Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Nov. 07, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
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 | |
Entity Address, Address Line Two | Suite 1 | |
Entity Address, City or Town | Lindon | |
Entity Address, State or Province | UT | |
Entity Address, Postal Zip Code | 84042 | |
City Area Code | 801 | |
Local Phone Number | 796-5127 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Title of 12(b) Security | Common, $0.001 Par Value | |
Trading Symbol | PFIE | |
Security Exchange Name | NASDAQ | |
Entity Common Stock, Shares Outstanding (in shares) | 47,587,952 | |
Amendment Flag | false | |
Entity Central Index Key | 0001289636 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 8,338,863 | $ 7,384,578 |
Short-term investments | 2,795,040 | 1,154,284 |
Accounts receivable, net | 13,253,470 | 10,886,145 |
Inventories, net (note 3) | 13,531,652 | 10,293,980 |
Prepaid expenses and other current assets (note 4) | 2,744,172 | 2,314,639 |
Total Current Assets | 40,663,197 | 32,033,626 |
LONG-TERM ASSETS | ||
Long-term investments | 6,220,703 | 7,503,419 |
Financing lease right-of-use asset | 136,332 | 120,239 |
Property and equipment, net | 10,650,384 | 10,423,964 |
Intangible assets, net | 1,143,480 | 1,268,907 |
Goodwill | 2,579,381 | 2,579,381 |
Total Long-Term Assets | 20,730,280 | 21,895,910 |
TOTAL ASSETS | 61,393,477 | 53,929,536 |
CURRENT LIABILITIES | ||
Accounts payable | 1,193,876 | 2,955,506 |
Accrued liabilities (note 5) | 3,760,890 | 3,573,994 |
Current financing lease liability (note 6) | 65,321 | 53,646 |
Income taxes payable | 669,431 | 205,169 |
Total Current Liabilities | 5,689,518 | 6,788,315 |
LONG-TERM LIABILITIES | ||
Net deferred income tax liability | 955,256 | 488,858 |
Long-term financing lease liability (note 6) | 74,495 | 67,883 |
TOTAL LIABILITIES | 6,719,269 | 7,345,056 |
STOCKHOLDERS' EQUITY (note 7) | ||
Preferred stock: $0.001 par value, 10,000,000 shares authorized: no shares issued or outstanding | 0 | 0 |
Common stock: $0.001 par value, 100,000,000 shares authorized: 52,949,566 issued and 47,671,720 outstanding at September 30, 2023, and 52,143,901 issued and 47,105,771 outstanding at December 31, 2022 | 52,952 | 52,144 |
Treasury stock, at cost | (7,675,637) | (7,336,323) |
Additional paid-in capital | 32,734,069 | 31,737,843 |
Accumulated other comprehensive loss | (3,349,033) | (3,294,873) |
Retained earnings | 32,911,857 | 25,425,689 |
TOTAL STOCKHOLDERS' EQUITY | 54,674,208 | 46,584,480 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 61,393,477 | $ 53,929,536 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
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) | 52,949,566 | 52,143,901 |
Common stock, shares outstanding (in shares) | 47,671,720 | 47,105,771 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income and Comprehensive Income (Loss) (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
REVENUES (note 8) | ||||
Total Revenues | $ 14,828,936 | $ 12,829,338 | $ 43,825,975 | $ 31,965,625 |
COST OF SALES | ||||
Total Cost of Sales | 7,351,852 | 6,710,462 | 21,101,337 | 16,886,900 |
GROSS PROFIT | 7,477,084 | 6,118,876 | 22,724,638 | 15,078,725 |
OPERATING EXPENSES | ||||
General and administrative | 4,572,460 | 3,538,541 | 12,487,783 | 10,878,734 |
Research and development | 215,359 | 309,566 | 734,894 | 818,823 |
Depreciation and amortization | 145,662 | 152,876 | 428,644 | 479,473 |
Total Operating Expenses | 4,933,481 | 4,000,983 | 13,651,321 | 12,177,030 |
INCOME FROM OPERATIONS | 2,543,603 | 2,117,893 | 9,073,317 | 2,901,695 |
OTHER INCOME (EXPENSE) | ||||
Gain on sale of assets | 17,350 | 12,887 | 251,768 | 323,570 |
Other expense | 19,718 | (5,761) | (26,704) | (24,180) |
Interest income | 74,165 | 45,107 | 255,865 | 86,959 |
Interest expense | (4,438) | (1,078) | (6,226) | (19,387) |
Total Other Income | 106,795 | 51,155 | 474,703 | 366,962 |
INCOME BEFORE INCOME TAXES | 2,650,398 | 2,169,048 | 9,548,020 | 3,268,657 |
INCOME TAX EXPENSE | (611,008) | (958,300) | (2,061,851) | (1,145,919) |
NET INCOME | 2,039,390 | 1,210,748 | 7,486,169 | 2,122,738 |
OTHER COMPREHENSIVE LOSS | ||||
Foreign currency translation loss | (301,642) | (591,282) | (28,838) | (723,209) |
Unrealized losses on investments | (71,193) | (172,802) | (25,322) | (594,596) |
Total Other Comprehensive Loss | (372,835) | (764,084) | (54,160) | (1,317,805) |
COMPREHENSIVE INCOME | $ 1,666,555 | $ 446,664 | $ 7,432,009 | $ 804,933 |
BASIC EARNINGS PER SHARE (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.16 | $ 0.04 |
FULLY DILUTED EARNINGS PER SHARE (in dollars per share) | $ 0.04 | $ 0.02 | $ 0.15 | $ 0.04 |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 47,521,238 | 47,036,012 | 47,364,445 | 47,201,611 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 49,504,024 | 48,558,207 | 49,314,304 | 48,761,346 |
Product | ||||
REVENUES (note 8) | ||||
Total Revenues | $ 13,970,065 | $ 11,895,881 | $ 41,201,461 | $ 29,634,986 |
COST OF SALES | ||||
Total Cost of Sales | 6,551,986 | 5,960,311 | 18,796,499 | 14,873,075 |
Service | ||||
REVENUES (note 8) | ||||
Total Revenues | 858,871 | 933,457 | 2,624,514 | 2,330,639 |
COST OF SALES | ||||
Total Cost of Sales | $ 799,866 | $ 750,151 | $ 2,304,838 | $ 2,013,825 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Retained Earnings |
Balance, beginning of period (in shares) at Dec. 31, 2021 | 47,643,233 | |||||
Balance, beginning 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 [Roll Forward] | ||||||
Stock based compensation | 138,503 | 138,503 | ||||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 139,894 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 212,787 | $ 140 | 212,647 | |||
Tax withholdings paid related to stock based compensation | (91,098) | (91,098) | ||||
Treasury stock repurchased (in shares) | (509,631) | |||||
Treasury stock repurchased | (622,263) | (622,263) | ||||
Foreign currency translation | 158,359 | 158,359 | ||||
Unrealized gains (losses) on investments | (287,126) | (287,126) | ||||
Net income | 627,161 | 627,161 | ||||
Balance, end of period (in shares) at Mar. 31, 2022 | 47,273,496 | |||||
Balance, end of period at Mar. 31, 2022 | 44,277,306 | $ 51,860 | 31,079,446 | (2,229,234) | (6,729,856) | 22,105,090 |
Balance, beginning of period (in shares) at Dec. 31, 2021 | 47,643,233 | |||||
Balance, beginning 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 [Roll Forward] | ||||||
Unrealized gains (losses) on investments | (594,596) | |||||
Net income | 2,122,738 | |||||
Balance, end of period (in shares) at Sep. 30, 2022 | 47,040,153 | |||||
Balance, end of period at Sep. 30, 2022 | 44,468,377 | $ 52,079 | 31,570,226 | (3,418,272) | (7,336,323) | 23,600,667 |
Balance, beginning of period (in shares) at Mar. 31, 2022 | 47,273,496 | |||||
Balance, beginning of period at Mar. 31, 2022 | 44,277,306 | $ 51,860 | 31,079,446 | (2,229,234) | (6,729,856) | 22,105,090 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 274,390 | 274,390 | ||||
Stock issued in exercise of stock options (in shares) | 27,200 | |||||
Stock issued in exercise of stock options | 21,582 | $ 28 | 21,554 | |||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 184,047 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 0 | $ 184 | (184) | |||
Tax withholdings paid related to stock based compensation | (3,524) | (3,524) | ||||
Treasury stock repurchased (in shares) | (451,590) | |||||
Treasury stock repurchased | (606,467) | (606,467) | ||||
Foreign currency translation | (290,292) | (290,292) | ||||
Unrealized gains (losses) on investments | (134,662) | (134,662) | ||||
Net income | 284,829 | 284,829 | ||||
Balance, end of period (in shares) at Jun. 30, 2022 | 47,033,153 | |||||
Balance, end of period at Jun. 30, 2022 | 43,823,162 | $ 52,072 | 31,371,682 | (2,654,188) | (7,336,323) | 22,389,919 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 193,056 | 193,056 | ||||
Stock issued in exercise of stock options (in shares) | 7,000 | |||||
Stock issued in exercise of stock options | 5,495 | $ 7 | 5,488 | |||
Foreign currency translation | (591,282) | (591,282) | ||||
Unrealized gains (losses) on investments | (172,802) | (172,802) | ||||
Net income | 1,210,748 | 1,210,748 | ||||
Balance, end of period (in shares) at Sep. 30, 2022 | 47,040,153 | |||||
Balance, end of period at Sep. 30, 2022 | $ 44,468,377 | $ 52,079 | 31,570,226 | (3,418,272) | (7,336,323) | 23,600,667 |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 47,105,771 | 47,105,771 | ||||
Balance, beginning of period at Dec. 31, 2022 | $ 46,584,480 | $ 52,144 | 31,737,843 | (3,294,873) | (7,336,323) | 25,425,689 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 223,047 | 223,047 | ||||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 246,116 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 378,526 | $ 247 | 378,279 | |||
Tax withholdings paid related to stock based compensation | (242,506) | (242,506) | ||||
Foreign currency translation | (5,524) | (5,524) | ||||
Unrealized gains (losses) on investments | 76,287 | 76,287 | ||||
Net income | 2,589,621 | 2,589,621 | ||||
Balance, end of period (in shares) at Mar. 31, 2023 | 47,351,887 | |||||
Balance, end of period at Mar. 31, 2023 | $ 49,603,930 | $ 52,391 | 32,096,662 | (3,224,110) | (7,336,323) | 28,015,310 |
Balance, beginning of period (in shares) at Dec. 31, 2022 | 47,105,771 | 47,105,771 | ||||
Balance, beginning of period at Dec. 31, 2022 | $ 46,584,480 | $ 52,144 | 31,737,843 | (3,294,873) | (7,336,323) | 25,425,689 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Unrealized gains (losses) on investments | (25,322) | |||||
Net income | $ 7,486,169 | |||||
Balance, end of period (in shares) at Sep. 30, 2023 | 47,671,720 | 47,671,720 | ||||
Balance, end of period at Sep. 30, 2023 | $ 54,674,208 | $ 52,952 | 32,734,069 | (3,349,033) | (7,675,637) | 32,911,857 |
Balance, beginning of period (in shares) at Mar. 31, 2023 | 47,351,887 | |||||
Balance, beginning of period at Mar. 31, 2023 | 49,603,930 | $ 52,391 | 32,096,662 | (3,224,110) | (7,336,323) | 28,015,310 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 360,446 | 360,446 | ||||
Stock issued in exercise of stock options (in shares) | 82,450 | |||||
Stock issued in exercise of stock options | 65,335 | $ 83 | 65,252 | |||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 187,296 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 0 | $ 188 | (188) | |||
Tax withholdings paid related to stock based compensation | (7,175) | (7,175) | ||||
Treasury stock repurchased (in shares) | (47,073) | |||||
Treasury stock repurchased | (57,958) | (57,958) | ||||
Foreign currency translation | 278,328 | 278,328 | ||||
Unrealized gains (losses) on investments | (30,416) | (30,416) | ||||
Net income | 2,857,157 | 2,857,157 | ||||
Balance, end of period (in shares) at Jun. 30, 2023 | 47,574,560 | |||||
Balance, end of period at Jun. 30, 2023 | 53,069,647 | $ 52,662 | 32,514,997 | (2,976,198) | (7,394,281) | 30,872,467 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Stock based compensation | 294,899 | 294,899 | ||||
Stock issued in exercise of stock options (in shares) | 289,803 | |||||
Stock issued in exercise of stock options | 177,811 | $ 290 | 177,521 | |||
Tax withholdings paid related to stock based compensation | (253,348) | (253,348) | ||||
Treasury stock repurchased (in shares) | (192,643) | |||||
Treasury stock repurchased | (281,356) | (281,356) | ||||
Foreign currency translation | (301,642) | (301,642) | ||||
Unrealized gains (losses) on investments | (71,193) | (71,193) | ||||
Net income | $ 2,039,390 | 2,039,390 | ||||
Balance, end of period (in shares) at Sep. 30, 2023 | 47,671,720 | 47,671,720 | ||||
Balance, end of period at Sep. 30, 2023 | $ 54,674,208 | $ 52,952 | $ 32,734,069 | $ (3,349,033) | $ (7,675,637) | $ 32,911,857 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
OPERATING ACTIVITIES | ||
Net income | $ 7,486,169 | $ 2,122,738 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 822,204 | 831,036 |
Gain on sale of property and equipment | (251,768) | (323,570) |
Bad debt expense | 420,883 | 40,948 |
Stock awards issued for services | 878,392 | 605,955 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (2,360,696) | (2,620,155) |
Income taxes receivable/payable | 464,256 | 1,130,931 |
Inventories | (3,245,588) | (3,190,546) |
Prepaid expenses and other current assets | (437,023) | (1,668,442) |
Deferred tax asset/liability | 466,398 | 307,663 |
Accounts payable and accrued liabilities | (1,574,995) | 1,566,810 |
Net Cash Provided by (Used in) Operating Activities | 2,668,232 | (1,196,632) |
INVESTING ACTIVITIES | ||
Proceeds from sale of property and equipment | 328,350 | 549,574 |
Purchase of investments | (383,520) | (133,371) |
Purchase of property and equipment | (974,070) | (370,791) |
Net Cash Provided by (Used in) Investing Activities | (1,029,240) | 45,412 |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (502,307) | (94,802) |
Cash received in exercise of stock options | 178,195 | 31,084 |
Purchase of treasury stock | (339,313) | (1,228,731) |
Principal paid toward lease liability | (26,617) | (28,145) |
Net Cash Used in Financing Activities | (690,042) | (1,320,594) |
Effect of exchange rate changes on cash | 5,335 | (76,591) |
NET CHANGE IN CASH | 954,285 | (2,548,405) |
CASH AT BEGINNING OF PERIOD | 7,384,578 | 8,188,270 |
CASH AT END OF PERIOD | 8,338,863 | 5,639,865 |
CASH PAID FOR: | ||
Interest | 6,227 | 2,331 |
Income taxes | 1,126,750 | 21,000 |
NON-CASH FINANCING AND INVESTING ACTIVITIES | ||
Common stock issued in settlement of accrued bonuses | $ 378,526 | $ 212,787 |
CONDENSED FINANCIAL STATEMENTS
CONDENSED FINANCIAL STATEMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
CONDENSED FINANCIAL STATEMENTS | CONDENSED FINANCIAL STATEMENTS Except where the context otherwise requires, all references herein to the "Company," "Profire," "we," "us," "our," or similar words and phrases are to Profire Energy, Inc. and its wholly owned subsidiaries, taken together. The accompanying condensed consolidated financial statements have been prepared by the Company without audit. In the opinion of management, all adjustments have been made (which include only normal recurring adjustments) which are necessary to present fairly the financial position, results of operations, stockholders' equity, and cash flows at September 30, 2023 and for all periods presented herein. Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP") have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the Company's audited financial statements contained in its annual report on Form 10-K for the year ended December 31, 2022 ("Form 10-K"). The results of operations for the three- and nine-month periods ended September 30, 2023 and 2022 are not necessarily indicative of the operating results for the full years. Certain amounts in the accompanying September 30, 2022 condensed consolidated statement of income and comprehensive income (loss) have been reclassified to conform to the September 30, 2023 presentation. |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Line of Business This Organization and Summary of Significant Accounting Policies of the Company is presented to assist in understanding the Company's condensed consolidated financial statements. The Company's accounting policies conform to "US GAAP." The Company provides burner-management products, solutions and services primarily for the oil and gas industry within the US and Canadian markets. The Company has made progress in expansion efforts outside of these markets into other industries with combustion and burner management requirements as well as into other international locations. Significant Accounting Policies There have been no changes to the significant accounting policies of the Company from the information provided in Note 1 of the notes to the consolidated financial statements in the Company's most recent Form 10-K. Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
INVENTORIES
INVENTORIES | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at each balance sheet date: As of September 30, 2023 December 31, 2022 Raw materials $ 314,390 $ 166,927 Finished goods 13,661,652 10,452,930 Subtotal 13,976,042 10,619,857 Reserve for obsolescence (444,390) (325,877) Total $ 13,531,652 $ 10,293,980 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 December 31, 2022 Prepaid inventory $ 1,868,310 $ 784,420 Accrued receivables 30,478 881,176 Prepaid insurance 446,434 240,785 Interest receivables 63,069 72,761 Tax credits 163 118,035 Other 335,718 217,462 Total $ 2,744,172 $ 2,314,639 |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following at each balance sheet date: As of September 30, 2023 December 31, 2022 Employee-related payables $ 2,069,882 $ 2,404,848 Deferred revenue 593,014 420,827 Inventory-related payables 779,535 285,109 Tax-related payables 28,689 54,762 Warranty liabilities 106,174 74,103 Other 183,596 334,345 Total $ 3,760,890 $ 3,573,994 |
LEASES
LEASES | 9 Months Ended |
Sep. 30, 2023 | |
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 between 36 and 60 months. We have the option to extend most office equipment leases, but we do not intend to do so. Accordingly, no extensions have been recognized in the right-of-use asset or lease liability. The office equipment lease payments are not variable, and the lease agreements do not include any non-lease components, residual value guarantees, or restrictions. There are no interest rates implicit in the office equipment lease agreements, so we have used our incremental borrowing rate to determine the discount rate to be applied to our financing leases for the purpose of determining our lease liabilities. The weighted average discount rate applied to our financing leases is 4.50% and the weighted average remaining lease term is 2.8 years. The following table shows the components of financing lease cost: For the Three Months Ended September 30, For the Nine Months Ended September 30, Financing Lease Cost 2023 2022 2023 2022 Amortization of right-of-use assets $ 14,332 $ 7,240 $ 28,811 $ 28,308 Interest on lease liabilities 4,438 1,078 6,226 2,331 Total financing lease cost $ 18,770 $ 8,318 $ 35,037 $ 30,639 The Company leases one warehouse space with a two-year lease, which is recorded as an operating lease. We consider the remainder of our office space leases to be short-term, and we have elected not to recognize those on our balance sheet under the short-term recognition exemption. Operating lease expense recognized during the three- and nine- months ended September 30, 2023 and September 30, 2022 was $15,081 and $13,356, and $52,285 and $35,263, respectively. Supplemental operating lease information as of September 30, 2023 is as follows: Operating right of use assets $ 17,372 Current operating lease liabilities 17,372 Long-term operating lease liabilities — Weighted-average remaining lease term in years 0.8 Weighted-average discount rate 4.5 % As of September 30, 2023, maturities of lease liabilities are as follows: Years ending December 31, Amount 2023 $ 21,383 2024 68,501 2025 39,542 2026 23,433 2027 6,957 Thereafter — Total future minimum lease payments $ 159,816 Less: Amount representing interest 20,000 Present value of future payments $ 139,816 Current portion $ 65,321 Long-term portion $ 74,495 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
STOCKHOLDERS' EQUITY | STOCKHOLDERS' EQUITY As of September 30, 2023 and December 31, 2022, the Company held 5,277,846 and 5,038,130 shares of its common stock in treasury at a total cost of $7,675,637 and $7,336,323, respectively. On May 9, 2023, the Company announced that its Board of Directors had authorized 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 April 30, 2024. Any purchases under the program will be made at the discretion of management or may also be made pursuant to a Rule 10b5-1 plan. The size and timing of any purchases will depend on price, market and business conditions and other factors. As of September 30, 2023, the Company had 785,995 restricted stock units ("RSUs"), 1,057,044 performance-based RSUs, and 228,350 stock options outstanding with $804,632 in remaining compensation expense to be recognized over the next 1.5 years. See further details below about certain subsets of these outstanding equity-based awards. On June 29, 2023, pursuant to the annual renewal of director compensation, the Board approved a grant of 195,966 RSUs to the Company's independent directors. Half of the RSUs vested immediately on the date of grant and the remaining 50% of the RSUs will vest on the first anniversary of the grant date or at the Company's next annual meeting of stockholders, whichever is earlier. The awards will result in total compensation expense of approximately $243,000 to be recognized over the vesting period. On April 25, 2023, the Compensation Committee approved the 2023 Executive Incentive Plan (the “2023 EIP”) for Messrs. Oviatt, Tidball, and Fisher. The 2023 EIP provides for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2023. 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 2023 Equity Incentive Plan (the “2023 Plan”). In addition to the 2023 EIP, the Board also approved as a long-term incentive plan the grants of a restricted stock unit awards to Messrs. Oviatt, Tidball, and Fisher pursuant to the 2023 Plan (the “2023 LTIP”). The 2023 Plan was adopted by the Board of Directors on April 25, 2023, subject to shareholder approval at the annual meeting of stockholders of the Company (the “Annual Meeting”). The 2023 Plan was approved by the shareholders of the Company at the Annual Meeting which was held on June 14, 2023. 2023 EIP Under the terms of the 2023 EIP, each participating executive officer has been assigned a target incentive compensation amount for fiscal 2023. The target incentive compensation amount for Mr. Oviatt is equal to 62% of his base salary as of December 31, 2023, the target incentive compensation amount for Mr. Tidball is equal to 62% of his base salary as of December 31, 2023, and the target incentive compensation for Mr. Fisher is equal to 37% of his base salary as of December 31, 2023. Under no circumstance can the participants receive more than two times the assigned target incentive compensation. Participants will be eligible to receive incentive compensation based upon reaching or exceeding performance goals established by the Compensation Committee for fiscal 2023. The performance goals in the 2023 EIP are based on the Company’s total revenue, EBITDA, and two non-financial factors including revenue source diversification and safety and environmental performance. Each of the revenue, EBITDA, and revenue diversification performance goals will be weighted 30% while the safety and environment goal will be weighted 10% in calculating incentive compensation amounts. The incentive compensation amounts earned under the 2023 EIP, if any, will be paid 50% in cash and 50% in shares of restricted stock under the 2023 Plan. In no event shall the total award exceed 200% of the target incentive compensation amount for each participant, or exceed any limitations otherwise set forth in the 2023 Plan. The actual incentive compensation amounts, if any, will be determined by the Compensation Committee upon the completion of fiscal 2023 and paid by March 15, 2024, subject to all applicable tax withholding. 2023 LTIP The 2023 LTIP consists of total awards of up to 287,076 restricted stock units (“Units”) to Mr. Oviatt, up to 287,076 Units to Mr. Tidball, and up to 50,868 Units to Mr. Fisher, pursuant to two separate restricted stock unit award agreements (collectively, the “Restricted Stock Unit Award Agreements”) to be entered between the Company and each participant. One such agreement covers 33% of each award recipient’s Units that are subject to time-based vesting, and the other such 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 2023 LTIP began on January 1, 2023 and terminates on December 31, 2025 (the “Performance Vesting Date”). The Units subject to time-based vesting, including 95,692 Units to Mr. Oviatt, 95,692 Units for Mr. Tidball, and 16,956 Units to Mr. Fisher, will vest in three equal and annual installments beginning December 31, 2023 and ending on December 31, 2025 if the award recipients’ employment continues with the Company through such dates. The performance-vesting Units, including up to 191,384 Units for Mr. Oviatt, 191,384 Units for Mr. Tidball, and 33,912 Units to Mr. Fisher, may vest over a three-year performance period beginning January 1, 2023 (the “Performance Period”) based upon the following Company performance metrics: Performance Metrics Weight Target Above Target Outstanding Total Shareholder Return (based on the Company’s closing price of its common stock at the end of the Performance Period relative to its closing price as of the last trading day in 2022) 1/3 94.2% 142.7% 191.3% Relative Total Shareholder Return (based on the Company’s ranked performance in closing stock price growth relative to a peer group of companies during the Performance Period) 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 15% 17.5% 20% One-third of such performance-vesting Units, consisting of 63,794 Units for Mr. Oviatt, 63,794 Units for Mr. Tidball, and 11,304 Units for Mr. Fisher, may 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: a. if the “Target” level for such performance metric is not achieved, none of the Units 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 Units 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 Units relating to such performance metric will vest; and d. if the “Outstanding” level for such performance metric is achieved, 100% of the Units relating to such performance metric will vest. The foregoing summary of the 2023 EIP and the Restricted Stock Unit Award Agreements relating to the 2023 LTIP is qualified in its entirety by the text of the 2023 EIP and each of the Restricted Stock Unit Award Agreements, which were filed as exhibits to the Quarterly Report on Form 10-Q for the quarter ending March 31, 2023. 2022 EIP and LTIP On April 6, 2022, the Compensation Committee of the Board (the "Compensation Committee") approved the 2022 Executive Incentive Plan (the “2022 EIP”) for Messrs. Oviatt, Tidball, and Fisher. The 2022 EIP provided for the potential award of incentive compensation to the participants based on the Company’s financial performance in fiscal 2022. The incentive compensation was payable in cash and stock, and the stock portion of the incentive compensation constituted an award under the Company's 2014 Equity Incentive Plan, as amended (the "2014 Plan"). 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. Each of these performance goals were weighted one third in calculating incentive compensation amounts. On March 6, 2023, the Compensation Committee approved the incentive compensation amounts based on achieving certain targets pursuant to the 2022 EIP. The incentive compensation amounts earned under the 2022 EIP were paid 50% in cash and 50% in shares of restricted stock under the 2014 Plan. The incentive compensation amounts resulted in the Compensation Committee approving a one-time bonus for Company executives that was settled by issuing a total of 341,961 shares of common stock, or 192,964 shares net of tax withholding. These shares were fully vested as of March 6, 2023. 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”). 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 equal and annual installments beginning December 31, 2022 and ending on December 31, 2024 if the award recipients’ employment continues with the Company through such dates. 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 (based on the Company’s closing price of its common stock at the end of the Performance Period relative to its closing price as of the last trading day in 2021) 1/3 89% 136% 183% Relative Total Shareholder Return (based on the Company’s ranked performance in closing stock price growth relative to a peer group of companies during the Performance Period) 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 the Company's Form 10-Q for the quarter ending March 31, 2022. 2022 RSUs 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. 2021 LTIP On May 28, 2021, the Board 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 RSUs to Mr. Oviatt, up to 204,543 RSUs to Mr. Tidball, up to 85,908 RSUs to Mr. Fugal, and up to 47,973 RSUs to Mr. Fisher, pursuant to two separate restricted stock unit award agreements (collectively, the “2021 LTIP Restricted Stock Unit Award Agreements”) between the Company and each participant. One agreement covers the 33% of each award recipient’s RSUs that are subject to time-based vesting, and the other 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 RSU. The vesting period of the 2021 LTIP began on January 1, 2021 and terminates on December 31, 2023 (the “2021 LTIP Performance Vesting Date”). The RSUs subject to time-based vesting, including 68,181 RSUs to Mr. Oviatt, 68,181 RSUs for Mr. Tidball, 28,636 RSUs to Mr. Fugal, and 15,991 RSUs to Mr. Fisher, vest in three The performance-vesting RSUs, including up to 136,362 RSUs for Mr. Oviatt, 136,362 RSUs for Mr. Tidball, 57,272 RSUs for Mr. Fugal, and 31,982 RSUs to Mr. Fisher, are eligible to vest over a three-year performance period beginning January 1, 2021 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 RSUs, consisting of 45,454 RSUs for Mr. Oviatt, 45,454 RSUs for Mr. Tidball, 19,091 RSUs for Mr. Fugal, and 10,661 RSUs for Mr. Fisher, are eligible to 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 2021 LTIP Performance Vesting Date shall be determined as follows: • if the “Target” level for such performance metric is not achieved, none of the RSUs relating to such performance metric will vest; • 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; • 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 • if the “Outstanding” level for such performance metric is achieved, 100% of the RSUs 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 will not receive incentive compensation under the 2021 LTIP, and his unvested RSUs have been forfeited. The foregoing summary of the 2021 LTIP is qualified in its entirety by the text of each of the 2021 LTIP Restricted Stock Unit Award Agreements, which the Company filed as exhibits to its quarterly report on Form 10-Q for the quarter ended June 30, 2021. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Performance Obligations Our performance obligations include providing product and servicing our product as well as other combustion related equipment. We recognize product revenue performance obligations in most cases when the product is delivered to the customer. Occasionally, if we are shipping the product on a customer’s account, we recognize revenue when the product has been shipped. At that point in time, the control of the product is transferred to the customer. When we perform service work, we apply the practical expedient that allows us to recognize service revenue when we have the right to invoice the customer for the work completed. We do not engage in transactions acting as an agent. The time needed to complete our performance obligations varies based on the size of the project; however, we typically satisfy our performance obligations within a few months of entering into the applicable sales contract or service contract. Our customers have the right to return certain unused and unopened products within 90 days for a restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. See Note 5 for the amount accrued for expected returns and warranty claims as of September 30, 2023. Contract Balances We have elected to use the practical expedient in ASC 340-40-25-4 (regarding recognition of the incremental costs of obtaining a contract) for costs related to contracts that are estimated to be completed within one year. All of our current sales contracts and service contracts are expected to be completed within one year, and as a result, we have not recognized a contract asset account. If we had chosen not to use this practical expedient, we would not expect a material difference in the contract balances. Occasionally, we collect milestone payments up front from customers on larger jobs. These payments are classified as deferred revenue until the deliverables have been met and revenue can be properly recognized in our financial statements. Each of the contracts related to these milestone payments is short-term in nature and we expect to recognize associated revenues within one year. As a result, we consider it appropriate to record deferred revenue for these transactions and do not have any other contract liability balances. Disaggregation of Revenue We consider all revenue recognized in the income statement to be revenue from contracts with customers. The table below shows revenue by category: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Electronics $ 5,425,343 $ 4,415,011 $ 17,041,819 $ 11,456,616 Manufactured 2,927,612 974,081 9,325,211 1,998,982 Re-Sell 5,617,110 6,506,789 14,834,431 16,179,388 Service 858,871 933,457 2,624,514 2,330,639 Total Revenue $ 14,828,936 $ 12,829,338 $ 43,825,975 $ 31,965,625 |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
BASIC AND DILUTED EARNINGS PER SHARE | BASIC AND DILUTED EARNINGS PER SHARE The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: For the Three Months Ended September 30, 2023 2022 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders $ 2,039,390 47,521,238 $ 0.04 $ 1,210,748 47,036,012 $ 0.03 Effect of Dilutive Securities Stock options & RSUs — 1,982,786 — 1,522,195 Diluted EPS Net income available to common stockholders + assumed conversions $ 2,039,390 49,504,024 $ 0.04 $ 1,210,748 48,558,207 $ 0.02 For the Nine Months Ended September 30, 2023 2022 Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders $ 7,486,169 47,364,445 $ 0.16 $ 2,122,738 47,201,611 $ 0.04 Effect of Dilutive Securities Stock options & RSUs — 1,949,859 — 1,559,735 Diluted EPS Net income available to common stockholders + assumed conversions $ 7,486,169 49,314,304 $ 0.15 $ 2,122,738 48,761,346 $ 0.04 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION The Company operates in the United States and Canada. Segment information for these geographic areas is as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, Revenues 2023 2022 2023 2022 Canada $ 2,252,176 $ 2,160,495 $ 6,438,528 $ 6,044,077 United States 12,576,760 10,668,843 37,387,447 25,921,548 Total Consolidated $ 14,828,936 $ 12,829,338 $ 43,825,975 $ 31,965,625 For the Three Months Ended September 30, For the Nine Months Ended September 30, Net Income (Loss) 2023 2022 2023 2022 Canada $ (618,848) $ (353,245) $ (1,575,305) $ (1,307,250) United States 2,658,238 1,563,993 9,061,474 3,429,988 Total Consolidated $ 2,039,390 $ 1,210,748 $ 7,486,169 $ 2,122,738 As of Long-Lived Assets September 30, 2023 December 31, 2022 Canada $ 4,949,859 $ 5,067,965 United States 5,836,857 5,476,238 Total Consolidated $ 10,786,716 $ 10,544,203 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Sep. 30, 2023 | |
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. |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements The Company has evaluated all recent accounting pronouncements and determined that the adoption of pronouncements applicable to the Company has not had or is not expected to have a material impact on the Company's financial position, results of operations or cash flows. |
Revenue | Performance Obligations Our performance obligations include providing product and servicing our product as well as other combustion related equipment. We recognize product revenue performance obligations in most cases when the product is delivered to the customer. Occasionally, if we are shipping the product on a customer’s account, we recognize revenue when the product has been shipped. At that point in time, the control of the product is transferred to the customer. When we perform service work, we apply the practical expedient that allows us to recognize service revenue when we have the right to invoice the customer for the work completed. We do not engage in transactions acting as an agent. The time needed to complete our performance obligations varies based on the size of the project; however, we typically satisfy our performance obligations within a few months of entering into the applicable sales contract or service contract. Our customers have the right to return certain unused and unopened products within 90 days for a restocking fee. We provide a warranty on some of our products ranging from 90 days to 2 years, depending on the product. See Note 5 for the amount accrued for expected returns and warranty claims as of September 30, 2023. Contract Balances We have elected to use the practical expedient in ASC 340-40-25-4 (regarding recognition of the incremental costs of obtaining a contract) for costs related to contracts that are estimated to be completed within one year. All of our current sales contracts and service contracts are expected to be completed within one year, and as a result, we have not recognized a contract asset account. If we had chosen not to use this practical expedient, we would not expect a material difference in the contract balances. Occasionally, we collect milestone payments up front from customers on larger jobs. These payments are classified as deferred revenue until the deliverables have been met and revenue can be properly recognized in our financial statements. Each of the contracts related to these milestone payments is short-term in nature and we expect to recognize associated revenues within one year. As a result, we consider it appropriate to record deferred revenue for these transactions and do not have any other contract liability balances. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at each balance sheet date: As of September 30, 2023 December 31, 2022 Raw materials $ 314,390 $ 166,927 Finished goods 13,661,652 10,452,930 Subtotal 13,976,042 10,619,857 Reserve for obsolescence (444,390) (325,877) Total $ 13,531,652 $ 10,293,980 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following at each balance sheet date: As of September 30, 2023 December 31, 2022 Prepaid inventory $ 1,868,310 $ 784,420 Accrued receivables 30,478 881,176 Prepaid insurance 446,434 240,785 Interest receivables 63,069 72,761 Tax credits 163 118,035 Other 335,718 217,462 Total $ 2,744,172 $ 2,314,639 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following at each balance sheet date: As of September 30, 2023 December 31, 2022 Employee-related payables $ 2,069,882 $ 2,404,848 Deferred revenue 593,014 420,827 Inventory-related payables 779,535 285,109 Tax-related payables 28,689 54,762 Warranty liabilities 106,174 74,103 Other 183,596 334,345 Total $ 3,760,890 $ 3,573,994 |
LEASES (Tables)
LEASES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Components of Financing Lease Cost | The following table shows the components of financing lease cost: For the Three Months Ended September 30, For the Nine Months Ended September 30, Financing Lease Cost 2023 2022 2023 2022 Amortization of right-of-use assets $ 14,332 $ 7,240 $ 28,811 $ 28,308 Interest on lease liabilities 4,438 1,078 6,226 2,331 Total financing lease cost $ 18,770 $ 8,318 $ 35,037 $ 30,639 |
Schedule of Supplemental Operating Lease Information | Supplemental operating lease information as of September 30, 2023 is as follows: Operating right of use assets $ 17,372 Current operating lease liabilities 17,372 Long-term operating lease liabilities — Weighted-average remaining lease term in years 0.8 Weighted-average discount rate 4.5 % |
Schedule of Maturities of Lease Liabilities | As of September 30, 2023, maturities of lease liabilities are as follows: Years ending December 31, Amount 2023 $ 21,383 2024 68,501 2025 39,542 2026 23,433 2027 6,957 Thereafter — Total future minimum lease payments $ 159,816 Less: Amount representing interest 20,000 Present value of future payments $ 139,816 Current portion $ 65,321 Long-term portion $ 74,495 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Performance Metrics | The performance-vesting Units, including up to 191,384 Units for Mr. Oviatt, 191,384 Units for Mr. Tidball, and 33,912 Units to Mr. Fisher, may vest over a three-year performance period beginning January 1, 2023 (the “Performance Period”) based upon the following Company performance metrics: Performance Metrics Weight Target Above Target Outstanding Total Shareholder Return (based on the Company’s closing price of its common stock at the end of the Performance Period relative to its closing price as of the last trading day in 2022) 1/3 94.2% 142.7% 191.3% Relative Total Shareholder Return (based on the Company’s ranked performance in closing stock price growth relative to a peer group of companies during the Performance Period) 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 15% 17.5% 20% 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 (based on the Company’s closing price of its common stock at the end of the Performance Period relative to its closing price as of the last trading day in 2021) 1/3 89% 136% 183% Relative Total Shareholder Return (based on the Company’s ranked performance in closing stock price growth relative to a peer group of companies during the Performance Period) 1/3 Third Quartile Second Quartile First Quartile EBITDA as a Percentage of Total Revenue 1/3 10% 15% 20% 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) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The table below shows revenue by category: For the Three Months Ended September 30, For the Nine Months Ended September 30, 2023 2022 2023 2022 Electronics $ 5,425,343 $ 4,415,011 $ 17,041,819 $ 11,456,616 Manufactured 2,927,612 974,081 9,325,211 1,998,982 Re-Sell 5,617,110 6,506,789 14,834,431 16,179,388 Service 858,871 933,457 2,624,514 2,330,639 Total Revenue $ 14,828,936 $ 12,829,338 $ 43,825,975 $ 31,965,625 |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: For the Three Months Ended September 30, 2023 2022 Income (Numerator) Weighted Average Shares (Denominator) Per-Share Income (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders $ 2,039,390 47,521,238 $ 0.04 $ 1,210,748 47,036,012 $ 0.03 Effect of Dilutive Securities Stock options & RSUs — 1,982,786 — 1,522,195 Diluted EPS Net income available to common stockholders + assumed conversions $ 2,039,390 49,504,024 $ 0.04 $ 1,210,748 48,558,207 $ 0.02 For the Nine Months Ended September 30, 2023 2022 Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Loss (Numerator) Weighted Average Shares (Denominator) Per-Share Basic EPS Net income available to common stockholders $ 7,486,169 47,364,445 $ 0.16 $ 2,122,738 47,201,611 $ 0.04 Effect of Dilutive Securities Stock options & RSUs — 1,949,859 — 1,559,735 Diluted EPS Net income available to common stockholders + assumed conversions $ 7,486,169 49,314,304 $ 0.15 $ 2,122,738 48,761,346 $ 0.04 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Segment Information for Geographic Areas | Segment information for these geographic areas is as follows: For the Three Months Ended September 30, For the Nine Months Ended September 30, Revenues 2023 2022 2023 2022 Canada $ 2,252,176 $ 2,160,495 $ 6,438,528 $ 6,044,077 United States 12,576,760 10,668,843 37,387,447 25,921,548 Total Consolidated $ 14,828,936 $ 12,829,338 $ 43,825,975 $ 31,965,625 For the Three Months Ended September 30, For the Nine Months Ended September 30, Net Income (Loss) 2023 2022 2023 2022 Canada $ (618,848) $ (353,245) $ (1,575,305) $ (1,307,250) United States 2,658,238 1,563,993 9,061,474 3,429,988 Total Consolidated $ 2,039,390 $ 1,210,748 $ 7,486,169 $ 2,122,738 As of Long-Lived Assets September 30, 2023 December 31, 2022 Canada $ 4,949,859 $ 5,067,965 United States 5,836,857 5,476,238 Total Consolidated $ 10,786,716 $ 10,544,203 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 314,390 | $ 166,927 |
Finished goods | 13,661,652 | 10,452,930 |
Subtotal | 13,976,042 | 10,619,857 |
Reserve for obsolescence | (444,390) | (325,877) |
Total | $ 13,531,652 | $ 10,293,980 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Prepaid inventory | $ 1,868,310 | $ 784,420 |
Accrued receivables | 30,478 | 881,176 |
Prepaid insurance | 446,434 | 240,785 |
Interest receivables | 63,069 | 72,761 |
Tax credits | 163 | 118,035 |
Other | 335,718 | 217,462 |
Total | $ 2,744,172 | $ 2,314,639 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Employee-related payables | $ 2,069,882 | $ 2,404,848 |
Deferred revenue | 593,014 | 420,827 |
Inventory-related payables | 779,535 | 285,109 |
Tax-related payables | 28,689 | 54,762 |
Warranty liabilities | 106,174 | 74,103 |
Other | 183,596 | 334,345 |
Total | $ 3,760,890 | $ 3,573,994 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) warehouse | Sep. 30, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Weighted average discount rate | 4.50% | 4.50% | ||
Weighted average remaining lease term | 2 years 9 months 18 days | 2 years 9 months 18 days | ||
Number of warehouses | warehouse | 1 | |||
Term of contract | 2 years | 2 years | ||
Short-term lease cost | $ | $ 15,081 | $ 13,356 | $ 52,285 | $ 35,263 |
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 36 months | 36 months | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Lease term | 60 months | 60 months |
LEASES - Schedule of Components
LEASES - Schedule of Components of Financing Lease Cost (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||||
Amortization of right-of-use assets | $ 14,332 | $ 7,240 | $ 28,811 | $ 28,308 |
Interest on lease liabilities | 4,438 | 1,078 | 6,226 | 2,331 |
Total financing lease cost | $ 18,770 | $ 8,318 | $ 35,037 | $ 30,639 |
LEASES - Schedule of Supplement
LEASES - Schedule of Supplemental Operating Lease Information (Details) | Sep. 30, 2023 USD ($) |
Leases [Abstract] | |
Operating right of use assets | $ 17,372 |
Current operating lease liabilities | 17,372 |
Long-term operating lease liabilities | $ 0 |
Weighted-average remaining lease term in years | 9 months 18 days |
Weighted-average discount rate | 4.50% |
LEASES - Schedule of Maturities
LEASES - Schedule of Maturities of Lease Liabilities (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Years ending December 31, | ||
2023 | $ 21,383 | |
2024 | 68,501 | |
2025 | 39,542 | |
2026 | 23,433 | |
2027 | 6,957 | |
Thereafter | 0 | |
Total future minimum lease payments | 159,816 | |
Less: Amount representing interest | 20,000 | |
Present value of future payments | 139,816 | |
Current portion | 65,321 | $ 53,646 |
Long-term portion | $ 74,495 | $ 67,883 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) | 9 Months Ended | ||||||||||||
Jun. 29, 2024 | Dec. 31, 2023 | Jun. 29, 2023 USD ($) shares | Jun. 15, 2023 | Apr. 25, 2023 shares | Mar. 06, 2023 shares | Jun. 15, 2022 USD ($) shares | Apr. 06, 2022 shares | May 28, 2021 bay agreement shares | Sep. 30, 2023 USD ($) shares | May 09, 2023 USD ($) | Dec. 31, 2022 USD ($) shares | Mar. 06, 2022 agreement | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Treasury stock (in shares) | 5,277,846 | 5,038,130 | |||||||||||
Treasury stock, at cost | $ | $ 7,675,637 | $ 7,336,323 | |||||||||||
Authorized shares, amount | $ | $ 2,000,000 | ||||||||||||
Compensation expense | $ | $ 804,632 | ||||||||||||
Compensation expense recognition period | 1 year 6 months | ||||||||||||
2023 EIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Incentive compensation weight (in percent) | 0.30 | ||||||||||||
Safety and environment percentage weight | 10% | ||||||||||||
Percentage of bonus paid in cash | 50% | ||||||||||||
Percentage of bonus paid in stock | 50% | ||||||||||||
Target payout percentage | 200% | ||||||||||||
2023 LTIP | Below Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 0% | ||||||||||||
2023 LTIP | Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 50% | ||||||||||||
2023 LTIP | Above Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 75% | ||||||||||||
2023 LTIP | Outstanding | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 100% | ||||||||||||
2022 EIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of bonus paid in cash | 50% | ||||||||||||
Percentage of bonus paid in stock | 50% | ||||||||||||
Common stock issued (in shares) | 341,961 | ||||||||||||
Common stock issued, after tax (in shares) | 192,964 | ||||||||||||
2022 LTIP | Below Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 0% | ||||||||||||
2022 LTIP | Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 50% | ||||||||||||
2022 LTIP | Above Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 75% | ||||||||||||
2022 LTIP | Outstanding | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 100% | ||||||||||||
2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of performance metrics | bay | 3 | ||||||||||||
2021 LTIP | Below Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 0% | ||||||||||||
2021 LTIP | Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 50% | ||||||||||||
2021 LTIP | Above Target | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 75% | ||||||||||||
2021 LTIP | Outstanding | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 100% | ||||||||||||
Tranche One | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 33% | ||||||||||||
Tranche One | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 33% | ||||||||||||
Tranche One | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 33% | ||||||||||||
Tranche Two | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 67% | ||||||||||||
Tranche Two | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 67% | ||||||||||||
Tranche Two | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of award covered by metric | 67% | ||||||||||||
Restricted Stock Units | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Units outstanding (in shares) | 785,995 | ||||||||||||
Compensation expense | $ | $ 243,000 | ||||||||||||
Number of shares granted (shares) | 195,966 | 178,623 | |||||||||||
Award vesting percentage | 50% | 50% | 50% | ||||||||||
Unrecognized compensation cost | $ | $ 234,000 | ||||||||||||
Restricted Stock Units | Forecast | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting 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 | ||||||||||||
Performance Shares | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Units outstanding (in shares) | 1,057,044 | ||||||||||||
Performance Shares | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 3 years | ||||||||||||
Performance Shares | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 3 years | ||||||||||||
Performance Shares | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Award vesting period | 3 years | ||||||||||||
Employee Stock Option | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Stock options outstanding (in shares) | 228,350 | ||||||||||||
Chief Financial Officer | 2023 EIP | Forecast | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of salary | 0.62 | ||||||||||||
Chief Financial Officer | Restricted Stock Units | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 287,076 | ||||||||||||
Chief Financial Officer | Restricted Stock Units | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 230,232 | ||||||||||||
Chief Financial Officer | Restricted Stock Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 204,543 | ||||||||||||
Chief Financial Officer | Performance Shares | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 191,384 | ||||||||||||
Chief Financial Officer | Performance Shares | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 153,488 | ||||||||||||
Chief Financial Officer | Performance Shares | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 136,362 | ||||||||||||
Chief Financial Officer | Performance Shares | Tranche One | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 63,794 | ||||||||||||
Chief Financial Officer | Performance Shares | Tranche One | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 51,163 | ||||||||||||
Chief Financial Officer | Performance Shares | Tranche One | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 45,454 | ||||||||||||
Chief Financial Officer | Time-based Units | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 95,692 | ||||||||||||
Chief Financial Officer | Time-based Units | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 76,744 | ||||||||||||
Chief Financial Officer | Time-based Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 68,181 | ||||||||||||
Chief Business Development Officer | 2023 EIP | Forecast | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of salary | 0.62 | ||||||||||||
Chief Business Development Officer | Restricted Stock Units | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 287,076 | ||||||||||||
Chief Business Development Officer | Restricted Stock Units | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 230,232 | ||||||||||||
Chief Business Development Officer | Restricted Stock Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 204,543 | ||||||||||||
Number of agreements | agreement | 2 | ||||||||||||
Chief Business Development Officer | Performance Shares | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 191,384 | ||||||||||||
Chief Business Development Officer | Performance Shares | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 153,488 | ||||||||||||
Chief Business Development Officer | Performance Shares | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 136,362 | ||||||||||||
Chief Business Development Officer | Performance Shares | Tranche One | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 63,794 | ||||||||||||
Chief Business Development Officer | Performance Shares | Tranche One | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 51,163 | ||||||||||||
Chief Business Development Officer | Performance Shares | Tranche One | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 45,454 | ||||||||||||
Chief Business Development Officer | Time-based Units | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 95,692 | ||||||||||||
Chief Business Development Officer | Time-based Units | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 76,744 | ||||||||||||
Chief Business Development Officer | Time-based Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 68,181 | ||||||||||||
Vice President Of Production Development | 2023 EIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Target payout percentage | 200% | ||||||||||||
Vice President Of Production Development | 2023 EIP | Forecast | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Percentage of salary | 0.37 | ||||||||||||
Vice President Of Production Development | Restricted Stock Units | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 50,868 | ||||||||||||
Vice President Of Production Development | Restricted Stock Units | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 43,023 | ||||||||||||
Vice President Of Production Development | Restricted Stock Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 47,973 | ||||||||||||
Vice President Of Production Development | Performance Shares | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 33,912 | ||||||||||||
Vice President Of Production Development | Performance Shares | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 28,682 | ||||||||||||
Vice President Of Production Development | Performance Shares | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 31,982 | ||||||||||||
Vice President Of Production Development | Performance Shares | Tranche One | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 11,304 | ||||||||||||
Vice President Of Production Development | Performance Shares | Tranche One | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 9,561 | ||||||||||||
Vice President Of Production Development | Performance Shares | Tranche One | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 10,661 | ||||||||||||
Vice President Of Production Development | Time-based Units | 2023 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 16,956 | ||||||||||||
Vice President Of Production Development | Time-based Units | 2022 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 14,341 | ||||||||||||
Vice President Of Production Development | Time-based Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 15,991 | ||||||||||||
Annual installment period | 3 years | ||||||||||||
Vice President of Operations | Restricted Stock Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 85,908 | ||||||||||||
Vice President of Operations | Performance Shares | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 57,272 | ||||||||||||
Vice President of Operations | Performance Shares | Tranche One | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 19,091 | ||||||||||||
Vice President of Operations | Time-based Units | 2021 LTIP | |||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||||||
Number of shares granted (shares) | 28,636 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Performance Metrics (Details) - shares | Apr. 25, 2023 | Apr. 06, 2022 | May 28, 2021 | Mar. 06, 2022 |
Performance Shares | 2023 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Performance Shares | 2022 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Performance Shares | 2021 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting period | 3 years | |||
Chief Financial Officer | Performance Shares | 2023 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 191,384 | |||
Chief Financial Officer | Performance Shares | 2022 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 153,488 | |||
Chief Financial Officer | Performance Shares | 2021 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 136,362 | |||
Chief Business Development Officer | Performance Shares | 2023 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 191,384 | |||
Chief Business Development Officer | Performance Shares | 2022 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 153,488 | |||
Chief Business Development Officer | Performance Shares | 2021 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 136,362 | |||
Vice President Of Production Development | Performance Shares | 2023 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 33,912 | |||
Vice President Of Production Development | Performance Shares | 2022 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 28,682 | |||
Vice President Of Production Development | Performance Shares | 2021 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 31,982 | |||
Vice President of Operations | Performance Shares | 2021 LTIP | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted (shares) | 57,272 | |||
Weight | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance metric percentage, relative total shareholder return | 33.33% | 33.33% | 33.33% | |
Performance metric percentage, total shareholder return | 33.33% | 33.33% | 33.33% | |
Performance metric percentage, EBITDA | 33.33% | 33.33% | 33.33% | |
Target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance metric percentage, relative total shareholder return | 75% | 75% | 75% | |
Performance metric percentage, total shareholder return | 94.20% | 135% | 89% | |
Performance metric percentage, EBITDA | 15% | 10% | 10% | |
Above Target | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance metric percentage, relative total shareholder return | 50% | 50% | 50% | |
Performance metric percentage, total shareholder return | 142.70% | 194% | 136% | |
Performance metric percentage, EBITDA | 17.50% | 15% | 15% | |
Outstanding | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Performance metric percentage, relative total shareholder return | 25% | 25% | 25% | |
Performance metric percentage, total shareholder return | 191.30% | 253% | 183% | |
Performance metric percentage, EBITDA | 20% | 20% | 20% |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Disaggregation of Revenue [Line Items] | |
Return period | 90 days |
Minimum | |
Disaggregation of Revenue [Line Items] | |
Product warranty term | 90 days |
Maximum | |
Disaggregation of Revenue [Line Items] | |
Product warranty term | 2 years |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 14,828,936 | $ 12,829,338 | $ 43,825,975 | $ 31,965,625 |
Electronics | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,425,343 | 4,415,011 | 17,041,819 | 11,456,616 |
Manufactured | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 2,927,612 | 974,081 | 9,325,211 | 1,998,982 |
Re-Sell | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | 5,617,110 | 6,506,789 | 14,834,431 | 16,179,388 |
Service | ||||
Disaggregation of Revenue [Line Items] | ||||
Total Revenues | $ 858,871 | $ 933,457 | $ 2,624,514 | $ 2,330,639 |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Income (Loss) (Numerator) | ||||||||
Net income available to common stockholders | $ 2,039,390 | $ 2,857,157 | $ 2,589,621 | $ 1,210,748 | $ 284,829 | $ 627,161 | $ 7,486,169 | $ 2,122,738 |
Stock options & RSUs | 0 | 0 | 0 | 0 | ||||
Net income available to common stockholders + assumed conversions | $ 2,039,390 | $ 1,210,748 | $ 7,486,169 | $ 2,122,738 | ||||
Weighted Average Shares (Denominator) | ||||||||
Weighted average basic shares outstanding (in shares) | 47,521,238 | 47,036,012 | 47,364,445 | 47,201,611 | ||||
Effect of dilutive securities (in shares) | 1,982,786 | 1,522,195 | 1,949,859 | 1,559,735 | ||||
Weighted average diluted shares outstanding (in shares) | 49,504,024 | 48,558,207 | 49,314,304 | 48,761,346 | ||||
Per-Share Amount | ||||||||
Basic income (loss) per share (in dollars per share) | $ 0.04 | $ 0.03 | $ 0.16 | $ 0.04 | ||||
Diluted income (loss) per share (in dollars per share) | $ 0.04 | $ 0.02 | $ 0.15 | $ 0.04 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||||||
Revenues | $ 14,828,936 | $ 12,829,338 | $ 43,825,975 | $ 31,965,625 | |||||
Net Income (Loss) | 2,039,390 | $ 2,857,157 | $ 2,589,621 | 1,210,748 | $ 284,829 | $ 627,161 | 7,486,169 | 2,122,738 | |
Long-Lived Assets | 10,786,716 | 10,786,716 | $ 10,544,203 | ||||||
Canada | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 2,252,176 | 2,160,495 | 6,438,528 | 6,044,077 | |||||
Net Income (Loss) | (618,848) | (353,245) | (1,575,305) | (1,307,250) | |||||
Long-Lived Assets | 4,949,859 | 4,949,859 | 5,067,965 | ||||||
United States | |||||||||
Segment Reporting Information [Line Items] | |||||||||
Revenues | 12,576,760 | 10,668,843 | 37,387,447 | 25,921,548 | |||||
Net Income (Loss) | 2,658,238 | $ 1,563,993 | 9,061,474 | $ 3,429,988 | |||||
Long-Lived Assets | $ 5,836,857 | $ 5,836,857 | $ 5,476,238 |