Profire Energy (PFIE) 10-Q 7 Nov 18 2018 Q3 Quarterly report Financial data

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