Profire Energy (PFIE) 10-Q 9 Aug 17 2017 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 04, 2017
Document and Entity Information:
Entity Registrant Name	Profire Energy Inc
Document Type	10-Q
Document Period End Date	Jun. 30, 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		48,553,246
Entity Filer Category	Smaller Reporting Company
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2017	Dec. 31, 2016
CURRENT ASSETS
Cash and cash equivalents	$ 9,310,895	$ 9,316,036
Accounts receivable, net	6,701,171	5,633,802
Inventories, net	8,297,245	7,839,503
Income tax receivable	194,752	180,981
Short term investments	2,110,602	2,965,536
Investments - other	2,250,000	2,250,000
Prepaid expenses & other current assets	622,396	410,558
Total Current Assets	29,487,061	28,596,416
LONG-TERM ASSETS
Net deferred tax asset	195,368	60,940
Long-term investments	6,356,832	5,504,997
Property and equipment, net	7,166,159	7,458,723
Goodwill	997,701	997,701
Intangible assets, net	493,265	490,082
Total Long-Term Assets	15,209,325	14,512,443
TOTAL ASSETS	44,696,386	43,108,859
CURRENT LIABILITIES
Accounts payable	1,315,561	1,220,478
Accrued vacation	192,579	154,307
Accrued liabilities	601,740	284,214
Income taxes payable	1,397,462	61,543
Total Current Liabilities	3,507,342	1,720,542
TOTAL LIABILITIES	3,507,342	1,720,542
STOCKHOLDERS' EQUITY
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued and outstanding	0	0
Common shares: $0.001 par value, 100,000,000 shares authorized: 53,684,293 issued and 48,662,169 outstanding at June 30, 2017 and 53,582,250 issued and 50,705,933 outstanding at December 31, 2016	53,684	53,582
Treasury stock, at cost	(6,423,737)	(3,582,805)
Additional paid-in capital	26,981,218	26,800,298
Accumulated other comprehensive loss	(2,434,140)	(2,810,743)
Retained earnings	23,012,019	20,927,985
Total Stockholders' Equity	41,189,044	41,388,317
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 44,696,386	$ 43,108,859

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Stock Transactions, Parenthetical Disclosures [Abstract]
Preferred stock par value (dollars per share)	$ 0.001	$ 0.001
Preferred stock shares authorized (shares)	10,000,000	10,000,000
Preferred stock shares issued (shares)	0	0
Preferred stock shares outstanding (shares)	0	0
Common stock par value (dollars per share)	$ 0.001	$ 0.001
Common stock shares authorized (shares)	100,000,000	100,000,000
Common stock shares issued (shares)	53,684,293	53,582,250
Common stock shares outstanding (shares)	48,662,169	50,705,933

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Loss) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
REVENUES
Sales of goods, net	$ 8,834,650	$ 3,462,893	$ 16,126,879	$ 7,435,817
Sales of services, net	630,301	511,150	1,162,568	1,081,880
Total Revenues	9,464,951	3,974,043	17,289,447	8,517,697
COST OF SALES
Cost of goods sold-product	4,035,528	1,712,643	7,090,828	3,493,209
Cost of goods sold-services	452,591	347,150	854,613	810,343
Total Cost of Goods Sold	4,488,119	2,059,793	7,945,441	4,303,552
GROSS PROFIT	4,976,832	1,914,250	9,344,006	4,214,145
OPERATING EXPENSES
General and administrative expenses	2,739,055	2,385,567	5,682,368	5,055,668
Research and development	275,776	250,722	479,520	404,244
Depreciation and amortization expense	130,838	159,239	279,913	301,777
Total Operating Expenses	3,145,669	2,795,528	6,441,801	5,761,689
INCOME (LOSS) FROM OPERATIONS	1,831,163	(881,278)	2,902,205	(1,547,544)
OTHER INCOME (EXPENSE)
Gain (loss) on sale of fixed assets	46,374	(2,592)	48,476	(1,705)
Other (expense) income	18,798	4,756	13,385	(271,557)
Interest income	54,840	27,942	86,118	33,363
Total Other Income (Expense)	120,012	30,106	147,979	(239,899)
NET INCOME (LOSS) BEFORE INCOME TAXES	1,951,175	(851,172)	3,050,184	(1,787,443)
Income tax expense (benefit)	638,528	(245,877)	1,137,465	(417,531)
NET INCOME (LOSS)	1,312,647	(605,295)	1,912,719	(1,369,912)
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation gain (loss)	238,543	773	313,656	(839,417)
Unrealized gains on investments, net of tax	26,659	0	62,947	0
Total Other Comprehensive Income (Loss)	265,202	773	376,603	(839,417)
TOTAL COMPREHENSIVE INCOME (LOSS)	$ 1,577,849	$ (604,522)	$ 2,289,322	$ (2,209,329)
BASIC EARNINGS PER SHARE (dollars per share)	$ 0.03	$ (0.01)	$ 0.04	$ (0.03)
FULLY DILUTED EARNINGS PER SHARE (dollars per share)	$ 0.03	$ (0.01)	$ 0.04	$ (0.03)
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares)	49,678,917	53,256,333	50,152,958	53,274,640
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares)	50,283,144	53,256,333	50,757,185	53,274,640

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows - USD ($)	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
OPERATING ACTIVITIES
Net Income (Loss)	$ 1,912,719	$ (1,369,912)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	458,293	512,703
Gain on sale of fixed assets	(48,255)	1,705
Bad debt expense	121,015	190,384
Stock options issued for services	372,086	156,286
Changes in operating assets and liabilities:
Changes in accounts receivable	(1,107,574)	3,201,882
Changes in income taxes receivable/payable	1,327,884	(749,358)
Changes in inventories	(646,870)	1,091,372
Changes in prepaid expenses	(205,781)	36,003
Changes in deferred tax asset/liability	(134,427)	232,559
Changes in accounts payable and accrued liabilities	716,436	(1,014,087)
Net Cash Provided by Operating Activities	2,765,526	2,289,537
INVESTING ACTIVITIES
Proceeds from sale of equipment	112,183	59,013
Proceeds from investments	66,045	0
Purchase of fixed assets	(181,566)	0
Net Cash Provided by (Used in) Investing Activities	(3,338)	59,013
FINANCING ACTIVITIES
Value of equity awards surrendered by employees for tax liability	(20,800)	(99)
Purchase of Treasury stock	(2,840,932)	0
Net Cash Used in Financing Activities	(2,861,732)	(99)
Effect of exchange rate changes on cash	94,403	413,138
NET INCREASE IN CASH	(5,141)	2,761,589
CASH AT BEGINNING OF PERIOD	9,316,036	19,281,501
CASH AT END OF PERIOD	9,310,895	22,043,090
CASH PAID FOR:
Interest		0
Income taxes	$ 67,078	$ 0

CONDENSED FINANCIAL STATEMENTS

CONDENSED FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
CONDENSED FINANCIAL STATEMENTS	CONDENSED FINANCIAL STATEMENTS Except where the context otherwise requires, references herein to the "Company" are to Profire Energy, Inc. and its wholly owned subsidiary, taken together. The accompanying financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments (which include only normal recurring adjustments, except for the adoption of ASU 2016-09 discussed below) necessary to present fairly the financial position, results of operations and cash flows at June 30, 2017 and for all periods presented have been made. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements contained in its transition report on Form 10-K for the transition period ended December 31, 2016 . The results of operations for the period ended June 30, 2017 and 2016 are not necessarily indicative of the operating results for the full years.

ORGANIZATION AND SUMMARY OF SIG

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Line of Business This Organization and Summary of Significant Accounting Policies of the Company is presented to assist in understanding the Company's consolidated financial statements. The Company's accounting policies conform to accounting principles generally accepted in the United States of America ("US GAAP"). Profire Energy, Inc. was established on October 9, 2008 upon the closing of transactions contemplated by an Acquisition Agreement among The Flooring Zone, Inc., Profire Combustion, Inc. (the "Subsidiary") and the shareholders of the Subsidiary. Following the closing of the transactions, The Flooring Zone, Inc. was renamed Profire Energy, Inc. (the "Parent"). Pursuant to the terms and conditions of the Acquisition Agreement, 35,000,000 shares of restricted common stock of the Parent were issued to the three shareholders of the Subsidiary in exchange for all of the issued and outstanding shares of the Subsidiary. As a result of the transaction, the Subsidiary became a wholly-owned subsidiary of the Parent and the shareholders of the Subsidiary became the controlling shareholders of the Parent. The Parent was incorporated on May 5, 2003 in the State of Nevada . The Subsidiary was incorporated on March 6, 2002 in the province of Alberta, Canada. The Company provides burner and chemical management products and services for the oil and gas industry primarily in the Canadian and US markets. Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the Notes to the Consolidated Financial Statements in the Company's most recent 10-K, except as discussed below. 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 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED) 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.

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventories consisted of the following at each balance sheet date: As of June 30, 2017 December 31, 2016 Raw materials $ 157,437 $ 940,527 Finished goods 8,322,753 7,112,098 Work in process — — Subtotal 8,480,190 8,052,625 Reserve for Obsolescence (182,945 ) (213,122 ) Total $ 8,297,245 $ 7,839,503

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2017
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY As of June 30, 2017 and December 31, 2016 , the Company held 5,022,124 and 2,876,317 shares in treasury at a total cost of $ 6,423,737 and $ 3,582,805 , respectively. All purchases of treasury stock have been made at market rates. On May 25, 2017, the Company repurchased 1,300,000 shares of Company stock from our CEO for a total price of $ 1,703,000 . This repurchase is included in the treasury stock described in the preceding paragraph. For further details, refer to the Stock Redemption Agreement filed herewith as exhibit 10.2.

FINANCIAL INSTRUMENTS AND INVES

FINANCIAL INSTRUMENTS AND INVESTMENTS	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
FINANCIAL INSTRUMENTS AND INVESTMENTS	FINANCIAL INSTRUMENTS AND INVESTMENTS The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Financial assets are marked to bid prices and financial liabilities are marked to offer prices. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. The carrying value of cash, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. NOTE 5 - FINANCIAL INSTRUMENTS AND INVESTMENTS (CONTINUED) The following tables show the adjusted cost, unrealized losses and fair value of the Company's money market funds and investments held as of June 30, 2017 and December 31, 2016 : June 30, 2017 Adjusted Cost Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $ 1,205,256 $ — $ 1,205,256 $ 1,205,256 $ — $ — Mutual Funds 1,626,236 (46,762 ) 1,579,474 — — 1,579,474 Subtotal 2,831,492 (46,762 ) 2,784,730 1,205,256 — 1,579,474 Level 2 Certificates of Deposit $ 2,250,000 $ — $ 2,250,000 $ — $ 2,250,000 $ — Corporate Bonds 2,138,828 (19,820 ) 2,119,008 — 455,241 1,663,767 Municipal Bonds 4,781,183 (12,231 ) 4,768,952 — 1,655,361 3,113,591 Subtotal 9,170,011 (32,051 ) 9,137,960 — 4,360,602 4,777,358 Total $ 12,001,503 $ (78,813 ) $ 11,922,690 $ 1,205,256 $ 4,360,602 $ 6,356,832 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

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
SEGMENT INFORMATION	SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, Sales 2017 2016 2017 2016 Canada 1,958,320 1,422,087 3,042,218 2,187,845 United States 7,506,631 2,551,956 14,247,229 6,329,852 Total Consolidated 9,464,951 3,974,043 17,289,447 8,517,697 For the Three Months Ended June 30, For the Six Months Ended June 30, Profit (Loss) 2017 2016 2017 2016 Canada 246,534 (53,176) (335,510) (458,021) United States 1,066,113 (552,119) 2,248,229 (911,891) Total Consolidated 1,312,647 (605,295) 1,912,719 (1,369,912) As of Long-lived assets June 30, 2017 December 31, 2016 Canada $ 1,493,693 $ 1,472,207 United States 13,520,264 12,979,296 Total Consolidated $ 15,013,957 $ 14,451,503

STOCK BASED COMPENSATION

STOCK BASED COMPENSATION	6 Months Ended
	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
STOCK BASED COMPENSATION	STOCK BASED COMPENSATION On February 27, 2017, the Company issued 74,711 shares of common stock to one of our directors in settlement of previously vested restricted stock units ("RSUs"). During May and June, the Company issued 27,332 shares of common stock to an employee in settlement of previously vested RSUs. The compensation cost for all of these issuances was already recognized in prior periods as the awards vested.

BASIC AND DILUTED EARNINGS PER

BASIC AND DILUTED EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
BASIC AND DILUTED EARNINGS PER SHARE	BASIC AND DILUTED EARNINGS PER SHARE The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Income Weighted Average Shares (Denominator) Per-Share Income Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders 1,312,647 49,678,917 $ 0.03 1,912,719 50,152,958 $ 0.04 Effect of Dilutive Securities Stock options & RSUs — 604,227 — 604,227 Diluted EPS Net income available to common stockholders + assumed conversions 1,312,647 50,283,144 $ 0.03 1,912,719 50,757,185 $ 0.04 Options to purchase 1,195,100 shares of common stock at a weighted average price of $2.03 per share were outstanding during the three and six months ended June 30, 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 June 30, 2017 . Three months ended June 30, 2016 Six Months Ended June 30, 2016 Income Weighted Average Shares (Denominator) Per-Share Income Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders (605,295 ) 53,256,333 $ (0.01 ) (1,369,912 ) 53,274,640 $ (0.03 ) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net income available to common stockholders + assumed conversions (605,295 ) 53,256,333 $ (0.01 ) (1,369,912 ) 53,274,640 $ (0.03 ) Options to purchase 332,794 , and 1,018,500 shares of common stock at a weighted average price of $2.29 per share were outstanding during the three and six months ended June 30, 2016 , respectively, but were not included in the computation of diluted EPS because the Company reported a net loss during the periods and the impact of these shares would be antidilutive. These options, which expire between February 2017 and October 2025, were still outstanding at June 30, 2016 .

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company Management reviewed all material events through August 4, 2017 , the date this report was available to be issued, and the following subsequent events occurred: During the period beginning July 1, 2017 and ended August 4, 2017 , the Company repurchased 108,923 shares of common stock for a total repurchase price of $ 139,705 under the shareholder authorized repurchase program. All purchases were made at market rates.

ORGANIZATION AND SUMMARY OF S15

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2017
Accounting Policies [Abstract]
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.
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.
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.

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of the following at each balance sheet date: As of June 30, 2017 December 31, 2016 Raw materials $ 157,437 $ 940,527 Finished goods 8,322,753 7,112,098 Work in process — — Subtotal 8,480,190 8,052,625 Reserve for Obsolescence (182,945 ) (213,122 ) Total $ 8,297,245 $ 7,839,503

FINANCIAL INSTRUMENTS AND INV17

FINANCIAL INSTRUMENTS AND INVESTMENTS (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Available-for-sale Securities	The following tables show the adjusted cost, unrealized losses and fair value of the Company's money market funds and investments held as of June 30, 2017 and December 31, 2016 : June 30, 2017 Adjusted Cost Gross Unrealized Losses Fair Value Cash and Cash Equivalents Short Term Investments Long Term Investments Level 1 Money Market Funds $ 1,205,256 $ — $ 1,205,256 $ 1,205,256 $ — $ — Mutual Funds 1,626,236 (46,762 ) 1,579,474 — — 1,579,474 Subtotal 2,831,492 (46,762 ) 2,784,730 1,205,256 — 1,579,474 Level 2 Certificates of Deposit $ 2,250,000 $ — $ 2,250,000 $ — $ 2,250,000 $ — Corporate Bonds 2,138,828 (19,820 ) 2,119,008 — 455,241 1,663,767 Municipal Bonds 4,781,183 (12,231 ) 4,768,952 — 1,655,361 3,113,591 Subtotal 9,170,011 (32,051 ) 9,137,960 — 4,360,602 4,777,358 Total $ 12,001,503 $ (78,813 ) $ 11,922,690 $ 1,205,256 $ 4,360,602 $ 6,356,832 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

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information	Segment information for these geographic areas is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, Sales 2017 2016 2017 2016 Canada 1,958,320 1,422,087 3,042,218 2,187,845 United States 7,506,631 2,551,956 14,247,229 6,329,852 Total Consolidated 9,464,951 3,974,043 17,289,447 8,517,697 For the Three Months Ended June 30, For the Six Months Ended June 30, Profit (Loss) 2017 2016 2017 2016 Canada 246,534 (53,176) (335,510) (458,021) United States 1,066,113 (552,119) 2,248,229 (911,891) Total Consolidated 1,312,647 (605,295) 1,912,719 (1,369,912) As of Long-lived assets June 30, 2017 December 31, 2016 Canada $ 1,493,693 $ 1,472,207 United States 13,520,264 12,979,296 Total Consolidated $ 15,013,957 $ 14,451,503

BASIC AND DILUTED EARNINGS PE19

BASIC AND DILUTED EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three months ended June 30, 2016 Six Months Ended June 30, 2016 Income Weighted Average Shares (Denominator) Per-Share Income Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders (605,295 ) 53,256,333 $ (0.01 ) (1,369,912 ) 53,274,640 $ (0.03 ) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net income available to common stockholders + assumed conversions (605,295 ) 53,256,333 $ (0.01 ) (1,369,912 ) 53,274,640 $ (0.03 ) The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: Three Months Ended June 30, 2017 Six Months Ended June 30, 2017 Income Weighted Average Shares (Denominator) Per-Share Income Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders 1,312,647 49,678,917 $ 0.03 1,912,719 50,152,958 $ 0.04 Effect of Dilutive Securities Stock options & RSUs — 604,227 — 604,227 Diluted EPS Net income available to common stockholders + assumed conversions 1,312,647 50,283,144 $ 0.03 1,912,719 50,757,185 $ 0.04

ORGANIZATION AND SUMMARY OF S20

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)	Oct. 09, 2008	Dec. 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Restricted common stock issued (shares)	35,000,000
Accounting Standards Update 2016-09 | Additional Paid-in Capital
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase (decrease) due to effect of new accounting principle		$ (171,315)
Accounting Standards Update 2016-09 | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase (decrease) due to effect of new accounting principle		$ 171,315

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Inventory Disclosure [Abstract]
Raw materials	$ 157,437	$ 940,527
Finished goods	8,322,753	7,112,098
Work in process	0	0
Subtotal	8,480,190	8,052,625
Reserve for Obsolescence	(182,945)	(213,122)
Total	$ 8,297,245	$ 7,839,503

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	May 25, 2017	Jun. 30, 2017	Dec. 31, 2016
Stockholders' Equity Note [Abstract]
Treasury stock (in shares)		5,022,124	2,876,317
Treasury stock, at cost		$ 6,423,737	$ 3,582,805
Stock repurchased during period (shares)	1,300,000
Value of stock repurchased during period	$ 1,703,000

FINANCIAL INSTRUMENTS AND INV23

FINANCIAL INSTRUMENTS AND INVESTMENTS (Details) - USD ($)	Jun. 30, 2017	Dec. 31, 2016
Adjusted Cost	$ 12,001,503	$ 11,953,585
Gross Unrealized Losses	(78,813)	(179,208)
Fair Value	11,922,690	11,774,377
Cash and Cash Equivalents	1,205,256	1,053,844
Short Term Investments	4,360,602	5,215,536
Long Term Investments	6,356,832	5,504,997
Level 1
Adjusted Cost	2,831,492	2,527,380
Gross Unrealized Losses	(46,762)	(90,495)
Fair Value	2,784,730	2,436,885
Cash and Cash Equivalents	1,205,256	1,053,844
Long Term Investments	1,579,474	1,383,041
Level 2
Adjusted Cost	9,170,011	9,426,205
Gross Unrealized Losses	(32,051)	(88,713)
Fair Value	9,137,960	9,337,492
Short Term Investments	4,360,602	5,215,536
Long Term Investments	4,777,358	4,121,956
Money Market Funds | Level 1
Adjusted Cost	1,205,256	1,053,844
Fair Value	1,205,256	1,053,844
Cash and Cash Equivalents	1,205,256	1,053,844
Mutual Funds | Level 1
Adjusted Cost	1,626,236	1,473,536
Gross Unrealized Losses	(46,762)	(90,495)
Fair Value	1,579,474	1,383,041
Long Term Investments	1,579,474	1,383,041
Certificates of Deposit | Level 2
Adjusted Cost	2,250,000	2,250,000
Fair Value	2,250,000	2,250,000
Short Term Investments	2,250,000	2,250,000
Corporate Bonds | Level 2
Adjusted Cost	2,138,828	2,246,956
Gross Unrealized Losses	(19,820)	(29,419)
Fair Value	2,119,008	2,217,537
Short Term Investments	455,241	400,053
Long Term Investments	1,663,767	1,817,484
Municipal Bonds | Level 2
Adjusted Cost	4,781,183	4,929,249
Gross Unrealized Losses	(12,231)	(59,294)
Fair Value	4,768,952	4,869,955
Short Term Investments	1,655,361	2,565,483
Long Term Investments	$ 3,113,591	$ 2,304,472

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Segment Reporting Information [Line Items]
Sales	$ 9,464,951	$ 3,974,043	$ 17,289,447	$ 8,517,697
Net Income (Loss)	1,312,647	(605,295)	1,912,719	(1,369,912)
Long-lived assets	15,013,957		15,013,957		$ 14,451,503
Canada
Segment Reporting Information [Line Items]
Sales	1,958,320	1,422,087	3,042,218	2,187,845
Net Income (Loss)	246,534	(53,176)	(335,510)	(458,021)
Long-lived assets	1,493,693		1,493,693		1,472,207
United States
Segment Reporting Information [Line Items]
Sales	7,506,631	2,551,956	14,247,229	6,329,852
Net Income (Loss)	1,066,113	$ (552,119)	2,248,229	$ (911,891)
Long-lived assets	$ 13,520,264		$ 13,520,264		$ 12,979,296

STOCK BASED COMPENSATION (Detai

STOCK BASED COMPENSATION (Details) - shares	Feb. 27, 2017	Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Common stock issued	74,711	27,332

BASIC AND DILUTED EARNINGS PE26

BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Income (Numerator)
Net income available to common stockholders	$ 1,312,647	$ (605,295)	$ 1,912,719	$ (1,369,912)
Effect of Dilutive Securities, Stock options & RSUs	0	0	0	0
Net income available to common stockholders assumed conversions	$ 1,312,647	$ (605,295)	$ 1,912,719	$ (1,369,912)
Weighted Average Shares (Denominator)
Weighted average basic shares outstanding (shares)	49,678,917	53,256,333	50,152,958	53,274,640
Effect of Dilutive Securities, Stock options & RSUs (shares)	604,227	0	604,227	0
Weighted average diluted shares outstanding (shares)	50,283,144	53,256,333	50,757,185	53,274,640
Per-Share Amount
Basic earnings per share (dollars per share)	$ 0.03	$ (0.01)	$ 0.04	$ (0.03)
Diluted earnings per share (dollars per share)	$ 0.03	$ (0.01)	$ 0.04	$ (0.03)
Antidilutive securities excluded from computation of earnings per share (shares)	1,195,100	332,794	1,195,100	1,018,500
Weighted average exercise price of options (dollars per share)	$ 2.03	$ 2.29	$ 2.03	$ 2.29

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) - USD ($)	May 25, 2017	Aug. 04, 2017
Subsequent Event [Line Items]
Stock repurchased during period (shares)	1,300,000
Value of stock repurchased during period	$ 1,703,000
Subsequent Event
Subsequent Event [Line Items]
Stock repurchased during period (shares)		108,923
Value of stock repurchased during period		$ 139,705