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Document And Entity Information

v2.4.0.8
Document And Entity Information
3 Months Ended
Mar. 31, 2015
May 13, 2015
Document Information [Line Items]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Mar. 31, 2015  
Document Fiscal Year Focus 2015  
Document Fiscal Period Focus Q1  
Entity Registrant Name ProPhase Labs, Inc.  
Entity Central Index Key 0000868278  
Current Fiscal Year End Date --12-31  
Entity Filer Category Smaller Reporting Company  
Trading Symbol PRPH  
Entity Common Stock, Shares Outstanding   15,892,296

Condensed Consolidated Balance Sheets

v2.4.0.8
Condensed Consolidated Balance Sheets (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
ASSETS    
Cash and cash equivalents (Note 2) $ 5,021 $ 2,926
Accounts receivable, net 3,468 5,836
Inventory (Note 2) 3,277 3,292
Prepaid expenses and other current assets 670 1,404
Total current assets 12,436 13,458
Property, plant and equipment, net of accumulated depreciation of $4,424 and $4,341, respectively (Note 2) 2,558 2,599
Total assets 14,994 16,057
LIABILITIES:    
Accounts payable 1,231 667
Accrued advertising and other allowances 3,232 3,685
Other current liabilities 1,061 889
Total current liabilities 5,524 5,241
Other long term obligations (Note 5) 100 100
Commitments and contingencies (Note 5)      
STOCKHOLDERS' EQUITY:    
Common Stock, $.0005 par value; authorized 50,000,000; issued: 25,125,113 shares (Note 3) 13 13
Additional paid-in-capital 54,698 54,664
Accumulated deficit (14,599) (13,219)
Treasury stock, at cost 9,232,817 shares (30,742) (30,742)
Total stockholders' equity 9,370 10,716
Total liabilities and stockholders' equity $ 14,994 $ 16,057

Condensed Consolidated Balance Sheets [Parenthetical]

v2.4.0.8
Condensed Consolidated Balance Sheets [Parenthetical] (USD $)
In Thousands, except Share data, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Accumulated depreciation (in dollars) $ 4,424 $ 4,341
Common Stock, par value (in dollars per share) $ 0.0005 $ 0.0005
Common Stock, shares authorized 50,000,000 50,000,000
Common Stock, shares issued 25,125,113 25,125,113
Treasury stock, shares (in shares) 9,232,817 9,232,817

Condensed Consolidated Statements of Operations

v2.4.0.8
Condensed Consolidated Statements of Operations (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Net sales (Note 2) $ 5,860 $ 6,171
Cost of sales (Note 2) 2,198 2,191
Gross profit 3,662 3,980
Operating expenses:    
Sales and marketing 2,812 2,997
Administration 2,021 1,507
Research and development 208 278
Total operating expense 5,041 4,782
Loss from operations (1,379) (802)
Interest expense, net (1) (2)
Loss before income tax (1,380) (804)
Income tax (Note 4) 0 0
Net loss $ (1,380) $ (804)
Basic and diluted loss per share:    
Net loss $ (0.09) $ (0.05)
Weighted average common shares outstanding:    
Basic and diluted 15,892 16,469

Condensed Consolidated Statement of Stockholders' Equity

v2.4.0.8
Condensed Consolidated Statement of Stockholders' Equity (USD $)
In Thousands, except Share data
Total
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings (Deficit) [Member]
Treasury Stock [Member]
Balance at Dec. 31, 2014 $ 10,716 $ 13 $ 54,664 $ (13,219) $ (30,742)
Balance (in shares) at Dec. 31, 2014   15,892,296      
Net income (loss) (1,380) 0 0 (1,380) 0
Share-based compensation expense (Note 3) 34 0 34 0 0
Balance at Mar. 31, 2015 $ 9,370 $ 13 $ 54,698 $ (14,599) $ (30,742)
Balance (in shares) at Mar. 31, 2015   15,892,296      

Condensed Consolidated Statements of Cash Flows

v2.4.0.8
Condensed Consolidated Statements of Cash Flows (USD $)
In Thousands, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Cash flows from operating activities:    
Net loss $ (1,380) $ (804)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:    
Depreciation and amortization 83 64
Share-based compensation expense 34 64
Gain on sale of equipment (5) 0
Changes in operating assets and liabilities:    
Accounts receivable 2,368 2,463
Inventory 15 309
Accounts payable 564 (19)
Accrued advertising and other allowances (453) 35
Other operating assets and liabilities, net 906 839
Net cash provided by operating activities 2,132 2,951
Cash flows from investing activities:    
Capital expenditures (42) (17)
Proceeds from the sale of equipment 5 0
Net cash used in investing activities (37) (17)
Cash flows from financing activities:    
Proceeds from issuance of common stock 0 947
Net cash provided by financing activities 0 947
Net increase in cash and cash equivalents 2,095 3,881
Cash and cash equivalents at beginning of period 2,926 1,638
Cash and cash equivalents at end of period $ 5,021 $ 5,519

Organization and Business

v2.4.0.8
Organization and Business
3 Months Ended
Mar. 31, 2015
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]
Note 1 – Organization and Business
 
ProPhase Labs, Inc. (“we”, “us” or the “Company”), organized under the laws of the State of Nevada, is a manufacturer, marketer and distributor of a diversified range of homeopathic and health products that are offered to the general public. We are also engaged in the research and development of potential over-the-counter (“OTC”) drug, natural base health products along with supplement, personal care and cosmeceutical products.
 
Our primary business is the manufacture, distribution, marketing and sale of OTC cold remedy products to consumers through national chain, regional, specialty and local retail stores. Our flagship brand is Cold-EEZEÒ Cold Remedy and our principal product is Cold-EEZEÒ Cold Remedy zinc gluconate lozenges, proven in clinical studies to reduce the duration of the common cold. In addition to Cold-EEZE® Cold Remedy lozenges, we market and distribute non-lozenge forms of our proprietary zinc gluconate formulation, (i) Cold-EEZE® Cold Remedy QuickMelts® and (ii) Cold-EEZE® Cold Remedy Oral Spray. Cold-EEZE® Cold Remedy Oral Spray is a liquid form of our zinc gluconate formulation that is sprayed in the mouth. Cold-EEZE® Cold Remedy QuickMelts® are fast dissolving tablets that are taken orally. Cold-EEZEÒ Cold Remedy is an established product in the health care and cold remedy market. For the three months ended March 31, 2015 and 2014, we operated in one reporting segment and our revenues have come principally from our OTC cold remedy products.
 
We use a December 31 year-end for financial reporting purposes. References herein to Fiscal 2015 shall mean the fiscal year ended December 31, 2015 and references to other “Fiscal” years shall mean the year, which ended on December 31 of the year indicated. The term “we”, “us” or the “Company” as used herein also refer, where appropriate, to the Company, together with its subsidiaries unless the context otherwise requires.

Summary of Significant Accounting Policies

v2.4.0.8
Summary of Significant Accounting Policies
3 Months Ended
Mar. 31, 2015
Accounting Policies [Abstract]  
Significant Accounting Policies [Text Block]
Note 2 – Summary of Significant Accounting Policies
 
Basis of Presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and within the rules of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements and therefore do not include all disclosures that might normally be required for financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited condensed consolidated financial statements have been prepared by management without audit and should be read in conjunction with our consolidated financial statements, including the notes thereto, appearing in our Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position, consolidated results of operations and consolidated cash flows, for the periods indicated, have been made. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of operating results that may be achieved over the course of the full year.
 
Seasonality of the Business 
Our net sales are derived principally from our OTC cold remedy products. Currently, our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the third and fourth quarter higher levels of net sales along with a corresponding increase in marketing and advertising expenditures designed to promote our products during the cold season. Revenues and related marketing costs are generally at their lowest levels in the second quarter when consumer demand generally declines. We track health and wellness trends and develop retail promotional strategies to align our production scheduling, inventory management and marketing programs to optimize consumer purchases.
 
Use of Estimates
The preparation of financial statements and the accompanying notes thereto, in conformity with GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the respective reporting periods. Examples include the provision for bad debt, sales returns and allowances, inventory obsolescence, useful lives of property and equipment and intangible assets, impairment of property and equipment and intangible assets, income tax valuations and assumptions related to accrued advertising. When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (“Sales Allowances”), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.
 
Our primary product, Cold-EEZEÒ Cold Remedy lozenges, utilizes a proprietary zinc gluconate formulation which has been clinically proven to reduce the severity and duration of common cold symptoms. Factors considered in estimating the appropriate sales returns and allowances for this product include it being (i) a unique product with limited competitors, (ii) competitively priced, (iii) promoted, (iv) unaffected for remaining shelf-life as there is no product expiration date and (v) monitored for inventory levels at major customers and third-party consumption data. In addition to Cold-EEZE® Cold Remedy lozenges, we market and distribute a variety of Cold-EEZE® Cold Remedy QuickMelts® and a Cold-EEZE® Cold Remedy Oral Spray. We also manufacture, market and distribute an organic cough drop and a Vitamin C supplement (“Organix®”). Each of the Cold-EEZE® Cold Remedy Oral Spray and QuickMelts® products, and Organix® products carry shelf-life expiration dates for which we aggregate such new product market experience data and update our sales returns and allowances estimates accordingly. Sales allowances estimates are tracked at the specific customer and product line levels and are tested on an annual historical basis, and reviewed quarterly. Additionally, we monitor current developments by customer, market conditions and any other occurrences that could affect the expected provisions relative to net sales for the period presented.
 
Cash Equivalents
We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents include cash on hand and monies invested in money market funds. The carrying amount approximates the fair market value due to the short-term maturity of these investments.
 
Inventory Valuation
Inventory is valued at the lower of cost, determined on a first-in, first-out basis (FIFO), or market. Inventory items are analyzed to determine cost and the market value and appropriate valuation adjustments are established. At March 31, 2015 and December 31, 2014, the financial statements include adjustments to reduce inventory for excess or obsolete inventory of $505,000 and $797,000, respectively. The components of inventory are as follows (in thousands):
 
 
 
March 31,
 
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
 
 
Raw materials
 
$
816
 
$
798
 
Work in process
 
 
207
 
 
418
 
Finished goods
 
 
2,254
 
 
2,076
 
 
 
$
3,277
 
$
3,292
 
Property, Plant and Equipment
Property, plant and equipment are recorded at cost. We use the straight-line method in computing depreciation for financial reporting purposes. Depreciation expense is computed in accordance with the following ranges of estimated asset lives: building and improvements - ten to thirty-nine years; machinery and equipment - three to seven years; computer software - three years; and furniture and fixtures – five years.
 
Concentration of Risks
Future revenues, costs, margins, and profits will continue to be influenced by our ability to maintain our manufacturing availability and capacity together with our marketing and distribution capabilities and the regulatory requirements associated with the development of OTC and other personal care products in order to compete on a national level and/or international level.
 
Our business is subject to federal and state laws and regulations adopted for the health and safety of users of our products. Our OTC cold remedy products are subject to regulations by various federal, state and local agencies, including the Food and Drug Administration (“FDA”) and, as applicable, the Homeopathic Pharmacopoeia of the United States.
 
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable.
 
We maintain cash and cash equivalents with certain major financial institutions. As of March 31, 2015, our cash balance was $5.0 million and our bank balance was $5.3 million. Of the total bank balance, $582,000 was covered by federal depository insurance and $4.7 million was uninsured at March 31, 2015.
 
Trade accounts receivable potentially subject us to credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. We extend credit to our customers based upon an evaluation of the customer’s financial condition and credit history and generally we do not require collateral. Our broad range of customers includes many large national chain, regional, specialty and local retail stores. These credit concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. As a consequence of an evaluation of our customer’s financial condition, payment patterns, balance due us and other factors, we did not offset our account receivable with an allowance for bad debt at March 31, 2015 and December 31, 2014.
 
Our revenues are principally generated from the sale of OTC cold remedy products which represented approximately 93% and 95% of total revenues for each of the three months ended March 31, 2015 and 2014, respectively. A significant portion of our business is highly seasonal, which causes major variations in operating results from quarter to quarter. The third and fourth quarters generally represent the largest sales volume for the OTC cold remedy products. For the three months ended March 31, 2015 and 2014, our net sales were principally related to domestic markets.
 
Long-lived Assets
We review our carrying value of our long-lived assets with definite lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When indicators of impairment exist, we determine whether the estimated undiscounted sum of the future cash flows of such assets is less than their carrying amounts. If less, an impairment loss is recognized in the amount, if any, by which the carrying amount of such assets exceeds their respective fair values. The determination of fair value is based on quoted market prices in active markets, if available, or independent appraisals; sales price negotiations; or projected future cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value utilizing discounted forecasted cash flows includes significant judgments regarding assumptions of revenue, operating and marketing costs; selling and administrative expenses; interest rates; property and equipment additions and retirements; industry competition; and general economic and business conditions, among other factors.
 
Fair value is based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a three-tier fair value hierarchy prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.
 
Fair Value of Financial Instruments 
Cash and cash equivalents, accounts receivable and accounts payable are reflected in the Condensed Consolidated Financial Statements at carrying value which approximates fair value because of the short-term maturity of these instruments.
 
Revenue Recognition
Sales are recognized at the time ownership is transferred to the customer. Revenue is reduced for trade promotions, estimated sales returns, cash discounts and other allowances in the same period as the related sales are recorded. We make estimates of potential future product returns and other allowances related to current period revenue. We analyze historical returns, current trends, and changes in customer and consumer demand when evaluating the adequacy of the sales returns and other allowances.
 
Our return policy accommodates returns for (i) discontinued products, (ii) store closings and (iii) products that have reached or exceeded their designated expiration date. We do not impose a period of time within which product may be returned. All requests for product returns must be submitted to us for pre-approval. The main components of our returns policy are: (i) we will accept returns that are due to damaged product that is un-saleable and such return request activity falls within an acceptable range, (ii) we will accept returns for products that have reached or exceeded designated expiration dates and (iii) we will accept returns in the event that we discontinue a product provided that the customer will have the right to return only such items that it purchased directly from us. We will not accept return requests pertaining to customer inventory “Overstocking” or “Resets”. We will only accept return requests for product in its intended package configuration. We reserve the right to terminate shipment of product to customers who have made unauthorized deductions contrary to our return policy or pursue other methods of reimbursement. We compensate the customer for authorized returns by means of a credit applied to amounts owed or to be owed and in the case of discontinued product only, also by way of an exchange. We do not have any significant product exchange history.
 
As of March 31, 2015 and December 31, 2014, we included a provision for sales allowances of $55,000 and $129,000, respectively, which are reported as a reduction to sales and account receivables. Additionally, accrued advertising and other allowances as of March 31, 2015 included (i) $1.5 million for estimated future sales returns and (ii) $1.6 million for cooperative incentive promotion costs. As of December 31, 2014, accrued advertising and other allowances included (i) $1.5 million for estimated future sales returns and (ii) $2.1 million for cooperative incentive promotion costs.
 
Advertising and Incentive Promotions
Advertising and incentive promotion costs are expensed within the period in which they are utilized. Advertising and incentive promotion expense is comprised of (i) media advertising, presented as part of sales and marketing expense, (ii) cooperative incentive promotions and coupon program expenses, which are accounted for as part of net sales, and (iii) free product, which is accounted for as part of cost of sales. Advertising and incentive promotion expenses incurred for the three months ended March 31, 2015 and 2014 were $3.1 million and $3.4 million, respectively. Included in prepaid expenses and other current assets was $172,000 and $885,000 at March 31, 2015 and December 31, 2014, respectively, relating to prepaid advertising and promotion expenses.
 
Shipping and Handling
Product sales carry shipping and handling charges to the purchaser, included as part of the invoiced price, which is classified as revenue. In all cases, costs related to this revenue are recorded in cost of sales.
 
Stock Based Compensation
We recognize all share-based payments to employees and directors, including grants of stock options, as compensation expense in the financial statements based on their fair values. Fair values of stock options are determined through the use of the Black-Scholes option pricing model. The compensation cost is recognized as an expense over the requisite service period of the award, which usually coincides with the vesting period.
 
Stock and stock options for the purchase of our common stock, $0.0005 par value, (“Common Stock”) have been granted to both employees and non-employees pursuant to the terms of certain agreements and stock option plans (see Note 3). Stock options are exercisable during a period determined by us, but in no event later than ten years from the date granted. For the three months ended March 31, 2015 and 2014, we charged to operations $34,000 and $64,000, respectively, for share-based compensation expense for the aggregate fair value of stock grants issued and vested stock options earned.
 
Variable Interest Entity
On March 22, 2010, we, Phosphagenics Limited (“PSI Parent”), an Australian corporation, Phosphagenics Inc. (“PSI”), a Delaware corporation and subsidiary of PSI Parent, and Phusion Laboratories, LLC (the “Joint Venture”), a Delaware limited liability company, entered into a Limited Liability Company Agreement (the “LLC Agreement”) of the Joint Venture and additional related agreements for the purpose of developing and commercializing, for worldwide distribution and sale, a wide range of non-prescription remedies using PSI Parent’s proprietary patented TPM™ technology (“TPM”). The Joint Venture, of which we own a 50% membership interest, qualifies as a variable interest entity (“VIE”), we are the current primary beneficiary and we have consolidated the Joint Venture beginning with the quarter ended March 31, 2010 (see Note 6).
 
Research and Development
Research and development costs are charged to operations in the period incurred. Research and development costs for the three months ended March 31, 2015 and 2014 were $208,000 and $278,000, respectively. Research and development costs are principally related to new product development initiatives and costs associated with our OTC cold remedy products.
 
Income Taxes
We utilize the asset and liability approach which requires the recognition of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in the tax law or rates. Until sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock activities are assured, a valuation allowance equaling the total deferred tax asset is being provided (see Note 4).
 
We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than fifty percent likely of being realized upon ultimate settlement. Any interest or penalties related to uncertain tax positions will be recorded as interest or administrative expense, respectively.
 
As a result of our continuing tax losses, we have recorded a full valuation allowance against a net deferred tax asset. Additionally, we have not recorded a liability for unrecognized tax benefits.  
 
Recently Issued Accounting Standards
In May 2014, the FASB issued new accounting guidance ASU No. 2014-09, “Revenue from Contracts with Customers”, on revenue recognition.  The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts.  Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard.  There is no option for early adoption.  This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. On April 29, 2015 the FASB issued an exposure draft to extend the effective date of ASU 2014-09 until December 15, 2017.  We are currently assessing the impact of this update, and believe that its adoption will not have a material impact on our consolidated financial statements.
 
In June 2014, the FASB issued new accounting guidance ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Companies should apply existing guidance in ASC 718, “Compensation - Stock Compensation”, as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in this update will be effective as of January 1, 2016. Earlier adoption is permitted. We may apply the amendments in this update either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If a retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. In addition, if a retrospective transition is adopted, we may use hindsight in measuring and recognizing the compensation cost. We are currently assessing the impact of this update, and believe that its adoption on January 1, 2016 will not have a material impact on our consolidated financial statements.
 
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments in this update state that in connection with preparing financial statements for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued, when applicable). The amendments in this update are effective for the annual reporting period beginning after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material impact on our consolidated financial statements.
 
In February 2015, the FASB issued guidance that changes the evaluation criteria for consolidation and related disclosure requirements. This guidance introduces evaluation criteria specific to limited partnerships and other similar entities, as well as amends the criteria for evaluating variable interest entities with which the reporting entity is involved and certain investment funds. The guidance will become effective for us at the beginning of our first quarter of Fiscal 2017. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.

Transactions Affecting Stockholders' Equity

v2.4.0.8
Transactions Affecting Stockholders' Equity
3 Months Ended
Mar. 31, 2015
Stockholders Equity Note [Abstract]  
Transactions Affecting Stock Holders Equity [Text Block]
Note 3 – Transactions Affecting Stockholders’ Equity
 
Stockholder Rights Plan
On September 8, 1998, our Board of Directors declared a dividend distribution of Common Stock Purchase Rights (each individually, a “Right” and collectively, the “Rights”) payable to the stockholders of record on September 25, 1998, thereby creating a Stockholder Rights Plan (the “Rights Agreement”). The Plan was subsequently amended effective each of (i) May 23, 2008, (ii) August 18, 2009 and (iii) June 18, 2014. The Rights Agreement, as amended and restated, provides that each Right entitles the stockholder of record to purchase from the Company that number of common shares having a combined market value equal to two times the Rights exercise price of $45. The Rights are not exercisable until the distribution date, which will be the earlier of a public announcement that a person or group of affiliated or associated persons has acquired 15% or more of the outstanding common shares, or the announcement of an intention by a similarly constituted party to make a tender or exchange offer resulting in the ownership of 15% or more of the outstanding common shares. The Rights Agreement allows for an exemption for Ted Karkus, the Company’s Chairman and Chief Executive Officer, to acquire up to 20% of our Common Stock without our Board of Directors declaring a dividend distribution. The dividend has the effect of giving the stockholder a 50% discount on the share’s current market value for exercising such right. In the event of a cashless exercise of the Right and the acquirer has acquired less than 50% beneficial ownership of the Company, a stockholder may exchange one Right for one common share of the Company. The Rights Agreement, as amended, includes a provision pursuant to which our Board of Directors may exempt from the provisions of the Rights Agreement an offer for all outstanding shares of our Common Stock that the directors determine to be fair and not inadequate and to otherwise be in the best interests of the Company and its stockholders, after receiving advice from one or more investment banking firms. The expiration date of the Rights Agreement, as amended, is June 18, 2024.
 
2012 Equity Line of Credit
On November 21, 2012, we entered into the equity line of credit agreement (such arrangement, the “2012 Equity Line”) with Dutchess Opportunity Fund II, LP (“Dutchess”) whereby Dutchess committed to purchase, subject to certain restrictions and conditions, up to 2,500,000 shares of our Common Stock, over a period of 36 months from the first trading day following the effectiveness of the registration statement registering the resale of shares purchased by Dutchess pursuant to the 2012 Equity Line. On November 26, 2012, we filed a registration statement with Securities and Exchange Commission (“SEC”) to register for sale for up to 2,500,000 shares of our Common Stock and the registration statement was deemed effective by the SEC on December 12, 2012. We amended this registration statement effective May 29, 2014 to withdraw and remove from registration all unissued and unsold shares. We also agreed with Dutchess to terminate the 2012 Equity Line as of May 28, 2014.
 
During the period January 1, 2014 through May 23, 2014, we sold an aggregate of 698,207 shares of Common Stock to Dutchess under and pursuant to the 2012 Equity Line and we derived net proceeds of $1.2 million. The sales of the shares under the 2012 Equity Line were deemed to be exempt from registration under the Securities Act of 1933, as amended in reliance upon Section 4(2) (or Regulation D promulgated thereunder).
 
2014 Equity Line of Credit
The Company and Dutchess executed a new equity line of credit agreement (such arrangement, the “2014 Equity Line”) dated May 28, 2014 whereby Dutchess committed to purchase, subject to certain restrictions and conditions, up to 3,000,000 shares of the Company’s Common Stock, over a period of 36 months from the effectiveness of the registration statement registering the resale of shares purchased by Dutchess pursuant to the 2014 Equity Line. On May 29, 2014, we filed a registration statement with the SEC to register for sale up to 3,000,000 shares of our Common Stock and the registration statement was declared effective by the SEC on June 4, 2014.
 
We may in our discretion draw on the facility from time to time, as and when we determine appropriate in accordance with the terms and conditions of the 2014 Equity Line.  The maximum number of shares that the Company is entitled to put to Dutchess in any one draw down notice shall not exceed shares with a purchase price of $500,000, calculated in accordance with the 2014 Equity Line. We may deliver a notice for a subsequent put from time to time, following the one day pricing period for the prior put.
 
The purchase price shall be set at ninety-five percent (95%) of the VWAP of the Company’s Common Stock during the one trading day immediately following our put notice. The Company has the right to withdraw all or any portion of any put, except that portion of the put that has already been sold to a third party, including any portion of a put that is below the minimum acceptable price set forth on the put notice, before the closing. In the event Dutchess receives more than a five percent (5%) return on the net sales for a specific put, Dutchess must remit such excess proceeds to the Company; however, in the event Dutchess receives less than a five percent (5%) return on the net sales for a specific put, Dutchess will have the right to deduct from the proceeds of the put amount on the applicable closing date so Dutchess’s return will equal five percent (5%).
 
There are put restrictions applied on days between the draw down notice date and the closing date with respect to that particular put. During such time, the Company shall not be entitled to deliver another draw down notice. In addition, Dutchess will not be obligated to purchase shares if Dutchess’s total number of shares beneficially held at that time would exceed 4.99% of the number of shares of our Common Stock as determined in accordance with Rule 13d-1(j) of the Securities Exchange Act of 1934, as amended. In addition, we are not permitted to draw on the facility unless there is an effective registration statement to cover the resale of the shares.
 
During the period June 13, 2014 through December 31, 2014, we sold an aggregate of 2,561,520 shares of our Common Stock to Dutchess under and pursuant to the 2014 Equity Line and we derived net proceeds of $3.7 million. The sales of the shares under the 2014 Equity Line were deemed to be exempt from registration under the Securities Act of 1933, as amended in reliance upon Section 4(2) (or Regulation D promulgated thereunder). At March 31, 2015, we have 438,480 shares of our Common Stock available for sale, at our discretion, under the terms of the 2014 Equity Line and covered pursuant to a registration statement.
 
The 1997 Option Plan
On December 2, 1997, our Board of Directors approved a Stock Option Plan (the “1997 Plan”), which was amended in 2005, the 1997 Plan provided for the granting of up to 4.5 million shares of Common Stock. Under the 1997 Plan, we were permitted to grant options to employees, officers or directors of the Company at variable percentages of the market value of stock at the date of grant. No incentive stock option could be exercisable more than ten years after the date of grant or five years after the date of grant where the individual owns more than ten percent of the total combined voting power of all classes of stock. Stockholders approved the 1997 Plan in Fiscal 1998. No options were granted under this Plan for the three months ended March 31, 2015 or 2014.
 
We are precluded from issuing any additional options or grants in the future under the 1997 Plan pursuant to the terms of the plan document. Options previously granted continue to be available for exercise at any time prior to such options’ respective expiration dates, but in no event later than ten years from the date granted. At March 31, 2015, there were 26,500 options outstanding under the 1997 Plan with an expiration date of December 2015.
 
The 2010 Equity Compensation Plan
On May 5, 2010, our shareholders approved the 2010 Equity Compensation Plan which was subsequently amended, restated and approved by shareholders on April 24, 2011 and further amended and approved by shareholders on May 6, 2013 (the “2010 Plan”). The 2010 Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Plan is equal to 1.6 million shares plus up to 900,000 shares that are authorized for issuance but unissued under the 1997 Plan for an aggregate of 2.5 million shares. The 1997 Plan expired on December 2, 2007 and no additional awards may be made. As of March 31, 2015, 1,481,750 of the options issued under the 1997 Plan prior to December 2007 expired unexercised or were terminated. As a consequence, these shares are deemed and remain unissued which up to a maximum of 900,000 shares became available for issuance under the 2010 Plan and the remaining 581,750 options are deemed cancelled. No options were granted under the 2010 Plan for the three months ended March 31, 2015 or 2014. At March 31, 2015, there were 19,659 shares of Common Stock that may be issued pursuant to the terms of the 2010 Equity Compensation Plan.
 
There were no stock options exercised for the three months ended March 31, 2015 or 2014.
 
The 2010 Directors’ Equity Compensation Plan
On May 5, 2010, our shareholders approved the 2010 Directors’ Equity Compensation Plan which was subsequently amended and approved by shareholders on May 6, 2013. A primary purpose of the 2010 Directors’ Equity Compensation Plan is to provide us with the ability to pay all or a portion of the fees of directors in restricted stock instead of cash. The 2010 Directors’ Equity Compensation Plan provides that the total number of shares of Common Stock that may be issued under the 2010 Directors’ Equity Compensation Plan is equal to 425,000. For the three months ended March 31, 2015 or 2014, no shares were granted to directors. At March 31, 2015, there were 147,808 shares of Common Stock that may be issued pursuant to the terms of the 2010 Directors’ Equity Compensation Plan.

Income Taxes

v2.4.0.8
Income Taxes
3 Months Ended
Mar. 31, 2015
Income Tax Disclosure [Abstract]  
Income Tax Disclosure [Text Block]
Note 4 – Income Taxes
 
As of December 31, 2014, we have net operating loss carry-forwards of approximately $38.6 million for federal purposes that will expire beginning in Fiscal 2020 through Fiscal 2033. Additionally, there are net operating loss carry-forwards of approximately $20.1 million for state purposes that will expire beginning in Fiscal 2018 through Fiscal 2033. Until sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock are assured, a valuation allowance equaling the total deferred tax asset is being provided. Management believes that this allowance is required due to the uncertainty of realizing these tax benefits in the future. 

Commitments and Contingencies

v2.4.0.8
Commitments and Contingencies
3 Months Ended
Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Disclosure [Text Block]
Note 5 – Commitments and Contingencies
 
Godfrey Settlement Agreement
In November 2004, we commenced an action against John C. Godfrey, Nancy Jane Godfrey, and Godfrey Science and Design, Inc. (together the “Godfreys”) for injunctive relief regarding the ownership of the Cold-EEZE® trademark. The Godfreys subsequently asserted against us counterclaims and sought monetary damages and injunctive and declaratory relief relative to the Cold-EEZE® trademark and other intellectual property. 
 
On December 20, 2012, we and the Godfreys, including the Estate of Nancy Jane Godfrey, entered into a Settlement Agreement and Mutual General Release (the “Godfrey Settlement Agreement”), pursuant to which we resolved all disputes, including claims asserted by us and counterclaims asserted against us in the action. Pursuant to the terms of the Godfrey Settlement Agreement, we paid the Godfreys $2.1 million in December 2012 and we agreed to make four additional annual payments of $100,000 due in December of each of the next four years. Each annual payment in the amount of $100,000 will accrue interest at the per annum rate of 3.25%. The second annual installment of $100,000 plus accrued interest of $10,000 was paid in December 2014. Under the Godfrey Settlement Agreement, the Godfreys assigned, transferred and conveyed to us all of their right, title, and interest in U.S. Trademark Registration No. 1,838,542 for the trademark Cold-EEZE®, among other intellectual property associated with such trademark. At each of March 31, 2015 and December 31, 2014, other current liabilities and other long term obligations include $100,000 and $100,000, respectively, for the two remaining annual installment payments.
 
We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2015, as follows (in thousands):
 
Fiscal Year
 
Employment
Contracts
 
Godfrey
Settlement
Agreement
 
Total
 
2015
 
 
769
 
 
100
 
 
869
 
2016
 
 
1,025
 
 
100
 
 
1,125
 
2017
 
 
1,025
 
 
-
 
 
1,025
 
2018
 
 
-
 
 
-
 
 
-
 
2019
 
 
-
 
 
-
 
 
-
 
Total
 
$
2,819
 
$
200
 
$
3,019
 

Investment in a Joint Venture

v2.4.0.8
Investment in a Joint Venture
3 Months Ended
Mar. 31, 2015
Investments in and Advances to Affiliates, Schedule of Investments [Abstract]  
Investments in and Advances to Affiliates, Schedule of Investments [Text Block]
Note 6 – Investment in a Joint Venture
 
On March 22, 2010, we, PSI Parent, PSI and the Joint Venture entered into the LLC Agreement of the Joint Venture and additional related agreements for the purpose of developing and commercializing, for worldwide distribution and sale, a wide range of non-prescription remedies using PSI Parent’s proprietary patented TPM.
 
In connection with the LLC Agreement, PSI Parent granted to us, pursuant to the terms of a License Agreement, dated March 22, 2010 (the “Original License Agreement”), (i) an exclusive, royalty-free, world-wide (subject to certain limitations), paid-up license to exploit OTC drugs and certain other products that embody certain of PSI Parent’s TPM-related patents and related know-how (collectively, the “PSI Technology”) and (ii) a non-exclusive, royalty-free, world-wide (subject to certain limitations), paid-up license to exploit certain compounds that embody the PSI Technology for use in a product combining one or more of such compounds with an OTC drug or in a product that is part of a regimen that includes the application of an OTC drug.
 
Pursuant to the Original License Agreement, we issued 1,440,000 shares of our Common Stock having an aggregate value of approximately $2.6 million to PSI Parent (such shares, the “PSI Shares”) and made a one-time payment to PSI Parent of $1.0 million in March 2010. We recorded an intangible asset valued at $3.6 million in March 2010 for the acquisition of the PSI Technology license.
 
As previously announced in September 2014, we are implementing a series of new product development and pre-commercialization initiatives principally in the dietary supplement category. While several of our product development initiatives have advanced, including those specific to the dietary supplement category, our Phusion product development initiatives have not progressed to management’s satisfaction. At this time, management believes that any products embodying the licensed technology to be developed by Phusion will not be available until Fiscal 2016 or 2017 at the earliest, and may be more limited than previously forecasted and may encompass fewer products or have limited retail distribution.
 
During the third quarter of Fiscal 2014, our evaluation of the Company’s progress in its new product development pipeline and delays in Phusion product development caused management to reassess projections (including income projections) relied upon in December 2013. Accordingly, management performed an impairment analysis for the period ended September 30, 2014 for the licensed technology. As a consequence of our impairment assessment, we determined that a full impairment occurred of the intangible asset, licensed technology. As a consequence, we charged to operations a $3.6 million impairment charge during the third quarter of Fiscal 2014.
 
On October 17, 2014, we initiated a demand for arbitration with the American Arbitration Association, case number 01-14-0001-7373. This demand for arbitration pertains to our Phusion joint venture and the matter is against Phosphagenics, Inc. and Phosphagenics LTD (collectively known as the “Phosphagenics Entities”). We have raised certain claims based upon the alleged Phosphagenics Entities’ breach of a certain amended and restated licenses agreement for the exploitation of certain intellectual property and, separately, breach of the Phusion joint venture operating agreement as between the Company and the Phosphagenics Entities. The Phosphagenics Entities have made counter claims of breaches against the Company and Phusion. This matter is at its preliminary stage and at this time, no prediction as to the outcome of this action can be made.

Earnings (Loss) Per Share

v2.4.0.8
Earnings (Loss) Per Share
3 Months Ended
Mar. 31, 2015
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Note 7 – Earnings (Loss) Per Share
 
Basic earnings (loss) per share is computed by dividing net income or loss attributable to common stockholders by the weighted-average number of shares of our Common Stock outstanding for the period. Diluted earnings (loss) per share reflects the potential dilution that could occur if securities or other contracts to issue Common Stock were exercised or converted into Common Stock or resulted in the issuance of Common Stock that shared in the earnings of the entity. Diluted earnings per share also utilize the treasury stock method which prescribes a theoretical buy-back of shares from the theoretical proceeds of all options and warrants outstanding during the period. Options and warrants outstanding to acquire shares of our Common Stock at March 31, 2015 and 2014 were 1,739,500 and 1,637,500, respectively.
 
For the three months ended March 31, 2015 and 2014 dilutive earnings per share is the same as basic earnings per share due to (i) the inclusion of Common Stock, in the form of stock options and warrants (“Common Stock Equivalents”), would have an anti-dilutive effect on the loss per share or (ii) there were no Common Stock Equivalents for the respective period. For the three months ended March 31, 2015 and 2014, there were 358,411 and 586,215 Common Stock Equivalents, respectively, which were in the money, that were excluded from the earnings per share computation.
 
A reconciliation of the applicable numerators and denominators of the income statement periods presented, as reflected in the results of continuing operations, is as follows (in thousands, except per share amounts):
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31, 2015
 
March 31, 2014
 
 
 
Loss
 
Shares
 
EPS
 
Loss
 
Shares
 
EPS
 
Basic earnings (loss) per share
 
$
(1,380)
 
15,892
 
$
(0.09)
 
$
(804)
 
16,469
 
$
(0.05)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dilutives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options
 
 
-
 
-
 
 
-
 
 
-
 
-
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted income (loss) per share
 
$
(1,380)
 
15,892
 
$
(0.09)
 
$
(804)
 
16,469
 
$
(0.05)
 

Summary of Significant Accounting Policies (Policies)

v2.4.0.8
Summary of Significant Accounting Policies (Policies)
3 Months Ended
Mar. 31, 2015
Accounting Policies [Abstract]  
Organization, Consolidation, Basis of Presentation, Business Description and Accounting Policies [Policy Text Block]
Basis of Presentation
The unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial statements and within the rules of the Securities and Exchange Commission (“SEC”) applicable to interim financial statements and therefore do not include all disclosures that might normally be required for financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The accompanying unaudited condensed consolidated financial statements have been prepared by management without audit and should be read in conjunction with our consolidated financial statements, including the notes thereto, appearing in our Annual Report on Form 10-K for the year ended December 31, 2014. In the opinion of management, all adjustments necessary for a fair presentation of the consolidated financial position, consolidated results of operations and consolidated cash flows, for the periods indicated, have been made. The results of operations for the three months ended March 31, 2015 are not necessarily indicative of operating results that may be achieved over the course of the full year.
Nature Of Operations [Policy Text Block]
Seasonality of the Business 
Our net sales are derived principally from our OTC cold remedy products. Currently, our sales are influenced by and subject to fluctuations in the timing of purchase and the ultimate level of demand for our products which are a function of the timing, length and severity of each cold season. Generally, a cold season is defined as the period of September to March when the incidence of the common cold rises as a consequence of the change in weather and other factors. We generally experience in the third and fourth quarter higher levels of net sales along with a corresponding increase in marketing and advertising expenditures designed to promote our products during the cold season. Revenues and related marketing costs are generally at their lowest levels in the second quarter when consumer demand generally declines. We track health and wellness trends and develop retail promotional strategies to align our production scheduling, inventory management and marketing programs to optimize consumer purchases.
Use of Estimates, Policy [Policy Text Block]
Use of Estimates
The preparation of financial statements and the accompanying notes thereto, in conformity with GAAP, requires management to make estimates and assumptions that affect reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the respective reporting periods. Examples include the provision for bad debt, sales returns and allowances, inventory obsolescence, useful lives of property and equipment and intangible assets, impairment of property and equipment and intangible assets, income tax valuations and assumptions related to accrued advertising. When providing for the appropriate sales returns, allowances, cash discounts and cooperative incentive promotion costs (“Sales Allowances”), we apply a uniform and consistent method for making certain assumptions for estimating these provisions. These estimates and assumptions are based on historical experience, current trends and other factors that management believes to be relevant at the time the financial statements are prepared. Management reviews the accounting policies, assumptions, estimates and judgments on a quarterly basis. Actual results could differ from those estimates.
 
Our primary product, Cold-EEZEÒ Cold Remedy lozenges, utilizes a proprietary zinc gluconate formulation which has been clinically proven to reduce the severity and duration of common cold symptoms. Factors considered in estimating the appropriate sales returns and allowances for this product include it being (i) a unique product with limited competitors, (ii) competitively priced, (iii) promoted, (iv) unaffected for remaining shelf-life as there is no product expiration date and (v) monitored for inventory levels at major customers and third-party consumption data. In addition to Cold-EEZE® Cold Remedy lozenges, we market and distribute a variety of Cold-EEZE® Cold Remedy QuickMelts® and a Cold-EEZE® Cold Remedy Oral Spray. We also manufacture, market and distribute an organic cough drop and a Vitamin C supplement (“Organix®”). Each of the Cold-EEZE® Cold Remedy Oral Spray and QuickMelts® products, and Organix® products carry shelf-life expiration dates for which we aggregate such new product market experience data and update our sales returns and allowances estimates accordingly. Sales allowances estimates are tracked at the specific customer and product line levels and are tested on an annual historical basis, and reviewed quarterly. Additionally, we monitor current developments by customer, market conditions and any other occurrences that could affect the expected provisions relative to net sales for the period presented.
Cash and Cash Equivalents, Policy [Policy Text Block]
Cash Equivalents
We consider all highly liquid investments with a maturity of three months or less at the time of purchase to be cash equivalents. Cash equivalents include cash on hand and monies invested in money market funds. The carrying amount approximates the fair market value due to the short-term maturity of these investments.
Inventory, Policy [Policy Text Block]
Inventory Valuation
Inventory is valued at the lower of cost, determined on a first-in, first-out basis (FIFO), or market. Inventory items are analyzed to determine cost and the market value and appropriate valuation adjustments are established. At March 31, 2015 and December 31, 2014, the financial statements include adjustments to reduce inventory for excess or obsolete inventory of $505,000 and $797,000, respectively. The components of inventory are as follows (in thousands):
 
 
 
March 31,
 
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
 
 
Raw materials
 
$
816
 
$
798
 
Work in process
 
 
207
 
 
418
 
Finished goods
 
 
2,254
 
 
2,076
 
 
 
$
3,277
 
$
3,292
 
Property, Plant and Equipment, Policy [Policy Text Block]
Property, Plant and Equipment
Property, plant and equipment are recorded at cost. We use the straight-line method in computing depreciation for financial reporting purposes. Depreciation expense is computed in accordance with the following ranges of estimated asset lives: building and improvements - ten to thirty-nine years; machinery and equipment - three to seven years; computer software - three years; and furniture and fixtures – five years.
Concentration Risk Disclosure [Policy Text Block]
Concentration of Risks
Future revenues, costs, margins, and profits will continue to be influenced by our ability to maintain our manufacturing availability and capacity together with our marketing and distribution capabilities and the regulatory requirements associated with the development of OTC and other personal care products in order to compete on a national level and/or international level.
 
Our business is subject to federal and state laws and regulations adopted for the health and safety of users of our products. Our OTC cold remedy products are subject to regulations by various federal, state and local agencies, including the Food and Drug Administration (“FDA”) and, as applicable, the Homeopathic Pharmacopoeia of the United States.
 
Financial instruments that potentially subject us to significant concentrations of credit risk consist principally of cash investments and trade accounts receivable.
 
We maintain cash and cash equivalents with certain major financial institutions. As of March 31, 2015, our cash balance was $5.0 million and our bank balance was $5.3 million. Of the total bank balance, $582,000 was covered by federal depository insurance and $4.7 million was uninsured at March 31, 2015.
 
Trade accounts receivable potentially subject us to credit concentrations from time-to-time as a consequence of the timing, payment pattern and ultimate purchase volumes or shipping schedules with our customers. We extend credit to our customers based upon an evaluation of the customer’s financial condition and credit history and generally we do not require collateral. Our broad range of customers includes many large national chain, regional, specialty and local retail stores. These credit concentrations may impact our overall exposure to credit risk, either positively or negatively, in that our customers may be similarly affected by changes in economic, regulatory or other conditions that may impact the timing and collectability of amounts due to us. As a consequence of an evaluation of our customer’s financial condition, payment patterns, balance due us and other factors, we did not offset our account receivable with an allowance for bad debt at March 31, 2015 and December 31, 2014.
 
Our revenues are principally generated from the sale of OTC cold remedy products which represented approximately 93% and 95% of total revenues for each of the three months ended March 31, 2015 and 2014, respectively. A significant portion of our business is highly seasonal, which causes major variations in operating results from quarter to quarter. The third and fourth quarters generally represent the largest sales volume for the OTC cold remedy products. For the three months ended March 31, 2015 and 2014, our net sales were principally related to domestic markets.
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block]
Long-lived Assets
We review our carrying value of our long-lived assets with definite lives whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. When indicators of impairment exist, we determine whether the estimated undiscounted sum of the future cash flows of such assets is less than their carrying amounts. If less, an impairment loss is recognized in the amount, if any, by which the carrying amount of such assets exceeds their respective fair values. The determination of fair value is based on quoted market prices in active markets, if available, or independent appraisals; sales price negotiations; or projected future cash flows discounted at a rate determined by management to be commensurate with our business risk. The estimation of fair value utilizing discounted forecasted cash flows includes significant judgments regarding assumptions of revenue, operating and marketing costs; selling and administrative expenses; interest rates; property and equipment additions and retirements; industry competition; and general economic and business conditions, among other factors.
 
Fair value is based on the prices that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In order to increase consistency and comparability in fair value measurements, a three-tier fair value hierarchy prioritizes the inputs used to measure fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.
Fair Value of Financial Instruments, Policy [Policy Text Block]
Fair Value of Financial Instruments 
Cash and cash equivalents, accounts receivable and accounts payable are reflected in the Condensed Consolidated Financial Statements at carrying value which approximates fair value because of the short-term maturity of these instruments.
Revenue Recognition, Policy [Policy Text Block]
Revenue Recognition
Sales are recognized at the time ownership is transferred to the customer. Revenue is reduced for trade promotions, estimated sales returns, cash discounts and other allowances in the same period as the related sales are recorded. We make estimates of potential future product returns and other allowances related to current period revenue. We analyze historical returns, current trends, and changes in customer and consumer demand when evaluating the adequacy of the sales returns and other allowances.
 
Our return policy accommodates returns for (i) discontinued products, (ii) store closings and (iii) products that have reached or exceeded their designated expiration date. We do not impose a period of time within which product may be returned. All requests for product returns must be submitted to us for pre-approval. The main components of our returns policy are: (i) we will accept returns that are due to damaged product that is un-saleable and such return request activity falls within an acceptable range, (ii) we will accept returns for products that have reached or exceeded designated expiration dates and (iii) we will accept returns in the event that we discontinue a product provided that the customer will have the right to return only such items that it purchased directly from us. We will not accept return requests pertaining to customer inventory “Overstocking” or “Resets”. We will only accept return requests for product in its intended package configuration. We reserve the right to terminate shipment of product to customers who have made unauthorized deductions contrary to our return policy or pursue other methods of reimbursement. We compensate the customer for authorized returns by means of a credit applied to amounts owed or to be owed and in the case of discontinued product only, also by way of an exchange. We do not have any significant product exchange history.
 
As of March 31, 2015 and December 31, 2014, we included a provision for sales allowances of $55,000 and $129,000, respectively, which are reported as a reduction to sales and account receivables. Additionally, accrued advertising and other allowances as of March 31, 2015 included (i) $1.5 million for estimated future sales returns and (ii) $1.6 million for cooperative incentive promotion costs. As of December 31, 2014, accrued advertising and other allowances included (i) $1.5 million for estimated future sales returns and (ii) $2.1 million for cooperative incentive promotion costs.
Advertising and Incentive Promotions [Policy Text Block]
Advertising and Incentive Promotions
Advertising and incentive promotion costs are expensed within the period in which they are utilized. Advertising and incentive promotion expense is comprised of (i) media advertising, presented as part of sales and marketing expense, (ii) cooperative incentive promotions and coupon program expenses, which are accounted for as part of net sales, and (iii) free product, which is accounted for as part of cost of sales. Advertising and incentive promotion expenses incurred for the three months ended March 31, 2015 and 2014 were $3.1 million and $3.4 million, respectively. Included in prepaid expenses and other current assets was $172,000 and $885,000 at March 31, 2015 and December 31, 2014, respectively, relating to prepaid advertising and promotion expenses.
Shipping and Handling Cost, Policy [Policy Text Block]
Shipping and Handling
Product sales carry shipping and handling charges to the purchaser, included as part of the invoiced price, which is classified as revenue. In all cases, costs related to this revenue are recorded in cost of sales.
Compensation Related Costs, Policy [Policy Text Block]
Stock Based Compensation
We recognize all share-based payments to employees and directors, including grants of stock options, as compensation expense in the financial statements based on their fair values. Fair values of stock options are determined through the use of the Black-Scholes option pricing model. The compensation cost is recognized as an expense over the requisite service period of the award, which usually coincides with the vesting period.
 
Stock and stock options for the purchase of our common stock, $0.0005 par value, (“Common Stock”) have been granted to both employees and non-employees pursuant to the terms of certain agreements and stock option plans (see Note 3). Stock options are exercisable during a period determined by us, but in no event later than ten years from the date granted. For the three months ended March 31, 2015 and 2014, we charged to operations $34,000 and $64,000, respectively, for share-based compensation expense for the aggregate fair value of stock grants issued and vested stock options earned.
Consolidation, Variable Interest Entity, Policy [Policy Text Block]
Variable Interest Entity
On March 22, 2010, we, Phosphagenics Limited (“PSI Parent”), an Australian corporation, Phosphagenics Inc. (“PSI”), a Delaware corporation and subsidiary of PSI Parent, and Phusion Laboratories, LLC (the “Joint Venture”), a Delaware limited liability company, entered into a Limited Liability Company Agreement (the “LLC Agreement”) of the Joint Venture and additional related agreements for the purpose of developing and commercializing, for worldwide distribution and sale, a wide range of non-prescription remedies using PSI Parent’s proprietary patented TPM™ technology (“TPM”). The Joint Venture, of which we own a 50% membership interest, qualifies as a variable interest entity (“VIE”), we are the current primary beneficiary and we have consolidated the Joint Venture beginning with the quarter ended March 31, 2010 (see Note 6).
Research and Development Expense, Policy [Policy Text Block]
Research and Development
Research and development costs are charged to operations in the period incurred. Research and development costs for the three months ended March 31, 2015 and 2014 were $208,000 and $278,000, respectively. Research and development costs are principally related to new product development initiatives and costs associated with our OTC cold remedy products.
Income Tax, Policy [Policy Text Block]
Income Taxes
We utilize the asset and liability approach which requires the recognition of deferred tax assets and liabilities for the future tax consequences of events that have been recognized in our financial statements or tax returns. In estimating future tax consequences, we generally consider all expected future events other than enactments of changes in the tax law or rates. Until sufficient taxable income to offset the temporary timing differences attributable to operations and the tax deductions attributable to option, warrant and stock activities are assured, a valuation allowance equaling the total deferred tax asset is being provided (see Note 4).
 
We utilize a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount which is more than fifty percent likely of being realized upon ultimate settlement. Any interest or penalties related to uncertain tax positions will be recorded as interest or administrative expense, respectively.
 
As a result of our continuing tax losses, we have recorded a full valuation allowance against a net deferred tax asset. Additionally, we have not recorded a liability for unrecognized tax benefits.  
New Accounting Pronouncements, Policy [Policy Text Block]
Recently Issued Accounting Standards
In May 2014, the FASB issued new accounting guidance ASU No. 2014-09, “Revenue from Contracts with Customers”, on revenue recognition.  The new standard provides for a single five-step model to be applied to all revenue contracts with customers as well as requires additional financial statement disclosures that will enable users to understand the nature, amount, timing and uncertainty of revenue and cash flows relating to customer contracts.  Companies have an option to use either a retrospective approach or cumulative effect adjustment approach to implement the standard.  There is no option for early adoption.  This ASU is effective for fiscal years and interim periods within those years beginning after December 15, 2016. On April 29, 2015 the FASB issued an exposure draft to extend the effective date of ASU 2014-09 until December 15, 2017.  We are currently assessing the impact of this update, and believe that its adoption will not have a material impact on our consolidated financial statements.
 
In June 2014, the FASB issued new accounting guidance ASU 2014-12, “Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The amendments in this update require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Companies should apply existing guidance in ASC 718, “Compensation - Stock Compensation”, as it relates to awards with performance conditions that affect vesting to account for such awards. The amendments in this update will be effective as of January 1, 2016. Earlier adoption is permitted. We may apply the amendments in this update either: (1) prospectively to all awards granted or modified after the effective date; or (2) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If a retrospective transition is adopted, the cumulative effect of applying this update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. In addition, if a retrospective transition is adopted, we may use hindsight in measuring and recognizing the compensation cost. We are currently assessing the impact of this update, and believe that its adoption on January 1, 2016 will not have a material impact on our consolidated financial statements.
 
In August 2014, the FASB issued ASU 2014-15, “Disclosure of Uncertainties about an Entity’s Ability to Continue as a Going Concern”. The amendments in this update state that in connection with preparing financial statements for each annual and interim reporting period, an entity's management should evaluate whether there are conditions or events that raise substantial doubt about the entity's ability to continue as a going concern within one year after the date that the financial statements are issued (or within one year after the date that the financial statements are available to be issued, when applicable). The amendments in this update are effective for the annual reporting period beginning after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. The adoption of ASU 2014-15 is not expected to have a material impact on our consolidated financial statements.
 
In February 2015, the FASB issued guidance that changes the evaluation criteria for consolidation and related disclosure requirements. This guidance introduces evaluation criteria specific to limited partnerships and other similar entities, as well as amends the criteria for evaluating variable interest entities with which the reporting entity is involved and certain investment funds. The guidance will become effective for us at the beginning of our first quarter of Fiscal 2017. We do not expect the adoption of this guidance will have a material impact on our consolidated financial statements.

Summary of Significant Accounting Policies (Tables)

v2.4.0.8
Summary of Significant Accounting Policies (Tables)
3 Months Ended
Mar. 31, 2015
Accounting Policies [Abstract]  
Schedule of Inventory, Current [Table Text Block]
The components of inventory are as follows (in thousands):
 
 
 
March 31,
 
December 31,
 
 
 
2015
 
2014
 
 
 
 
 
 
 
 
 
Raw materials
 
$
816
 
$
798
 
Work in process
 
 
207
 
 
418
 
Finished goods
 
 
2,254
 
 
2,076
 
 
 
$
3,277
 
$
3,292
 

Commitments and Contingencies (Tables)

v2.4.0.8
Commitments and Contingencies (Tables)
3 Months Ended
Mar. 31, 2015
Commitments and Contingencies Disclosure [Abstract]  
Schedule Of Future Contingency Obligation [Table Text Block]
We have estimated future minimum obligations over the next five years, including the remainder of Fiscal 2015, as follows (in thousands):
 
Fiscal Year
 
Employment
Contracts
 
Godfrey
Settlement
Agreement
 
Total
 
2015
 
 
769
 
 
100
 
 
869
 
2016
 
 
1,025
 
 
100
 
 
1,125
 
2017
 
 
1,025
 
 
-
 
 
1,025
 
2018
 
 
-
 
 
-
 
 
-
 
2019
 
 
-
 
 
-
 
 
-
 
Total
 
$
2,819
 
$
200
 
$
3,019
 

Earnings (Loss) Per Share (Tables)

v2.4.0.8
Earnings (Loss) Per Share (Tables)
3 Months Ended
Mar. 31, 2015
Earnings Per Share [Abstract]  
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block]
A reconciliation of the applicable numerators and denominators of the income statement periods presented, as reflected in the results of continuing operations, is as follows (in thousands, except per share amounts):
 
 
 
Three Months Ended
 
Three Months Ended
 
 
 
March 31, 2015
 
March 31, 2014
 
 
 
Loss
 
Shares
 
EPS
 
Loss
 
Shares
 
EPS
 
Basic earnings (loss) per share
 
$
(1,380)
 
15,892
 
$
(0.09)
 
$
(804)
 
16,469
 
$
(0.05)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Dilutives:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Options
 
 
-
 
-
 
 
-
 
 
-
 
-
 
 
-
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Diluted income (loss) per share
 
$
(1,380)
 
15,892
 
$
(0.09)
 
$
(804)
 
16,469
 
$
(0.05)
 

Summary of Significant Accounting Policies (Details)

v2.4.0.8
Summary of Significant Accounting Policies (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Dec. 31, 2014
Inventory [Line Items]    
Raw materials $ 816 $ 798
Work in process 207 418
Finished goods 2,254 2,076
Inventory, Net $ 3,277 $ 3,292

Summary of Significant Accounting Policies (Details Textual)

v2.4.0.8
Summary of Significant Accounting Policies (Details Textual) (USD $)
3 Months Ended 12 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Dec. 31, 2013
Accounting Policies [Line Items]        
Inventory Adjustments $ 505,000   $ 797,000  
Cash and Cash Equivalents, At Carrying Value 5,021,000 5,519,000 2,926,000 1,638,000
Cash, FDIC Insured Amount 582,000      
Cash, Uninsured Amount 4,700,000      
Due from Banks 5,300,000      
Provision of Sales Allowance 55,000   129,000  
Marketing and Advertising Expense 3,100,000 3,400,000    
Prepaid expenses and other current assets 670,000   1,404,000  
Research and development 208,000 278,000    
Common Stock, par value (in dollars per share) $ 0.0005   $ 0.0005  
Share-based Compensation 34,000 64,000    
Estimated Future Sales Return [Member]
       
Accounting Policies [Line Items]        
Accrued Liabilities 1,500,000   1,500,000  
Cooperative Incentive [Member]
       
Accounting Policies [Line Items]        
Accrued Liabilities 1,600,000   2,100,000  
Sales Revenue, Goods, Net [Member]
       
Accounting Policies [Line Items]        
Concentration Risk, Percentage 93.00% 95.00%    
Building and Building Improvements [Member] | Maximum [Member]
       
Accounting Policies [Line Items]        
Property, Plant and Equipment, Useful Life 39 years      
Building and Building Improvements [Member] | Minimum [Member]
       
Accounting Policies [Line Items]        
Property, Plant and Equipment, Useful Life 10 years      
Machinery and Equipment [Member] | Maximum [Member]
       
Accounting Policies [Line Items]        
Property, Plant and Equipment, Useful Life 7 years      
Machinery and Equipment [Member] | Minimum [Member]
       
Accounting Policies [Line Items]        
Property, Plant and Equipment, Useful Life 3 years      
Computer Software, Intangible Asset [Member]
       
Accounting Policies [Line Items]        
Property, Plant and Equipment, Useful Life 3 years      
Furniture and Fixtures [Member]
       
Accounting Policies [Line Items]        
Property, Plant and Equipment, Useful Life 5 years      
Advertising and Incentive Promotion Costs [Member]
       
Accounting Policies [Line Items]        
Prepaid expenses and other current assets $ 172,000   $ 885,000  

Transactions Affecting Stockholders' Equity (Details Textual)

v2.4.0.8
Transactions Affecting Stockholders' Equity (Details Textual) (USD $)
3 Months Ended 1 Months Ended 3 Months Ended 7 Months Ended 3 Months Ended 3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Dec. 31, 2014
Nov. 21, 2012
2012 Equity Line of Credit [Member]
May 28, 2014
2014 Equity Line of Credit [Member]
Mar. 31, 2015
2014 Equity Line of Credit [Member]
Dec. 31, 2014
2014 Equity Line of Credit [Member]
Mar. 31, 2015
Ted Karkus [Member]
Mar. 31, 2015
Plan 1997 [Member]
Mar. 31, 2015
Plan 2010 [Member]
Mar. 31, 2015
Directors Plan 2010 [Member]
Mar. 31, 2015
Amended Option Plan 1997 [Member]
Mar. 31, 2015
Common Stock [Member]
Dutchess [Member]
2012 Equity Line of Credit [Member]
Stockholders' Equity [Line Items]                          
Maximum Number Of Common Stock Authorized For Issuance Over 36 Months       2,500,000 3,000,000                
Investor Right To Use Excess Proceeds, Maximum Percentage           5.00%              
Share Purchase Put Restrictions Maximum Percentage Of Ownership Held By Investor To Purchase Shares In Equity Line Of Credit           4.99%              
Stock Issued During Period Shares Under Specific Agreement                         698,207
Stock Issued During Period Value Specific Agreement                         $ 1,200,000
Common Stock, Capital Shares Reserved for Future Issuance         3,000,000 438,480              
Options outstanding - Shares                 26,500        
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized                   1,600,000 425,000    
Share Based Compensation Arrangement By Share Based Payment Award, Options, Deemed Cancelled                   581,750      
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures                       4,500,000  
Share Based Compensation Arrangement By Share Based Payment Award Options Grants In Period Common Stock Shares Unissued                 2,500,000        
Equity Method Investment Ownership Percentage Required For Rights Exercisable Under Right Agreement 15.00%                        
Equity Method Investment, Ownership Percentage               20.00%          
Equity Line, Purchase Price Percentage           95.00%              
Available for grant, Shares (in shares)                 900,000 19,659 147,808    
Common Stock, Shares, Issued 25,125,113   25,125,113       2,561,520            
Proceeds From Issuance Of Common Stock 0 947,000         3,700,000            
Class of Warrant or Right, Exercise Price of Warrants or Rights $ 45                        
Agreement Term         36 months                
Purchase Price Value           $ 500,000              
Common Stock, Capital Shares Reserved For Future Issuance         3,000,000 438,480              
Cash Less Exercise Of Right Terms In the event of a cashless exercise of the Right and the acquirer has acquired less than 50% beneficial ownership of the Company                        
Share Based Compensation Arrangement By Share Based Payment Option Expiration Terms No incentive stock option could be exercisable more than ten years after the date of grant or five years after the date of grant where the individual owns more than ten percent of the total combined voting power of all classes of stock. Stockholders approved the 1997 Plan in Fiscal 1998                        
Percentage Of Discount On Exercise Of Right 50.00%                        
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period                 1,481,750        

Income Taxes (Details Textual)

v2.4.0.8
Income Taxes (Details Textual) (USD $)
In Millions, unless otherwise specified
12 Months Ended
Dec. 31, 2014
Domestic Tax Authority [Member]
 
Income Taxes [Line Items]  
Deferred Tax Assets, Operating Loss Carryforwards, Domestic $ 38.6
Operating Loss Carry forwards Expiration Dates Description Fiscal 2020 through Fiscal 2033
State and Local Jurisdiction [Member]
 
Income Taxes [Line Items]  
Operating Loss Carry forwards Expiration Dates Description Fiscal 2018 through Fiscal 2033
Deferred Tax Assets, Operating Loss Carryforwards, State and Local $ 20.1

Commitments and Contingencies (Details)

v2.4.0.8
Commitments and Contingencies (Details) (USD $)
In Thousands, unless otherwise specified
Mar. 31, 2015
Commitments And Contingencies [Line Items]  
2015 $ 869
2016 1,125
2017 1,025
2018 0
2019 0
Total 3,019
Employment Contracts [Member]
 
Commitments And Contingencies [Line Items]  
2015 769
2016 1,025
2017 1,025
2018 0
2019 0
Total 2,819
Godfrey Settlement Agreement [Member]
 
Commitments And Contingencies [Line Items]  
2015 100
2016 100
2017 0
2018 0
2019 0
Total $ 200

Commitments and Contingencies (Details Textual)

v2.4.0.8
Commitments and Contingencies (Details Textual) (USD $)
1 Months Ended 12 Months Ended
Dec. 20, 2012
Dec. 31, 2014
Dec. 31, 2012
Mar. 31, 2015
Commitments And Contingencies [Line Items]        
Payments for Legal Settlements     $ 2,100,000  
Settlement benefit (Note 3)   10,000    
Additional Royalties and Commissions, Accrual Interest Percentage   3.25%    
Additional Royalties and Commissions Payable, Installment Amount 100,000 100,000    
Additional Annual Installment Includes In Other Current Liability       100,000
Additional Annual Installment Includes In Other Long Term Obligation   $ 100,000    

Investment in a Joint Venture (Details Textual)

v2.4.0.8
Investment in a Joint Venture (Details Textual) (USD $)
In Millions, except Share data, unless otherwise specified
12 Months Ended 1 Months Ended
Dec. 31, 2014
Mar. 31, 2010
PSI Technology License [Member]
Mar. 31, 2010
PSI Parent [Member]
Schedule of Investments [Line Items]      
Stock Issued During Period, Shares, New Issues     1,440,000
Stock Issued During Period, Value, New Issues     $ 2.6
Payments To Fund Joint Venture Investments     1.0
Intangible Assets, Net (Excluding Goodwill)   3.6  
Asset Impairment Charges $ 3.6    

Earnings (Loss) Per Share (Details)

v2.4.0.8
Earnings (Loss) Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Earnings Loss Per Share [Line Items]    
Basic EPS - Income (Loss) $ (1,380) $ (804)
Basic EPS - Shares (in shares) 15,892 16,469
Basic EPS - EPS (in dollars per share) $ (0.09) $ (0.05)
Dilutives:    
Options/Warrants - Loss 0 0
Options/Warrants - Shares (in shares) 0 0
Options/Warrants - EPS (in dollars per share) $ 0 $ 0
Diluted EPS - Income (Loss) $ (1,380) $ (804)
Diluted EPS - Shares (in shares) 15,892 16,469
Diluted EPS - EPS (in dollars per share) $ (0.09) $ (0.05)

Earnings (Loss) Per Share (Details Textual)

v2.4.0.8
Earnings (Loss) Per Share (Details Textual)
3 Months Ended
Mar. 31, 2015
Mar. 31, 2014
Earnings Loss Per Share [Line Items]    
Class of Warrant or Right, Outstanding 1,739,500 1,637,500
Common Stock Equivalents [Member]
   
Earnings Loss Per Share [Line Items]    
Weighted Average Number Diluted Shares Outstanding Adjustment 358,411 586,215