ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)

9 Months Ended

Sep. 30, 2014

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract]

Loyalty deferred revenue

The deferred revenue associated with the loyalty program at September 30, 2014 and December 31, 2013, respectively, was $9.8 million and $5.5 million. 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 $5.1 million and $2.7 million at September 30, 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 applied		(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		(3,392	)
Loyalty points applied		(8,616	)
Loyalty points vested		14,529
Loyalty points unvested		1,829
Loyalty deferred revenue as of  September 30, 2014	$	9,806

Sales return reserve

For the nine months ended September 30, 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		1,149
Adjustment related to sales made in prior periods		10
Actual returns or credits related to current period		(916	)
Actual returns or credits related to prior periods		(249	)
Sales reserve as of September 30, 2014	$	232