Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 05, 2017 | |
Document and Entity Information: | ||
Entity Registrant Name | Profire Energy Inc | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2017 | |
Trading Symbol | pfie | |
Amendment Flag | false | |
Entity Central Index Key | 1,289,636 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 50,221,054 | |
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 | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Entity Incorporation, Date of Incorporation | May 5, 2003 | |
Entity Incorporation, State Country Name | Nevada |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 10,459,559 | $ 9,316,036 |
Accounts receivable, net | 5,365,159 | 5,633,802 |
Inventories, net | 8,024,561 | 7,839,503 |
Income tax receivable | 320,717 | 180,981 |
Short term investments | 2,221,937 | 2,965,536 |
Investments - other | 3,000,000 | 2,250,000 |
Prepaid expenses & other current assets | 376,897 | 410,558 |
Total Current Assets | 29,768,830 | 28,596,416 |
LONG-TERM ASSETS | ||
Deferred tax asset | 110,461 | 60,940 |
Long-term investments | 6,035,291 | 5,504,997 |
PROPERTY AND EQUIPMENT, net | 7,259,078 | 7,458,723 |
Goodwill | 997,701 | 997,701 |
Intangible assets, net | 486,190 | 490,082 |
Total Long-Term Assets | 14,888,721 | 14,512,443 |
TOTAL ASSETS | 44,657,551 | 43,108,859 |
CURRENT LIABILITIES | ||
Accounts payable | 1,453,726 | 1,220,478 |
Accrued vacation | 177,321 | 154,307 |
Accrued liabilities | 293,772 | 284,214 |
Income taxes payable | 770,529 | 61,543 |
Total current liabilities | 2,695,348 | 1,720,542 |
TOTAL LIABILITIES | 2,695,348 | 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: 53,656,961 issued and 50,539,709 outstanding at March 31, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016 | 53,656 | 53,582 |
Treasury stock, at cost | (3,901,709) | (3,582,805) |
Additional paid-in capital | 26,810,227 | 26,800,298 |
Accumulated other comprehensive loss | (2,699,342) | (2,810,743) |
Retained earnings | 21,699,371 | 20,927,985 |
Total Stockholders' Equity | 41,962,203 | 41,388,317 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 44,657,551 | $ 43,108,859 |
CONDENSED CONSOLIDATED BALANCE3
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL - $ / shares | Mar. 31, 2017 | Dec. 31, 2016 |
CONDENSED CONSOLIDATED BALANCE SHEETS PARENTHETICAL | ||
Preferred stock par value | $ 0.001 | $ 0.001 |
Preferred stock shares authorized | 10,000,000 | 10,000,000 |
Preferred stock shares issued | ||
Preferred stock shares outstanding | ||
Common stock par value | $ 0.001 | $ 0.001 |
Common stock shares authorized | 100,000,000 | 100,000,000 |
Common stock shares issued | 53,656,961 | 53,582,250 |
Common stock shares outstanding | 50,539,709 | 50,705,933 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME (LOSS) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
REVENUES | ||
Sales of goods, net | $ 7,292,228 | $ 3,972,924 |
Sales of services, net | 532,267 | 570,730 |
Total Revenues | 7,824,495 | 4,543,654 |
COST OF SALES | ||
Cost of goods sold-product | 3,055,300 | 1,780,566 |
Cost of goods sold-services | 402,022 | 463,193 |
Total Cost of Goods Sold | 3,457,322 | 2,243,759 |
GROSS PROFIT | 4,367,173 | 2,299,895 |
OPERATING EXPENSES | ||
General and administrative expenses | 2,948,089 | 2,670,101 |
Research and development | 198,966 | 153,522 |
Depreciation and amortization expense | 149,076 | 142,538 |
Total Operating Expenses | 3,296,131 | 2,966,161 |
INCOME (LOSS) FROM OPERATIONS | 1,071,042 | (666,265) |
OTHER INCOME (EXPENSE) | ||
Gain on sale of fixed assets | 2,101 | 887 |
Other expense | (5,414) | (276,313) |
Interest income | 31,278 | 5,421 |
Total Other Income (Expense) | 27,965 | (270,005) |
NET INCOME (LOSS) BEFORE INCOME TAXES | 1,099,007 | (936,270) |
INCOME TAX EXPENSE (BENEFIT) | 498,936 | (171,654) |
NET INCOME (LOSS) | 600,071 | (764,617) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation gain (loss) | 75,113 | (840,190) |
Unrealized gains on investments | 36,288 | 0 |
Total Other Comprehensive Income (Loss) | 111,401 | (840,190) |
TOTAL COMPREHENSIVE INCOME (LOSS) | $ 711,472 | $ (1,604,806) |
BASIC EARNINGS (LOSS) PER SHARE | $ 0.01 | $ (0.01) |
FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ 0.01 | $ (0.01) |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 50,632,275 | 53,243,151 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 51,287,405 | 53,243,151 |
CONDENSED CONSOLIDATED STATEME5
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
OPERATING ACTIVITIES | ||
Net Income (Loss) | $ 600,071 | $ (764,617) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 237,116 | 259,789 |
Gain on sale of fixed assets | (2,101) | (887) |
Bad debt expense | 45,313 | 38,940 |
Stock options issued for services | 181,318 | 12,521 |
Changes in operating assets and liabilities: | ||
Changes in accounts receivable | 249,844 | 2,431,450 |
Changes in income taxes receivable/payable | 568,065 | (207,514) |
Changes in inventories | (399,410) | 16,042 |
Changes in prepaid expenses | 33,698 | 28,512 |
Changes in deferred tax asset/liability | (49,520) | 217,464 |
Changes in accounts payable and accrued liabilities | 500,552 | (478,844) |
Net Cash Provided by Operating Activities | 1,964,946 | 1,552,856 |
INVESTING ACTIVITIES | ||
Proceeds from sale of equipment | 30,451 | 42,117 |
Purchase of investments | (500,408) | |
Purchase of fixed assets | (52,720) | 0 |
Net Cash Provided by (Used in) Investing Activities | (522,677) | 42,117 |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (99) | |
Purchase of Treasury stock | (318,904) | |
Net Cash Used in Financing Activities | (318,904) | (99) |
Effect of exchange rate changes on cash | 20,158 | 416,220 |
NET INCREASE IN CASH | 1,143,523 | 2,011,094 |
CASH AT BEGINNING OF PERIOD | 9,316,036 | 19,281,501 |
CASH AT END OF PERIOD | 10,459,559 | 21,292,595 |
CASH PAID FOR: | ||
Interest | ||
Income taxes | $ 78 | $ 0 |
Note 1 - Condensed Financial St
Note 1 - Condensed Financial Statements | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 1 - Condensed Financial Statements | NOTE 1 - CONDENSED FINANCIAL STATEMENTS Except where the context otherwise requires, references herein to the Company are to Profire Energy, Inc. and its wholly owned subsidiary, taken together. The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments, except for the adoption of ASU 2016-09 discussed below) necessary to present fairly the financial position, results of operations and cash flows at March 31, 2017 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements contained in its transition report on Form 10-K for the transition period ended December 31, 2016. The results of operations for the period ended March 31, 2017 and 2016 are not necessarily indicative of the operating results for the full years. |
Note 2 - Significant Accounting
Note 2 - Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 2 - Significant Accounting Policies | Note 2 Organization and Summary of Significant Accounting Policies Organization and Line of Business This Organization and Summary of Significant Accounting Policies of the Company is presented to assist in understanding the Companys consolidated financial statements. The Companys accounting policies conform to accounting principles generally accepted in the United States of America (US GAAP). Profire Energy, Inc. was established on October 9, 2008 upon the closing of transactions contemplated by an Acquisition Agreement among The Flooring Zone, Inc., Profire Combustion, Inc. (the Subsidiary) and the shareholders of the Subsidiary. Following the closing of the transactions, The Flooring Zone, Inc. was renamed Profire Energy, Inc. (the Parent). Pursuant to the terms and conditions of the Acquisition Agreement, 35,000,000 shares of restricted common stock of the Parent were issued to the three shareholders of the Subsidiary in exchange for all of the issued and outstanding shares of the Subsidiary. As a result of the transaction, the Subsidiary became a wholly-owned subsidiary of the Parent and the shareholders of the Subsidiary became the controlling shareholders of the Parent. The Parent was incorporated on May 5, 2003 in the State of Nevada. The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada. The Company provides burner and chemical management products and services for the oil and gas industry primarily in the Canadian and US markets. Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the Notes to the Consolidated Financial Statements in the Companys most recent 10-K, except as discussed below. Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on financial position, net income, or stockholders equity. Stock Based Compensation In March 2016, the FASB issued ASU No. 2016-09, Compensation Stock Compensation (Topic 718): Improvements to Employee Share Based Payment Accounting. Several aspects of the accounting for share based payment awards are simplified 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 increase in retained earnings. Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Companys financial position, results of operations or cash flows. |
Note 3 - Research and Developme
Note 3 - Research and Development | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 3 - Research and Development | Note 3 RESEARCH AND DEVELOPMENT All costs associated with research and development are expensed when incurred. Costs incurred for research and development are presented in the table below: For the Three Months Ended March 31, 2017 2016 Research and Development $198,966 $153,522 |
Note 4 - Stockholders' Equity
Note 4 - Stockholders' Equity | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 4 - Stockholders' Equity | Note 4 STOCKHOLDERS EQUITY As of March 31, 2017 and December 31, 2016, the Company held 3,117,252 and 2,876,317 shares in treasury at a total cost of $3,901,709 and $3,582,805, respectively. All purchases of treasury stock have been made at market rates. |
Note 5 - Financial Instruments
Note 5 - Financial Instruments and Investments | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 5 - Financial Instruments and Investments | NOTE 5 - FINANCIAL INSTRUMENTS AND INVESTMENTS The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. The following tables show the adjusted cost, unrealized losses and fair value of the Companys cash and cash equivalents and investments held as of March 31, 2017 and December 31, 2016: March 31, 2017 Adjusted Cost Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $616,486 $- $616,486 $616,486 $- $- Mutual Funds 1,626,236 (69,657) 1,556,579 - - 1,556,579 Subtotal 2,242,722 (69,657) 2,173,065 616,486 - 1,556,579 Level 2 Certificates of Deposit $3,000,000 $- $3,000,000 $- $3,000,000 $- Corporate Bonds 2,142,900 (23,923) 2,118,977 - 299,707 1,819,270 Municipal Bonds 4,609,423 (27,751) 4,581,672 - 1,922,230 2,659,442 Subtotal 9,752,323 (51,674) 9,700,649 - 5,221,937 4,478,712 Total $11,995,045 $(121,331) $11,873,714 $616,486 $5,221,937 $6,035,291 December 31, 2016 Adjusted Cost Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $1,053,844 $- $1,053,844 $1,053,844 $- $- Mutual Funds 1,473,536 (90,495) 1,383,041 - - 1,383,041 Subtotal 2,527,380 (90,495) 2,436,885 1,053,844 - 1,383,041 Level 2 Certificates of Deposit $2,250,000 $- $2,250,000 $- $2,250,000 $- Corporate Bonds 2,246,956 (29,419) 2,217,537 - 400,053 1,817,484 Municipal Bonds 4,929,249 (59,294) 4,869,955 - 2,565,483 2,304,472 Subtotal 9,426,205 (88,713) 9,337,492 - 5,215,536 4,121,956 Total $11,953,585 $(179,208) $11,774,377 $1,053,844 $5,215,536 $5,504,997 Unrealized gains on investments incurred during the periods are presented below: For the Three Months Ended March 31, 2017 2016 Unrealized holding gains, net of tax $36,288 $- 0 The maturities for bonds held by the Company as of March 31, 2017 are presented in the table below: Maturity Fair Value Less Than One Year 2,221,937 1-2 years 307,671 2-5 years 3,617,421 5-10 years 253,620 Over 10 years 300,000 6,700,649 |
Note 6 - Segment Information
Note 6 - Segment Information | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 6 - Segment Information | NOTE 6 SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Three Months Ended March 31, Sales 2017 2016 Canada $1,083,898 $765,758 United States 6,740,597 3,777,896 Total Consolidated $7,824,495 $4,543,654 For the Three Months Ended March 31, Profit (Loss) 2017 2016 Canada $(582,046) $(404,846) United States 1,182,117 (359,771) Total Consolidated $600,071 $(764,617) As of Long-lived assets March 31, 2017 December 31, 2016 Canada $970,182 $1,067,346 United States 6,288,896 7,165,565 Total Consolidated $7,259,078 $8,232,911 7458723 |
Note 7 - Stock Based Compensati
Note 7 - Stock Based Compensation | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 7 - Stock Based Compensation | NOTE 7 STOCK BASED COMPENSATION On February 27, 2017, the Company issued 74,711 shares of common stock to one of our directors in settlement of previously vested restricted stock units (RSUs). The compensation cost was already recognized in prior periods as the awards vested. |
Note 8 - Inventory
Note 8 - Inventory | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 8 - Inventory | NOTE 8 INVENTORY Inventories consisted of the following at each balance sheet date: As of March 31, 2017 December 31, 2016 Raw materials $675,777 $940,527 Finished goods 7,562,237 7,112,098 Work in process - - Subtotal 8,238,014 8,052,625 Reserve for Obsolescence (213,453) (213,122) Total $8,024,561 $7,839,503 |
Note 9 - Basic and Diluted Earn
Note 9 - Basic and Diluted Earnings Per Share | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 9 - Basic and Diluted Earnings Per Share | NOTE 9 BASIC AND DILUTED EARNINGS PER SHARE The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: For the three-months ended March 31, 2017 For the three-months ended March 31, 2016 Income (Numerator) Shares (Denominator) Per-Share Amount Income (Numerator) Shares (Denominator) Per-Share Amount Basic EPS Net income available to common stockholders 600,071 50,632,275 $0.01 (764,617) 53,243,151 $(0.01) Effect of Dilutive Securities Stock options & RSUs - 655,130 - - Diluted EPS Net income available to common stockholders + assumed conversions 600,071 51,287,405 $0.01 (764,617) 53,243,151 $(0.01) Options to purchase 1,199,000 shares of common stock at a weighted average price of $2.03 per share were outstanding during the three-months ended March 31, 2017, but were not included in the computation of diluted EPS because the options exercise price was greater than the average market price of the common shares. These options, which expire between March 2018 and October 2025, were still outstanding at March 31, 2017. Options to purchase 2,537,652 shares of common stock at a weighted average price of $1.32 per share were outstanding during the three-months ended March 31, 2016, but were not included in the computation of diluted EPS because the Company reported a net loss during the period and the impact of these shares would be antidilutive. These options, which expire between February 2017 and October 2025, were still outstanding at March 31, 2016. |
Note 10 - Subsequent Events
Note 10 - Subsequent Events | 3 Months Ended |
Mar. 31, 2017 | |
Notes | |
Note 10 - Subsequent Events | NOTE 10 SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company Management reviewed all material events through May 5, 2017, the date this report was available to be issued, and the following subsequent events occurred: During the period beginning April 1, 2017 and ending May 5, 2017, the Company repurchased 318,655 shares of common stock for a total repurchase price of $432,387 under the shareholder authorized repurchase program. All purchases were made at market rates. |
Note 2 - Significant Accounti16
Note 2 - Significant Accounting Policies: Reclassification (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Policies | |
Reclassification | Reclassification Certain balances in previously issued consolidated financial statements have been reclassified to be consistent with the current period presentation. The reclassification had no impact on financial position, net income, or stockholders equity. |
Note 2 - Significant Accounti17
Note 2 - Significant Accounting Policies: Stock Based Compensation (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Policies | |
Stock Based Compensation | Stock Based Compensation In March 2016, the FASB issued ASU No. 2016-09, Compensation Stock Compensation (Topic 718): Improvements to Employee Share Based Payment Accounting. Several aspects of the accounting for share based payment awards are simplified 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 increase in retained earnings. |
Note 2 - Significant Accounti18
Note 2 - Significant Accounting Policies: Recent Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Policies | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Companys financial position, results of operations or cash flows. |
Note 3 - Research and Develop19
Note 3 - Research and Development: Research and Development (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Policies | |
Research and Development | All costs associated with research and development are expensed when incurred. Costs incurred for research and development are presented in the table below: For the Three Months Ended March 31, 2017 2016 Research and Development $198,966 $153,522 |
Note 3 - Research and Develop20
Note 3 - Research and Development: Research and Development: Schedule of Research and Development (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Research and Development | For the Three Months Ended March 31, 2017 2016 Research and Development $198,966 $153,522 |
Note 5 - Financial Instrument21
Note 5 - Financial Instruments and Investments: Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value of the Company's Cash and Cash Equivalents and Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value of the Company's Cash and Cash Equivalents and Investments | March 31, 2017 Adjusted Cost Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $616,486 $- $616,486 $616,486 $- $- Mutual Funds 1,626,236 (69,657) 1,556,579 - - 1,556,579 Subtotal 2,242,722 (69,657) 2,173,065 616,486 - 1,556,579 Level 2 Certificates of Deposit $3,000,000 $- $3,000,000 $- $3,000,000 $- Corporate Bonds 2,142,900 (23,923) 2,118,977 - 299,707 1,819,270 Municipal Bonds 4,609,423 (27,751) 4,581,672 - 1,922,230 2,659,442 Subtotal 9,752,323 (51,674) 9,700,649 - 5,221,937 4,478,712 Total $11,995,045 $(121,331) $11,873,714 $616,486 $5,221,937 $6,035,291 December 31, 2016 Adjusted Cost Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $1,053,844 $- $1,053,844 $1,053,844 $- $- Mutual Funds 1,473,536 (90,495) 1,383,041 - - 1,383,041 Subtotal 2,527,380 (90,495) 2,436,885 1,053,844 - 1,383,041 Level 2 Certificates of Deposit $2,250,000 $- $2,250,000 $- $2,250,000 $- Corporate Bonds 2,246,956 (29,419) 2,217,537 - 400,053 1,817,484 Municipal Bonds 4,929,249 (59,294) 4,869,955 - 2,565,483 2,304,472 Subtotal 9,426,205 (88,713) 9,337,492 - 5,215,536 4,121,956 Total $11,953,585 $(179,208) $11,774,377 $1,053,844 $5,215,536 $5,504,997 |
Note 5 - Financial Instrument22
Note 5 - Financial Instruments and Investments: Unrealized Gain (Loss) on Investments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Unrealized Gain (Loss) on Investments | For the Three Months Ended March 31, 2017 2016 Unrealized holding gains, net of tax $36,288 $- 0 |
Note 5 - Financial Instrument23
Note 5 - Financial Instruments and Investments: Maturities for Bonds (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Maturities for Bonds | Maturity Fair Value Less Than One Year 2,221,937 1-2 years 307,671 2-5 years 3,617,421 5-10 years 253,620 Over 10 years 300,000 6,700,649 |
Note 6 - Segment Information_ S
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Segment Reporting Information, by Segment | For the Three Months Ended March 31, Sales 2017 2016 Canada $1,083,898 $765,758 United States 6,740,597 3,777,896 Total Consolidated $7,824,495 $4,543,654 For the Three Months Ended March 31, Profit (Loss) 2017 2016 Canada $(582,046) $(404,846) United States 1,182,117 (359,771) Total Consolidated $600,071 $(764,617) As of Long-lived assets March 31, 2017 December 31, 2016 Canada $970,182 $1,067,346 United States 6,288,896 7,165,565 Total Consolidated $7,259,078 $8,232,911 7458723 |
Note 8 - Inventory_ Schedule of
Note 8 - Inventory: Schedule of Inventory, Current (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Inventory, Current | As of March 31, 2017 December 31, 2016 Raw materials $675,777 $940,527 Finished goods 7,562,237 7,112,098 Work in process - - Subtotal 8,238,014 8,052,625 Reserve for Obsolescence (213,453) (213,122) Total $8,024,561 $7,839,503 |
Note 9 - Basic and Diluted Ea26
Note 9 - Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | For the three-months ended March 31, 2017 For the three-months ended March 31, 2016 Income (Numerator) Shares (Denominator) Per-Share Amount Income (Numerator) Shares (Denominator) Per-Share Amount Basic EPS Net income available to common stockholders 600,071 50,632,275 $0.01 (764,617) 53,243,151 $(0.01) Effect of Dilutive Securities Stock options & RSUs - 655,130 - - Diluted EPS Net income available to common stockholders + assumed conversions 600,071 51,287,405 $0.01 (764,617) 53,243,151 $(0.01) |
Note 2 - Significant Accounti27
Note 2 - Significant Accounting Policies (Details) | 3 Months Ended |
Mar. 31, 2017 | |
Details | |
Entity Incorporation, Date of Incorporation | May 5, 2003 |
Entity Incorporation, State Country Name | Nevada |
Note 3 - Research and Develop28
Note 3 - Research and Development: Research and Development: Schedule of Research and Development (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details | ||
Research and development | $ 198,966 | $ 153,522 |
Note 4 - Stockholders' Equity (
Note 4 - Stockholders' Equity (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Details | ||
Treasury Stock, Shares | 3,117,252 | 2,876,317 |
Treasury stock, at cost | $ 3,901,709 | $ 3,582,805 |
Note 5 - Financial Instrument30
Note 5 - Financial Instruments and Investments: Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value of the Company's Cash and Cash Equivalents and Investments (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Adjusted Cost | $ 11,995,045 | $ 11,953,585 |
Investments, Fair Value Disclosure | 11,873,714 | 11,774,377 |
Cash and Cash Equivalents | 616,486 | 1,053,844 |
Investments, Unrealized Loss, Fair Value | (121,331) | (179,208) |
Long-term investments | 6,035,291 | 5,504,997 |
Short-term Investments | 5,221,937 | 5,215,536 |
Fair Value, Inputs, Level 1 | ||
Adjusted Cost | 2,242,722 | 2,527,380 |
Investments, Fair Value Disclosure | 2,173,065 | 2,436,885 |
Cash and Cash Equivalents | 616,486 | 1,053,844 |
Investments, Unrealized Loss, Fair Value | (69,657) | (90,495) |
Long-term investments | 1,556,579 | 1,383,041 |
Fair Value, Inputs, Level 2 | ||
Adjusted Cost | 9,752,323 | 9,426,205 |
Investments, Fair Value Disclosure | 9,700,649 | 9,337,492 |
Investments, Unrealized Loss, Fair Value | (51,674) | (88,713) |
Long-term investments | 4,478,712 | 4,121,956 |
Short-term Investments | 5,221,937 | 5,215,536 |
Money Market Funds | Fair Value, Inputs, Level 1 | ||
Adjusted Cost | 616,486 | 1,053,844 |
Investments, Fair Value Disclosure | 616,486 | 1,053,844 |
Cash and Cash Equivalents | 616,486 | 1,053,844 |
Mutual Funds | Fair Value, Inputs, Level 1 | ||
Adjusted Cost | 1,626,236 | 1,473,536 |
Investments, Fair Value Disclosure | 1,556,579 | 1,383,041 |
Investments, Unrealized Loss, Fair Value | (69,657) | (90,495) |
Long-term investments | 1,556,579 | 1,383,041 |
Certificates of Deposit | Fair Value, Inputs, Level 2 | ||
Adjusted Cost | 3,000,000 | 2,250,000 |
Investments, Fair Value Disclosure | 3,000,000 | 2,250,000 |
Short-term Investments | 3,000,000 | 2,250,000 |
Corporate Bond Securities | Fair Value, Inputs, Level 2 | ||
Adjusted Cost | 2,142,900 | 2,246,956 |
Investments, Fair Value Disclosure | 2,118,977 | 2,217,537 |
Investments, Unrealized Loss, Fair Value | (23,923) | (29,419) |
Long-term investments | 1,819,270 | 1,817,484 |
Short-term Investments | 299,707 | 400,053 |
Municipal Bonds | Fair Value, Inputs, Level 2 | ||
Adjusted Cost | 4,609,423 | 4,929,249 |
Investments, Fair Value Disclosure | 4,581,672 | 4,869,955 |
Investments, Unrealized Loss, Fair Value | (27,751) | (59,294) |
Long-term investments | 2,659,442 | 2,304,472 |
Short-term Investments | $ 1,922,230 | $ 2,565,483 |
Note 5 - Financial Instrument31
Note 5 - Financial Instruments and Investments: Unrealized Gain (Loss) on Investments (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details | ||
Unrealized gains on investments | $ 36,288 | $ 0 |
Note 5 - Financial Instrument32
Note 5 - Financial Instruments and Investments: Maturities for Bonds (Details) - Bonds | Mar. 31, 2017USD ($) |
Fair Value, Investments | $ 6,700,649 |
Less than One Year | |
Fair Value, Investments | 2,221,937 |
1-2 Years | |
Fair Value, Investments | 307,671 |
2-5 Years | |
Fair Value, Investments | 3,617,421 |
5-10 Years | |
Fair Value, Investments | 253,620 |
Over 10 Years | |
Fair Value, Investments | $ 300,000 |
Note 6 - Segment Information_33
Note 6 - Segment Information: Schedule of Segment Reporting Information, by Segment (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Total Revenues | $ 7,824,495 | $ 4,543,654 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 600,071 | (764,617) | |
PROPERTY AND EQUIPMENT, net | 7,259,078 | $ 7,458,723 | |
CANADA | |||
Total Revenues | 1,083,898 | 765,758 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | (582,046) | (404,846) | |
PROPERTY AND EQUIPMENT, net | 970,182 | 1,067,346 | |
UNITED STATES | |||
Total Revenues | 6,740,597 | 3,777,896 | |
Net Income (Loss), Including Portion Attributable to Noncontrolling Interest | 1,182,117 | $ (359,771) | |
PROPERTY AND EQUIPMENT, net | $ 6,288,896 | $ 7,165,565 |
Note 8 - Inventory_ Schedule 34
Note 8 - Inventory: Schedule of Inventory, Current (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Details | ||
Inventory, Raw Materials, Gross | $ 675,777 | $ 940,527 |
Inventory, Finished Goods, Gross | 7,562,237 | 7,112,098 |
Subtotal | 8,238,014 | 8,052,625 |
Reserves for obsolescence | (213,453) | (213,122) |
Inventories, net | $ 8,024,561 | $ 7,839,503 |
Note 9 - Basic and Diluted Ea35
Note 9 - Basic and Diluted Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details | ||
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 50,632,275 | 53,243,151 |
BASIC EARNINGS (LOSS) PER SHARE | $ 0.01 | $ (0.01) |
Dilutive Securities, Effect on Basic Earnings Per Share | $ 655,130 | |
NET INCOME (LOSS) | $ 600,071 | $ (764,617) |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING | 51,287,405 | 53,243,151 |
FULLY DILUTED EARNINGS (LOSS) PER SHARE | $ 0.01 | $ (0.01) |
Note 9 - Basic and Diluted Ea36
Note 9 - Basic and Diluted Earnings Per Share (Details) - shares | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Details | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 1,199,000 | 2,537,652 |