Sterling Consolidated (STCC) 10-Q 21 May 15 2015 Q1 Quarterly report Financial data

Document_and_Entity_Informatio

Document and Entity Information	3 Months Ended
	Mar. 31, 2015	20-May-15
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	FALSE
Document Period End Date	31-Mar-15
Entity Registrant Name	STERLING CONSOLIDATED Corp
Entity Central Index Key	1555972
Entity Current Reporting Status	No
Current Fiscal Year End Date	-19
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2015
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		40,715,540

CONSOLIDATED_BALANCE_SHEETS

CONSOLIDATED BALANCE SHEETS (USD $)	Mar. 31, 2015	Dec. 31, 2014
Current assets
Cash and cash equivalents	$10,587	$13,458
Account receivable, net	975,320	979,421
Inventory, net of reserve	2,794,549	2,889,107
Notes receivable and other current assets	117,606	71,786
Total current assets	3,898,062	3,953,772
Property and equipment, net	2,548,146	2,581,874
Goodwill and other intangibles	271,699	276,549
Deferred tax asset	69,341	69,341
Total assets	6,787,248	6,881,536
Current liabilities
Accounts payable and accrued expenses	1,112,446	1,008,093
Bank line of credit	1,190,272	1,190,272
Other liabilities	123,403	269,255
Current notes payable, related parties	51,012	52,702
Current portion of long-term notes payable	160,090	134,451
Total current liabilities	2,637,223	2,654,773
Other liabilities
Long-term notes payable, related parties	1,652,699	1,652,699
Long-term notes payable	1,150,144	1,185,772
Total other liabilities	2,802,843	2,838,471
Total liabilities	5,440,066	5,493,244
Stockholders' equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued
Common stock, $0.001 par value; 200,000,000 shares authorized, 40,715,540 and 40,517,540 shares issued and outstanding as of March 31, 2015 and December 31, 2014, respectively	40,716	40,518
Additional paid-in capital	1,446,237	1,439,734
Accumulated other comprehensive loss	-11,800	-11,800
Accumulated deficit	-127,971	-80,160
Total stockholders' equity	1,347,182	1,388,292
Total liabilities and stockholders' equity	$6,787,248	$6,881,536

CONSOLIDATED_BALANCE_SHEETS_Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)	Mar. 31, 2015	Dec. 31, 2014
CONSOLIDATED BALANCE SHEETS [Abstract]
Preferred stock, par value per share	$0.00	$0.00
Preferred stock, shares authorized	10,000,000	10,000,000
Preferred stock, shares issued	0	0
Common stock, par value per share	$0.00	$0.00
Common stock, shares authorized	200,000,000	200,000,000
Common stock, shares issued	40,715,540	40,517,540
Common stock, shares outstanding	40,715,540	40,517,540

CONSOLIDATED_STATEMENTS_OF_OPE

CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Revenues
O-rings and rubber product sales	$1,701,938	$1,712,834
Freight services	35,728	26,315
Total revenues	1,737,666	1,739,149
Cost of sales
Cost of goods	1,215,395	1,077,980
Cost of services	47,650	56,326
Total cost of sales	1,263,045	1,134,306
Gross profit	474,621	604,843
Operating expenses
Sales and marketing	64,999	51,535
General and administrative	438,061	395,900
Total operating expenses	503,060	447,435
Operating income (loss)	-28,439	157,408
Other income and expense
Other income (expense)	-18,928	20,663
Interest expense	-37,932	-34,967
Total other expense	-56,860	-14,304
Income (loss) before provision for income taxes	-85,299	143,104
Provision (benefit) for income taxes	-37,488	57,242
Net income (loss)	-47,811	85,862
Other comprehensive income
Unrealized gain/(loss) on interest rate swap contract
Comprehensive income	($47,811)	$85,862
Net income per share of common stock:
Basic and diluted	$0	$0
Weighted average number of shares outstanding
Basic and diluted	40,519,740	37,824,229

CONSOLIDATED_STATEMENTS_OF_CAS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
Cash flows from operating activities
Net Income	($47,811)	$85,862
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation	33,728	27,106
Amortization	4,850
Accrued Interest		12,846
Changes in operating assets and liabilities:
Accounts receivable	4,101	-292,367
Inventory	94,558	317,234
Deferred tax asset		57,242
Other assets	-45,820	-833
Accounts payable and accrued interest payable	104,353	-366,852
Other liabilities	-145,852	5,730
Net cash provided by (used in) operating activities	2,107	-154,032
Cash flows from investing activities
Purchase of fixed assets		-83,440
Net cash used in investing activities		-83,440
Cash flows from financing activities
Net borrowings/(paydown) of bank line of credit		33,167
Payments on notes payable	-9,989	-9,041
Net loan (paid) - related party	-1,690	-9,949
Net proceeds(cost) of common stock after issuance costs	6,701	-3,200
Net cash provided by (used in) financing activities	-4,978	10,977
Net change in cash and cash equivalent	-2,871	-226,495
Cash and cash equivalent at the beginning of period	13,458	543,945
Cash and cash equivalent at the end of period	10,587	317,450
Supplemental disclosures of cash flow Information:
Cash paid for interest		22,125
Cash paid for taxes	$750

BASIS_OF_PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2015
BASIS OF PRESENTATION [Abstract]
BASIS OF PRESENTATION	NOTE 1 – BASIS OF PRESENTATION
	The accompanying interim financial statements have been prepared by the Company without audit.  In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly the financial position, results of operations, and cash flows as of and for the period ended, and for all periods presented herein, have been made.
	Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been condensed or omitted.  It is suggested that these condensed financial statements be read in conjunction with the financial statements and notes thereto included in the Company's December 31, 2014 audited financial statements.  The results of operations for the periods ended March 31, 2015 and March 31, 2014 are not necessarily indicative of the operating results for the full years.

SIGNIFICANT_ACCOUNTING_POLICIE

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
SIGNIFICANT ACCOUNTING POLICIES	NOTE 2 – SIGNIFICANT ACCOUNTING POLICIES
	The accounting policies applied by the Company in these condensed interim financial statements are the same as those applied by the Company in its audited consolidated financial statements as at and for the year ended December 31, 2014.
	There have been no changes in the Company's significant accounting policies for the periods ended March 31, 2015 as compared to those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2014.
	Use of Estimates
	The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, useful lives of intangible assets and property and equipment, inventory valuations, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
	Inventories
	Inventories, which are comprised of finished goods, are stated at the lower of cost (based on the first in, first out method) or market. Cost does not include shipping and handling fees, which are charged directly to income. The Company provides for estimated losses from obsolete or slow-moving inventories, which is approximately 4% of the total inventory, and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based upon inventory on hand, historical sales activity, industry trends, the business environment, and the expected net realizable value. The net realizable value is determined based upon current awareness of market prices.
	Revenue Recognition
	The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition” which contains Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements' and No. 104, “Revenue Recognition”. In the case of Sterling, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, shipment of the product has occurred, price is fixed or determinable and collectability of the resulting receivable is reasonably assured. For provision of third-party freight services provided by Integrity, revenue is recognized on a gross basis in accordance with ASC 605-45 " Revenue Recognition: Principal Agent Considerations " since Integrity is the primary obligor in its shipping arrangements. Revenue is generally recognized when the contracted goods arrive at their destination point. When revenues and expenses straddle a period end due to the time between shipment and delivery, Integrity allocates revenue between reporting periods based on relative transit time in each period with expenses recognized as incurred. Cost of goods is comprised of sale of o-rings and related rubber products. Freight services is comprised of freight forwarding and related services earned by Integrity and Rental services is comprised of revenue from rental of commercial space to third parties.
	Basic and Diluted Earnings per Share
	The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings (loss) per share includes common stock equivalents outstanding at the balance sheet date. The Company had no stock options and warrants that would have been included in the fully diluted earnings per share for the three month periods ended March 31, 2015 and 2014, respectively.

STOCK_ISSUANCE

STOCK ISSUANCE	3 Months Ended
	Mar. 31, 2015
STOCK ISSUANCE [Abstract]
STOCK ISSUANCE	NOTE 3- STOCK ISSUANCE
	In the first quarter of 2015, the Company issued 198,000 shares of stock under its equity credit facility for total proceeds (net of issuance costs) of $6,701.

SUBSEQUENT_EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2015
SUBSEQUENT EVENTS [Abstract]
SUBSEQUENT EVENTS	NOTE 4 – SUBSEQUENT EVENTS
	The Company reviewed any significant transactions that would qualify for subsequent event reporting up through May 20, 2015. None were noted.

SIGNIFICANT_ACCOUNTING_POLICIE1

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Use of Estimates	Use of Estimates
	The preparation of consolidated financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported and disclosed in the financial statements and the accompanying notes. Actual results could differ materially from these estimates. On an ongoing basis, we evaluate our estimates, including those related to the accounts receivable and sales allowances, fair values of financial instruments, useful lives of intangible assets and property and equipment, inventory valuations, income taxes, and contingent liabilities, among others. We base our estimates on historical experience and on various other assumptions that are believed to be reasonable, the results of which form the basis for making judgments about the carrying values of assets and liabilities.
Inventories	Inventories
	Inventories, which are comprised of finished goods, are stated at the lower of cost (based on the first in, first out method) or market. Cost does not include shipping and handling fees, which are charged directly to income. The Company provides for estimated losses from obsolete or slow-moving inventories, which is approximately 4% of the total inventory, and writes down the cost of inventory at the time such determinations are made. Reserves are estimated based upon inventory on hand, historical sales activity, industry trends, the business environment, and the expected net realizable value. The net realizable value is determined based upon current awareness of market prices.
Revenue Recognition	Revenue Recognition
	The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition” which contains Securities and Exchange Commission Staff Accounting Bulletin No. 101, “Revenue Recognition in Financial Statements' and No. 104, “Revenue Recognition”. In the case of Sterling, revenue is recognized only when the price is fixed or determinable, persuasive evidence of an arrangement exists, shipment of the product has occurred, price is fixed or determinable and collectability of the resulting receivable is reasonably assured. For provision of third-party freight services provided by Integrity, revenue is recognized on a gross basis in accordance with ASC 605-45 " Revenue Recognition: Principal Agent Considerations " since Integrity is the primary obligor in its shipping arrangements. Revenue is generally recognized when the contracted goods arrive at their destination point. When revenues and expenses straddle a period end due to the time between shipment and delivery, Integrity allocates revenue between reporting periods based on relative transit time in each period with expenses recognized as incurred. Cost of goods is comprised of sale of o-rings and related rubber products. Freight services is comprised of freight forwarding and related services earned by Integrity and Rental services is comprised of revenue from rental of commercial space to third parties.
Basic and Diluted Earnings per Share	Basic and Diluted Earnings per Share
	The computation of basic earnings (loss) per share of common stock is based on the weighted average number of shares outstanding during the periods presented. The computation of fully diluted earnings (loss) per share includes common stock equivalents outstanding at the balance sheet date. The Company had no stock options and warrants that would have been included in the fully diluted earnings per share for the three month periods ended March 31, 2015 and 2014, respectively.

SIGNIFICANT_ACCOUNTING_POLICIE2

SIGNIFICANT ACCOUNTING POLICIES (Details)	3 Months Ended
	Mar. 31, 2015
SIGNIFICANT ACCOUNTING POLICIES [Abstract]
Estimated Losses Of Obsolete Or Slow Moving Inventory Percent	4.00%

STOCK_ISSUANCE_Details

STOCK ISSUANCE (Details) (USD $)	3 Months Ended
	Mar. 31, 2015	Mar. 31, 2014
STOCK ISSUANCE [Abstract]
Common stock issued under equity credit facility, shares	198,000
Proceeds from issuance of common stock (net of issuance costs)	$6,701	($3,200)