Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.6.0.2
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2016
Customer Concentration Risk Percentage

Significant customers are those which represent more than 10% of the Company’s net revenue for each period presented, or the Company’s net accounts receivable balance as of each respective balance sheet date. For each significant customer, revenue as a percentage of total revenue and accounts receivable as a percentage of total net accounts receivable are as follows:

   

Percentage of Net Revenue for the

Year Ended

December 31,

  Percentage of Net Accounts Receivable as of December 31,
    2016   2015   2016   2015
Customers                
Costco     20 %     20 %     17 %     18 %
Bodybuilding.com     *       10 %     *       *  
GNC     *       11 %     *       10 %
Europa     *       *       *       11 %
Vitamin Shoppe, Inc.     *       *       10 %     *  
Sport One Trading LLC     *       *       10 %     *  

 

* Represents less than 10% of net revenue or net accounts receivable.

Schedule of Accounts Receivable, Net of Allowance

Accounts receivable consisted of the following as of December 31, 2016 and 2015 (in thousands):

 

    As of December 31,
    2016   2015
Accounts receivable   $ 15,574     $ 26,057  
Less: allowance for discounts     (1,759 )     (3,707 )
Less: allowance for doubtful accounts     (462 )     (347 )
Accounts receivable, net   $ 13,353     $ 22,003  
Schedule of Allowance for Discount

The allowance for discount for the years ended December 31, 2016 and 2015 consisted of the following activity (in thousands):

    For the Year Ended December 31,
    2016   2015
Allowance for discount, beginning balance   $ 3,707     $ 1,862  
Charges against revenues     34,627       29,525  
Utilization of reserve     (36,575 )     (27,680 )
Allowance for discount, ending balance   $ 1,759     $ 3,707
Schedule of Estimated Useful Lives of Property, Plant, and Equipment

The estimated useful lives of the property and equipment are as follows:

 

Property and Equipment

  

Estimated Useful Life

Furniture, fixtures and equipment

   3 - 7 years

Leasehold improvements

   Lesser of estimated useful life or remaining lease term

Manufacturing and lab equipment

   3 - 5 years

Vehicles

   3 - 5 years

Displays

   5 years

Website

   3 years
Cost of Goods, Total [Member]  
Customer Concentration Risk Percentage

The Company had the following concentration of purchases with contract manufacturers for years ended December 31, 2016 and 2015:

   

For the Year

Ended December 31,

Vendor   2016   2015
Capstone Nutrition     *       59 %
Nutra Blend     52 %     25 %
Bakery Barn     25 %     11 %

 

* Represents less than 10% of purchases.