales refunds based on our historical experience over a rolling six- month period. If actual results differ from our estimated sales return reserve due to various factors, the amount of revenue recorded each period could be materially affected. Historically, our 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 averaged 1.5% or less of our gross sales. For the three months ended March 31, 2014 our sales return reserve consisted of the following (in thousands):

Sales reserve as of January 1, 2014	$	238
Provision related to sales made in current period		473
Adjustment related to sales made in prior periods		(55	)
Actual returns or credits related to current period		(206	)
Actual returns or credits related to prior periods		(182	)
Sales reserve as of March 31, 2014	$	268