13. Professional Fees and Other Expenses

In late 2012, a hedge fund manager publicly raised allegations regarding the legality of the Company’s network marketing program and announced that the hedge fund manager had taken a significant short position regarding the Company’s common shares, leading to intense public scrutiny and significant stock price volatility. The Company believes that the hedge fund manager’s allegations are inaccurate and misleading. The Company has engaged legal and advisory firms to assist with responding to the allegations and to perform other related services in connection to these events. For the three months ended June 30, 2016 and 2015, the Company recorded approximately $4.6 million and $7.1 million, respectively, and for the six months ended June 30, 2016 and 2015, the Company recorded approximately $7.5 million and $11.4 million, respectively, of professional fees and other expenses related to this matter.