Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Revision of Previously Issued Financial Statements for Correction of Immaterial Errors

The following tables summarize the impact and financial statement line items affected by the revisions:



	As of June 30, 2016 (in thousands)
Consolidated Balance Sheet:	As Reported			Adjustments			As Revised
Current deferred income tax asset	$	2,776		$	(516	)	$	2,260
Prepaid expenses and deposits	5,082			1,219			6,301
Total current assets	42,409			703			43,112
Long-term deferred income tax asset	1,130			(107		)	1,023
Total assets	50,259			596			50,855
Income tax payable	1,206			2,078			3,284
Total current liabilities	28,550			2,078			30,628
Total liabilities	38,128			2,078			40,206
Additional paid-in capital	120,150			(908		)	119,242
Accumulated deficit	(108,076		)	(524		)	(108,600		)
Accumulated other comprehensive income (loss)	43			(50		)	(7		)
Total stockholders’ equity	12,131			(1,482		)	10,649
Total liabilities and stockholders' equity	50,259			596			50,855



	For the year ended June 30, 2016 (in thousands, except per share data)
Statement of Operations and Comprehensive Income:	As Reported			Adjustments			As Revised
Income tax expense	$	(2,665	)	$	87		$	(2,578	)
Net income	6,019			87			6,106
Net income per share:
Basic	0.44						0.44
Diluted	0.41						0.42
Foreign currency translation adjustment	294			(50		)	244
Other comprehensive income (loss), net of tax:	294			(50		)	244
Comprehensive income	6,313			37			6,350



	For the year ended June 30, 2015 (in thousands, except per share data)
Statement of Operations and Comprehensive Income:	As Reported			Adjustments		As Revised
Income tax expense	$	(3,666	)	$	138	$	(3,528	)
Net income	6,987			$	138	$	7,125
Net income per share:
Basic	0.50					$	0.51
Diluted	0.49					$	0.50
Comprehensive income	6,852			$	138	$	6,990



	Statements of Stockholders' Equity
	Common Stock			Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total
(In thousands)	Shares	Amount		Additional Paid-In Capital			Accumulated Deficit			Accumulated Other Comprehensive Income (Loss)			Total
Balances, June 30, 2014, as reported	14,601	$	15	$	115,331		$	(111,240	)	$	(116	)	$	3,990
Adjustments	—	—		(908		)	(749		)	—			(1,657		)
Balances, June 30, 2014, as revised	14,601	$	15	$	114,423		$	(111,989	)	$	(116	)	$	2,333

Balances, June 30, 2015, as reported	13,958	$	14	$	117,657		$	(114,095	)	$	(251	)	$	3,325
Adjustments	—	—		(908		)	(611		)	—			(1,519		)
Balances, June 30, 2015, as revised	13,958	$	14	$	116,749		$	(114,706	)	$	(251	)	$	1,806

Balances, June 30, 2016, as reported	14,028	$	14	$	120,150		$	(108,076	)	$	43		$	12,131
Adjustments	—	—		(908		)	(524		)	(50		)	(1,482		)
Balances, June 30, 2016, as revised	14,028	$	14	$	119,242		$	(108,600	)	$	(7	)	$	10,649



	For the year ended June 30, 2016 (in thousands)
Consolidated Statement of Cash Flows	As Reported			Adjustments			As Revised
Cash Flows from Operating Activities:
Net income	$	6,019		$	87		$	6,106
Deferred income tax	(2,491		)	373			(2,118		)
Prepaid expenses and deposits	392			(748		)	(356		)
Income tax payable	1,143			338			1,481
Net Cash Provided by Operating Activities	5,986			50			6,036
Foreign Currency Effect on cash	251			(50		)	201
Increase (decrease) in cash and cash equivalents	(6,022		)	—			(6,022		)



	For the year ended June 30, 2015 (in thousands)
	As Reported			Adjustments			As Revised
Cash Flows from Operating Activities:
Net income	$	6,987		$	138		$	7,125
Deferred income tax	91			(887		)	(796		)
Prepaid expenses and deposits	1,486			(217		)	1,269
Income tax payable	—			966			966
Net Cash Provided by Operating Activities	13,221			—			13,221
Increase (decrease) in cash and cash equivalents	(6,482		)	—			(6,482		)

Components of inventory

As of June 30, 2017 and 2016, inventory consisted of (in thousands):



	June 30,
	2017		2016
Finished goods	$	7,817	$	14,852
Raw materials	8,758		10,264
Total inventory	$	16,575	$	25,116

Property and equipment

Property and equipment are recorded at cost and depreciated using the straight-line method over the following useful lives:



	Years
Equipment (includes computer hardware and software)	3
Furniture and fixtures	5
Vehicles	5

Property and equipment, net consist of (in thousands):



	June 30,
	2017			2016
Equipment (includes computer hardware and software)	$	7,420		$	6,402
Furniture and fixtures	1,536			1,485
Leasehold improvements	3,421			3,497
Vehicles	51			51
Accumulated depreciation	(9,301		)	(7,979		)
Total property and equipment, net	$	3,127		$	3,456

Reconciliation of earnings per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share

The following is a reconciliation of net income per share and the weighted-average common shares outstanding for purposes of computing basic and diluted net income per share (in thousands, except per share amounts):



	Years ended June 30,
	2017		2016		2015
			(As revised)		(As revised)
Numerator:
Net income	$	1,608	$	6,106	$	7,125
Denominator:
Basic weighted-average common shares outstanding	13,881		13,730		13,899
Effect of dilutive securities:
Stock awards and options	237		735		180
Warrants	—		66		71
Diluted weighted-average common shares outstanding	14,118		14,531		14,150
Net income per share, basic	$	0.12	$	0.44	$	0.51
Net income per share, diluted	$	0.11	$	0.42	$	0.50

Revenues from unaffiliated customers by geographic regions and significant geographic area

Revenues by geographic area are as follows (in thousands):



	Years ended June 30,
	2017		2016		2015
Americas	$	150,841	$	158,291	$	138,118
Asia/Pacific & Europe	48,648		48,249		52,218
Total revenues	$	199,489	$	206,540	$	190,336

Additional information as to the Company’s revenue from operations in the most significant geographical areas is set forth below (in thousands):



	Years ended June 30,
	2017		2016		2015
United States	$	144,842	$	152,830	$	132,831
Japan	$	39,390	$	36,343	$	41,428

Revenues by major product line

The following table shows revenues by major product line for the years ended June 30, 2017, 2016 and 2015.



	For the years ended June 30,
	2017				2016				2015
Protandim^®product line	$	130,873	65.6	%	$	128,019	62.0	%	$	120,967	63.6	%
TrueScience^®product line	24,440		12.3	%	32,914		15.9	%	38,287		20.1	%
Other	44,176		22.1	%	45,607		22.1	%	31,082		16.3	%
Total	$	199,489	100.0	%	$	206,540	100.0	%	$	190,336	100.0	%