Segment Information

12 Months Ended

Dec. 31, 2019

Note 11. Segment Information

Segments

We operate in two different segments: household products and personal care products. We have chosen to organize our business around these segments based on differences in the products sold. Accounting policies for our segments are the same as those described in Note 1. We evaluate segment performance based on segment income or loss before income taxes.

Due to changes in our business as we acquired and began to manufacture additional products in recent periods under our Personal Care Products segment, the Company implemented a change in the allocation of certain operational and administrative expenses to more accurately reflect our operational activity. For comparison purposes, the Company presented 2018 results to reflect the revised allocation of these costs.

The following provides information on our segments as of and for the years ended December 31:

	2019
	Household Products			Personal Care Products			Corporate		Total
Net sales	$	5,421		$	23,029		$	-	$	28,450
Operating (loss) income		(420	)		(931	)		-		(1,351	)
Identifiable assets		7,827			17,003			1,261		26,091
Capital and intangible asset expenditures		5,970			-			-		5,970
Depreciation and amortization		107			689			-		796

	2018
	Household Products			Personal Care Products			Corporate		Total
Net sales	$	5,157		$	31,901		$	-	$	37,058
Operating (loss) income		(297	)		3,208			-		2,911
Identifiable assets		2,297			23,436			742		26,475
Capital and intangible asset expenditures		18			204			-		222
Depreciation and amortization		123			695			-		818

Corporate assets noted above are comprised of our income tax receivable and deferred tax assets.

Customers

Net sales to significant customers were the following for the years ended December 31, 2019 and 2018, respectively:

	2019		2018
Walmart	$	7,703	$	9,939
Ulta		7,528		8,947
HK NFS		2,469		6,401

Outstanding accounts receivable from significant customers represented the following percentages of our total accounts receivable as of December 31, 2019 and 2018, respectively:

	December 31, 2019			December 31, 2018
Walmart		45.0	%		45.7	%
Ulta		21.2	%		26.4	%

A loss of any of our significant customers could have a material adverse effect on us because it is uncertain whether our consumer base served by these customers would purchase our products at other retail outlets. Our distribution agreement with HK NFS renewed on January 1, 2020 and is effective for a one-year term. This agreement automatically renews for additional successive one-year terms unless and until either party provides notice of nonrenewal at least 90 days before the end of the then-current term. No long-term contracts exist between us and our other significant customers.