Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Mar. 12, 2024 | Jun. 30, 2023 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
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 | ||
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 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 | ||
Document Financial Statement Error Correction Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 44,177,313 | ||
Title of 12(b) Security | Common Stock, $0.001 par value | ||
Trading Symbol | PFIE | ||
Security Exchange Name | NASDAQ | ||
Entity Common Stock, Shares Outstanding | 47,094,226 | ||
Documents Incorporated by Reference | Documents Incorporated by Reference: Portions of the Profire Energy, Inc. Definitive Proxy Statement for the 2024 Annual Meeting of Stockholders are incorporated by reference into Part III of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001289636 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | Sadler, Gibb & Associates, LLC, |
Auditor Location | Salt Lake City, Utah |
Auditor Firm ID | 3627 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS | ||
Cash and cash equivalents | $ 10,767,519 | $ 7,384,578 |
Short-term investments (note 2) | 2,799,539 | 1,154,284 |
Accounts receivable, net | 14,013,740 | 10,886,145 |
Inventories, net (note 3) | 14,059,656 | 10,293,980 |
Prepaid expenses and other current assets (note 4) | 2,832,262 | 2,314,639 |
Total Current Assets | 44,472,716 | 32,033,626 |
LONG-TERM ASSETS | ||
Net deferred tax asset | 496,785 | 0 |
Long-term investments (note 2) | 6,425,582 | 7,503,419 |
Lease right-of-use asset (note 8) | 432,907 | 120,239 |
Property and equipment, net (note 5) | 10,782,372 | 10,423,964 |
Intangible assets, net (note 6) | 1,104,102 | 1,268,907 |
Goodwill (note 6) | 2,579,381 | 2,579,381 |
Total Long-Term Assets | 21,821,129 | 21,895,910 |
TOTAL ASSETS | 66,293,845 | 53,929,536 |
CURRENT LIABILITIES | ||
Accounts payable | 2,699,556 | 2,955,506 |
Accrued liabilities (note 7) | 4,541,820 | 3,573,994 |
Current lease liability (note 8) | 130,184 | 53,646 |
Income taxes payable | 1,723,910 | 205,169 |
Total Current Liabilities | 9,095,470 | 6,788,315 |
LONG-TERM LIABILITIES | ||
Net deferred income tax liability | 52,621 | 488,858 |
Long-term lease liability (note 8) | 307,528 | 67,883 |
TOTAL LIABILITIES | 9,455,619 | 7,345,056 |
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: 53,047,231 issued and 46,803,868 outstanding at December 31, 2023, and 52,143,901 issued and 47,105,771 outstanding at December 31, 2022 | 53,048 | 52,144 |
Treasury stock, at cost | (9,324,272) | (7,336,323) |
Additional paid-in capital | 32,751,749 | 31,737,843 |
Accumulated other comprehensive loss | (2,844,702) | (3,294,873) |
Retained earnings | 36,202,403 | 25,425,689 |
TOTAL STOCKHOLDERS' EQUITY | 56,838,226 | 46,584,480 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 66,293,845 | $ 53,929,536 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 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) | 53,047,231 | 52,143,901 |
Common stock, shares outstanding (in shares) | 46,803,868 | 47,105,771 |
Consolidated Statements of Oper
Consolidated Statements of Operations and Comprehensive Income - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
REVENUES | ||
Total Revenues | $ 58,208,060 | $ 45,936,643 |
COST OF SALES | ||
Total Cost of Goods Sold | 27,676,042 | 24,285,253 |
GROSS PROFIT | 30,532,018 | 21,651,390 |
OPERATING EXPENSES | ||
General and administrative | 17,184,917 | 14,776,905 |
Research and development | 917,123 | 1,051,858 |
Depreciation and amortization | 575,878 | 628,019 |
Total Operating Expenses | 18,677,918 | 16,456,782 |
INCOME FROM OPERATIONS | 11,854,100 | 5,194,608 |
OTHER INCOME (EXPENSE) | ||
Gain on sale of property and equipment | 268,817 | 318,075 |
Other income (expense) | (57,088) | 14,383 |
Interest income | 390,031 | 177,125 |
Interest expense | (9,449) | (18,009) |
Total Other Income | 592,311 | 491,574 |
INCOME BEFORE INCOME TAXES | 12,446,411 | 5,686,182 |
INCOME TAX EXPENSE (note 12) | (1,669,697) | (1,738,422) |
NET INCOME | 10,776,714 | 3,947,760 |
OTHER COMPREHENSIVE INCOME (LOSS) | ||
Foreign currency translation gain (loss) | 275,810 | (670,167) |
Unrealized gains (losses) on investments | 174,361 | (524,239) |
Total Other Comprehensive Income (Loss) | 450,171 | (1,194,406) |
COMPREHENSIVE INCOME | $ 11,226,885 | $ 2,753,354 |
BASIC EARNINGS PER SHARE (in dollars per share) | $ 0.23 | $ 0.08 |
FULLY DILUTED EARNINGS PER SHARE (in dollars per share) | $ 0.22 | $ 0.08 |
BASIC WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 47,355,978 | 47,161,101 |
FULLY DILUTED WEIGHTED AVG NUMBER OF SHARES OUTSTANDING (in shares) | 49,127,558 | 48,447,342 |
Cost of goods sold-product | ||
REVENUES | ||
Total Revenues | $ 54,284,295 | $ 42,318,263 |
COST OF SALES | ||
Total Cost of Goods Sold | 24,528,345 | 21,425,176 |
Cost of goods sold-services | ||
REVENUES | ||
Total Revenues | 3,923,765 | 3,618,380 |
COST OF SALES | ||
Total Cost of Goods Sold | $ 3,147,697 | $ 2,860,077 |
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 |
Beginning balance (in shares) at Dec. 31, 2021 | 47,643,233 | |||||
Beginning balance 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 | |||||
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 | $ 3,947,760 | 3,947,760 | ||||
Ending balance (in shares) at Dec. 31, 2022 | 47,105,771 | 47,105,771 | ||||
Ending balance 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 | ||||||
Stock based compensation | $ 1,043,740 | 1,043,740 | ||||
Stock issued in exercise of stock options (in shares) | 533,500 | 377,854 | ||||
Stock issued in exercise of stock options | $ 250,031 | $ 378 | 249,653 | |||
Stock issued in settlement of RSUs and accrued bonuses (in shares) | 525,476 | |||||
Stock issued in settlement of RSUs and accrued bonuses | 378,526 | $ 526 | 378,000 | |||
Tax withholdings paid related to stock based compensation | $ (657,487) | (657,487) | ||||
Treasury stock repurchased (in shares) | (1,205,233) | (1,205,233) | ||||
Treasury stock repurchased | $ (1,987,949) | (1,987,949) | ||||
Foreign currency translation | 275,810 | 275,810 | ||||
Unrealized gains (losses) on investments | 174,361 | 174,361 | ||||
Net income | $ 10,776,714 | 10,776,714 | ||||
Ending balance (in shares) at Dec. 31, 2023 | 46,803,868 | 46,803,868 | ||||
Ending balance at Dec. 31, 2023 | $ 56,838,226 | $ 53,048 | $ 32,751,749 | $ (2,844,702) | $ (9,324,272) | $ 36,202,403 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
OPERATING ACTIVITIES | ||
Net income | $ 10,776,714 | $ 3,947,760 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization expense | 1,108,962 | 1,101,044 |
Gain on sale of property and equipment | (268,817) | (318,075) |
Bad debt expense | 488,420 | 77,704 |
Stock awards issued for services | 1,043,740 | 814,769 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (3,128,051) | (4,745,871) |
Income taxes receivable/payable | 1,515,843 | 765,650 |
Inventories | (3,712,212) | (3,240,049) |
Prepaid expenses and other current assets | (480,308) | (1,337,076) |
Deferred tax asset/liability | (933,969) | 512,274 |
Accounts payable and accrued liabilities | 653,728 | 2,937,947 |
Net Cash Provided by Operating Activities | 7,064,050 | 516,077 |
INVESTING ACTIVITIES | ||
Proceeds from sale of property and equipment | 354,840 | 520,068 |
Sale (purchase) of investments | (393,057) | 91,601 |
Purchase of property and equipment | (1,228,275) | (601,012) |
Net Cash Provided by (Used in) Investing Activities | (1,266,492) | 10,657 |
FINANCING ACTIVITIES | ||
Value of equity awards surrendered by employees for tax liability | (605,996) | (145,930) |
Cash received in exercise of stock options | 177,281 | 33,863 |
Purchase of treasury stock | (1,987,949) | (1,228,730) |
Principal paid towards lease liability | (37,855) | (34,214) |
Net Cash Used in Financing Activities | (2,454,519) | (1,375,011) |
Effect of exchange rate changes on cash | 39,902 | 44,585 |
NET INCREASE (DECREASE) IN CASH | 3,382,941 | (803,692) |
CASH AT BEGINNING OF PERIOD | 7,384,578 | 8,188,270 |
CASH AT END OF PERIOD | 10,767,519 | 7,384,578 |
CASH PAID FOR: | ||
Interest | 9,450 | 17,726 |
Income taxes | 1,155,682 | 847,712 |
NON-CASH FINANCING AND INVESTING ACTIVITIES: | ||
Common stock issued in settlement of accrued bonuses | $ 378,526 | $ 212,788 |
ORGANIZATION AND SUMMARY OF SIG
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 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 Profire Energy, Inc. and its subsidiaries (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. Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. Certain amounts in the accompanying December 31, 2022 consolidated statements of operations and comprehensive income and footnotes have been reclassified to conform to the December 31, 2023 presentation. Recent Accounting Pronouncements Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The update adds a new impairment model, known as the current expected credit loss ("CECL") model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses at the initial recognition of an in-scope financial instrument. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. Since the Company is a smaller reporting company, as defined by the U.S. Securities and Exchange Commission (the "SEC"), the new guidance became effective on January 1, 2023. The Company adopted ASU 2016-13 effective January 1, 2023, but the adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements. See NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable. Accounting Standards Update No. 2023-07 —Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The update is intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The amendments require disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM) as well as other segment items, extend certain annual disclosures to interim periods, clarify the applicability to single reportable segment entities, permit more than one measure of profit or loss to be reported under certain conditions, and require disclosure of the title and position of the CODM. We expect to adopt the new disclosures as required for the year ended December 31, 2024. We are currently evaluating the impact on the related disclosures. Accounting Standards Update No. 2023-09 —Income Taxes (Topic 740): Improvements to Income Tax Disclosures The update requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company’s annual reporting periods beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis, with a retrospective option. We are currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures. 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. 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 0.7547 and 0.7370 were used to convert the Company's December 31, 2023 and December 31, 2022 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7411 and 0.7679 for the years ended December 31, 2023 and December 31, 2022, 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 "Short-term investments." Certificates of deposit with remaining maturities greater than one year are classified as "Long-term investments." 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 $8,376,661 and $5,328,825 as of December 31, 2023 and December 31, 2022, 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 $365,394 and $220,745 as of December 31, 2023 and December 31, 2022, respectively. Uncollectible accounts are written off after all collection efforts have been exhausted and Credit Committee approval is granted. Bad debt expense recognized was $488,420 and $77,704 for the years ended December 31, 2023 and December 31, 2022, 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 when indicators of impairment exist 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 $163,669 and $59,792 during the years ended December 31, 2023 and December 31, 2022, 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 grant date fair values and is recognized over the requisite service period, which is generally the service period. 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 16% and 11% of total sales during the years ended December 31, 2023 and December 31, 2022, 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. 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 $224,297 and $193,876 for the years ended December 31, 2023 and December 31, 2022, 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, 2023 | |
Investments, Debt and Equity Securities [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, 2023 and 2022: December 31, 2023 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,069,668 $ — $ 3,069,668 $ 3,069,668 $ — $ — Other Funds 1,889,552 (202,991) 1,686,561 — — 1,686,561 4,959,220 (202,991) 4,756,229 3,069,668 — 1,686,561 Level 2 Corporate Bonds 1,375,209 (62,885) 1,312,324 — 247,438 1,064,886 Municipal Bonds 6,373,922 (147,686) 6,226,236 — 2,552,101 3,674,135 7,749,131 (210,571) 7,538,560 — 2,799,539 4,739,021 Total $ 12,708,351 $ (413,562) $ 12,294,789 $ 3,069,668 $ 2,799,539 $ 6,425,582 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 Pre-tax unrealized losses on investments incurred during the periods are presented below: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Unrealized Holding Gains (Losses) $ 225,226 $ (692,759) The maturities for bonds held by the Company as of December 31, 2023 are presented in the table below: Maturity Fair Value Less Than One Year $ 2,799,539 1-2 years 2,677,224 2-5 years 2,061,797 5-10 years — Over 10 years — $ 7,538,560 |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories consisted of the following at each balance sheet date: As of December 31, 2023 December 31, 2022 Raw materials $ 338,539 $ 166,927 Finished goods 14,171,616 10,452,930 Work in process — — Subtotal 14,510,155 10,619,857 Reserve for obsolescence (450,499) (325,877) Total $ 14,059,656 $ 10,293,980 |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 12 Months Ended |
Dec. 31, 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 December 31, 2023 December 31, 2022 Prepaid inventory 1,944,942 784,420 Accrued Receivables 119,035 881,176 Prepaid insurance 351,273 240,785 Interest receivables 81,868 72,761 Tax credits 740 118,035 Other 334,404 217,462 $ 2,832,262 $ 2,314,639 |
PROPERTY AND EQUIPMENT
PROPERTY AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Est. Useful Life Furniture and fixtures $ 734,736 $ 623,086 7 years Computers 299,706 223,626 3 years Machinery and equipment 549,584 541,036 7 years Leased Equipment — 22,462 5 years Vehicles 2,567,005 2,038,581 5 years Land and buildings 11,375,748 11,240,356 30 years Total property and equipment 15,526,779 14,689,147 Accumulated depreciation $ (4,744,407) $ (4,265,183) Net property and equipment 10,782,372 10,423,964 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, 2023 For the Year Ended December 31, 2022 Cost of goods sold - product depreciation $ 374,773 $ 328,482 Cost of goods sold - service depreciation 158,311 144,543 Operating expense depreciation 369,703 388,618 Amortization expense 206,175 239,401 Total depreciation & amortization expense $ 1,108,962 $ 1,101,044 |
INTANGIBLE ASSETS
INTANGIBLE ASSETS | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Definite-lived intangible assets $ 1,903,073 $ 1,903,073 Less: Accumulated amortization (798,971) (634,166) Definite-lived intangible assets, net $ 1,104,102 $ 1,268,907 Net definite-lived intangible assets decreased by amortization expense of $164,805 and $204,742 during the years ended December 31, 2023 and December 31, 2022, respectively. 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 2024 $ 125,591 2025 $ 80,899 2026 $ 80,899 2027 $ 80,899 2028 $ 80,899 Greater than 5 years $ 654,915 Indefinite-lived intangible assets As of December 31, 2023 December 31, 2022 Goodwill $ 2,579,381 $ 2,579,381 Goodwill is reviewed annually for impairment as of December 31 each year, or whenever there are significant indicators of potential impairment. In 2023, the Company determined that the fair value of the reporting unit related to goodwill was not less than its carrying value. As such, the Company did not have any goodwill impairment for the year ended December 31, 2023. |
ACCRUED LIABILITIES
ACCRUED LIABILITIES | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
ACCRUED LIABILITIES | ACCRUED LIABILITIES Accrued liabilities consisted of the following at each balance sheet date: As of December 31, 2023 December 31, 2022 Employee-related payables $ 2,910,801 $ 2,404,848 Deferred Revenue 780,428 420,827 Inventory-related payables $ 400,701 $ 285,109 Other tax-related payables 119,188 54,762 Warranty liabilities $ 108,930 $ 74,103 Other 221,772 334,345 Total $ 4,541,820 $ 3,573,994 |
LEASES
LEASES | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
LEASES | LEASES As of Components of lease right-of-use assets and liabilities December 31, 2023 December 31, 2022 Financing lease right-of-use assets $ 106,402 $ 83,936 Operating lease right-of-use assets 326,505 36,303 Total Lease right-of-use assets $ 432,907 $ 120,239 Financing current lease liability $ 47,492 $ 28,262 Operating current lease liability 82,692 25,385 Total Current lease liability $ 130,184 $ 53,646 Financing long-term lease liability $ 63,393 $ 56,965 Operating long-term lease liability 244,135 10,918 Total Long-term lease liability $ 307,528 $ 67,883 The Company leases 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 2023, 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 2.6 years. The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Amortization of right-of-use assets $ 41,370 $ 34,658 Interest on lease liabilities 9,450 3,147 Total financing lease cost $ 50,820 $ 37,805 The Company leases two warehouse spaces, one with a two-year lease, and another with a four-year lease, both of which are recorded as operating leases. The weighted average discount rate applied to our financing leases is 4.5% and the weighted average remaining lease term is 3.9 years. 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, 2023 and December 31, 2022, we recognized $75,603 and $79,378, respectively, of lease costs associated with office space leases. The following table reconciles future minimum lease payments to the discounted lease liability: Years ending December 31 2024 $ 152,711 2025 126,278 2026 112,768 2027 91,097 2028 — Thereafter — Total future minimum lease payments $ 482,854 Less: Amount representing interest 45,141 Present value of future payments $ 437,712 Current portion $ 130,184 Long-term portion $ 307,528 |
LEASES | LEASES As of Components of lease right-of-use assets and liabilities December 31, 2023 December 31, 2022 Financing lease right-of-use assets $ 106,402 $ 83,936 Operating lease right-of-use assets 326,505 36,303 Total Lease right-of-use assets $ 432,907 $ 120,239 Financing current lease liability $ 47,492 $ 28,262 Operating current lease liability 82,692 25,385 Total Current lease liability $ 130,184 $ 53,646 Financing long-term lease liability $ 63,393 $ 56,965 Operating long-term lease liability 244,135 10,918 Total Long-term lease liability $ 307,528 $ 67,883 The Company leases 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 2023, 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 2.6 years. The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Amortization of right-of-use assets $ 41,370 $ 34,658 Interest on lease liabilities 9,450 3,147 Total financing lease cost $ 50,820 $ 37,805 The Company leases two warehouse spaces, one with a two-year lease, and another with a four-year lease, both of which are recorded as operating leases. The weighted average discount rate applied to our financing leases is 4.5% and the weighted average remaining lease term is 3.9 years. 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, 2023 and December 31, 2022, we recognized $75,603 and $79,378, respectively, of lease costs associated with office space leases. The following table reconciles future minimum lease payments to the discounted lease liability: Years ending December 31 2024 $ 152,711 2025 126,278 2026 112,768 2027 91,097 2028 — Thereafter — Total future minimum lease payments $ 482,854 Less: Amount representing interest 45,141 Present value of future payments $ 437,712 Current portion $ 130,184 Long-term portion $ 307,528 |
STOCKHOLDERS' EQUITY
STOCKHOLDERS' EQUITY | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023, and December 31, 2022, the Company held 6,243,363 and 5,038,130 shares in treasury at a total cost of $9,324,272 and $7,336,323, respectively. Pursuant to the board of directors' approval of share repurchase programs allowing the Company to repurchase up to $2,000,000 worth of the Company’s common stock from time to time both through April 30, 2024 and September 30, 2022, the Company entered into 10b5-1 Plans in May 2023 and September 2021, respectively. 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 June 2023 and October 2021, respectively. The Company was not obligated to make any purchases, and the program could have been suspended or discontinued at any time. During 2023 and 2022, the Company repurchased 1,205,233 and 961,221 shares of common stock, respectively. All such repurchases during 2023 and 2022 were made at market prices. As of the end of December 2023, the Company had spent the full allotment under both programs. On June 29, 2023, and June 15, 2022, pursuant to the annual renewal of director compensation, the Board approved grants of 195,966 and 178,623 RSUs, respectively, to the Company's independent directors. Under both grants, 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 subsequent annual meeting of stockholders, whichever is earlier. The awards will result in total compensation expense of approximately $243,000 and $234,000, respectively, to be recognized over the vesting period. On April 25, 2023, the Compensation Committee of the Board (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 was assigned a target incentive compensation amount for fiscal 2023. The target incentive compensation amount for Mr. Oviatt was equal to 62% of his base salary as of December 31, 2023, the target incentive compensation amount for Mr. Tidball was equal to 62% of his base salary as of December 31, 2023, and the target incentive compensation for Mr. Fisher was 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 were 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 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 were determined by the Compensation Committee on March 6, 2024 and will be 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 “2023 LTIP Restricted Stock Unit Award Agreements”) 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 based upon the following Company performance metrics: Performance Metrics Weight Target Above Target Outstanding Total Shareholder Return 1/3 94.2% 142.7% 191.3% Relative Total Shareholder Return 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 2023 LTIP Restricted Stock Unit Award Agreements is qualified in its entirety by the text of the 2023 EIP and each of the 2023 LTIP 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 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 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 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 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 “2021 LTIP 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 terminated on December 31, 2023 (the “2021 LTIP 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, vested 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, were 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 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, were eligible to vest for each of the three performance metrics identified in the table above. The number of Units that may have vested 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 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 eligible for any awards that were not vested prior to October 31, 2021 under the 2021 LTIP. The foregoing summary of the 2021 LTIP and the 2021 LTIP Restricted Stock Unit Award Agreements 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. Stock Options No stock options were issued during the years ended December 31, 2023 or December 31, 2022. |
REVENUE
REVENUE | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023. 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, 2023 Year Ended December 31, 2022 Electronics $ 22,329,182 $ 16,439,208 Manufactured 13,188,773 9,282,342 Re-Sell 18,766,340 16,596,713 Service 3,923,765 3,618,380 Total Revenue $ 58,208,060 $ 45,936,643 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 12 Months Ended |
Dec. 31, 2023 | |
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 6,119,834 shares to be granted for such awards under the 2023 Plan. Historically, the Company has only issued non-qualified stock options, restricted stock, and restricted stock units; however, the 2023 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 $1,043,740 and $814,769 during the years ended December 31, 2023 and December 31, 2022, respectively. As of December 31, 2023, the Company had $600,770 in unamortized compensation expense with a weighted average of 1.42 years remaining. The Company received $177,281 and $33,863 in cash from the exercise of share options during the years ended December 31, 2023 and December 31, 2022, 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, 2023 and December 31, 2022, the intrinsic value of options exercised was $939,335 and $19,113, respectively. The total fair value of options, restricted stock, and restricted stock units vested during the years ended December 31, 2023 and December 31, 2022 was $1,049,170 and $742,313, respectively. During the years ended December 31, 2023 and December 31, 2022 the Company granted 1,395,947 and 1,011,436 awards, respectively, with weighted-average grant date fair values of $1.17 and $1.28, 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, 2023 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 1,663,866 2.29 $ — — $ 0.40 $ 0.80 204,000 0.64 $ 0.79 204,000 0.64 $ 0.79 $ 0.81 $ 0.81 10,400 0.21 $ 0.81 10,400 0.21 $ 0.81 1,878,266 2.10 $ 0.09 214,400 0.62 $ 0.79 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 Information regarding stock options for the year ended December 31, 2023 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 759,900 $ 0.80 0.37 $ 194,920 Granted — $ — — $ — Exercised/Released (533,500) $ 0.81 $ 2.57 0.38 $ 939,335 Canceled/Forfeited (12,000) $ 0.79 0.37 $ 5,380 Expired — $ — 0 $ — Outstanding, end of period 214,400 $ 0.79 0.37 0.62 $ 219,500 Vested and unvested exercisable, end of the period 214,400 $ 0.79 0.37 0.62 $ 219,500 Vested and expected to vest, end of the period 214,400 $ 0.79 $ 0.37 0.62 $ 219,500 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 255,966 $ 0.80 $ 0.37 Granted — $ — $ — Canceled/Forfeited (4,000) $ 0.79 $ 0.37 Expired — Vested, outstanding shares (251,966) $ 0.80 $ 0.37 Unvested Outstanding, end of period — $ — $ — 0.00 Information regarding restricted stock awards for the year ended December 31, 2023 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 341,961 $ — $ 1.16 $ 396,675 Exercised/Released (341,961) $ — $ 1.16 $ 1.16 $ 396,675 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 341,961 $ — $ 1.16 Vested, outstanding shares (341,961) $ — $ 1.16 Unvested Outstanding, end of period — $ — $ — 0 Information regarding restricted stock units for the year ended December 31, 2023 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 407,835 $ — $ 1.31 $ 432,305 Granted 637,306 $ — $ 1.18 $ 754,952 Exercised/Released (435,319) $ — $ 1.45 $ 1.28 $ 629,866 Cancelled/Forfeited (3,000) $ — $ 1.16 $ 8,490 Outstanding, end of period 606,822 $ — $ 1.20 2.62 $ 1,098,348 Vested and exercisable, end of the period — $ — Vested and expected to vest, end of the period 606,822 $ — $ 1.20 2.62 $ 1,098,348 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 407,835 $ — $ 1.31 Granted 637,306 $ — $ 1.18 Cancelled/Forfeited (3,000) $ — $ 1.16 Vested, outstanding shares (435,319) $ — $ 1.28 Unvested Outstanding, end of period 606,822 $ — $ 1.20 1.28 Information regarding performance based restricted stock units for the year ended December 31, 2023 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 640,364 $ — $ 1.21 $ 678,786 Granted 416,680 $ — $ 1.16 $ 483,349 Exercised/Released — $ — $ — $ — $ — Cancelled/Forfeited — $ — $ — $ — Expired — $ — $ — $ — Outstanding, end of period 1,057,044 $ — $ 1.19 2.53 $ 1,913,250 Vested and exercisable, end of the period — $— $ — Vested and unvested exercisable, end of the period — $— $ — Vested and expected to vest, end of the period 609,960 $ — $ 1.20 2.53 $ 1,104,028 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 640,364 $ — $ 1.21 Granted 416,680 $ — $ 1.16 Cancelled/Forfeited — $ — $ — Vested, outstanding shares — $ — $ — Expired — $ — Unvested Outstanding, end of period 1,057,044 $ — $ 1.19 1.60 |
PROVISION FOR INCOME TAXES
PROVISION FOR INCOME TAXES | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
PROVISION FOR INCOME TAXES | PROVISION FOR INCOME TAXES During the years ended December 31, 2023 and December 31, 2022, 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, 2023, nor December 31, 2022. When our tax returns for the year ended December 31, 2022 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 2023 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 2021 through 2023 in the U.S. and 2016 through 2023 in Canada. At December 31, 2023, and December 31, 2022, the Company had operating loss carryforwards at its Canadian subsidiary of $0 CAD and $2,622,292 CAD, respectively. A valuation allowance was recorded for 100% of operating loss carry forward balance as of December 31, 2022. As a result, no deferred tax asset was recorded on our balance sheet at December 31, 2022 for these operating loss carry forwards. At December 31, 2023 and December 31, 2022, the Company had no operating loss carryforwards at its US subsidiary. 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 and apply for the credit. To be conservative and allow for the risk of a reduced credit amount approved by the IRS, in 2022, we recorded a reduction in payroll tax expense of $761,132. The remaining credit of $761,132, along with interest income of $55,499 was recorded when the full credit was received in 2023. The full benefit was claimed for tax purposes on the 2021 tax return and on an amended 2020 income tax return which flipped the company’s prior tax loss in 2021 to a small taxable income position and reduced the taxable losses in 2020. The Company had a net deferred tax asset of $496,785 as of December 31, 2023. The deferred tax asset on the balance sheet as of December 31, 2023 does 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 believes it is more likely than not that all of the deferred tax asset will be realized. In 2023, the Company identified an adjustment to its deferred tax balances, primarily related to stock compensation and fixed asset depreciation, which had accumulated over several years. The Company evaluated the materiality of the adjustment in the current and prior periods of accumulation and found the adjustment to be immaterial to all periods. The adjustment resulted in the recognition of a deferred tax benefit of $828,098, which is included as a component of total income tax expense for the year ended December 31, 2023. 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. 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 expense allocated to OCI during the year ended December 31, 2023 was $54,589 and the tax benefit allocated to OCI during the year ended December 31, 2022 was $167,868. The table below outlines the components of income tax expense (benefit): For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Current U.S. Federal $ 2,164,032 $ 887,732 State and local 334,390 176,700 Foreign 159,381 — Total Current 2,657,803 1,064,432 Deferred U.S. Federal (900,847) 435,603 State and local (139,385) 85,670 Foreign 52,126 152,717 Total Deferred (988,106) 673,990 Total Provision for Income Taxes 1,669,697 1,738,422 The table below reconciles our effective tax rate to the statutory tax rate: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 U.S. Federal statutory tax rate 21.0 % 21.0 % State and local statutory tax rate, net of federal effect 3.0 % 4.0 % Permanent Items 0.3 % (0.2) % Change in rate (0.1) % — % Unrealized gains and losses on investments (0.4) % (2.6) % Adjustments to deferred tax balances (7.8) % 0.0 % Release of valuation allowance (3.6) % 0.0 % Foreign tax rate difference (0.1) % 3.3 % Other 1.1 % 5.0 % Effective tax rate 13.4 % 30.5 % The table below shows the components of deferred taxes: As of December 31, 2023 December 31, 2022 Stock compensation $ 123,592 $ (349,260) Bad debt $ 64,357 $ 37,814 Inventory reserve 92,058 48,572 Amortization 114,582 101,745 Unrealized loss on investments 100,236 154,987 UNICAP 289,619 75,110 Goodwill (260,701) (219,252) Depreciation (8,580) (338,574) Other (18,378) — Net Deferred Tax Asset / (Liability) - US $ 496,785 $ (488,858) Depreciation $ (89,558) $ — Reserves 36,937 — Net Deferred Tax Asset / (Liability) - Canada $ (52,621) $ — |
BASIC AND DILUTED EARNINGS PER
BASIC AND DILUTED EARNINGS PER SHARE | 12 Months Ended |
Dec. 31, 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: 2023 2022 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 $ 10,776,714 47,355,978 $ 0.23 $ 3,947,760 47,161,101 $ 0.08 Effect of Dilutive Securities Stock options & RSUs — 1,771,580 — 1,286,241 Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ 10,776,714 49,127,558 $ 0.22 $ 3,947,760 48,447,342 $ 0.08 |
SEGMENT INFORMATION
SEGMENT INFORMATION | 12 Months Ended |
Dec. 31, 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 Year Ended December 31, Revenues 2023 2022 Canada $ 15,692,080 $ 12,138,605 United States 42,515,980 33,798,038 Total Consolidated $ 58,208,060 $ 45,936,643 For the Year Ended December 31, Net Income 2023 2022 Canada $ 1,934,718 $ 754,004 United States 8,841,996 3,193,756 Total Consolidated $ 10,776,714 $ 3,947,760 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, 2023 December 31, 2022 Canada $ 5,024,824 $ 5,067,965 United States 6,190,455 5,476,238 Total Consolidated $ 11,215,279 $ 10,544,203 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Dec. 31, 2023 | |
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 $75,473 USD paid quarterly. The agreement expires in March of 2024. The Company has operating leases for office space in Texas and Pennsylvania. Expense recognized for operating leases was $75,603 and $79,378 for the years ended December 31, 2023 and December 31, 2022, respectively. The future minimum lease payments for operating leases as of December 31, 2023, consisted of the following: Years ending December 31, Operating Leases 2024 $ 95,210 2025 86,736 2026 89,335 2027 84,139 2028 — Thereafter — Total $ 355,420 |
GOVERNMENT ASSISTANCE
GOVERNMENT ASSISTANCE | 12 Months Ended |
Dec. 31, 2023 | |
Government Assistance [Abstract] | |
GOVERNMENT ASSISTANCE | GOVERNMENT ASSISTANCE In the United States, we received an employee retention tax credit (ERC) that the Company applied for in September 2022. The ERC was available to the Company through the CARES Act and benefited the year ended December 31, 2022 as a reduction in payroll tax expense of $761,132, and the year ended December 31, 2023 as a reduction in payroll tax expense of $761,132 and interest income of $55,499. In Canada, our business qualified for wage subsidies under The National Research Council of Canada Industrial Research Assistance Program (IRAP). Through our Canadian subsidiary, we applied for IRAP in 2023 and received total wage subsidies of $104,425 CAD or $77,393 USD in 2023. Under IRAP rules, we are not required to repay these funds and we do not have any contingencies or commitments related to this IRAP aid. We recorded these amounts within our income statement |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2023 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In accordance with ASC 855 "Subsequent Events," Company management reviewed all material events through the date this report was issued and the following subsequent events took place: On March 6, 2024, the Company's Board of Directors approved a one-time bonus for company executives that was settled by issuing 225,698 shares of common stock for meeting targets pursuant to the previously described "2023 Executive Incentive Plan", which was put in place under the Company's 2014 Equity Incentive Plan. These shares were fully vested as of March 6, 2024. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 10,776,714 | $ 3,947,760 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
ORGANIZATION AND SUMMARY OF S_2
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include our wholly-owned subsidiaries. Intercompany balances and transactions have been eliminated. Certain amounts in the accompanying December 31, 2022 consolidated statements of operations and comprehensive income and footnotes have been reclassified to conform to the December 31, 2023 presentation. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Accounting Standards Update No. 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments The update adds a new impairment model, known as the current expected credit loss ("CECL") model, that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes an allowance for its estimate of expected credit losses at the initial recognition of an in-scope financial instrument. The CECL model does not have a minimum threshold for recognition of impairment losses and entities will need to measure expected credit losses on assets that have a low risk of loss. Since the Company is a smaller reporting company, as defined by the U.S. Securities and Exchange Commission (the "SEC"), the new guidance became effective on January 1, 2023. The Company adopted ASU 2016-13 effective January 1, 2023, but the adoption of ASU 2016-13 did not have a material impact on the Company's consolidated financial statements. See NOTE 1 – ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Accounts Receivable. Accounting Standards Update No. 2023-07 —Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The update is intended to improve reportable segment disclosure requirements through enhanced disclosures about significant segment expenses. The amendments require disclosure of significant segment expenses regularly provided to the chief operating decision maker (CODM) as well as other segment items, extend certain annual disclosures to interim periods, clarify the applicability to single reportable segment entities, permit more than one measure of profit or loss to be reported under certain conditions, and require disclosure of the title and position of the CODM. We expect to adopt the new disclosures as required for the year ended December 31, 2024. We are currently evaluating the impact on the related disclosures. Accounting Standards Update No. 2023-09 —Income Taxes (Topic 740): Improvements to Income Tax Disclosures The update requires the annual financial statements to include consistent categories and greater disaggregation of information in the rate reconciliation, and income taxes paid disaggregated by jurisdiction. ASU 2023-09 is effective for the Company’s annual reporting periods beginning after December 15, 2024, with early adoption permitted, and should be applied on a prospective basis, with a retrospective option. We are currently evaluating the effect that adoption of ASU 2023-09 will have on our disclosures. 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. |
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 0.7547 and 0.7370 were used to convert the Company's December 31, 2023 and December 31, 2022 balance sheets, respectively, and the statements of operations used weighted average rates of 0.7411 and 0.7679 for the years ended December 31, 2023 and December 31, 2022, 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 Equivalents |
Accounts Receivable | Accounts Receivable |
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 annually for impairment when indicators of impairment exist or more frequently as circumstances warrant. Intangible assets with indefinite lives are tested annually for impairment. |
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 | Revenue Recognition 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, 2023. 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 Costs |
Share-Based Compensation | Stock-Based Compensation |
Concentration of Credit Risk | Concentration of Credit Risk |
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 Plan |
Property and Equipment | Property and Equipment |
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 Instruments |
Earnings Per Share | Earnings Per Share |
Fair Value Measurement | 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. |
FINANCIAL INSTRUMENTS AND INV_2
FINANCIAL INSTRUMENTS AND INVESTMENTS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value and Pre-Tax Unrealized Losses 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, 2023 and 2022: December 31, 2023 Adjusted Cost Pre-Tax Unrealized Gains/(Losses) Fair Value Cash and Cash Equivalents Short Term Long Term Level 1 Money Market Funds $ 3,069,668 $ — $ 3,069,668 $ 3,069,668 $ — $ — Other Funds 1,889,552 (202,991) 1,686,561 — — 1,686,561 4,959,220 (202,991) 4,756,229 3,069,668 — 1,686,561 Level 2 Corporate Bonds 1,375,209 (62,885) 1,312,324 — 247,438 1,064,886 Municipal Bonds 6,373,922 (147,686) 6,226,236 — 2,552,101 3,674,135 7,749,131 (210,571) 7,538,560 — 2,799,539 4,739,021 Total $ 12,708,351 $ (413,562) $ 12,294,789 $ 3,069,668 $ 2,799,539 $ 6,425,582 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 Pre-tax unrealized losses on investments incurred during the periods are presented below: For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Unrealized Holding Gains (Losses) $ 225,226 $ (692,759) |
Schedule of Maturities of Bonds | The maturities for bonds held by the Company as of December 31, 2023 are presented in the table below: Maturity Fair Value Less Than One Year $ 2,799,539 1-2 years 2,677,224 2-5 years 2,061,797 5-10 years — Over 10 years — $ 7,538,560 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory | Inventories consisted of the following at each balance sheet date: As of December 31, 2023 December 31, 2022 Raw materials $ 338,539 $ 166,927 Finished goods 14,171,616 10,452,930 Work in process — — Subtotal 14,510,155 10,619,857 Reserve for obsolescence (450,499) (325,877) Total $ 14,059,656 $ 10,293,980 |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2023 December 31, 2022 Prepaid inventory 1,944,942 784,420 Accrued Receivables 119,035 881,176 Prepaid insurance 351,273 240,785 Interest receivables 81,868 72,761 Tax credits 740 118,035 Other 334,404 217,462 $ 2,832,262 $ 2,314,639 |
PROPERTY AND EQUIPMENT (Tables)
PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment and Estimated Useful Lives and Depreciation and Amortization Expense | Property and equipment and estimated useful lives are presented in the table below: As of December 31, 2023 December 31, 2022 Est. Useful Life Furniture and fixtures $ 734,736 $ 623,086 7 years Computers 299,706 223,626 3 years Machinery and equipment 549,584 541,036 7 years Leased Equipment — 22,462 5 years Vehicles 2,567,005 2,038,581 5 years Land and buildings 11,375,748 11,240,356 30 years Total property and equipment 15,526,779 14,689,147 Accumulated depreciation $ (4,744,407) $ (4,265,183) Net property and equipment 10,782,372 10,423,964 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, 2023 For the Year Ended December 31, 2022 Cost of goods sold - product depreciation $ 374,773 $ 328,482 Cost of goods sold - service depreciation 158,311 144,543 Operating expense depreciation 369,703 388,618 Amortization expense 206,175 239,401 Total depreciation & amortization expense $ 1,108,962 $ 1,101,044 |
INTANGIBLE ASSETS (Tables)
INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 December 31, 2022 Definite-lived intangible assets $ 1,903,073 $ 1,903,073 Less: Accumulated amortization (798,971) (634,166) Definite-lived intangible assets, net $ 1,104,102 $ 1,268,907 |
Schedule of Estimated 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 2024 $ 125,591 2025 $ 80,899 2026 $ 80,899 2027 $ 80,899 2028 $ 80,899 Greater than 5 years $ 654,915 |
Schedule of Indefinite-Lived Intangible Assets | Indefinite-lived intangible assets As of December 31, 2023 December 31, 2022 Goodwill $ 2,579,381 $ 2,579,381 |
ACCRUED LIABILITIES (Tables)
ACCRUED LIABILITIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Other Liabilities Disclosure [Abstract] | |
Schedule of Accrued Liabilities | Accrued liabilities consisted of the following at each balance sheet date: As of December 31, 2023 December 31, 2022 Employee-related payables $ 2,910,801 $ 2,404,848 Deferred Revenue 780,428 420,827 Inventory-related payables $ 400,701 $ 285,109 Other tax-related payables 119,188 54,762 Warranty liabilities $ 108,930 $ 74,103 Other 221,772 334,345 Total $ 4,541,820 $ 3,573,994 |
LEASES (Tables)
LEASES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Right-of-Use Assets and Liabilities | As of Components of lease right-of-use assets and liabilities December 31, 2023 December 31, 2022 Financing lease right-of-use assets $ 106,402 $ 83,936 Operating lease right-of-use assets 326,505 36,303 Total Lease right-of-use assets $ 432,907 $ 120,239 Financing current lease liability $ 47,492 $ 28,262 Operating current lease liability 82,692 25,385 Total Current lease liability $ 130,184 $ 53,646 Financing long-term lease liability $ 63,393 $ 56,965 Operating long-term lease liability 244,135 10,918 Total Long-term lease liability $ 307,528 $ 67,883 |
Schedule of Components of Financing Lease Cost | The following table shows the components of financing lease cost: Financing Lease Cost For the Year Ended December 31, 2023 For the Year Ended December 31, 2022 Amortization of right-of-use assets $ 41,370 $ 34,658 Interest on lease liabilities 9,450 3,147 Total financing lease cost $ 50,820 $ 37,805 |
Schedule of Future Minimum Lease Payments to Discounted Lease Liability | The following table reconciles future minimum lease payments to the discounted lease liability: Years ending December 31 2024 $ 152,711 2025 126,278 2026 112,768 2027 91,097 2028 — Thereafter — Total future minimum lease payments $ 482,854 Less: Amount representing interest 45,141 Present value of future payments $ 437,712 Current portion $ 130,184 Long-term portion $ 307,528 |
STOCKHOLDERS' EQUITY (Tables)
STOCKHOLDERS' EQUITY (Tables) | 12 Months Ended |
Dec. 31, 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 based upon the following Company performance metrics: Performance Metrics Weight Target Above Target Outstanding Total Shareholder Return 1/3 94.2% 142.7% 191.3% Relative Total Shareholder Return 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 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, were 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% |
REVENUE (Tables)
REVENUE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of 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, 2023 Year Ended December 31, 2022 Electronics $ 22,329,182 $ 16,439,208 Manufactured 13,188,773 9,282,342 Re-Sell 18,766,340 16,596,713 Service 3,923,765 3,618,380 Total Revenue $ 58,208,060 $ 45,936,643 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Outstanding Options, Restricted Stock Awards, and Restricted Stock Units | Information regarding outstanding options, restricted stock awards, and restricted stock units is summarized in the tables below: Total Outstanding and Exercisable Awards December 31, 2023 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 1,663,866 2.29 $ — — $ 0.40 $ 0.80 204,000 0.64 $ 0.79 204,000 0.64 $ 0.79 $ 0.81 $ 0.81 10,400 0.21 $ 0.81 10,400 0.21 $ 0.81 1,878,266 2.10 $ 0.09 214,400 0.62 $ 0.79 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 |
Schedule of Stock Option Activity | Information regarding stock options for the year ended December 31, 2023 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 759,900 $ 0.80 0.37 $ 194,920 Granted — $ — — $ — Exercised/Released (533,500) $ 0.81 $ 2.57 0.38 $ 939,335 Canceled/Forfeited (12,000) $ 0.79 0.37 $ 5,380 Expired — $ — 0 $ — Outstanding, end of period 214,400 $ 0.79 0.37 0.62 $ 219,500 Vested and unvested exercisable, end of the period 214,400 $ 0.79 0.37 0.62 $ 219,500 Vested and expected to vest, end of the period 214,400 $ 0.79 $ 0.37 0.62 $ 219,500 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 255,966 $ 0.80 $ 0.37 Granted — $ — $ — Canceled/Forfeited (4,000) $ 0.79 $ 0.37 Expired — Vested, outstanding shares (251,966) $ 0.80 $ 0.37 Unvested Outstanding, end of period — $ — $ — 0.00 |
Schedule of Restricted Stock Activity | Information regarding restricted stock awards for the year ended December 31, 2023 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 341,961 $ — $ 1.16 $ 396,675 Exercised/Released (341,961) $ — $ 1.16 $ 1.16 $ 396,675 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 341,961 $ — $ 1.16 Vested, outstanding shares (341,961) $ — $ 1.16 Unvested Outstanding, end of period — $ — $ — 0 Information regarding restricted stock units for the year ended December 31, 2023 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 407,835 $ — $ 1.31 $ 432,305 Granted 637,306 $ — $ 1.18 $ 754,952 Exercised/Released (435,319) $ — $ 1.45 $ 1.28 $ 629,866 Cancelled/Forfeited (3,000) $ — $ 1.16 $ 8,490 Outstanding, end of period 606,822 $ — $ 1.20 2.62 $ 1,098,348 Vested and exercisable, end of the period — $ — Vested and expected to vest, end of the period 606,822 $ — $ 1.20 2.62 $ 1,098,348 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 407,835 $ — $ 1.31 Granted 637,306 $ — $ 1.18 Cancelled/Forfeited (3,000) $ — $ 1.16 Vested, outstanding shares (435,319) $ — $ 1.28 Unvested Outstanding, end of period 606,822 $ — $ 1.20 1.28 Information regarding performance based restricted stock units for the year ended December 31, 2023 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 640,364 $ — $ 1.21 $ 678,786 Granted 416,680 $ — $ 1.16 $ 483,349 Exercised/Released — $ — $ — $ — $ — Cancelled/Forfeited — $ — $ — $ — Expired — $ — $ — $ — Outstanding, end of period 1,057,044 $ — $ 1.19 2.53 $ 1,913,250 Vested and exercisable, end of the period — $— $ — Vested and unvested exercisable, end of the period — $— $ — Vested and expected to vest, end of the period 609,960 $ — $ 1.20 2.53 $ 1,104,028 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 640,364 $ — $ 1.21 Granted 416,680 $ — $ 1.16 Cancelled/Forfeited — $ — $ — Vested, outstanding shares — $ — $ — Expired — $ — Unvested Outstanding, end of period 1,057,044 $ — $ 1.19 1.60 |
PROVISION FOR INCOME TAXES (Tab
PROVISION FOR INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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, 2023 For the Year Ended December 31, 2022 Current U.S. Federal $ 2,164,032 $ 887,732 State and local 334,390 176,700 Foreign 159,381 — Total Current 2,657,803 1,064,432 Deferred U.S. Federal (900,847) 435,603 State and local (139,385) 85,670 Foreign 52,126 152,717 Total Deferred (988,106) 673,990 Total Provision for Income Taxes 1,669,697 1,738,422 |
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, 2023 For the Year Ended December 31, 2022 U.S. Federal statutory tax rate 21.0 % 21.0 % State and local statutory tax rate, net of federal effect 3.0 % 4.0 % Permanent Items 0.3 % (0.2) % Change in rate (0.1) % — % Unrealized gains and losses on investments (0.4) % (2.6) % Adjustments to deferred tax balances (7.8) % 0.0 % Release of valuation allowance (3.6) % 0.0 % Foreign tax rate difference (0.1) % 3.3 % Other 1.1 % 5.0 % Effective tax rate 13.4 % 30.5 % |
Schedule of Components of Deferred Tax Assets and Liabilities | The table below shows the components of deferred taxes: As of December 31, 2023 December 31, 2022 Stock compensation $ 123,592 $ (349,260) Bad debt $ 64,357 $ 37,814 Inventory reserve 92,058 48,572 Amortization 114,582 101,745 Unrealized loss on investments 100,236 154,987 UNICAP 289,619 75,110 Goodwill (260,701) (219,252) Depreciation (8,580) (338,574) Other (18,378) — Net Deferred Tax Asset / (Liability) - US $ 496,785 $ (488,858) Depreciation $ (89,558) $ — Reserves 36,937 — Net Deferred Tax Asset / (Liability) - Canada $ (52,621) $ — |
BASIC AND DILUTED EARNINGS PE_2
BASIC AND DILUTED EARNINGS PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Numerator and Denominators Used in Earnings Per Share Calculation | The following table is a reconciliation of the numerator and denominators used in the earnings per share calculation: 2023 2022 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 $ 10,776,714 47,355,978 $ 0.23 $ 3,947,760 47,161,101 $ 0.08 Effect of Dilutive Securities Stock options & RSUs — 1,771,580 — 1,286,241 Diluted EPS Net income (loss) available to common stockholders + assumed conversions $ 10,776,714 49,127,558 $ 0.22 $ 3,947,760 48,447,342 $ 0.08 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
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 2023 2022 Canada $ 15,692,080 $ 12,138,605 United States 42,515,980 33,798,038 Total Consolidated $ 58,208,060 $ 45,936,643 For the Year Ended December 31, Net Income 2023 2022 Canada $ 1,934,718 $ 754,004 United States 8,841,996 3,193,756 Total Consolidated $ 10,776,714 $ 3,947,760 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, 2023 December 31, 2022 Canada $ 5,024,824 $ 5,067,965 United States 6,190,455 5,476,238 Total Consolidated $ 11,215,279 $ 10,544,203 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Future Minimum Lease Payments for Operating Leases | The future minimum lease payments for operating leases as of December 31, 2023, consisted of the following: Years ending December 31, Operating Leases 2024 $ 95,210 2025 86,736 2026 89,335 2027 84,139 2028 — Thereafter — Total $ 355,420 |
ORGANIZATION AND SUMMARY OF S_3
ORGANIZATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) $ / $ | Dec. 31, 2022 USD ($) $ / $ | |
Concentration Risk [Line Items] | ||
Deferred tax benefit | $ (988,106) | $ 673,990 |
Translation rate (in US dollars per Canadian dollars) | $ / $ | 0.7547 | 0.737 |
Weighted average exchange rate (in US dollars per Canadian dollars) | $ / $ | 0.7411 | 0.7679 |
Cash, uninsured amount | $ 8,376,661 | $ 5,328,825 |
Allowance for doubtful accounts | 365,394 | 220,745 |
Bad debt expense | 488,420 | 77,704 |
Advertising costs | 163,669 | 59,792 |
General and administrative | $ 17,184,917 | 14,776,905 |
Defined Contribution Retirement Plan | ||
Concentration Risk [Line Items] | ||
Employer match percentage of annual salary | 4% | |
General and administrative | $ 224,297 | $ 193,876 |
Customer Concentration Risk | Four Largest Customers | Revenue from Contract with Customer Benchmark | ||
Concentration Risk [Line Items] | ||
Concentration risk, customer | 16% | 11% |
FINANCIAL INSTRUMENTS AND INV_3
FINANCIAL INSTRUMENTS AND INVESTMENTS - Schedule of Adjusted Cost, Unrealized Gains (Losses) and Fair Value (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | $ 12,708,351 | $ 12,449,565 |
Pre-Tax Unrealized Gains/(Losses) | (413,562) | (638,788) |
Fair Value | 12,294,789 | 11,810,777 |
Cash and Cash Equivalents | 3,069,668 | 3,153,074 |
Short Term | 2,799,539 | 1,154,284 |
Long Term | 6,425,582 | 7,503,419 |
Level 1 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 4,959,220 | 5,042,626 |
Pre-Tax Unrealized Gains/(Losses) | (202,991) | (257,126) |
Fair Value | 4,756,229 | 4,785,500 |
Cash and Cash Equivalents | 3,069,668 | 3,153,074 |
Short Term | 0 | 0 |
Long Term | 1,686,561 | 1,632,426 |
Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 7,749,131 | 7,406,939 |
Pre-Tax Unrealized Gains/(Losses) | (210,571) | (381,662) |
Fair Value | 7,538,560 | 7,025,277 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 2,799,539 | 1,154,284 |
Long Term | 4,739,021 | 5,870,993 |
Money Market Funds | Level 1 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 3,069,668 | 3,153,074 |
Fair Value | 3,069,668 | 3,153,074 |
Cash and Cash Equivalents | 3,069,668 | 3,153,074 |
Other Funds | Level 1 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 1,889,552 | 1,889,552 |
Pre-Tax Unrealized Gains/(Losses) | (202,991) | (257,126) |
Fair Value | 1,686,561 | 1,632,426 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 0 | 0 |
Long Term | 1,686,561 | 1,632,426 |
Corporate Bonds | Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 1,375,209 | 1,277,675 |
Pre-Tax Unrealized Gains/(Losses) | (62,885) | (109,599) |
Fair Value | 1,312,324 | 1,168,076 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 247,438 | 0 |
Long Term | 1,064,886 | 1,168,076 |
Municipal Bonds | Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Adjusted Cost | 6,373,922 | 6,129,264 |
Pre-Tax Unrealized Gains/(Losses) | (147,686) | (272,063) |
Fair Value | 6,226,236 | 5,857,201 |
Cash and Cash Equivalents | 0 | 0 |
Short Term | 2,552,101 | 1,154,284 |
Long Term | $ 3,674,135 | $ 4,702,917 |
FINANCIAL INSTRUMENTS AND INV_4
FINANCIAL INSTRUMENTS AND INVESTMENTS - Schedule of Pre-Tax Unrealized Losses on Investments (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | ||
Unrealized Holding Gains (Losses) | $ 225,226 | $ (692,759) |
FINANCIAL INSTRUMENTS AND INV_5
FINANCIAL INSTRUMENTS AND INVESTMENTS - Schedule of Maturities of Bonds (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | $ 12,294,789 | $ 11,810,777 |
Level 2 | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | 7,538,560 | $ 7,025,277 |
Level 2 | Less Than One Year | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | 2,799,539 | |
Level 2 | 1-2 years | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | 2,677,224 | |
Level 2 | 2-5 years | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | 2,061,797 | |
Level 2 | 5-10 years | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | 0 | |
Level 2 | Over 10 years | ||
Debt Securities, Available-for-Sale [Line Items] | ||
Fair Value | $ 0 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 338,539 | $ 166,927 |
Finished goods | 14,171,616 | 10,452,930 |
Work in process | 0 | 0 |
Subtotal | 14,510,155 | 10,619,857 |
Reserve for obsolescence | (450,499) | (325,877) |
Total | $ 14,059,656 | $ 10,293,980 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2020 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||
Prepaid inventory | $ 1,944,942 | $ 784,420 | |
Accrued Receivables | 119,035 | 881,176 | |
Prepaid insurance | 351,273 | 240,785 | |
Interest receivables | 81,868 | 72,761 | |
Tax credits | 740 | 118,035 | $ 416,560 |
Other | 334,404 | 217,462 | |
Total | $ 2,832,262 | $ 2,314,639 |
PROPERTY AND EQUIPMENT - Schedu
PROPERTY AND EQUIPMENT - Schedule of Property and Equipment and Estimated Useful Lives (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 15,526,779 | $ 14,689,147 |
Accumulated depreciation | (4,744,407) | (4,265,183) |
Net property and equipment | 10,782,372 | 10,423,964 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 734,736 | 623,086 |
Est. Useful Life | 7 years | |
Computers | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 299,706 | 223,626 |
Est. Useful Life | 3 years | |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 549,584 | 541,036 |
Est. Useful Life | 7 years | |
Leased Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 0 | 22,462 |
Est. Useful Life | 5 years | |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 2,567,005 | 2,038,581 |
Est. Useful Life | 5 years | |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment | $ 11,375,748 | $ 11,240,356 |
Est. Useful Life | 30 years |
PROPERTY AND EQUIPMENT - Sche_2
PROPERTY AND EQUIPMENT - Schedule of Depreciation and Amortization Expense (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | ||
Total depreciation & amortization expense | $ 1,108,962 | $ 1,101,044 |
Cost of goods sold - product depreciation | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation & amortization expense | 374,773 | 328,482 |
Cost of goods sold - service depreciation | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation & amortization expense | 158,311 | 144,543 |
Operating expense depreciation | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation & amortization expense | 369,703 | 388,618 |
Amortization expense | ||
Property, Plant and Equipment [Line Items] | ||
Total depreciation & amortization expense | $ 206,175 | $ 239,401 |
INTANGIBLE ASSETS - Narrative (
INTANGIBLE ASSETS - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Amortization expense of net definite-lived intangible assets | $ 164,805 | $ 204,742 |
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 - Schedule of
INTANGIBLE ASSETS - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Definite-lived intangible assets | $ 1,903,073 | $ 1,903,073 |
Less: Accumulated amortization | (798,971) | (634,166) |
Definite-lived intangible assets, net | $ 1,104,102 | $ 1,268,907 |
INTANGIBLE ASSETS - Schedule _2
INTANGIBLE ASSETS - Schedule of Estimated Amortization Expense (Details) | Dec. 31, 2023 USD ($) |
Intangible Assets, Net (Including Goodwill) [Abstract] | |
2024 | $ 125,591 |
2025 | 80,899 |
2026 | 80,899 |
2027 | 80,899 |
2028 | 80,899 |
Greater than 5 years | $ 654,915 |
INTANGIBLE ASSETS - Schedule _3
INTANGIBLE ASSETS - Schedule of Indefinite-Lived Intangible Assets (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Including Goodwill) [Abstract] | ||
Goodwill | $ 2,579,381 | $ 2,579,381 |
ACCRUED LIABILITIES (Details)
ACCRUED LIABILITIES (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Other Liabilities Disclosure [Abstract] | ||
Employee-related payables | $ 2,910,801 | $ 2,404,848 |
Deferred Revenue | 780,428 | 420,827 |
Inventory-related payables | 400,701 | 285,109 |
Other tax-related payables | 119,188 | 54,762 |
Warranty liabilities | 108,930 | 74,103 |
Other | 221,772 | 334,345 |
Total | $ 4,541,820 | $ 3,573,994 |
LEASES - Schedule of Components
LEASES - Schedule of Components of Lease Right-of-Use Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Financing lease right-of-use assets | $ 106,402 | $ 83,936 |
Operating lease right-of-use assets | 326,505 | 36,303 |
Total Lease right-of-use assets | $ 432,907 | $ 120,239 |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total Current lease liability | Total Current lease liability |
Financing current lease liability | $ 47,492 | $ 28,262 |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Total Current lease liability | Total Current lease liability |
Operating current lease liability | $ 82,692 | $ 25,385 |
Total Current lease liability | $ 130,184 | $ 53,646 |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total Long-term lease liability | Total Long-term lease liability |
Financing long-term lease liability | $ 63,393 | $ 56,965 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Total Long-term lease liability | Total Long-term lease liability |
Operating long-term lease liability | $ 244,135 | $ 10,918 |
Total Long-term lease liability | $ 307,528 | $ 67,883 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total Lease right-of-use assets | Total Lease right-of-use assets |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Total Lease right-of-use assets | Total Lease right-of-use assets |
LEASES - Narrative (Details)
LEASES - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2023 USD ($) warehouse | Dec. 31, 2022 USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Lease term | 3 years | |
Weighted average discount rate | 4.50% | |
Weighted average remaining lease term | 2 years 7 months 6 days | |
Number of leases | warehouse | 2 | |
Operating lease, weighted average discount rate | 450% | |
Operating lease, weighted average remaining lease term | 3 years 10 months 24 days | |
Lease cost | $ | $ 75,603 | $ 79,378 |
Warehouse Space One | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease contract term | 2 years | |
Warehouse Space Two | ||
Lessee, Lease, Description [Line Items] | ||
Operating lease contract term | 4 years |
LEASES - Schedule of Componen_2
LEASES - Schedule of Components of Financing Lease Cost (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Leases [Abstract] | ||
Amortization of right-of-use assets | $ 41,370 | $ 34,658 |
Interest on lease liabilities | 9,450 | 3,147 |
Total financing lease cost | $ 50,820 | $ 37,805 |
LEASES - Schedule of Future Min
LEASES - Schedule of Future Minimum Lease Payments to Discounted Lease Liability (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Years ending December 31 | ||
2024 | $ 152,711 | |
2025 | 126,278 | |
2026 | 112,768 | |
2027 | 91,097 | |
2028 | 0 | |
Thereafter | 0 | |
Total future minimum lease payments | 482,854 | |
Less: Amount representing interest | 45,141 | |
Present value of future payments | 437,712 | |
Current portion | 130,184 | $ 53,646 |
Long-term portion | $ 307,528 | $ 67,883 |
STOCKHOLDERS' EQUITY - Narrativ
STOCKHOLDERS' EQUITY - Narrative (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jun. 29, 2023 | Jun. 15, 2022 | Oct. 31, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Apr. 30, 2024 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Treasury stock (in shares) | 6,243,363 | 5,038,130 | |||||
Treasury stock value | $ 9,324,272 | $ 7,336,323 | |||||
Stock repurchase program, authorized amount | $ 2,000,000 | ||||||
Cooling off period | 30 days | ||||||
Treasury stock, shares, acquired (in shares) | 1,205,233 | 961,221 | |||||
Unamortized compensation expense | $ 600,770 | ||||||
Forecast | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 2,000,000 | ||||||
Restricted Stock Units | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Number of shares granted (in shares) | 195,966 | 178,623 | 637,306 | ||||
Award vesting rights, percentage | 50% | 50% | |||||
Unamortized compensation expense | $ 243,000 | $ 234,000 |
STOCKHOLDERS' EQUITY - 2023 EIP
STOCKHOLDERS' EQUITY - 2023 EIP (Narrative) (Details) - 2023 EIP | Dec. 31, 2023 | Apr. 25, 2023 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Incentive Compensation Weight | 0.30 | |
Incentive Compensation Weight, Safety And Environment, Percentage | 10% | |
Percentage of bonus paid in cash | 0.50 | |
Percentage of bonus paid in stock | 50% | |
Target payout percentage | 200% | |
Chief Financial Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payments to Employees, Percentage of Salary | 0.62 | |
Chief Business Development Officer | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payments to Employees, Percentage of Salary | 0.62 | |
Vice President of Production Development | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Payments to Employees, Percentage of Salary | 0.37 |
STOCKHOLDERS' EQUITY - 2023 LTI
STOCKHOLDERS' EQUITY - 2023 LTIP (Narrative) (Details) - shares | 12 Months Ended | |||||
Jun. 29, 2023 | Apr. 25, 2023 | Jun. 15, 2022 | Jun. 16, 2021 | May 28, 2021 | Dec. 31, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
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% | |||||
2023 LTIP | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of award covered by metric | 33% | |||||
2023 LTIP | Tranche Two | ||||||
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] | ||||||
Number of shares granted (in shares) | 195,966 | 178,623 | 637,306 | |||
Award vesting period | 1 year | |||||
Award vesting rights, percentage | 50% | 50% | ||||
Performance Shares | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Award vesting rights, percentage | 33.33% | |||||
Chief Financial Officer | Restricted Stock Units | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 287,076 | |||||
Chief Financial Officer | Time-based Units | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 95,692 | |||||
Chief Financial Officer | Performance Shares | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 191,384 | |||||
Chief Financial Officer | Performance Shares | 2023 LTIP | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 63,794 | |||||
Chief Business Development Officer | Restricted Stock Units | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 287,076 | |||||
Chief Business Development Officer | Time-based Units | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 95,692 | |||||
Chief Business Development Officer | Performance Shares | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 191,384 | |||||
Chief Business Development Officer | Performance Shares | 2023 LTIP | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 63,794 | |||||
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 (in shares) | 50,868 | |||||
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 (in shares) | 16,956 | |||||
Vice President of Production Development | Performance Shares | 2023 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 33,912 | |||||
Vice President of Production Development | Performance Shares | 2023 LTIP | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 11,304 |
STOCKHOLDERS' EQUITY - Schedule
STOCKHOLDERS' EQUITY - Schedule of Performance Metrics (Details) | Apr. 25, 2023 | Apr. 06, 2022 | May 28, 2021 |
Weight | 2023 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 33.33% | ||
Performance metric percentage, relative total shareholder return | 33.33% | ||
Performance metric percentage, EBITDA | 33.33% | ||
Weight | 2022 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 33.33% | ||
Performance metric percentage, relative total shareholder return | 33.33% | ||
Performance metric percentage, EBITDA | 33.33% | ||
Weight | 2021 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 33.33% | ||
Performance metric percentage, relative total shareholder return | 33.33% | ||
Performance metric percentage, EBITDA | 33.33% | ||
Target | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 94.20% | ||
Performance metric percentage, EBITDA | 15% | ||
Target | 2023 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, relative total shareholder return | 75% | ||
Target | 2022 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 89% | ||
Performance metric percentage, relative total shareholder return | 75% | ||
Performance metric percentage, EBITDA | 10% | ||
Target | 2021 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 135% | ||
Performance metric percentage, relative total shareholder return | 75% | ||
Performance metric percentage, EBITDA | 10% | ||
Above Target | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 142.70% | ||
Performance metric percentage, EBITDA | 17.50% | ||
Above Target | 2023 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, relative total shareholder return | 50% | ||
Above Target | 2022 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 136% | ||
Performance metric percentage, relative total shareholder return | 50% | ||
Performance metric percentage, EBITDA | 15% | ||
Above Target | 2021 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 194% | ||
Performance metric percentage, relative total shareholder return | 50% | ||
Performance metric percentage, EBITDA | 15% | ||
Outstanding | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 191.30% | ||
Performance metric percentage, EBITDA | 20% | ||
Outstanding | 2023 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, relative total shareholder return | 25% | ||
Outstanding | 2022 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 183% | ||
Performance metric percentage, relative total shareholder return | 25% | ||
Performance metric percentage, EBITDA | 20% | ||
Outstanding | 2021 LTIP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Performance metric percentage, total shareholder return | 253% | ||
Performance metric percentage, relative total shareholder return | 25% | ||
Performance metric percentage, EBITDA | 20% |
STOCKHOLDERS' EQUITY - 2022 EIP
STOCKHOLDERS' EQUITY - 2022 EIP and LTIP (Narrative) (Details) | 12 Months Ended | |||||
Jun. 29, 2023 shares | Mar. 06, 2023 shares | Jun. 15, 2022 shares | Apr. 06, 2022 numberOfShare agreement performanceMetric shares | Jun. 16, 2021 | Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 195,966 | 178,623 | 637,306 | |||
Award vesting period | 1 year | |||||
2022 EIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of bonus paid in cash | 0.50 | |||||
Percentage of bonus paid in stock | 50% | |||||
Stock issued employee stock ownership plan (in shares) | 341,961 | |||||
Tax withholding (in shares) | 192,964 | |||||
Percentage of award covered by metric | 33.33% | |||||
2022 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of common shares issued per unit vested | numberOfShare | 1 | |||||
Performance metrics identified | performanceMetric | 3 | |||||
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% | |||||
2022 LTIP | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of award covered by metric | 33% | |||||
2022 LTIP | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of award covered by metric | 67% | |||||
2022 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of restricted stock unit award agreements | agreement | 2 | |||||
2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Chief Financial Officer | 2022 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 230,232 | |||||
Chief Financial Officer | 2022 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 76,744 | |||||
Chief Financial Officer | 2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 153,488 | |||||
Chief Financial Officer | 2022 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 51,163 | |||||
Chief Business Development Officer | 2022 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 230,232 | |||||
Chief Business Development Officer | 2022 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 76,744 | |||||
Chief Business Development Officer | 2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 153,488 | |||||
Chief Business Development Officer | 2022 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 51,163 | |||||
Vice President of Production Development | 2022 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 43,023 | |||||
Vice President of Production Development | 2022 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 14,341 | |||||
Number of annual installments for vesting | 3 years | |||||
Vice President of Production Development | 2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 28,682 | |||||
Vice President of Production Development | 2022 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 9,561 |
STOCKHOLDERS' EQUITY - 2021 LTI
STOCKHOLDERS' EQUITY - 2021 LTIP (Narrative) (Details) | 12 Months Ended | |||||
Jun. 29, 2023 shares | Jun. 15, 2022 shares | Apr. 06, 2022 performanceMetric shares | Jun. 16, 2021 | May 28, 2021 bay agreement shares | Dec. 31, 2023 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 5 years | |||||
Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 195,966 | 178,623 | 637,306 | |||
Award vesting period | 1 year | |||||
Award vesting rights, percentage | 50% | 50% | ||||
2021 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance metrics identified | 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% | |||||
2021 LTIP | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of award covered by metric | 33% | |||||
2021 LTIP | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of award covered by metric | 67% | |||||
2021 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Award vesting rights, percentage | 33.33% | |||||
2022 LTIP | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Performance metrics identified | performanceMetric | 3 | |||||
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% | |||||
2022 LTIP | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of award covered by metric | 33% | |||||
2022 LTIP | Tranche Two | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Percentage of award covered by metric | 67% | |||||
2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Award vesting rights, percentage | 33.33% | |||||
Chief Financial Officer | 2021 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 204,543 | |||||
Chief Financial Officer | 2021 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 68,181 | |||||
Chief Financial Officer | 2021 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 136,362 | |||||
Chief Financial Officer | 2021 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 45,454 | |||||
Chief Financial Officer | 2022 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 230,232 | |||||
Chief Financial Officer | 2022 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 76,744 | |||||
Chief Financial Officer | 2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 153,488 | |||||
Chief Financial Officer | 2022 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 51,163 | |||||
Chief Business Development Officer | 2021 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 204,543 | |||||
Share-based payment arrangement, number of agreements | agreement | 2 | |||||
Chief Business Development Officer | 2021 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 68,181 | |||||
Chief Business Development Officer | 2021 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 136,362 | |||||
Chief Business Development Officer | 2021 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 45,454 | |||||
Chief Business Development Officer | 2022 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 230,232 | |||||
Chief Business Development Officer | 2022 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 76,744 | |||||
Chief Business Development Officer | 2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 153,488 | |||||
Chief Business Development Officer | 2022 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 51,163 | |||||
Vice President of Operations | 2021 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 85,908 | |||||
Vice President of Operations | 2021 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 28,636 | |||||
Vice President of Operations | 2021 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 57,272 | |||||
Vice President of Operations | 2021 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 19,091 | |||||
Vice President of Production Development | 2021 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 47,973 | |||||
Vice President of Production Development | 2021 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 15,991 | |||||
Number of annual installments for vesting | 3 years | |||||
Vice President of Production Development | 2021 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 31,982 | |||||
Vice President of Production Development | 2021 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 10,661 | |||||
Vice President of Production Development | 2022 LTIP | Restricted Stock Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 43,023 | |||||
Vice President of Production Development | 2022 LTIP | Time-based Units | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 14,341 | |||||
Number of annual installments for vesting | 3 years | |||||
Vice President of Production Development | 2022 LTIP | Performance Shares | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 28,682 | |||||
Vice President of Production Development | 2022 LTIP | Performance Shares | Tranche One | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares granted (in shares) | 9,561 |
STOCKHOLDERS' EQUITY - Stock Op
STOCKHOLDERS' EQUITY - Stock Options (Narrative) (Details) - shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares issued (in shares) | 0 | 0 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Return period | 90 days |
Payment period after satisfaction of obligation | 30 days |
Minimum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Product warranty term | 90 days |
Maximum | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Product warranty term | 2 years |
REVENUE - Schedule of Disaggreg
REVENUE - Schedule of Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 58,208,060 | $ 45,936,643 |
Electronics | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 22,329,182 | 16,439,208 |
Manufactured | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13,188,773 | 9,282,342 |
Re-Sell | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 18,766,340 | 16,596,713 |
Service | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 3,923,765 | $ 3,618,380 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Award vesting period | 5 years | |
Grant expiration period | 1 year | |
Stock based compensation | $ 1,043,740 | $ 814,769 |
Unamortized compensation expense | $ 600,770 | |
Weighted average years remaining | 1 year 5 months 1 day | |
Cash received in exercise of stock options | $ 177,281 | 33,863 |
Intrinsic value of options exercised | 939,335 | 19,113 |
Fair value of units vested | $ 1,049,170 | $ 742,313 |
Shares granted during period (in shares) | 1,395,947 | 1,011,436 |
Weighted average grant date fair value (in dollars per share) | $ 1.17 | $ 1.28 |
Additional Paid-In Capital | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock based compensation | $ 1,043,740 | $ 814,769 |
2023 Equity Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized (in shares) | 6,119,834 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of Outstanding Options, Restricted Stock Awards, and Restricted Stock Units (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Awards Outstanding | ||
Quantity (in shares) | 1,878,266 | 1,808,099 |
Remaining Contractual Life (Years) | 2 years 1 month 6 days | 2 years 1 month 6 days |
Exercise Price (in dollars per share) | $ 0.09 | $ 0.35 |
Awards Exercisable | ||
Quantity (in shares) | 214,400 | 503,934 |
Remaining Contractual Life (Years) | 7 months 13 days | 1 year 6 months 21 days |
Exercise Price (in dollars per share) | $ 0.79 | $ 0.80 |
$0 - $0.39 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Grant Price Low (in dollars per share) | 0 | 0 |
Grant Price High (in dollars per share) | $ 0.39 | $ 0.39 |
Awards Outstanding | ||
Quantity (in shares) | 1,663,866 | 1,048,199 |
Remaining Contractual Life (Years) | 2 years 3 months 14 days | 2 years 6 months |
Exercise Price (in dollars per share) | $ 0 | $ 0 |
Awards Exercisable | ||
Quantity (in shares) | 0 | 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 | $ 0.40 |
Grant Price High (in dollars per share) | $ 0.80 | $ 0.80 |
Awards Outstanding | ||
Quantity (in shares) | 204,000 | 469,000 |
Remaining Contractual Life (Years) | 7 months 20 days | 1 year 7 months 20 days |
Exercise Price (in dollars per share) | $ 0.79 | $ 0.79 |
Awards Exercisable | ||
Quantity (in shares) | 204,000 | 310,000 |
Remaining Contractual Life (Years) | 7 months 20 days | 1 year 7 months 20 days |
Exercise Price (in dollars per share) | $ 0.79 | $ 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 | 0.81 |
Grant Price High (in dollars per share) | $ 0.81 | $ 0.84 |
Awards Outstanding | ||
Quantity (in shares) | 10,400 | 290,900 |
Remaining Contractual Life (Years) | 2 months 15 days | 1 year 4 months 28 days |
Exercise Price (in dollars per share) | $ 0.81 | $ 0.83 |
Awards Exercisable | ||
Quantity (in shares) | 10,400 | 193,934 |
Remaining Contractual Life (Years) | 2 months 15 days | 1 year 4 months 28 days |
Exercise Price (in dollars per share) | $ 0.81 | $ 0.83 |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of Stock Option Activity (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Awards | ||
Outstanding, beginning of period (in shares) | 759,900 | |
Granted (in shares) | 0 | |
Exercised/Released (in shares) | (533,500) | |
Cancelled/Forfeited (in shares) | (12,000) | |
Expired (in shares) | 0 | |
Outstanding, end of period (in shares) | 214,400 | 759,900 |
Vested and unvested exercisable, end of the period (in shares) | 214,400 | |
Vested and expected to vest, end of the period (in shares) | 214,400 | |
Weighted Average Exercise Price | ||
Outstanding, beginning of period (in dollars per share) | $ 0.79 | $ 0.80 |
Granted (in dollars per share) | 0 | |
Exercised/Released (in dollars per share) | 0.81 | |
Cancelled/Forfeited (in dollars per share) | 0.79 | |
Expired (in dollars per share) | 0 | |
Outstanding, end of period (in dollars per share) | 0.79 | 0.80 |
Vested and unvested exercisable, end of the period (in dollars per share) | 0.79 | |
Vested and expected to vest, end of the period (in dollars per share) | 0.79 | |
Weighted Average Share Price on Date of Exercise | ||
Exercised/Released (in dollars per share) | 2.57 | |
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) | 0.38 | |
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 unvested 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 | 7 months 13 days | |
Vested and unvested exercisable, end of the period | 7 months 13 days | |
Vested and expected to vest, end of the period | 7 months 13 days | |
Aggregate Intrinsic Value | ||
Outstanding, beginning of period | $ 219,500 | $ 194,920 |
Granted | 0 | |
Exercised/Released | 939,335 | 19,113 |
Canceled/Forfeited | 5,380 | |
Expired | 0 | |
Outstanding, end of period | 219,500 | $ 194,920 |
Vested and unvested exercisable, end of the period | 219,500 | |
Vested and expected to vest, end of the period | $ 219,500 | |
Number of Awards | ||
Unvested Outstanding, beginning of period (in shares) | 255,966 | |
Granted (in shares) | 0 | |
Canceled/Forfeited (in shares) | (4,000) | |
Expired (in shares) | 0 | |
Vested, outstanding shares (in shares) | (251,966) | |
Unvested Outstanding, end of period (in shares) | 0 | 255,966 |
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 | $ 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 | $ 0.37 |
Weighted Average Remaining Amortization Period (Years) | ||
Unvested Outstanding, end of period | 0 years |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of Restricted Stock Activity (Details) - USD ($) | 12 Months Ended | |||
Jun. 29, 2023 | Jun. 15, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | |
Number of Awards | ||||
Cancelled/Forfeited (in shares) | (12,000) | |||
Vested and exercisable, end of the period (in shares) | 214,400 | |||
Weighted Average Share Price on Date of Exercise | ||||
Exercised/Released (in dollars per share) | $ 2.57 | |||
Weighted Average Fair Value | ||||
Cancelled/Forfeited (in dollars per share) | $ 0.37 | |||
Aggregate Intrinsic Value | ||||
Canceled/Forfeited | $ 5,380 | |||
Vested and exercisable, end of the period | $ 219,500 | |||
Number of Awards | ||||
Cancelled/Forfeited (in shares) | (12,000) | |||
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) | 341,961 | |||
Exercised/Released (in shares) | (341,961) | |||
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 Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | 0 | |||
Granted (in dollars per share) | 0 | |||
Exercised/Released (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | 0 | |||
Vested and exercisable, end of the period (in dollars per share) | 0 | |||
Vested and expected to vest, end of the period (in dollars per share) | 0 | |||
Weighted Average Share Price on Date of Exercise | ||||
Exercised/Released (in dollars per share) | $ 1.16 | |||
Weighted Average Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | 0 | $ 0 | ||
Granted (in dollars per share) | 1.16 | |||
Exercised/Released (in dollars per share) | 1.16 | |||
Outstanding, end of period (in dollars per share) | 0 | |||
Vested and exercisable, end of the period (in dollars per share) | 0 | |||
Vested and expected to vest, end of the period (in dollars 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 | 396,675 | |||
Exercised/Released | 396,675 | |||
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) | 341,961 | |||
Vested, outstanding shares (in shares) | (341,961) | |||
Unvested Outstanding, end of period (in shares) | 0 | |||
Weighted Average Exercise Price | ||||
Unvested Outstanding, beginning of period (in dollars per share) | 0 | |||
Granted (in dollars per share) | 0 | |||
Vested, outstanding shares (in dollars per share) | 0 | |||
Unvested Outstanding, end of period (in dollars per share) | 0 | |||
Weighted Average Grant Date Fair Value | ||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 0 | $ 0 | ||
Granted (in dollars per share) | 1.16 | |||
Vested, outstanding shares (in dollars per share) | 1.16 | |||
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) | 606,822 | 407,835 | ||
Granted (in shares) | 195,966 | 178,623 | 637,306 | |
Exercised/Released (in shares) | (435,319) | |||
Cancelled/Forfeited (in shares) | (3,000) | |||
Outstanding, end of period (in shares) | 606,822 | |||
Vested and exercisable, end of the period (in shares) | 0 | |||
Vested and expected to vest, end of the period (in shares) | 606,822 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | 0 | |||
Granted (in dollars per share) | 0 | |||
Exercised/Released (in dollars per share) | 0 | |||
Cancelled/Forfeited (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | 0 | |||
Vested and expected to vest, end of the period (in dollars per share) | 0 | |||
Weighted Average Share Price on Date of Exercise | ||||
Exercised/Released (in dollars per share) | $ 1.45 | |||
Weighted Average Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | 1.20 | $ 1.31 | ||
Granted (in dollars per share) | 1.18 | |||
Exercised/Released (in dollars per share) | 1.28 | |||
Cancelled/Forfeited (in dollars per share) | 1.16 | |||
Outstanding, end of period (in dollars per share) | 1.20 | |||
Vested and expected to vest, end of the period (in dollars per share) | $ 1.20 | |||
Weighted Average Remaining Contractual Life (Years) | ||||
Outstanding, end of period | 2 years 7 months 13 days | |||
Vested and expected to vest, end of the period | 2 years 7 months 13 days | |||
Aggregate Intrinsic Value | ||||
Outstanding, beginning of period | $ 432,305 | |||
Granted | 754,952 | |||
Exercised/Released | 629,866 | |||
Canceled/Forfeited | 8,490 | |||
Outstanding, end of period | 1,098,348 | |||
Vested and exercisable, end of the period | 0 | |||
Vested and expected to vest, end of the period | $ 1,098,348 | |||
Number of Awards | ||||
Unvested Outstanding, beginning of period (in shares) | 407,835 | |||
Granted (in shares) | 195,966 | 178,623 | 637,306 | |
Cancelled/Forfeited (in shares) | (3,000) | |||
Vested, outstanding shares (in shares) | (435,319) | |||
Unvested Outstanding, end of period (in shares) | 606,822 | |||
Weighted Average Exercise Price | ||||
Unvested Outstanding, beginning of period (in dollars per share) | 0 | |||
Granted (in dollars per share) | 0 | |||
Cancelled/Forfeited (in dollars per share) | 0 | |||
Vested, outstanding shares (in dollars per share) | 0 | |||
Unvested Outstanding, end of period (in dollars per share) | 0 | |||
Weighted Average Grant Date Fair Value | ||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 1.20 | $ 1.31 | ||
Granted (in dollars per share) | 1.18 | |||
Cancelled/Forfeited (in dollars per share) | 1.16 | |||
Vested, outstanding shares (in dollars per share) | 1.28 | |||
Unvested Outstanding, end of period (in dollars per share) | $ 1.20 | |||
Weighted Average Remaining Amortization Period (Years) | ||||
Unvested Outstanding, end of period | 1 year 3 months 10 days | |||
Performance Based Restricted Stock Units | ||||
Number of Awards | ||||
Outstanding, beginning of period (in shares) | 1,057,044 | 640,364 | ||
Granted (in shares) | 416,680 | |||
Exercised/Released (in shares) | 0 | |||
Cancelled/Forfeited (in shares) | 0 | |||
Expired (in shares) | 0 | |||
Outstanding, end of period (in shares) | 1,057,044 | |||
Vested and exercisable, end of the period (in shares) | 0 | |||
Vested and unvested exercisable, end of the period (in shares) | 0 | |||
Vested and expected to vest, end of the period (in shares) | 609,960 | |||
Weighted Average Exercise Price | ||||
Outstanding, beginning of period (in dollars per share) | 0 | |||
Granted (in dollars per share) | 0 | |||
Exercised/Released (in dollars per share) | 0 | |||
Cancelled/Forfeited (in dollars per share) | 0 | |||
Expired (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | 0 | |||
Vested and exercisable, end of the period (in dollars per share) | 0 | |||
Vested and unvested exercisable, end of the period (in dollars per share) | 0 | |||
Vested and expected to vest, end of the period (in dollars per share) | 0 | |||
Weighted Average Fair Value | ||||
Outstanding, beginning of period (in dollars per share) | $ 1.19 | $ 1.21 | ||
Granted (in dollars per share) | 1.16 | |||
Exercised/Released (in dollars per share) | 0 | |||
Cancelled/Forfeited (in dollars per share) | 0 | |||
Expired (in dollars per share) | 0 | |||
Outstanding, end of period (in dollars per share) | 1.19 | |||
Vested and expected to vest, end of the period (in dollars per share) | $ 1.20 | |||
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 | $ 678,786 | |||
Granted | 483,349 | |||
Exercised/Released | 0 | |||
Canceled/Forfeited | 0 | |||
Expired | 0 | |||
Outstanding, end of period | 1,913,250 | |||
Vested and exercisable, end of the period | 0 | |||
Vested and unvested exercisable, end of the period | 0 | |||
Vested and expected to vest, end of the period | $ 1,104,028 | |||
Number of Awards | ||||
Unvested Outstanding, beginning of period (in shares) | 640,364 | |||
Granted (in shares) | 416,680 | |||
Cancelled/Forfeited (in shares) | 0 | |||
Vested, outstanding shares (in shares) | 0 | |||
Expired (in shares) | 0 | |||
Unvested Outstanding, end of period (in shares) | 1,057,044 | |||
Weighted Average Exercise Price | ||||
Unvested Outstanding, beginning of period (in dollars per share) | 0 | |||
Granted (in dollars per share) | 0 | |||
Cancelled/Forfeited (in dollars per share) | 0 | |||
Vested, outstanding shares (in dollars per share) | 0 | |||
Unvested Outstanding, end of period (in dollars per share) | 0 | |||
Weighted Average Grant Date Fair Value | ||||
Unvested Outstanding, beginning of period (in dollars per share) | $ 1.19 | $ 1.21 | ||
Granted (in dollars per share) | 1.16 | |||
Cancelled/Forfeited (in dollars per share) | 0 | |||
Vested, outstanding shares (in dollars per share) | 0 | |||
Unvested Outstanding, end of period (in dollars per share) | $ 1.19 | |||
Weighted Average Remaining Amortization Period (Years) | ||||
Unvested Outstanding, end of period | 1 year 7 months 6 days |
PROVISION FOR INCOME TAXES - Na
PROVISION FOR INCOME TAXES - Narrative (Details) | 12 Months Ended | ||||
Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 CAD ($) | Dec. 31, 2020 USD ($) | |
Income Tax Contingency [Line Items] | |||||
Accrued interest and penalties | $ 0 | $ 0 | |||
Operating loss carryforwards, valuation allowance, percentage | 100% | ||||
Net deferred tax asset | $ 496,785 | 0 | |||
Deferred tax benefit | 988,106 | (673,990) | |||
Tax credits | 740 | 118,035 | $ 416,560 | ||
Proceeds from tax refunds | 416,560 | ||||
Other comprehensive income, tax benefit (expense) | 54,589 | (167,868) | |||
Subsidiaries | |||||
Income Tax Contingency [Line Items] | |||||
Payroll tax credit | 1,500,000 | ||||
Payroll tax credit, offset | 204,000 | ||||
Decrease in payroll tax expense | 761,132 | ||||
Remaining credit received | 761,132 | ||||
Payroll tax credit, interest income recognized | 55,499 | ||||
Subsidiaries | Foreign Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards | $ 0 | $ 2,622,292 | |||
Subsidiaries | Domestic Tax Authority | |||||
Income Tax Contingency [Line Items] | |||||
Operating loss carryforwards | 0 | $ 0 | |||
Revision of Prior Period, Adjustment | |||||
Income Tax Contingency [Line Items] | |||||
Deferred tax benefit | $ 828,098 |
PROVISION FOR INCOME TAXES - Sc
PROVISION FOR INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Current | ||
U.S. Federal | $ 2,164,032 | $ 887,732 |
State and local | 334,390 | 176,700 |
Foreign | 159,381 | 0 |
Total Current | 2,657,803 | 1,064,432 |
Deferred | ||
U.S. Federal | (900,847) | 435,603 |
State and local | (139,385) | 85,670 |
Foreign | 52,126 | 152,717 |
Total Deferred | (988,106) | 673,990 |
Total Provision for Income Taxes | $ 1,669,697 | $ 1,738,422 |
PROVISION FOR INCOME TAXES - _2
PROVISION FOR INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | ||
U.S. Federal statutory tax rate | 21% | 21% |
State and local statutory tax rate, net of federal effect | 3% | 4% |
Permanent Items | 0.30% | (0.20%) |
Change in rate | (0.10%) | 0% |
Unrealized gains and losses on investments | (0.40%) | (2.60%) |
Adjustments to deferred tax balances | (7.80%) | 0% |
Release of valuation allowance | (3.60%) | 0% |
Foreign tax rate difference | (0.10%) | 3.30% |
Other | 1.10% | 5% |
Effective tax rate | 13.40% | 30.50% |
PROVISION FOR INCOME TAXES - _3
PROVISION FOR INCOME TAXES - Schedule of Components of Deferred Tax Assets and Liabilities (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Domestic Tax Authority | ||
Net Deferred Tax Asset / (Liability) - US | ||
Stock compensation | $ 123,592 | |
Stock compensation | $ (349,260) | |
Bad debt | 64,357 | 37,814 |
Inventory reserve | 92,058 | 48,572 |
Amortization | 114,582 | 101,745 |
Unrealized loss on investments | 100,236 | 154,987 |
UNICAP | 289,619 | 75,110 |
Goodwill | (260,701) | (219,252) |
Depreciation | (8,580) | (338,574) |
Other | (18,378) | 0 |
Net Deferred Tax Asset / (Liability) | 496,785 | |
Net Deferred Tax Asset / (Liability) | (488,858) | |
Foreign Tax Authority | ||
Net Deferred Tax Asset / (Liability) - US | ||
Depreciation | (89,558) | 0 |
Net Deferred Tax Asset / (Liability) | 0 | |
Net Deferred Tax Asset / (Liability) | (52,621) | |
Net Deferred Tax Asset / (Liability) - Canada | ||
Reserves | $ 36,937 | $ 0 |
BASIC AND DILUTED EARNINGS PE_3
BASIC AND DILUTED EARNINGS PER SHARE (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Income (Numerator) | ||
Net income (loss) available to common stockholders | $ 10,776,714 | $ 3,947,760 |
Stock options & RSUs | 0 | 0 |
Net income (loss) available to common stockholders + assumed conversions, diluted | $ 10,776,714 | $ 3,947,760 |
Weighted Average Shares (Denominator) | ||
Net income (loss) available to common stockholders (shares) | 47,355,978 | 47,161,101 |
Stock options & RSUs (shares) | 1,771,580 | 1,286,241 |
Net income (loss) available to common stockholders + assumed conversions (shares) | 49,127,558 | 48,447,342 |
Per-Share Amount | ||
Net income (loss) available to common stockholders (in dollars per share) | $ 0.23 | $ 0.08 |
Net income (loss) available to common stockholders + assumed conversions (in dollars per share) | $ 0.22 | $ 0.08 |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | $ 58,208,060 | $ 45,936,643 |
Net Income | 10,776,714 | 3,947,760 |
Long-lived assets | 11,215,279 | 10,544,203 |
Canada | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 15,692,080 | 12,138,605 |
Net Income | 1,934,718 | 754,004 |
Long-lived assets | 5,024,824 | 5,067,965 |
United States | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Revenues | 42,515,980 | 33,798,038 |
Net Income | 8,841,996 | 3,193,756 |
Long-lived assets | $ 6,190,455 | $ 5,476,238 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Narrative (Details) | 1 Months Ended | 12 Months Ended | ||
Mar. 31, 2014 CAD ($) | Mar. 31, 2014 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Consulting agreement term | 10 years | 10 years | ||
Consulting agreement, quarterly payments | $ 100,000 | $ 75,473 | ||
Rent expense | $ 75,603 | $ 79,378 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Future Minimum Lease Payments for Operating Leases (Details) | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2024 | $ 95,210 |
2025 | 86,736 |
2026 | 89,335 |
2027 | 84,139 |
2028 | 0 |
Thereafter | 0 |
Total | $ 355,420 |
GOVERNMENT ASSISTANCE (Details)
GOVERNMENT ASSISTANCE (Details) | 12 Months Ended | |||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 CAD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2022 CAD ($) | |
Government Assistance [Line Items] | ||||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Net income | Net income | ||
Labor expense, offset, various Canada grant programs | $ 18,231 | $ 24,659 | ||
Employee Retention Credit, Reduction In Payroll Tax Expense | ||||
Government Assistance [Line Items] | ||||
Government assistance, amount | $ 761,132 | $ 761,132 | ||
Employee Retention Credit, Interest Income | ||||
Government Assistance [Line Items] | ||||
Government assistance, amount | 55,499 | |||
The National Research Council Of Canada Industrial Research Assistance Program | ||||
Government Assistance [Line Items] | ||||
Government assistance, amount | $ 77,393 | $ 104,425 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event | Mar. 06, 2024 shares |
2023 EIP | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 225,698 |
2021 LTIP | |
Subsequent Event [Line Items] | |
Shares issued (in shares) | 152,353 |