[X] | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended September 30, 2017 | |
[ ] | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the Transition Period From ________ to _________ |
Nevada | 20-0019425 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
321 South 1250 West, Suite 1 | |
Lindon, Utah | 84042 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer [ ] | Accelerated filer [ ] |
Non-accelerated filer [ ] | Smaller reporting company [ X] |
(Do not check if a smaller reporting company) | Emerging growth company [ ] |
Page | ||
PART I — FINANCIAL INFORMATION | ||
Item 1. Financial Statements | ||
Condensed Consolidated Balance Sheets | ||
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) (Unaudited) | ||
Condensed Consolidated Statements of Cash Flows (Unaudited) | ||
Notes to Condensed Consolidated Financial Statements (Unaudited) | ||
Item 2. Management's Discussion and Analysis of Financial Condition And Results of Operations | ||
Item 3. Quantitative and Qualitative Disclosure about Market Risk | ||
Item 4. Controls and Procedures | ||
PART II — OTHER INFORMATION | ||
Item 1. Legal Proceedings | ||
Item 1A. Risk Factors | ||
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | ||
Item 3. Defaults Upon Senior Securities | ||
Item 4. Mine Safety Disclosures | ||
Item 5. Other Information | ||
Item 6. Exhibits | ||
Signatures |
PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Balance Sheets | ||||||||
As of | ||||||||
September 30, 2017 | December 31, 2016 | |||||||
(Unaudited) | ||||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 9,784,793 | $ | 9,316,036 | ||||
Short term investments | 854,323 | 2,965,536 | ||||||
Investments - other | 3,010,000 | 2,250,000 | ||||||
Accounts receivable, net | 7,644,918 | 5,633,802 | ||||||
Inventories, net | 6,934,821 | 7,839,503 | ||||||
Income tax receivable | 55,682 | 180,981 | ||||||
Prepaid expenses & other current assets | 505,082 | 410,558 | ||||||
Total Current Assets | 28,789,619 | 28,596,416 | ||||||
LONG-TERM ASSETS | ||||||||
Net deferred tax asset | 200,239 | 60,940 | ||||||
Long-term investments | 7,798,848 | 5,504,997 | ||||||
Property and equipment, net | 7,016,570 | 7,458,723 | ||||||
Goodwill | 997,701 | 997,701 | ||||||
Intangible assets, net | 505,875 | 490,082 | ||||||
Total Long-Term Assets | 16,519,233 | 14,512,443 | ||||||
TOTAL ASSETS | $ | 45,308,852 | $ | 43,108,859 | ||||
CURRENT LIABILITIES | ||||||||
Accounts payable | 794,464 | 1,220,478 | ||||||
Accrued vacation | 192,579 | 154,307 | ||||||
Accrued liabilities | 814,404 | 284,214 | ||||||
Income taxes payable | 774,361 | 61,543 | ||||||
Total Current Liabilities | 2,575,808 | 1,720,542 | ||||||
TOTAL LIABILITIES | 2,575,808 | 1,720,542 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding | — | — | ||||||
Common shares: $0.001 par value, 100,000,000 shares authorized: 53,692,460 issued and 48,471,890 outstanding at September 30, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016 | 53,692 | 53,582 | ||||||
Treasury stock, at cost | (6,703,521 | ) | (3,582,805 | ) | ||||
Additional paid-in capital | 27,249,628 | 26,800,298 | ||||||
Accumulated other comprehensive loss | (2,096,731 | ) | (2,810,743 | ) | ||||
Retained earnings | 24,229,976 | 20,927,985 | ||||||
Total Stockholders' Equity | 42,733,044 | 41,388,317 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 45,308,852 | $ | 43,108,859 |
PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||||||||||
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) | ||||||||||||||||
(Unaudited) | ||||||||||||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
2017 | 2016 | 2017 | 2016 | |||||||||||||
REVENUES | ||||||||||||||||
Sales of goods, net | $ | 9,387,232 | $ | 4,507,044 | $ | 25,514,149 | $ | 11,942,860 | ||||||||
Sales of services, net | 662,960 | 483,769 | 1,825,528 | 1,565,649 | ||||||||||||
Total Revenues | 10,050,192 | 4,990,813 | 27,339,677 | 13,508,509 | ||||||||||||
COST OF SALES | ||||||||||||||||
Cost of goods sold-product | 4,509,191 | 1,977,658 | 11,600,019 | 5,470,866 | ||||||||||||
Cost of goods sold-services | 479,206 | 388,496 | 1,333,819 | 1,198,838 | ||||||||||||
Total Cost of Goods Sold | 4,988,397 | 2,366,154 | 12,933,838 | 6,669,704 | ||||||||||||
GROSS PROFIT | 5,061,795 | 2,624,659 | 14,405,839 | 6,838,805 | ||||||||||||
OPERATING EXPENSES | ||||||||||||||||
General and administrative expenses | 2,771,869 | 2,328,100 | 8,454,235 | 7,383,766 | ||||||||||||
Research and development | 318,621 | 263,712 | 798,142 | 667,957 | ||||||||||||
Depreciation and amortization expense | 125,898 | 160,216 | 405,811 | 461,993 | ||||||||||||
Total Operating Expenses | 3,216,388 | 2,752,028 | 9,658,188 | 8,513,716 | ||||||||||||
INCOME (LOSS) FROM OPERATIONS | 1,845,407 | (127,369 | ) | 4,747,651 | (1,674,911 | ) | ||||||||||
OTHER INCOME (EXPENSE) | ||||||||||||||||
Gain (loss) on sale of fixed assets | 14,017 | — | 62,492 | (1,705 | ) | |||||||||||
Other (expense) income | 25,991 | 82,452 | 39,377 | (189,106 | ) | |||||||||||
Interest income | 41,672 | 19,668 | 127,790 | 53,030 | ||||||||||||
Total Other Income (Expense) | 81,680 | 102,120 | 229,659 | (137,781 | ) | |||||||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | 1,927,087 | (25,249 | ) | 4,977,310 | (1,812,692 | ) | ||||||||||
Income tax expense (benefit) | 709,169 | (99,701 | ) | 1,846,634 | (517,232 | ) | ||||||||||
NET INCOME (LOSS) | $ | 1,217,918 | $ | 74,452 | $ | 3,130,676 | $ | (1,295,460 | ) | |||||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||||||||||
Foreign currency translation gain (loss) | $ | 327,271 | $ | (202,520 | ) | $ | 640,927 | $ | (1,041,937 | ) | ||||||
Unrealized gains (losses) on investments, net of tax | 10,138 | (20,621 | ) | 73,085 | (20,621 | ) | ||||||||||
Total Other Comprehensive Income (Loss) | 337,409 | (223,141 | ) | 714,012 | (1,062,558 | ) | ||||||||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 1,555,327 | $ | (148,689 | ) | $ | 3,844,688 | $ | (2,358,018 | ) | ||||||
BASIC EARNINGS (LOSS) PER SHARE | $ | 0.03 | $ | — | $ | 0.06 | $ | (0.02 | ) | |||||||
FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ | 0.02 | $ | — | $ | 0.06 | $ | (0.02 | ) | |||||||
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 48,552,770 | 53,215,385 | 49,613,704 | 53,274,855 | ||||||||||||
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 49,369,835 | 54,091,419 | 50,346,333 | 53,274,855 |
PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
Condensed Consolidated Statements of Cash Flows | ||||||||
(Unaudited) | ||||||||
For the Nine Months Ended September 30, | ||||||||
2017 | 2016 | |||||||
OPERATING ACTIVITIES | ||||||||
Net Income (Loss) | $ | 3,130,676 | $ | (1,295,460 | ) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization expense | 675,223 | 764,906 | ||||||
Loss (Gain) on sale of fixed assets | (62,310 | ) | 1,705 | |||||
Bad debt expense | 147,470 | 247,568 | ||||||
Stock options issued for services | 648,244 | 460,212 | ||||||
Changes in operating assets and liabilities: | ||||||||
Changes in accounts receivable | (2,024,858 | ) | 2,594,557 | |||||
Changes in income taxes receivable/payable | 840,343 | (785,089 | ) | |||||
Changes in inventories | 634,646 | 2,098,574 | ||||||
Changes in prepaid expenses | (93,669 | ) | (119,238 | ) | ||||
Changes in deferred tax asset/liability | (139,298 | ) | 140,488 | |||||
Changes in accounts payable and accrued liabilities | 588,868 | (710,012 | ) | |||||
Net Cash Provided by Operating Activities | 4,345,335 | 3,398,211 | ||||||
INVESTING ACTIVITIES | ||||||||
Proceeds from sale of equipment | 140,198 | 59,013 | ||||||
Purchase of investments | (869,554 | ) | (11,143,504 | ) | ||||
Purchase of fixed assets | (214,632 | ) | (7,140 | ) | ||||
— | ||||||||
Net Cash Used in Investing Activities | (943,988 | ) | (11,091,631 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Value of equity awards surrendered by employees for tax liability | (25,667 | ) | (99 | ) | ||||
Purchase of Treasury stock | (3,120,716 | ) | (261,544 | ) | ||||
Net Cash Used in Financing Activities | (3,146,383 | ) | (261,643 | ) | ||||
Effect of exchange rate changes on cash | 213,793 | 348,348 | ||||||
NET INCREASE IN CASH | 468,757 | (7,606,715 | ) | |||||
CASH AT BEGINNING OF PERIOD | 9,316,036 | 19,281,501 | ||||||
CASH AT END OF PERIOD | $ | 9,784,793 | $ | 11,674,786 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
CASH PAID FOR: | ||||||||
Interest | $ | — | $ | — | ||||
Income taxes | $ | 1,282,157 | $ | — |
As of | |||||||
September 30, 2017 | December 31, 2016 | ||||||
Raw materials | $ | 69,149 | $ | 940,527 | |||
Finished goods | 7,120,645 | 7,112,098 | |||||
Work in process | — | — | |||||
Subtotal | 7,189,794 | 8,052,625 | |||||
Reserve for Obsolescence | (254,973 | ) | (213,122 | ) | |||
Total | $ | 6,934,821 | $ | 7,839,503 |
September 30, 2017 | ||||||||||||||||||||||||
Adjusted Cost | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short Term Investments | Long Term Investments | |||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Money Market Funds | $ | 336,372 | $ | — | $ | 336,372 | $ | 336,372 | $ | — | $ | — | ||||||||||||
Mutual Funds | 1,626,236 | (35,246 | ) | 1,590,990 | — | — | 1,590,990 | |||||||||||||||||
Subtotal | 1,962,608 | (35,246 | ) | 1,927,362 | 336,372 | — | 1,590,990 | |||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Certificates of Deposit | $ | 3,010,000 | $ | — | $ | 3,010,000 | $ | — | $ | 3,010,000 | $ | — | ||||||||||||
Corporate Bonds | 2,384,269 | (18,896 | ) | 2,365,373 | — | 454,252 | 1,911,121 | |||||||||||||||||
Municipal Bonds | 4,705,311 | (8,503 | ) | 4,696,808 | — | 400,071 | 4,296,737 | |||||||||||||||||
Subtotal | 10,099,580 | (27,399 | ) | 10,072,181 | — | 3,864,323 | 6,207,858 | |||||||||||||||||
Total | $ | 12,062,188 | $ | (62,645 | ) | $ | 11,999,543 | $ | 336,372 | $ | 3,864,323 | $ | 7,798,848 |
December 31, 2016 | ||||||||||||||||||||||||
Adjusted Cost | Gross Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short Term Investments | Long Term Investments | |||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Money Market Funds | $ | 1,053,844 | $ | — | $ | 1,053,844 | $ | 1,053,844 | $ | — | $ | — | ||||||||||||
Mutual Funds | 1,473,536 | (90,495 | ) | 1,383,041 | — | — | 1,383,041 | |||||||||||||||||
Subtotal | 2,527,380 | (90,495 | ) | 2,436,885 | 1,053,844 | — | 1,383,041 | |||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Certificates of Deposit | $ | 2,250,000 | $ | — | $ | 2,250,000 | $ | — | $ | 2,250,000 | $ | — | ||||||||||||
Corporate Bonds | 2,246,956 | (29,419 | ) | 2,217,537 | — | 400,053 | 1,817,484 | |||||||||||||||||
Municipal Bonds | 4,929,249 | (59,294 | ) | 4,869,955 | — | 2,565,483 | 2,304,472 | |||||||||||||||||
Subtotal | 9,426,205 | (88,713 | ) | 9,337,492 | — | 5,215,536 | 4,121,956 | |||||||||||||||||
Total | $ | 11,953,585 | $ | (179,208 | ) | $ | 11,774,377 | $ | 1,053,844 | $ | 5,215,536 | $ | 5,504,997 |
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||
Sales | 2017 | 2016 | 2017 | 2016 | |||||||
Canada | 1,982,739 | 1,273,863 | 5,024,957 | 3,461,708 | |||||||
United States | 8,067,453 | 3,716,950 | 22,314,720 | 10,046,801 | |||||||
Total Consolidated | 10,050,192 | 4,990,813 | 27,339,677 | 13,508,509 | |||||||
For the Three Months Ended September 30, | For the Nine Months Ended September 30, | ||||||||||
Profit (Loss) | 2017 | 2016 | 2017 | 2016 | |||||||
Canada | 193,636 | (114,114) | (141,874) | (572,136) | |||||||
United States | 1,024,282 | 188,566 | 3,272,550 | (723,324) | |||||||
Total Consolidated | 1,217,918 | 74,452 | 3,130,676 | (1,295,460) | |||||||
As of | |||||||||||
Long-lived assets | September 30, 2017 | December 31, 2016 | |||||||||
Canada | $ | 1,547,689 | $ | 1,472,207 | |||||||
United States | 14,971,544 | 13,040,236 | |||||||||
Total Consolidated | $ | 16,519,233 | $ | 14,512,443 |
Three Months Ended September 30, 2017 | Nine Months Ended September 30, 2017 | |||||||||||||||||||
Income (Numerator) | Weighted Average Shares (Denominator) | Per-Share Amount | Income (Numerator) | Weighted Average Shares (Denominator) | Per-Share Amount | |||||||||||||||
Basic EPS | ||||||||||||||||||||
Net income available to common stockholders | 1,217,918 | 48,552,770 | $ | 0.03 | 3,130,676 | 49,613,704 | $ | 0.06 | ||||||||||||
Effect of Dilutive Securities | ||||||||||||||||||||
Stock options & RSUs | — | 817,065 | — | 732,629 | ||||||||||||||||
Diluted EPS | ||||||||||||||||||||
Net income available to common stockholders + assumed conversions | 1,217,918 | 49,369,835 | $ | 0.02 | 3,130,676 | 50,346,333 | $ | 0.06 |
Three months ended September 30, 2016 | Nine Months Ended September 30, 2016 | |||||||||||||||||||
Income (Numerator) | Weighted Average Shares (Denominator) | Per-Share Amount | Income (Numerator) | Weighted Average Shares (Denominator) | Per-Share Amount | |||||||||||||||
Basic EPS | ||||||||||||||||||||
Net income available to common stockholders | 74,452 | 53,215,385 | $ | — | (1,295,460 | ) | 53,274,855 | $ | (0.02 | ) | ||||||||||
Effect of Dilutive Securities | ||||||||||||||||||||
Stock options & RSUs | — | 876,034 | — | — | ||||||||||||||||
Diluted EPS | ||||||||||||||||||||
Net income available to common stockholders + assumed conversions | 74,452 | 54,091,419 | $ | — | (1,295,460 | ) | 53,274,855 | $ | (0.02 | ) |
For the three months ended | ||||||||||||||
September 30, 2017 | June 30, 2017 | March 31,2017 | December 31, 2016 | September 30, 2016 | ||||||||||
Total Revenues | $10,050,192 | $9,464,951 | $7,824,495 | $7,022,330 | $4,990,813 | |||||||||
Gross Profit Percentage | 50.4 | % | 52.6 | % | 55.8 | % | 50.7 | % | 52.6 | % | ||||
Operating Expenses | $3,216,388 | $3,145,669 | $3,296,131 | $2,890,716 | $2,752,028 | |||||||||
Net Income (Loss) | $1,217,918 | $1,312,647 | $600,071 | $608,896 | $74,452 | |||||||||
Operating Cash Flow | $1,579,809 | $800,580 | $1,964,946 | $538,358 | $1,108,674 |
For the nine months ended | |||||||
September 30, 2017 | September 30, 2016 | $ Change | % Change | ||||
Total Revenues | $27,339,677 | $13,508,509 | $13,831,168 | 102% | |||
Gross Profit Percentage | 53% | 51% | N/A | 2% | |||
Operating Expenses | $9,658,188 | $8,513,716 | $1,144,472 | 13% | |||
Net Income (Loss) | $3,130,676 | $(1,295,460) | $4,426,136 | 342% | |||
Operating Cash Flow | $4,345,335 | $3,398,211 | $947,124 | 28% |
• | Hired third parties to provide advice on COSO framework and risk control matrices; |
• | Implemented Company-wide trainings over internal controls in relation with new accounting standard operating procedures, including the requirement of supplying supporting evidence, proving the level of precision with which a control is performed, etc.; |
• | Required evidence of review in nearly all controls; |
• | Reviewed and updated each employee's access within the enterprise resource management system; |
• | Required purchase orders agree with sales orders within a certain threshold; |
• | Required written and verbal confirmation for wire transfers; |
• | Revised the processes over financial reporting, including preparation of the cash flow statement and tax provision; and |
• | Implemented new controls over equity awards to ensure compliance with laws, regulations, and plan limitations. |
Period | (a) Total Number of Shares Purchased(1) | (b) Weighted Average Price Paid Per Share | (c) Total Number of Shares Purchased as Part of Publicly Announced Plans | (d) Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans | ||||||||||
July, 2017 | 89,073 | $ | 1.38 | 89,073 | $ | 1,756,565 | ||||||||
August, 2017 | 61,132 | $ | 1.32 | 61,132 | $ | 1,672,604 | ||||||||
September, 2017 | 48,241 | $ | 1.31 | 48,241 | $ | 1,590,051 | ||||||||
Total | 198,446 | 198,446 |
Amended and Restated Employment Agreement, dated August 3, 2017, by and between Profire Energy, Inc. and Ryan W. Oviatt (incorporated by reference to Exhibit 10.1 to Company's Current Report on Form 8-K filed on August 9, 2017). | |
Amended and Restated Employment Agreement, dated August 3, 2017, by and between Profire Energy, Inc. and Brenton W. Hatch (incorporated by reference to Exhibit 10.1 to Company's Current Report on Form 8-K filed on August 9, 2017). | |
Restricted Stock Unit Award Agreement dated October 12, 2017, between Profire Energy, Inc. and Ryan Oviatt (incorporated by reference to Exhibit 10.1 to Company's Current Report on Form 8-K filed on October 17, 2017). | |
Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) | |
Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) | |
Certification of Principal Executive Officer Pursuant to 18 U.S.C. Section 1350 | |
Certification of Principal Financial Officer Pursuant to 18 U.S.C. Section 1350 | |
Exhibit 101.INS* | XBRL Instance Document |
Exhibit 101.SCH* | XBRL Taxonomy Extension Schema Document |
Exhibit 101.CAL* | XBRL Taxonomy Extension Calculation Linkbase Document |
Exhibit 101.DEF* | XBRL Taxonomy Definition Linkbase Document |
Exhibit 101.LAB* | XBRL Taxonomy Extension Label Linkbase Document |
Exhibit 101.PRE* | XBRL Taxonomy Extension Presentation Linkbase Document |
PROFIRE ENERGY, INC. | |||
Date: | November 8, 2017 | By: | /s/ Brenton W. Hatch |
Brenton W. Hatch | |||
Chief Executive Officer |
Date: | November 8, 2017 | By: | /s/ Ryan W. Oviatt |
Ryan W. Oviatt | |||
Chief Financial Officer |
a) | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 8, 2017 | By: | /s/ Brenton W. Hatch | |
Brenton W. Hatch | ||||
Chief Executive Officer |
a) | Designed such disclosure controls and procedures or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
c) | Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures as of the end of the period covered by this report based on such evaluation; and |
d) | Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and |
a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and |
b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting. |
Date: | November 8, 2017 | By: | /s/ Ryan W. Oviatt | |
Ryan W. Oviatt | ||||
Chief Financial Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | November 8, 2017 | By: | /s/ Brenton W. Hatch | |
Brenton W. Hatch | ||||
Chief Executive Officer |
(1) | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
(2) | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: | November 8, 2017 | By: | /s/ Ryan W. Oviatt | |
Ryan W. Oviatt | ||||
Chief Financial Officer |
Document and Entity Information - shares |
9 Months Ended | |
---|---|---|
Sep. 30, 2017 |
Nov. 03, 2017 |
|
Document and Entity Information: | ||
Entity Registrant Name | Profire Energy Inc | |
Document Type | 10-Q | |
Document Period End Date | Sep. 30, 2017 | |
Trading Symbol | pfie | |
Amendment Flag | false | |
Entity Central Index Key | 0001289636 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 48,423,370 | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Year Focus | 2017 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Stock Transactions, Parenthetical Disclosures [Abstract] | ||
Preferred stock par value (dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized (shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (shares) | 0 | 0 |
Preferred stock shares outstanding (shares) | 0 | 0 |
Common stock par value (dollars per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (shares) | 53,692,460 | 53,582,250 |
Common stock shares outstanding (shares) | 48,471,890 | 50,705,933 |
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) - USD ($) |
3 Months Ended | 9 Months Ended | ||
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Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
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REVENUES | ||||
Sales of goods, net | $ 9,387,232 | $ 4,507,044 | $ 25,514,149 | $ 11,942,860 |
Sales of services, net | 662,960 | 483,769 | 1,825,528 | 1,565,649 |
Total Revenues | 10,050,192 | 4,990,813 | 27,339,677 | 13,508,509 |
COST OF SALES | ||||
Cost of goods sold-product | 4,509,191 | 1,977,658 | 11,600,019 | 5,470,866 |
Cost of goods sold-services | 479,206 | 388,496 | 1,333,819 | 1,198,838 |
Total Cost of Goods Sold | 4,988,397 | 2,366,154 | 12,933,838 | 6,669,704 |
GROSS PROFIT | 5,061,795 | 2,624,659 | 14,405,839 | 6,838,805 |
OPERATING EXPENSES | ||||
General and administrative expenses | 2,771,869 | 2,328,100 | 8,454,235 | 7,383,766 |
Research and development | 318,621 | 263,712 | 798,142 | 667,957 |
Depreciation and amortization expense | 125,898 | 160,216 | 405,811 | 461,993 |
Total Operating Expenses | 3,216,388 | 2,752,028 | 9,658,188 | 8,513,716 |
INCOME (LOSS) FROM OPERATIONS | 1,845,407 | (127,369) | 4,747,651 | (1,674,911) |
OTHER INCOME (EXPENSE) | ||||
Gain (loss) on sale of fixed assets | 14,017 | 0 | 62,492 | (1,705) |
Other (expense) income | 25,991 | 82,452 | 39,377 | (189,106) |
Interest income | 41,672 | 19,668 | 127,790 | 53,030 |
Total Other Income (Expense) | 81,680 | 102,120 | 229,659 | (137,781) |
NET INCOME (LOSS) BEFORE INCOME TAXES | 1,927,087 | (25,249) | 4,977,310 | (1,812,692) |
Income tax expense (benefit) | 709,169 | (99,701) | 1,846,634 | (517,232) |
NET INCOME (LOSS) | 1,217,918 | 74,452 | 3,130,676 | (1,295,460) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation gain (loss) | 327,271 | (202,520) | 640,927 | (1,041,937) |
Unrealized gains (losses) on investments, net of tax | 10,138 | (20,621) | 73,085 | (20,621) |
Total Other Comprehensive Income (Loss) | 337,409 | (223,141) | 714,012 | (1,062,558) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 1,555,327 | $ (148,689) | $ 3,844,688 | $ (2,358,018) |
BASIC EARNINGS (LOSS) PER SHARE (dollars per share) | $ 0.03 | $ 0.00 | $ 0.06 | $ (0.02) |
FULLY DILUTED EARNINGS (LOSS) PER SHARE (dollars per share) | $ 0.02 | $ 0.00 | $ 0.06 | $ (0.02) |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares) | 48,552,770 | 53,215,385 | 49,613,704 | 53,274,855 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares) | 49,369,835 | 54,091,419 | 50,346,333 | 53,274,855 |
CONDENSED FINANCIAL STATEMENTS |
9 Months Ended |
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Sep. 30, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONDENSED FINANCIAL STATEMENTS | CONDENSED FINANCIAL STATEMENTS Except where the context otherwise requires, references herein to the "Company" are to Profire Energy, Inc. and its wholly owned subsidiary, taken together. The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments, except for the adoption of ASU 2016-09 discussed below) necessary to present fairly the financial position, results of operations and cash flows at September 30, 2017 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements contained in its transition report on Form 10-K for the transition period ended December 31, 2016. The results of operations for the period ended September 30, 2017 and 2016 are not necessarily indicative of the operating results for the full years. |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
9 Months Ended |
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Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Line of Business This Organization and Summary of Significant Accounting Policies of the Company is presented to assist in understanding the Company's consolidated financial statements. The Company's accounting policies conform to accounting principles generally accepted in the United States of America ("US GAAP"). Profire Energy, Inc. was established on October 9, 2008 upon the closing of transactions contemplated by an Acquisition Agreement among The Flooring Zone, Inc., Profire Combustion, Inc. (the "Subsidiary") and the shareholders of the Subsidiary. Following the closing of the transactions, The Flooring Zone, Inc. was renamed Profire Energy, Inc. (the "Parent"). Pursuant to the terms and conditions of the Acquisition Agreement, 35,000,000 shares of restricted common stock of the Parent were issued to the three shareholders of the Subsidiary in exchange for all of the issued and outstanding shares of the Subsidiary. As a result of the transaction, the Subsidiary became a wholly-owned subsidiary of the Parent and the shareholders of the Subsidiary became the controlling shareholders of the Parent. The Parent was incorporated on May 5, 2003 in the State of Nevada. The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada. The Company provides burner and chemical management products and services for the oil and gas industry primarily in the Canadian and US markets. Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the Notes to the Consolidated Financial Statements in the Company's most recent 10-K, except as discussed below. Stock-Based Compensation In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Several aspects of the accounting for share-based payment awards are simplified under ASU No. 2016-09, including accounting for and classification of various taxes, classification of awards as equity or liabilities, classification of various amounts on the statement of cash flows, and accounting for forfeitures. This standard became effective for the Company on January 1, 2017. As part of this standard, companies can choose whether to recognize forfeitures as they occur or continue to estimate forfeitures with periodic true-ups. The Company has elected to recognize forfeitures as they occur. This election was made on a modified NOTE 2 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) retrospective basis with the cumulative effect recognized in beginning retained earnings of the current period; therefore, amounts in prior periods have not been restated. The total adjustment was $171,315 as a reduction of APIC and increase in retained earnings. Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Company's financial position, results of operations or cash flows. Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on financial position, net income, or stockholders' equity. |
INVENTORY |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORY | INVENTORY Inventories consisted of the following at each balance sheet date:
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STOCKHOLDERS' EQUITY |
9 Months Ended |
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Sep. 30, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As of September 30, 2017 and December 31, 2016, the Company held 5,220,570 and 2,876,317 shares of its common stock in treasury at a total cost of $6,703,521 and $3,582,805, respectively. All purchases of treasury stock have been made at market rates. On May 25, 2017, the Company repurchased 1,300,000 shares of its common stock from the Company's CEO for a total price of $1,703,000. This repurchase is included in the treasury stock described in the preceding paragraph. For further details, refer to the Stock Redemption Agreement filed as exhibit 10.2 to the Company's quarterly report for the quarterly period ended June 30, 2017. |
FINANCIAL INSTRUMENTS AND INVESTMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND INVESTMENTS | FINANCIAL INSTRUMENTS AND INVESTMENTS The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. NOTE 5 - FINANCIAL INSTRUMENTS AND INVESTMENTS (CONTINUED) The following tables show the adjusted cost, unrealized losses and fair value of the Company's money market funds and investments held as of September 30, 2017 and December 31, 2016:
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these geographic areas is as follows:
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STOCK BASED COMPENSATION |
9 Months Ended |
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Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK BASED COMPENSATION | STOCK BASED COMPENSATION On February 27, 2017, the Company issued 74,711 shares of common stock to one of its directors in settlement of previously vested restricted stock units ("RSUs"). During the nine-month period, the Company issued 29,999 shares of common stock to an employee in settlement of previously vested RSUs and the Company issued 5,500 shares of common stock to employees in exercise of previously vested stock options. The compensation cost for all of these issuances was already recognized in prior periods as the awards vested. On September 20, 2017, the Company issued a total of 96,081 RSUs to the directors of the Company. Half of the RSUs vested immediately and the remaining half will vest on June 15, 2018. The Company estimates the fair value of the RSUs at their intrinsic value at the time of grant, which was $1.85 per share for a total of $177,750. |
BASIC AND DILUTED EARNINGS PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BASIC AND DILUTED EARNINGS PER SHARE | BASIC AND DILUTED EARNINGS PER SHARE The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation:
Options to purchase 1,569,730 shares of common stock at a weighted average price of $3.17 per share were outstanding during the three and nine months ended September 30, 2017, but were not included in the computation of diluted EPS because the options' exercise price was greater than the average market price per share of common stock. These options, which expire between March 2018 and October 2025, were still outstanding at September 30, 2017.
Options to purchase 1,343,500 and 2,343,579 shares of common stock at a weighted average price of $2.17 and $2.83 per share were outstanding during the three and nine months ended September 30, 2016, respectively, but were not included in the computation of diluted EPS because the Company reported a net loss during the periods and the impact of these shares would be antidilutive. These options, which expire between February 2017 and October 2025, were still outstanding at September 30, 2016. |
SUBSEQUENT EVENTS |
9 Months Ended |
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Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company Management reviewed all material events through November 3, 2017, the date this report was available to be issued, and the following subsequent events occurred: During the period beginning October 1, 2017 and ended November 3, 2017, the Company repurchased 51,670 shares of common stock for a total repurchase price of $92,758 pursuant to its previously authorized repurchase program. All repurchases were made at market rates. On October 12, 2017, the Compensation Committee of the Board of Directors approved a long term inventive plan for the Company's Chief Financial Officer. For further details, refer to the Restricted Stock Unit Award Agreement filed as exhibit 10.1 to the Company's current report on Form 8-K filed on October 17, 2017. |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
9 Months Ended |
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Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation In March 2016, the FASB issued ASU No. 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. Several aspects of the accounting for share-based payment awards are simplified under ASU No. 2016-09, including accounting for and classification of various taxes, classification of awards as equity or liabilities, classification of various amounts on the statement of cash flows, and accounting for forfeitures. This standard became effective for the Company on January 1, 2017. As part of this standard, companies can choose whether to recognize forfeitures as they occur or continue to estimate forfeitures with periodic true-ups. The Company has elected to recognize forfeitures as they occur. This election was made on a modified NOTE 2 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) retrospective basis with the cumulative effect recognized in beginning retained earnings of the current period; therefore, amounts in prior periods have not been restated. The total adjustment was $171,315 as a reduction of APIC and increase in retained earnings. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
Reclassification | Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on financial position, net income, or stockholders' equity. |
INVENTORY (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 30, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories consisted of the following at each balance sheet date:
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FINANCIAL INSTRUMENTS AND INVESTMENTS (Tables) |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale Securities | The following tables show the adjusted cost, unrealized losses and fair value of the Company's money market funds and investments held as of September 30, 2017 and December 31, 2016:
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SEGMENT INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Segment information for these geographic areas is as follows:
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BASIC AND DILUTED EARNINGS PER SHARE (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted |
The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation:
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ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) |
Oct. 09, 2008 |
Dec. 31, 2016 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Restricted common stock issued (shares) | 35,000,000 | |
Accounting Standards Update 2016-09 | Additional Paid-in Capital | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase (decrease) due to effect of new accounting principle | $ (171,315) | |
Accounting Standards Update 2016-09 | Retained Earnings | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Increase (decrease) due to effect of new accounting principle | $ 171,315 |
INVENTORY (Details) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 69,149 | $ 940,527 |
Finished goods | 7,120,645 | 7,112,098 |
Work in process | 0 | 0 |
Subtotal | 7,189,794 | 8,052,625 |
Reserve for Obsolescence | (254,973) | (213,122) |
Total | $ 6,934,821 | $ 7,839,503 |
STOCKHOLDERS' EQUITY (Details) - USD ($) |
May 25, 2017 |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|---|
Stockholders' Equity Note [Abstract] | |||
Treasury stock (in shares) | 5,220,570 | 2,876,317 | |
Treasury stock, at cost | $ 6,703,521 | $ 3,582,805 | |
Stock repurchased during period (shares) | 1,300,000 | ||
Value of stock repurchased during period | $ 1,703,000 |
FINANCIAL INSTRUMENTS AND INVESTMENTS (Details) - USD ($) |
Sep. 30, 2017 |
Dec. 31, 2016 |
---|---|---|
Adjusted Cost | $ 12,062,188 | $ 11,953,585 |
Gross Unrealized Losses | (62,645) | (179,208) |
Fair Value | 11,999,543 | 11,774,377 |
Cash and Cash Equivalents | 336,372 | 1,053,844 |
Short Term Investments | 3,864,323 | 5,215,536 |
Long Term Investments | 7,798,848 | 5,504,997 |
Level 1 | ||
Adjusted Cost | 1,962,608 | 2,527,380 |
Gross Unrealized Losses | (35,246) | (90,495) |
Fair Value | 1,927,362 | 2,436,885 |
Cash and Cash Equivalents | 336,372 | 1,053,844 |
Long Term Investments | 1,590,990 | 1,383,041 |
Level 2 | ||
Adjusted Cost | 10,099,580 | 9,426,205 |
Gross Unrealized Losses | (27,399) | (88,713) |
Fair Value | 10,072,181 | 9,337,492 |
Short Term Investments | 3,864,323 | 5,215,536 |
Long Term Investments | 6,207,858 | 4,121,956 |
Money Market Funds | Level 1 | ||
Adjusted Cost | 336,372 | 1,053,844 |
Fair Value | 336,372 | 1,053,844 |
Cash and Cash Equivalents | 336,372 | 1,053,844 |
Mutual Funds | Level 1 | ||
Adjusted Cost | 1,626,236 | 1,473,536 |
Gross Unrealized Losses | (35,246) | (90,495) |
Fair Value | 1,590,990 | 1,383,041 |
Long Term Investments | 1,590,990 | 1,383,041 |
Certificates of Deposit | Level 2 | ||
Adjusted Cost | 3,010,000 | 2,250,000 |
Fair Value | 3,010,000 | 2,250,000 |
Short Term Investments | 3,010,000 | 2,250,000 |
Corporate Bonds | Level 2 | ||
Adjusted Cost | 2,384,269 | 2,246,956 |
Gross Unrealized Losses | (18,896) | (29,419) |
Fair Value | 2,365,373 | 2,217,537 |
Short Term Investments | 454,252 | 400,053 |
Long Term Investments | 1,911,121 | 1,817,484 |
Municipal Bonds | Level 2 | ||
Adjusted Cost | 4,705,311 | 4,929,249 |
Gross Unrealized Losses | (8,503) | (59,294) |
Fair Value | 4,696,808 | 4,869,955 |
Short Term Investments | 400,071 | 2,565,483 |
Long Term Investments | $ 4,296,737 | $ 2,304,472 |
SEGMENT INFORMATION (Details) - USD ($) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Sep. 30, 2017 |
Sep. 30, 2016 |
Sep. 30, 2017 |
Sep. 30, 2016 |
Dec. 31, 2016 |
|
Segment Reporting Information [Line Items] | |||||
Sales | $ 10,050,192 | $ 4,990,813 | $ 27,339,677 | $ 13,508,509 | |
Net Income (Loss) | 1,217,918 | 74,452 | 3,130,676 | (1,295,460) | |
Long-lived assets | 16,519,233 | 16,519,233 | $ 14,512,443 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,982,739 | 1,273,863 | 5,024,957 | 3,461,708 | |
Net Income (Loss) | 193,636 | (114,114) | (141,874) | (572,136) | |
Long-lived assets | 1,547,689 | 1,547,689 | 1,472,207 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 8,067,453 | 3,716,950 | 22,314,720 | 10,046,801 | |
Net Income (Loss) | 1,024,282 | $ 188,566 | 3,272,550 | $ (723,324) | |
Long-lived assets | $ 14,971,544 | $ 14,971,544 | $ 13,040,236 |
STOCK BASED COMPENSATION (Details) - USD ($) |
9 Months Ended | ||
---|---|---|---|
Sep. 20, 2017 |
Feb. 27, 2017 |
Sep. 30, 2017 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issued (shares) | 74,711 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issued (shares) | 29,999 | ||
Fair value of options granted (USD per share) | $ 1.85 | ||
Intrinsic value | $ 177,750 | ||
RSUs | Director | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Restricted stock issued (in shares) | 96,081 | ||
Stock options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock issued (shares) | 5,500 |
SUBSEQUENT EVENTS (Details) - USD ($) |
1 Months Ended | |
---|---|---|
May 25, 2017 |
Nov. 03, 2017 |
|
Subsequent Event [Line Items] | ||
Stock repurchased during period (shares) | 1,300,000 | |
Value of stock repurchased during period | $ 1,703,000 | |
Subsequent Event | ||
Subsequent Event [Line Items] | ||
Stock repurchased during period (shares) | 51,670 | |
Value of stock repurchased during period | $ 92,758 |
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