Profire Energy (PFIE) 10-Q 10 May 17 2017 Q1 Quarterly report Financial data

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 Company’s consolidated financial statements. The Company’s accounting policies conform to accounting principles generally accepted in the United States of America (“US GAAP”). Profire Energy, Inc. was established on October 9, 2008 upon the closing of transactions contemplated by an Acquisition Agreement among The Flooring Zone, Inc., Profire Combustion, Inc. (the “Subsidiary”) and the shareholders of the Subsidiary. Following the closing of the transactions, The Flooring Zone, Inc. was renamed Profire Energy, Inc. (the “Parent”). Pursuant to the terms and conditions of the Acquisition Agreement, 35,000,000 shares of restricted common stock of the Parent were issued to the three shareholders of the Subsidiary in exchange for all of the issued and outstanding shares of the Subsidiary. As a result of the transaction, the Subsidiary became a wholly-owned subsidiary of the Parent and the shareholders of the Subsidiary became the controlling shareholders of the Parent. The Parent was incorporated on May 5, 2003 in the State of Nevada. The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada. The Company provides burner and chemical management products and services for the oil and gas industry primarily in the Canadian and US markets. Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the Notes to the Consolidated Financial Statements in the Company’s most recent 10-K, except as discussed below. 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 Company’s 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 Company’s 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 Company’s 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