Lifevantage Corp 10-K, filed Aug 18, 2020

Lifevantage Corp (LFVN)

10-K 2020-08-18 For: 2020-06-30

Added on April 10, 2026

About this 10-K

Lifevantage Corp filed this 10-K on August 18, 2020, covering the fiscal year ended June 30, 2020.

Headline figures

Fiscal year ended June 30, 2020, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $232.92M; up 3.1% from $225.96M a year earlier
Net income: $11.55M; up 55.5% from net income of $7.43M a year earlier
Diluted EPS: $0.79; up 58.0% from $0.50 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


			Page
PART I
Item 1. Business			5
Item 1A. Risk Factors			20
Item 1B. Unresolved Staff Comments			34
Item 2. Properties			34
Item 3. Legal Proceedings			34
Item 4. Mine Safety Disclosures			34
PART II
Item 5. Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities			34
Item 6. Selected Financial Data			36
Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations			37
Item 7A. Quantitative and Qualitative Disclosures About Market Risk			47
Item 8. Financial Statements and Supplementary Data			47
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure			48
Item 9A. Controls and Procedures			48
Item 9B. Other Information			48
PART III
Item 10. Directors, Executive Officers and Corporate Governance			49
Item 11. Executive Compensation			49
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters			49
Item 13. Certain Relationships and Related Transactions, and Director Independence			49
Item 14. Principal Accountant Fees and Services			49
PART IV
Item 15. Exhibits, Financial Statement Schedules			49
Signatures			52


	For the fiscal years ended June 30,
	2020						2019						2018
Americas	$	166,336	71.4	%	$	163,236	72.2	%	$	151,609	74.6	%
Asia/Pacific & Europe	66,579		28.6	%	62,722		27.8	%	51,595		25.4	%
Total	$	232,915	100.0	%	$	225,958	100.0	%	$	203,204	100.0	%


Measured Period	LFVN		Nasdaq Composite		Peer Group
June 30, 2015	$	100.00	$	100.00	$	100.00
June 30, 2016	$	366.58	$	98.32	$	91.61
June 30, 2017	$	116.71	$	126.14	$	113.47
June 30, 2018	$	171.70	$	155.91	$	134.32
June 30, 2019	$	349.87	$	168.04	$	104.08
June 30, 2020	$	364.42	$	213.32	$	101.92


	Years Ended June 30,
	2020		2019		2018		2017		2016
(In thousands, except per share data)
Statement of Operations Data:
Revenue, net	$	232,915	$	225,958	$	203,204	$	199,489	$	206,540
Cost of sales	37,964		37,973		34,848		33,456		33,932
Gross profit	194,951		187,985		168,356		166,033		172,608
Operating expenses:
Commissions and incentives	111,571		108,620		98,193		96,662		103,120
Selling, general and administrative	67,914		69,551		59,840		64,922		56,074
Total operating expenses	179,485		178,171		158,033		161,584		159,194
Operating income	15,466		9,814		10,323		4,449		13,414
Other expense:
Interest expense	(120)		(323)		(456)		(570)		(3,321)
Other expense, net	(685)		(261)		(319)		(969)		(1,409)

Total other expense	(805)		(584)		(775)		(1,539)		(4,730)
Income before income taxes	14,661		9,230		9,548		2,910		8,684
Income tax expense	(3,112)		(1,801)		(3,787)		(1,302)		(2,578)
Net income	$	11,549	$	7,429	$	5,761	$	1,608	$	6,106
Net income per share:
Basic	$	0.82	$	0.53	$	0.41	$	0.12	$	0.44
Diluted	$	0.79	$	0.50	$	0.41	$	0.11	$	0.42
Weighed-average shares outstanding:
Basic	14,105		14,055		13,992		13,881		13,730
Diluted	14,599		14,980		14,136		14,118		14,531


	As of June 30,
	2020		2019		2018		2017		2016
(In thousands)
Balance Sheet Data:
Cash and cash equivalents	$	22,138	$	18,824	$	16,652	$	11,458	$	7,883
Working capital	18,849		16,993		15,133		12,191		12,484
Total assets	58,877		55,273		51,142		45,249		50,855
Current liabilities	25,019		26,195		23,805		23,355		30,628
Long-term debt, net of unamortized discount	—		—		3,412		5,440		7,409
Total liabilities	25,623		28,074		29,195		30,722		40,206
Total stockholders' equity	33,254		27,199		21,947		14,527		10,649


☒			ANNUAL REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.


☐			TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934.


	Payments due by period
Contractual Obligations	Total		Less than 1 year		1-3 years		3-5 years		Thereafter
Operating lease obligations ⁽¹⁾	$	22,614	$	2,549	$	5,310	$	3,298	$	11,457
Other operating obligations ⁽²⁾	20,981		13,231		6,272		1,478		—
Total	$	43,595	$	15,780	$	11,582	$	4,776	$	11,457


(1)			^{Operating lease obligations include current and future obligations associated with corporate office leases.}
(2)			^{Other operating obligations represent contractual obligations primarily related to marketing and sponsorship commitments and purchases of inventory.}


	Year ended June 30, 2020							Year ended June 30, 2019
	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter	1st Quarter	2nd Quarter	3rd Quarter	4th Quarter
Japan	107.31	108.73	108.97	107.58	111.49	112.76	110.16	109.94
Australia	1.46	1.46	1.52	1.53	1.37	1.40	1.40	1.43
Hong Kong	7.83	7.83	7.77	7.75	7.85	7.83	7.85	7.84
Mexico	19.44	19.24	19.98	23.36	18.97	19.83	19.22	19.12
Canada	1.32	1.32	1.34	1.39	1.31	1.32	1.33	1.34
Thailand	30.79	30.33	31.33	32.02	33.08	32.90	31.70	31.67
Europe	0.90	0.90	0.91	0.91	0.86	0.88	0.88	0.89
Taiwan	31.20	30.48	30.13	29.90	30.68	30.86	30.85	31.13


#						Management contract or compensatory plan.
*						The Company has been granted confidential treatment for portions of this agreement. Accordingly, certain portions of this agreement have been omitted in the version filed with this report and such confidential portions have been filed with the SEC.


			LIFEVANTAGE CORPORATION

By:			/s/ Darren Jensen
			Darren Jensen
			President and Chief Executive Officer
Date:			August 18, 2020


Reports of Independent Registered Public Accounting Firm						55
Consolidated Financial Statements:
Consolidated Balance Sheets						57
Consolidated Statements of Operations and Comprehensive Income						58
Consolidated Statements of Stockholders’ Equity						59
Consolidated Statements of Cash Flows						60
Notes to Consolidated Financial Statements						61


	June 30,
	2020		2019
(In thousands, except per share data)
ASSETS
Current assets
Cash and cash equivalents	$	22,138	$	18,824
Accounts receivable	2,610		2,066
Income tax receivable	—		1,236
Inventory, net	13,888		13,753
Prepaid expenses and other	5,232		7,309
Total current assets	43,868		43,188

Property and equipment, net	7,170		7,131
Right-of-use assets	956		—
Intangible assets, net	851		983
Deferred income tax asset	2,164		2,693
Equity securities	2,205		—
Other long-term assets	1,663		1,278
TOTAL ASSETS	$	58,877	$	55,273

LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities
Accounts payable	$	3,521	$	5,180
Commissions payable	9,219		7,916
Income tax payable	784		592
Lease liabilities	1,184		—
Other accrued expenses	10,311		11,053
Current portion of long-term debt, net	—		1,454
Total current liabilities	25,019		26,195


Other long-term liabilities	604		1,879
Total liabilities	25,623		28,074
Commitments and contingencies — Note 14
Stockholders’ equity
Preferred stock — par value $0.0001 per share, 5,000 shares authorized, no shares issued or outstanding	—		—
Common stock — par value $0.0001 per share, 40,000 shares authorized and 14,313 and 14,114 issued and outstanding as of June 30, 2020 and 2019, respectively	1		1
Additional paid-in capital	126,416		127,096
Accumulated deficit	(93,307)		(99,960)
Accumulated other comprehensive income	144		62
Total stockholders’ equity	33,254		27,199
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	58,877	$	55,273


	For the years ended June 30,
	2020		2019		2018
(In thousands, except per share data)
Revenue, net	$	232,915	$	225,958	$	203,204
Cost of sales	37,964		37,973		34,848
Gross profit	194,951		187,985		168,356
Operating expenses:
Commissions and incentives	111,571		108,620		98,193
Selling, general and administrative	67,914		69,551		59,840
Total operating expenses	179,485		178,171		158,033
Operating income	15,466		9,814		10,323
Other expense:
Interest expense	(120)		(323)		(456)
Other expense, net	(685)		(261)		(319)
Total other expense	(805)		(584)		(775)
Income before income taxes	14,661		9,230		9,548
Income tax expense	(3,112)		(1,801)		(3,787)
Net income	$	11,549	$	7,429	$	5,761
Net income per share:
Basic	$	0.82	$	0.53	$	0.41
Diluted	$	0.79	$	0.50	$	0.41
Weighted-average shares outstanding:
Basic	14,105		14,055		13,992
Diluted	14,599		14,980		14,136
Other comprehensive income, net of tax:
Foreign currency translation adjustment	82		48		108
Other comprehensive income, net of tax:	82		48		108
Comprehensive income	$	11,631	$	7,477	$	5,869


	Years ended June 30,
	2020						2019						2018
Protandim^®product line	$	156,335	67.1	%	$	144,100	63.8	%	$	130,094	64.0	%
TrueScience^®product line	23,739		10.2	%	24,853		11.0	%	20,881		10.3	%
Other	52,841		22.7	%	57,005		25.2	%	52,229		25.7	%
Total	$	232,915	100.0	%	$	225,958	100.0	%	$	203,204	100.0	%


	As of June 30,
	2020				2019					Change from Prior Year	Percent Change
Active Independent Distributors
Americas	49,000	67.1	%	44,000	66.7	%	5,000	11.4	%
Asia/Pacific & Europe	24,000	32.9	%	22,000	33.3	%	2,000	9.1	%
Total Active Independent Distributors	73,000	100.0	%	66,000	100.0	%	7,000	10.6	%

Active Customers
Americas	83,000	78.3	%	95,000	79.8	%	(12,000)	(12.6)	%
Asia/Pacific & Europe	23,000	21.7	%	24,000	20.2	%	(1,000)	(4.2)	%
Total Active Customers	106,000	100.0	%	119,000	100.0	%	(13,000)	(10.9)	%

Active Accounts
Americas	132,000	73.7	%	139,000	75.1	%	(7,000)	(5.0)	%
Asia/Pacific & Europe	47,000	26.3	%	46,000	24.9	%	1,000	2.2	%
Total Active Accounts	179,000	100.0	%	185,000	100.0	%	(6,000)	(3.2)	%


	For the fiscal years ended June 30,
	2020		2019		% change
Japan	$	42,343	$	40,796	3.8	%
Australia & New Zealand	9,065		5,851		54.9	%
Greater China	6,682		7,924		(15.7)	%
Other	8,489		8,151		4.1	%
Asia/Pacific & Europe Total	$	66,579	$	62,722	6.1	%


	For the fiscal years ended June 30,
	2020		2019
Contractual interest expense:

2016 Term Loan	$	44	$	227
Amortization of deferred financing fees:

2016 Term Loan	7		6
Amortization of debt discount:

2016 Term Loan	39		36
Other	30		54
Total interest expense	$	120	$	323


	Common Stock					Additional Paid-In Capital		Accumulated Deficit		Accumulated Other Comprehensive Income (Loss)		Total
	Shares	Amount
(In thousands)
Balances, June 30, 2017	14,232	$	14	$	121,599	$	(106,992)	$	(94)	$	14,527
Stock-based compensation	—	—		2,990		—		—		2,990
Exercise of options and warrants	21	—		61		—		—		61
Common stock issued under equity award plans	190	—		—		—		—		—
Shares canceled or surrendered as payment of tax withholding	(66)	—		—		—		—		—
Repurchase of company stock	(304)	—		—		(1,500)		—		(1,500)
Change in par value of common stock	—	(13)		13		—		—		—
Currency translation adjustment	—	—		—		—		108		108
Net income	—	—		—		5,761		—		5,761
Balances, June 30, 2018	14,073	$	1	$	124,663	$	(102,731)	$	14	$	21,947
Cumulative effect of adoption of accounting principle	—	—		—		(3)		—		(3)
Balances, July 1, 2018	14,073	$	1	$	124,663	$	(102,734)	$	14	$	21,944
Stock-based compensation	—	—		4,899		—		—		4,899
Exercise of options	155	—		701		—		—		701
Common stock issued under equity award plans	515	—		—		—		—		—
Shares canceled or surrendered as payment of tax withholding	(240)	—		(3,167)		—		—		(3,167)
Repurchase of company stock	(389)	—		—		(4,655)		—		(4,655)

Currency translation adjustment	—	—		—		—		48		48
Net income	—	—		—		7,429		—		7,429
Balances, June 30, 2019	14,114	$	1	$	127,096	$	(99,960)	$	62	$	27,199
Cumulative effect of adoption of accounting principle	—	—		—		508		—		508
Balances, July 1, 2019	14,114	$	1	$	127,096	$	(99,452)	$	62	$	27,707
Stock-based compensation	—	—		4,837		—		—		4,837
Common stock issued under employee stock purchase plan	64			653						653
Exercise of options	25	—		76		—		—		76
Common stock issued under equity award plans	910	—		—		—		—		—
Shares canceled or surrendered as payment of tax withholding	(413)	—		(6,246)		—		—		(6,246)
Repurchase of company stock	(387)	—		—		(5,404)		—		(5,404)

Currency translation adjustment	—	—		—		—		82		82
Net income	—	—		—		11,549		—		11,549
Balances, June 30, 2020	14,313	$	1	$	126,416	$	(93,307)	$	144	$	33,254


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


	June 30, 2018
Weighted-average grant date fair value	$	2.25
Risk-free interest rate	2.3		%
Expected volatility	59.0		%
Expected life (years)	4.8


	Options (in thousands)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at June 30, 2017	310	$	6.35

Granted	461	$	4.44
Exercised	(21)	2.96			$	33
Forfeited	(20)	16.26
Expired or Canceled	—	—
Outstanding at June 30, 2018	730	4.96

Granted	—	$	—
Exercised	(155)	4.52			$	1,328
Forfeited	(19)	4.58
Expired or Canceled	(29)	4.64
Outstanding at June 30, 2019	527	5.12

Granted	—	$	—
Exercised	(25)	3.00			$	283
Forfeited	(1)	20.09
Expired or Canceled	(5)	4.11
Outstanding at June 30, 2020	496	5.23		6.60	$	4,171
Exercisable at June 30, 2020	424	$	5.36	6.43	$	3,515


	Shares (in thousands)	Weighted Average Grant Date Fair Value
Nonvested at June 30, 2017	277	$	4.98

Granted	190	$	4.57
Vested	(355)	4.62
Forfeited	(3)	5.22
Nonvested at June 30, 2018	109	5.43
Vested at June 30, 2018	—	—

Granted	37	$	11.59
Vested	(56)	5.55
Forfeited	—	—
Nonvested at June 30, 2019	90	7.87
Vested at June 30, 2019	—	—

Granted	30	$	15.20
Vested	(80)	8.19
Forfeited	—	—
Nonvested at June 30, 2020	40	12.74
Vested at June 30, 2020	—	$	—


	Number of Units (in thousands)	Weighted Average Grant Date Fair Value
Nonvested at June 30, 2018	—	$	—

Granted	347	$	13.81
Vested	—	—
Forfeited	(7)	13.51
Nonvested at June 30, 2019	340	13.81
Vested at June 30, 2019	—	—

Granted	122	13.64
Vested	(221)	13.87
Forfeited	(2)	12.92
Nonvested at June 30, 2020	239	13.68
Vested at June 30, 2020	—	—


(1)			^{Includes shares added based on achievement of performance goals in excess of target.}


	Number of Units (in thousands)	Weighted Average Grant Date Fair Value
Outstanding at June 30, 2017, nonvested	32

Granted	87	$	4.65
Vested	(32)	—
Forfeited	(29)	$	6.48
Outstanding at June 30, 2018, nonvested	58

Granted	42	$	11.27
Vested	(32)	—
Forfeited	(18)	$	9.07
Outstanding at June 30, 2019, nonvested	50

Granted	—	$	—
Vested	(42)	—
Forfeited	(8)	$	7.68
Outstanding at June 30, 2020, nonvested	—


	June 30, 2018
Weighted-average grant date fair value	$	0.40
Risk-free interest rate	2.1% -2.3%
Expected volatility	56.2% - 57.0%
Expected life (years)	0.5 - 0.8


	Number of Units (in thousands)	Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at June 30, 2017, nonvested	—

Granted	170	—	$	68
Vested	—	—
Forfeited	—	—
Outstanding at June 30, 2018, nonvested	170	0.50	$	273

Granted	—	—
Vested	(170)	—	$	1,619
Forfeited	—	—
Outstanding at June 30, 2019, nonvested	—	—

Granted	—	—
Vested	—	—
Forfeited	—	—
Outstanding at June 30, 2020, nonvested	—	—


	Year ended June 30,
	2020		2019		2018

Foreign currency transaction loss, net	$	(434)	$	(121)	$	(92)
Loss on settlement of forward contract	(368)		(287)		(175)
Gain (loss) on disposal of fixed assets	3		—		(6)

Other income (expense), net	114		147		(46)
Total other expense, net	$	(685)	$	(261)	$	(319)


	2020
Unrecognized tax benefits, July 1	$	—
Gross increases - tax positions in prior period	—
Gross decreases - tax positions in prior period	—
Gross increases - tax positions in current period	480
Settlement	—
Lapse of statute of limitations	—
Currency adjustment	—
Unrecognized tax benefits, June 30	$	480


	June 30, 2020
Operating cash outflows from operating leases	$	2,886
Right-of-use assets obtained in exchange for lease obligations	$	—


Year ended June 30,	Amount
2021	$	1,201





Less: imputed interest	(17)
Present value of lease liabilities	$	1,184


	Fiscal Quarter										Year ended June 30, 2020
	First		Second		Third		Fourth
Revenue, net	$	56,228	$	61,242	$	56,077	$	59,368	$	232,915
Gross profit	47,038		51,012		46,982		49,919		194,951
Net income	$	1,761	$	4,303	$	1,661	$	3,824	$	11,549
Per common share:
Income per share, basic	$	0.13	$	0.31	$	0.12	$	0.27	$	0.82
Income per share, diluted	$	0.12	$	0.30	$	0.11	$	0.26	$	0.79