Talon International (TALN) 10-Q 12 May 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	May. 11, 2016
Entity Registrant Name	TALON INTERNATIONAL, INC.
Entity Central Index Key	1,047,881
Trading Symbol	taln
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	No
Entity Common Stock, Shares Outstanding (in shares)		92,267,831
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Princess Investment Holdings Inc [Member] | Line of Credit [Member]
Current liabilities:
Revolving line of credit from related party, net of discounts and deferred financing costs	$ 3,634,953	$ 3,492,772
Cash and cash equivalents	2,141,705	2,852,315
Accounts receivable, net	5,057,239	3,796,209
Inventories, net	783,533	655,360
Current deferred income tax assets, net	1,060,807	997,067
Prepaid expenses and other current assets	621,291	554,389
Total current assets	9,664,575	8,855,340
Property and equipment, net	796,518	781,893
Intangible assets, net	4,310,677	4,313,948
Deferred income tax assets, net	4,947,570	5,046,345
Other assets	314,992	267,325
Total assets	20,034,332	19,264,851
Accounts payable	6,920,275	6,087,561
Accrued severance payments	483,762	526,671
Accrued commissions	118,045	645,503
Other accrued expenses	2,164,504	1,956,130
Current portion of capital lease obligations	22,379	21,940
Total current liabilities	9,708,965	9,237,805
Capital lease obligations, net of current portion	55,022	60,784
Deferred Tax Liabilities, Net, Noncurrent	3,310	5,406
Other liabilities	260,885	257,903
Total liabilities	$ 13,663,135	$ 13,054,670
Commitments and contingencies (Note 11)
Stockholders’ Equity:
Common Stock, $0.001 par value, 300,000,000 shares authorized; 92,267,831 shares issued and outstanding at March 31, 2016 and December 31, 2015	$ 92,268	$ 92,268
Additional paid-in capital	64,866,703	64,754,306
Accumulated deficit	(58,689,665)	(58,738,782)
Accumulated other comprehensive income	101,891	102,389
Total stockholders’ equity	6,371,197	6,210,181
Total liabilities and stockholders’ equity	$ 20,034,332	$ 19,264,851

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	92,267,831	92,267,831
Common stock, shares outstanding (in shares)	92,267,831	92,267,831

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Income (Loss) (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net sales	$ 11,264,632	$ 10,808,422
Cost of goods sold	7,100,373	7,244,515
Gross profit	4,164,259	3,563,907
Sales and marketing expenses	1,502,886	1,642,234
General and administrative expenses	2,425,958	2,067,492
Total operating expenses	3,928,844	3,709,726
Income (loss) from operations	235,415	(145,819)
Interest expense, net	150,647	94,419
Income (loss) before provision for income taxes	84,768	(240,238)
Provision for (benefit from) income taxes, net	35,651	(81,015)
Net income (loss)	$ 49,117	$ (159,223)
Basic and diluted net income (loss) per share (in dollars per share)	$ 0	$ 0
Weighted average number of common shares outstanding - Basic (in shares)	92,267,831	92,267,831
Weighted average number of common shares outstanding - Diluted (in shares)	93,473,691	92,267,831
Net income (loss)	$ 49,117	$ (159,223)
Other comprehensive income (loss) from foreign currency translation	(498)	279
Total comprehensive income (loss)	$ 48,619	$ (158,944)

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Leasehold Improvements [Member]
Non-cash financing activities:
Lease incentives		$ (133,333)
Effect Of Foreign Currency Translation On Net Assets [Member]
Non-cash financing activities:
Lease incentives	$ (498)	279
Term Loan Payable [Member]
Cash flows from financing activities:
Payments of term loan payable		(354,167)
Net income (loss)	$ 49,117	(159,223)
Depreciation and amortization	72,661	56,866
Amortization of deferred financing cost and debt discounts	26,069	26,370
Stock based compensation	112,397	54,015
Deferred income taxes (benefits), net	32,940	(44,170)
Change in provision for bad debt	(252)	(5,047)
Inventory valuation provisions, net	(1,152)	15,719
Accounts receivable	(1,253,802)	(1,290,115)
Inventories	(127,020)	(481,585)
Prepaid expenses and other current assets	(66,715)	(86,520)
Other assets.	(47,499)	(868)
Accounts payable and accrued expenses	575,812	1,210,986
Other liabilities	2,866	33,837
Net cash used in operating activities	(624,578)	(669,735)
Acquisitions of property and equipment	$ (83,294)	(68,513)
Acquisitions of intangibles		(5,765)
Net cash used in investing activities	$ (83,294)	(74,278)
Revolving credit loan borrowings		200,000
Payment of financing costs associated with credit facilities		$ (56,915)
Payment of capital leases	$ (5,323)
Net cash used in financing activities	(5,323)	$ (211,082)
Net effect of foreign currency exchange translation on cash	2,585	3,735
Net decrease in cash and cash equivalents	(710,610)	(951,360)
Cash and cash equivalents at beginning of period	2,852,315	2,603,138
Cash and cash equivalents at end of period	2,141,705	1,651,778
Cash received (paid) during the period for:
Interest paid	(8,902)	(68,378)
Interest received	436	418
Income tax paid (refunded), net (principally foreign)	11,220	$ (60)
Non-cash financing activities:
Interest accrued on revolving line of credit from related party	$ 116,112

Note 1 - Presentation of Interi

Note 1 - Presentation of Interim Information	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. Presentation of Interim Information The accompanying unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States for interim financial information and in accordance with the instructions to Form 10-Q and Article 8 of Regulation S-X. Certain information and footnote disclosures normally included in comprehensive financial statements have been condensed or omitted pursuant to such rules and regulations, although the management of Talon International, Inc. and its consolidated subsidiaries (collectively, the “Company”) believes that the disclosures made are adequate to make the information not misleading. These financial statements should be read in conjunction with the audited financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015.

Note 2 - Summary of Significant

Note 2 - Summary of Significant Accounting Policies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Significant Accounting Policies [Text Block]	Note 2. Summary of Significant Accounting Policies A complete description of the Company’s Significant Accounting Policies is included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2015, and should be read in conjunction with these unaudited consolidated financial statements. The Significant Accounting Policies noted below are only those policies that have changed materially or have supplemental information included for the periods presented here. Allowance for Accounts Receivable Doubtful Accounts The Company is required to make judgments as to the collectibility of accounts receivable based on established aging policy, historical experience and future expectations. The allowances for doubtful accounts represent allowances for customer trade accounts that are estimated to be partially or entirely uncollectible. These allowances are used to reduce gross trade receivables to their net realizable value. The Company records these allowances based on estimates related to the following factors: (i) customer specific allowances; (ii) amounts based upon an aging schedule; and (iii) an estimated amount, based on the Company’s historical experience, for issues not yet identified. Bad debt expense (recoveries), net for the three months ended March 31, 2016 and 2015 were $(252) and $(5,047), respectively. Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “ Fair Value Measurements and Disclosures Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s financial instruments include cash and cash equivalents, accounts receivable, other assets, accounts payable, accrued expenses, revolving line of credit from related party, capital lease obligations and other liabilities. The book value of the financial instruments is representative of their fair values. In accordance with this guidance, the Company measures its cash equivalents at fair value. The Company’s cash equivalents are classified within Level 1. Cash equivalents are valued primarily using quoted market prices utilizing market observable inputs. At March 31, 2016 and December 31, 2015, cash equivalents consisted of money market funds measured at fair value on a recurring basis; fair value of the Company’s money market funds was approximately $329,000 and $860,000, respectively. Intangible Assets Intangible assets consist of the Talo Intangibles - Goodwill and Other Property, Plant and Equipment The Company applies Accounting Standards Update (“ASU”) 2012-02, “ Intangibles – Goodwill and Other - Testing Indefinite-lived Intangible Assets for Impairment From time to time the Company makes investments in product and technical opportunities that are complimentary to or enhancements to its apparel accessories business. During the three months ended March 31, 2016, the Company made no investments in property rights complimentary to the Company’s Talon Zipper products and in 2015, the Company invested $5,765, in the acquisition of intellectual property rights complimentary to the Company’s Talon Zipper products. As of March 31, 2016 and December 31, 2015 the Company had accumulated investments of $73,005, for intellectual property rights complimentary to the Company’s Talon Zipper products, which were not yet in service. Intangible assets as of March 31, 2016 and December 31, 2015 are as follows: March 31 , December 31, 201 6 201 5 Tradename - Talon trademark $ 4,110,751 $ 4,110,751 Intellectual property rights 251,727 251,727 Less: Accumulated amortization (10 to 17 years) (51,801 ) (48,530 ) Intellectual property rights, net 199,926 203,197 Intangible assets, net $ 4,310,677 $ 4,313,948 Amortization expense for intangible assets was $3,271 for the three months ended March 31, 2016 and 2015. Classification of Expenses Costs of Goods Sold Sales and Marketing Expenses – General and Administrative Expenses Interest Expense, net Foreign Currency Translation The Company has operations and holds assets in various foreign countries. The local currency is the functional currency for the Company’s subsidiaries in China and India. Assets and liabilities are translated at end-of-period exchange rates while revenues and expenses are translated at the average exchange rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income (loss) until the translation adjustments are realized. Included in accumulated other comprehensive income was a cumulative foreign currency translation gain of $101,891 and $102,389 as of March 31, 2016 and December 31, 2015, respectively. Comprehensive Income (loss) Comprehensive income (loss) consists of net income (loss) and unrealized income (loss) on foreign currency translation adjustments. The foreign currency translation adjustment represents the net currency translation gains and losses related to our China and India subsidiaries, which have not been reflected in the net income for the periods presented. The Company reports comprehensive income (loss) in accordance with Topic 220 “ Comprehensive Income” Presentation of Comprehensive Income Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles 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 reported amounts of revenues and expenses during the year. The accounting estimates that require the Company’s most significant, difficult and subjective judgments include the valuation allowance for accounts receivable and inventory, the assessment of recoverability of long-lived assets and intangible assets, stock-based compensation and the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions). Actual results could differ materially from the Company’s estimates. Presentation In order to facilitate the comparison of financial information, certain amounts reported in the prior year have been reclassified to conform to the current year presentation.

Note 3 - New Accounting Pronoun

Note 3 - New Accounting Pronouncements	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	Note 3. New Accounting Pronouncements In March 2016, the FASB issued Accounting Standards Update No. 2016-09, “ Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. ” In February 2016, the FASB issued Accounting Standards Update No. 2016-02 “ Leases In November 2015, the FASB issued ASU 2015-17, “ Balance Sheet Classification of Deferred Taxes ” In August 2015, the FASB issued ASU 2015-15, “ Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements” Simplifying the Presentation of Debt Issuance Costs In July 2015, the FASB issued ASU 2015-11, “ Simplifying the Measurement of Inventor

Note 4 - Net Income (Loss) Per

Note 4 - Net Income (Loss) Per Share	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	N ote 4. Net Income (Loss) Per Shar The following is a reconciliation of the numerators and denominators of the basic and diluted net income (loss) per share computations: Net income (loss) Shares Per Share Amount Three months ended March 31, 2016: Basic net income per share- Net income $ 49,117 92,267,831 $ 0.00 Effect of Dilutive Securities - Options - 1,205,860 - Diluted net income per share $ 49,117 93,473,691 $ 0.00 Three months ended March 31, 2015: Basic net loss per share- Net loss $ (159,223 ) 92,267,831 $ (0.00 ) Effect of Dilutive Securities - Options - - - Diluted net loss per share $ (159,223 ) 92,267,831 $ (0.00 ) For the three months ended March 31, 2016, options to purchase 1,205,860 shares of common stock exercisable between $0.04 and $0.11 per share per share, were outstanding and included in the computation of diluted net income per share. Options to purchase 9,748,600 shares of common stock exercisable between $0.14 and $1.33 per share and warrants to purchase 3,250,000 shares of common stock exercisable between $0.14 and $0.18 per share, were outstanding, but were not included in the computation of diluted net income per share applicable to common stockholders because they would have an antidilutive effect on the net income per share. For the three months ended March 31, 2015, options to purchase 9,672,767 shares of common stock exercisable between $0.04 and $3.14 per share, were outstanding but were not included in the computation of diluted net loss per share because they would have an antidilutive effect on the net loss per share.

Note 5 - Accounts Receivable

Note 5 - Accounts Receivable	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	Note 5. Accounts Receivable Accounts receivable are included on the consolidated balance sheets net of the allowance for doubtful accounts. The allowance for doubtful accounts at March 31, 2016 and December 31, 2015 was $57,465 and $67,217, respectively.

Note 6 - Inventories

Note 6 - Inventories	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 6. Inventories Inventories are stated at the lower of cost, determined using the first-in, first-out basis, or market value and are all categorized as finished goods. The costs of inventory include the purchase price, inbound freight and duties, conversion costs and certain allocated production overhead costs. Inventory valuation reserves are recorded for damaged, obsolete, excess and slow-moving inventory. The Company uses estimates to record these reserves. Slow-moving inventory is reviewed by category and may be partially or fully reserved depending on the type of product and the length of time the product has been included in inventory. Reserve adjustments are made for the difference between the cost of the inventory and the estimated market value, if lower, and charged to operations in the period in which the facts that give rise to these adjustments become known. Market value of inventory is estimated based on the impact of market trends, an evaluation of economic conditions and the value of current orders relating to the future sales of this inventory. Inventories consist of the following: March 31 , December 31, 201 6 201 5 Finished goods $ 848,199 $ 724,372 Less: Reserves (64,666 ) (69,012 ) Total inventories $ 783,533 $ 655,360

Note 7 - Credit Facilities, Lon

Note 7 - Credit Facilities, Long Term Obligations and Related Party Transactions	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 7. Credit Facilities, Long Term Obligations and Related Party Transactions Revolving Line of Credit from Related Party On August 10, 2015, the Company entered into a loan and reimbursement agreement (“Loan Agreement”) with Princess Investment Holdings Inc. (“Princess Investment”). Princess Investment may be deemed an affiliate of Kutula Holdings, Ltd., a significant stockholder of the Company, which also has the contractual right to designate a director to the Company’s Board of Directors. Pursuant to the Loan Agreement, Princess Investment agreed to make available to the Company a loan of up to $3,000,000 (“Revolving Line of Credit”). Advances under the Loan Agreement accrued interest initially on the unpaid principal balance at an annual rate of 12.5%. Accrued interest on the Revolving Line of Credit was payable monthly beginning September 1, 2015, and the principal amount was payable in monthly installments beginning September 1, 2016 and continuing through the maturity date of August 10, 2018. Pursuant to the Loan Agreement, the Company issued Princess Investment warrants to purchase 1,000,000 shares of the Company’s common stock. The warrants are exercisable immediately upon issuance for a five-year period at an exercise price of $0.18 per share and include a “cashless” exercise option. On August 11, 2015, the Company received an advance from Princess Investment under the Loan Agreement in the amount of $1,500,000, of which $1,440,278 was used to pay off the Term Loan Payable to MUFG Union Bank N.A. on August 12, 2015 (See Retired Union Bank Credit Facilities ). The Company borrowed an additional $500,000 through December 21, 2015, and had an outstanding balance of $2,000,000 under the Revolving Line of Credit from Princess Investment at December 21, 2015. On December 21, 2015, the Company entered into an amended and restated credit agreement (the “Princess Investment Credit Agreement”) with Princess Investment, which amended the existing Loan Agreement, dated August 10, 2015, with Princess Investment to, among other things, increase the borrowing availability under the Loan Agreement from $3,000,000 to $6,000,000 and extend the maturity date of the loan to December 21, 2020 (the “Maturity Date”). The Princess Investment Credit Agreement requires the Company to comply with certain financial covenants, including a requirement not to incur a loss after taxes (as calculated in accordance with GAAP) of more than $1,000,000 in the aggregate for any two consecutive fiscal quarters, not to incur a loss after taxes for any three consecutive fiscal quarters and not to incur a loss after taxes for any trailing twelve month period ending at the end of any fiscal quarter. For the three months ended March 31, 2016, the Company was in compliance with all covenants. Princess Investment will make advances under the Revolving Line of Credit from time to time as requested by the Company. The Company may prepay the Revolving Line of Credit at any time, and amounts prepaid may be re-borrowed through November 21, 2020. Under the amended terms, the Revolving Line of Credit will accrue interest on the unpaid principal balance at an annual rate of 11.5%. Interest on the Revolving Line of Credit for the period from December 21, 2015 through December 1, 2016 will accrue and be added to principal on December 1, 2016, and thereafter interest will be payable monthly in arrears. No principal payments will be due during the period ending December 31, 2017. Thereafter, principal will be payable $25,000 per month during the twelve months ended December 31, 2018, $35,000 per month during the twelve months ended December 31, 2019 and $50,000 per month during the twelve months ended December 31, 2020, with the remaining outstanding principal amount payable on the Maturity Date. The Princess Investment Credit Agreement continues to require payment of a $60,000 loan fee at maturity. The payment and performance of all the indebtedness and other obligations to Princess Investment, including all borrowings under the Princess Investment Credit Agreement, are guaranteed by the subsidiaries Talon Technologies, Inc. and Tag-It Pacific Limited pursuant to a Guaranty Agreement entered into on August 10, 2015, as amended on December 21, 2015. The payment and performance of all of the indebtedness and other obligations to Princess Investment under the Princess Investment Credit Agreement and related agreements are secured by liens on substantially all of the Company’s assets and the assets of the Company’s subsidiary guarantors pursuant to a Pledge and Security Agreement entered into on August 10, 2015, as amended on December 21, 2015. Pursuant to the Princess Investment Credit Agreement, the Company issued to Princess Investment warrants to purchase 2,000,000 shares of its common stock. The warrants are exercisable immediately upon issuance for a five-year period at an exercise price of $0.18 per share, and include a “cashless” exercise option. On December 23, 2015, the Company received an advance from Princess Investment under the Princess Investment Credit Agreement in the amount of $2,000,000, of which $1,622,000 was used to pay in full all indebtedness outstanding under the Commercial Credit Agreement, dated December 31, 2013, with MUFG Union Bank N.A., which indebtedness was scheduled to mature on December 31, 2015. Upon repayment of the indebtedness under the Credit Agreement, Union Bank released its liens on the Company’s assets and those of the Company’s subsidiaries, Princess Investment became the only secured lender, and in addition to the Credit Agreement, the following agreements (the “Security Agreements”) terminated in accordance with their terms: Continuing Guaranties, dated December 31, 2013, executed by the Company’s current subsidiaries, Talon Technologies, Inc. and Tag-It Pacific Limited in favor of Union Bank; Security Agreements, dated December 31, 2013, executed by the Company and its current domestic subsidiary, Talon Technologies, Inc., and Union Bank; a Debenture executed by Tag-It Pacific Limited and Union Bank; an Intercreditor Agreement, dated August 10, 2015, among the Company, Princess Investment and Union Bank; and a Subordination Agreement, dated August 10, 2015, among the Company, Princess Investment and Union Bank. After consideration of FASB ASC 480 “ Distinguishing Liability and Equity Derivatives and Hedging the Company concluded that the warrants issued to Princess Investment should be recorded as an equity instrument. The fair value of the first one million warrants of $130,000 issued with the debt facility at August 10, 2015 and the fair value of the additional two million warrants of $320,000 issued with this debt facility at December 21, 2015 were valued using the Black-Scholes model. The fair value of the warrants was recorded as additional paid in capital and reflected as a debt discount to the face value of the Revolving Line of Credit, which discount is amortized over the term of the Loan and recognized as additional interest costs as amortized. At March 31, 2016, the Company had an outstanding principal balance of approximately $4,127,458 under the Revolving Line of Credit, and approximately $1 ,900,000 remained in available borrowings under the Revolving Line of Credit as of March 31, 2016. March 31, December 31, 201 6 201 5 $4,000,000 revolving line of credit from related party and accrued interest payable per terms under Princess Investment Credit Agreement through maturity date of December 21, 2020; interest at a rate per annum of 11.5% $ 4,127,458 $ 4,011,346 Less: Debt discounts net of related amortization (406,593 ) (428,114 ) Less: Deferred financing costs net of related amortization (85,912 ) (90,460 ) 3,634,953 3,492,772 Less: Current portion - - Revolving line of credit, net of debt discounts, deferred financing costs and current portion $ 3,634,953 $ 3,492,772 Interest expense, net, included on the Company’s Consolidated Statements of Operations and Comprehensive Income is comprised as follows: Three M onths Ended March 31, 2016 2015(1) Revolving credit loan $ - $ 25,039 Term loan payable - 42,985 Revolving line of credit from related party 116,112 - Amortization of deferred financing cost 4,547 26,370 Amortization of debt discounts 21,521 - Total Credit Facilities related interest expense 142,180 94,394 Other interest expense, net 8,467 25 Interest expense , net $ 150,647 $ 94,419 (1) Interest expense related to a retired Debt Facility. Retired Union Bank Credit Facilities On December 31, 2013, the Company entered into a Commercial Credit Agreement (the “Credit Agreement”) with MUFG Union Bank, N.A. (formerly Union Bank, N.A., “Union Bank”). The Credit Agreement initially provided for a 24 month revolving loan commitment and a 36 month term loan. The term loan was extinguished during the quarter ended September 30, 2015, and the revolving loan commitment with Union Bank paid off on December 23, 2015, using proceeds from related party borrowings (See Revolving Line of Credit from Related Party). The revolving loan commitment included available borrowings of up to $3,500,000 (the “Revolving Credit Loan”), consisting of revolving loans and a sublimit of letters of credit not to exceed a maximum aggregate principal amount of $1,000,000. Borrowings under the Revolving Credit Loan initially carried interest at a per annum rate of two and one-half percent (2.50%) in excess of a reference rate (“Reference Rate”), which is an index rate determined by Union Bank from time to time as a means of pricing certain extensions of credit. The Reference Rate was 3.25% as of December 31, 2014. The Credit Agreement initially provided for a term loan in the amount of $5,000,000 (the “Term Loan Payable” and together with the Revolving Credit Loan, the “Union Bank Credit Facilities”). The Term Loan Payable was originally payable in 36 monthly payments of $138,889 beginning January 31, 2014 with interest payable at a per annum rate of two and three-quarters percent (2.75%) in excess of the Reference Rate. The Credit Agreement contained representations and warranties, affirmative, negative and events of default, applicable to the Company and its subsidiaries which were customary for Union Bank Credit Facilities of this type. The Credit Agreement initially contained financial covenants applicable to the Company and its subsidiaries including maintaining a Fixed Charge Coverage Ratio between Adjusted EBITDA and principal and interest payments (as defined in the Credit Agreement) of not less than 1.25:1.00 as of the close of each fiscal quarter and an EBITDA (as defined in the Credit Agreement) of at least $2,750,000 as of the close of each fiscal quarter, for the 12-month period ended as of the last day of the quarter. The Company did not satisfy the previous minimum Fixed Charge Coverage Ratio requirement (1.25:1.00) and the previous minimum EBITDA requirement of $2,750,000 for the 12-month periods ended September 30, 2014 and December 31, 2014, and in connection therewith obtained waivers of such non-compliance from Union Bank for those periods. In exchange for the waivers, the Company paid Union Bank a waiver fee of $10,000, and at December 31, 2014 a prepayment in the amount of $500,000 was made and applied to the principal of the Term Loan Payable and certain provisions of the Credit Agreement were amended. On March 3, 2015, the Credit Agreement was further amended to change various contractual terms as follows: the Fixed Charge Coverage Ratio requirement was reduced for the periods ended March 31, 2015 to 0.70:1.00 and for June 30, 2015 to 1.00:1.00; the minimum EBITDA requirement for the 12-month period ended as of the last day of each of these quarters during 2015 was reduced from $2,750,000 to $1,750,000; the requirement of no incurrence of a net loss after taxes for more than two consecutive fiscal quarters was changed to be effective January 1, 2015; net principal repayments totaling $600,000 in 2015 were added to the Term Loan Payable scheduled payments ($400,000 were paid during the second quarter of 2015 and the remaining $200,000 were paid during the third quarter of 2015), and excluded from the Fixed Charge Coverage Ratio calculation; the interest rate on the Term Loan Payable and Revolving Credit Loan was increased by 1% effective March 1, 2015; and the Company paid a loan modification fee of $50,000, half of which was paid on March 31, 2015 and the other half was paid on June 30, 2015. Additional legal fees were charged by Union Bank during the first quarter of 2015 in the amount of $6,915. The Company did not satisfy the minimum EBITDA requirement for the 12-month period ended June 30, 2015, due primarily to a $715,000 one-time accrual for severance payments to Lonnie D. Schnell, the Company’s former CEO and board member, that was recognized upon separation during the three months ended June 30, 2015. On August 4, 2015, the Company obtained a waiver from Union Bank of this minimum EBITDA requirement non-compliance and paid Union Bank a waiver fee of $25,000 as a condition to the waiver. The payment and performance of all indebtedness and other obligations under the Union Bank Credit Facilities were secured by liens on substantially all of the Company assets pursuant to the terms and conditions of security agreements and guaranties executed by the Company and its principle operating subsidiaries including Talon Technologies, Inc. (U.S. operation) and Tag-It Pacific Limited (Hong Kong operation). On August 10, 2015, the Company entered into an amendment to the Credit Agreement with Union Bank, which provided for the elimination of financial covenants for the remaining term of the Credit Agreement, permitted the Company to incur $3,000,000 of subordinated indebtedness, and required the repayment of the outstanding Term Loan Payable in the principal amount of $1,440,278 plus accrued and unpaid interest by August 31, 2015. In connection with the amendment, the Company incurred approximately $18,000 in legal fees, representing additional financing costs to the Union Bank Credit Facilities. On August 11, 2015, the Company received an advance from Princess Investment, and on August 12, 2015, the Company paid off $1,440,278 in outstanding Term Loan Payable from Union Bank as well as the unpaid interest. Capital Leases The Company has financed purchases of furniture and fixtures through various capital lease obligations; these capital lease obligations bear interest at a rate of 8% per annum. Under these obligations, the Company is required to make monthly payments of principal and interest through May 2019. Capital lease obligations at March 31, 2016 and December 31, 2015 were $77,401 and $82,724, respectively.

Note 8 - Stockholders' Equity

Note 8 - Stockholders' Equity	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 8. Stockholders’ Equity Authorized Common Stock and Preferred Stock On November 8, 2013, the Company’s stockholders approved an amendment to the Company’s Certificate of Incorporation to increase the number of shares of common stock authorized to be issued from 100,000,000 to 300,000,000. At the Company’s 2015 Annual Meeting of Stockholders, the stockholders approved an amendment to the Company’s Certificate of Incorporation to allow for a reverse split of the Company’s outstanding shares of common stock any time prior to the 2016 Annual Meeting authorizing the Board of Directors, when and if the Board of Directors determine that such action is appropriate. The Company’s Certificate of Incorporation presently authorizes the issuance of 3,000,000 shares of Preferred Stock, having a par value of $0.001 per share. No shares of Preferred Stock were outstanding at March 31, 2016 or December 31, 2015.

Note 9 - Stock-based Compensati

Note 9 - Stock-based Compensation	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]	Note 9. Stock-Based Compensation The Company accounts for stock-based awards to employees and directors in accordance with FASB ASC 718, “ Compensation - Stock Compensation Equity-Based Payments to Non-Employees Stock Options and Warrants The Company’s 2008 Stock Incentive Plan initially authorized the issuance of up to 2,500,000 shares of common stock in awards to individuals under the plan. On November 19, 2010, an amendment to the 2008 Stock Incentive Plan increased the authorized shares from 2,500,000 to 4,810,000. On November 8, 2013, the Company’s stockholders approved a further amendment to the 2008 Stock Incentive Plan to increase from 4,810,000 to 15,000,000 the number of shares of common stock that may be issued pursuant to awards under the plan. The Company’s 2007 Stock Plan was approved by the Company’s stockholders in 2007, and replaced the 1997 Stock Plan that had previously authorized the granting of a variety of stock-based incentive awards. The 2007 Stock Plan authorizes up to 2,600,000 shares of common stock for issuance pursuant to awards granted to individuals under the plan. No further awards will be granted under the 2007 Stock Plan. The Board of Directors, who determines the recipients and terms of the awards granted, administers the Company’s stock plans. Awards under the Company’s stock plans are generally granted with an exercise price equal to the average market price of the Company’s stock for the five trading days following the date of approval of the grant. Those option awards generally vest over periods determined by the Board of Directors from immediate to 4 years of continuous service and have 10 year contractual terms. During the three months ended March 31, 2016 and 2015, 4,205,000 and 100,000 options, respectively were granted. As of March 31, 2016, the Company had $819,925 of unamortized stock-based compensation expense related to options issued to employees and directors, which will be recognized over the remaining weighted average period of 3.27 years. As of March 31, 2015, unamortized stock-based compensation expense related to options issued to employees and directors was $644,243, which was to be recognized over the weighted average period of approximately 3.33 years. During the three months ended March 31, 2016, the Company issued warrants to purchase 250,000 shares of the Company’s common stock to an outside services company. The warrants are exercisable immediately upon issuance for a five-year period at an exercise price of $0.14 per share and include a “cashless” exercise provision. The following table summarizes the activity in the Company’s share-based compensation plans and other share-based grants during the three months ended March 31, 2016. Number of Shares Weighted Average Exercise Price Employees and Directors Options outstanding - January 1, 2016 8,435,267 $ 0.18 Granted 4,205,000 $ 0.14 Exercised - $ - Cancelled - $ - Options outstanding – March 31, 2016 12,640,267 $ 0.17 Non Employees Warrants outstanding –January 1, 2016 3,000,000 $ 0.18 Granted 250,000 $ 0.14 Exercised - $ - Cancelled - $ - Warrants outstanding – March 31, 2016 3,250,000 $ 0.18

Note 10 - Income Taxes

Note 10 - Income Taxes	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Income Tax Disclosure [Text Block]	Note 10. Income taxes Provision for income taxes, net, for the three months ended March 31, 2016 was $35,651. Benefit from income taxes, net, for the three months ended March 31, 2015 was $81,015. Current income taxes receivable were associated with foreign and domestic prepayments net of income tax payable, and totaled $6,065 and $1,953 as of March 31, 2016 and December 31, 2015, respectively. Current income taxes payable were principally associated with foreign withholdings, funds transfers, and income tax payable from the Company’s Asia operations. Current income taxes payable as of March 31, 2016 and December 31, 2015 totaled $50,045 and $54,921, respectively, and were included in accrued expenses. Deferred income tax assets, net, totaled $6,008,377 and $6,043,412 as of March 31, 2016 and December 31, 2015, respectively, are included in long term deferred income tax assets, net, and in current deferred income tax assets, net. Deferred income tax liabilities totaled $3,310 and $5,406 as of March 31, 2016 and December 31, 2015, respectively.

Note 11 - Commitments and Conti

Note 11 - Commitments and Contingencies	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 11. Commitments and Contingencies The Company currently has pending claims and complaints that arise in the ordinary course of the Company’s business. The Company believes that it has meritorious defenses to these claims and that the claims are either covered by insurance or would not have a material effect on the Company’s consolidated financial position or results of operations if adversely determined against the Company. In November 2002, the FASB issued Topics of the FASB ASC 460-10, “ Guarantees Related Party Disclosures ● In accordance with the bylaws of the Company, and indemnification agreements entered into with the members of the Board of Directors and executive officers, the Company’s officers and directors are indemnified for certain events or occurrences arising as a result of the officer or director serving in such capacity. The term of the indemnification period is for the lifetime of the officer or director. The maximum potential amount of future payments the Company could be required to make under the indemnification provisions of its bylaws and indemnification agreements is unlimited. However, the Company has a director and officer liability insurance policy that reduces its exposure and enables it to recover a portion of any future amounts paid. As a result of its insurance policy coverage, the Company believes the estimated fair value of the indemnification provisions of its bylaws and indemnification agreements is minimal and therefore, the Company has not recorded any related liabilities. ● The Company enters into indemnification provisions under its agreements with investors and its agreements with other parties in the normal course of business, typically with suppliers, customers and landlords. Under these provisions, the Company generally indemnifies and holds harmless the indemnified party for losses suffered or incurred by the indemnified party as a result of the Company’s activities or, in some cases, as a result of the indemnified party’s activities under the agreement. These indemnification provisions often include indemnifications relating to representations made by the Company with regard to intellectual property rights, and generally survive termination of the underlying agreement. The maximum potential amount of future payments the Company could be required to make under these indemnification provisions is unlimited. The Company has not incurred material costs to defend lawsuits or settle claims related to these indemnification agreements. As a result, the Company believes the estimated fair value of these agreements is minimal and accordingly, the Company has not recorded any related liabilities.

Note 12 - Segment Reporting and

Note 12 - Segment Reporting and Geographic Information	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 12. Segment Reporting and Geographic Information The Company manufactures and distributes a full range of zipper (Talon Zipper) and trim (Talon Trim) components, which includes stretch technology component products, to specialty retailers and mass merchandisers. The Company’s organization is based on operating divisions representing these major product lines, and the Company’s Chief Operating Decision Makers (“CODM”, identified as the Company’s executive officers with the oversight of Talon’s Board of Directors) use these divisions to assess performance, allocate resources and make other operating decisions. During 2015, the Company realigned how it reports its operating segments to better conform to the way management views the business. In making this determination, the Company examined how the CODM evaluates the performance of the Company and as such reconsidered the aggregation of reporting segments in accordance with the aggregation criteria under ASC 280, Segment Reporting As a result of this assessment, the Company has identified and realigned the reporting of its operating segments into two reporting segments (Talon Zipper and Talon Trim) and has reclassified prior period results to reflect these product categories. The Tekfit operating segment results are now aggregated and reported as part of the Trim operating segment. Information about the assets for each of the reportable segments is not maintained by the Company and therefore is not reviewed by the CODM as assets are reviewed and assessed on a consolidated basis. As a result, information about the assets for each of the reportable segments is not included on the Company’s segment reporting footnote. As the Company evolves, adjustments may be made as to how the Company allocates resources and analyzes performance, which can result in a change to these segments. The net revenues and operating margins for the two reporting segments are as follows: Three Months ended March 31 , 201 6 Talon Zipper Talon Trim Talon Consolidated Net sales $ 4,276,384 $ 6,988,248 $ 11,264,632 Cost of goods sold 3,016,409 4,083,964 7,100,373 Gross profit $ 1,259,975 $ 2,904,284 4,164,259 Operating expenses 3,928,844 Income from operations $ 235,415 Three Months ended March 31 , 201 5 Talon Zipper Talon Trim Talon Consolidated Net sales $ 5,405,615 $ 5,402,807 $ 10,808,422 Cost of goods sold 3,912,363 3,332,152 7,244,515 Gross profit $ 1,493,252 $ 2,070,655 3,563,907 Operating expenses 3,709,726 Loss from operations $ (145,819 ) The Company distributes its products internationally and has reporting requirements based on geographic regions. Revenues are attributed to countries based upon customer delivery locations and the net book value of long-lived assets (consisting of property and equipment and intangibles) is attributed to countries based on the location of the assets, as follows: Sales: Three Months Ended March 31, Country / Region 201 6 2015 United States $ 1,014,567 $ 734,145 China 2,701,114 2,792,383 Hong Kong 2,812,145 2,301,834 Bangladesh 1,049,298 1,069,054 Vietnam 927,932 441,412 India 513,604 609,118 Other 2,245,972 2,860,476 Total $ 11,264,632 $ 10,808,422 March 31 , December 31, 201 6 2015 Long-lived Assets: United States $ 4,828,533 $ 4,793,042 China 203,093 213,887 Hong Kong 75,569 88,912 Total $ 5,107,195 $ 5,095,841

Note 13 - Subsequent Events

Note 13 - Subsequent Events	3 Months Ended
	Mar. 31, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	Note 13. Subsequent Events The Company evaluated subsequent events after the balance sheet date of March 31, 2016 through the date of the filing of this report, and determined that there were no reportable subsequent events.

Significant Accounting Policies

Significant Accounting Policies (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Receivables, Trade and Other Accounts Receivable, Allowance for Doubtful Accounts, Policy [Policy Text Block]	Allowance for Accounts Receivable Doubtful Accounts The Company is required to make judgments as to the collectibility of accounts receivable based on established aging policy, historical experience and future expectations. The allowances for doubtful accounts represent allowances for customer trade accounts that are estimated to be partially or entirely uncollectible. These allowances are used to reduce gross trade receivables to their net realizable value. The Company records these allowances based on estimates related to the following factors: (i) customer specific allowances; (ii) amounts based upon an aging schedule; and (iii) an estimated amount, based on the Company’s historical experience, for issues not yet identified. Bad debt expense (recoveries), net for the three months ended March 31, 2016 and 2015 were $(252) and $(5,047), respectively.
Fair Value Measurement, Policy [Policy Text Block]	Fair Value Measurements Fair value is defined as an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or a liability. As a basis for considering such assumptions, the guidance under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, “ Fair Value Measurements and Disclosures Level 1 - Observable inputs that reflect quoted prices (unadjusted) for identical assets or liabilities in active markets. Level 2 - Includes other inputs that are directly or indirectly observable in the marketplace. Level 3 - Unobservable inputs which are supported by little or no market activity. The fair value hierarchy also requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The Company’s financial instruments include cash and cash equivalents, accounts receivable, other assets, accounts payable, accrued expenses, revolving line of credit from related party, capital lease obligations and other liabilities. The book value of the financial instruments is representative of their fair values. In accordance with this guidance, the Company measures its cash equivalents at fair value. The Company’s cash equivalents are classified within Level 1. Cash equivalents are valued primarily using quoted market prices utilizing market observable inputs. At March 31, 2016 and December 31, 2015, cash equivalents consisted of money market funds measured at fair value on a recurring basis; fair value of the Company’s money market funds was approximately $329,000 and $860,000, respectively.
Goodwill and Intangible Assets, Intangible Assets, Policy [Policy Text Block]	Intangible Assets Intangible assets consist of the Talo Intangibles - Goodwill and Other Property, Plant and Equipment The Company applies Accounting Standards Update (“ASU”) 2012-02, “ Intangibles – Goodwill and Other - Testing Indefinite-lived Intangible Assets for Impairment From time to time the Company makes investments in product and technical opportunities that are complimentary to or enhancements to its apparel accessories business. During the three months ended March 31, 2016, the Company made no investments in property rights complimentary to the Company’s Talon Zipper products and in 2015, the Company invested $5,765, in the acquisition of intellectual property rights complimentary to the Company’s Talon Zipper products. As of March 31, 2016 and December 31, 2015 the Company had accumulated investments of $73,005, for intellectual property rights complimentary to the Company’s Talon Zipper products, which were not yet in service. Intangible assets as of March 31, 2016 and December 31, 2015 are as follows: March 31 , December 31, 201 6 201 5 Tradename - Talon trademark $ 4,110,751 $ 4,110,751 Intellectual property rights 251,727 251,727 Less: Accumulated amortization (10 to 17 years) (51,801 ) (48,530 ) Intellectual property rights, net 199,926 203,197 Intangible assets, net $ 4,310,677 $ 4,313,948 Amortization expense for intangible assets was $3,271 for the three months ended March 31, 2016 and 2015.
Cost of Sales, Policy [Policy Text Block]	Classification of Expenses Costs of Goods Sold
Selling, General and Administrative Expenses, Policy [Policy Text Block]	Sales and Marketing Expenses – General and Administrative Expenses
Interest Expense, Policy [Policy Text Block]	Interest Expense, net
Basis of Accounting, Policy [Policy Text Block]	Foreign Currency Translation The Company has operations and holds assets in various foreign countries. The local currency is the functional currency for the Company’s subsidiaries in China and India. Assets and liabilities are translated at end-of-period exchange rates while revenues and expenses are translated at the average exchange rates in effect during the period. Equity is translated at historical rates and the resulting cumulative translation adjustments are included as a component of accumulated other comprehensive income (loss) until the translation adjustments are realized. Included in accumulated other comprehensive income was a cumulative foreign currency translation gain of $101,891 and $102,389 as of March 31, 2016 and December 31, 2015, respectively.
Comprehensive Income, Policy [Policy Text Block]	Comprehensive Income (loss) Comprehensive income (loss) consists of net income (loss) and unrealized income (loss) on foreign currency translation adjustments. The foreign currency translation adjustment represents the net currency translation gains and losses related to our China and India subsidiaries, which have not been reflected in the net income for the periods presented. The Company reports comprehensive income (loss) in accordance with Topic 220 “ Comprehensive Income” Presentation of Comprehensive Income
Use of Estimates, Policy [Policy Text Block]	Use of Estimates The preparation of consolidated financial statements in conformity with generally accepted accounting principles 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 reported amounts of revenues and expenses during the year. The accounting estimates that require the Company’s most significant, difficult and subjective judgments include the valuation allowance for accounts receivable and inventory, the assessment of recoverability of long-lived assets and intangible assets, stock-based compensation and the recognition and measurement of current and deferred income taxes (including the measurement of uncertain tax positions). Actual results could differ materially from the Company’s estimates.
Reclassification, Policy [Policy Text Block]	Presentation In order to facilitate the comparison of financial information, certain amounts reported in the prior year have been reclassified to conform to the current year presentation.

Note 2 - Summary of Significa20

Note 2 - Summary of Significant Accounting Policies (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Intangible Assets and Goodwill [Table Text Block]	March 31 , December 31, 201 6 201 5 Tradename - Talon trademark $ 4,110,751 $ 4,110,751 Intellectual property rights 251,727 251,727 Less: Accumulated amortization (10 to 17 years) (51,801 ) (48,530 ) Intellectual property rights, net 199,926 203,197 Intangible assets, net $ 4,310,677 $ 4,313,948

Note 4 - Net Income (Loss) Pe21

Note 4 - Net Income (Loss) Per Share (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Net income (loss) Shares Per Share Amount Three months ended March 31, 2016: Basic net income per share- Net income $ 49,117 92,267,831 $ 0.00 Effect of Dilutive Securities - Options - 1,205,860 - Diluted net income per share $ 49,117 93,473,691 $ 0.00 Three months ended March 31, 2015: Basic net loss per share- Net loss $ (159,223 ) 92,267,831 $ (0.00 ) Effect of Dilutive Securities - Options - - - Diluted net loss per share $ (159,223 ) 92,267,831 $ (0.00 )

Note 6 - Inventories (Tables)

Note 6 - Inventories (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	March 31 , December 31, 201 6 201 5 Finished goods $ 848,199 $ 724,372 Less: Reserves (64,666 ) (69,012 ) Total inventories $ 783,533 $ 655,360

Note 7 - Credit Facilities, L23

Note 7 - Credit Facilities, Long Term Obligations and Related Party Transactions (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Long-term Debt Instruments [Table Text Block]	March 31, December 31, 201 6 201 5 $4,000,000 revolving line of credit from related party and accrued interest payable per terms under Princess Investment Credit Agreement through maturity date of December 21, 2020; interest at a rate per annum of 11.5% $ 4,127,458 $ 4,011,346 Less: Debt discounts net of related amortization (406,593 ) (428,114 ) Less: Deferred financing costs net of related amortization (85,912 ) (90,460 ) 3,634,953 3,492,772 Less: Current portion - - Revolving line of credit, net of debt discounts, deferred financing costs and current portion $ 3,634,953 $ 3,492,772
Interest Income and Interest Expense Disclosure [Table Text Block]	Three M onths Ended March 31, 2016 2015(1) Revolving credit loan $ - $ 25,039 Term loan payable - 42,985 Revolving line of credit from related party 116,112 - Amortization of deferred financing cost 4,547 26,370 Amortization of debt discounts 21,521 - Total Credit Facilities related interest expense 142,180 94,394 Other interest expense, net 8,467 25 Interest expense , net $ 150,647 $ 94,419

Note 9 - Stock-based Compensa24

Note 9 - Stock-based Compensation (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block]	Number of Shares Weighted Average Exercise Price Employees and Directors Options outstanding - January 1, 2016 8,435,267 $ 0.18 Granted 4,205,000 $ 0.14 Exercised - $ - Cancelled - $ - Options outstanding – March 31, 2016 12,640,267 $ 0.17 Non Employees Warrants outstanding –January 1, 2016 3,000,000 $ 0.18 Granted 250,000 $ 0.14 Exercised - $ - Cancelled - $ - Warrants outstanding – March 31, 2016 3,250,000 $ 0.18

Note 12 - Segment Reporting a25

Note 12 - Segment Reporting and Geographic Information (Tables)	3 Months Ended
	Mar. 31, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months ended March 31 , 201 6 Talon Zipper Talon Trim Talon Consolidated Net sales $ 4,276,384 $ 6,988,248 $ 11,264,632 Cost of goods sold 3,016,409 4,083,964 7,100,373 Gross profit $ 1,259,975 $ 2,904,284 4,164,259 Operating expenses 3,928,844 Income from operations $ 235,415 Three Months ended March 31 , 201 5 Talon Zipper Talon Trim Talon Consolidated Net sales $ 5,405,615 $ 5,402,807 $ 10,808,422 Cost of goods sold 3,912,363 3,332,152 7,244,515 Gross profit $ 1,493,252 $ 2,070,655 3,563,907 Operating expenses 3,709,726 Loss from operations $ (145,819 )
Revenue from External Customers by Geographic Areas [Table Text Block]	Sales: Three Months Ended March 31, Country / Region 201 6 2015 United States $ 1,014,567 $ 734,145 China 2,701,114 2,792,383 Hong Kong 2,812,145 2,301,834 Bangladesh 1,049,298 1,069,054 Vietnam 927,932 441,412 India 513,604 609,118 Other 2,245,972 2,860,476 Total $ 11,264,632 $ 10,808,422
Long-lived Assets by Geographic Areas [Table Text Block]	March 31 , December 31, 201 6 2015 Long-lived Assets: United States $ 4,828,533 $ 4,793,042 China 203,093 213,887 Hong Kong 75,569 88,912 Total $ 5,107,195 $ 5,095,841

Note 2 - Summary of Significa26

Note 2 - Summary of Significant Accounting Policies (Details Textual) - USD ($)	3 Months Ended		12 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Intellectual Property [Member]
Payments to Acquire Intangible Assets	$ 0		$ 5,765
Finite-Lived Intangible Assets, Gross	$ 73,005		73,005
Goodwill and Intangible Asset Impairment			0
Payments to Acquire Intangible Assets		$ 5,765
Finite-Lived Intangible Assets, Gross	$ 251,727		251,727
Amortization of Intangible Assets	3,271	3,271
Interest Income, Other	1,000	1,000
Provision for Doubtful Accounts	(252)	(5,047)
Cash and Cash Equivalents, Fair Value Disclosure	329,000		860,000
Interest Expense	151,083	$ 94,837
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment, Net of Tax	$ 101,891		$ 102,389

Note 2 - Intangible Assets (Det

Note 2 - Intangible Assets (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Tradename - Talon trademark	$ 4,110,751	$ 4,110,751
Finite-Lived Intangible Assets, Gross	251,727	251,727
Less: Accumulated amortization (10 to 17 years)	(51,801)	(48,530)
Intellectual property rights, net	199,926	203,197
Intangible assets, net	$ 4,310,677	$ 4,313,948

Note 2 - Intangible Assets (D28

Note 2 - Intangible Assets (Details) (Parentheticals)	3 Months Ended	12 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Minimum [Member]
Finite Lived Intangible Assets, Useful Life	10 years	10 years
Maximum [Member]
Finite Lived Intangible Assets, Useful Life	17 years	17 years

Note 4 - Net Income (Loss) Pe29

Note 4 - Net Income (Loss) Per Share (Details Textual) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Employee And Board Member Stock Options [Member] | Stock Compensation Plan [Member]
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements	9,748,600
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 0.14
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	$ 1.33
Employee And Board Member Stock Options [Member]
Incremental Common Shares Attributable to Dilutive Effect of Equity Unit Purchase Agreements	1,205,860	9,672,767
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Lower Range Limit	$ 0.04	$ 0.04
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Upper Range Limit	0.11	$ 3.14
Warrant [Member] | Minimum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	0.14
Warrant [Member] | Maximum [Member]
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.18
Warrant [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	3,250,000

Note 4 - Reconciliation of the

Note 4 - Reconciliation of the Numerators and Denominators of the Basic and Diluted Net Income/Loss Per Share (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net income (loss) basic	$ 49,117	$ (159,223)
Shares basic (in shares)	92,267,831	92,267,831
Per share amount basic (in dollars per share)	$ 0	$ 0
Effect of Dilutive Securities -
Shares diluted (in shares)	1,205,860
Diluted net income per share	$ 49,117	$ (159,223)
Weighted average number of common shares outstanding - Diluted (in shares)	93,473,691	92,267,831
Diluted net income per share (in dollars per share)	$ 0	$ 0
Net income (loss) basic	$ 49,117	$ (159,223)
Shares basic (in shares)	92,267,831	92,267,831
Per share amount basic (in dollars per share)	$ 0	$ 0

Note 5 - Accounts Receivable (D

Note 5 - Accounts Receivable (Details Textual) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Allowance for Doubtful Accounts Receivable, Current	$ 57,465	$ 67,217

Note 6 - Inventories (Details)

Note 6 - Inventories (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Finished goods	$ 848,199	$ 724,372
Less: Reserves	(64,666)	(69,012)
Total inventories	$ 783,533	$ 655,360

Note 7 - Credit Facilities, L33

Note 7 - Credit Facilities, Long Term Obligations and Related Party Transactions (Details Textual)	Dec. 23, 2015USD ($)	Aug. 12, 2015USD ($)	Aug. 11, 2015USD ($)	Aug. 10, 2015USD ($)$ / sharesshares	Aug. 04, 2015USD ($)	Mar. 03, 2015USD ($)	Mar. 01, 2015	Dec. 31, 2014USD ($)	Dec. 31, 2013USD ($)	Mar. 31, 2016USD ($)$ / sharesshares	Sep. 30, 2015USD ($)	Jun. 30, 2015USD ($)	Mar. 31, 2015USD ($)	Dec. 31, 2015USD ($)	Sep. 30, 2015USD ($)	Mar. 31, 2016USD ($)$ / sharesshares	Dec. 31, 2014USD ($)	Dec. 21, 2015USD ($)shares	Aug. 31, 2015USD ($)	Sep. 30, 2014USD ($)
Princess Investment Holdings Inc [Member] | Permission From Union Bank Lender To Borrow From Princess Investment Holdings [Member]
Subordinated Debt Maximum Indebtedness				$ 3,000,000
Princess Investment Holdings Inc [Member] | Additional Advance [Member]
Proceeds from Related Party Debt														$ 500,000
Princess Investment Holdings Inc [Member] | Paid Upon Maturity [Member] | Loan Fee [Member]
Payments of Financing Costs										$ 60,000
Princess Investment Holdings Inc [Member]
Long Term Debt Maturities, Monthly Repayments of Principal in Next Twelve Months										0						$ 0
Subordinated Debt Maximum Indebtedness										6,000,000						$ 6,000,000
Debt Instrument, Interest Rate During Period				12.50%												11.50%
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares				1,000,000
ClassOfWarrantOrRightWarrantTerm				5 years
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares				$ 0.18
Proceeds from Related Party Debt			$ 1,500,000
Long-term Debt, Gross														2,000,000
Financial Covenant Loss after Taxes Maximum										1,000,000						$ 1,000,000
Long Term Debt Maturities Monthly Repayments of Principal in Year Two										25,000						25,000
Long Term Debt Maturities Monthly Repayments of Principal in Year Three										35,000						35,000
Long Term Debt Maturities Monthly Repayments of Principal in Year Four										$ 50,000						$ 50,000
Union Bank [Member] | Term Loan Payable [Member] | Loan Modification Fee [Member]
Payments of Financing Costs						$ 50,000
Union Bank [Member] | Term Loan Payable [Member] | Legal fees [Member]
Payments of Financing Costs				$ 18,000
Union Bank [Member] | Term Loan Payable [Member] | Revolving Credit Facility [Member] | Prime Rate [Member]
Debt Instrument, Interest Rate, Stated Percentage								3.25%									3.25%
Union Bank [Member] | Term Loan Payable [Member] | Revolving Credit Facility [Member]
Debt Instrument, Interest Rate, Increase (Decrease)							1.00%
Union Bank [Member] | Term Loan Payable [Member] | Amended Principal Repayments [Member]
Repayments of Notes Payable											$ 200,000	$ 400,000			$ 600,000
Union Bank [Member] | Term Loan Payable [Member]
Repayments of Notes Payable		$ 1,440,278						$ 500,000
Debt Instrument, Term									3 years
Debt Instrument, Basis Spread on Variable Rate									(2.75%)
Debt Instrument, Face Amount									$ 5,000,000
Debt Instrument, Periodic Payment, Principal									$ 138,889
Notes Payable to Bank																			$ 1,440,278
Union Bank [Member] | Waiver Fees [Member]
Payments of Financing Costs					$ 25,000												$ 10,000
Union Bank [Member] | Legal fees [Member]
Payments of Financing Costs													$ 6,915
Union Bank [Member] | Princess Investment Holdings Inc [Member]
Debt Instrument, Periodic Payment	$ 1,622,000
Union Bank [Member] | Revolving Credit Facility [Member]
Debt Instrument, Term									2 years
Line of Credit Facility, Maximum Borrowing Capacity									$ 3,500,000
Proceeds from Lines of Credit									$ 1,000,000
Debt Instrument, Basis Spread on Variable Rate									(2.50%)
Union Bank [Member]
Debt Instrument Covenant Minimum Fixed Charge, Coverage Ratio								1.25				1	0.7				1.25			1.25
Debt Instrument Covenant Minimum, EBITDA								$ 2,750,000					$ 1,750,000				$ 2,750,000			$ 2,750,000
Term Loan Payable [Member]
Repayments of Notes Payable													354,167
Employee Severance Payment [Member] | Former CEO And Board Member [Member]
Officers' Compensation												$ 715,000
Princess Investment Holdings Inc [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | shares										2,000,000						2,000,000
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ / shares										$ 0.18						$ 0.18
Proceeds from Related Party Debt	$ 2,000,000
Class of Warrant or Right, Outstanding | shares				1,000,000														2,000,000
Warrants and Rights Outstanding				$ 130,000														$ 320,000
Line of Credit [Member] | Princess Investment Holdings Inc [Member]
Long-term Line of Credit										$ 4,127,458				$ 4,011,346		$ 4,127,458
Debt Instrument, Interest Rate, Stated Percentage										11.50%				11.50%		11.50%
Debt Instrument, Face Amount										$ 4,000,000				$ 4,000,000		$ 4,000,000
Princess Investment Holdings Inc [Member]
Line of Credit Facility, Remaining Borrowing Capacity										$ 1,900,000						$ 1,900,000
Payments of Financing Costs													56,915
Proceeds from Lines of Credit													$ 200,000
Capital Lease Obligation Interest Rate										8.00%						8.00%
Capital Lease Obligations										$ 77,401				$ 82,724		$ 77,401

Note 7 - Revolving Line of Cred

Note 7 - Revolving Line of Credit (Details) - Line of Credit [Member] - Princess Investment Holdings Inc [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Long-term Line of Credit	$ 4,127,458	$ 4,011,346
Less: Debt discounts net of related amortization	(406,593)	(428,114)
Less: Deferred financing costs net of related amortization	(85,912)	(90,460)
	$ 3,634,953	$ 3,492,772
Less: Current portion

Note 7 - Revolving Line of Cr35

Note 7 - Revolving Line of Credit (Details) (Parentheticals) - Line of Credit [Member] - Princess Investment Holdings Inc [Member] - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Debt Instrument, Face Amount	$ 4,000,000	$ 4,000,000
Debt Instrument, Interest Rate, Stated Percentage	11.50%	11.50%

Note 7 - Interest Expense Inclu

Note 7 - Interest Expense Included in Consolidated Statements of Operations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revolving Credit Facility [Member]
Debt Interest Expense		$ 25,039
Princess Investment Holdings Inc [Member]
Debt Interest Expense		$ 42,985
Term Loan Payable [Member]
Debt Interest Expense	$ 116,112
Miscellaneous [Member]
Interest expense , net	8,467	$ 25
Amortization of deferred financing cost	4,547	$ 26,370
Amortization of debt discounts	21,521
Total Credit Facilities related interest expense	142,180	$ 94,394
Interest expense , net	$ 150,647	$ 94,419

Note 8 - Stockholders' Equity (

Note 8 - Stockholders' Equity (Details Textual) - $ / shares	Mar. 31, 2016	Dec. 31, 2015	Nov. 08, 2013	Jul. 11, 2013
Preferred Stock, Shares Outstanding	0	0
Common Stock, Shares Authorized	300,000,000	300,000,000	300,000,000	100,000,000
Preferred Stock, Shares Authorized	3,000,000
Preferred Stock, Par or Stated Value Per Share	$ 0.001

Note 9 - Stock-based Compensa38

Note 9 - Stock-based Compensation (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Nov. 08, 2013	Nov. 19, 2010	Nov. 18, 2010
2008 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized			15,000,000	4,810,000	2,500,000
2007 Stock Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized	2,600,000
The 2007 and 2008 Stock Incentive Plans [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term	10 years
Options Issued To Employees And Directors [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	4,205,000	100,000
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized	$ 819,925	$ 644,243
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition	3 years 98 days	3 years 120 days
Princess Investment Warrant [Member]
Class of Warrant or Right, Number of Securities Called by Warrants or Rights	250,000
ClassOfWarrantOrRightWarrantTerm	5 years
Class of Warrant or Right, Exercise Price of Warrants or Rights	$ 0.14

Note 9 - Stock Options (Details

Note 9 - Stock Options (Details) - $ / shares	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Options Issued To Employees And Directors [Member] | Non-Employee [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	250,000
Granted, weighted average exercise price (in dollars per share)	$ 0.14
Options Issued To Employees And Directors [Member]
Options outstanding (in shares)	8,435,267
Options outstanding, weighted average exercise price (in dollars per share)	$ 0.18
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross	4,205,000	100,000
Granted, weighted average exercise price (in dollars per share)	$ 0.14
Options outstanding (in shares)	12,640,267
Options outstanding, weighted average exercise price (in dollars per share)	$ 0.17
Princess Investment Warrant [Member] | Non-Employee [Member]
Warrants outstanding (in shares)	3,000,000
Warrants outstanding, weighted average exercise price (in dollars per share)	$ 0.18
Warrants outstanding (in shares)	3,250,000
Warrants outstanding, weighted average exercise price (in dollars per share)	$ 0.18
Princess Investment Warrant [Member]
Warrants outstanding, weighted average exercise price (in dollars per share)	$ 0.14

Note 10 - Income Taxes (Details

Note 10 - Income Taxes (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Prepaid Expenses and Other Current Assets [Member]
Income Taxes Receivable	$ 6,065		$ 1,953
Accrued Expenses [Member]
Accrued Income Taxes, Current	50,045		54,921
Income Tax Expense (Benefit)	35,651	$ (81,015)
Deferred Tax Assets, Net of Valuation Allowance	6,008,377		6,043,412
Deferred Tax Liabilities, Net, Noncurrent	$ 3,310		$ 5,406

Note 12 - Segment Reporting a41

Note 12 - Segment Reporting and Geographic Information (Details Textual)	3 Months Ended
	Mar. 31, 2016
Number of Reportable Segments	2

Note 12 - Net Revenues and Oper

Note 12 - Net Revenues and Operating Margins (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Talon Zippers [Member] | Operating Segments [Member]
Net sales	$ 4,276,384	$ 5,405,615
Cost of goods sold	3,016,409	3,912,363
Gross profit	1,259,975	1,493,252
Talon Trim [Member] | Operating Segments [Member]
Net sales	6,988,248	5,402,807
Cost of goods sold	4,083,964	3,332,152
Gross profit	2,904,284	2,070,655
Talon Tekfit [Member] | Operating Segments [Member]
Gross profit		3,563,907
Operating Segments [Member]
Net sales	11,264,632	10,808,422
Cost of goods sold	7,100,373	7,244,515
Gross profit	4,164,259
Operating expenses	3,928,844	3,709,726
Income (loss) from operations	235,415	(145,819)
Net sales	11,264,632	10,808,422
Cost of goods sold	7,100,373	7,244,515
Gross profit	4,164,259	3,563,907
Operating expenses	3,928,844	3,709,726
Income (loss) from operations	$ 235,415	$ (145,819)

Note 12 - Revenues by Delivery

Note 12 - Revenues by Delivery Locations (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Geography Eliminations [Member] | UNITED STATES
Net sales	$ 1,014,567	$ 734,145
Geography Eliminations [Member] | CHINA
Net sales	2,701,114	2,792,383
Geography Eliminations [Member] | HONG KONG
Net sales	2,812,145	2,301,834
Geography Eliminations [Member] | BANGLADESH
Net sales	1,049,298	1,069,054
Geography Eliminations [Member] | VIET NAM
Net sales	927,932	441,412
Geography Eliminations [Member] | INDIA
Net sales	513,604	609,118
Geography Eliminations [Member] | Other Geographical Area [Member]
Net sales	2,245,972	2,860,476
Net sales	$ 11,264,632	$ 10,808,422

Note 12 - Long-lived Assets By

Note 12 - Long-lived Assets By Location (Details) - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Geography Eliminations [Member] | UNITED STATES
Long-lived assets - geographical	$ 4,828,533	$ 4,793,042
Geography Eliminations [Member] | CHINA
Long-lived assets - geographical	203,093	213,887
Geography Eliminations [Member] | HONG KONG
Long-lived assets - geographical	75,569	88,912
Long-lived assets - geographical	$ 5,107,195	$ 5,095,841