Profire Energy (PFIE) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Aug. 06, 2018
Document and Entity Information:
Entity Registrant Name	Profire Energy Inc
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
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		48,082,423
Entity Filer Category	Smaller Reporting Company
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($)	Jun. 30, 2018	Dec. 31, 2017
CURRENT ASSETS
Cash and cash equivalents	$ 9,298,677	$ 11,445,799
Short-term investments	531,248	300,817
Short-term investments - other	3,788,507	4,009,810
Accounts receivable, net	7,311,689	8,069,255
Inventories, net	8,281,125	6,446,083
Prepaid expenses & other current assets	350,260	437,304
Income tax receivable	191,369	0
Total Current Assets	29,752,875	30,709,068
LONG-TERM ASSETS
Net deferred tax asset	0	72,817
Long-term investments	8,024,247	8,517,182
Property and equipment, net	7,801,954	7,197,499
Goodwill	997,701	997,701
Intangible assets, net	459,229	494,792
Total Long-Term Assets	17,283,131	17,279,991
TOTAL ASSETS	47,036,006	47,989,059
CURRENT LIABILITIES
Accounts payable	1,872,095	1,780,977
Accrued vacation	257,149	196,646
Accrued liabilities	1,048,487	1,044,284
Income taxes payable	325,272	919,728
Total Current Liabilities	3,503,003	3,941,635
LONG-TERM LIABILITIES
Net deferred income tax liability	19,073	0
TOTAL LIABILITIES	3,522,076	3,941,635
STOCKHOLDERS' EQUITY
Preferred shares: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding	0	0
Common shares: $0.001 par value, 100,000,000 shares authorized: 54,685,119 issued and 48,082,423 outstanding at June 30, 2018 and 53,931,167 issued and 48,606,425 outstanding at December 31, 2017	54,685	53,931
Treasury stock, at cost	(10,890,349)	(6,890,349)
Additional paid-in capital	27,828,804	27,535,469
Accumulated other comprehensive loss	(2,618,543)	(2,200,462)
Retained earnings	29,139,333	25,548,835
TOTAL STOCKHOLDERS' EQUITY	43,513,930	44,047,424
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 47,036,006	$ 47,989,059

Condensed Consolidated Balance3

Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2018	Dec. 31, 2017
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)	54,685,119	53,931,167
Common stock, shares outstanding (shares)	48,082,423	48,606,425

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations and Other Comprehensive Income (Unaudited) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
REVENUES
Total Revenues	$ 11,339,761	$ 9,464,951	$ 23,509,478	$ 17,289,447
COST OF SALES
Total Cost of Goods Sold	5,431,094	4,488,119	11,470,671	7,945,441
GROSS PROFIT	5,908,667	4,976,832	12,038,807	9,344,006
OPERATING EXPENSES
General and administrative expenses	3,364,826	2,739,055	6,706,726	5,682,368
Research and development	317,002	275,776	720,221	479,520
Depreciation and amortization expense	129,070	130,838	257,787	279,913
Total Operating Expenses	3,810,898	3,145,669	7,684,734	6,441,801
INCOME FROM OPERATIONS	2,097,769	1,831,163	4,354,073	2,902,205
OTHER INCOME (EXPENSE)
Gain on sale of fixed assets	21,254	46,374	86,085	48,476
Other income (expense)	(4,164)	18,798	(5,956)	13,385
Interest income	174,771	54,840	225,479	86,118
Total Other Income	191,861	120,012	305,608	147,979
INCOME BEFORE INCOME TAXES	2,289,630	1,951,175	4,659,681	3,050,184
INCOME TAX EXPENSE	575,363	638,528	1,069,183	1,137,465
NET INCOME	1,714,267	1,312,647	3,590,498	1,912,719
OTHER COMPREHENSIVE INCOME (LOSS)
Foreign currency translation gain (loss)	(427,307)	238,543	(394,072)	313,656
Unrealized gains (losses) on investments	9,226	26,659	(24,009)	62,947
Total Other Comprehensive Income (Loss)	(418,081)	265,202	(418,081)	376,603
NET COMPREHENSIVE INCOME	$ 1,296,186	$ 1,577,849	$ 3,172,417	$ 2,289,322
BASIC EARNINGS PER SHARE (dollars per share)	$ 0.04	$ 0.03	$ 0.07	$ 0.04
FULLY DILUTED EARNINGS PER SHARE (dollars per share)	$ 0.03	$ 0.03	$ 0.07	$ 0.04
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares)	48,266,199	49,678,917	48,467,136	50,152,958
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares)	49,095,575	50,283,144	49,237,938	50,757,185
Product
REVENUES
Total Revenues	$ 10,724,409	$ 8,834,650	$ 22,179,024	$ 16,126,879
COST OF SALES
Total Cost of Goods Sold	4,959,539	4,035,528	10,517,249	7,090,828
Service
REVENUES
Total Revenues	615,352	630,301	1,330,454	1,162,568
COST OF SALES
Total Cost of Goods Sold	$ 471,555	$ 452,591	$ 953,422	$ 854,613

Condensed Consolidated Stateme5

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
OPERATING ACTIVITIES
Net income	$ 3,590,498	$ 1,912,719
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization expense	442,959	458,293
Gain on sale of fixed assets	(76,703)	(48,255)
Bad debt expense	141,348	121,015
Stock awards issued for services	861,189	372,086
Changes in operating assets and liabilities:
Changes in accounts receivable	548,419	(1,107,574)
Changes in income taxes receivable/payable	(790,946)	1,327,884
Changes in inventories	(2,074,974)	(646,870)
Changes in prepaid expenses	114,907	(205,781)
Changes in deferred tax asset/liability	91,890	(134,427)
Changes in accounts payable and accrued liabilities	274,744	716,436
Net Cash Provided by Operating Activities	3,123,331	2,765,526
INVESTING ACTIVITIES
Proceeds from sale of equipment	159,449	112,183
Sale of investments	368,379	66,045
Purchase of fixed assets	(1,184,126)	(181,566)
Net Cash Used in Investing Activities	(656,298)	(3,338)
FINANCING ACTIVITIES
Value of equity awards surrendered by employees for tax liability	(736,160)	(20,800)
Cash received in exercise of stock options	174,002	0
Purchase of Treasury stock	(4,000,000)	(2,840,932)
Net Cash Used in Financing Activities	(4,562,158)	(2,861,732)
Effect of exchange rate changes on cash	(51,997)	94,403
NET DECREASE IN CASH	(2,147,122)	(5,141)
CASH AT BEGINNING OF PERIOD	11,445,799	7,621,708
CASH AT END OF PERIOD	9,298,677	7,616,567
CASH PAID FOR:
Interest	0	0
Income taxes	$ 1,691,397	$ 67,078

CONDENSED FINANCIAL STATEMENTS

CONDENSED FINANCIAL STATEMENTS	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
CONDENSED FINANCIAL STATEMENTS	CONDENSED FINANCIAL STATEMENTS Except where the context otherwise requires, all references herein to the "Company," "Profire," "we," "us," "our," or similar words and phrases 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) necessary to present fairly the financial position, results of operations, and cash flows at June 30, 2018 and for all periods presented herein 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 ("US GAAP") 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 annual report on Form 10-K for the year ended December 31, 2017 ("Form 10-K"). The results of operations for the periods ended June 30, 2018 and 2017 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, 2018
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 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 Form 10-K, except as discussed below. Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605). Topic 606 requires entities to recognize revenue when control of the promised goods or services is transferred to customers. The amount of revenue recognized must reflect the consideration the entity expects to be entitled to receive in exchange for those goods or services. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. See Note 6 for further details. 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. 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.

INVENTORY

INVENTORY	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
INVENTORY	INVENTORY Inventories consisted of the following at each balance sheet date: As of June 30, 2018 December 31, 2017 Raw materials $ 27,482 $ 225,735 Finished goods 8,544,076 6,417,494 Work in process — — Subtotal 8,571,558 6,643,229 Reserve for Obsolescence (290,433 ) (197,146 ) Total $ 8,281,125 $ 6,446,083

STOCKHOLDERS' EQUITY

STOCKHOLDERS' EQUITY	6 Months Ended
	Jun. 30, 2018
Stockholders' Equity Note [Abstract]
STOCKHOLDERS' EQUITY	STOCKHOLDERS' EQUITY As of June 30, 2018 , and December 31, 2017 , the Company held 6,602,696 and 5,324,742 shares of its common stock in treasury at a total cost of $ 10,890,349 and $ 6,890,349 , respectively. On June 14, 2018 , the Board of Directors approved a grant of 52,281 RSUs to our independent directors. Half of these RSUs vested immediately and half will vest on June 14, 2019. On May 7, 2018 , Profire Energy, Inc. (the “Company”) entered into Stock Redemption Agreements (the “Stock Redemption Agreements”) with Hatch Family Holding Company, LLC ("Hatch Family Holding"), which is owned by certain trusts established by Brenton W. Hatch, the Company’s Chairman and Chief Executive Officer and Harold Albert, the Company’s co-founder and member of the Board of Directors. Pursuant to the Agreement, the Company repurchased 638,977 shares (“Redemption Shares") of its Common Stock from each of Messrs. Hatch and Albert, for an aggregate cash purchase price of $ 3,999,996 , which amount represents the number of Redemption Shares multiplied by the 30-day average of the closing price for the Profire Common Stock as reported by the Nasdaq Capital Market for the 30 trading days immediately preceding May 2, 2018 . In June 2018, Mr. Hatch, through Hatch Family Holding, and Mr. Albert, through an entity wholly-owned by him named 1831893 Alberta Ltd (“Alberta Ltd”), sold additional shares of Common Stock in an underwritten secondary offering (the “Secondary Offering”). Mr. Hatch sold a total of 3,125,000 shares of Common Stock, and Mr. Albert sold a total of 5,000,000 shares of Common Stock. Mr. Hatch sold shares pursuant to the Stock Redemption Agreements and the Secondary Offering in order to diversify his holding and to take advantage of estate planning opportunities. Mr. Albert sold shares pursuant to the Stock Redemption Agreements and the Secondary Offering in order to diversify his investment portfolio as part of his retirement from day-to-day operations of the Company in March 2017. Following the sale of shares by Mr. Hatch and Mr. Albert pursuant to the Redemption Agreements and the Secondary Offering, Mr. Hatch continues to own, directly or indirectly, over 17% of the Company’s outstanding Common Stock, and Mr. Albert continues to own, directly or indirectly, over 10% of the Company’s outstanding Common Stock.

SEGMENT INFORMATION

SEGMENT INFORMATION	6 Months Ended
	Jun. 30, 2018
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 2018 2017 2018 2017 Canada $ 1,272,056 $ 1,958,320 $ 2,570,888 $ 3,042,218 United States 10,067,705 7,506,631 20,938,590 14,247,229 Total Consolidated $ 11,339,761 $ 9,464,951 $ 23,509,478 $ 17,289,447 For the Three Months Ended June 30, For the Six Months Ended June 30, Profit (Loss) 2018 2017 2018 2017 Canada $ (265,830 ) $ 246,534 $ (700,494 ) $ (335,510 ) United States 1,980,097 1,066,113 4,290,992 2,248,229 Total Consolidated $ 1,714,267 $ 1,312,647 $ 3,590,498 $ 1,912,719 As of Long-lived assets June 30, 2018 December 31, 2017 Canada $ 2,261,126 $ 1,508,943 United States 15,022,005 15,771,048 Total Consolidated $ 17,283,131 $ 17,279,991

REVENUE

REVENUE	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
REVENUE	REVENUE On January 1, 2018 , we adopted Topic 606. We elected to use the modified retrospective approach for contracts that were not completed as of January 1, 2018 . Results for reporting periods beginning after January 1, 2018 are presented in accordance with Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with our historic accounting method under Topic 605. As a result of applying the new standard, there were no changes to any financial statement line item. Performance Obligations Our performance obligations include delivery of product, installation of product, and servicing of product. We recognize product revenue performance obligations when the product is delivered to the customer. Upon delivery and at that point in time, the control of the product is transferred to the customer. When product is installed or serviced, we recognize service revenue when the work has been completed and we are entitled to bill the customer for the hours worked. We do not engage in transactions acting as an agent. We usually satisfy our performance obligations within a few months of entering into the contract. Depending on the size of the project, the performance obligations could be satisfied sooner or later. Our customers have the right to return certain unused and unopened products within 90 days and incur an appropriate restocking fee. We provide a warranty on some of our products ranging from 90 days to two years , depending on the product. The amount accrued for expected returns and warranty claims was immaterial as of June 30, 2018 . Contract Balances All of the current contracts are expected to be completed within one year . We have elected to use the practical expedient in ASC 340-40-25-4 (regarding the incremental costs of obtaining a contact) for costs related to contracts that are estimated to be complete within one year and as a result, we have not recognized a contract asset account. If we had chosen not to use this practical expedient, we would not expect a material difference in the contract balances. We also did not have any contract liabilities because we have not received any payments in advance of recognizing revenue. Significant Judgments For most revenue contracts, we invoice the customer when the performance obligation is satisfied and payment is due 30 days later. Occasionally, other terms such as progress billings or longer terms are agreed to on a case-by-case basis. We do not have significant financing components, non-cash consideration, or variable consideration. We estimate the transaction price between performance obligations based on stand-alone product prices. As of June 30, 2018 , we had $ 2,629,162 allocated to performance obligations that were unsatisfied and we expect those obligations to be satisfied within one year . Disaggregation of Revenue All revenue recognized in the income statement is considered to be revenue from contracts with customers. The table below shows revenue by category: Three Months Ended June 30, 2018 Six months ended June 30, 2018 Electronics $ 4,413,545 $ 9,220,574 Manufactured 814,731 1,769,510 Re-Sell 5,496,134 11,188,940 Other 615,351 1,330,454 $ 11,339,761 $ 23,509,478

BASIC AND DILUTED EARNINGS PER

BASIC AND DILUTED EARNINGS PER SHARE	6 Months Ended
	Jun. 30, 2018
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: For the Three Months Ended June 30, 2018 2017 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders 1,714,267 48,266,199 $ 0.04 1,312,647 49,678,917 $ 0.03 Effect of Dilutive Securities Stock options & RSUs — 829,376 — 604,227 Diluted EPS Net income available to common stockholders + assumed conversions 1,714,267 49,095,575 $ 0.03 1,312,647 50,283,144 $ 0.03 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 months ended June 30, 2017 , but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These options, which expire between November 2019 and May 2020 , were still outstanding at June 30, 2018 . No shares were excluded for the three months ended June 30, 2018 . For the Six Months Ended June 30, 2018 2017 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders 3,590,498 48,467,136 $ 0.07 1,912,719 50,152,958 $ 0.04 Effect of Dilutive Securities Stock options & RSUs — 770,802 — 604,227 Diluted EPS Net income available to common stockholders + assumed conversions 3,590,498 49,237,938 $ 0.07 1,912,719 50,757,185 $ 0.04 Options to purchase 251,600 and 1,195,100 shares of common stock at a weighted average price of $ 3.89 and $ 2.03 per share were outstanding during the six months ended June 30, 2018 and 2017 , respectively, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These options, which expire between November 2019 and May 2020 , were still outstanding at June 30, 2018 .

CONTINGENCIES

CONTINGENCIES	6 Months Ended
	Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]
CONTINGENCIES	CONTINGENCIES As discussed in our most recent Annual Report on Form 10-K, during the first quarter of 2018 we became aware of a mechanical issue affecting one of the actuators we manufacture and sell. The actuator is an ancillary product sold separately from our burner-management systems (BMS) and chemical-management systems (CMS). We do not believe the mechanical issue presents any significant safety concerns for customers. At the time we filed our 10-K, we did not have enough information to effectively estimate the warranty costs we expected to incur, so we disclosed a wide possible range. During the first and second quarter of 2018, we were able to collect additional data regarding solutions to the problem and as of June 30, 2018 , we estimated the remaining warranty costs to be approximately $ 59,000 . This amount is reflected in accrued liabilities on the balance sheet.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
SUBSEQUENT EVENTS	SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company Management reviewed all material events through August 8, 2018 , and there were none to report.

ORGANIZATION AND SUMMARY OF S15

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	6 Months Ended
	Jun. 30, 2018
Accounting Policies [Abstract]
Revenue Recognition	Revenue Recognition In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update No. 2014-09 (Topic 606) "Revenue from Contracts with Customers," which supersedes the revenue recognition requirements in Topic 605 “Revenue Recognition” (Topic 605). Topic 606 requires entities to recognize revenue when control of the promised goods or services is transferred to customers. The amount of revenue recognized must reflect the consideration the entity expects to be entitled to receive in exchange for those goods or services. We adopted Topic 606 as of January 1, 2018 using the modified retrospective transition method. Performance Obligations Our performance obligations include delivery of product, installation of product, and servicing of product. We recognize product revenue performance obligations when the product is delivered to the customer. Upon delivery and at that point in time, the control of the product is transferred to the customer. When product is installed or serviced, we recognize service revenue when the work has been completed and we are entitled to bill the customer for the hours worked. We do not engage in transactions acting as an agent. We usually satisfy our performance obligations within a few months of entering into the contract. Depending on the size of the project, the performance obligations could be satisfied sooner or later. Our customers have the right to return certain unused and unopened products within 90 days and incur an appropriate restocking fee. We provide a warranty on some of our products ranging from 90 days to two years , depending on the product. The amount accrued for expected returns and warranty claims was immaterial as of June 30, 2018 . Contract Balances All of the current contracts are expected to be completed within one year . We have elected to use the practical expedient in ASC 340-40-25-4 (regarding the incremental costs of obtaining a contact) for costs related to contracts that are estimated to be complete within one year and as a result, we have not recognized a contract asset account. If we had chosen not to use this practical expedient, we would not expect a material difference in the contract balances. We also did not have any contract liabilities because we have not received any payments in advance of recognizing revenue. Significant Judgments For most revenue contracts, we invoice the customer when the performance obligation is satisfied and payment is due 30 days later. Occasionally, other terms such as progress billings or longer terms are agreed to on a case-by-case basis. We do not have significant financing components, non-cash consideration, or variable consideration. We estimate the transaction price between performance obligations based on stand-alone product prices.
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.
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.

INVENTORY (Tables)

INVENTORY (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventory	Inventories consisted of the following at each balance sheet date: As of June 30, 2018 December 31, 2017 Raw materials $ 27,482 $ 225,735 Finished goods 8,544,076 6,417,494 Work in process — — Subtotal 8,571,558 6,643,229 Reserve for Obsolescence (290,433 ) (197,146 ) Total $ 8,281,125 $ 6,446,083

SEGMENT INFORMATION (Tables)

SEGMENT INFORMATION (Tables)	6 Months Ended
	Jun. 30, 2018
Segment Reporting [Abstract]
Schedule of Segment Information for Geographic Areas	Segment information for these geographic areas is as follows: For the Three Months Ended June 30, For the Six Months Ended June 30, Sales 2018 2017 2018 2017 Canada $ 1,272,056 $ 1,958,320 $ 2,570,888 $ 3,042,218 United States 10,067,705 7,506,631 20,938,590 14,247,229 Total Consolidated $ 11,339,761 $ 9,464,951 $ 23,509,478 $ 17,289,447 For the Three Months Ended June 30, For the Six Months Ended June 30, Profit (Loss) 2018 2017 2018 2017 Canada $ (265,830 ) $ 246,534 $ (700,494 ) $ (335,510 ) United States 1,980,097 1,066,113 4,290,992 2,248,229 Total Consolidated $ 1,714,267 $ 1,312,647 $ 3,590,498 $ 1,912,719 As of Long-lived assets June 30, 2018 December 31, 2017 Canada $ 2,261,126 $ 1,508,943 United States 15,022,005 15,771,048 Total Consolidated $ 17,283,131 $ 17,279,991

REVENUE (Tables)

REVENUE (Tables)	6 Months Ended
	Jun. 30, 2018
Revenue from Contract with Customer [Abstract]
Disaggregation of Revenue by Product Line	The table below shows revenue by category: Three Months Ended June 30, 2018 Six months ended June 30, 2018 Electronics $ 4,413,545 $ 9,220,574 Manufactured 814,731 1,769,510 Re-Sell 5,496,134 11,188,940 Other 615,351 1,330,454 $ 11,339,761 $ 23,509,478

BASIC AND DILUTED EARNINGS PE19

BASIC AND DILUTED EARNINGS PER SHARE (Tables)	6 Months Ended
	Jun. 30, 2018
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	For the Six Months Ended June 30, 2018 2017 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders 3,590,498 48,467,136 $ 0.07 1,912,719 50,152,958 $ 0.04 Effect of Dilutive Securities Stock options & RSUs — 770,802 — 604,227 Diluted EPS Net income available to common stockholders + assumed conversions 3,590,498 49,237,938 $ 0.07 1,912,719 50,757,185 $ 0.04 The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: For the Three Months Ended June 30, 2018 2017 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders 1,714,267 48,266,199 $ 0.04 1,312,647 49,678,917 $ 0.03 Effect of Dilutive Securities Stock options & RSUs — 829,376 — 604,227 Diluted EPS Net income available to common stockholders + assumed conversions 1,714,267 49,095,575 $ 0.03 1,312,647 50,283,144 $ 0.03

ORGANIZATION AND SUMMARY OF S20

ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Oct. 09, 2008shareholdershares
Accounting Policies [Abstract]
Restricted common stock issued (shares) | shares	35,000,000
Restricted common stock of Parent issued to shareholders (shareholders) | shareholder	3

INVENTORY (Details)

INVENTORY (Details) - USD ($)	Jun. 30, 2018	Dec. 31, 2017
Inventory Disclosure [Abstract]
Raw materials	$ 27,482	$ 225,735
Finished goods	8,544,076	6,417,494
Work in process	0	0
Subtotal	8,571,558	6,643,229
Reserve for Obsolescence	(290,433)	(197,146)
Total	$ 8,281,125	$ 6,446,083

STOCKHOLDERS' EQUITY (Details)

STOCKHOLDERS' EQUITY (Details) - USD ($)	Jun. 14, 2018	May 07, 2018	Jun. 30, 2018	Dec. 31, 2017
Stockholders' Equity Note [Abstract]
Treasury stock (in shares)			6,602,696	5,324,742
Treasury stock, at cost			$ 10,890,349	$ 6,890,349
Shares repurchased during period (shares)		638,977
Value of stock repurchased during period		$ 3,999,996
Independent Directors | Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted (shares)	52,281
Chief Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares sold (shares)			3,125,000
Percentage of outstanding stock owned			17.00%
Board Member
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares sold (shares)			5,000,000
Percentage of outstanding stock owned			10.00%

SEGMENT INFORMATION (Details)

SEGMENT INFORMATION (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Segment Reporting Information [Line Items]
Sales	$ 11,339,761	$ 9,464,951	$ 23,509,478	$ 17,289,447
Profit (Loss)	1,714,267	1,312,647	3,590,498	1,912,719
Long-lived assets	17,283,131		17,283,131		$ 17,279,991
Canada
Segment Reporting Information [Line Items]
Sales	1,272,056	1,958,320	2,570,888	3,042,218
Profit (Loss)	(265,830)	246,534	(700,494)	(335,510)
Long-lived assets	2,261,126		2,261,126		1,508,943
United States
Segment Reporting Information [Line Items]
Sales	10,067,705	7,506,631	20,938,590	14,247,229
Profit (Loss)	1,980,097	$ 1,066,113	4,290,992	$ 2,248,229
Long-lived assets	$ 15,022,005		$ 15,022,005		$ 15,771,048

REVENUE - Narrative (Details)

REVENUE - Narrative (Details)	6 Months Ended
	Jun. 30, 2018USD ($)
Product Warranty Liability [Line Items]
Period of time that customers have right to return certain unused and unopened products	90 days
Period when contracts are expected to be completed	1 year
Performance obligations that were unsatisfied	$ 2,629,162
Minimum
Product Warranty Liability [Line Items]
Warranty provided on some products	90 days
Maximum
Product Warranty Liability [Line Items]
Warranty provided on some products	2 years

REVENUE - Disaggregation of Rev

REVENUE - Disaggregation of Revenue (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Disaggregation of Revenue [Line Items]
Revenue recognized in the income statement by product line	$ 11,339,761	$ 9,464,951	$ 23,509,478	$ 17,289,447
Electronics
Disaggregation of Revenue [Line Items]
Revenue recognized in the income statement by product line	4,413,545		9,220,574
Manufactured
Disaggregation of Revenue [Line Items]
Revenue recognized in the income statement by product line	814,731		1,769,510
Re-Sell
Disaggregation of Revenue [Line Items]
Revenue recognized in the income statement by product line	5,496,134		11,188,940
Other
Disaggregation of Revenue [Line Items]
Revenue recognized in the income statement by product line	$ 615,351		$ 1,330,454

BASIC AND DILUTED EARNINGS PE26

BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($)	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Income (Numerator)
Net income available to common stockholders	$ 1,714,267	$ 1,312,647	$ 3,590,498	$ 1,912,719
Stock options & RSUs	0	0	0	0
Net income available to common stockholders assumed conversions	$ 1,714,267	$ 1,312,647	$ 3,590,498	$ 1,912,719
Weighted Average Shares (Denominator)
Weighted average basic shares outstanding (shares)	48,266,199	49,678,917	48,467,136	50,152,958
Effect of Dilutive Securities, Stock options & RSUs (shares)	829,376	604,227	770,802	604,227
Weighted average diluted shares outstanding (shares)	49,095,575	50,283,144	49,237,938	50,757,185
Per-Share Amount
Basic earnings per share (dollars per share)	$ 0.04	$ 0.03	$ 0.07	$ 0.04
Diluted earnings per share (dollars per share)	$ 0.03	$ 0.03	$ 0.07	$ 0.04
Antidilutive securities excluded from computation of earnings per share (shares)	0	1,195,100
Weighted average price of options (dollars per share)		$ 2.03

CONTINGENCIES (Details)

CONTINGENCIES (Details) $ in Thousands	Jun. 30, 2018USD ($)
Ancillary product, actuator
Loss Contingencies [Line Items]
Estimated warranty costs accrued	$ 59