Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
Document Transition Report | false | |
Entity File Number | 001-36378 | |
Entity Registrant Name | PROFIRE ENERGY, INC. | |
Entity Incorporation, State or Country Code | NV | |
Entity Tax Identification Number | 20-0019425 | |
Entity Address, Address Line One | 321 South 1250 West, Suite 1 | |
Entity Address, City or Town | Lindon | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84042 | |
City Area Code | 801 | |
Local Phone Number | 796-5127 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common, $0.001 Par Value | |
Trading Symbol | PFIE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 48,239,008 | |
Amendment Flag | false | |
Entity Central Index Key | 0001289636 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 9,921,375 | $ 9,148,312 |
Short-term investments | 2,087,332 | 2,388,601 |
Accounts receivable, net | 3,787,084 | 3,719,508 |
Inventories, net (note 3) | 7,911,996 | 8,414,772 |
Prepaid expenses and other current assets (note 4) | 773,146 | 1,678,428 |
Income tax receivable | 785,590 | 486,154 |
Total Current Assets | 25,266,523 | 25,835,775 |
LONG-TERM ASSETS | ||
Long-term investments | 7,132,675 | 6,064,294 |
Financing right-of-use asset | 28,758 | 50,094 |
Property and equipment, net | 11,721,692 | 12,021,811 |
Intangible assets, net | 1,660,504 | 1,771,870 |
Goodwill | 2,579,381 | 2,579,381 |
Total Long-Term Assets | 23,123,010 | 22,487,450 |
TOTAL ASSETS | 48,389,533 | 48,323,225 |
CURRENT LIABILITIES | ||
Accounts payable | 1,257,437 | 1,178,979 |
Accrued liabilities (note 5) | 1,486,578 | 1,196,870 |
Current financing lease liability (note 6) | 30,238 | 39,451 |
Total Current Liabilities | 2,774,253 | 2,415,300 |
LONG-TERM LIABILITIES | ||
Net deferred income tax liability | 601,616 | 522,870 |
Long-term financing lease liability (note 6) | 0 | 12,669 |
TOTAL LIABILITIES | 3,375,869 | 2,950,839 |
STOCKHOLDERS' EQUITY (note 7) | ||
Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding | 0 | 0 |
Common stock: $0.001 par value, 100,000,000 shares authorized: 51,651,386 issued and 48,239,008 outstanding at June 30, 2021, and 51,384,961 issued and 47,972,583 outstanding at December 31, 2020 | 51,651 | 51,385 |
Treasury stock, at cost | (5,353,019) | (5,353,019) |
Additional paid-in capital | 30,582,504 | 30,293,472 |
Accumulated other comprehensive loss | (1,798,278) | (2,148,924) |
Retained earnings | 21,530,806 | 22,529,472 |
TOTAL STOCKHOLDERS' EQUITY | 45,013,664 | 45,372,386 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 48,389,533 | $ 48,323,225 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Stock Transactions, Parenthetical Disclosures [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 100,000,000 | 100,000,000 |
Common stock, shares issued (in shares) | 51,651,386 | 51,384,961 |
Common stock, shares outstanding (in shares) | 48,239,008 | 47,972,583 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Loss - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
REVENUES (note 8) | ||||
Total Revenues | $ 6,034,283 | $ 4,359,479 | $ 11,126,632 | $ 11,806,621 |
COST OF SALES | ||||
Total Cost of Goods Sold | 3,376,551 | 2,272,614 | 6,294,213 | 6,555,080 |
GROSS PROFIT | 2,657,732 | 2,086,865 | 4,832,419 | 5,251,541 |
OPERATING EXPENSES | ||||
General and administrative expenses | 2,783,872 | 2,753,773 | 5,338,408 | 6,026,311 |
Research and development | 301,445 | 229,548 | 558,336 | 639,274 |
Depreciation and amortization expense | 166,852 | 180,997 | 334,337 | 328,469 |
Total Operating Expenses | 3,252,169 | 3,164,318 | 6,231,081 | 6,994,054 |
LOSS FROM OPERATIONS | (594,437) | (1,077,453) | (1,398,662) | (1,742,513) |
OTHER INCOME (EXPENSE) | ||||
Gain on sale of fixed assets | 38,492 | 157,455 | 112,393 | 157,455 |
Other income (expense) | 4,836 | (1,665) | 4,739 | (1,318) |
Interest income | 28,569 | 77,532 | 49,631 | 151,925 |
Total Other Income | 71,897 | 233,322 | 166,763 | 308,062 |
LOSS BEFORE INCOME TAXES | (522,540) | (844,131) | (1,231,899) | (1,434,451) |
INCOME TAX BENEFIT | 125,374 | 35,628 | 233,233 | 260,684 |
NET LOSS | (397,166) | (808,503) | (998,666) | (1,173,767) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||||
Foreign currency translation gain (loss) | 163,485 | 375,267 | 303,091 | (570,156) |
Unrealized gains (losses) on investments | 55,529 | 72,875 | 47,555 | (84,479) |
Total Other Comprehensive Income (Loss) | 219,014 | 448,142 | 350,646 | (654,635) |
COMPREHENSIVE LOSS | $ (178,152) | $ (360,361) | $ (648,020) | $ (1,828,402) |
BASIC LOSS PER SHARE (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.02) |
FULLY DILUTED LOSS PER SHARE (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.02) |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 48,054,136 | 47,723,208 | 48,022,295 | 47,607,825 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 48,054,136 | 47,723,208 | 48,022,295 | 47,607,825 |
Product | ||||
REVENUES (note 8) | ||||
Total Revenues | $ 5,374,539 | $ 3,999,139 | $ 10,032,074 | $ 10,860,097 |
COST OF SALES | ||||
Total Cost of Goods Sold | 2,910,879 | 1,944,389 | 5,448,513 | 5,778,071 |
Service | ||||
REVENUES (note 8) | ||||
Total Revenues | 659,744 | 360,340 | 1,094,558 | 946,524 |
COST OF SALES | ||||
Total Cost of Goods Sold | $ 465,672 | $ 328,225 | $ 845,700 | $ 777,009 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Retained Earnings |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 47,411,977 | |||||
Balance, beginning of period at Dec. 31, 2019 | $ 46,571,586 | $ 50,824 | $ 29,584,172 | $ (2,415,460) | $ (5,353,019) | $ 24,705,069 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 66,348 | 66,348 | ||||
Stock issued in exercise of stock options (in shares) | 2,000 | |||||
Stock issued in exercise of stock options | 2,020 | $ 2 | 2,018 | |||
Stock issued in settlement of RSUs (in shares) | 271,684 | |||||
Stock issued in settlement of RSUs | 419,373 | $ 272 | 419,101 | |||
Tax withholdings paid related to stock based compensation | (148,879) | (148,879) | ||||
Foreign currency translation | (945,423) | (945,423) | ||||
Unrealized gains (losses) on investments | (157,354) | (157,354) | ||||
Net loss | (365,264) | (365,264) | ||||
Balance, end of period (in shares) at Mar. 31, 2020 | 47,685,661 | |||||
Balance, end of period at Mar. 31, 2020 | 45,442,407 | $ 51,098 | 29,922,760 | (3,518,237) | (5,353,019) | 24,339,805 |
Balance, beginning of period (in shares) at Dec. 31, 2019 | 47,411,977 | |||||
Balance, beginning of period at Dec. 31, 2019 | 46,571,586 | $ 50,824 | 29,584,172 | (2,415,460) | (5,353,019) | 24,705,069 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (1,173,767) | |||||
Balance, end of period (in shares) at Jun. 30, 2020 | 47,913,115 | |||||
Balance, end of period at Jun. 30, 2020 | 45,265,896 | $ 51,325 | 30,106,383 | (3,070,095) | (5,353,019) | 23,531,302 |
Balance, beginning of period (in shares) at Mar. 31, 2020 | 47,685,661 | |||||
Balance, beginning of period at Mar. 31, 2020 | 45,442,407 | $ 51,098 | 29,922,760 | (3,518,237) | (5,353,019) | 24,339,805 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 183,850 | 183,850 | ||||
Stock issued in settlement of RSUs (in shares) | 227,454 | |||||
Stock issued in settlement of RSUs | 0 | $ 227 | (227) | |||
Foreign currency translation | 375,267 | 375,267 | ||||
Unrealized gains (losses) on investments | 72,875 | 72,875 | ||||
Net loss | (808,503) | (808,503) | ||||
Balance, end of period (in shares) at Jun. 30, 2020 | 47,913,115 | |||||
Balance, end of period at Jun. 30, 2020 | 45,265,896 | $ 51,325 | 30,106,383 | (3,070,095) | (5,353,019) | 23,531,302 |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 47,972,583 | |||||
Balance, beginning of period at Dec. 31, 2020 | 45,372,386 | $ 51,385 | 30,293,472 | (2,148,924) | (5,353,019) | 22,529,472 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 125,043 | 125,043 | ||||
Stock issued in settlement of RSUs (in shares) | 49,113 | |||||
Stock issued in settlement of RSUs | 0 | $ 49 | (49) | |||
Tax withholdings paid related to stock based compensation | (26,629) | (26,629) | ||||
Foreign currency translation | 139,606 | 139,606 | ||||
Unrealized gains (losses) on investments | (7,974) | (7,974) | ||||
Net loss | (601,500) | (601,500) | ||||
Balance, end of period (in shares) at Mar. 31, 2021 | 48,021,696 | |||||
Balance, end of period at Mar. 31, 2021 | 45,000,932 | $ 51,434 | 30,391,837 | (2,017,292) | (5,353,019) | 21,927,972 |
Balance, beginning of period (in shares) at Dec. 31, 2020 | 47,972,583 | |||||
Balance, beginning of period at Dec. 31, 2020 | 45,372,386 | $ 51,385 | 30,293,472 | (2,148,924) | (5,353,019) | 22,529,472 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net loss | (998,666) | |||||
Balance, end of period (in shares) at Jun. 30, 2021 | 48,239,008 | |||||
Balance, end of period at Jun. 30, 2021 | 45,013,664 | $ 51,651 | 30,582,504 | (1,798,278) | (5,353,019) | 21,530,806 |
Balance, beginning of period (in shares) at Mar. 31, 2021 | 48,021,696 | |||||
Balance, beginning of period at Mar. 31, 2021 | 45,000,932 | $ 51,434 | 30,391,837 | (2,017,292) | (5,353,019) | 21,927,972 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 207,084 | 207,084 | ||||
Stock issued in settlement of RSUs (in shares) | 217,312 | |||||
Stock issued in settlement of RSUs | 0 | $ 217 | (217) | |||
Tax withholdings paid related to stock based compensation | (16,200) | (16,200) | ||||
Foreign currency translation | 163,485 | 163,485 | ||||
Unrealized gains (losses) on investments | 55,529 | 55,529 | ||||
Net loss | (397,166) | (397,166) | ||||
Balance, end of period (in shares) at Jun. 30, 2021 | 48,239,008 | |||||
Balance, end of period at Jun. 30, 2021 | $ 45,013,664 | $ 51,651 | $ 30,582,504 | $ (1,798,278) | $ (5,353,019) | $ 21,530,806 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
OPERATING ACTIVITIES | ||
Net loss | $ (998,666) | $ (1,173,767) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 683,597 | 566,791 |
Gain on sale of fixed assets | (112,393) | (153,973) |
Bad debt expense | (32,463) | 236,005 |
Stock awards issued for services | 332,127 | 250,198 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (7,313) | 3,248,693 |
Income taxes receivable/payable | (299,436) | (1,761) |
Inventories | 577,341 | 445,634 |
Prepaid expenses and other current assets | 988,464 | 168,718 |
Deferred tax asset/liability | 78,746 | 104,166 |
Accounts payable and accrued liabilities | 345,818 | (2,843,685) |
Net Cash Provided by Operating Activities | 1,555,822 | 847,019 |
INVESTING ACTIVITIES | ||
Proceeds from sale of property and equipment | 69,484 | 0 |
Sale (purchase) of investments | (719,817) | 1,057,404 |
Purchase of property and equipment | (93,049) | (994,410) |
Net Cash Provided by (Used in) Investing Activities | (743,382) | 62,994 |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (42,829) | (148,879) |
Cash received in exercise of stock options | 0 | 2,020 |
Principal paid towards lease liability | (21,749) | (34,267) |
Net Cash Used in Financing Activities | (64,578) | (181,126) |
Effect of exchange rate changes on cash | 25,201 | (65,506) |
NET INCREASE IN CASH | 773,063 | 663,381 |
CASH AT BEGINNING OF PERIOD | 9,148,312 | 7,358,856 |
CASH AT END OF PERIOD | 9,921,375 | 8,022,237 |
CASH PAID FOR: | ||
Interest | 2,353 | 4,247 |
Income taxes | 17,150 | 0 |
NON-CASH FINANCING AND INVESTING ACTIVITIES | ||
Common stock issued in settlement of accrued bonuses | $ 0 | $ 419,373 |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS | 6 Months Ended |
Jun. 30, 2021 | |
Condensed Financial Information 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 subsidiaries, 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, stockholders' equity, and cash flows at June 30, 2021 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, 2020 ("Form 10-K"). The results of operations for the three and six month periods ended June 30, 2021 and 2020 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, 2021 | |
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 condensed consolidated financial statements. The Company's accounting policies conform to "US GAAP." The Company provides burner-management products, solutions and services for the oil and gas industry primarily in the US and Canadian 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. 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. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at each balance sheet date: As of June 30, 2021 December 31, 2020 Raw materials $ 356,899 $ 328,772 Finished goods 8,578,380 9,229,298 Work in process — — Subtotal 8,935,279 9,558,070 Reserve for obsolescence (1,023,283) (1,143,298) Total $ 7,911,996 $ 8,414,772 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following at each balance sheet date: As of June 30, 2021 December 31, 2020 Assets classified as held for sale $ — $ 623,805 Prepaid inventory 445,683 542,313 Prepaid insurance 148,396 217,465 Interest receivables 64,604 65,984 Vehicle trade-in credits 6,993 55,733 Other 107,470 173,128 Total $ 773,146 $ 1,678,428 In the table above, the assets classified as "held for sale" consisted of an office building located in Spruce Grove, Alberta, Canada. During the six months ended June 30, 2021, we sold the remaining three bays that were part of the office building, which resulted in a gain of $42,378 CAD that was recorded during the period. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following at each balance sheet date: As of June 30, 2021 December 31, 2020 Employee-related payables $ 1,160,053 $ 789,573 Inventory-related payables 154,215 158,519 Warranty liabilities 40,608 71,852 Other 131,702 176,926 Total $ 1,486,578 $ 1,196,870 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
LEASES | LEASES We have leases for office equipment and office space. The leases for office equipment are classified as financing leases and the typical term is 36 months. We have the option to extend most office equipment leases, but we do not intend to do so. Accordingly, no extensions have been recognized in the right-of-use asset or lease liability. The office equipment lease payments are not variable and the lease agreements do not include any non-lease components, residual value guarantees, or restrictions. There are no interest rates implicit in the office equipment lease agreements, so we have used our incremental borrowing rate to determine the discount rate to be applied to our financing leases for purposes of determining our lease liabilities. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 10.3 months. The following table shows the components of financing lease cost: For the Three Months Ended June 30, For the Six Months Ended June 30, Financing Lease Cost 2021 2020 2021 2020 Amortization of right-of-use assets $ 10,211 $ 15,121 $ 21,203 $ 33,497 Interest on lease liabilities 417 3,375 2,353 4,247 Total financing lease cost $ 10,628 $ 18,496 $ 23,556 $ 37,744 The following table reconciles future minimum lease payments to the discounted finance lease liability: Years ending December 31, Amount 2021 - remaining $ 18,079 2022 12,803 2023 — 2024 — 2025 — Thereafter — Total future minimum lease payments $ 30,882 Less: Amount representing interest 644 Present value of future payments $ 30,238 Current portion $ 30,238 Long-term portion $ — Because our office space leases are substantially all considered to be short-term, we have elected not to recognize them on our balance sheet under the short-term recognition exemption. During the three and six months ended June 30, 2021, we recognized $19,000 and $35,263, respectively, in short-term lease costs associated with office space leases. |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As of June 30, 2021, and December 31, 2020, the Company held 3,412,378 shares of its common stock in treasury at a total cost of $5,353,019, respectively. As of June 30, 2021, the Company had 361,409 restricted stock units, 480,667 performance based restricted stock units, and 934,700 stock options outstanding with $846,876 in remaining compensation expense to be recognized over the next 1.9 years. 2021 EIP and LTIP On May 28, 2021, the Compensation Committee (the "Compensation Committee") of the Board of Directors of the Company (the “Board”) approved the 2021 Executive Incentive Plan (the “2021 EIP”) for Brenton W. Hatch, the Company’s Executive Chairman, Ryan W. Oviatt, the Company’s Co-CEO, Co-President, and CFO, Cameron M. Tidball, the Company’s Co-CEO and Co-President, Jay G. Fugal, the Company’s Vice President of Operations, and Patrick D. Fisher, the Company’s Vice President of Product Development. The 2021 EIP provides for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2021. If earned, the incentive compensation will be payable in cash and stock, and the stock portion of the incentive compensation is intended to constitute an award under the Company’s 2014 Equity Incentive Plan, as amended (the “Plan”). Under the terms of the 2021 EIP, each participating executive officer has been assigned a target incentive compensation amount for fiscal 2021. The target incentive compensation amount for Mr. Hatch is $200,000, the target incentive compensation amount for Mr. Oviatt is $150,000, the target incentive compensation amount for Mr. Tidball is $150,000, the target incentive compensation for Mr. Fugal is $54,000, and the target incentive compensation for Mr. Fisher is $51,000 CAD. Under no circumstance can the participants receive more than two times the assigned target incentive compensation. Participants will be eligible to receive incentive compensation based upon reaching or exceeding performance goals established by the Compensation Committee for fiscal 2021. The performance goals in the 2021 EIP are based on the Company’s total revenue, EBITDA, and a non-financial milestone relating to revenue source diversification. Each of these performance goals will be weighted one third in calculating incentive compensation amounts. The incentive compensation amounts earned under the 2021 EIP, if any, will be paid 50% in cash and 50% in shares of restricted stock under the Plan. In no event shall the total award exceed 200% of the target incentive compensation amount for each participant, or exceed any limitations otherwise set forth in the Plan. The actual incentive compensation amounts, if any, will be determined by the Compensation Committee upon the completion of fiscal 2021 and paid by March 15, 2022, subject to all applicable tax withholding. In addition to the 2021 EIP, the Board also approved as a long-term incentive plan the grants of a restricted stock unit awards to Messrs. Oviatt, Tidball, Fugal, and Fisher pursuant to the Plan (the “2021 LTIP”). The 2021 LTIP consists of total awards of up to 204,543 restricted stock units (“Units”) to Mr. Oviatt, up to 204,543 Units to Mr. Tidball, up to 85,908 Units to Mr. Fugal, and up to 47,973 Units to Mr. Fisher, pursuant to two separate restricted stock unit award agreements (collectively, the “Restricted Stock Unit Award Agreements”) between the Company and each participant. One agreement covers 33% of each award recipient’s Units that are subject to time-based vesting, and the other agreement covers the remaining 67% of such award recipient’s Units that may vest based on performance metrics. Upon vesting, the award agreements entitle the award recipients to receive one share of the Company’s common stock for each vested Unit. The vesting period of the 2021 LTIP began on January 1, 2021, and terminates on December 31, 2023 (the “Performance Vesting Date”). The Units subject to time-based vesting, including 68,181 Units to Mr. Oviatt, 68,181 Units for Mr. Tidball, 28,636 Units to Mr. Fugal, and 15,991 Units to Mr. Fisher, will vest in three equal annual installments beginning December 31, 2021 and ending on December 31, 2023 if the award recipients’ employment continues with the Company through such dates. The performance-vesting Units, including up to 136,362 Units for Mr. Oviatt, 136,362 Units for Mr. Tidball, 57,272 Units for Mr. Fugal, and 31,982 Units to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 (the “Performance Period”) based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return 1/3 135% 194% 253% Relative Total Shareholder Return 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% One-third of such performance-vesting Units, consisting of 45,454 Units for Mr. Oviatt, 45,454 Units for Mr. Tidball, 19,091 Units for Mr. Fugal, and 10,661 Units for Mr. Fisher, are eligible to vest for each of the three performance metrics identified in the table above. The number of Units that will vest for each performance metric on the Performance Vesting Date shall be determined as follows: • if the “Target” level for such performance metric is not achieved, none of the Units relating to such performance metric will vest; • if the “Target” level (but no higher level) for such performance metric is achieved, 50% of the Units relating to such performance metric will vest; • if the “Above Target” level (but no higher level) for such performance metric is achieved, 75% of the Units relating to such performance metric will vest; and • if the “Outstanding” level for such performance metric is achieved, 100% of the Units relating to such performance metric will vest. The foregoing summary of the 2021 EIP, the 2021 LTIP and the Restricted Stock Unit Award Agreements is qualified in its entirety by the text of the 2021 EIP and each of the Restricted Stock Unit Award Agreements, which the Company has filed as an exhibits to this report. 2020 EIP and LTIP Due to economic uncertainties including those caused by the COVID-19 pandemic, the Board, with the support of the Company's executives, elected not to adopt an executive incentive plan ("2020 EIP") or long-term incentive plan ("2020 LTIP") for 2020. The Board and executives believed this was an appropriate short-term measure that helped align the Company's cost structure with the extraordinary conditions that affected the industry in which we operate. 2021 RSUs On February 18, 2021, the Board, upon the recommendation of the Compensation Committee, approved a restricted stock award of 18,852 shares of common stock to each of Cameron M. Tidball and Ryan W. Oviatt. Messrs. Tidball and Oviatt entered into Restricted Stock Unit Award Agreements, the forms of which were approved pursuant to the Plan. These restricted stock awards, which vested immediately, were settled by the issuance of a total of 27,334 shares of common stock, net of tax withholding and resulted in $45,999 of compensation expense. On June 16, 2021, pursuant to the annual renewal of director compensation, the Board approved a grant of 189,471 RSUs to the Company's independent directors. Half of the RSUs vested immediately on the date of grant and the remaining 50% of the RSUs will vest on the first anniversary of the grant date or at the Company's next annual meeting of stockholders, whichever is earlier. The awards will result in total compensation expense of approximately $216,000 to be recognized over the vesting period. 2020 RSUs On June 17, 2020, pursuant to the annual renewal of director compensation, the Board approved a grant of 270,966 RSUs to the Company's independent directors. Half of the RSUs vested immediately on the date of grant and the remaining 50% of the RSUs will vest on the first anniversary of the grant date or at the Company's next annual meeting of stockholders, whichever is earlier. The awards will result in total compensation expense of $252,000 to be recognized over the vesting period. Mr. Arlen B. Crouch resigned from his position as a member of the Board, effective August 3, 2020. Mr. Crouch’s resignation did not result from any disagreements with management or the Board. On the effective date of Mr. Crouch's resignation, all of his unvested RSUs were forfeited. The related compensation expense associated with Mr. Crouch's unvested RSUs will be recaptured. On July 30, 2020, the Board appointed Colleen Larkin Bell to serve as a director to fill the vacancy resulting from Mr. Crouch’s resignation, effective August 3, 2020. Ms. Bell was also appointed as Chair of the Nominating Committee and as a member of the Audit and Compensation Committees. As part of her compensation for her service as a director and committee member, on August 21, 2020, the board approved a grant of 92,934 RSUs. Half of the RSUs vested immediately on the date of the grant and the remaining 50% of the RSUs will vest on the first anniversary of the grant date. The awards will result in total compensation expense of $72,953 to be recognized over the vesting period. 2020 Stock Options On March 17, 2020 (the "March Grant Date"), the Board approved a grant of options to purchase 115,200 shares of the Company's common stock at a strike price of $0.81 to various employees (the "March 2020 Options"). The March 2020 Options terminate four years from the March Grant Date and become exercisable as to one-third of the shares of common stock covered thereby on each anniversary of the March Grant Date for the next three years following the March Grant Date. The March 2020 Options resulted in a total compensation expense of $40,280. On July 2, 2020 (the "July Grant Date"), upon the recommendation of the Compensation Committee, the Board approved the grant of a non-qualified stock option to purchase 100,000 shares of the Company’s common stock to each of Mr. Oviatt and Mr. Tidball under the Plan and pursuant to the standard form of notice of stock option grant and stock option agreement under the plan (the “July 2020 Options”). The exercise price of the July 2020 Options is equal to the closing bid price of the Company's common stock on July 2, 2020, or $0.8439 per share. The July 2020 Options vest equally over a period of three years from the July Grant Date. Vesting occurs on the anniversary date of the July Grant Date, with one-third of the total shares vesting on each of the first three anniversaries of the July Grant Date. Vesting is contingent upon the executive’s continued employment with the Company on each applicable vesting date. The July 2020 Options expire on July 2, 2024. The July 2020 Options will result in a total compensation expense of $79,431 to be recognized over the vesting period. On August 21, 2020 (the "August Grant Date"), the Board approved a grant of options to purchase 630,000 shares of the Company's common stock at a strike price of $0.785 to various employees (the "August 2020 Options"). The August 2020 Options terminate four years from the August Grant Date and become exercisable as to one-third of the shares of common stock covered thereby on each anniversary of the August Grant Date for the next three years following the August Grant Date. The August 2020 Options will result in a total compensation expense of $233,111 to be recognized over the vesting period. |
REVENUE
REVENUE | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUEPerformance Obligations Our performance obligations include providing product and servicing our product. We recognize product revenue performance obligations in most cases when the product is delivered to the customer. Occasionally, if we are shipping the product on a customer’s account, we recognize revenue when the product has been shipped. At that point in time, the control of the product is transferred to the customer. When we perform service work, we apply the practical expedient that allows us to recognize service revenue when we have the right to invoice the customer for the work completed. We do not engage in transactions acting as an agent. The time needed to complete our performance obligations varies based on the size of the project; however, we typically satisfy our performance obligations within a few months of entering into the applicable sales contract or service contract. Our customers have the right to return certain unused and unopened products within 90 days for a restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. See N ote 5 for the amount accrued for expected returns and warranty claims as of June 30, 2021. 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 contract) for costs related to contracts that are estimated to be completed within one year. All of our current sales contracts and service 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. 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: For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Electronics $ 2,016,876 $ 1,644,668 $ 3,868,675 $ 4,301,755 Manufactured 324,830 142,234 561,640 543,092 Re-Sell 3,032,833 2,212,237 5,601,759 6,015,250 Service 659,744 360,340 1,094,558 946,524 Total Revenue $ 6,034,283 $ 4,359,479 $ 11,126,632 $ 11,806,621 |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 2020 Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net loss available to common stockholders $ (397,166) 48,054,136 $ (0.01) $ (808,503) 47,723,208 $ (0.02) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net loss available to common stockholders + assumed conversions $ (397,166) 48,054,136 $ (0.01) $ (808,503) 47,723,208 $ (0.02) Stock options and RSUs to purchase 1,776,776 shares of common stock at a weighted average price of $1.15 per share were outstanding during the three months ended June 30, 2021, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These RSUs, which expire between December 2022 and December 2024, were still outstanding at June 30, 2021. Stock options and RSUs to purchase 534,924 shares of common stock at a weighted average price of $0.83 per share were outstanding during the three months ended June 30, 2020, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These options, which expire between March 2021 and March 2024, were still outstanding at June 30, 2020. For the Six Months Ended June 30, 2021 2020 Income (loss) (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ (998,666) 48,022,295 $ (0.02) $ (1,173,767) 47,607,825 $ (0.02) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ (998,666) 48,022,295 $ (0.02) $ (1,173,767) 47,607,825 $ (0.02) Stock options and RSUs to purchase 1,776,776 shares of common stock at a weighted average price of $1.15 per share were outstanding during the six months ended June 30, 2021, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These RSUs, which expire between December 2022 and December 2024, were still outstanding at June 30, 2021. Stock options and RSUs to purchase 555,866 shares of common stock at a weighted average price of $0.98 per share were outstanding during the six months ended June 30, 2020, but were not included in the computation of diluted EPS because the impact of these shares would be antidilutive. These options, which expire between March 2021 and March 2024, were still outstanding at June 30, 2020. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Jun. 30, 2021 | |
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 2021 2020 2021 2020 Canada $ 1,035,377 $ 585,695 $ 1,863,822 $ 1,609,417 United States 4,998,906 3,773,784 9,262,810 10,197,204 Total Consolidated $ 6,034,283 $ 4,359,479 $ 11,126,632 $ 11,806,621 For the Three Months Ended June 30, For the Six Months Ended June 30, Profit (Loss) 2021 2020 2021 2020 Canada $ (556,713) $ (264,163) $ (877,475) $ (586,232) United States 159,547 (544,340) (121,191) (587,535) Total Consolidated $ (397,166) $ (808,503) $ (998,666) $ (1,173,767) As of Long-Lived Assets June 30, 2021 December 31, 2020 Canada $ 5,971,607 $ 6,049,790 United States 5,778,843 6,022,115 Total Consolidated $ 11,750,450 $ 12,071,905 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTSIn accordance with ASC 855 "Subsequent Events," Company management reviewed all material events through the date this report was issued and there were no subsequent events to report. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
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. |
Revenue | Performance Obligations Our performance obligations include providing product and servicing our product. We recognize product revenue performance obligations in most cases when the product is delivered to the customer. Occasionally, if we are shipping the product on a customer’s account, we recognize revenue when the product has been shipped. At that point in time, the control of the product is transferred to the customer. When we perform service work, we apply the practical expedient that allows us to recognize service revenue when we have the right to invoice the customer for the work completed. We do not engage in transactions acting as an agent. The time needed to complete our performance obligations varies based on the size of the project; however, we typically satisfy our performance obligations within a few months of entering into the applicable sales contract or service contract. Our customers have the right to return certain unused and unopened products within 90 days for a restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. See N ote 5 for the amount accrued for expected returns and warranty claims as of June 30, 2021. 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 contract) for costs related to contracts that are estimated to be completed within one year. All of our current sales contracts and service 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. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at each balance sheet date: As of June 30, 2021 December 31, 2020 Raw materials $ 356,899 $ 328,772 Finished goods 8,578,380 9,229,298 Work in process — — Subtotal 8,935,279 9,558,070 Reserve for obsolescence (1,023,283) (1,143,298) Total $ 7,911,996 $ 8,414,772 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Other Current Assets | Prepaid expenses and other current assets consisted of the following at each balance sheet date: As of June 30, 2021 December 31, 2020 Assets classified as held for sale $ — $ 623,805 Prepaid inventory 445,683 542,313 Prepaid insurance 148,396 217,465 Interest receivables 64,604 65,984 Vehicle trade-in credits 6,993 55,733 Other 107,470 173,128 Total $ 773,146 $ 1,678,428 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following at each balance sheet date: As of June 30, 2021 December 31, 2020 Employee-related payables $ 1,160,053 $ 789,573 Inventory-related payables 154,215 158,519 Warranty liabilities 40,608 71,852 Other 131,702 176,926 Total $ 1,486,578 $ 1,196,870 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components of Financing Lease Cost | The following table shows the components of financing lease cost: For the Three Months Ended June 30, For the Six Months Ended June 30, Financing Lease Cost 2021 2020 2021 2020 Amortization of right-of-use assets $ 10,211 $ 15,121 $ 21,203 $ 33,497 Interest on lease liabilities 417 3,375 2,353 4,247 Total financing lease cost $ 10,628 $ 18,496 $ 23,556 $ 37,744 |
Future Minimum Lease Payments to Discounted Finance Lease Liability | The following table reconciles future minimum lease payments to the discounted finance lease liability: Years ending December 31, Amount 2021 - remaining $ 18,079 2022 12,803 2023 — 2024 — 2025 — Thereafter — Total future minimum lease payments $ 30,882 Less: Amount representing interest 644 Present value of future payments $ 30,238 Current portion $ 30,238 Long-term portion $ — |
Equity (Tables)
Equity (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Share-based Compensation Arrangement By Share-based Payment Award, Performance Metrics | The performance-vesting Units, including up to 136,362 Units for Mr. Oviatt, 136,362 Units for Mr. Tidball, 57,272 Units for Mr. Fugal, and 31,982 Units to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 (the “Performance Period”) based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return 1/3 135% 194% 253% Relative Total Shareholder Return 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue by Product Line | The table below shows revenue by category: For the Three Months Ended June 30, For the Six Months Ended June 30, 2021 2020 2021 2020 Electronics $ 2,016,876 $ 1,644,668 $ 3,868,675 $ 4,301,755 Manufactured 324,830 142,234 561,640 543,092 Re-Sell 3,032,833 2,212,237 5,601,759 6,015,250 Service 659,744 360,340 1,094,558 946,524 Total Revenue $ 6,034,283 $ 4,359,479 $ 11,126,632 $ 11,806,621 |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Three Months Ended June 30, 2021 2020 Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net loss available to common stockholders $ (397,166) 48,054,136 $ (0.01) $ (808,503) 47,723,208 $ (0.02) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net loss available to common stockholders + assumed conversions $ (397,166) 48,054,136 $ (0.01) $ (808,503) 47,723,208 $ (0.02) For the Six Months Ended June 30, 2021 2020 Income (loss) (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ (998,666) 48,022,295 $ (0.02) $ (1,173,767) 47,607,825 $ (0.02) Effect of Dilutive Securities Stock options & RSUs — — — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ (998,666) 48,022,295 $ (0.02) $ (1,173,767) 47,607,825 $ (0.02) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 2021 2020 2021 2020 Canada $ 1,035,377 $ 585,695 $ 1,863,822 $ 1,609,417 United States 4,998,906 3,773,784 9,262,810 10,197,204 Total Consolidated $ 6,034,283 $ 4,359,479 $ 11,126,632 $ 11,806,621 For the Three Months Ended June 30, For the Six Months Ended June 30, Profit (Loss) 2021 2020 2021 2020 Canada $ (556,713) $ (264,163) $ (877,475) $ (586,232) United States 159,547 (544,340) (121,191) (587,535) Total Consolidated $ (397,166) $ (808,503) $ (998,666) $ (1,173,767) As of Long-Lived Assets June 30, 2021 December 31, 2020 Canada $ 5,971,607 $ 6,049,790 United States 5,778,843 6,022,115 Total Consolidated $ 11,750,450 $ 12,071,905 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 356,899 | $ 328,772 |
Finished goods | 8,578,380 | 9,229,298 |
Work in process | 0 | 0 |
Subtotal | 8,935,279 | 9,558,070 |
Reserve for obsolescence | (1,023,283) | (1,143,298) |
Total | $ 7,911,996 | $ 8,414,772 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of other current assets (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Assets classified as held for sale | $ 0 | $ 623,805 |
Prepaid inventory | 445,683 | 542,313 |
Prepaid insurance | 148,396 | 217,465 |
Interest receivables | 64,604 | 65,984 |
Vehicle trade-in credits | 6,993 | 55,733 |
Other | 107,470 | 173,128 |
Total | $ 773,146 | $ 1,678,428 |
PREPAID EXPENSES AND OTHER CU_4
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021CAD ($)bay | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Number of office building bays sold | bay | 3 |
Gain on sale of office building bays | $ | $ 42,378 |
ACCRUED LIABILITIES - Schedule
ACCRUED LIABILITIES - Schedule of Accrued Liabilities (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Other Liabilities Disclosure [Abstract] | ||
Employee-related payables | $ 1,160,053 | $ 789,573 |
Inventory-related payables | 154,215 | 158,519 |
Warranty liabilities | 40,608 | 71,852 |
Other | 131,702 | 176,926 |
Total | $ 1,486,578 | $ 1,196,870 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 3 Months Ended | 6 Months Ended |
Jun. 30, 2021USD ($) | Jun. 30, 2021USD ($) | |
Leases [Abstract] | ||
Lease term | 36 months | 36 months |
Weighted average discount rate | 4.50% | 4.50% |
Weighted average remaining lease term | 10 months 9 days | 10 months 9 days |
Short-term lease cost | $ 19,000 | $ 35,263 |
LEASES - Components of Financin
LEASES - Components of Financing Lease Cost (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 10,211 | $ 15,121 | $ 21,203 | $ 33,497 |
Interest on lease liabilities | 417 | 3,375 | 2,353 | 4,247 |
Total financing lease cost | $ 10,628 | $ 18,496 | $ 23,556 | $ 37,744 |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments to Discounted Finance Lease Liability (Details) - USD ($) | Jun. 30, 2021 | Dec. 31, 2020 |
Years ending December 31, | ||
2021 - remaining | $ 18,079 | |
2022 | 12,803 | |
2023 | 0 | |
2024 | 0 | |
2025 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 30,882 | |
Less: Amount representing interest | 644 | |
Present value of future payments | 30,238 | |
Current portion | 30,238 | $ 39,451 |
Long-term portion | $ 0 | $ 12,669 |
STOCKHOLDERS' EQUITY (Details)
STOCKHOLDERS' EQUITY (Details) | Jun. 16, 2021USD ($)shares | May 28, 2021USD ($)bayshares | May 28, 2021CAD ($)bayshares | Feb. 18, 2021USD ($)shares | Aug. 21, 2020USD ($)$ / sharesshares | Jul. 02, 2020USD ($)shares | Jun. 17, 2020USD ($)shares | Mar. 17, 2020USD ($)$ / sharesshares | Jun. 30, 2021USD ($)shares | Dec. 31, 2020USD ($)shares |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Treasury stock (in shares) | 3,412,378 | 3,412,378 | ||||||||
Treasury stock, at cost | $ | $ 5,353,019 | $ 5,353,019 | ||||||||
Compensation expense | $ | $ 846,876 | |||||||||
Compensation expense recognition period | 1 year 10 months 24 days | |||||||||
Number of shares approved (in shares) | 630,000 | 115,200 | ||||||||
Strike price (in dollars per share) | $ / shares | $ 0.785 | $ 0.81 | ||||||||
2021 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of bonus paid in cash | 50.00% | 50.00% | ||||||||
Percentage of bonus paid in stock | 50.00% | 50.00% | ||||||||
Target payout percentage | 200.00% | |||||||||
2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of performance metrics | bay | 3 | 3 | ||||||||
2021 LTIP | Below Target | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of award covered by metric | 0.00% | 0.00% | ||||||||
2021 LTIP | Target | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of award covered by metric | 50.00% | 50.00% | ||||||||
2021 LTIP | Above Target | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of award covered by metric | 75.00% | 75.00% | ||||||||
2021 LTIP | Outstanding | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of award covered by metric | 100.00% | 100.00% | ||||||||
Tranche One | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Tranche One | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of award covered by metric | 33.00% | 33.00% | ||||||||
Tranche Two | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Tranche Two | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Percentage of award covered by metric | 67.00% | 67.00% | ||||||||
Tranche Three | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting percentage | 33.33% | |||||||||
Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Units outstanding (in shares) | 361,409 | |||||||||
Compensation expense | $ | $ 45,999 | |||||||||
Number of shares granted (shares) | 189,471 | 92,934 | 270,966 | |||||||
Award vesting period | 1 year | 1 year | ||||||||
Shares issued (in shares) | 27,334 | |||||||||
Award vesting percentage | 50.00% | 50.00% | 50.00% | |||||||
Unrecognized compensation cost | $ | $ 216,000 | $ 72,953 | $ 252,000 | |||||||
Performance Shares | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Units outstanding (in shares) | 480,667 | |||||||||
Performance Shares | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Award vesting period | 3 years | 3 years | ||||||||
Award vesting percentage | 33.33% | 33.33% | ||||||||
Employee Stock Option | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Stock options outstanding (in shares) | 934,700 | |||||||||
Compensation expense | $ | $ 233,111 | $ 79,431 | $ 40,280 | |||||||
Award vesting period | 3 years | 3 years | 3 years | |||||||
Expiration period | 4 years | 4 years | ||||||||
Co-Chief Executive Offiver | Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 18,852 | |||||||||
Chief Financial Officer | 2021 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Payments to Employees | $ | $ 150,000 | |||||||||
Chief Financial Officer | Restricted Stock Units | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 18,852 | |||||||||
Chief Financial Officer | Restricted Stock Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 204,543 | 204,543 | ||||||||
Chief Financial Officer | Time-based Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 68,181 | 68,181 | ||||||||
Chief Financial Officer | Performance Shares | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 136,362 | 136,362 | ||||||||
Chief Financial Officer | Performance Shares | Tranche One | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 45,454 | 45,454 | ||||||||
Vice President of Operations | 2021 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Payments to Employees | $ | $ 54,000 | |||||||||
Vice President of Operations | Tranche One | 2014 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 100,000 | |||||||||
Vice President of Operations | Tranche Two | 2014 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 0.8439 | |||||||||
Vice President of Operations | Restricted Stock Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 85,908 | 85,908 | ||||||||
Vice President of Operations | Time-based Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 28,636 | 28,636 | ||||||||
Vice President of Operations | Performance Shares | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 57,272 | 57,272 | ||||||||
Vice President of Operations | Performance Shares | Tranche One | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 19,091 | 19,091 | ||||||||
Chief Business Development Officer | 2021 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Payments to Employees | $ | $ 150,000 | |||||||||
Chief Business Development Officer | Restricted Stock Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 204,543 | 204,543 | ||||||||
Chief Business Development Officer | Time-based Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 68,181 | 68,181 | ||||||||
Chief Business Development Officer | Performance Shares | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 136,362 | 136,362 | ||||||||
Chief Business Development Officer | Performance Shares | Tranche One | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 45,454 | 45,454 | ||||||||
Vice President Of Production Development | 2021 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Payments to Employees | $ | $ 51,000 | |||||||||
Vice President Of Production Development | Restricted Stock Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 47,973 | 47,973 | ||||||||
Vice President Of Production Development | Time-based Units | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 15,991 | 15,991 | ||||||||
Vice President Of Production Development | Performance Shares | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 31,982 | 31,982 | ||||||||
Vice President Of Production Development | Performance Shares | Tranche One | 2021 LTIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Number of shares granted (shares) | 10,661 | 10,661 | ||||||||
Chief Executive Officer | 2021 EIP | ||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||
Payments to Employees | $ | $ 200,000 |
STOCKHOLDERS' EQUITY - Performa
STOCKHOLDERS' EQUITY - Performance Metrics (Details) | May 28, 2021 |
Weight | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 33.33% |
Performance metric percentage, relative total shareholder return | 33.33% |
Performance metric percentage, EBITDA | 33.33% |
Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 135.00% |
Performance metric percentage, relative total shareholder return | 75.00% |
Performance metric percentage, EBITDA | 10.00% |
Above Target | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 194.00% |
Performance metric percentage, relative total shareholder return | 50.00% |
Performance metric percentage, EBITDA | 15.00% |
Outstanding | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Performance metric percentage, total shareholder return | 253.00% |
Performance metric percentage, relative total shareholder return | 25.00% |
Performance metric percentage, EBITDA | 20.00% |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Disaggregation of Revenue [Line Items] | |
Return period | 90 days |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Product warranty term | 90 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Product warranty term | 2 years |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 6,034,283 | $ 4,359,479 | $ 11,126,632 | $ 11,806,621 |
Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,016,876 | 1,644,668 | 3,868,675 | 4,301,755 |
Manufactured | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 324,830 | 142,234 | 561,640 | 543,092 |
Re-Sell | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 3,032,833 | 2,212,237 | 5,601,759 | 6,015,250 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 659,744 | $ 360,340 | $ 1,094,558 | $ 946,524 |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Loss (Numerator) | ||||||
Net loss available to common stockholders | $ (397,166) | $ (601,500) | $ (808,503) | $ (365,264) | $ (998,666) | $ (1,173,767) |
Stock options & RSUs | 0 | 0 | 0 | 0 | ||
Net loss available to common stockholders + assumed conversions | $ (397,166) | $ (808,503) | $ (998,666) | $ (1,173,767) | ||
Weighted Average Shares (Denominator) | ||||||
Weighted average basic shares outstanding (in shares) | 48,054,136 | 47,723,208 | 48,022,295 | 47,607,825 | ||
Effect of Dilutive Securities, Stock options & RSUs (in shares) | 0 | 0 | 0 | 0 | ||
Weighted average diluted shares outstanding (in shares) | 48,054,136 | 47,723,208 | 48,022,295 | 47,607,825 | ||
Per-Share Amount | ||||||
Basic earnings per share (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.02) | ||
Diluted earnings per share (in dollars per share) | $ (0.01) | $ (0.02) | $ (0.02) | $ (0.02) |
BASIC AND DILUTED EARNINGS PE_4
BASIC AND DILUTED EARNINGS PER SHARE - Narrative (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,776,776 | 534,924 | 1,776,776 | 555,866 |
Weighted average (in dollars per share) | $ 1.15 | $ 0.83 | $ 1.15 | $ 0.98 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Information [Line Items] | |||||||
Sales | $ 6,034,283 | $ 4,359,479 | $ 11,126,632 | $ 11,806,621 | |||
Profit (Loss) | (397,166) | $ (601,500) | (808,503) | $ (365,264) | (998,666) | (1,173,767) | |
Long-Lived Assets | 11,750,450 | 11,750,450 | $ 12,071,905 | ||||
Canada | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales | 1,035,377 | 585,695 | 1,863,822 | 1,609,417 | |||
Profit (Loss) | (556,713) | (264,163) | (877,475) | (586,232) | |||
Long-Lived Assets | 5,971,607 | 5,971,607 | 6,049,790 | ||||
United States | |||||||
Segment Reporting Information [Line Items] | |||||||
Sales | 4,998,906 | 3,773,784 | 9,262,810 | 10,197,204 | |||
Profit (Loss) | 159,547 | $ (544,340) | (121,191) | $ (587,535) | |||
Long-Lived Assets | $ 5,778,843 | $ 5,778,843 | $ 6,022,115 |