x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☑ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nevada | 20-0019425 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
Common Stock, $0.001 par value | NASDAQ |
(Title of each class) | (Name of each exchange on which registered) |
Large accelerated Filer ☐ | Accelerated Filer ☐ |
Non-accelerated Filer ☐ (Do not check if a smaller reporting company) | Smaller Reporting Company x |
Emerging Growth Company ☐ |
Explanatory Note | |
Cautionary Note Regarding Forward-Looking Statements | |
PART I | |
Item 1. Business | |
Item 1A. Risk Factors | |
Item 1B. Unresolved Staff Comments | |
Item 2. Properties | |
Item 3. Legal Proceedings | |
Item 4. Mine Safety Disclosures | |
PART II | |
Item 5. Market for Registrant's Common Equity, Related Shareholder Matters and Issuer Purchases of Equity Securities | |
Item 6. Selected Financial Data | |
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. Quantitative and Qualitative Disclosures About Market Risk | |
Item 8. Financial Statements and Supplementary Data | |
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. Controls and Procedures | |
Item 9B. Other Information | |
PART III | |
Item 10. Directors, Executive Officers, and Corporate Governance | |
Item 11. Executive Compensation | |
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters | |
Item 13. Certain Relationships and Related Transactions and Director Independence | |
Item 14. Principal Accounting Fees and Services | |
PART IV | |
Item 15. Exhibits, Financial Statement Schedules | |
Signatures |
Customer | Year Ended December 31, 2017 | Nine-Month Transition Period | ||||
Chesapeake Energy | 4 | % | 11 | % |
• | inline pilot technologies to increase efficiency and reliability of pilot-light performance in a variety of climates; |
• | software technology within a modular burner-management system; and |
• | certain valve-related technologies. |
• | B149.3-10, which has evolved in recent years and is effective for Alberta, governs the safety precautions that must be met concerning the ignition of the pilot and the main burner in Canada. It requires a programmable control to be used, if the controller complies with certain certification requirements promulgated by the CSA. |
• | Regulation 7, which was passed during fiscal year 2014 by the Colorado Department of Public Health and Environment, required that combustion devices installed after May 1, 2014, be equipped with an auto-igniter and all existing combustion devices to be equipped with an auto-igniter by May 1, 2016. |
• | R307-503-4(1) (b) & (c), which was passed during fiscal year 2014 by the Utah Department of Air Quality, mandated that all new open and enclosed flare have an auto-igniter. The rule required the two largest oil- and gas-producing counties in the state to retrofit all existing enclosed flare with auto-igniters by December 1, 2015, and all other counties to comply by April 1, 2017. |
• | Order 25417, which was passed by North Dakota's Industrial Council, is rule that became effective April 1, 2015, requires producers to condition crude oil before transportation and prove oil temperature is above 110 degrees Fahrenheit, to burn off toxic gases from the oil. |
Name | Age | Positions Held | ||
Brenton W. Hatch | 67 | Chief Executive Officer (2008 to present) | ||
Ryan Oviatt | 44 | Chief Financial Officer (2015 to present) |
• | the level of oil and gas production; |
• | the demand for oil and gas related products; |
• | domestic and worldwide economic conditions; |
• | political instability in the Middle East and other oil producing regions; |
• | the actions of the Organization of Petroleum Exporting Countries; |
• | the price of foreign imports of oil and gas, including liquefied natural gas; |
• | natural disasters or weather conditions, such as hurricanes; |
• | technological advances affecting energy consumption; |
• | the level of oil and gas inventories; |
• | the cost of producing oil and gas; |
• | the price and availability of alternative fuels; |
• | merger and divestiture activity among oil and gas producers; and |
• | governmental regulations. |
• | foreign currency exchange risks resulting from changes in foreign currency exchange rates and the execution of controls in this area; |
• | limitations on our ability to reinvest earnings from operations in one country to fund our operations in other countries. |
• | the business culture of the acquired business may not match well with our culture; |
• | we may fail to retain, motivate and integrate key management and other employees of the acquired business; |
• | we may experience problems in retaining customers and integrating customer bases; |
• | we may experience complexities associated with managing the combined businesses; and |
• | consolidating multiple physical locations. |
• | multiple, conflicting, and changing laws and regulations, export and import restrictions, and employment laws; |
• | regulatory requirements, and other government approvals, permits, and licenses; |
• | potentially adverse tax consequences; |
• | political and economic instability, including wars and acts of terrorism, political unrest, boycotts, curtailments of trade and sanctions, and other business restrictions; |
• | expropriation, confiscation or nationalization of assets; |
• | renegotiation or nullification of existing contracts; |
• | difficulties and costs in recruiting and retaining individuals skilled in international business operations; |
• | foreign exchange restrictions; |
• | foreign currency fluctuations; |
• | foreign taxation; |
• | the inability to repatriate earnings or capital; |
• | changing foreign and domestic monetary policies; |
• | cultural and communication challenges; |
• | industry-process changes in heating and flow of oil; |
• | regional economic downturns; |
• | foreign governmental regulations favoring or requiring the awarding of contracts to local contractors or requiring foreign contractors to employ citizens of, or purchase supplies from, a particular jurisdiction that may harm our ability to compete; and |
• | compliance with anti-corruption and anti-bribery laws, including the U.S. Foreign Corrupt Practices Act. |
• | design and commercially produce products that meet the needs of our customers; |
• | attract and retain talented research-and-development management and personnel; |
• | successfully market new products; and |
• | protect our proprietary designs from our competitors. |
• | our ability to market our products and services to new customers; |
• | our ability to provide large-scale support and training materials for a growing customer base; |
• | our ability to hire, train and assimilate new employees; |
• | the adequacy of our financial resources; and |
• | our ability to correctly identify and exploit new geographical markets and to successfully compete in those markets. |
• | the underlying price of the commodities in the oil and gas industry; |
• | announcements of capital budget changes by a major customer; |
• | the introduction of new products by our competitors; |
• | announcements of technology advances by us or our competitors; |
• | current events affecting the political and economic environment in the United States or Canada; |
• | conditions or industry trends, including demand for our products, services and technological advances; |
• | changes to financial estimates by us or by any securities analysts who might cover our stock; |
• | additions or departures of our key personnel; |
• | government regulation of our industry; |
• | seasonal, economic, or financial conditions; |
• | our quarterly operating and financial results; or |
• | litigation or public concern about the safety of our products. |
• | the composition of our Board, which has the authority to direct our business, appoint and remove our officers, and declare dividends; |
• | approving or rejecting a merger, consolidation or other business combination; |
• | raising future capital; and |
• | amending our articles of incorporation and bylaws. |
Location | Lease Expiration | Use | Square Footage |
Lindon, Utah | Owned | Corporate HQ & Warehouse Assembly | 50,500 |
Spruce Grove, Alberta | Owned | Office & Warehouse Assembly | 16,000 |
Greeley, Colorado | Owned | Office & Warehouse Storage | 2,750 |
Houston, Texas | August 31, 2018 | Office & Warehouse Assembly | 3,250 |
Shelocta, Pennsylvania | January 31, 2018 | Office & Warehouse Storage | 2,100 |
Quarter Ended | High | Low | ||||||
June 30, 2016 | $ | 1.11 | $ | 0.86 | ||||
September 30, 2016 | $ | 1.32 | $ | 1.11 | ||||
December 31, 2016 | $ | 1.43 | $ | 1.08 | ||||
March 31, 2017 | $ | 1.62 | $ | 1.18 | ||||
June 30, 2017 | $ | 1.48 | $ | 1.16 | ||||
September 30, 2017 | $ | 1.99 | $ | 1.20 | ||||
December 31, 2017 | $ | 2.09 | $ | 1.75 |
Plan category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column (a)) | |||||||
(a) | (b) | (c) | ||||||||
Equity compensation plans approved by security holders | 2,152,402 | $ | 1.49 | 3,014,249 | ||||||
Equity compensation plans not approved by security holders | — | — | — | |||||||
Total | 2,152,402 | $ | 1.49 | 3,014,249 |
Period | (a) Total Number of Shares Purchased | (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 | ||||||||||
October | 51,670 | $ | 1.80 | 51,670 | $ | 1,497,293 | ||||||||
November | 960 | $ | 1.80 | 960 | $ | 1,495,565 | ||||||||
December | 51,542 | $ | 1.79 | 51,542 | $ | 1,403,223 | ||||||||
Total | 104,172 | 104,172 |
For the Year Ended December 31, 2017 | % of Revenue | (Unaudited) For the Year Ended December 31, 2016 | % of Revenue | $ Change | % Change | ||||||||||||||
Total Revenues | 38,286,376 | 100 | % | 20,530,840 | 100 | % | $ | 17,755,536 | 86 | % | |||||||||
Total Cost of Goods Sold | 18,022,469 | 47 | % | 10,130,441 | 49 | % | $ | 7,892,028 | 78 | % | |||||||||
Gross Profit | 20,263,907 | 53 | % | 10,400,399 | 51 | % | $ | 9,863,508 | 95 | % |
For the Year Ended December 31, 2017 | % of Revenue | (Unaudited) For the Year Ended December 31, 2016 | % of Revenue | $ Change | % Change | ||||||||||||||
General and administrative expenses | 11,676,693 | 30 | % | 10,071,009 | 49 | % | $ | 1,605,684 | 16 | % | |||||||||
Research and development | 1,221,211 | 3 | % | 708,385 | 3 | % | $ | 512,826 | 72 | % | |||||||||
Depreciation and amortization expense (inclusive of amounts in COGS) | 890,018 | 2 | % | 983,936 | 5 | % | $ | (93,918 | ) | (10 | )% |
December 31, 2017 | December 31, 2016 | $ Change | % Change | ||||||||||
Cash and cash equivalents | 11,445,799 | 7,679,621 | $ | 3,766,178 | 49 | % | |||||||
Short term investments | 300,817 | 2,965,536 | $ | (2,664,719 | ) | (90 | )% | ||||||
Short term investments - other | 4,009,810 | 2,993,825 | $ | 1,015,985 | 34 | % | |||||||
Long Term Investments | 8,517,182 | 5,504,997 | $ | 3,012,185 | 55 | % | |||||||
Long term investments - other | — | 892,590 | $ | (892,590 | ) | (100 | )% | ||||||
Total | 24,273,608 | 20,036,569 | 4,237,039 | 21 | % |
For the Year Ended December 31, 2017 | (Unaudited) For the Year Ended December 31, 2016 | $ Change | % Change | ||||||||||||
Net Cash Provided by Operating Activities | $ | 7,712,811 | $ | 3,937,035 | $ | 3,775,776 | 96 | % | |||||||
Net Cash Used in Investing Activities | $ | (805,508 | ) | $ | (10,645,025 | ) | $ | 9,839,517 | 92 | % | |||||
Net Cash Used in Financing Activities | $ | (3,239,007 | ) | $ | (3,597,904 | ) | $ | 358,897 | 10 | % | |||||
Effect of exchange rate on cash | $ | 97,882 | $ | 340,429 | $ | (242,547 | ) | (71 | )% | ||||||
Net Increase (Decrease) in Cash | $ | 3,766,178 | $ | (9,965,465 | ) | $ | 13,731,643 | 138 | % |
PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
Consolidated Balance Sheets | ||||||||
As of | ||||||||
ASSETS | December 31, 2017 | December 31, 2016 | ||||||
CURRENT ASSETS | ||||||||
Cash and cash equivalents | $ | 11,445,799 | $ | 7,679,621 | ||||
Accounts receivable, net | 8,069,255 | 5,633,802 | ||||||
Inventories, net | 6,446,083 | 7,839,503 | ||||||
Income tax receivable | — | 180,981 | ||||||
Short term investments | 300,817 | 2,965,536 | ||||||
Investments - other | 4,009,810 | 2,993,825 | ||||||
Prepaid expenses & other current assets | 437,304 | 410,558 | ||||||
Total Current Assets | 30,709,068 | 27,703,826 | ||||||
LONG-TERM ASSETS | ||||||||
Long term investments - other | — | 892,590 | ||||||
Long term investments | 8,517,182 | 5,504,997 | ||||||
Property and equipment, net | 7,197,499 | 7,458,723 | ||||||
Deferred tax asset, net | 72,817 | 60,940 | ||||||
Goodwill | 997,701 | 997,701 | ||||||
Intangible assets, net | 494,792 | 490,082 | ||||||
Total Long-Term Assets | 17,279,991 | 15,405,033 | ||||||
TOTAL ASSETS | $ | 47,989,059 | $ | 43,108,859 | ||||
LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
CURRENT LIABILITIES | ||||||||
Accounts payable | 1,780,977 | 1,220,478 | ||||||
Income taxes payable | 919,728 | 61,543 | ||||||
Accrued vacation | 196,646 | 154,307 | ||||||
Accrued liabilities | 1,044,284 | 284,214 | ||||||
Total Current Liabilities | 3,941,635 | 1,720,542 | ||||||
TOTAL LIABILITIES | 3,941,635 | 1,720,542 | ||||||
STOCKHOLDERS' EQUITY | ||||||||
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding | — | — | ||||||
Common shares: $0.001 par value, 100,000,000 shares authorized: 53,931,167 issued and 48,606,425 outstanding at December 31, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016 | 53,931 | 53,582 | ||||||
Treasury stock, at cost | (6,890,349 | ) | (3,582,805 | ) | ||||
Additional paid-in capital | 27,535,469 | 26,628,983 | ||||||
Accumulated other comprehensive loss | (2,200,462 | ) | (2,810,743 | ) | ||||
Retained earnings | 25,548,835 | 21,099,300 | ||||||
Total Stockholders' Equity | 44,047,424 | 41,388,317 | ||||||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ | 47,989,059 | $ | 43,108,859 |
PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
Consolidated Statements of Operations and Other Comprehensive Income (Loss) | ||||||||
For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | |||||||
REVENUES | ||||||||
Sales of goods, net | $ | 35,502,510 | $ | 14,336,618 | ||||
Sales of services, net | 2,783,866 | 1,650,568 | ||||||
Total Revenues | 38,286,376 | 15,987,186 | ||||||
COST OF SALES | ||||||||
Cost of goods sold-product | 16,116,161 | 6,732,822 | ||||||
Cost of goods sold-services | 1,906,308 | 1,154,326 | ||||||
Total Cost of Goods Sold | 18,022,469 | 7,887,148 | ||||||
GROSS PROFIT | 20,263,907 | 8,100,038 | ||||||
OPERATING EXPENSES | ||||||||
General and administrative expenses | 11,676,693 | 7,198,081 | ||||||
Research and development | 1,221,211 | 757,880 | ||||||
Depreciation and amortization expense | 526,583 | 482,311 | ||||||
Total Operating Expenses | 13,424,487 | 8,438,272 | ||||||
INCOME (LOSS) FROM OPERATIONS | 6,839,420 | (338,234 | ) | |||||
OTHER INCOME (EXPENSE) | ||||||||
Gain (loss) on sale of fixed assets | 62,492 | (2,680 | ) | |||||
Other income | 40,992 | 102,206 | ||||||
Interest income | 180,325 | 90,028 | ||||||
Total Other Income | 283,809 | 189,554 | ||||||
NET INCOME (LOSS) BEFORE INCOME TAXES | 7,123,229 | (148,680 | ) | |||||
INCOME TAX EXPENSE (BENEFIT) | 2,673,694 | (226,733 | ) | |||||
NET INCOME | $ | 4,449,535 | $ | 78,053 | ||||
OTHER COMPREHENSIVE INCOME (LOSS) | ||||||||
Foreign Currency Translation Gain (Loss) | $ | 587,951 | $ | (415,698 | ) | |||
Unrealized Gains (Losses) on Investments | 22,330 | (112,363 | ) | |||||
Total Other Comprehensive Income (Loss) | 610,281 | (528,061 | ) | |||||
TOTAL COMPREHENSIVE INCOME (LOSS) | $ | 5,059,816 | $ | (450,008 | ) | |||
BASIC EARNINGS (LOSS) PER SHARE | $ | 0.09 | $ | — | ||||
FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ | 0.09 | $ | — | ||||
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | $ | 49,365,592 | $ | 52,857,299 | ||||
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | $ | 49,858,435 | $ | 53,483,110 |
PROFIRE ENERGY, INC. AND SUBSIDIARY | |||||||||||||||||||||||||||
Consolidated Statements of Stockholders' Equity | |||||||||||||||||||||||||||
Common Stock | Additional Paid-In Capital | Other Comprehensive Income | Treasury Stock | Retained Earnings | Total Stockholders' Equity | ||||||||||||||||||||||
Shares | Amount | ||||||||||||||||||||||||||
Balance, March 31, 2016 | 53,256,296 | $ | 53,256 | $ | 26,164,622 | $ | (2,282,682 | ) | $ | — | $ | 20,849,932 | $ | 44,785,128 | |||||||||||||
Fair value of options vested | — | — | 242,801 | — | — | — | 242,801 | ||||||||||||||||||||
Stock issued in exercise of stock options | 86,808 | 87 | 112,913 | — | — | — | 113,000 | ||||||||||||||||||||
Stock issued in settlement of RSUs | 239,146 | 239 | 279,962 | — | — | — | 280,201 | ||||||||||||||||||||
Treasury stock repurchased | (2,876,317 | ) | — | — | — | (3,582,805 | ) | — | (3,582,805 | ) | |||||||||||||||||
Foreign currency translation | — | — | — | (415,698 | ) | — | — | (415,698 | ) | ||||||||||||||||||
Unrealized losses on investments | — | — | — | (112,363 | ) | — | — | (112,363 | ) | ||||||||||||||||||
Net Income For the Nine-Month Transition Period Ended December 31, 2016 | — | — | — | — | — | 78,053 | 78,053 | ||||||||||||||||||||
Implementation of ASU 2016-09 | — | — | (171,315 | ) | — | — | 171,315 | — | |||||||||||||||||||
Balance, December 31, 2016 | 50,705,933 | $ | 53,582 | $ | 26,628,983 | $ | (2,810,743 | ) | $ | (3,582,805 | ) | $ | 21,099,300 | $ | 41,388,317 | ||||||||||||
Stock based compensation | — | — | 838,298 | — | — | — | 838,298 | ||||||||||||||||||||
Stock issued in exercise of stock options | 86,333 | 86 | 111,590 | — | — | — | 111,676 | ||||||||||||||||||||
Stock issued in settlement of RSUs | 262,584 | 263 | (263 | ) | — | — | — | — | |||||||||||||||||||
Tax withholdings paid related to stock based compensation | — | — | (43,139 | ) | — | — | — | (43,139 | ) | ||||||||||||||||||
Treasury stock repurchased | (2,448,425 | ) | — | — | — | (3,307,544 | ) | — | (3,307,544 | ) | |||||||||||||||||
Foreign currency translation | — | — | — | 587,951 | — | — | 587,951 | ||||||||||||||||||||
Unrealized gains on investments | — | — | — | 22,330 | — | — | 22,330 | ||||||||||||||||||||
Net Income For the Year Ended December 31, 2017 | — | — | — | — | — | 4,449,535 | 4,449,535 | ||||||||||||||||||||
Balance, December 31, 2017 | 48,606,425 | $ | 53,931 | $ | 27,535,469 | $ | (2,200,462 | ) | $ | (6,890,349 | ) | $ | 25,548,835 | $ | 44,047,424 |
PROFIRE ENERGY, INC. AND SUBSIDIARIES | ||||||||
Consolidated Statements of Cash Flows | ||||||||
For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | |||||||
OPERATING ACTIVITIES | ||||||||
Net Income | $ | 4,449,535 | $ | 78,053 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation and amortization expense | 889,724 | 756,927 | ||||||
(Gain) Loss on sale of fixed assets | (62,574 | ) | 3,480 | |||||
Bad debt expense | 262,766 | 272,807 | ||||||
Stock options issued for services | 841,166 | 616,802 | ||||||
Changes in operating assets and liabilities: | ||||||||
Changes in accounts receivable | (2,591,392 | ) | (2,063,449 | ) | ||||
Changes in income taxes receivable/payable | 1,040,713 | (190,746 | ) | |||||
Changes in inventories | 1,346,919 | 3,304,972 | ||||||
Changes in prepaid expenses | (49,923 | ) | (95,156 | ) | ||||
Changes in deferred tax asset/liability | (11,876 | ) | (241,241 | ) | ||||
Changes in accounts payable and accrued liabilities | 1,597,753 | (58,736 | ) | |||||
Net Cash Provided by Operating Activities | 7,712,811 | 2,383,713 | ||||||
INVESTING ACTIVITIES | ||||||||
Proceeds from sale of equipment | 140,462 | 16,896 | ||||||
Purchase of investments | (334,910 | ) | (10,685,553 | ) | ||||
Purchase of fixed assets | (611,060 | ) | (18,485 | ) | ||||
Net Cash Used in Investing Activities | (805,508 | ) | (10,687,142 | ) | ||||
FINANCING ACTIVITIES | ||||||||
Value of equity awards surrendered by employees for tax liability | (43,139 | ) | (30,000 | ) | ||||
Cash received in exercise of stock options | 111,676 | 15,000 | ||||||
Purchase of Treasury stock | (3,307,544 | ) | (3,582,805 | ) | ||||
Net Cash Used in Financing Activities | (3,239,007 | ) | (3,597,805 | ) | ||||
Effect of exchange rate changes on cash | 97,882 | (75,325 | ) | |||||
NET INCREASE (DECREASE) IN CASH | 3,766,178 | (11,976,559 | ) | |||||
CASH AT BEGINNING OF PERIOD | 7,679,621 | 19,656,180 | ||||||
CASH AT END OF PERIOD | $ | 11,445,799 | $ | 7,679,621 | ||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||
CASH PAID FOR: | ||||||||
Interest | $ | — | $ | — | ||||
Income taxes | $ | 1,710,135 | $ | 255,769 |
As of | ||||||||||
December 31, 2017 | December 31, 2016 | Est. Useful Life | ||||||||
Furniture and fixtures | $ | 458,643 | $ | 450,197 | 7 Years | |||||
Computers | 331,422 | 297,038 | 3 Years | |||||||
Software | 231,526 | 214,378 | 2 Years | |||||||
Machinery and equipment | 651,143 | 557,666 | 7 Years | |||||||
Vehicles | 2,719,026 | 2,671,714 | 5 Years | |||||||
Land and buildings | 6,933,903 | 6,699,540 | 30 Years | |||||||
Total property and equipment | 11,325,663 | 10,890,533 | ||||||||
Accumulated depreciation | (4,128,164 | ) | (3,431,810 | ) | ||||||
Net property and equipment | $ | 7,197,499 | $ | 7,458,723 | ||||||
For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | |||||||
Cost of goods sold - product | $ | 250,369 | $ | 188,579 | ||||
Cost of goods sold - service | 113,066 | 85,892 | ||||||
Operating expenses | 497,940 | 461,357 | ||||||
Amortization expense | 28,643 | 20,954 | ||||||
Total depreciation & amortization expense | $ | 890,018 | $ | 756,782 | ||||
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. |
December 31, 2017 | ||||||||||||||||||||||||
Adjusted Cost | Pre-Tax Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short Term | Long Term | |||||||||||||||||||
Level 1 | ||||||||||||||||||||||||
Money Market Funds | $ | 888,942 | $ | — | $ | 888,942 | $ | 888,942 | $ | — | $ | — | ||||||||||||
Mutual Funds | 1,626,236 | (29,679 | ) | 1,596,557 | — | — | 1,596,557 | |||||||||||||||||
Subtotal | 2,515,178 | (29,679 | ) | 2,485,499 | 888,942 | — | 1,596,557 | |||||||||||||||||
Level 2 | ||||||||||||||||||||||||
Certificates of Deposit | $ | 4,009,810 | $ | — | $ | 4,009,810 | $ | — | $ | 4,009,810 | $ | — | ||||||||||||
Corporate Bonds | 2,228,855 | (30,081 | ) | 2,198,774 | — | 300,817 | 1,897,957 | |||||||||||||||||
Municipal Bonds | 5,084,573 | (61,905 | ) | 5,022,668 | — | — | 5,022,668 | |||||||||||||||||
Subtotal | 11,323,238 | (91,986 | ) | 11,231,252 | — | 4,310,627 | 6,920,625 | |||||||||||||||||
Total | $ | 13,838,416 | $ | (121,665 | ) | $ | 13,716,751 | $ | 888,942 | $ | 4,310,627 | $ | 8,517,182 |
December 31, 2016 | ||||||||||||||||||||||||
Adjusted Cost | Pre-Tax Unrealized Losses | Fair Value | Cash and Cash Equivalents | Short Term | Long Term | |||||||||||||||||||
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 | $ | 3,886,415 | $ | — | $ | 3,886,415 | $ | — | $ | 2,993,825 | $ | 892,590 | ||||||||||||
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 | 11,062,620 | (88,713 | ) | 10,973,907 | — | 5,959,361 | 5,014,546 | |||||||||||||||||
Total | $ | 13,590,000 | $ | (179,208 | ) | $ | 13,410,792 | $ | 1,053,844 | $ | 5,959,361 | $ | 6,397,587 |
For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | |||
Unrealized Holding Gains (Losses) | 57,543 | (179,208) |
Maturity | Fair Value | |
Less Than One Year | 302,189 | |
1-2 years | 1,685,858 | |
2-5 years | 4,983,823 | |
5-10 years | 250,944 | |
Over 10 years | — | |
7,222,814 |
Revenues | For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | ||||||
Canada | $ | 7,490,252 | $ | 3,962,774 | ||||
United States | 30,796,124 | 12,024,412 | ||||||
Total Consolidated | $ | 38,286,376 | $ | 15,987,186 |
Profit (Loss) | For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | ||||||
Canada | $ | (189,865 | ) | $ | (356,623 | ) | ||
United States | 4,639,399 | 434,676 | ||||||
Total Consolidated | $ | 4,449,535 | $ | 78,053 |
Long-lived assets | As of | |||||||
December 31, 2017 | December 31, 2016 | |||||||
Canada | $ | 1,508,943 | $ | 982,124 | ||||
United States | 15,771,048 | 14,422,909 | ||||||
Total Consolidated | $ | 17,279,991 | $ | 15,405,033 |
Total Outstanding and Exercisable Awards December 31, 2017 | ||||||||||||||||
Awards Outstanding | Awards Exercisable | |||||||||||||||
Grant Price Low | Grant Price High | Quantity | Remaining Contractual Life (Years) | Exercise Price | Quantity | Remaining Contractual Life (Years) | Exercise Price | |||||||||
$ | — | 1.09 | 510,402 | 2.26 | $0.55 | 80,666 | 2.40 | $1.01 | ||||||||
$ | 1.10 | 1.27 | 525,000 | 1.84 | $1.17 | 262,500 | 1.84 | $1.17 | ||||||||
$ | 1.28 | 1.56 | 546,000 | 1.35 | $1.37 | 439,500 | 1.36 | $1.37 | ||||||||
$ | 1.57 | 2.8 | 305,000 | 0.18 | $1.75 | 305,000 | 0.18 | $1.75 | ||||||||
$ | 2.81 | 4.03 | 266,000 | 1.97 | $3.89 | 239,600 | 1.93 | $3.88 | ||||||||
2,152,402 | 1.60 | $1.49 | 1,327,266 | 1.35 | $1.85 |
Total Outstanding and Exercisable Awards December 31, 2016 | |||||||||||||
Strike Price | Outstanding Options (1 share/option) | Average Remaining Life (Years) | Exercisable Shares | Weighted Average Exercise Price | |||||||||
$ | 1.01 | 303,500 | 3.40 | — | $ | 1.01 | |||||||
$ | 1.17 | 525,000 | 2.84 | — | $ | 1.17 | |||||||
$ | 1.37 | 644,000 | 2.34 | 419,000 | $ | 1.37 | |||||||
$ | 1.75 | 320,000 | 1.18 | 255,000 | $ | 1.75 | |||||||
$ | 3.85 | 200,000 | 2.85 | 200,000 | $ | 3.85 | |||||||
$ | 3.95 | 100,000 | 3.10 | 100,000 | $ | 3.95 | |||||||
$ | 4.03 | 72,500 | 3.30 | 29,000 | $ | 4.03 | |||||||
2,165,000 | 1,003,000 |
Number of Awards | Weighted Average Exercise Price | Weighted Average Fair Value | Weighted Average Remaining Contractual Life (Years) | Aggregate Intrinsic Value | |||||||||||||
Outstanding, beginning of period | 2,023,500 | $ | 1.66 | $ | 1.23 | $ | 228,180 | ||||||||||
Exercised/Released | (86,333 | ) | $ | 1.29 | $ | 1.41 | $ | 42,532 | |||||||||
Cancelled/Forfeited | (16,500 | ) | $ | 1.62 | $ | 1.38 | $ | 2,348 | |||||||||
Outstanding, end of period | 1,920,667 | $ | 1.67 | $ | 1.22 | 1.53 | $ | 999,487 | |||||||||
Vested and exercisable, end of the period | 1,327,266 | $ | 1.85 | $ | 1.39 | 1.35 | $ | 563,856 | |||||||||
Vested and expected to vest, end of the period | 1,920,667 | $ | 1.67 | $ | 1.22 | 1.53 | $ | 999,487 |
Number of Awards | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Amortization Period (Years) | |||||||||
Unvested Outstanding, beginning of period | 1,145,500 | $ | 1.30 | $ | 0.87 | |||||||
Cancelled/Forfeited | (5,267) | $ | 1.42 | $ | 1.06 | |||||||
Vested, outstanding shares | (546,832) | $ | 1.32 | $ | 0.90 | |||||||
Unvested Outstanding, end of period | 593,401 | $ | 1.28 | $ | 0.84 | 0.97 |
Number of Awards | Weighted Average Exercise Price | Weighted Average Fair Value | Weighted Average Remaining Contractual Life (Years) | ||||||||||
Outstanding, beginning of period | 73,002 | $ | — | $ | 4.02 | ||||||||
Exercised/Released | (24,334 | ) | $ | — | $ | 4.02 | |||||||
Outstanding, end of period | 48,668 | $ | — | $ | 4.02 | 2.33 | |||||||
Vested and exercisable, end of the period | — | ||||||||||||
Vested and expected to vest, end of the period | 48,668 | $ | — | $ | 4.02 | 2.33 |
Number of Awards | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Amortization Period (Years) | |||||||||
Unvested Outstanding, beginning of period | 73,002 | $ | — | $ | 4.02 | |||||||
Vested, outstanding shares | (24,334) | $ | — | $ | 4.02 | |||||||
Unvested Outstanding, end of period | 48,668 | $ | — | $ | 4.02 | 1.33 |
Number of Awards | Weighted Average Exercise Price | Weighted Average Fair Value | Weighted Average Remaining Contractual Life (Years) | ||||||||||
Outstanding, beginning of period | 281,244 | $ | — | $ | 1.35 | ||||||||
Granted | 162,839 | $ | — | $ | 1.87 | ||||||||
Exercised/Released | (261,016 | ) | $ | — | $ | 1.36 | |||||||
Outstanding, end of period | 183,067 | $ | — | $ | 1.80 | 2.04 | |||||||
Vested and exercisable, end of the period | — | ||||||||||||
Vested and expected to vest, end of the period | 160,815 | $ | — | $ | 1.79 | 2.01 |
Number of Awards | Weighted Average Exercise Price | Weighted Average Grant Date Fair Value | Weighted Average Remaining Amortization Period (Years) | |||||||||
Unvested Outstanding, beginning of period | 206,533 | $ | — | $ | 1.44 | |||||||
Granted | 162,839 | $ | — | $ | 1.87 | |||||||
Vested, outstanding shares | (186,305) | $ | — | $ | 1.46 | |||||||
Unvested Outstanding, end of period | 183,067 | $ | — | $ | 1.80 | 1.40 |
As of | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
Raw materials | $ | 225,735 | $ | 940,527 | ||||
Finished goods | 6,417,494 | 7,112,098 | ||||||
Work in process | — | — | ||||||
Subtotal | 6,643,229 | 8,052,625 | ||||||
Reserve for Obsolescence | (197,146 | ) | (213,122 | ) | ||||
Total | $ | 6,446,083 | $ | 7,839,503 |
For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 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 | $ | 4,449,535 | 49,365,592 | $ | 0.09 | $ | 78,053 | 52,857,299 | $ | 0.00 | ||||||||||||
Effect of Dilutive Securities | ||||||||||||||||||||||
Stock options & RSUs | — | 492,843 | — | 625,811 | ||||||||||||||||||
Diluted EPS | ||||||||||||||||||||||
Net income available to common stockholders + assumed conversions | $ | 4,449,535 | 49,858,435 | $ | 0.09 | $ | 78,053 | 53,483,110 | $ | 0.00 |
As of | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
Distribution agreements | $ | 41,984 | $ | 39,264 | ||||
Less: Accumulated amortization | $ | (41,984 | ) | (39,264 | ) | |||
Distribution agreements, net | — | — | ||||||
Patents, trademarks, copyrights, and domain names | $ | 584,980 | 547,071 | |||||
Less: Accumulated amortization | $ | (90,188 | ) | (56,989 | ) | |||
Patents, trademarks, copyrights, and domain names, net | 494,792 | 490,082 | ||||||
Total definite-lived intangible assets, net | $ | 494,792 | $ | 490,082 |
For the Years Ending December 31, | Amount | ||
2018 | $ | 28,103 | |
2019 | 28,103 | ||
2020 | 28,103 | ||
2021 | 28,103 | ||
2022 | 28,103 |
As of | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
Goodwill | $ | 997,701 | $ | 997,701 |
For the Quarters Ending | ||||||||||||||||
Fiscal Year 2017 | Mar 31, 2017 | Jun 30, 2017 | Sep 30, 2017 | Dec 31, 2017 | ||||||||||||
Total revenues | $ | 7,824,495 | $ | 9,464,951 | $ | 10,050,192 | $ | 10,946,738 | ||||||||
Gross profit | 4,367,173 | 4,976,832 | 5,061,795 | 5,858,107 | ||||||||||||
Income from operations | 1,071,042 | 1,831,163 | 1,845,407 | 2,091,808 | ||||||||||||
Income tax expense | 498,936 | 638,528 | 709,169 | 827,061 | ||||||||||||
Net income | 600,071 | 1,312,647 | 1,217,918 | 1,318,899 | ||||||||||||
Basic earnings per common share | $ | 0.01 | $ | 0.03 | $ | 0.03 | $ | 0.03 | ||||||||
Diluted earnings per common share | $ | 0.01 | $ | 0.03 | $ | 0.02 | $ | 0.03 |
For the Quarters Ending | ||||||||||||
Nine-Month Transition Period | Jun 30, 2016 | Sep 30, 2016 | Dec 31, 2016 | |||||||||
Total revenues | $ | 3,974,043 | $ | 4,990,813 | $ | 7,022,330 | ||||||
Gross profit | 1,914,250 | 2,624,659 | 3,561,129 | |||||||||
Income (loss) from operations | (881,278 | ) | (127,369 | ) | 670,413 | |||||||
Income tax expense (benefit) | (245,877 | ) | (99,701 | ) | 118,845 | |||||||
Net income (loss) | (605,295 | ) | 74,452 | 608,896 | ||||||||
Basic earnings (loss) per common share | $ | (0.01 | ) | $ | 0.00 | 0.01 | ||||||
Diluted earnings (loss) per common share | $ | (0.01 | ) | $ | 0.00 | 0.01 |
For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | |||||||
Current | ||||||||
Federal | $ | 2,482,978 | $ | (31,983 | ) | |||
State | 130,683 | (1,683 | ) | |||||
Foreign | 86,872 | 21,303 | ||||||
Total Current | 2,700,533 | (12,363 | ) | |||||
Deferred | ||||||||
Federal | (55,563 | ) | (203,652 | ) | ||||
State | (2,924 | ) | (10,718 | ) | ||||
Effect of tax rate change | 31,648 | — | ||||||
Total Deferred | (26,839 | ) | (214,370 | ) | ||||
Total Provision for (Benefit from) Income Taxes | $ | 2,673,694 | $ | (226,733 | ) |
For the Year Ended December 31, 2017 | For the Nine-Month Transition Period Ended December 31, 2016 | |||||
Federal Statutory Tax Rate | 34.0 | % | 34.0 | % | ||
State Statutory Tax Rate, Net of Federal Effect | 3.3 | % | 3.3 | % | ||
Meals & Entertainment | 1.0 | % | (5.2 | )% | ||
Gain/loss on Sale of PPE | — | % | (5.9 | )% | ||
Goodwill | (2.0 | )% | 22.0 | % | ||
Tax Exempt Interest | (10.0 | )% | 20.7 | % | ||
Ending Balance True Up | — | % | 28.0 | % | ||
Tax Overpayment | — | % | 38.3 | % | ||
Other | 11.2 | % | 17.3 | % | ||
Effective Tax Rate | 37.5 | % | 152.5 | % |
As of | ||||||||
December 31, 2017 | December 31, 2016 | |||||||
Stock Compensation | $ | 238,412 | $ | 277,296 | ||||
Bad Debt | 25,523 | 46,790 | ||||||
Inventory reserve | 50,234 | 53,121 | ||||||
Unrealized loss on investments | 31,632 | 66,844 | ||||||
Deferred tax asset | $ | 345,801 | $ | 444,051 | ||||
Depreciation | $ | 271,871 | $ | 367,490 | ||||
Amortization | 1,113 | 15,621 | ||||||
Goodwill | — | — | ||||||
Deferred tax liability | $ | 272,984 | $ | 383,111 | ||||
Net Deferred Tax Asset | $ | 72,817 | $ | 60,940 |
Years ending December 31, | Operating Leases | |
2018 | 59,005 | |
2019 | 39,789 | |
2020 | 15,371 | |
2021 | 302 | |
2022 | — | |
Thereafter | — | |
Total | 114,467 |
Articles of Incorporation(1) | ||
Articles of Amendment to the Articles of Incorporation(2) | ||
Amended and Restated Bylaws(3) | ||
Stock Redemption Agreement dated November 15, 2016 between the Registrant and Harold Albert(19) | ||
Employment Agreement of Brenton W. Hatch dated June 28, 2013 (16)+ | ||
Restricted Stock Unit Award Agreement between the Registrant and Ryan Oviatt dated October 12, 2017(17)+ | ||
Employment Agreement of Ryan Oviatt dated September 4, 2015 (18)+ | ||
Form of Indemnification Agreement between the Registrant and its Directors (4) | ||
2003 Stock Incentive Plan (5) | ||
Profire Energy, Inc. 2010 Equity Incentive Plan (6) | ||
Profire Energy, Inc. 2014 Equity Incentive Plan(20) | ||
Profire Energy, Inc. 2014 Equity Incentive Plan Amendment(7) | ||
Form of Equity Grant Agreement, Nonqualified Stock Option (8) | ||
Form of Equity Grant Agreement, Restricted Stock (9) | ||
Form of Equity Grant Agreement, Restricted Stock Units (10) | ||
Securities Purchase Agreement, dated November 12, 2013 between the Registrant and the persons listed therein as purchasers(13) | ||
Registration Rights Agreement, dated November 18, 2013 between the Registrant and the persons listed in the Securities Purchase Agreement as purchasers (14) | ||
Retirement and Release Agreement with Harold Albert dated February 23, 2017 (15) | ||
Amended and Restated Employment Agreement of Brenton W. Hatch dated August 3, 2017 (21)+ | ||
Amended and Restated Employment Agreement of Ryan Oviatt dated August 3, 2017 (22)+ | ||
Consulting Agreement, dated March 24, 2014, between the Registrant on the one hand and Terra Industrial Corporation and Alan Johnson on the other (12) | ||
Stock Redemption Agreement, dated May 25, 2017, between Profire Engergy, Inc. and Hatch Family Holdings Company, LLC, which is wholly owned by Brenton W. Hatch (23) | ||
Restricted Stock Unit Award Agreement by and between Profire Energy, Inc. and Ryan Oviatt, dated October 12, 2017(24)+ | ||
Code of Ethics (11) | ||
Consent of Sadler, Gibb & Associates, LLC, independent registered public accounting firm* | ||
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a)* | ||
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a)* | ||
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350* | ||
Certification of Chief 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** |
(1) | Incorporated by reference to the Registration Statement of the Registrant on Form SB-@ filed with the Commission on September 24, 2004. |
(2) | Incorporated by reference to Exhibit 3.1 to the Registrant's quarterly Report on Form 10-Q filed with the commission on February 13, 2009. |
(3) | Incorporated by reference to Exhibit 3.1 to the Registrant's Current Report on Form 8-K filed with the Commission on December 23, 2013. |
(4) | Incorporated by reference to Exhibit 10.7 to the Registrant's Form S-1 filed on December 24, 2013 (File No. 333-193086). |
(5) | Incorporated by reference to Exhibit 4.01 to the Registrant's Form SB-2 filed on September 24, 2004 (File No. 000-52376). |
(6) | Incorporated by reference to the Registrant's Revised Definitive Proxy Statement on Schedule 14A filed with the Commission on November 10, 2009 (File No. 000-52376). |
(7) | Incorporated by reference to Appendix B to the Registrant's Revised Definitive Proxy Statement on Schedule 14A filed with the Commission on May 1, 2017. |
(8) | Incorporated by reference to Exhibit 10.14 to the Registrant's Annual Report on Form 10-K filed with the Commission on June 13, 2016. |
(9) | Incorporated by reference to Exhibit 10.15 to the Registrant's Annual Report on Form 10-K filed with the Commission on June 13, 2016. |
(10) | Incorporated by reference to Exhibit 10.16 to the Registrant's Annual Report on Form 10-K filed with the Commission on June 13, 2016. |
(11) | Incorporated by reference to Exhibit 14.1 to the Registrant's Form 8-K filed with the Commission on February 12, 2015 (File No. 000-52376). |
(12) | Incorporated by reference to Exhibit 10.1 to the Registrant's Form 8-K filed on March 25, 2015 (File No. 000-52376) |
(13) | Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed November 18, 2013 (File No. 000-52376). |
(14) | Incorporated by reference to Exhibit 10.2 to the Registrant's Current Report on Form 8-K filed November 18, 2013 (File No. 000-52376). |
(15) | Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed February 27, 2017 (File No. 001-36378). |
(16) | Incorporated by reference to Exhibit 10.1 to the Registrant's Annual Report on Form 10-K for the fiscal year ended March 31, 2013 filed with the Commission on July 2, 2013 (File No. 000-52376) |
(17) | Incorporated by reference to Exhibit 10.1 to the Registrant's Form 8-K filed on October 17, 2017 (File No. 001-36378) |
(18) | Incorporated by reference to Exhibit 10.3 to the Registrant's Form 8-K filed on September 8, 2015 (File No. 001-36378) |
(19) | Incorporated by reference to Exhibit 10.1 to the Registrant's Transition Report on Form 10-K filed with the Commission on March 9, 2017. |
(20) | Incorporated by reference to Exhibit 10.9 to the Registrant's Transition Report on Form 10-K filed with the Commission on March 9, 2017. |
(21) | Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed August 9, 2017 (File No. 001-36378). |
(22) | Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed August 9, 2017 (File No. 001-36378). |
(23) | Incorporated by reference to Exhibit 10.2 to the Registrant's Quarterly Report on Form 10-Q filed with the Commission on August 9, 2017. |
(24) | Incorporated by reference to Exhibit 10.1 to the Registrant's Current Report on Form 8-K filed October 17, 2017 (File No. 001-36378). |
Signatures | Title | Date | ||
/s/ Brenton W. Hatch | Chief Executive Officer | March 7, 2018 | ||
Brenton W. Hatch | ||||
/s/ Ryan Oviatt | Chief Financial Officer | March 7, 2018 | ||
Ryan Oviatt | ||||
/s/ Harold Albert | Director | March 7, 2018 | ||
Harold Albert | ||||
/s/ Arlen B. Crouch | Director | March 7, 2018 | ||
Arlen B. Crouch | ||||
/s/ Daren J. Shaw | Director | March 7, 2018 | ||
Daren J. Shaw | ||||
/s/ Ronald R. Spoehel | Director | March 7, 2018 | ||
Ronald R. Spoehel |
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: | March 7, 2018 | 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 |
a) | 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: | March 7, 2018 | 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: | March 7, 2018 | 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: | March 7, 2018 | By: | /s/ Ryan W. Oviatt | |||
Ryan W. Oviatt | ||||||
Chief Financial Officer | ||||||
7J#A(6&AXB)BI*3E)66EYB9FJ*CI*6FIZBIJK*SM+6VM[BYNL+#Q,7&Q\C)
MRM+3U-76U]C9VN'BX^3EYN?HZ>KQ\O/T]?;W^/GZ_\0 'P$ P$! 0$! 0$!
M 0 $" P0%!@<("0H+_\0 M1$ @$"! 0#! <%! 0 0)W $" Q$$
M!2$Q!A)!40=A<1,B,H$(%$*1H;'!"2,S4O 58G+1"A8D-.$E\1<8&1HF)R@I
M*C4V-S@Y.D-$149'2$E*4U155E=865IC9&5F9VAI:G-T=79W>'EZ@H.$A8:'
MB(F*DI.4E9:7F)F:HJ.DI::GJ*FJLK.TM;:WN+FZPL/$Q<;'R,G*TM/4U=;7
MV-G:XN/DY>;GZ.GJ\O/T]?;W^/GZ_]H # ,! (1 Q$ /P#]_**** "BBB@
MHHHH **** "BBB@ KA_VE/B;J'P:^!GB3Q1I=O:W5]HML+B**Y21HG^=00P3
MYNA// '4D $UW%>1_MVIO_9,\9?> 2VB=F"LVP+<1$MA1G@ G(P1C.5Z@0UN
M>@?##Q-/XU^&OAW6;I88[G5M,MKV98E*QJ\D2NP4$D@98X!)..YK0Q6F0P( C"7$F6X+B(#<
M>*_-'X&?!C6?C]\7/#O@W0H=VJ>)+V/3;8R(_EQER SNV"2HY>16;),6&8C
MKY/.,54J5OJ\+]-NK?S/Z\\%>#\)EV4?ZQXY+VDTVI/[%-;M=FTFV^L;*ZU,
M?P=X)UOXC:Q#IFBZ9JNL:IJ6V-+?3[5KB>;+&4.J1G/RB0GY0,;^'=U3/LW_
M ZZ_:%33/M"_!_QHL+*RK$EB.BJ T>W(P-F"(\%
Document and Entity Information - USD ($) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2017 |
Mar. 02, 2018 |
Jun. 30, 2017 |
|
Document and Entity Information: | |||
Entity Registrant Name | Profire Energy Inc | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2017 | ||
Trading Symbol | pfie | ||
Amendment Flag | false | ||
Entity Central Index Key | 0001289636 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 48,830,579 | ||
Entity Public Float | $ 31,908,809 | ||
Entity Filer Category | Smaller Reporting Company | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2017 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Stock Transactions, Parenthetical Disclosures [Abstract] | ||
Preferred stock par value (in usd per share) | $ 0.001 | $ 0.001 |
Preferred stock shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock shares issued (in shares) | 0 | 0 |
Preferred stock shares outstanding (in shares) | 0 | 0 |
Common stock par value (in usd per share) | $ 0.001 | $ 0.001 |
Common stock shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock shares issued (in shares) | 53,931,167 | 53,582,250 |
Common stock shares outstanding (in shares) | 48,606,425 | 50,705,933 |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
12 Months Ended |
---|---|
Dec. 31, 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 Profire Energy, Inc. and Subsidiary (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 between The Flooring Zone, Inc. and Profire Combustion, Inc. and the shareholders of Profire Combustion, Inc. (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 Company 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 Company. 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 US and Canadian markets. 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 total financial position, net income, or stockholders' equity. Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers," which changes the model used for revenue recognition. The FASB has also issued a few clarifying ASU's regarding this update. The standard will be effective for public companies with annual periods beginning after December 15, 2017. We have begun evaluating the impact this standard will have on our revenue recognition and we do not believe it will have a material impact on our business. The new standard requires companies to identify contracts with customers, performance obligations within those contracts, and the transaction price. Once those are identified, companies must allocate the transaction price among performance obligations so that revenue can be recognized when the performance obligation is satisfied. The majority of our revenue comes from selling our product and we do not typically have multiple performance obligations within contracts. Currently we recognize revenue once a product has been delivered, which would be considered a performance obligation under the new standard, so revenue recognition is not expected to change materially under the new revenue standard. On February 25, 2016, the FASB issued ASU 2016-02, "Leases," which makes many changes to accounting for leases. The standard will be effective for public companies with interim and annual periods beginning after December 15, 2018. One of the most notable changes is many of the leases that are currently accounted for as operating leases will have to be capitalized and accounted for similarly to how capital leases are currently accounted for, unless certain criteria are met. We have begun evaluating the impact this standard will have on our lease accounting and we do not believe it will have a material impact on us because we do not have many lease agreements. We will continue to evaluate the impact of this standard as the effective date approaches. The Company has evaluated all other 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. Use of Estimates The preparation of financial statements in accordance with US GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiary. Intercompany balances and transactions have been eliminated. Foreign Currency and Comprehensive Income The functional currencies of the Company and its Subsidiary in Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the Subsidiary were translated to USD using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.7954 and 0.7439 were used to convert the Company's December 31, 2017 and December 31, 2016 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7713 and 0.7638 for the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of Stockholders' Equity. In addition to foreign currency translation gains and losses, the Company recognizes unrealized holding gains and losses on available-for-sale securities as part of comprehensive income, as discussed in the investments policy below. Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investments—other." Certificates of deposit with original maturities greater than three months and remaining maturities less than one year are classified as "short term investments—other." Certificates of deposit with remaining maturities greater than one year are classified as "long term investments—other." Our cash and cash equivalents held in FDIC insured institutions can exceed the federally insured limit periodically and at the end of reporting periods. Our balances exceeded federally insured amounts by $8,892,402 and $5,454,811 as of December 31, 2017 and December 31, 2016, respectively. Accounts Receivable Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $133,884 and $161,815 as of December 31, 2017 and December 31, 2016, respectively. Uncollectible accounts are written off after all collection efforts have been exhausted and Credit Committee approval is granted. Bad debt expense recognized was $262,654 and $272,773 for the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. Inventories The Company's inventories are valued at the lower of cost (the purchase price, including additional fees) or market. Inventory costs are determined based on the average cost basis. A reserve for slow moving and potentially obsolete inventories is recorded as of each balance sheet date and total inventories are presented net of that reserve. Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Investments with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year, and mutual funds expected to be liquidated within one year from the balance sheet date, are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Company's available-for-sale securities in Accumulated Other Comprehensive Income in the Shareholders' Equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its Statements of Operations. Dividend and interest income earned on all investments is included in earnings as other income. Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. Goodwill Goodwill represents the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition. Goodwill is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the "FASB") Accounting Standards Codification ("ASC") 350, "Intangibles—Goodwill and Other" ("ASC 350"). Goodwill is tested for impairment at the reporting unit level. The Company's two operating segments comprise the reporting unit for goodwill impairment testing purposes. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, "Intangibles—Goodwill and Other". The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Company's acquisition transactions has been assigned to patents. Under the guidance, other intangible assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued or retired, any gains are included as part of additional paid-in capital. Losses upon reissuance or retirement reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. Revenue Recognition The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. Cost of Sales The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. Advertising Costs The Company classifies expenses for advertising as general and administrative expenses and recognizes the expense when incurred. The Company incurred advertising costs of $102,845 and $79,996 during the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. Stock-Based Compensation The Company follows the provisions of ASC 718, "Share-Based Payments," which requires all share-based payments to employees to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock options. The intrinsic value method is used to value restricted stock and restricted stock units. 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 with this update, 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 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 an increase in retained earnings. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company's four largest customers represented approximately 15% and 23% of total sales during the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. Income Taxes The Parent is subject to US income taxes on a stand-alone basis. The Parent and its Subsidiary file separate stand-alone tax returns in each jurisdiction in which they operate. The Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. Shipping and Handling Fees and Costs The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. Defined Contribution Retirement Plan The Company matches employee contributions to our 401(k) plan up to 4% of their annual salary. The expense is recognized as part of general and administrative expenses on the income statement and was $123,949 and $79,487 for the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. There were no changes made to the plan during either period. Property and Equipment Property and equipment are stated at historical cost and depreciated over the useful life of the asset using the straight-line method. Useful lives are assigned to assets depending on their category. For details regarding property and equipment, refer to Note 2. Research and Development The Company's policy is to expense all costs associated with research and development ("R&D") that have no future alternative uses when those costs are incurred. Costs incurred to acquire assets currently used in R&D that do have future alternative uses are capitalized and the cost of depreciation is included in R&D expense. To date, no R&D-related assets have been acquired. Fair Value of Financial Instruments The carrying value of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Bond and mutual fund 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. Refer to Note 4 for further details regarding instruments recorded at fair value. Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. Refer to Note 8 for further details on the earning per share calculation. |
PROPERTY AND EQUIPMENT |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment and their estimated useful lives are as in the table below:
The table below shows total depreciation and amortization expense and how depreciation is allocated between cost of goods sold and operating expenses:
|
STOCKHOLDERS' EQUITY |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As described in Note 1, treasury stock is recorded at cost until reissued or retired. As of December 31, 2017 and December 31, 2016, the Company held 5,324,742 and 2,876,317 shares in treasury at a total cost of $6,890,349 and $3,582,805, respectively. All purchases of treasury stock have been made at market prices. |
FINANCIAL INSTRUMENTS AND INVESTMENTS |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments, Owned, at Fair Value [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. 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:
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. 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. The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Company's cash and cash equivalents and investments held as of December 31, 2017 and 2016:
Pre-tax unrealized gains (losses) on investments incurred during the periods are presented below:
The maturities for bonds held by the Company as of December 31, 2017 are presented in the table below:
|
SEGMENT INFORMATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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:
|
STOCK-BASED COMPENSATION |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Periodically the Company issues stock-based awards to employees and independent directors. Vesting terms for outstanding grants vary by grant ranging from immediate to ratably over six years. Typically, grants expire one year after the final vesting. The Board has authorized 4,812,000 shares to be granted for such awards under the Company's 2014 Equity Incentive Plan (the "Plan"). Historically, the Company has only issued non-qualified stock options, restricted stock, and restricted stock units; however, the Plan does allow for other types of awards to be granted in the future. Most awards have been exercisable or convertible based solely on meeting service conditions; however, one grant was made convertible based on meeting both service and performance conditions. Upon exercise or conversion, the Company may issue new shares or reissue shares held in treasury, at the discretion of Management. The Company has elected to recognize forfeitures as they occur. The Company uses the Black-Scholes method for measuring compensation cost of stock options and the intrinsic value method for measuring compensation cost of restricted stock and restricted stock units. Total compensation cost for share-based payments recognized in income was $794,939 and $654,366 during the year ended December 31, 2017 and nine-month transition period ended December 31, 2016, respectively. As of December 31, 2017, the Company had $637,872 in unamortized compensation expense with a weighted average of 1.19 years remaining. The Company received $111,676 and $15,000 in cash from the exercise of share options during the year ended December 31, 2017 and nine-month transition period ended December 31, 2016, respectively. For the tax effect on total compensation expense and the exercise of options, see note 11 for the income tax provision. During the year ended December 31, 2017, the Company did not issue any stock options to employees. During the period, the Company issued 96,081 RSUs to members of the Board of Directors for their service. The grant date fair value of that award was $177,750 and half of those RSUs vested immediately with the remaining vesting on June 15, 2018. The Company also issued a performance based RSU award to its CFO. The award grants a maximum of 66,758 RSUs to be issued upon meeting certain performance metrics over three years and had a grant date fair value of $126,840. The intrinsic value of options exercised during the period was $42,532. The total fair value of options, restricted stock, and restricted stock units vested during the period was $861,737 During the nine-month transition period ended December 31, 2016, the Company issued 848,000 stock options to employees with a weighted-average grant-date fair value of $0.49. The fair value of those options was calculated assuming volatility of 64-69% and an expected term of 3-3.34 years. The intrinsic value of options exercised during the period was $109,900. The total fair value of options, restricted stock, and restricted stock units vested during the period was $712,297. Information regarding outstanding options, restricted stock awards, and restricted stock units is summarized in the tables below:
Information regarding stock options for the year ended December 31, 2017 is summarized in the tables below:
Information regarding restricted stock awards for the year ended December 31, 2017 is summarized in the tables below:
Information regarding restricted stock units for the year ended December 31, 2017 is summarized in the tables below:
|
INVENTORIES |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consisted of the following at each balance sheet date:
|
BASIC AND DILUTED EARNINGS PER SHARE |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [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 exercise price of $3.17 per share were outstanding during the year ended December 31, 2017, but were not included in the computation of diluted EPS because the effect would be anti-dilutive. These options, which expire between March 2018 and May 2020, were still outstanding at December 31, 2017. Options to purchase 1,861,500 shares of common stock at a weighted average exercise price of $1.89 per share were outstanding during the nine-month transition period ended December 31, 2016, but were not included in the computation of diluted EPS because the effect would be anti-dilutive. |
INTANGIBLE ASSETS |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Including Goodwill) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INTANGIBLE ASSETS | INTANGIBLE ASSETS Definite-lived intangible assets consist of distribution agreements, patents, trademarks, copyrights, and domain names. The costs of the distribution agreements are amortized over the remaining life of the agreements. The costs of the patents are amortized over 20 years once the patent is approved. Indefinite-lived intangible assets consist of goodwill. In accordance with ASC 350, goodwill is not amortized but tested for impairment annually or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. We test goodwill for impairment as of each balance sheet date. Intangible assets consisted of the following: Definite-lived intangible assets
Estimated amortization expense for the next five years related to the definite-lived intangible assets is displayed in the following table:
Indefinite-lived intangible assets
The Company determined on a qualitative basis that it was not more likely than not that the fair value of the goodwill arising from the acquisition of VIM Injection Management in November 2014 was less than its carrying value. As such, the Company did not have any impairment for the year ended December 31, 2017. |
QUARTERLY INFORMATION (UNAUDITED) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY INFORMATION (UNAUDITED) | QUARTERLY INFORMATION (UNAUDITED) Quarterly data for the periods below consisted of the following:
Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly amounts may not equal the total computed for the year. |
PROVISION FOR INCOME TAXES |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES The Company recognizes interest related to underpayment of income taxes in interest expense and recognizes penalties in operating expenses. During the year ended December 31, 2017 and nine-month transition period ended December 31, 2016, the Company recognized no interest or penalties related to income taxes. Accordingly, the Company had no accruals for interest and penalties at December 31, 2017 nor December 31, 2016. The Company is current on its U.S. and Canadian income tax filings. Tax years that remain open for examination are 2015 through 2017 in the U.S. and 2012 through 2017 in Canada. At December 31, 2017 and December 31, 2016, the Company did not have any operating loss carryforwards nor tax credit carryforwards. The Company invests in available-for-sale securities that are reported on the balance sheet at fair value, with the gains/losses reported net of tax as part of Other Comprehensive Income (OCI). The tax expense allocated to OCI during the year ended December 31, 2017 was $14,961. The Company has not provided a valuation allowance at December 31, 2017 nor December 31, 2016. The valuation allowance did not change between December 31, 2016 and December 31, 2017. Realization of the deferred tax asset is dependent on generating sufficient taxable income to offset the tax items that will be deductible in the future. Although realization is not assured, Management believes it is more likely than not that all of the deferred tax asset will be realized. The amount of the deferred tax asset considered realizable, however, could be reduced in the near term if estimates of future taxable income are reduced. On December 22, 2017, President Trump signed a tax reform bill into law that decreased the US Federal corporate income tax rate to 21%. Because the rate change was enacted in 2017, the deferred portion of our tax provision was impacted. This rate change resulted in a reduction of our net deferred tax assets (and reduction in deferred income tax benefit) of approximately $32,000. The table below outlines the components of income tax expense (benefit):
The table below reconciles our effective tax rate to the statutory tax rate:
The table below shows the components of deferred taxes:
|
COMMITMENTS AND CONTINGENCIES |
12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES During 2017, the Company became aware of a mechanical issue affecting one of the actuators the Company manufactures and sells. The actuator is an ancillary product sold separately from the Company’s burner-management systems (BMS) and chemical-management systems (CMS). The Company does not believe the mechanical issue presents any significant safety concerns for customers. During Q4 the Company identified a solution that resolved the mechanical issue at a minimal cost; however, subsequent to year-end it was determined that the solution was not effective for some customers in very cold climates. Therefore a new solution is necessary to fully address the issue with these actuators. To date, the Company has had to replace less than 2% of the affected actuators sold and the costs were immaterial. Depending on the number of replacements required, the Company estimates that the total replacement costs could be in the range of $150,000 to $675,000. The Company expects that all costs associated with the repair or replacement of the affected actuators will be incurred during 2018. In March 2014 the Company entered into a consulting agreement with Terra Industrial with Allen Johnson as agent in order to replace a prior royalty agreement. The agreement is for the term of 10 years with fees of $100,000 CAD paid quarterly. The agreement expires in March of 2024. The Company leases office space in Texas and Pennsylvania. Rent expense recognized was $48,110 and $40,013 for the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. In addition, during the year ended December 31, 2017, the Company entered into operating leases for office equipment. The future minimum lease payments for operating leases as of December 31, 2017, consisted of the following:
|
SUBSEQUENT EVENTS |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company management reviewed all material events through the date this report was issued and the following subsequent events took place. On March 2, 2018, the Compensation Committee (the "Committee") of the Company's Board of Directors approved the "2018 Executive Incentive Plan," ("EIP") for Brenton W. Hatch, the Company's President and Chief Executive Officer, and Ryan Oviatt, the Company's Chief Financial Officer. The EIP provides for the potential award of bonuses to participants based on the Company's financial performance in fiscal year 2018. Under the terms of the EIP, each participating executive officer has been assigned a target bonus amount for fiscal year 2018. The target bonus amount for Mr. Hatch is $400,000 and the target bonus for Mr. Oviatt is $87,500. Under no circumstance can the participants receive more than two times the assigned target bonus. The bonus amounts, if any, will be paid 50% in cash and 50% in shares of restricted stock based on the volume weighted average price per share over the five trading days prior to the date of the final determination of the bonus amount. The stock portion of the bonuses is intended to constitute an award under the Company's 2014 Equity Incentive Plan. Performance metrics for the awards include revenues, net income, and free cash flow. On March 2, 2018, the Committee approved as a long-term incentive plan (the "LTIP") the grant of a restricted stock unit award to our Chief Financial Officer, Ryan Oviatt, pursuant to the Company's 2014 Equity Incentive Plan. The agreement is similar to the Long-Term Incentive Plan that was approved in 2017, and provides for the award of up to 70,423 restricted stock units ("Units") under the Company's 2014 Equity Incentive Plan. Subject to performance vesting requirements, each Unit entitles Mr. Oviatt to receive one share of the Company's common stock. The performance period of the LTIP begins on January 1, 2018 and terminates on December 31, 2020. Performance metrics include three-year average revenue growth rate, operating income as a percentage of revenue, and return on invested capital. On March 6, 2018, our Board of Directors approved a grant of 91,000 restricted stock units ("RSUs") issued to various employees. The awards vest annually over five years and will result in total compensation expense of $193,830 to be recognized over the vesting period. On the same day, the Board also approved a one-time executive bonus of $511,000 to Mr. Hatch and $121,500 to Mr. Oviatt for a combined total value of $632,500. The bonus was paid 50% in cash and 50% in restricted stock. The stock portion of the bonus payment was paid by granting awards of shares of restricted stock under the Company's 2014 Equity Incentive Plan, which was fully vested on the date of grant. The number of shares awarded was 119,953 for Mr. Hatch and 28,521 for Mr. Oviatt. |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
12 Months Ended |
---|---|
Dec. 31, 2017 | |
Accounting Policies [Abstract] | |
Reclassifications | 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 total financial position, net income, or stockholders' equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board ("FASB") issued ASU 2014-09, "Revenue from Contracts with Customers," which changes the model used for revenue recognition. The FASB has also issued a few clarifying ASU's regarding this update. The standard will be effective for public companies with annual periods beginning after December 15, 2017. We have begun evaluating the impact this standard will have on our revenue recognition and we do not believe it will have a material impact on our business. The new standard requires companies to identify contracts with customers, performance obligations within those contracts, and the transaction price. Once those are identified, companies must allocate the transaction price among performance obligations so that revenue can be recognized when the performance obligation is satisfied. The majority of our revenue comes from selling our product and we do not typically have multiple performance obligations within contracts. Currently we recognize revenue once a product has been delivered, which would be considered a performance obligation under the new standard, so revenue recognition is not expected to change materially under the new revenue standard. On February 25, 2016, the FASB issued ASU 2016-02, "Leases," which makes many changes to accounting for leases. The standard will be effective for public companies with interim and annual periods beginning after December 15, 2018. One of the most notable changes is many of the leases that are currently accounted for as operating leases will have to be capitalized and accounted for similarly to how capital leases are currently accounted for, unless certain criteria are met. We have begun evaluating the impact this standard will have on our lease accounting and we do not believe it will have a material impact on us because we do not have many lease agreements. We will continue to evaluate the impact of this standard as the effective date approaches. The Company has evaluated all other 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. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with US GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiary. Intercompany balances and transactions have been eliminated. |
Foreign Currency and Comprehensive Income | Foreign Currency and Comprehensive Income The functional currencies of the Company and its Subsidiary in Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the Subsidiary were translated to USD using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.7954 and 0.7439 were used to convert the Company's December 31, 2017 and December 31, 2016 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7713 and 0.7638 for the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of Stockholders' Equity. In addition to foreign currency translation gains and losses, the Company recognizes unrealized holding gains and losses on available-for-sale securities as part of comprehensive income, as discussed in the investments policy below. |
Cash and Cash Equivalents | Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investments—other." Certificates of deposit with original maturities greater than three months and remaining maturities less than one year are classified as "short term investments—other." Certificates of deposit with remaining maturities greater than one year are classified as "long term investments—other." Our cash and cash equivalents held in FDIC insured institutions can exceed the federally insured limit periodically and at the end of reporting periods. |
Accounts Receivable | Accounts Receivable Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $133,884 and $161,815 as of December 31, 2017 and December 31, 2016, respectively. Uncollectible accounts are written off after all collection efforts have been exhausted and Credit Committee approval is granted. |
Inventories | Inventories The Company's inventories are valued at the lower of cost (the purchase price, including additional fees) or market. Inventory costs are determined based on the average cost basis. A reserve for slow moving and potentially obsolete inventories is recorded as of each balance sheet date and total inventories are presented net of that reserve. |
Investments | Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Investments with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year, and mutual funds expected to be liquidated within one year from the balance sheet date, are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Company's available-for-sale securities in Accumulated Other Comprehensive Income in the Shareholders' Equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its Statements of Operations. Dividend and interest income earned on all investments is included in earnings as other income. |
Long-Lived Assets | Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Fair value is generally determined based on discounted future cash flow. |
Goodwill and Other Intangible Assets | Goodwill Goodwill represents the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition. Goodwill is reviewed for impairment annually, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the "FASB") Accounting Standards Codification ("ASC") 350, "Intangibles—Goodwill and Other" ("ASC 350"). Goodwill is tested for impairment at the reporting unit level. The Company's two operating segments comprise the reporting unit for goodwill impairment testing purposes. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, "Intangibles—Goodwill and Other". The Company capitalizes certain costs related to patent technology, as a substantial portion of the purchase price related to the Company's acquisition transactions has been assigned to patents. Under the guidance, other intangible assets with definite lives are amortized over their estimated useful lives. Intangible assets with indefinite lives are tested annually for impairment. |
Treasury Stock | Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued or retired, any gains are included as part of additional paid-in capital. Losses upon reissuance or retirement reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. |
Revenue Recognition | Revenue Recognition The Company records sales when a firm sales agreement is in place, delivery has occurred or services have been rendered, the sales price is fixed or determinable, and collectability is reasonably assured. If customer acceptance of products is not assured, the Company records sales only upon formal customer acceptance. |
Cost of Sales | Cost of Sales The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. |
Advertising Costs | Advertising Costs The Company classifies expenses for advertising as general and administrative expenses and recognizes the expense when incurred. The Company incurred advertising costs of $102,845 and $79,996 during the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. |
Share-Based Compensation | Stock-Based Compensation The Company follows the provisions of ASC 718, "Share-Based Payments," which requires all share-based payments to employees to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock options. The intrinsic value method is used to value restricted stock and restricted stock units. 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 with this update, 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 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 an increase in retained earnings. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company's four largest customers represented approximately 15% and 23% of total sales during the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. |
Income Taxes | Income Taxes The Parent is subject to US income taxes on a stand-alone basis. The Parent and its Subsidiary file separate stand-alone tax returns in each jurisdiction in which they operate. The Subsidiary is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences in the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. |
Shipping and Handling Fees and Costs | Shipping and Handling Fees and Costs The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. |
Defined Contribution Retirement Plan | Defined Contribution Retirement Plan The Company matches employee contributions to our 401(k) plan up to 4% of their annual salary. The expense is recognized as part of general and administrative expenses on the income statement and was $123,949 and $79,487 for the year ended December 31, 2017 and the nine-month transition period ended December 31, 2016, respectively. There were no changes made to the plan during either period. |
Property and Equipment | Property and Equipment Property and equipment are stated at historical cost and depreciated over the useful life of the asset using the straight-line method. Useful lives are assigned to assets depending on their category. For details regarding property and equipment, refer to Note 2. |
Research and Development | Research and Development The Company's policy is to expense all costs associated with research and development ("R&D") that have no future alternative uses when those costs are incurred. Costs incurred to acquire assets currently used in R&D that do have future alternative uses are capitalized and the cost of depreciation is included in R&D expense. To date, no R&D-related assets have been acquired. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments The carrying value of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Bond and mutual fund 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. Refer to Note 4 for further details regarding instruments recorded at fair value. |
Earnings Per Share | Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. Refer to Note 8 for further details on the earning per share calculation. |
PROPERTY AND EQUIPMENT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Property and Equipment | Property and equipment and their estimated useful lives are as in the table below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Depreciation Expense | The table below shows total depreciation and amortization expense and how depreciation is allocated between cost of goods sold and operating expenses:
|
FINANCIAL INSTRUMENTS AND INVESTMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments, Owned, at Fair Value [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Cash, Cash Equivalents, and Investments | The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Company's cash and cash equivalents and investments held as of December 31, 2017 and 2016:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Gain (Loss) on Investments | Pre-tax unrealized gains (losses) on investments incurred during the periods are presented below:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Maturities for Bonds | The maturities for bonds held by the Company as of December 31, 2017 are presented in the table below:
|
SEGMENT INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | The Company operates in the United States and Canada. Segment information for these geographic areas is as follows:
|
STOCK-BASED COMPENSATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding and Exercisable Awards | Information regarding outstanding options, restricted stock awards, and restricted stock units is summarized in the tables below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Activity | Information regarding stock options for the year ended December 31, 2017 is summarized in the tables below:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restricted Stock Activity | Information regarding restricted stock awards for the year ended December 31, 2017 is summarized in the tables below:
Information regarding restricted stock units for the year ended December 31, 2017 is summarized in the tables below:
|
INVENTORIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories consisted of the following at each balance sheet date:
|
BASIC AND DILUTED EARNINGS PER SHARE (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [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:
|
INTANGIBLE ASSETS (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible Assets, Net (Including Goodwill) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: Definite-lived intangible assets
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for the next five years related to the definite-lived intangible assets is displayed in the following table:
|
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets
|
QUARTERLY INFORMATION (UNAUDITED) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information | Quarterly data for the periods below consisted of the following:
|
PROVISION FOR INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Income Tax Expense (Benefit) | The table below outlines the components of income tax expense (benefit):
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles our effective tax rate to the statutory tax rate:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Deferred Tax Assets and Liabilities | The table below shows the components of deferred taxes:
|
COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 | |||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments for operating leases as of December 31, 2017, consisted of the following:
|
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Property and Equipment, Gross | $ 11,325,663 | $ 10,890,533 |
Accumulated depreciation | (4,128,164) | (3,431,810) |
Net property and equipment | 7,197,499 | 7,458,723 |
Furniture and fixtures | ||
Property and Equipment, Gross | $ 458,643 | 450,197 |
Property and Equipment, Est Useful Life | 7 years | |
Computers | ||
Property and Equipment, Gross | $ 331,422 | 297,038 |
Property and Equipment, Est Useful Life | 3 years | |
Software | ||
Property and Equipment, Gross | $ 231,526 | 214,378 |
Property and Equipment, Est Useful Life | 2 years | |
Machinery and equipment | ||
Property and Equipment, Gross | $ 651,143 | 557,666 |
Property and Equipment, Est Useful Life | 7 years | |
Vehicles | ||
Property and Equipment, Gross | $ 2,719,026 | 2,671,714 |
Property and Equipment, Est Useful Life | 5 years | |
Land and buildings | ||
Property and Equipment, Gross | $ 6,933,903 | $ 6,699,540 |
Property and Equipment, Est Useful Life | 30 years |
PROPERTY AND EQUIPMENT - Schedule Of Depreciation Expense (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Depreciation and amortization expense | $ 756,782 | $ 890,018 |
Cost of goods sold - product | ||
Depreciation and amortization expense | 188,579 | 250,369 |
Cost of goods sold - service | ||
Depreciation and amortization expense | 85,892 | 113,066 |
Operating expenses | ||
Depreciation and amortization expense | 461,357 | 497,940 |
Amortization expense | ||
Depreciation and amortization expense | $ 20,954 | $ 28,643 |
STOCKHOLDERS' EQUITY (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Stockholders' Equity Note [Abstract] | ||
Treasury stock (shares) | 5,324,742 | 2,876,317 |
Treasury stock, value | $ 6,890,349 | $ 3,582,805 |
FINANCIAL INSTRUMENTS AND INVESTMENTS - Schedule of Cash and Cash Equivalents and Investments (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Adjusted Cost | $ 13,838,416 | $ 13,590,000 |
Pre-Tax Unrealized Losses | (121,665) | (179,208) |
Fair Value | 13,716,751 | 13,410,792 |
Cash and Cash Equivalents | 888,942 | 1,053,844 |
Short Term | 4,310,627 | 5,959,361 |
Long Term | 8,517,182 | 6,397,587 |
Level 1 | ||
Adjusted Cost | 2,515,178 | 2,527,380 |
Pre-Tax Unrealized Losses | (29,679) | (90,495) |
Fair Value | 2,485,499 | 2,436,885 |
Cash and Cash Equivalents | 888,942 | 1,053,844 |
Long Term | 1,596,557 | 1,383,041 |
Level 2 | ||
Adjusted Cost | 11,323,238 | 11,062,620 |
Pre-Tax Unrealized Losses | (91,986) | (88,713) |
Fair Value | 11,231,252 | 10,973,907 |
Short Term | 4,310,627 | 5,959,361 |
Long Term | 6,920,625 | 5,014,546 |
Money Market Funds | Level 1 | ||
Adjusted Cost | 888,942 | 1,053,844 |
Fair Value | 888,942 | 1,053,844 |
Cash and Cash Equivalents | 888,942 | 1,053,844 |
Mutual Funds | Level 1 | ||
Adjusted Cost | 1,626,236 | 1,473,536 |
Pre-Tax Unrealized Losses | (29,679) | (90,495) |
Fair Value | 1,596,557 | 1,383,041 |
Long Term | 1,596,557 | 1,383,041 |
Certificates of Deposit | Level 2 | ||
Adjusted Cost | 4,009,810 | 3,886,415 |
Fair Value | 4,009,810 | 3,886,415 |
Short Term | 4,009,810 | 2,993,825 |
Long Term | 892,590 | |
Corporate Bonds | Level 2 | ||
Adjusted Cost | 2,228,855 | 2,246,956 |
Pre-Tax Unrealized Losses | (30,081) | (29,419) |
Fair Value | 2,198,774 | 2,217,537 |
Short Term | 300,817 | 400,053 |
Long Term | 1,897,957 | 1,817,484 |
Municipal Bonds | Level 2 | ||
Adjusted Cost | 5,084,573 | 4,929,249 |
Pre-Tax Unrealized Losses | (61,905) | (59,294) |
Fair Value | 5,022,668 | 4,869,955 |
Short Term | 0 | 2,565,483 |
Long Term | $ 5,022,668 | $ 2,304,472 |
FINANCIAL INSTRUMENTS AND INVESTMENTS - Unrealized Gain (Loss) on Investments (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Financial Instruments, Owned, at Fair Value [Abstract] | ||
Unrealized Holding Gains (Losses) | $ (179,208) | $ 57,543 |
FINANCIAL INSTRUMENTS AND INVESTMENTS - Maturities for Bonds (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Investments, Fair Value | $ 13,716,751 | $ 13,410,792 |
Level 2 | ||
Investments, Fair Value | 11,231,252 | $ 10,973,907 |
Bonds | Level 2 | ||
Investments, Fair Value | 7,222,814 | |
Bonds | Level 2 | Less Than One Year | ||
Investments, Fair Value | 302,189 | |
Bonds | Level 2 | 1-2 years | ||
Investments, Fair Value | 1,685,858 | |
Bonds | Level 2 | 2-5 years | ||
Investments, Fair Value | 4,983,823 | |
Bonds | Level 2 | 5-10 years | ||
Investments, Fair Value | 250,944 | |
Bonds | Level 2 | Over 10 years | ||
Investments, Fair Value | $ 0 |
SEGMENT INFORMATION (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Revenues | $ 10,946,738 | $ 10,050,192 | $ 9,464,951 | $ 7,824,495 | $ 7,022,330 | $ 4,990,813 | $ 3,974,043 | $ 15,987,186 | $ 38,286,376 |
Profit (Loss) | 1,318,899 | $ 1,217,918 | $ 1,312,647 | $ 600,071 | 608,896 | $ 74,452 | $ (605,295) | 78,053 | 4,449,535 |
Long-lived assets | 17,279,991 | 15,405,033 | 15,405,033 | 17,279,991 | |||||
Canada | |||||||||
Revenues | 3,962,774 | 7,490,252 | |||||||
Profit (Loss) | (356,623) | (189,865) | |||||||
Long-lived assets | 1,508,943 | 982,124 | 982,124 | 1,508,943 | |||||
United States | |||||||||
Revenues | 12,024,412 | 30,796,124 | |||||||
Profit (Loss) | 434,676 | 4,639,399 | |||||||
Long-lived assets | $ 15,771,048 | $ 14,422,909 | $ 14,422,909 | $ 15,771,048 |
INVENTORIES (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials | $ 225,735 | $ 940,527 |
Finished goods | 6,417,494 | 7,112,098 |
Work in process | 0 | 0 |
Subtotal | 6,643,229 | 8,052,625 |
Reserve for Obsolescence | (197,146) | (213,122) |
Total | $ 6,446,083 | $ 7,839,503 |
BASIC AND DILUTED EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Income (Numerator) | |||||||||
Net income available to common stockholders | $ 1,318,899 | $ 1,217,918 | $ 1,312,647 | $ 600,071 | $ 608,896 | $ 74,452 | $ (605,295) | $ 78,053 | $ 4,449,535 |
Stock options & RSUs | 0 | 0 | |||||||
Net income available to common stockholders assumed conversions | $ 78,053 | $ 4,449,535 | |||||||
Weighted Average Shares (Denominator) | |||||||||
Net income available to common stockholders (shares) | 52,857,299 | 49,365,592 | |||||||
Stock options & RSUs (shares) | 625,811 | 492,843 | |||||||
Net income available to common stockholders assumed conversions (shares) | 53,483,110 | 49,858,435 | |||||||
Per-Share Amount | |||||||||
Net income available to common stockholders (usd per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.01 | $ 0.01 | $ 0.00 | $ (0.01) | $ 0.00 | $ 0.09 |
Net income available to common stockholders assumed conversions (usd per share) | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.01 | $ 0.01 | $ 0.00 | $ (0.01) | $ 0.00 | $ 0.09 |
BASIC AND DILUTED EARNINGS PER SHARE - Narrative (Details) - $ / shares |
9 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Earnings Per Share, Basic and Diluted [Abstract] | ||
Antidilutive securities excluded (shares) | 1,861,500 | 1,569,730 |
Antidilutive securities excluded (usd per share) | $ 1.89 | $ 3.17 |
INTANGIBLE ASSETS - Finite-Lived Intangible Assets (Details) - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
|
Total definite-lived intangible assets, net | $ 494,792 | $ 490,082 |
Distribution agreements | ||
Definite-lived intangible assets, gross | 41,984 | 39,264 |
Less: Accumulated amortization | (41,984) | (39,264) |
Total definite-lived intangible assets, net | $ 0 | 0 |
Patents, trademarks, copyrights, and domain names | ||
Useful life of patents | 20 years | |
Definite-lived intangible assets, gross | $ 584,980 | 547,071 |
Less: Accumulated amortization | (90,188) | (56,989) |
Total definite-lived intangible assets, net | $ 494,792 | $ 490,082 |
INTANGIBLE ASSETS - Future Amortization Expense (Details) |
Dec. 31, 2017
USD ($)
|
---|---|
Intangible Assets, Net (Including Goodwill) [Abstract] | |
2018 | $ 28,103 |
2019 | 28,103 |
2020 | 28,103 |
2021 | 28,103 |
2022 | $ 28,103 |
INTANGIBLE ASSETS - Indefinite-Lived Intangible Assets (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Goodwill | $ 997,701 | $ 997,701 |
QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Quarterly Financial Information Disclosure [Abstract] | |||||||||
Total revenues | $ 10,946,738 | $ 10,050,192 | $ 9,464,951 | $ 7,824,495 | $ 7,022,330 | $ 4,990,813 | $ 3,974,043 | $ 15,987,186 | $ 38,286,376 |
Gross profit | 5,858,107 | 5,061,795 | 4,976,832 | 4,367,173 | 3,561,129 | 2,624,659 | 1,914,250 | 8,100,038 | 20,263,907 |
Income (loss) from operations | 2,091,808 | 1,845,407 | 1,831,163 | 1,071,042 | 670,413 | (127,369) | (881,278) | (338,234) | 6,839,420 |
Income tax expense (benefit) | 827,061 | 709,169 | 638,528 | 498,936 | 118,845 | (99,701) | (245,877) | (226,733) | 2,673,694 |
Net Income | $ 1,318,899 | $ 1,217,918 | $ 1,312,647 | $ 600,071 | $ 608,896 | $ 74,452 | $ (605,295) | $ 78,053 | $ 4,449,535 |
Basic earnings (loss) per common share (usd per share) | $ 0.03 | $ 0.03 | $ 0.03 | $ 0.01 | $ 0.01 | $ 0.00 | $ (0.01) | $ 0.00 | $ 0.09 |
Diluted earnings (loss) per common share (usd per share) | $ 0.03 | $ 0.02 | $ 0.03 | $ 0.01 | $ 0.01 | $ 0.00 | $ (0.01) | $ 0.00 | $ 0.09 |
PROVISION FOR INCOME TAXES - Narrative (Details) - USD ($) |
9 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Other comprehensive income (loss), tax | $ 14,961 | |
Effect of tax rate change | $ 0 | $ 31,648 |
PROVISION FOR INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) |
3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2017 |
Sep. 30, 2017 |
Jun. 30, 2017 |
Mar. 31, 2017 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Current | |||||||||
Federal | $ (31,983) | $ 2,482,978 | |||||||
State | (1,683) | 130,683 | |||||||
Foreign | 21,303 | 86,872 | |||||||
Total Current | (12,363) | 2,700,533 | |||||||
Deferred | |||||||||
Federal | (203,652) | (55,563) | |||||||
State | (10,718) | (2,924) | |||||||
Effect of tax rate change | 0 | 31,648 | |||||||
Total Deferred | (214,370) | (26,839) | |||||||
Total Provision for (Benefit from) Income Taxes | $ 827,061 | $ 709,169 | $ 638,528 | $ 498,936 | $ 118,845 | $ (99,701) | $ (245,877) | $ (226,733) | $ 2,673,694 |
PROVISION FOR INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) |
9 Months Ended | 12 Months Ended |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2017 |
|
Income Tax Disclosure [Abstract] | ||
Federal Statutory Tax Rate | 34.00% | 34.00% |
State Statutory Tax Rate, Net of Federal Effect | 3.30% | 3.30% |
Meals & Entertainment | (5.20%) | 1.00% |
Gain/loss on Sale of PPE | (5.90%) | 0.00% |
Goodwill | 22.00% | (2.00%) |
Tax Exempt Interest | 20.70% | (10.00%) |
Ending Balance True Up | 28.00% | 0.00% |
Tax Overpayment | 38.30% | 0.00% |
Other | 17.30% | 11.20% |
Effective Tax Rate | 152.50% | 37.50% |
PROVISION FOR INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) |
Dec. 31, 2017 |
Dec. 31, 2016 |
---|---|---|
Income Tax Disclosure [Abstract] | ||
Stock Compensation | $ 238,412 | $ 277,296 |
Bad Debt | 25,523 | 46,790 |
Inventory reserve | 50,234 | 53,121 |
Unrealized loss on investments | 31,632 | 66,844 |
Deferred tax asset | 345,801 | 444,051 |
Depreciation | 271,871 | 367,490 |
Amortization | 1,113 | 15,621 |
Goodwill | 0 | 0 |
Deferred tax liability | 272,984 | 383,111 |
Net Deferred Tax Asset | $ 72,817 | $ 60,940 |
COMMITMENTS AND CONTINGENCIES (Details) |
1 Months Ended | 9 Months Ended | 12 Months Ended |
---|---|---|---|
Mar. 31, 2014
CAD
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2017
USD ($)
|
|
Loss Contingencies [Line Items] | |||
Percentage of actuators replaced | 0.02 | ||
Consulting agreement term | 10 years | ||
Consulting agreement, quarterly payments | CAD | CAD 100,000 | ||
Rent expense | $ 40,013 | $ 48,110 | |
2018 | 59,005 | ||
2019 | 39,789 | ||
2020 | 15,371 | ||
2021 | 302 | ||
2022 | 0 | ||
Thereafter | 0 | ||
Total | 114,467 | ||
Minimum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | 150,000 | ||
Maximum | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 675,000 |
_^8K5 M_NG'G',^33Y:1SUF<<9 @($0LZ0P(L2L*(P,,6L*HT+,(X71(69#8
;0890 I2'5="1!1A)$I!25X(S15Y&D-%9QP)1B
M8$<)52)&@>9::D!E7 "8 %;1'P,08R5!$B)K,R3070R9)DLF3G15PG"QCM
M0)$.5)QMP!M>174%"98AV.HF+*"C23J:H(//EH[B6&V9I<,8,HPAPJ#CN3!1
M&'^$&4-U7)JHCM:@Q%">(+W2@X"Q)1E;@C$2BZ6-"R!2+@=.7TK&28DX2' 6
M:1S',L#[89G&.UR@@[PB7)DTU0-G@#-:M!E!6F-%9E&H"5BCQ9 .\H$.P8E@
MJ.*+'A0$$\KZ-$7B?0 CH9-J
MI2RX5#8/KN#6/16+(:"V?GMP>ST-S&18U<]O 5D>I.(/4$L#!!0 ( "N'
M9TRF_2N I63F
M]P,(/58XQR^)1W[J74B0NAS8";Z!^SX _;8PR0DN*:/S#1DQ",QP[R GN8( Y %YH8_,DN, >&LONYJ_5EF'C++
M\2+@M3V_5\8JW(/ /8C:@W@H(P7*J&%4S9R:7H@52G-0*!,,)))0"\8]#4'O
M3U@)-)^%G#9,>!"HBG"$,4;EW\!4$L#!!0 ( "N'9TQR;ON0M $ -(# 9 >&PO
M=V]R:W-H965T
4+,5_@2LHA(=,,$9E
ME(LKJ4;GC5Y4,!4M7N9=]G&?YIO;;*'M$_A"X"OA+L9A&PO
M=V]R:W-H965T
Z/X;O5*FX4:)/J/D3-I?
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M=&'' UY,70Z4N7L9KV=CK:?Q'R,D,-X#) ,X&P/]KP"8#]F9@JYF,S&RJ
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M,5#@0%&\=5"D=TCFEA4#\4
8$^$ A8W.0C<&32(')%!G;,QE=[H^W9"*2 B28B T!
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8)03RAC4BT'=#,45 D/Y4BF#+=FA!!&PO=V]R:W-H965T