Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 07, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
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 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 51,803,316 | ||
Trading Symbol | PFIE | ||
Entity Common Stock, Shares Outstanding | 47,337,974 | ||
Documents Incorporated by Reference | Portions of the Profire Energy, Inc. Definitive Proxy Statement for the 2023 Annual Meeting of Stockholders are incorporated by reference into Part III of this report | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001289636 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Sadler, Gibb & Associates, LLC, |
Auditor Location | Salt Lake City, Utah |
Auditor Firm ID | 3627 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 7,384,578 | $ 8,188,270 |
Short-term investments (note 2) | 1,154,284 | 1,013,683 |
Accounts receivable, net | 10,886,145 | 6,262,799 |
Inventories, net (note 3) | 10,293,980 | 7,185,248 |
Prepaid expenses and other current assets (note 4) | 2,314,639 | 1,025,276 |
Income tax receivable | 0 | 560,445 |
Total Current Assets | 32,033,626 | 24,235,721 |
LONG-TERM ASSETS | ||
Net deferred tax asset | 0 | 163,254 |
Long-term investments (note 2) | 7,503,419 | 8,259,809 |
Financing right-of-use asset | 120,239 | 65,280 |
Property and equipment, net (note 5) | 10,423,964 | 11,185,539 |
Intangible assets, net (note 6) | 1,268,907 | 1,549,138 |
Goodwill (note 6) | 2,579,381 | 2,579,381 |
Total Long-Term Assets | 21,895,910 | 23,802,401 |
TOTAL ASSETS | 53,929,536 | 48,038,122 |
CURRENT LIABILITIES | ||
Accounts payable | 2,955,506 | 1,822,559 |
Accrued liabilities (note 7) | 3,573,994 | 1,872,348 |
Current financing lease liability (note 8) | 53,646 | 30,214 |
Income taxes payable | 205,169 | 0 |
Total Current Liabilities | 6,788,315 | 3,725,121 |
LONG-TERM LIABILITIES | ||
Net deferred income tax liability | 488,858 | 136,106 |
Long-term financing lease liability (note 8) | 67,883 | 35,912 |
TOTAL LIABILITIES | 7,345,056 | 3,897,139 |
STOCKHOLDERS' EQUITY (note 9) | ||
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: 52,143,901 issued and 47,105,771 outstanding at December 31, 2022, and 51,720,142 issued and 47,643,233 outstanding at December 31, 2021 | 52,144 | 51,720 |
Treasury stock, at cost | (7,336,323) | (6,107,593) |
Additional paid-in capital | 31,737,843 | 30,819,394 |
Accumulated other comprehensive loss | (3,294,873) | (2,100,467) |
Retained earnings | 25,425,689 | 21,477,929 |
TOTAL STOCKHOLDERS' EQUITY | 46,584,480 | 44,140,983 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 53,929,536 | $ 48,038,122 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [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) | 52,143,901 | 51,720,142 |
Common stock shares outstanding (in shares) | 47,105,771 | 47,643,233 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
REVENUES | ||
Total revenues | $ 45,936,643 | $ 26,356,176 |
COST OF SALES | ||
Total Cost of Goods Sold | 24,285,253 | 14,955,161 |
GROSS PROFIT | 21,651,390 | 11,401,015 |
OPERATING EXPENSES | ||
General and administrative | 14,396,763 | 11,533,496 |
Research and development | 1,432,000 | 1,120,080 |
Depreciation and amortization | 628,019 | 762,439 |
Total Operating Expenses | 16,456,782 | 13,416,015 |
INCOME (LOSS) FROM OPERATIONS | 5,194,608 | (2,015,000) |
OTHER INCOME (EXPENSE) | ||
Gain on sale of fixed assets | 318,075 | 192,183 |
Other income (expense) | (3,626) | 8,715 |
Interest income | 177,125 | 133,201 |
Total Other Income | 491,574 | 334,099 |
INCOME (LOSS) BEFORE INCOME TAXES | 5,686,182 | (1,680,901) |
INCOME TAX BENEFIT (EXPENSE) (Note 12) | (1,738,422) | 629,358 |
NET INCOME (LOSS) | 3,947,760 | (1,051,543) |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation gain (loss) | (670,167) | 54,006 |
Unrealized losses on investments | (524,239) | (5,549) |
Total Other Comprehensive Income (Loss) | (1,194,406) | 48,457 |
COMPREHENSIVE INCOME (LOSS) | $ 2,753,354 | $ (1,003,086) |
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share) | $ 0.08 | $ (0.02) |
FULLY DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share) | $ 0.08 | $ (0.02) |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 47,161,101 | 48,070,581 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 48,447,342 | 48,070,581 |
Cost of goods sold-product | ||
REVENUES | ||
Total revenues | $ 42,318,263 | $ 23,690,994 |
COST OF SALES | ||
Total Cost of Goods Sold | 21,425,176 | 12,825,906 |
Cost of goods sold-services | ||
REVENUES | ||
Total revenues | 3,618,380 | 2,665,182 |
COST OF SALES | ||
Total Cost of Goods Sold | $ 2,860,077 | $ 2,129,255 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - 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, 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 | ||||||
Stock based compensation | 567,077 | 567,077 | ||||
Stock issued in exercise of stock options (in shares) | 7,000 | |||||
Stock issued in exercise of stock options | 6,053 | $ 7 | 6,046 | |||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 328,181 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 0 | $ 328 | (328) | |||
Tax withholdings paid related to stock based compensation | $ (46,873) | (46,873) | ||||
Treasury stock repurchased (in shares) | (664,531) | |||||
Foreign currency translation | $ 54,006 | 54,006 | ||||
Unrealized gains (losses) on investments | (5,549) | (5,549) | ||||
Net income (loss) available to common stockholders | (1,051,543) | (1,051,543) | ||||
Balance, end of period (in shares) at Dec. 31, 2021 | 47,643,233 | |||||
Balance, end of period at Dec. 31, 2021 | 44,140,983 | $ 51,720 | 30,819,394 | (2,100,467) | (6,107,593) | 21,477,929 |
Increase (Decrease) in Stockholders' Equity | ||||||
Stock based compensation | $ 814,769 | 814,769 | ||||
Stock issued in exercise of stock options (in shares) | 38,200 | 38,200 | ||||
Stock issued in exercise of stock options | $ 34,399 | $ 38 | 34,361 | |||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 385,559 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 212,788 | $ 386 | 212,402 | |||
Tax withholdings paid related to stock based compensation | $ (143,083) | (143,083) | ||||
Treasury stock repurchased (in shares) | (961,221) | (961,221) | ||||
Treasury stock repurchased | $ (1,228,730) | (1,228,730) | ||||
Foreign currency translation | (670,167) | (670,167) | ||||
Unrealized gains (losses) on investments | (524,239) | (524,239) | ||||
Net income (loss) available to common stockholders | 3,947,760 | 3,947,760 | ||||
Balance, end of period (in shares) at Dec. 31, 2022 | 47,105,771 | |||||
Balance, end of period at Dec. 31, 2022 | $ 46,584,480 | $ 52,144 | $ 31,737,843 | $ (3,294,873) | $ (7,336,323) | $ 25,425,689 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
OPERATING ACTIVITIES | ||
Net income (loss) | $ 3,947,760 | $ (1,051,543) |
Adjustments to reconcile net loss to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,101,044 | 1,255,647 |
Gain on sale of fixed assets | (318,075) | (192,183) |
Bad debt expense | 77,704 | 15,979 |
Stock awards issued for services | 814,769 | 567,077 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (4,745,871) | (2,595,483) |
Income taxes receivable/payable | 765,650 | (101,990) |
Inventories | (3,240,049) | 1,247,004 |
Prepaid expenses and other current assets | (1,337,076) | 705,575 |
Deferred tax asset/liability | 512,274 | (524,791) |
Accounts payable and accrued liabilities | 2,937,947 | 1,323,635 |
Net Cash Provided by Operating Activities | 516,077 | 648,927 |
INVESTING ACTIVITIES | ||
Proceeds from sale of property and equipment | 520,068 | 177,851 |
Sale (purchase) of investments | 91,601 | (826,827) |
Purchase of property and equipment | (601,012) | (168,527) |
Net Cash Provided by (Used in) Investing Activities | 10,657 | (817,503) |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (145,930) | (46,873) |
Cash received in exercise of stock options | 33,863 | 6,053 |
Purchase of treasury stock | (1,228,730) | (754,574) |
Principal paid towards lease liability | (34,214) | (40,745) |
Net Cash Used in Financing Activities | (1,375,011) | (836,139) |
Effect of exchange rate changes on cash | 44,585 | 44,673 |
NET DECREASE IN CASH | (803,692) | (960,042) |
CASH AT BEGINNING OF PERIOD | 8,188,270 | 9,148,312 |
CASH AT END OF PERIOD | 7,384,578 | 8,188,270 |
CASH PAID FOR: | ||
Interest | 17,726 | 3,205 |
Income taxes | 847,712 | 17,150 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Common stock issued in settlement of accrued bonuses | $ 212,788 | $ 0 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
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 Profire Energy, Inc. and subsidiary (the "Company") is presented to assist in understanding the Company's consolidated financial statements. The Company's accounting policies conform to accounting principles generally accepted in the United States of America ("US GAAP"). The Company specializes in the engineering and design of burner-management systems and solutions used on a variety of oilfield and other industrial natural-draft and forced-air combustion applications. We sell our products and services primarily throughout North America and Canada. Recent Accounting Pronouncements Accounting Standards Update No. 2021-10 —Government Assistance (Topic 832) —Disclosures by Business Entities about Government Assistance This update was issued to increase the transparency of government assistance by requiring entities to disclose the type of government assistance received, how the assistance was accounted for, and the effect of the assistance on the entity's financial statements. The amendments in this update are effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. We evaluated the impact of this new guidance and determined that we will adopt the provisions of ASU 2021-10 as of December 15, 2021 on a retrospective basis. See Note 17 for additional information. The Company has evaluated all other recent accounting pronouncements and determined that the adoption of other pronouncements applicable to the Company has not had, nor is expected to have, a material impact on the Company's financial position, results of operations, or cash flows. Use of Estimates The preparation of financial statements in accordance with US GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. Foreign Currency and Comprehensive Income The functional currencies of the Company and its subsidiaries in the United States and Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the subsidiary Profire Combustion, Inc. were translated to USD using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.7370 and 0.7859 were used to convert the Company's December 31, 2022 and December 31, 2021 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7679 and 0.7845 for the years ended December 31, 2022 and December 31, 2021, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of Stockholders' Equity. In addition to foreign currency translation gains and losses, the Company recognizes unrealized holding gains and losses on available-for-sale securities as part of comprehensive income, as discussed in the investments policy below. Cash and Cash Equivalents The Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investments-other." Certificates of deposit with remaining maturities greater than one year are classified as "long term investments-other." Our cash and cash equivalents held in FDIC insured institutions can exceed the federally insured limit periodically and at the end of reporting periods. Our balances exceeded federally insured amounts by $5,328,825 and $6,077,964 as of December 31, 2022 and December 31, 2021, respectively. Accounts Receivable Receivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $220,745 and $153,909 as of December 31, 2022 and December 31, 2021, respectively. Uncollectible accounts are written off after all collection efforts have been exhausted and Credit Committee approval is granted. Bad debt expense recognized was $77,704 and $15,979 for the years ended December 31, 2022 and December 31, 2021, respectively. Inventories The Company's inventories are valued at the lower of cost (the purchase price, including additional fees) or market. Inventory costs are determined based on the average cost basis. A reserve for slow-moving and potentially obsolete inventories is recorded as of each balance sheet date and total inventories are presented net of that reserve. Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Securities with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year, and mutual funds expected to be liquidated within one year from the balance sheet date, are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Company's available-for-sale securities in Accumulated Other Comprehensive Income (Loss) in the Shareholders' Equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its Statements of Operations. Dividend and interest income earned on all investments is included in earnings as other income. Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. Goodwill Goodwill represents the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition. Goodwill is reviewed for impairment annually on December 31, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the "FASB") Accounting Standards Codification ("ASC") 350, "Intangibles—Goodwill and Other" ("ASC 350"). Goodwill is tested for impairment at the reporting unit level. The reporting unit for goodwill testing purposes is the consolidated company as a whole. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, "Intangibles—Goodwill and Other." Under such guidance, other intangible assets with definite lives are amortized over their estimated useful lives and tested annually for impairment or more frequently as circumstances warrant. Intangible assets with indefinite lives are tested annually for impairment. Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued or retired, any gains are included as part of additional paid-in capital. Losses upon reissuance or retirement reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. Revenue Recognition The Company's revenue recognition practices follow ASC 606, "Revenue from Contracts with Customers". Refer to Note 10 for further details. Cost of Sales The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. Advertising Costs The Company classifies expenses for advertising as general and administrative expenses and recognizes the expense when incurred. The Company incurred advertising costs of $59,792 and $51,212 during the years ended December 31, 2022 and December 31, 2021, respectively. Stock-Based Compensation The Company follows the provisions of ASC 718, "Share-Based Payments," which requires all share-based payments to employees to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock options. The intrinsic value method is used to value restricted stock and restricted stock units. The Company has elected to recognize forfeitures as they occur. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. Sales to the Company's four largest customers represented approximately 11% and 15% of total sales during the years ended December 31, 2022 and December 31, 2021, respectively. Income Taxes The Company is subject to US income taxes on a stand-alone basis. The Company and its subsidiary, Profire Combustion, Inc. file separate stand-alone tax returns in each jurisdiction in which they operate. Profire Combustion, Inc. is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences on the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. Shipping and Handling Fees and Costs The Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. Defined Contribution Retirement Plan The Company matches employee contributions to our 401(k) plan up to 4% of their annual salary. The expense is recognized as part of general and administrative expenses on the income statement and was $193,876 and $174,281 for the years ended December 31, 2022 and December 31, 2021, respectively. Property and Equipment Property and equipment are stated at historical cost and depreciated over the useful life of the asset using the straight-line method. Useful lives are assigned to assets depending on their category. For details regarding property and equipment, refer to Note 5 . Research and Development The Company's policy is to expense all costs associated with research and development ("R&D") that have no future alternative uses when those costs are incurred. Costs incurred to acquire assets currently used in R&D that do have future alternative uses are capitalized and the cost of depreciation is included in R&D expense. Fair Value of Financial Instruments The carrying value of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Bond and mutual fund investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. Refer to Note 2 for further details regarding instruments recorded at fair value. Earnings Per Share Basic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. Refer to Note 13 for further details on the earning per share calculation. |
FINANCIAL INSTRUMENTS AND INVES
FINANCIAL INSTRUMENTS AND INVESTMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Text Block [Abstract] | |
FINANCIAL INSTRUMENTS AND INVESTMENTS | FINANCIAL INSTRUMENTS AND INVESTMENTS The fair value of a financial instrument is the amount that could be received upon the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value measurements do not include transaction costs. A fair value hierarchy is used to prioritize the quality and reliability of the information used to determine fair values. Categorization within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The fair value hierarchy is divided into the following three categories: Level 1: Quoted market prices in active markets for identical assets or liabilities. Level 2: Observable market-based inputs or inputs that are corroborated by market data. Level 3: Unobservable inputs that are not corroborated by market data. Fair value estimates of financial instruments are made at a specific point in time, based on relevant information about financial markets and specific financial instruments. As these estimates are subjective in nature, involving uncertainties and matters of significant judgment, they cannot be determined with precision. Changes in assumptions can significantly affect estimated fair value. Management is of the opinion that the Company is not exposed to significant interest or credit risks arising from financial instruments and any declines in the value of investments are temporary in nature. Money market funds and certificates of deposits are shown at cost on the balance sheet and their adjusted cost approximates their fair value. The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Company's cash and cash equivalents and investments held as of December 31, 2022 and 2021: December 31, 2022 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,153,074 $ — $ 3,153,074 $ 3,153,074 $ — $ — Other Funds 1,889,552 (257,126) 1,632,426 — — 1,632,426 5,042,626 (257,126) 4,785,500 3,153,074 — 1,632,426 Level 2 Corporate Bonds 1,277,675 (109,599) 1,168,076 — — 1,168,076 Municipal Bonds 6,129,264 (272,063) 5,857,201 — 1,154,284 4,702,917 7,406,939 (381,662) 7,025,277 — 1,154,284 5,870,993 Total $ 12,449,565 $ (638,788) $ 11,810,777 $ 3,153,074 $ 1,154,284 $ 7,503,419 December 31, 2021 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,587,278 $ — $ 3,587,278 $ 3,587,278 $ — $ — Other Funds 1,889,552 93,123 1,982,675 — — 1,982,675 5,476,830 93,123 5,569,953 3,587,278 — 1,982,675 Level 2 Corporate Bonds 1,396,435 (17,727) 1,378,708 — 101,004 1,277,704 Municipal Bonds 5,933,534 (21,425) 5,912,109 — 912,679 4,999,430 7,329,969 (39,152) 7,290,817 — 1,013,683 6,277,134 Total $ 12,806,799 $ 53,971 $ 12,860,770 $ 3,587,278 $ 1,013,683 $ 8,259,809 Pre-tax unrealized losses on investments incurred during the periods are presented below: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Unrealized Holding Losses $ (692,759) $ (9,253) The maturities for bonds held by the Company as of December 31, 2022 are presented in the table below: Maturity Fair Value Less Than One Year $ 1,154,284 1-2 years 2,045,641 2-5 years 3,825,352 5-10 years — Over 10 years — $ 7,025,277 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at each balance sheet date: As of December 31, 2022 December 31, 2021 Raw materials $ 166,927 $ 301,320 Finished goods 10,452,930 7,556,048 Work in process — — Subtotal 10,619,857 7,857,368 Reserve for obsolescence (325,877) (672,120) Total $ 10,293,980 $ 7,185,248 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 December 31, 2021 Prepaid inventory 784,420 530,725 Accrued Receivables 881,176 1,270 Prepaid insurance 240,785 228,849 Interest receivables 72,761 63,841 Tax credits 118,035 67 Other 217,462 200,524 $ 2,314,639 $ 1,025,276 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY AND EQUIPMENT | PROPERTY AND EQUIPMENT Property and equipment and estimated useful lives are presented in the table below: As of December 31, 2022 December 31, 2021 Est. Useful Life Furniture and fixtures $ 623,086 $ 652,859 7 years Computers 223,626 465,758 3 years Software — 246,963 2 years Machinery and equipment 541,036 488,652 7 years Leased Equipment 22,462 — 5 years Vehicles 2,038,581 2,242,221 5 years Land and buildings 11,240,356 11,692,779 30 years Total property and equipment 14,689,147 15,789,232 Accumulated depreciation (4,265,183) (4,603,693) Net property and equipment $ 10,423,964 $ 11,185,539 The table below shows total depreciation and amortization expense and how depreciation is allocated between cost of goods sold and operating expenses: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Cost of goods sold - product depreciation $ 328,482 $ 338,748 Cost of goods sold - service depreciation 144,543 154,460 Operating expense depreciation 388,618 500,142 Amortization expense 239,401 262,297 Total depreciation & amortization expense $ 1,101,044 $ 1,255,647 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Definite-lived intangible assets consist of developed technology, customer relationships, trade names and distribution agreements. The costs of developed technology, customer relationships and trade names are amortized over the respective useful life of each asset, ranging from 3-18 years. The costs of the distribution agreements are amortized over the remaining life of the agreements. Indefinite-lived intangible assets consist of goodwill. In accordance with ASC 350, goodwill is not amortized but tested for impairment annually or more frequently when events or circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. We test goodwill for impairment as of each balance sheet date. Intangible assets consisted of the following: Definite-lived intangible assets As of December 31, 2022 December 31, 2021 Definite-lived intangible assets $ 1,903,073 $ 2,100,000 Less: Accumulated amortization (634,166) (550,862) Definite-lived intangible assets, net $ 1,268,907 $ 1,549,138 During 2022, definite-lived intangible assets decreased primarily driven by amortization expense for the year. Estimated amortization expense for the next five years related to the definite-lived intangible assets is displayed in the following table: For the Years Ending December 31, Amount 2023 $ 164,805 2024 $ 125,591 2025 $ 80,899 2026 $ 80,899 2027 $ 80,899 Greater than 5 years $ 735,814 Indefinite-lived intangible assets As of December 31, 2022 December 31, 2021 Goodwill $ 2,579,381 $ 2,579,381 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following at each balance sheet date: As of December 31, 2022 December 31, 2021 Employee-related payables $ 2,404,848 $ 1,621,131 Deferred Revenue 420,827 817 Inventory-related payables $ 285,109 $ 67,027 Other tax-related payables 54,762 39,895 Warranty liabilities $ 74,103 $ 49,624 Other 334,345 93,854 Total $ 3,573,994 $ 1,872,348 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2022 | |
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 3 years. 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. In 2021, we entered into a new lease agreement to replace some aging office equipment. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 3.5 years. The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Amortization of right-of-use assets $ 34,658 $ 39,565 Interest on lease liabilities 3,147 1,676 Total financing lease cost $ 37,805 $ 41,241 The Company leases one warehouse space with a two-year lease, which is recorded as an operating lease. The remainder of our office space leases are considered to be short-term, and we have elected not to recognize those on our balance sheet under the short-term recognition exemption. During the years ended December 31, 2022 and December 31, 2021, we recognized $79,378 and $69,808, respectively, of lease costs associated with office space leases. Supplemental operating lease information as of December 31, 2022 is as follows: Operating right of use assets $ 36,303 Current operating lease liabilities 25,385 Long-term operating lease liabilities 10,918 Weighted-average remaining lease term in years 1.5 Weighted-average discount rate 4.5 % The following table reconciles future minimum lease payments to the discounted lease liability: Years ending December 31 2023 $ 57,919 2024 40,886 2025 11,927 2026 11,927 2027 6,958 Thereafter — Total future minimum lease payments $ 129,617 Less: Amount representing interest 8,088 Present value of future payments $ 121,529 Current portion $ 53,646 Long-term portion $ 67,883 |
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 3 years. 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. In 2021, we entered into a new lease agreement to replace some aging office equipment. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 3.5 years. The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Amortization of right-of-use assets $ 34,658 $ 39,565 Interest on lease liabilities 3,147 1,676 Total financing lease cost $ 37,805 $ 41,241 The Company leases one warehouse space with a two-year lease, which is recorded as an operating lease. The remainder of our office space leases are considered to be short-term, and we have elected not to recognize those on our balance sheet under the short-term recognition exemption. During the years ended December 31, 2022 and December 31, 2021, we recognized $79,378 and $69,808, respectively, of lease costs associated with office space leases. Supplemental operating lease information as of December 31, 2022 is as follows: Operating right of use assets $ 36,303 Current operating lease liabilities 25,385 Long-term operating lease liabilities 10,918 Weighted-average remaining lease term in years 1.5 Weighted-average discount rate 4.5 % The following table reconciles future minimum lease payments to the discounted lease liability: Years ending December 31 2023 $ 57,919 2024 40,886 2025 11,927 2026 11,927 2027 6,958 Thereafter — Total future minimum lease payments $ 129,617 Less: Amount representing interest 8,088 Present value of future payments $ 121,529 Current portion $ 53,646 Long-term portion $ 67,883 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As described in Note 1 , treasury stock is recorded at cost until reissued or retired. As of December 31, 2022, and December 31, 2021, the Company held 5,038,130 and 4,076,909 shares in treasury at a total cost of $7,336,323 and $6,107,593, respectively. Pursuant to the board of directors approval of a share repurchase program allowing the Company to repurchase up to $2,000,000 worth of the Company’s common stock from time to time through September 30, 2022, the Company entered into a 10b5-1 Plan in September 2021. After an initial 30-day cooling off period the Company began purchasing shares of common stock pursuant to the terms of the 10b5-1 Plan in October 2021. The Company was not obligated to make any purchases and the program could have been suspended or discontinued at any time. During 2022 and 2021, we repurchased 961,221 and 664,531 shares of common stock, respectively. All purchases of treasury stock during 2022 and 2021 were made at market prices. As of the end of June 2022, the Company had spent the full allotment under the program. On June 15, 2022, pursuant to the annual renewal of director compensation, the Board approved a grant of 178,623 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 $234,000 to be recognized over the vesting period. On April 6, 2022, the Compensation Committee of the Board (The "Compensation Committee") approved the 2022 Executive Incentive Plan (the “2022 EIP”) for Ryan W. Oviatt, the Company's Co-CEO, Co-President, and CFO, Cameron M. Tidball, the Company's Co-CEO and Co-President, and Patrick D. Fisher, the Company's Vice President of Product Development. The 2022 EIP provides for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2022. 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 "2014 Plan"). In addition to the 2022 EIP, the Board also approved as a long-term incentive plan the grants of restricted stock unit awards to Messrs. Oviatt, Tidball, and Fisher pursuant to the 2014 Plan (the “2022 LTIP”). 2022 EIP Under the terms of the 2022 EIP, each participating executive officer was assigned a target incentive compensation amount for fiscal 2022. The target incentive compensation amount for Mr. Oviatt is $198,000, the target incentive compensation amount for Mr. Tidball is $198,000, and the target incentive compensation for Mr. Fisher is $64,750 CAD. Participants were eligible to receive incentive compensation based upon reaching or exceeding performance goals established by the Compensation Committee for fiscal 2022. The performance goals in the 2022 EIP were based on the Company’s total revenue, EBITDA, and a non-financial milestone relating to revenue source diversification to be determined by the Compensation Committee. Each of these performance goals were weighted one third in calculating incentive compensation amounts. The incentive compensation amounts earned under the 2022 EIP, will be paid 50% in cash and 50% in shares of restricted stock under the 2014 Plan. In no event could the total award exceed 200% of the target incentive compensation amount for each participant, or exceed any limitations otherwise set forth in the 2014 Plan. The actual incentive compensation amounts were determined by the Compensation Committee upon completion of the fiscal 2022 financial statement audit and will be paid by March 15, 2023, subject to all applicable tax withholding. 2022 LTIP The 2022 LTIP consists of total awards of up to 230,232 RSUs to Mr. Oviatt, up to 230,232 RSUs to Mr. Tidball, and up to 43,023 RSUs to Mr. Fisher, pursuant to two separate restricted stock unit award agreements (collectively, the “2022 LTIP Restricted Stock Unit Award Agreements”) entered into between the Company and each participant. One such agreement covers the 33% of each award recipient’s RSUs that are subject to time-based vesting, and the other such agreement covers the remaining 67% of such award recipient’s RSUs 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 2022 LTIP began on January 1, 2022 and terminates on December 31, 2024 (the “2022 LTIP Performance Vesting Date”). The RSUs subject to time-based vesting, including 76,744 RSUs to Mr. Oviatt, 76,744 RSUs for Mr. Tidball, and 14,341 RSUs to Mr. Fisher, will vest in three The performance-vesting RSUs, including up to 153,488 RSUs for Mr. Oviatt, 153,488 RSUs for Mr. Tidball, and 28,682 RSUs to Mr. Fisher, may vest at the end of the three year performance period beginning January 1, 2022 based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return 1/3 89% 136% 183% 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 RSUs, consisting of 51,163 RSUs for Mr. Oviatt, 51,163 RSUs for Mr. Tidball, and 9,561 RSUs for Mr. Fisher, may vest for each of the three performance metrics identified in the table above. The number of RSUs that will vest for each performance metric on the 2022 LTIP Performance Vesting Date shall be determined as follows: a. if the “Target” level for such performance metric is not achieved, none of the RSUs relating to such performance metric will vest; b. if the “Target” level (but no higher level) for such performance metric is achieved, 50% of the RSUs relating to such performance metric will vest; c. if the “Above Target” level (but no higher level) for such performance metric is achieved, 75% of the RSUs relating to such performance metric will vest; and d. if the “Outstanding” level for such performance metric is achieved, 100% of the RSUs relating to such performance metric will vest. The foregoing summary of the 2022 EIP and the 2022 LTIP Restricted Stock Unit Award Agreements is qualified in its entirety by the text of the 2022 EIP and each of the 2022 LTIP Restricted Stock Unit Award Agreements, which were filed as exhibits to Form 10-Q for the quarter ending March 31, 2022. 2021 EIP and LTIP On May 28, 2021, the Compensation Committee 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 then Vice President of Operations, and Patrick D. Fisher, the Company’s Vice President of Product Development. The 2021 EIP provided for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2021. The incentive compensation was payable in cash and stock, and the stock portion of the incentive compensation constituted an award under the 2014 Plan. Under the terms of the 2021 EIP, each participating executive officer was assigned a target incentive compensation amount for fiscal 2021. The target incentive compensation amount for Mr. Hatch was $200,000, the target incentive compensation amount for Mr. Oviatt was $150,000, the target incentive compensation amount for Mr. Tidball was $150,000, the target incentive compensation for Mr. Fugal was $54,000, and the target incentive compensation for Mr. Fisher was $51,000 CAD. Participants were 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 were based on the Company’s total revenue, EBITDA, and a non-financial milestone relating to revenue source diversification. Each of these performance goals were weighted one third in calculating incentive compensation amounts. The incentive compensation amounts earned under the 2021 EIP, were paid 50% in cash and 50% in shares of restricted stock under the 2014 Plan. In no event could the total award exceed 200% of the target incentive compensation amount for each participant, or exceed any limitations otherwise set forth in the 2014 Plan. The actual incentive compensation amounts were determined by the Compensation Committee upon the completion of the fiscal 2021 financial statement audit 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 restricted stock unit awards to Messrs. Oviatt, Tidball, Fugal, and Fisher pursuant to the 2014 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 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. Mr. Fugal resigned, effective October 31, 2021, from his position as Vice President of Operations to pursue an opportunity as CEO of another company. Accordingly, Mr. Fugal is not be eligible to receive incentive compensation under the 2021 EIP, and his unvested restricted stock units were forfeited. Additionally, Mr. Fugal is not eligible for any awards that were not vested prior to October 31, 2021 for the 2019 and 2021 long-term incentive plans. 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 a exhibits to its quarterly report on Form 10-Q for the quarter ended June 30, 2021. 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 2014 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 vested on the first anniversary of the grant date or at the Company's next annual meeting of stockholders, whichever was earlier. The awards resulted in total compensation expense of approximately $216,000 which was recognized over the vesting period. Stock Options No stock options were issued during the years ended December 31, 2022 or December 31, 2021. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Performance Obligations Our performance obligations include providing product and servicing our product and other combustion equipment related to 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 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. The amount accrued for expected returns and warranty claims was immaterial as of December 31, 2022. Contract Balances We have elected to use the practical expedient in ASC 340 (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 do receive payments in advance of recognizing revenue on some contracts, but they do not result in any material contract liabilities. See Note 7 for additional information. 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: Year Ended December 31, 2022 Year Ended December 31, 2021 Electronics $ 16,278,452 $ 9,076,345 Manufactured 2,980,480 1,213,218 Re-Sell 23,059,331 13,401,431 Service 3,618,380 2,665,182 Total Revenue $ 45,936,643 $ 26,356,176 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Periodically the Company issues stock-based awards to employees and independent directors. Vesting terms for outstanding grants vary by grant, ranging from immediate to ratably over 5 years. Typically, grants expire one year after the final vesting. The Board has authorized 4,812,000 shares to be granted for such awards under the 2014 Plan. Historically, the Company has only issued non-qualified stock options, restricted stock, and restricted stock units; however, the 2014 Plan does allow for other types of awards to be granted in the future. Most awards have been exercisable or convertible based solely on meeting service conditions; however, some grants to executives have been made convertible based on meeting both service and performance conditions. Upon exercise or conversion, the Company may issue new shares or reissue shares held in treasury, at the discretion of Management. The Company has elected to recognize forfeitures as they occur. The Company uses the Black-Scholes method for measuring compensation cost of stock options and the intrinsic value method for measuring compensation cost of restricted stock and restricted stock units. Total compensation cost for share-based payments recognized in income was $814,769 and $567,077 during the years ended December 31, 2022 and December 31, 2021, respectively. As of December 31, 2022, the Company had $533,462 in unamortized compensation expense with a weighted average of 1.36 years remaining. The Company received $33,863 and $6,053 in cash from the exercise of share options during the years ended December 31, 2022 and December 31, 2021, respectively. For the tax effect on total compensation expense and the exercise of options, see Note 12 for the income tax provision. During the years ended December 31, 2022 and December 31, 2021, the intrinsic value of options exercised was $19,113 and $2,352, respectively. The total fair value of options, restricted stock, and restricted stock units vested during the years ended December 31, 2022 and December 31, 2021 was $742,313 and $537,063, respectively. During the years ended December 31, 2022 and December 31, 2021 the Company granted 1,011,436 and 770,142 awards, respectively, with weighted-average grant date fair values of $1.28 and $1.14, respectively. Information regarding outstanding options, restricted stock awards, and restricted stock units is summarized in the tables below: Total Outstanding and Exercisable Awards December 31, 2022 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 1,048,199 2.50 $ — — $ 0.40 $ 0.80 469,000 1.64 $ 0.79 310,000 1.64 $ 0.79 $ 0.81 $ 0.84 290,900 1.41 $ 0.83 193,934 1.41 $ 0.83 1,808,099 2.10 $ 0.35 503,934 1.56 $ 0.80 Total Outstanding and Exercisable Awards December 31, 2021 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 738,873 2.41 $ — — $ 0.40 $ 0.80 579,000 2.64 $ 0.79 203,000 2.64 $ 0.79 $ 0.81 $ 0.84 304,700 2.40 $ 0.83 101,566 2.40 $ 0.83 1,622,573 2.49 $ 0.44 304,566 2.56 $ 0.80 Information regarding stock options for the year ended December 31, 2022 is summarized in the tables below: Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 865,700 $ 0.80 0.37 $ 223,670 Granted — $ — — $ — Exercised/Released (38,200) $ 0.79 $ 1.29 0.37 $ 19,113 Canceled/Forfeited (67,600) $ 0.79 0.37 $ 26,324 Expired — $ — 0 $ — Outstanding, end of period 759,900 $ 0.80 0.37 1.55 $ 194,920 Vested and unvested exercisable, end of the period 503,934 $ 0.80 0.37 1.55 $ 129,213 Vested and expected to vest, end of the period 759,900 $ 0.80 $ 0.37 1.55 $ 194,920 Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 565,134 $ 0.80 $ 0.37 Granted — $ — $ — Canceled/Forfeited (37,600) $ 0.79 $ 0.37 Expired — Vested, outstanding shares (271,568) $ 0.80 $ 0.37 Unvested Outstanding, end of period 255,966 $ 0.80 $ 0.37 0.58 Information regarding restricted stock awards for the year ended December 31, 2022 is summarized in the tables below: Restricted Stock Awards Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period — $ — $ — $ — Granted 182,626 $ — $ 1.24 $ 226,456 Exercised/Released (182,626) $ — $ 1.24 $ 1.24 $ 226,456 Outstanding, end of period — $ — $ — 0 $ — Vested and exercisable, end of the period — $— $ — $ — Vested and expected to vest, end of the period — $ — $ — 0 $ — Restricted Stock Awards Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period — $ — $ — Granted 182,626 $ — $ 1.24 Vested, outstanding shares (182,626) $ — $ 1.24 Unvested Outstanding, end of period — $ — $ — 0 Information regarding restricted stock units for the year ended December 31, 2022 is summarized in the tables below: Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 258,206 $ — $ 1.33 $ 273,698 Granted 493,152 $ — $ 1.28 $ 632,404 Exercised/Released (321,723) $ — $ 1.21 $ 1.29 $ 390,890 Cancelled/Forfeited (21,800) $ — $ 1.28 $ 27,551 Outstanding, end of period 407,835 $ — $ 1.31 2.46 $ 432,305 Vested and exercisable, end of the period — $ — Vested and expected to vest, end of the period 407,835 $ — $ 1.31 2.46 $ 432,305 Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 258,206 $ — $ 1.33 Granted 493,152 $ — $ 1.28 Cancelled/Forfeited (21,800) $ — $ 1.28 Vested, outstanding shares (321,723) $ — $ 1.29 Unvested Outstanding, end of period 407,835 $ — $ 1.31 1.21 Information regarding performance based restricted stock units for the year ended December 31, 2022 is summarized in the tables below: Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 480,667 $ — $ 1.24 $ 509,507 Granted 335,658 $ — $ 1.29 $ 432,999 Exercised/Released — $ — $ — $ — $ — Cancelled/Forfeited (80,813) $ — $ 1.26 $ 105,057 Expired (95,148) $ — $ 1.57 $ 100,857 Outstanding, end of period 640,364 $ — $ 1.21 2.53 $ 678,786 Vested and exercisable, end of the period — $— $ — Vested and unvested exercisable, end of the period — $— $ — Vested and expected to vest, end of the period 320,182 $ — $ 1.21 2.53 $ 339,393 Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 480,667 $ — $ 1.24 Granted 335,658 $ — $ 1.29 Cancelled/Forfeited (80,813) $ — $ 1.26 Vested, outstanding shares — $ — $ — Expired (95,148) $ 1.57 Unvested Outstanding, end of period 640,364 $ — $ 1.21 1.70 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES During the years ended December 31, 2022 and December 31, 2021, the Company did not expect to incur any interest or penalties related to income taxes. Accordingly, the Company had no accruals for interest and penalties at December 31, 2022, nor December 31, 2021. When our taxes for the year ended December 31, 2021 were finalized there was an immaterial amount of penalties and interest that was ultimately paid. We do not expect any material penalties or interest will result from the filing of our 2022 tax return. If the Company were to incur any such material charges, it would recognize interest related to underpayment of income taxes in interest expense and recognize any penalties in operating expenses. The Company is current on its U.S. and Canadian income tax filings. Tax years that remain open for examination are 2020 through 2022 in the U.S. and 2015 through 2022 in Canada. At December 31, 2022, and December 31, 2021, the Company had operating loss carryforwards at its Canadian subsidiary of $2,071,363 CAD and $4,351,044 CAD, respectively. A valuation allowance has been recorded for 100% of operating loss carry forward balance as of December 31, 2022 and a valuation allowance of approximately 80% of the operating loss carryforwards that existed as of December 31, 2021. As a result, no deferred tax asset was recorded on our balance sheet at December 31, 2022. At December 31, 2022 and December 31, 2021, the Company had operating loss carryforwards at its US subsidiary of $0 and $1,575,071, respectively. In 2022, we completed an application for the Employee Retention Credit under the Coronavirus Aid, Relief, and Economic Security (CARES) Act. Based on the amended payroll tax returns filed with the government, we qualified for approximately $1,500,000 in payroll tax credit, offset by approximately $204,000 in fees spent with our tax preparers to calculate the credit. To be conservative and allow for the risk of a reduced credit amount by the IRS, in 2022, we recorded a reduction in payroll tax expense of $761,132. The full benefit is being claimed for tax purposes on the 2021 and an amended 2020 income tax return which flipped the company’s prior tax loss in 2021 to a small taxable income position and will reduce the taxable losses in 2020. This means there is no longer an operating loss available to be carried forward. As of December 31, 2022, the Company now has $0 operating loss carryforwards remaining to be used to offset future taxable income. The Company did not have any deferred tax assets as of December 31, 2022. The deferred tax asset on the balance sheet as of December 31, 2021 did not have a valuation allowance associated with it. Realization of the deferred tax asset is dependent on generating sufficient taxable income to offset the tax items that will be deductible in the future. Although realization is not assured, Management believed it is more likely than not that all of the deferred tax asset would be realized. As noted above, the deferred tax asset from 2021 was removed in 2022 due to updated and amended tax filings completed during the 2022 year. In 2020, the CARES Act was signed into law, which among other things, allowed net operating losses from the year 2020 to be carried back five years to claim refunds for taxes that were previously paid. Since our US Subsidiary had taxable income in prior years, during 2021, we filed an amendment to our 2015 and 2016 tax returns and utilized all of the net operating losses from the year ended December 31, 2020, which generated a tax refund of $416,560 which was received in 2022. Additionally, during 2021, we filed an amended 2019 tax return to correct some filing information for Prochem ULC, a Canadian subsidiary owned by our US entity. As a result of this amended filing, we received a tax refund of $131,805. The Company invests in available-for-sale securities that are reported on the balance sheet at fair value, with the gains/losses reported net of tax as part of Other Comprehensive Income (OCI). The tax benefit allocated to OCI during the year ended December 31, 2022 and December 31, 2021 was $167,868 and $2,158, respectively. The table below outlines the components of income tax expense (benefit): For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Current U.S. Federal $ 887,732 $ (492,757) State and local 176,700 25,374 Foreign — (179,939) Total Current 1,064,432 (647,322) Deferred U.S. Federal 435,603 15,831 State and local 85,670 2,133 Foreign 152,717 — Total Deferred 673,990 17,964 Total Provision for (Benefit from) Income Taxes 1,738,422 (629,358) The table below reconciles our effective tax rate to the statutory tax rate: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 U.S. Federal statutory tax rate 21.0 % 21.0 % State and local statutory tax rate, net of federal effect 4.0 % 4.0 % Depreciation expense 1.8 % (2.9) % Tax-exempt income (0.9) % 2.9 % Unrealized gains and losses on investments (2.6) % 0.1 % Stock-based compensation 0.1 % — % Goodwill and intangible asset amortization 0.6 % 5.2 % Non-U.S. operations 3.3 % 9.2 % Use of Net Operating Losses 5.8 % — % Other (2.6) % (2.1) % Effective tax rate 30.5 % 37.4 % The table below shows the components of deferred taxes: As of December 31, 2022 December 31, 2021 Bad debt $ 37,814 $ 21,903 Inventory reserve 48,572 130,776 Amortization 101,745 124,626 Unrealized loss on investments 154,987 — UNICAP 75,110 — U.S. net operating loss — 401,023 Foreign net operating loss — 163,254 Deferred tax asset $ 418,228 $ 841,582 Unrealized gain on investments $ — $ 12,651 Depreciation 338,574 265,374 Goodwill 219,252 174,365 Stock compensation 349,260 362,044 Deferred tax liability $ 907,086 $ 814,434 Net Deferred Tax Asset (Liability) $ (488,858) $ 27,148 |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ 3,947,760 47,161,101 $ 0.08 $ (1,051,543) 48,070,581 $ (0.02) Effect of Dilutive Securities Stock options & RSUs — 1,286,241 — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ 3,947,760 48,447,342 $ 0.08 $ (1,051,543) 48,070,581 $ (0.02) Stock options and RSU's to purchase 1,622,573 shares of common stock at a weighted average exercise price of $1.13 per share were outstanding during the year ended December 31, 2021, but were not included in the computation of diluted EPS because the effect would be anti-dilutive. These stock options and RSU's, which expire between December 2022 and December 2024, were still outstanding at December 31, 2021. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 2022 | |
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 Year Ended December 31, Revenues 2022 2021 Canada $ 8,439,532 $ 5,362,466 United States 37,497,111 20,993,710 Total Consolidated $ 45,936,643 $ 26,356,176 For the Year Ended December 31, Profit (Loss) 2022 2021 Canada $ 754,004 $ (2,056,972) United States 3,193,756 1,005,429 Total Consolidated $ 3,947,760 $ (1,051,543) Long-lived assets, which are comprised of net property and equipment and financing right-of-use assets, for each geographical region were as follows at each balance sheet date: Long-lived assets As of December 31, 2022 December 31, 2021 Canada $ 5,067,965 $ 5,667,225 United States 5,476,238 5,583,594 Total Consolidated $ 10,544,203 $ 11,250,819 |
QUARTERLY INFORMATION (UNAUDITE
QUARTERLY INFORMATION (UNAUDITED) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
QUARTERLY INFORMATION (UNAUDITED) | QUARTERLY INFORMATION (UNAUDITED) Quarterly data for the periods below consisted of the following: For the Quarters Ending Mar 31, 2022 Jun 30, 2022 Sep 30, 2022 Dec 31, 2022 Total revenues $ 9,503,140 $ 9,633,147 $ 12,829,338 $ 13,971,018 Gross profit 4,556,704 4,403,145 6,118,876 6,572,665 Income (Loss) from operations 688,994 94,807 2,117,893 2,292,914 Income tax benefit (expense) (160,442) (27,177) (958,300) (592,503) Net income (loss) 627,161 284,829 1,210,748 1,825,022 Basic earnings (loss) per common share $ 0.01 $ 0.01 $ 0.03 $ 0.04 Diluted earnings (loss) per common share $ 0.01 $ 0.01 $ 0.02 $ 0.04 For the Quarters Ending Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Total revenues $ 5,092,349 $ 6,034,283 $ 6,943,198 $ 8,286,346 Gross profit 2,174,687 2,657,732 3,119,468 3,449,128 Income (loss) from operations (804,225) (594,437) (318,289) (298,049) Income tax benefit 107,859 125,374 348,767 47,358 Net income (loss) (601,500) (397,166) 92,246 (145,123) Basic earnings (loss) per common share $ (0.01) $ (0.01) — — Diluted earnings (loss) per common share $ (0.01) $ (0.01) — — Basic and diluted earnings per share are computed independently for each of the quarters presented. Therefore, the sum of the quarterly amounts may not equal the total computed for the year. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In March 2014 the Company entered into a consulting agreement with Terra Industrial with Alan Johnson as agent in order to replace a prior royalty agreement. The agreement is for the term of 10 years with fees of $100,000 CAD or $73,700 USD paid quarterly. The agreement expires in March of 2024. The Company has operating leases for office space in Pennsylvania. Expense recognized for operating leases was $79,378 and $69,808 for the years ended December 31, 2022 and December 31, 2021, respectively. The future minimum lease payments for operating leases as of December 31, 2022, consisted of the following: Years ending December 31, Operating Leases 2023 $ 26,400 2024 11,000 2025 — 2026 — 2027 — Thereafter — Total $ 37,400 |
GOVERNMENT ASSISTANCE
GOVERNMENT ASSISTANCE | 12 Months Ended |
Dec. 31, 2022 | |
Government Assistance [Abstract] | |
GOVERNMENT ASSISTANCE | GOVERNMENT ASSISTANCEIn Canada, our business qualified for wage subsidies under the Canada Emergency Wage Subsidy (CEWS) program. CEWS is a Canadian government funded program that ran from March 2020 to June 2020, and was subsequently extended through September 2021. Under CEWS if a Canadian business experienced a drop in qualifying revenue greater than a certain percentage, that business could be eligible for a wage subsidy of up to 75% of eligible employee remuneration. Through our Canadian subsidiary, we applied for CEWS in each allowable period from March 2020 – March 2021 and received total wage subsidies of $0 CAD in 2022 and $163,598 CAD in 2021. Under CEWS rules, we are not required to repay these funds and we do not have any contingencies or commitments related to this CEWS aid. We recorded these amounts within our income statement as credits against employee wages since these amounts represent wage subsidies. Also in Canada, we have been able to participate in several grant programs that promote technology development and the hiring of technology professionals. We have participated in the Technation Career Ready Program, The Technology Alberta First Jobs Program, and the Venture for Canada Student Internship Program. During 2021 we qualified for $24,659 CAD in wage subsidies from these programs, some of which was received in 2021 and the remaining amount was received in early 2022. We recorded these amounts within our income statement as credits against employee wages within our research and development department. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
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 the following subsequent events took place:On March 6, 2023, the Company's Board of Directors approved a one-time bonus for company executives that was settled by issuing 192,964 shares of common stock for meeting targets pursuant to the previously announced "2022 Executive Incentive Plan", which was put in place under the Company's 2014 Equity Incentive Plan. These shares were fully vested as of March 6, 2023. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Update No. 2021-10 —Government Assistance (Topic 832) —Disclosures by Business Entities about Government Assistance This update was issued to increase the transparency of government assistance by requiring entities to disclose the type of government assistance received, how the assistance was accounted for, and the effect of the assistance on the entity's financial statements. The amendments in this update are effective for annual periods beginning after December 15, 2021 and can be applied either prospectively or retrospectively. We evaluated the impact of this new guidance and determined that we will adopt the provisions of ASU 2021-10 as of December 15, 2021 on a retrospective basis. See Note 17 for additional information. The Company has evaluated all other recent accounting pronouncements and determined that the adoption of other pronouncements applicable to the Company has not had, nor is expected to have, a material impact on the Company's financial position, results of operations, or cash flows. |
Use of Estimates | Use of Estimates The preparation of financial statements in accordance with US GAAP requires Management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reportable amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. |
Foreign Currency and Comprehensive Income | Foreign Currency and Comprehensive Income The functional currencies of the Company and its subsidiaries in the United States and Canada are the U.S. Dollar ("USD") and the Canadian Dollar ("CAD"), respectively. The financial statements of the subsidiary Profire Combustion, Inc. were translated to USD using year-end exchange rates for the balance sheet, and average exchange rates for the statements of operations. Equity transactions were translated using historical rates. The period-end exchange rates of 0.7370 and 0.7859 were used to convert the Company's December 31, 2022 and December 31, 2021 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7679 and 0.7845 for the years ended December 31, 2022 and December 31, 2021, respectively. All amounts in the financial statements and footnotes are presumed to be stated in USD, unless otherwise identified. Foreign currency translation gains or losses as a result of fluctuations in the exchange rates are reflected in the Consolidated Statement of Income and Comprehensive Income (Loss), and the Consolidated Statements of Stockholders' Equity. In addition to foreign currency translation gains and losses, the Company recognizes unrealized holding gains and losses on available-for-sale securities as part of comprehensive income, as discussed in the investments policy below. |
Cash and Cash Equivalents | Cash and Cash EquivalentsThe Company considers highly liquid investments with original maturities of three months or less to be cash equivalents. Certificates of deposit held for investment that are not debt securities are included in "investments-other." Certificates of deposit with remaining maturities greater than one year are classified as "long term investments-other." Our cash and cash equivalents held in FDIC insured institutions can exceed the federally insured limit periodically and at the end of reporting periods. |
Accounts Receivable | Accounts ReceivableReceivables from the sale of goods and services are stated at net realizable value. This value includes an appropriate allowance for estimated uncollectible accounts. The allowance is calculated based on past collectability and customer relationships. The Company recorded an allowance for doubtful accounts of $220,745 and $153,909 as of December 31, 2022 and December 31, 2021, respectively. Uncollectible accounts are written off after all collection efforts have been exhausted and Credit Committee approval is granted. |
Inventories | Inventories The Company's inventories are valued at the lower of cost (the purchase price, including additional fees) or market. Inventory costs are determined based on the average cost basis. A reserve for slow-moving and potentially obsolete inventories is recorded as of each balance sheet date and total inventories are presented net of that reserve. |
Investments | Investments Investments consist of available-for-sale debt securities and mutual funds invested in debt securities that the Company carries at fair value. Securities with original maturities of greater than three months at the date of purchase are classified as investments. Of these, bonds with maturities of less than one year, and mutual funds expected to be liquidated within one year from the balance sheet date, are classified as Short Term Investments. Bonds with maturities of greater than one year or mutual funds not expected to be liquidated within one year as of the balance sheet date are classified as Long Term Investments. The Company accumulates unrealized gains and losses, net of tax, on the Company's available-for-sale securities in Accumulated Other Comprehensive Income (Loss) in the Shareholders' Equity section of its balance sheets. Such unrealized gains or losses do not increase or decrease net income for the applicable accounting period. The Company includes realized gains and losses on its available-for-sale securities in other income (expense), in its Statements of Operations. Dividend and interest income earned on all investments is included in earnings as other income. |
Long-Lived Assets | Long-Lived Assets The Company periodically reviews the carrying amount of long-lived assets for impairment. An asset is considered impaired when estimated future cash flows are less than the asset's carrying amount. In the event the carrying amount of such asset is not considered recoverable, the asset is adjusted to its fair value. |
Goodwill and Other Intangible Assets | Goodwill Goodwill represents the difference between the total purchase price and the fair value of assets (tangible and intangible) and liabilities at the date of acquisition. Goodwill is reviewed for impairment annually on December 31, and more frequently as circumstances warrant, and written down only in the period in which the recorded value of such assets exceed their fair value. The Company does not amortize goodwill in accordance with Financial Accounting Standards Board (the "FASB") Accounting Standards Codification ("ASC") 350, "Intangibles—Goodwill and Other" ("ASC 350"). Goodwill is tested for impairment at the reporting unit level. The reporting unit for goodwill testing purposes is the consolidated company as a whole. Other Intangible Assets The Company accounts for Other Intangible Assets under the guidance of ASC 350, "Intangibles—Goodwill and Other." Under such guidance, other intangible assets with definite lives are amortized over their estimated useful lives and tested |
Treasury Stock | Treasury Stock Treasury stock repurchased and held by the Company is recorded as a separate line item on the Consolidated Balance Sheets. Treasury stock is held at cost until retired or reissued. Legal, brokerage, and other costs to acquire shares are not included in the cost of treasury stock. When treasury stock is reissued or retired, any gains are included as part of additional paid-in capital. Losses upon reissuance or retirement reduce additional paid-in capital to the extent that previous net gains from the same class of stock have been recognized and any losses above that are recognized as part of retained earnings. |
Revenue Recognition and Shipping and Handling Fees and Costs | Revenue RecognitionThe Company's revenue recognition practices follow ASC 606, "Revenue from Contracts with Customers".Shipping and Handling Fees and CostsThe Company records all amounts billed to customers related to shipping and handling fees as revenue. The Company classifies expenses for shipping and handling costs as cost of goods sold. Performance Obligations Our performance obligations include providing product and servicing our product and other combustion equipment related to 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 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. The amount accrued for expected returns and warranty claims was immaterial as of December 31, 2022. Contract Balances We have elected to use the practical expedient in ASC 340 (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 do receive payments in advance of recognizing revenue on some contracts, but they do not result in any material contract liabilities. See Note 7 for additional information. 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. |
Cost of Sales | Cost of Sales The Company includes product costs (i.e., material, direct labor and overhead costs), shipping and handling expense, production-related depreciation expense and product license agreement expense in cost of sales. |
Advertising Costs | Advertising CostsThe Company classifies expenses for advertising as general and administrative expenses and recognizes the expense when incurred. |
Share-Based Compensation | Stock-Based CompensationThe Company follows the provisions of ASC 718, "Share-Based Payments," which requires all share-based payments to employees to be recognized in the income statement based on their fair values. The Company uses the Black-Scholes pricing model for determining the fair value of stock options. The intrinsic value method is used to value restricted stock and restricted stock units. The Company has elected to recognize forfeitures as they occur. |
Concentration of Credit Risk | Concentration of Credit RiskFinancial instruments that potentially subject us to concentrations of credit risk consist primarily of cash and cash equivalents and accounts receivable. The Company performs ongoing credit evaluations of its customers and maintains allowances for potential credit losses. |
Income Taxes | Income Taxes The Company is subject to US income taxes on a stand-alone basis. The Company and its subsidiary, Profire Combustion, Inc. file separate stand-alone tax returns in each jurisdiction in which they operate. Profire Combustion, Inc. is a corporation operating in Canada and is subject to Canadian income taxes on its stand-alone taxable income. The Company utilizes an asset and liability approach for financial accounting and reporting for income taxes. Deferred income taxes are provided for temporary differences on the basis of assets and liabilities as reported for financial statement and income tax purposes. Deferred income taxes reflect the tax effects of net operating loss and tax credit carryovers and temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Realization of certain deferred tax assets is dependent upon future earnings, if any. The Company makes estimates and judgments in determining the need for a provision for income taxes, including the estimation of our taxable income for each full fiscal year. |
Defined Contribution Retirement Plan | Defined Contribution Retirement PlanThe Company matches employee contributions to our 401(k) plan up to 4% of their annual salary. The expense is recognized as part of general and administrative expenses on the income statement |
Property and Equipment | Property and EquipmentProperty and equipment are stated at historical cost and depreciated over the useful life of the asset using the straight-line method. Useful lives are assigned to assets depending on their category. |
Research and Development | Research and Development The Company's policy is to expense all costs associated with research and development ("R&D") that have no future alternative uses when those costs are incurred. Costs incurred to acquire assets currently used in R&D that do have future alternative uses are capitalized and the cost of depreciation is included in R&D expense. |
Fair Value of Financial Instruments | Fair Value of Financial InstrumentsThe carrying value of cash, cash equivalents, accounts receivable, accounts payable and accrued liabilities approximate their fair value because of the short-term nature of these instruments. Bond and mutual fund investments are presented at fair value as of the balance sheet date and accumulated gains or losses on those investments are reported in other comprehensive income. |
Earnings Per Share | Earnings Per ShareBasic earnings per share is calculated by dividing net income by the weighted average number of shares of common stock outstanding during each period. Diluted earnings per share is calculated by adjusting the weighted average number of shares of common stock outstanding for the dilutive effect, if any, of common stock equivalents. Common stock equivalents whose effect would be antidilutive are not included in diluted earnings per share. The Company uses the treasury stock method to determine the dilutive effect, which assumes that all common stock equivalents have been exercised at the beginning of the period and that the funds obtained from those exercises were used to repurchase shares of common stock of the Company at the average closing market price during the period. |
FINANCIAL INSTRUMENTS AND INV_2
FINANCIAL INSTRUMENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Text Block [Abstract] | |
Unrealized Gain (Loss) on Investments | The following tables show the adjusted cost, unrealized gains (losses) and fair value of the Company's cash and cash equivalents and investments held as of December 31, 2022 and 2021: December 31, 2022 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,153,074 $ — $ 3,153,074 $ 3,153,074 $ — $ — Other Funds 1,889,552 (257,126) 1,632,426 — — 1,632,426 5,042,626 (257,126) 4,785,500 3,153,074 — 1,632,426 Level 2 Corporate Bonds 1,277,675 (109,599) 1,168,076 — — 1,168,076 Municipal Bonds 6,129,264 (272,063) 5,857,201 — 1,154,284 4,702,917 7,406,939 (381,662) 7,025,277 — 1,154,284 5,870,993 Total $ 12,449,565 $ (638,788) $ 11,810,777 $ 3,153,074 $ 1,154,284 $ 7,503,419 December 31, 2021 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,587,278 $ — $ 3,587,278 $ 3,587,278 $ — $ — Other Funds 1,889,552 93,123 1,982,675 — — 1,982,675 5,476,830 93,123 5,569,953 3,587,278 — 1,982,675 Level 2 Corporate Bonds 1,396,435 (17,727) 1,378,708 — 101,004 1,277,704 Municipal Bonds 5,933,534 (21,425) 5,912,109 — 912,679 4,999,430 7,329,969 (39,152) 7,290,817 — 1,013,683 6,277,134 Total $ 12,806,799 $ 53,971 $ 12,860,770 $ 3,587,278 $ 1,013,683 $ 8,259,809 Pre-tax unrealized losses on investments incurred during the periods are presented below: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Unrealized Holding Losses $ (692,759) $ (9,253) |
Schedule of Maturities of Bonds | The maturities for bonds held by the Company as of December 31, 2022 are presented in the table below: Maturity Fair Value Less Than One Year $ 1,154,284 1-2 years 2,045,641 2-5 years 3,825,352 5-10 years — Over 10 years — $ 7,025,277 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at each balance sheet date: As of December 31, 2022 December 31, 2021 Raw materials $ 166,927 $ 301,320 Finished goods 10,452,930 7,556,048 Work in process — — Subtotal 10,619,857 7,857,368 Reserve for obsolescence (325,877) (672,120) Total $ 10,293,980 $ 7,185,248 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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 December 31, 2022 December 31, 2021 Prepaid inventory 784,420 530,725 Accrued Receivables 881,176 1,270 Prepaid insurance 240,785 228,849 Interest receivables 72,761 63,841 Tax credits 118,035 67 Other 217,462 200,524 $ 2,314,639 $ 1,025,276 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment and estimated useful lives are presented in the table below: As of December 31, 2022 December 31, 2021 Est. Useful Life Furniture and fixtures $ 623,086 $ 652,859 7 years Computers 223,626 465,758 3 years Software — 246,963 2 years Machinery and equipment 541,036 488,652 7 years Leased Equipment 22,462 — 5 years Vehicles 2,038,581 2,242,221 5 years Land and buildings 11,240,356 11,692,779 30 years Total property and equipment 14,689,147 15,789,232 Accumulated depreciation (4,265,183) (4,603,693) Net property and equipment $ 10,423,964 $ 11,185,539 |
Schedule of Depreciation Expense | The table below shows total depreciation and amortization expense and how depreciation is allocated between cost of goods sold and operating expenses: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Cost of goods sold - product depreciation $ 328,482 $ 338,748 Cost of goods sold - service depreciation 144,543 154,460 Operating expense depreciation 388,618 500,142 Amortization expense 239,401 262,297 Total depreciation & amortization expense $ 1,101,044 $ 1,255,647 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
Schedule of Finite-Lived Intangible Assets | Intangible assets consisted of the following: Definite-lived intangible assets As of December 31, 2022 December 31, 2021 Definite-lived intangible assets $ 1,903,073 $ 2,100,000 Less: Accumulated amortization (634,166) (550,862) Definite-lived intangible assets, net $ 1,268,907 $ 1,549,138 |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense | Estimated amortization expense for the next five years related to the definite-lived intangible assets is displayed in the following table: For the Years Ending December 31, Amount 2023 $ 164,805 2024 $ 125,591 2025 $ 80,899 2026 $ 80,899 2027 $ 80,899 Greater than 5 years $ 735,814 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets As of December 31, 2022 December 31, 2021 Goodwill $ 2,579,381 $ 2,579,381 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following at each balance sheet date: As of December 31, 2022 December 31, 2021 Employee-related payables $ 2,404,848 $ 1,621,131 Deferred Revenue 420,827 817 Inventory-related payables $ 285,109 $ 67,027 Other tax-related payables 54,762 39,895 Warranty liabilities $ 74,103 $ 49,624 Other 334,345 93,854 Total $ 3,573,994 $ 1,872,348 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Finance Lease Cost | The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Amortization of right-of-use assets $ 34,658 $ 39,565 Interest on lease liabilities 3,147 1,676 Total financing lease cost $ 37,805 $ 41,241 |
Supplemental Operating Lease Information | Supplemental operating lease information as of December 31, 2022 is as follows: Operating right of use assets $ 36,303 Current operating lease liabilities 25,385 Long-term operating lease liabilities 10,918 Weighted-average remaining lease term in years 1.5 Weighted-average discount rate 4.5 % |
Future Minimum Lease Payments to Discounted Finance Lease Lability | The following table reconciles future minimum lease payments to the discounted lease liability: Years ending December 31 2023 $ 57,919 2024 40,886 2025 11,927 2026 11,927 2027 6,958 Thereafter — Total future minimum lease payments $ 129,617 Less: Amount representing interest 8,088 Present value of future payments $ 121,529 Current portion $ 53,646 Long-term portion $ 67,883 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Share-based Compensation Arrangement By Share-based Payment Award, Performance Metrics | The performance-vesting RSUs, including up to 153,488 RSUs for Mr. Oviatt, 153,488 RSUs for Mr. Tidball, and 28,682 RSUs to Mr. Fisher, may vest at the end of the three year performance period beginning January 1, 2022 based upon the following Company performance metrics: Performance Metric Weight Target Above Target Outstanding Total Shareholder Return 1/3 89% 136% 183% Relative Total Shareholder Return 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% 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) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
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: Year Ended December 31, 2022 Year Ended December 31, 2021 Electronics $ 16,278,452 $ 9,076,345 Manufactured 2,980,480 1,213,218 Re-Sell 23,059,331 13,401,431 Service 3,618,380 2,665,182 Total Revenue $ 45,936,643 $ 26,356,176 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Outstanding and Exercisable Awards | Information regarding outstanding options, restricted stock awards, and restricted stock units is summarized in the tables below: Total Outstanding and Exercisable Awards December 31, 2022 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 1,048,199 2.50 $ — — $ 0.40 $ 0.80 469,000 1.64 $ 0.79 310,000 1.64 $ 0.79 $ 0.81 $ 0.84 290,900 1.41 $ 0.83 193,934 1.41 $ 0.83 1,808,099 2.10 $ 0.35 503,934 1.56 $ 0.80 Total Outstanding and Exercisable Awards December 31, 2021 Awards Outstanding Awards Exercisable Grant Price Low Grant Price High Quantity Remaining Contractual Life (Years) Exercise Price Quantity Remaining Contractual Life (Years) Exercise Price $ — $ 0.39 738,873 2.41 $ — — $ 0.40 $ 0.80 579,000 2.64 $ 0.79 203,000 2.64 $ 0.79 $ 0.81 $ 0.84 304,700 2.40 $ 0.83 101,566 2.40 $ 0.83 1,622,573 2.49 $ 0.44 304,566 2.56 $ 0.80 |
Schedule of Stock Option Activity | Information regarding stock options for the year ended December 31, 2022 is summarized in the tables below: Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 865,700 $ 0.80 0.37 $ 223,670 Granted — $ — — $ — Exercised/Released (38,200) $ 0.79 $ 1.29 0.37 $ 19,113 Canceled/Forfeited (67,600) $ 0.79 0.37 $ 26,324 Expired — $ — 0 $ — Outstanding, end of period 759,900 $ 0.80 0.37 1.55 $ 194,920 Vested and unvested exercisable, end of the period 503,934 $ 0.80 0.37 1.55 $ 129,213 Vested and expected to vest, end of the period 759,900 $ 0.80 $ 0.37 1.55 $ 194,920 Stock Options Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 565,134 $ 0.80 $ 0.37 Granted — $ — $ — Canceled/Forfeited (37,600) $ 0.79 $ 0.37 Expired — Vested, outstanding shares (271,568) $ 0.80 $ 0.37 Unvested Outstanding, end of period 255,966 $ 0.80 $ 0.37 0.58 |
Schedule of Restricted Stock Activity | Information regarding restricted stock awards for the year ended December 31, 2022 is summarized in the tables below: Restricted Stock Awards Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period — $ — $ — $ — Granted 182,626 $ — $ 1.24 $ 226,456 Exercised/Released (182,626) $ — $ 1.24 $ 1.24 $ 226,456 Outstanding, end of period — $ — $ — 0 $ — Vested and exercisable, end of the period — $— $ — $ — Vested and expected to vest, end of the period — $ — $ — 0 $ — Restricted Stock Awards Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period — $ — $ — Granted 182,626 $ — $ 1.24 Vested, outstanding shares (182,626) $ — $ 1.24 Unvested Outstanding, end of period — $ — $ — 0 Information regarding restricted stock units for the year ended December 31, 2022 is summarized in the tables below: Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 258,206 $ — $ 1.33 $ 273,698 Granted 493,152 $ — $ 1.28 $ 632,404 Exercised/Released (321,723) $ — $ 1.21 $ 1.29 $ 390,890 Cancelled/Forfeited (21,800) $ — $ 1.28 $ 27,551 Outstanding, end of period 407,835 $ — $ 1.31 2.46 $ 432,305 Vested and exercisable, end of the period — $ — Vested and expected to vest, end of the period 407,835 $ — $ 1.31 2.46 $ 432,305 Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 258,206 $ — $ 1.33 Granted 493,152 $ — $ 1.28 Cancelled/Forfeited (21,800) $ — $ 1.28 Vested, outstanding shares (321,723) $ — $ 1.29 Unvested Outstanding, end of period 407,835 $ — $ 1.31 1.21 Information regarding performance based restricted stock units for the year ended December 31, 2022 is summarized in the tables below: Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Share Price on Date of Exercise Weighted Average Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Outstanding, beginning of period 480,667 $ — $ 1.24 $ 509,507 Granted 335,658 $ — $ 1.29 $ 432,999 Exercised/Released — $ — $ — $ — $ — Cancelled/Forfeited (80,813) $ — $ 1.26 $ 105,057 Expired (95,148) $ — $ 1.57 $ 100,857 Outstanding, end of period 640,364 $ — $ 1.21 2.53 $ 678,786 Vested and exercisable, end of the period — $— $ — Vested and unvested exercisable, end of the period — $— $ — Vested and expected to vest, end of the period 320,182 $ — $ 1.21 2.53 $ 339,393 Performance Based Restricted Stock Units Number of Awards Weighted Average Exercise Price Weighted Average Grant Date Fair Value Weighted Average Remaining Amortization Period (Years) Unvested Outstanding, beginning of period 480,667 $ — $ 1.24 Granted 335,658 $ — $ 1.29 Cancelled/Forfeited (80,813) $ — $ 1.26 Vested, outstanding shares — $ — $ — Expired (95,148) $ 1.57 Unvested Outstanding, end of period 640,364 $ — $ 1.21 1.70 |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The table below outlines the components of income tax expense (benefit): For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 Current U.S. Federal $ 887,732 $ (492,757) State and local 176,700 25,374 Foreign — (179,939) Total Current 1,064,432 (647,322) Deferred U.S. Federal 435,603 15,831 State and local 85,670 2,133 Foreign 152,717 — Total Deferred 673,990 17,964 Total Provision for (Benefit from) Income Taxes 1,738,422 (629,358) |
Schedule of Effective Income Tax Rate Reconciliation | The table below reconciles our effective tax rate to the statutory tax rate: For the Year Ended December 31, 2022 For the Year Ended December 31, 2021 U.S. Federal statutory tax rate 21.0 % 21.0 % State and local statutory tax rate, net of federal effect 4.0 % 4.0 % Depreciation expense 1.8 % (2.9) % Tax-exempt income (0.9) % 2.9 % Unrealized gains and losses on investments (2.6) % 0.1 % Stock-based compensation 0.1 % — % Goodwill and intangible asset amortization 0.6 % 5.2 % Non-U.S. operations 3.3 % 9.2 % Use of Net Operating Losses 5.8 % — % Other (2.6) % (2.1) % Effective tax rate 30.5 % 37.4 % |
Schedule of Deferred Tax Assets and Liabilities | The table below shows the components of deferred taxes: As of December 31, 2022 December 31, 2021 Bad debt $ 37,814 $ 21,903 Inventory reserve 48,572 130,776 Amortization 101,745 124,626 Unrealized loss on investments 154,987 — UNICAP 75,110 — U.S. net operating loss — 401,023 Foreign net operating loss — 163,254 Deferred tax asset $ 418,228 $ 841,582 Unrealized gain on investments $ — $ 12,651 Depreciation 338,574 265,374 Goodwill 219,252 174,365 Stock compensation 349,260 362,044 Deferred tax liability $ 907,086 $ 814,434 Net Deferred Tax Asset (Liability) $ (488,858) $ 27,148 |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
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: 2022 2021 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income (loss) available to common stockholders $ 3,947,760 47,161,101 $ 0.08 $ (1,051,543) 48,070,581 $ (0.02) Effect of Dilutive Securities Stock options & RSUs — 1,286,241 — — Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ 3,947,760 48,447,342 $ 0.08 $ (1,051,543) 48,070,581 $ (0.02) |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Year Ended December 31, Revenues 2022 2021 Canada $ 8,439,532 $ 5,362,466 United States 37,497,111 20,993,710 Total Consolidated $ 45,936,643 $ 26,356,176 For the Year Ended December 31, Profit (Loss) 2022 2021 Canada $ 754,004 $ (2,056,972) United States 3,193,756 1,005,429 Total Consolidated $ 3,947,760 $ (1,051,543) Long-lived assets, which are comprised of net property and equipment and financing right-of-use assets, for each geographical region were as follows at each balance sheet date: Long-lived assets As of December 31, 2022 December 31, 2021 Canada $ 5,067,965 $ 5,667,225 United States 5,476,238 5,583,594 Total Consolidated $ 10,544,203 $ 11,250,819 |
QUARTERLY INFORMATION (UNAUDI_2
QUARTERLY INFORMATION (UNAUDITED) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Quarterly data for the periods below consisted of the following: For the Quarters Ending Mar 31, 2022 Jun 30, 2022 Sep 30, 2022 Dec 31, 2022 Total revenues $ 9,503,140 $ 9,633,147 $ 12,829,338 $ 13,971,018 Gross profit 4,556,704 4,403,145 6,118,876 6,572,665 Income (Loss) from operations 688,994 94,807 2,117,893 2,292,914 Income tax benefit (expense) (160,442) (27,177) (958,300) (592,503) Net income (loss) 627,161 284,829 1,210,748 1,825,022 Basic earnings (loss) per common share $ 0.01 $ 0.01 $ 0.03 $ 0.04 Diluted earnings (loss) per common share $ 0.01 $ 0.01 $ 0.02 $ 0.04 For the Quarters Ending Mar 31, 2021 Jun 30, 2021 Sep 30, 2021 Dec 31, 2021 Total revenues $ 5,092,349 $ 6,034,283 $ 6,943,198 $ 8,286,346 Gross profit 2,174,687 2,657,732 3,119,468 3,449,128 Income (loss) from operations (804,225) (594,437) (318,289) (298,049) Income tax benefit 107,859 125,374 348,767 47,358 Net income (loss) (601,500) (397,166) 92,246 (145,123) Basic earnings (loss) per common share $ (0.01) $ (0.01) — — Diluted earnings (loss) per common share $ (0.01) $ (0.01) — — |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases | The future minimum lease payments for operating leases as of December 31, 2022, consisted of the following: Years ending December 31, Operating Leases 2023 $ 26,400 2024 11,000 2025 — 2026 — 2027 — Thereafter — Total $ 37,400 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) $ / $ | Dec. 31, 2021 USD ($) $ / $ | |
Translation rate (in US dollars per Canadian dollars) | $ / $ | 0.737 | 0.7859 |
Weighted average exchange rate (in US dollars per Canadian dollars) | $ / $ | 0.7679 | 0.7845 |
Cash, uninsured amount | $ 5,328,825 | $ 6,077,964 |
Allowance for doubtful accounts | 220,745 | 153,909 |
Bad debt expense | 77,704 | 15,979 |
Advertising costs | 59,792 | 51,212 |
General and administrative | $ 14,396,763 | 11,533,496 |
Defined Contribution Retirement Plan | ||
Employer match percentage of annual salary | 4% | |
General and administrative | $ 193,876 | $ 174,281 |
Customer Concentration Risk | Four Largest Customers | Revenue from Contract with Customer Benchmark | ||
Concentration risk, customer | 11% | 15% |
FINANCIAL INSTRUMENTS AND INV_3
FINANCIAL INSTRUMENTS AND INVESTMENTS - Schedule of Cash and Cash Equivalents and Investments (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Adjusted Cost | $ 12,449,565 | $ 12,806,799 |
Pre-Tax Unrealized Gains/(Losses) | (638,788) | 53,971 |
Fair Value | 11,810,777 | 12,860,770 |
Cash and Cash Equivalents | 3,153,074 | 3,587,278 |
Short Term | 1,154,284 | 1,013,683 |
Long Term | 7,503,419 | 8,259,809 |
Level 1 | ||
Adjusted Cost | 5,042,626 | 5,476,830 |
Pre-Tax Unrealized Gains/(Losses) | (257,126) | 93,123 |
Fair Value | 4,785,500 | 5,569,953 |
Cash and Cash Equivalents | 3,153,074 | 3,587,278 |
Short Term | 0 | 0 |
Long Term | 1,632,426 | 1,982,675 |
Level 2 | ||
Adjusted Cost | 7,406,939 | 7,329,969 |
Pre-Tax Unrealized Gains/(Losses) | (381,662) | (39,152) |
Fair Value | 7,025,277 | 7,290,817 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 1,154,284 | 1,013,683 |
Long Term | 5,870,993 | 6,277,134 |
Money Market Funds | Level 1 | ||
Adjusted Cost | 3,153,074 | 3,587,278 |
Fair Value | 3,153,074 | 3,587,278 |
Cash and Cash Equivalents | 3,153,074 | 3,587,278 |
Other Funds | Level 1 | ||
Adjusted Cost | 1,889,552 | 1,889,552 |
Pre-Tax Unrealized Gains/(Losses) | (257,126) | 93,123 |
Fair Value | 1,632,426 | 1,982,675 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 0 | 0 |
Long Term | 1,632,426 | 1,982,675 |
Corporate Bonds | Level 2 | ||
Adjusted Cost | 1,277,675 | 1,396,435 |
Pre-Tax Unrealized Gains/(Losses) | (109,599) | (17,727) |
Fair Value | 1,168,076 | 1,378,708 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 0 | 101,004 |
Long Term | 1,168,076 | 1,277,704 |
Municipal Bonds | Level 2 | ||
Adjusted Cost | 6,129,264 | 5,933,534 |
Pre-Tax Unrealized Gains/(Losses) | (272,063) | (21,425) |
Fair Value | 5,857,201 | 5,912,109 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 1,154,284 | 912,679 |
Long Term | $ 4,702,917 | $ 4,999,430 |
FINANCIAL INSTRUMENTS AND INV_4
FINANCIAL INSTRUMENTS AND INVESTMENTS - Unrealized Gain (Loss) on Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Text Block [Abstract] | ||
Unrealized Holding Losses | $ (692,759) | $ (9,253) |
FINANCIAL INSTRUMENTS AND INV_5
FINANCIAL INSTRUMENTS AND INVESTMENTS - Maturities for Bonds (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value | $ 11,810,777 | $ 12,860,770 |
Level 2 | ||
Fair Value | 7,025,277 | $ 7,290,817 |
Bonds | Level 2 | ||
Fair Value | 7,025,277 | |
Bonds | Level 2 | Less Than One Year | ||
Fair Value | 1,154,284 | |
Bonds | Level 2 | 1-2 years | ||
Fair Value | 2,045,641 | |
Bonds | Level 2 | 2-5 years | ||
Fair Value | 3,825,352 | |
Bonds | Level 2 | 5-10 years | ||
Fair Value | 0 | |
Bonds | Level 2 | Over 10 years | ||
Fair Value | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 166,927 | $ 301,320 |
Finished goods | 10,452,930 | 7,556,048 |
Work in process | 0 | 0 |
Subtotal | 10,619,857 | 7,857,368 |
Reserve for obsolescence | (325,877) | (672,120) |
Total | $ 10,293,980 | $ 7,185,248 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS - Schedule of other current assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid inventory | $ 784,420 | $ 530,725 | |
Accrued Receivables | 881,176 | 1,270 | |
Prepaid insurance | 240,785 | 228,849 | |
Interest receivables | 72,761 | 63,841 | |
Tax credits | 118,035 | 67 | $ 416,560 |
Other | 217,462 | 200,524 | |
Total | $ 2,314,639 | $ 1,025,276 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property and equipment, gross | $ 14,689,147 | $ 15,789,232 |
Accumulated depreciation | (4,265,183) | (4,603,693) |
Net property and equipment | 10,423,964 | 11,185,539 |
Furniture and fixtures | ||
Property and equipment, gross | $ 623,086 | 652,859 |
Est. Useful Life | 7 years | |
Computers | ||
Property and equipment, gross | $ 223,626 | 465,758 |
Est. Useful Life | 3 years | |
Software | ||
Property and equipment, gross | $ 0 | 246,963 |
Est. Useful Life | 2 years | |
Machinery and equipment | ||
Property and equipment, gross | $ 541,036 | 488,652 |
Est. Useful Life | 7 years | |
Leased Equipment | ||
Property and equipment, gross | $ 22,462 | 0 |
Est. Useful Life | 5 years | |
Vehicles | ||
Property and equipment, gross | $ 2,038,581 | 2,242,221 |
Est. Useful Life | 5 years | |
Land and buildings | ||
Property and equipment, gross | $ 11,240,356 | $ 11,692,779 |
Est. Useful Life | 30 years |
PROPERTY AND EQUIPMENT - Sche_2
PROPERTY AND EQUIPMENT - Schedule Of Depreciation Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Total depreciation & amortization expense | $ 1,101,044 | $ 1,255,647 |
Cost of goods sold - product depreciation | ||
Total depreciation & amortization expense | 328,482 | 338,748 |
Cost of goods sold - service depreciation | ||
Total depreciation & amortization expense | 144,543 | 154,460 |
Operating expense depreciation | ||
Total depreciation & amortization expense | 388,618 | 500,142 |
Amortization expense | ||
Total depreciation & amortization expense | $ 239,401 | $ 262,297 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Minimum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 3 years |
Maximum | |
Finite-Lived Intangible Assets [Line Items] | |
Useful life of intangible assets | 18 years |
INTANGIBLE ASSETS - Finite-Live
INTANGIBLE ASSETS - Finite-Lived Intangible Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Definite-lived intangible assets, net | $ 1,268,907 | $ 1,549,138 |
Patents, trademarks, copyrights, and domain names | ||
Definite-lived intangible assets | 1,903,073 | 2,100,000 |
Less: Accumulated amortization | $ (634,166) | $ (550,862) |
INTANGIBLE ASSETS - Future Amor
INTANGIBLE ASSETS - Future Amortization Expense (Details) | Dec. 31, 2022 USD ($) |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
2023 | $ 164,805 |
2024 | 125,591 |
2025 | 80,899 |
2026 | 80,899 |
2027 | 80,899 |
Greater than 5 years | $ 735,814 |
INTANGIBLE ASSETS - Indefinite-
INTANGIBLE ASSETS - Indefinite-Lived Intangible Assets (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Goodwill | $ 2,579,381 | $ 2,579,381 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Other Liabilities Disclosure [Abstract] | ||
Employee-related payables | $ 2,404,848 | $ 1,621,131 |
Deferred Revenue | 420,827 | 817 |
Inventory-related payables | 285,109 | 67,027 |
Other tax-related payables | 54,762 | 39,895 |
Warranty liabilities | 74,103 | 49,624 |
Other | 334,345 | 93,854 |
Total | $ 3,573,994 | $ 1,872,348 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) warehouse | Dec. 31, 2021 USD ($) | |
Leases [Abstract] | ||
Lease term | 3 years | |
Weighted average discount rate | 4.50% | |
Weighted average remaining lease term | 3 years 6 months | |
Number of leases | warehouse | 1 | |
Renewal term | 2 years | |
Short-term lease cost | $ | $ 79,378 | $ 69,808 |
LEASES - Components of Financin
LEASES - Components of Financing Lease Cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 34,658 | $ 39,565 |
Interest on lease liabilities | 3,147 | 1,676 |
Total financing lease cost | $ 37,805 | $ 41,241 |
LEASES - Supplemental Lease Inf
LEASES - Supplemental Lease Information (Details) | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Assets, Noncurrent |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Liabilities, Current |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Liabilities |
Operating right of use assets | $ 36,303 |
Current operating lease liabilities | 25,385 |
Long-term operating lease liabilities | $ 10,918 |
Weighted-average remaining lease term in years | 1 year 6 months |
Weighted-average discount rate | 4.50% |
LEASES - Future Minimum Lease P
LEASES - Future Minimum Lease Payments to Discounted Finance Lease Liability (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2023 | $ 57,919 | |
2024 | 40,886 | |
2025 | 11,927 | |
2026 | 11,927 | |
2027 | 6,958 | |
Thereafter | 0 | |
Total future minimum lease payments | 129,617 | |
Less: Amount representing interest | 8,088 | |
Present value of future payments | 121,529 | |
Current portion | 53,646 | $ 30,214 |
Long-term portion | $ 67,883 | $ 35,912 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||||||||||
Jun. 15, 2023 | Jun. 15, 2022 USD ($) shares | Apr. 06, 2022 USD ($) performanceMetric agreement shares | Apr. 06, 2022 CAD ($) performanceMetric agreement shares | Jun. 16, 2021 USD ($) shares | May 28, 2021 USD ($) bay agreement shares | May 28, 2021 CAD ($) bay agreement shares | Feb. 18, 2021 USD ($) shares | Oct. 31, 2021 | Dec. 31, 2022 USD ($) shares | Dec. 31, 2021 USD ($) shares | Sep. 30, 2022 USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Treasury stock (in shares) | 5,038,130 | 4,076,909 | ||||||||||
Treasury stock | $ | $ 7,336,323 | $ 6,107,593 | ||||||||||
Stock repurchase program, authorized amount | $ | $ 2,000,000 | |||||||||||
Cooling off period | 30 days | |||||||||||
Treasury stock, shares, acquired (in shares) | 961,221 | 664,531 | ||||||||||
Award vesting period | 5 years | |||||||||||
Unamortized compensation expense | $ | $ 533,462 | |||||||||||
Shares issued (in shares) | 0 | 0 | ||||||||||
Two Thousand Twenty-Two EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of bonus paid in cash | 0.50 | 0.50 | ||||||||||
Percentage of bonus paid in stock | 50% | 50% | ||||||||||
Target payout percentage | 200% | 200% | ||||||||||
Percentage of award covered by metric | 33.33% | 33.33% | ||||||||||
2022 LTIP | Below Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 0% | 0% | ||||||||||
2022 LTIP | Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 50% | 50% | ||||||||||
2022 LTIP | Above Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 75% | 75% | ||||||||||
2022 LTIP | Outstanding | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 100% | 100% | ||||||||||
Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of bonus paid in cash | 0.50 | 0.50 | ||||||||||
Percentage of bonus paid in stock | 50% | 50% | ||||||||||
Target payout percentage | 200% | 200% | ||||||||||
Performance metrics identified | 3 | 3 | 3 | 3 | ||||||||
Two Thousand Twenty-One EIP | Below Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 0% | 0% | ||||||||||
Two Thousand Twenty-One EIP | Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 50% | 50% | ||||||||||
Two Thousand Twenty-One EIP | Above Target | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 75% | 75% | ||||||||||
Two Thousand Twenty-One EIP | Outstanding | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 100% | 100% | ||||||||||
Tranche One | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 33% | 33% | ||||||||||
Tranche One | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 33% | 33% | ||||||||||
Tranche Two | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 67% | 67% | ||||||||||
Tranche Two | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Percentage of award covered by metric | 67% | 67% | ||||||||||
Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 50% | 50% | ||||||||||
Compensation expense | $ | $ 234,000 | |||||||||||
Granted (in shares) | 178,623 | 189,471 | 493,152 | |||||||||
Award vesting period | 1 year | |||||||||||
Unamortized compensation expense | $ | $ 216,000 | $ 45,999 | ||||||||||
Shares issued (in shares) | 27,334 | |||||||||||
Restricted Stock Units | Forecast | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 50% | |||||||||||
Restricted Stock Units | 2021 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Number of restricted stock unit award agreements | agreement | 2 | 2 | ||||||||||
Performance Shares | Two Thousand Twenty-Two EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 33.33% | 33.33% | ||||||||||
Performance Shares | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting rights, percentage | 33.33% | 33.33% | 33.33% | 33.33% | ||||||||
Award vesting period | 3 years | 3 years | ||||||||||
Performance Shares | 2021 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting period | 3 years | 3 years | ||||||||||
Chief Business Development Officer | Two Thousand Twenty-Two EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payments to employees | $ | $ 198,000 | |||||||||||
Chief Business Development Officer | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payments to employees | $ | $ 150,000 | |||||||||||
Chief Business Development Officer | Restricted Stock Units | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 230,232 | 230,232 | ||||||||||
Chief Business Development Officer | Restricted Stock Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 204,543 | 204,543 | ||||||||||
Share-based payment arrangement, number of agreements | agreement | 2 | 2 | ||||||||||
Chief Business Development Officer | Performance Shares | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 153,488 | 153,488 | ||||||||||
Chief Business Development Officer | Performance Shares | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 136,362 | 136,362 | ||||||||||
Chief Business Development Officer | Performance Shares | Tranche One | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 51,163 | 51,163 | ||||||||||
Chief Business Development Officer | Performance Shares | Tranche One | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 45,454 | 45,454 | ||||||||||
Chief Business Development Officer | Time-based Units | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 76,744 | 76,744 | ||||||||||
Chief Business Development Officer | Time-based Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 68,181 | 68,181 | ||||||||||
Vice President of Operations | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payments to employees | $ | $ 54,000 | |||||||||||
Vice President of Operations | Restricted Stock Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 85,908 | 85,908 | ||||||||||
Vice President of Operations | Performance Shares | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 57,272 | 57,272 | ||||||||||
Vice President of Operations | Performance Shares | Tranche One | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 19,091 | 19,091 | ||||||||||
Vice President of Operations | Time-based Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 28,636 | 28,636 | ||||||||||
Vice President of Production Development | Two Thousand Twenty-Two EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payments to employees | $ | $ 64,750 | |||||||||||
Vice President of Production Development | Two Thousand Twenty-One 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 | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 43,023 | 43,023 | ||||||||||
Vice President of Production Development | Restricted Stock Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 47,973 | 47,973 | ||||||||||
Vice President of Production Development | Performance Shares | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 28,682 | 28,682 | ||||||||||
Vice President of Production Development | Performance Shares | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 31,982 | 31,982 | ||||||||||
Vice President of Production Development | Performance Shares | Tranche One | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 9,561 | 9,561 | ||||||||||
Vice President of Production Development | Performance Shares | Tranche One | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 10,661 | 10,661 | ||||||||||
Vice President of Production Development | Time-based Units | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 14,341 | 14,341 | ||||||||||
Vice President of Production Development | Time-based Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 15,991 | 15,991 | ||||||||||
Number of annual installments for vesting | 3 years | 3 years | 3 years | 3 years | ||||||||
Chief Financial Officer | Two Thousand Twenty-Two EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payments to employees | $ | $ 198,000 | |||||||||||
Chief Financial Officer | Two Thousand Twenty-One 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] | ||||||||||||
Granted (in shares) | 18,852 | |||||||||||
Chief Financial Officer | Restricted Stock Units | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 230,232 | 230,232 | ||||||||||
Chief Financial Officer | Restricted Stock Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 204,543 | 204,543 | ||||||||||
Chief Financial Officer | Performance Shares | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 153,488 | 153,488 | ||||||||||
Chief Financial Officer | Performance Shares | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 136,362 | 136,362 | ||||||||||
Chief Financial Officer | Performance Shares | Tranche One | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 51,163 | 51,163 | ||||||||||
Chief Financial Officer | Performance Shares | Tranche One | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 45,454 | 45,454 | ||||||||||
Chief Financial Officer | Time-based Units | 2022 LTIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 76,744 | 76,744 | ||||||||||
Chief Financial Officer | Time-based Units | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 68,181 | 68,181 | ||||||||||
Chief Executive Officer | Two Thousand Twenty-One EIP | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Payments to employees | $ | $ 200,000 | |||||||||||
Co Chief Executive Officer | Restricted Stock Units | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Granted (in shares) | 18,852 |
STOCKHOLDERS' EQUITY - Performa
STOCKHOLDERS' EQUITY - Performance Metrics (Details) | Apr. 06, 2022 | May 28, 2021 |
Weight | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 33.33% | 33.33% |
Performance metric percentage, relative total shareholder return | 33.33% | 33.33% |
EBITDA as a Percentage of Total Revenue | 33.33% | 33.33% |
Target | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 89% | 135% |
Performance metric percentage, relative total shareholder return | 75% | 75% |
EBITDA as a Percentage of Total Revenue | 10% | 10% |
Above Target | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 136% | 194% |
Performance metric percentage, relative total shareholder return | 50% | 50% |
EBITDA as a Percentage of Total Revenue | 15% | 15% |
Outstanding | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total Shareholder Return | 183% | 253% |
Performance metric percentage, relative total shareholder return | 25% | 25% |
EBITDA as a Percentage of Total Revenue | 20% | 20% |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | ||||||||||
Return period | 90 days | |||||||||
Payment period after satisfaction of obligation | 30 days | |||||||||
Revenues | $ 13,971,018 | $ 12,829,338 | $ 9,633,147 | $ 9,503,140 | $ 8,286,346 | $ 6,943,198 | $ 6,034,283 | $ 5,092,349 | $ 45,936,643 | $ 26,356,176 |
Minimum | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Product warranty term | 90 days | |||||||||
Maximum | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Product warranty term | 2 years | |||||||||
Electronics | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | $ 16,278,452 | 9,076,345 | ||||||||
Manufactured | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 2,980,480 | 1,213,218 | ||||||||
Re-Sell | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | 23,059,331 | 13,401,431 | ||||||||
Service | ||||||||||
Disaggregation of Revenue [Line Items] | ||||||||||
Revenues | $ 3,618,380 | $ 2,665,182 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Grant expiration period | 1 year | |
Stock based compensation | $ 814,769 | $ 567,077 |
Unamortized compensation expense | $ 533,462 | |
Weighted average years remaining | 1 year 4 months 9 days | |
Cash received in exercise of stock options | $ 33,863 | 6,053 |
Intrinsic value of options exercised | 19,113 | 2,352 |
Fair value of units vested | $ 742,313 | $ 537,063 |
Shares granted during period (in shares) | 1,011,436 | 770,142 |
Weighted average grant date fair value (in dollars per share) | $ 1.28 | $ 1.14 |
Additional Paid-In Capital | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation | $ 814,769 | $ 567,077 |
2014 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 4,812,000 |
STOCK-BASED COMPENSATION - Opti
STOCK-BASED COMPENSATION - Options Outstanding and Exercisable (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Awards Outstanding | ||
Quantity (in shares) | 1,808,099 | 1,622,573 |
Remaining Contractual Life (in years) | 2 years 1 month 6 days | 2 years 5 months 26 days |
Exercise Price (in dollars per share) | $ 0.35 | $ 0.44 |
Awards Exercisable | ||
Quantity (in shares) | 503,934 | 304,566 |
Remaining Contractual Life (in years) | 1 year 6 months 21 days | 2 years 6 months 21 days |
Exercise Price (in dollars per share) | $ 0.80 | $ 0.80 |
$0 - $0.39 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0 | |
Grant Price High (in dollars per share) | $ 0.39 | |
Awards Outstanding | ||
Quantity (in shares) | 1,048,199 | |
Remaining Contractual Life (in years) | 2 years 6 months | |
Exercise Price (in dollars per share) | $ 0 | |
Awards Exercisable | ||
Quantity (in shares) | 0 | |
$0.40 - $0.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | $ 0.40 | |
Grant Price High (in dollars per share) | $ 0.80 | |
Awards Outstanding | ||
Quantity (in shares) | 469,000 | |
Remaining Contractual Life (in years) | 1 year 7 months 20 days | |
Exercise Price (in dollars per share) | $ 0.79 | |
Awards Exercisable | ||
Quantity (in shares) | 310,000 | |
Exercise Price (in dollars per share) | $ 0.79 | |
$0.81 - $0.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0.81 | |
Grant Price High (in dollars per share) | $ 0.84 | |
Awards Outstanding | ||
Quantity (in shares) | 290,900 | |
Remaining Contractual Life (in years) | 1 year 4 months 28 days | |
Exercise Price (in dollars per share) | $ 0.83 | |
Awards Exercisable | ||
Quantity (in shares) | 193,934 | |
Exercise Price (in dollars per share) | $ 0.83 | |
$0 - $0.39 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0 | |
Grant Price High (in dollars per share) | $ 0.39 | |
Awards Outstanding | ||
Quantity (in shares) | 738,873 | |
Remaining Contractual Life (in years) | 2 years 4 months 28 days | |
Exercise Price (in dollars per share) | $ 0 | |
Awards Exercisable | ||
Quantity (in shares) | 0 | |
$0.40 - $0.80 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | $ 0.40 | |
Grant Price High (in dollars per share) | $ 0.80 | |
Awards Outstanding | ||
Quantity (in shares) | 579,000 | |
Remaining Contractual Life (in years) | 2 years 7 months 20 days | |
Exercise Price (in dollars per share) | $ 0.79 | |
Awards Exercisable | ||
Quantity (in shares) | 203,000 | |
Remaining Contractual Life (in years) | 1 year 7 months 20 days | 2 years 7 months 20 days |
Exercise Price (in dollars per share) | $ 0.79 | |
$0.81 - $0.84 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0.81 | |
Grant Price High (in dollars per share) | $ 0.84 | |
Awards Outstanding | ||
Quantity (in shares) | 304,700 | |
Remaining Contractual Life (in years) | 2 years 4 months 24 days | |
Exercise Price (in dollars per share) | $ 0.83 | |
Awards Exercisable | ||
Quantity (in shares) | 101,566 | |
Remaining Contractual Life (in years) | 1 year 4 months 28 days | 2 years 4 months 24 days |
Exercise Price (in dollars per share) | $ 0.83 |
STOCK-BASED COMPENSATION - Stoc
STOCK-BASED COMPENSATION - Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Awards | ||
Outstanding, beginning of period (in shares) | 865,700 | |
Granted (in shares) | 0 | |
Exercised/Released (in shares) | (38,200) | |
Canceled/Forfeited (in shares) | (67,600) | |
Expired (in shares) | 0 | |
Outstanding, end of period (in shares) | 759,900 | 865,700 |
Vested and exercisable, end of the period (in shares) | 503,934 | |
Vested and expected to vest, end of the period (in shares) | 759,900 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 0.80 | $ 0.80 |
Granted (in dollars per share) | 0 | |
Exercised/Released (in dollars per share) | 0.79 | |
Canceled/Forfeited (in dollars per share) | 0.79 | |
Expired (in dollars per share) | 0 | |
Outstanding, end of period (in dollars per share) | 0.80 | 0.80 |
Vested and exercisable, end of the period (in dollars per share) | 0.80 | |
Vested and expected to vest, end of the period (in dollars per share) | 0.80 | |
Weighted Average Share Price on Date of Exercise | ||
Exercised/Released (in dollars per share) | 1.29 | |
Weighted Average Fair Value | ||
Outstanding, beginning of period (in dollars per share) | 0.37 | |
Granted (in dollars per share) | 0 | |
Exercised/Released (in dollars per share) | 0.37 | |
Canceled/Forfeited (in dollars per share) | 0.37 | |
Expired (in dollars per share) | 0 | |
Outstanding, end of period (in dollars per share) | 0.37 | $ 0.37 |
Vested and exercisable, end of the period (in dollars per share) | 0.37 | |
Vested and expected to vest, end of the period (in dollars per share) | $ 0.37 | |
Weighted Average Remaining Contractual Life (Years) | ||
Outstanding, end of period | 1 year 6 months 18 days | |
Vested and unvested exercisable, end of the period | 1 year 6 months 18 days | |
Vested and expected to vest, end of the period | 1 year 6 months 18 days | |
Aggregate Intrinsic Value | ||
Outstanding, beginning of period | $ 194,920 | $ 223,670 |
Granted | 0 | |
Exercised/Released | 19,113 | 2,352 |
Canceled/Forfeited | 26,324 | |
Expired | 0 | |
Outstanding, end of period | 194,920 | $ 223,670 |
Vested and exercisable, end of the period | 129,213 | |
Vested and expected to vest, end of the period | $ 194,920 | |
Number of Awards | ||
Unvested Outstanding, beginning of period (in shares) | 565,134 | |
Granted (in shares) | 0 | |
Canceled/Forfeited (in shares) | (37,600) | |
Expired (in shares) | 0 | |
Vested, outstanding shares (in shares) | (271,568) | |
Unvested Outstanding, end of period (in shares) | 255,966 | 565,134 |
Weighted Average Exercise Price | ||
Unvested Outstanding, beginning of period (in dollars per share) | $ 0.80 | |
Granted (in dollars per share) | 0 | |
Canceled/Forfeited (in dollars per share) | 0.79 | |
Vested, outstanding shares (in dollars per share) | 0.80 | |
Unvested Outstanding, end of period (in dollars per share) | 0.80 | $ 0.80 |
Weighted Average Grant Date Fair Value | ||
Unvested Outstanding, beginning of period (in dollars per share) | 0.37 | |
Granted (in dollars per share) | 0 | |
Canceled/Forfeited (in dollars per share) | 0.37 | |
Vested, outstanding shares (in dollars per share) | 0.37 | |
Unvested Outstanding, end of period (in dollars per share) | $ 0.37 | $ 0.37 |
Weighted Average Remaining Amortization Period (Years) | ||
Unvested Outstanding, end of period | 6 months 29 days |
STOCK-BASED COMPENSATION - Rest
STOCK-BASED COMPENSATION - Restricted Stock and Restricted Stock Units Activity (Details) - USD ($) | 12 Months Ended | |||
Jun. 15, 2022 | Jun. 16, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of Awards | ||||
Canceled/Forfeited (in shares) | (67,600) | |||
Vested and exercisable, end of the period (in shares) | 503,934 | |||
Weighted Average Share Price on Date of Exercise | ||||
Exercised/Released (in dollars per share) | $ 1.29 | |||
Weighted Average Fair Value | ||||
Cancelled/Forfeited (in dollars per share) | $ 0.37 | |||
Aggregate Intrinsic Value | ||||
Canceled/Forfeited | $ 26,324 | |||
Expired | 100,857 | |||
Vested and exercisable, end of the period | $ 129,213 | |||
Number of Awards | ||||
Canceled/Forfeited (in shares) | (67,600) | |||
Weighted Average Grant Date Fair Value | ||||
Cancelled/Forfeited (in dollars per share) | $ 0.37 | |||
Restricted Stock Awards | ||||
Number of Awards | ||||
Outstanding, beginning of period (in shares) | 0 | 0 | ||
Granted (in shares) | 182,626 | |||
Exercised/Released (in shares) | (182,626) | |||
Outstanding, end of period (in shares) | 0 | |||
Vested and exercisable, end of the period (in shares) | 0 | |||
Vested and expected to vest, end of the period (in shares) | 0 | |||
Weighted Average Share Price on Date of Exercise | ||||
Exercised/Released (in dollars per share) | $ 1.24 | |||
Weighted Average Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | 0 | $ 0 | ||
Granted (in dollars per share) | 1.24 | |||
Exercised/Released (in dollars per share) | 1.24 | |||
Outstanding, end of period (in dollars per share) | 0 | |||
Vested and expected to vest, end of the period (usd per share) | $ 0 | |||
Weighted Average Remaining Contractual Life (Years) | ||||
Outstanding, end of period | 0 years | |||
Vested and expected to vest, end of the period | 0 years | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning of period | $ 0 | |||
Granted | 226,456 | |||
Exercised/Released | 226,456 | |||
Outstanding, end of period | 0 | |||
Vested and exercisable, end of the period | 0 | |||
Vested and expected to vest, end of the period | $ 0 | |||
Number of Awards | ||||
Unvested Outstanding, beginning of period (in shares) | 0 | |||
Granted (in shares) | 182,626 | |||
Vested, outstanding shares (in shares) | (182,626) | |||
Unvested Outstanding, end of period (in shares) | 0 | |||
Weighted Average Grant Date Fair Value | ||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 0 | $ 0 | ||
Granted (in dollars per share) | 1.24 | |||
Vested, outstanding shares (in dollars per share) | 1.24 | |||
Unvested Outstanding, end of period (in dollars per share) | $ 0 | |||
Weighted Average Remaining Amortization Period (Years) | ||||
Unvested Outstanding, end of period | 0 years | |||
Restricted Stock Units | ||||
Number of Awards | ||||
Outstanding, beginning of period (in shares) | 407,835 | 258,206 | ||
Granted (in shares) | 178,623 | 189,471 | 493,152 | |
Exercised/Released (in shares) | (321,723) | |||
Canceled/Forfeited (in shares) | (21,800) | |||
Outstanding, end of period (in shares) | 407,835 | |||
Vested and exercisable, end of the period (in shares) | 0 | |||
Vested and expected to vest, end of the period (in shares) | 407,835 | |||
Weighted Average Share Price on Date of Exercise | ||||
Exercised/Released (in dollars per share) | $ 1.21 | |||
Weighted Average Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | 1.31 | $ 1.33 | ||
Granted (in dollars per share) | 1.28 | |||
Exercised/Released (in dollars per share) | 1.29 | |||
Cancelled/Forfeited (in dollars per share) | 1.28 | |||
Outstanding, end of period (in dollars per share) | 1.31 | |||
Vested and expected to vest, end of the period (usd per share) | $ 1.31 | |||
Weighted Average Remaining Contractual Life (Years) | ||||
Outstanding, end of period | 2 years 5 months 15 days | |||
Vested and expected to vest, end of the period | 2 years 5 months 15 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning of period | $ 273,698 | |||
Granted | 632,404 | |||
Exercised/Released | 390,890 | |||
Canceled/Forfeited | 27,551 | |||
Outstanding, end of period | 432,305 | |||
Vested and exercisable, end of the period | 0 | |||
Vested and expected to vest, end of the period | $ 432,305 | |||
Number of Awards | ||||
Unvested Outstanding, beginning of period (in shares) | 258,206 | |||
Granted (in shares) | 178,623 | 189,471 | 493,152 | |
Canceled/Forfeited (in shares) | (21,800) | |||
Vested, outstanding shares (in shares) | (321,723) | |||
Unvested Outstanding, end of period (in shares) | 407,835 | |||
Weighted Average Grant Date Fair Value | ||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 1.31 | $ 1.33 | ||
Granted (in dollars per share) | 1.28 | |||
Cancelled/Forfeited (in dollars per share) | 1.28 | |||
Vested, outstanding shares (in dollars per share) | 1.29 | |||
Unvested Outstanding, end of period (in dollars per share) | $ 1.31 | |||
Weighted Average Remaining Amortization Period (Years) | ||||
Unvested Outstanding, end of period | 1 year 2 months 15 days | |||
Performance Based Restricted Stock Units | ||||
Number of Awards | ||||
Outstanding, beginning of period (in shares) | 640,364 | 480,667 | ||
Granted (in shares) | 335,658 | |||
Exercised/Released (in shares) | 0 | |||
Canceled/Forfeited (in shares) | (80,813) | |||
Expired (in shares) | (95,148) | |||
Outstanding, end of period (in shares) | 640,364 | |||
Vested and exercisable, end of the period (in shares) | 0 | |||
Vested and expected to vest, end of the period (in shares) | 320,182 | |||
Weighted Average Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | $ 1.21 | $ 1.24 | ||
Granted (in dollars per share) | 1.29 | |||
Exercised/Released (in dollars per share) | 0 | |||
Cancelled/Forfeited (in dollars per share) | 1.26 | |||
Expired (in dollars per share) | 1.57 | |||
Outstanding, end of period (in dollars per share) | 1.21 | |||
Vested and expected to vest, end of the period (usd per share) | $ 1.21 | |||
Weighted Average Remaining Contractual Life (Years) | ||||
Outstanding, end of period | 2 years 6 months 10 days | |||
Vested and expected to vest, end of the period | 2 years 6 months 10 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning of period | $ 509,507 | |||
Granted | 432,999 | |||
Exercised/Released | 0 | |||
Canceled/Forfeited | 105,057 | |||
Outstanding, end of period | 678,786 | |||
Vested and exercisable, end of the period | 0 | |||
Vested and expected to vest, end of the period | $ 339,393 | |||
Number of Awards | ||||
Unvested Outstanding, beginning of period (in shares) | 480,667 | |||
Granted (in shares) | 335,658 | |||
Canceled/Forfeited (in shares) | (80,813) | |||
Vested, outstanding shares (in shares) | 0 | |||
Expired (in shares) | (95,148) | |||
Unvested Outstanding, end of period (in shares) | 640,364 | |||
Weighted Average Grant Date Fair Value | ||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 1.21 | $ 1.24 | ||
Granted (in dollars per share) | 1.29 | |||
Cancelled/Forfeited (in dollars per share) | 1.26 | |||
Vested, outstanding shares (in dollars per share) | 0 | |||
Unvested Outstanding, end of period (in dollars per share) | $ 1.21 | |||
Weighted Average Remaining Amortization Period (Years) | ||||
Unvested Outstanding, end of period | 1 year 8 months 12 days |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Contingency [Line Items] | |||
Accrued interest and penalties | $ 0 | $ 0 | |
Operating loss carryforwards, valuation allowance, percentage | 100% | 80% | |
Tax credits | $ 118,035 | $ 67 | $ 416,560 |
Proceeds from tax refunds | 131,805 | ||
Other comprehensive income (loss), tax expense (benefit) | (167,868) | (2,158) | |
Canadian Subsidiary | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 2,071,363 | 4,351,044 | |
US Subsidary | |||
Income Tax Contingency [Line Items] | |||
Operating loss carryforwards | 0 | $ 1,575,071 | |
Payroll tax credit | 1,500,000 | ||
Payroll tax credit, offset | 204,000 | ||
Decrease in payroll tax expense | $ 761,132 |
PROVISION FOR INCOME TAXES - Co
PROVISION FOR INCOME TAXES - Components of Income Tax Expense (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current | ||||||||||
U.S. Federal | $ 887,732 | $ (492,757) | ||||||||
State and local | 176,700 | 25,374 | ||||||||
Foreign | 0 | (179,939) | ||||||||
Total Current | 1,064,432 | (647,322) | ||||||||
Deferred | ||||||||||
U.S. Federal | 435,603 | 15,831 | ||||||||
State and local | 85,670 | 2,133 | ||||||||
Foreign | 152,717 | 0 | ||||||||
Total Deferred | 673,990 | 17,964 | ||||||||
Total Provision for (Benefit from) Income Taxes | $ 592,503 | $ 958,300 | $ 27,177 | $ 160,442 | $ (47,358) | $ (348,767) | $ (125,374) | $ (107,859) | $ 1,738,422 | $ (629,358) |
PROVISION FOR INCOME TAXES - Ef
PROVISION FOR INCOME TAXES - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
U.S. Federal statutory tax rate | 21% | 21% |
State and local statutory tax rate, net of federal effect | 4% | 4% |
Depreciation expense | 1.80% | (2.90%) |
Tax-exempt income | (0.90%) | 2.90% |
Unrealized gains and losses on investments | (2.60%) | 0.10% |
Stock-based compensation | 0.10% | 0% |
Goodwill and intangible asset amortization | 0.60% | 5.20% |
Non-U.S. operations | 3.30% | 9.20% |
Use of Net Operating Losses | 5.80% | 0% |
Other | (2.60%) | (2.10%) |
Effective tax rate | 30.50% | 37.40% |
PROVISION FOR INCOME TAXES - De
PROVISION FOR INCOME TAXES - Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Bad debt | $ 37,814 | $ 21,903 |
Inventory reserve | 48,572 | 130,776 |
Amortization | 101,745 | 124,626 |
Unrealized loss on investments | 154,987 | 0 |
UNICAP | 75,110 | 0 |
U.S. net operating loss | 0 | 401,023 |
Foreign net operating loss | 0 | 163,254 |
Deferred tax asset | 418,228 | 841,582 |
Unrealized gain on investments | 0 | 12,651 |
Depreciation | 338,574 | 265,374 |
Goodwill | 219,252 | 174,365 |
Stock compensation | 349,260 | 362,044 |
Deferred tax liability | 907,086 | 814,434 |
Net Deferred Tax Asset (Liability) | $ 27,148 | |
Net Deferred Tax Asset (Liability) | $ (488,858) |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE - Calculation of EPS (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income (Numerator) | ||||||||||
Net income (loss) available to common stockholders | $ 1,825,022 | $ 1,210,748 | $ 284,829 | $ 627,161 | $ (145,123) | $ 92,246 | $ (397,166) | $ (601,500) | $ 3,947,760 | $ (1,051,543) |
Stock options & RSUs | 0 | 0 | ||||||||
Net income (loss) available to common stockholders + assumed conversions | $ 3,947,760 | $ (1,051,543) | ||||||||
Weighted Average Shares (Denominator) | ||||||||||
Net income (loss) available to common stockholders (shares) | 47,161,101 | 48,070,581 | ||||||||
Stock options & RSUs (shares) | 1,286,241 | 0 | ||||||||
Net income (loss) available to common stockholders + assumed conversions (shares) | 48,447,342 | 48,070,581 | ||||||||
Per-Share Amount | ||||||||||
Net income (loss) available to common stockholders (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.01 | $ 0.01 | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0.08 | $ (0.02) |
Net income (loss) available to common stockholders + assumed conversions (in dollars per share) | $ 0.04 | $ 0.02 | $ 0.01 | $ 0.01 | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0.08 | $ (0.02) |
BASIC AND DILUTED EARNINGS PE_4
BASIC AND DILUTED EARNINGS PER SHARE - Narrative (Details) | 12 Months Ended |
Dec. 31, 2021 $ / shares shares | |
Earnings Per Share [Abstract] | |
Antidilutive securities excluded (in shares) | shares | 1,622,573 |
Antidilutive securities excluded (in dollars per share) | $ / shares | $ 1.13 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenues | $ 13,971,018 | $ 12,829,338 | $ 9,633,147 | $ 9,503,140 | $ 8,286,346 | $ 6,943,198 | $ 6,034,283 | $ 5,092,349 | $ 45,936,643 | $ 26,356,176 |
Profit (Loss) | 1,825,022 | $ 1,210,748 | $ 284,829 | $ 627,161 | (145,123) | $ 92,246 | $ (397,166) | $ (601,500) | 3,947,760 | (1,051,543) |
Long-lived assets | 10,544,203 | 11,250,819 | 10,544,203 | 11,250,819 | ||||||
Canada | ||||||||||
Revenues | 8,439,532 | 5,362,466 | ||||||||
Profit (Loss) | 754,004 | (2,056,972) | ||||||||
Long-lived assets | 5,067,965 | 5,667,225 | 5,067,965 | 5,667,225 | ||||||
United States | ||||||||||
Revenues | 37,497,111 | 20,993,710 | ||||||||
Profit (Loss) | 3,193,756 | 1,005,429 | ||||||||
Long-lived assets | $ 5,476,238 | $ 5,583,594 | $ 5,476,238 | $ 5,583,594 |
QUARTERLY INFORMATION (UNAUDI_3
QUARTERLY INFORMATION (UNAUDITED) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Total revenues | $ 13,971,018 | $ 12,829,338 | $ 9,633,147 | $ 9,503,140 | $ 8,286,346 | $ 6,943,198 | $ 6,034,283 | $ 5,092,349 | $ 45,936,643 | $ 26,356,176 |
Gross profit | 6,572,665 | 6,118,876 | 4,403,145 | 4,556,704 | 3,449,128 | 3,119,468 | 2,657,732 | 2,174,687 | 21,651,390 | 11,401,015 |
INCOME (LOSS) FROM OPERATIONS | 2,292,914 | 2,117,893 | 94,807 | 688,994 | (298,049) | (318,289) | (594,437) | (804,225) | 5,194,608 | (2,015,000) |
Income tax benefit (expense) | (592,503) | (958,300) | (27,177) | (160,442) | 47,358 | 348,767 | 125,374 | 107,859 | (1,738,422) | 629,358 |
Net income (loss) | $ 1,825,022 | $ 1,210,748 | $ 284,829 | $ 627,161 | $ (145,123) | $ 92,246 | $ (397,166) | $ (601,500) | $ 3,947,760 | $ (1,051,543) |
Basic earnings (loss) per common share (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.01 | $ 0.01 | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0.08 | $ (0.02) |
Diluted earnings (loss) per common share (in dollars per share) | $ 0.04 | $ 0.02 | $ 0.01 | $ 0.01 | $ 0 | $ 0 | $ (0.01) | $ (0.01) | $ 0.08 | $ (0.02) |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 CAD ($) | Mar. 31, 2014 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Consulting agreement term | 10 years | 10 years | ||
Consulting agreement, quarterly payments | $ 100,000 | $ 73,700 | ||
Rent expense | $ 79,378 | $ 69,808 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Rental Payments for Operating Leases (Details) | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2023 | $ 26,400 |
2024 | 11,000 |
2025 | 0 |
2026 | 0 |
2027 | 0 |
Thereafter | 0 |
Total | $ 37,400 |
GOVERNMENT ASSISTANCE (Details)
GOVERNMENT ASSISTANCE (Details) - CAD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Government Assistance [Abstract] | ||
Labor expense, offset, Canada emergency wage subsidy | $ 0 | $ 163,598 |
Labor expense, offset, various Canada grant programs | $ 24,659 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - shares | 12 Months Ended | ||
Mar. 06, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | |||
Shares issued (in shares) | 0 | 0 | |
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Shares issued (in shares) | 192,964 |