Note 11 - Segment Information

3 Months Ended

Mar. 31, 2024

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

11. SEGMENT INFORMATION

The Company sells products to a member network that operates in a seamless manner from market to market, except for the China market where it sells to some consumers through an e-commerce platform, and the Russia and Kazakhstan market where the Company’s engagement of a third-party service provider results in a different economic structure than its other markets. Otherwise, the Company believes that all of its other operating segments have similar economic characteristics and are similar in the nature of the products sold, the product acquisition process, the types of customers products are sold to, the methods used to distribute the products, and the nature of the regulatory environment. Therefore, the Company aggregates its other operating segments (including its Hong Kong operating segment) into a single reporting segment (the “Primary Reporting Segment”).

The Company reviews its net sales and operating income (loss) by operating segment, and reviews its assets and capital expenditures on a consolidated basis and not by operating segment. As such, net sales and operating income (loss) are presented by reportable segment and assets and capital expenditures by operating segment are not presented. Segment operating income is adjusted for certain direct costs and commission allocation.

The Company’s operating information by geographic area are as follows (in thousands):

	Three Months Ended March 31,
	2024			2023
Net sales:
Primary Reporting Segment	$	10,466		$	11,331
China		384			416
Russia and Kazakhstan		101			114
Total net sales	$	10,951		$	11,861
Income (loss) from operations:
Primary Reporting Segment	$	1,626		$	1,827
China		(94	)		(20	)
Russia and Kazakhstan		(40	)		(58	)
Income from operations for reportable segments, net		1,492			1,749
Unallocated corporate expenses		(1,857	)		(2,143	)
Other income, net		563			681
Income before income taxes	$	198		$	287

The Company’s net sales by geographic area are as follows (in thousands):

	Three Months Ended March 31,
	2024		2023
Net sales from external customers:
United States	$	262	$	279
Canada		111		170
Peru		220		327
Hong Kong1		9,174		9,673
China		384		416
Taiwan		337		454
Japan		66		82
Malaysia and Singapore		53		85
Russia and Kazakhstan		101		114
Europe		152		186
Other foreign countries		91		75
Total net sales	$	10,951	$	11,861

¹ Substantially all of the Company's Hong Kong revenues are derived from the sale of products that are delivered to members in China. See “Item 1A. Risk Factors” in our most recent Annual Report on Form 10-K.