Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2018 | Nov. 06, 2018 | |
Document and Entity Information: | ||
Entity Registrant Name | Profire Energy Inc | |
Document Type | 10-Q | |
Document Period End Date | Sep. 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 | 48,083,063 | |
Entity Filer Category | Smaller Reporting Company | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,637,838 | $ 11,445,799 |
Short-term investments | 965,105 | 300,817 |
Short-term investments - other | 4,618,379 | 4,009,810 |
Accounts receivable, net | 8,094,228 | 8,069,255 |
Inventories, net | 10,350,075 | 6,446,083 |
Prepaid expenses & other current assets | 636,476 | 437,304 |
Income tax receivable | 231,967 | 0 |
Total Current Assets | 33,534,068 | 30,709,068 |
LONG-TERM ASSETS | ||
Net deferred tax asset | 50,253 | 72,817 |
Long-term investments | 8,023,172 | 8,517,182 |
Property and equipment, net | 7,695,650 | 7,197,499 |
Goodwill | 997,701 | 997,701 |
Intangible assets, net | 460,307 | 494,792 |
Total Long-Term Assets | 17,227,083 | 17,279,991 |
TOTAL ASSETS | 50,761,151 | 47,989,059 |
CURRENT LIABILITIES | ||
Accounts payable | 2,879,156 | 1,780,977 |
Accrued vacation | 259,808 | 196,646 |
Accrued liabilities | 1,509,881 | 1,044,284 |
Income taxes payable | 719,241 | 919,728 |
Total Current Liabilities | 5,368,086 | 3,941,635 |
TOTAL LIABILITIES | 5,368,086 | 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 | 54,686 | 53,931 |
Treasury stock, at cost | (10,890,349) | (6,890,349) |
Additional paid-in capital | 27,890,171 | 27,535,469 |
Accumulated other comprehensive loss | (2,459,865) | (2,200,462) |
Retained earnings | 30,798,422 | 25,548,835 |
TOTAL STOCKHOLDERS' EQUITY | 45,393,065 | 44,047,424 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 50,761,151 | $ 47,989,059 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 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) | 54,685,759 | 53,931,167 |
Common stock, shares outstanding (shares) | 48,083,063 | 48,606,425 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Other Comprehensive Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
REVENUES | ||||
Total Revenues | $ 11,499,902 | $ 10,050,192 | $ 35,009,380 | $ 27,339,677 |
COST OF SALES | ||||
Total Cost of Goods Sold | 5,401,776 | 4,988,397 | 16,872,447 | 12,933,838 |
GROSS PROFIT | 6,098,126 | 5,061,795 | 18,136,933 | 14,405,839 |
OPERATING EXPENSES | ||||
General and administrative expenses | 3,180,726 | 2,771,869 | 9,887,451 | 8,454,235 |
Research and development | 377,676 | 318,621 | 1,097,897 | 798,142 |
Depreciation and amortization expense | 143,328 | 125,898 | 401,114 | 405,811 |
Total Operating Expenses | 3,701,730 | 3,216,388 | 11,386,462 | 9,658,188 |
INCOME FROM OPERATIONS | 2,396,396 | 1,845,407 | 6,750,471 | 4,747,651 |
OTHER INCOME (EXPENSE) | ||||
Gain on sale of fixed assets | 43,904 | 14,017 | 129,989 | 62,492 |
Other income (expense) | (1,506) | 25,991 | (7,462) | 39,377 |
Interest income | 85,167 | 41,672 | 310,646 | 127,790 |
Total Other Income | 127,565 | 81,680 | 433,173 | 229,659 |
INCOME BEFORE INCOME TAXES | 2,523,961 | 1,927,087 | 7,183,644 | 4,977,310 |
INCOME TAX EXPENSE | 864,874 | 709,169 | 1,934,057 | 1,846,634 |
NET INCOME | 1,659,087 | 1,217,918 | 5,249,587 | 3,130,676 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation gain (loss) | 170,641 | 327,271 | (223,431) | 640,927 |
Unrealized gains (losses) on investments | (11,963) | 10,138 | (35,972) | 73,085 |
Total Other Comprehensive Income (Loss) | 158,678 | 337,409 | (259,403) | 714,012 |
NET COMPREHENSIVE INCOME | $ 1,817,765 | $ 1,555,327 | $ 4,990,184 | $ 3,844,688 |
BASIC EARNINGS PER SHARE (dollars per share) | $ 0.03 | $ 0.03 | $ 0.11 | $ 0.06 |
FULLY DILUTED EARNINGS PER SHARE (dollars per share) | $ 0.03 | $ 0.02 | $ 0.11 | $ 0.06 |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares) | 48,082,506 | 48,552,770 | 48,337,517 | 49,613,704 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (shares) | 48,852,167 | 49,369,835 | 49,107,178 | 50,346,333 |
Product | ||||
REVENUES | ||||
Total Revenues | $ 10,830,592 | $ 9,387,232 | $ 33,009,616 | $ 25,514,149 |
COST OF SALES | ||||
Total Cost of Goods Sold | 4,917,449 | 4,509,191 | 15,434,698 | 11,600,019 |
Service | ||||
REVENUES | ||||
Total Revenues | 669,310 | 662,960 | 1,999,764 | 1,825,528 |
COST OF SALES | ||||
Total Cost of Goods Sold | $ 484,327 | $ 479,206 | $ 1,437,749 | $ 1,333,819 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
OPERATING ACTIVITIES | ||
Net income | $ 5,249,587 | $ 3,130,676 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 667,085 | 675,223 |
Gain on sale of fixed assets | (120,825) | (62,310) |
Bad debt expense | 134,901 | 147,470 |
Stock awards issued for services | 916,795 | 648,244 |
Changes in operating assets and liabilities: | ||
Changes in accounts receivable | (184,951) | (2,024,858) |
Changes in income taxes receivable/payable | (432,575) | 840,343 |
Changes in inventories | (3,863,287) | 634,646 |
Changes in prepaid expenses | (172,497) | (93,669) |
Changes in deferred tax asset/liability | 22,564 | (139,298) |
Changes in accounts payable and accrued liabilities | 1,506,396 | 588,868 |
Net Cash Provided by Operating Activities | 3,723,193 | 4,345,335 |
INVESTING ACTIVITIES | ||
Proceeds from sale of equipment | 219,269 | 140,198 |
Sale of investments | (876,463) | (869,554) |
Purchase of fixed assets | (1,271,997) | (214,632) |
Net Cash Used in Investing Activities | (1,929,191) | (943,988) |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (737,024) | (25,667) |
Cash received in exercise of stock options | 174,002 | 0 |
Purchase of Treasury stock | (4,000,000) | (3,120,716) |
Net Cash Used in Financing Activities | (4,563,022) | (3,146,383) |
Effect of exchange rate changes on cash | (38,941) | 213,793 |
NET DECREASE IN CASH | (2,807,961) | 468,757 |
CASH AT BEGINNING OF PERIOD | 11,445,799 | 7,553,088 |
CASH AT END OF PERIOD | 8,637,838 | 8,021,845 |
CASH PAID FOR: | ||
Interest | 0 | 0 |
Income taxes | $ 2,164,149 | $ 1,282,157 |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2018 | |
Condensed Financial Information of Parent Company Only Disclosure [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 September 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 September 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 | 9 Months Ended |
Sep. 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 | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Inventory Disclosure [Abstract] | ||
INVENTORY | INVENTORY Inventories consisted of the following at each balance sheet date: As of September 30, 2018 December 31, 2017 Raw materials $ 300,699 $ 225,735 Finished goods 10,425,104 6,417,494 Work in process — — Subtotal 10,725,803 6,643,229 Reserve for Obsolescence (375,728) (197,146) Total $ 10,350,075 $ 6,446,083 | INVENTORY Inventories consisted of the following at each balance sheet date: As of September 30, 2018 December 31, 2017 Raw materials $ 300,699 $ 225,735 Finished goods 10,425,104 6,417,494 Work in process — — Subtotal 10,725,803 6,643,229 Reserve for Obsolescence (375,728) (197,146) Total $ 10,350,075 $ 6,446,083 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2018 | |
Stockholders' Equity Note [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITYAs of September 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. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 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 September 30, For the Nine Months Ended September 30, Sales 2018 2017 2018 2017 Canada $ 1,803,957 $ 1,982,739 $ 4,374,844 $ 5,024,957 United States 9,695,945 8,067,453 30,634,536 22,314,720 Total Consolidated $ 11,499,902 $ 10,050,192 $ 35,009,380 $ 27,339,677 For the Three Months Ended September 30, For the Nine Months Ended September 30, Profit (Loss) 2018 2017 2018 2017 Canada $ 24,224 $ 193,636 $ (676,268) $ (141,874) United States 1,634,863 1,024,282 5,925,855 3,272,550 Total Consolidated $ 1,659,087 $ 1,217,918 $ 5,249,587 $ 3,130,676 As of Long-Lived Assets September 30, 2018 December 31, 2017 Canada $ 2,317,839 $ 1,508,943 United States 14,909,244 15,771,048 Total Consolidated $ 17,227,083 $ 17,279,991 |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUEOn 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 for an appropriate restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. The amount accrued for expected returns and warranty claims was immaterial as of September 30, 2018. Contract Balances We have elected to use the practical expedient in ASC 340-40-25-4 (regarding recognition of the incremental costs of obtaining a contact) for costs related to contracts that are estimated to be completed within one year. All of the current contracts are expected to be completed 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 material contract liabilities because we typically do not receive 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. We elected the practical expedient by which disclosures are not required regarding the value of unsatisfied performance obligations for contracts with an original expected duration of one year or less. 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 September 30, 2018 Nine Months Ended September 30, 2018 Electronics $ 4,988,293 $ 14,208,867 Manufactured 599,951 2,369,461 Re-Sell 5,242,348 16,431,288 Service 669,310 1,999,764 $ 11,499,902 $ 35,009,380 |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 9 Months Ended |
Sep. 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 September 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 1,659,087 48,082,506 $ 0.03 1,217,918 48,552,770 $ 0.03 Effect of Dilutive Securities Stock options & RSUs — 769,661 — 817,065 Diluted EPS Net income available to common stockholders + assumed conversions 1,659,087 48,852,167 $ 0.03 1,217,918 49,369,835 $ 0.02 Options to purchase 251,600 and 1,569,730 shares of common stock at a weighted average price of $3.89 and $3.17 per share were outstanding during the three months ended September 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 September 30, 2018. For the Nine Months Ended September 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 5,249,587 48,337,517 $ 0.11 3,130,676 49,613,704 $ 0.06 Effect of Dilutive Securities Stock options & RSUs — 769,661 — 732,629 Diluted EPS Net income available to common stockholders + assumed conversions 5,249,587 49,107,178 $ 0.11 3,130,676 50,346,333 $ 0.06 Options to purchase 251,600 and 1,569,730 shares of common stock at a weighted average price of $3.89 and $3.17 per share were outstanding during the nine months ended September 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 September 30, 2018. |
CONTINGENCIES
CONTINGENCIES | 9 Months Ended |
Sep. 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 quarters of 2018, we were able to collect additional |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company Management reviewed all material events through November 7, 2018, and the following subsequent events occurred: On October 30, 2018, our Board of Directors authorized the repurchase of up to $2,000,000 worth of our stock at Management's discretion through October 31, 2019. As of the date of this filing, no shares have been repurchased under this plan. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue RecognitionIn 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. |
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. |
Revenue From Contract With Customer | 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 for an appropriate restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. The amount accrued for expected returns and warranty claims was immaterial as of September 30, 2018. Contract Balances We have elected to use the practical expedient in ASC 340-40-25-4 (regarding recognition of the incremental costs of obtaining a contact) for costs related to contracts that are estimated to be completed within one year. All of the current contracts are expected to be completed 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 material contract liabilities because we typically do not receive payments in advance of recognizing revenue. Significant Judgments |
INVENTORY (Tables)
INVENTORY (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at each balance sheet date: |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information for Geographic Areas | Segment information for these geographic areas is as follows: |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Product Line | The table below shows revenue by category: |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 9 Months Ended | |
Sep. 30, 2018 | Sep. 30, 2017 | |
Earnings Per Share [Abstract] | ||
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: | For the Nine Months Ended September 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 5,249,587 48,337,517 $ 0.11 3,130,676 49,613,704 $ 0.06 Effect of Dilutive Securities Stock options & RSUs — 769,661 — 732,629 Diluted EPS Net income available to common stockholders + assumed conversions 5,249,587 49,107,178 $ 0.11 3,130,676 50,346,333 $ 0.06 |
ORGANIZATION AND SUMMARY OF S_3
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 ($) | Sep. 30, 2018 | Dec. 31, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 300,699 | $ 225,735 |
Finished goods | 10,425,104 | 6,417,494 |
Work in process | 0 | 0 |
Subtotal | 10,725,803 | 6,643,229 |
Reserve for Obsolescence | (375,728) | (197,146) |
Total | $ 10,350,075 | $ 6,446,083 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) - USD ($) | Sep. 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 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||
Sales | $ 11,499,902 | $ 10,050,192 | $ 35,009,380 | $ 27,339,677 | |
Profit (Loss) | 1,659,087 | 1,217,918 | 5,249,587 | 3,130,676 | |
Long-lived assets | 17,227,083 | 17,227,083 | $ 17,279,991 | ||
Canada | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 1,803,957 | 1,982,739 | 4,374,844 | 5,024,957 | |
Profit (Loss) | 24,224 | 193,636 | (676,268) | (141,874) | |
Long-lived assets | 2,317,839 | 2,317,839 | 1,508,943 | ||
United States | |||||
Segment Reporting Information [Line Items] | |||||
Sales | 9,695,945 | 8,067,453 | 30,634,536 | 22,314,720 | |
Profit (Loss) | 1,634,863 | $ 1,024,282 | 5,925,855 | $ 3,272,550 | |
Long-lived assets | $ 14,909,244 | $ 14,909,244 | $ 15,771,048 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 9 Months Ended |
Sep. 30, 2018 | |
Product Warranty Liability [Line Items] | |
Period of time that customers have right to return certain unused and unopened products | 90 days |
Revenue performance obligation | All of the current contracts are expected to be completed within one year. |
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 | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized in the income statement by product line | $ 11,499,902 | $ 10,050,192 | $ 35,009,380 | $ 27,339,677 |
Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized in the income statement by product line | 4,988,293 | 14,208,867 | ||
Manufactured | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized in the income statement by product line | 599,951 | 2,369,461 | ||
Re-Sell | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized in the income statement by product line | 5,242,348 | 16,431,288 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue recognized in the income statement by product line | $ 669,310 | $ 1,999,764 |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2018 | Sep. 30, 2017 | Sep. 30, 2018 | Sep. 30, 2017 | |
Income (Numerator) | ||||
Net income available to common stockholders | $ 1,659,087 | $ 1,217,918 | $ 5,249,587 | $ 3,130,676 |
Stock options & RSUs | 0 | 0 | 0 | 0 |
Net income available to common stockholders assumed conversions | $ 1,659,087 | $ 1,217,918 | $ 5,249,587 | $ 3,130,676 |
Weighted Average Shares (Denominator) | ||||
Weighted average basic shares outstanding (shares) | 48,082,506 | 48,552,770 | 48,337,517 | 49,613,704 |
Effect of Dilutive Securities, Stock options & RSUs (shares) | 769,661 | 817,065 | 769,661 | 732,629 |
Weighted average diluted shares outstanding (shares) | 48,852,167 | 49,369,835 | 49,107,178 | 50,346,333 |
Per-Share Amount | ||||
Basic earnings per share (dollars per share) | $ 0.03 | $ 0.03 | $ 0.11 | $ 0.06 |
Diluted earnings per share (dollars per share) | $ 0.03 | $ 0.02 | $ 0.11 | $ 0.06 |
Antidilutive securities excluded from computation of earnings per share (shares) | 251,600 | 1,569,730 | 251,600 | 1,569,730 |
Weighted average price of options (dollars per share) | $ 3.89 | $ 3.17 | $ 3.89 | $ 3.17 |
CONTINGENCIES (Details)
CONTINGENCIES (Details) $ in Thousands | Sep. 30, 2018USD ($) |
Ancillary product, actuator | |
Loss Contingencies [Line Items] | |
Estimated warranty costs accrued | $ 60 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event - USD ($) | Nov. 07, 2018 | Oct. 30, 2018 |
Subsequent Event [Line Items] | ||
Authorized shares, amount | $ 2,000,000 | |
Shares repurchased (in shares) | 0 |