Sterling Consolidated (STCC) 10-Q 2 Dec 16 2016 Q1 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	3 Months Ended
	Mar. 31, 2016	Dec. 02, 2016
Document Information [Line Items]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1
Entity Registrant Name	STERLING CONSOLIDATED Corp
Entity Central Index Key	1,555,972
Current Fiscal Year End Date	--12-31
Entity Filer Category	Smaller Reporting Company
Trading Symbol	STCC
Entity Common Stock, Shares Outstanding		40,715,540

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($)	Mar. 31, 2016	Dec. 31, 2015
Current assets
Cash and cash equivalents	$ 8,218	$ 31,429
Account receivable, net	794,307	732,972
Inventory, net	2,806,983	2,796,796
Notes receivable and other current assets	35,326	20,525
Total current assets	3,644,834	3,581,722
Property and equipment, net	1,875,409	2,527,227
Goodwill and other intangibles, net	120,466	120,466
Deferred tax asset	162,439	162,439
Total assets	5,803,148	6,391,854
Current liabilities
Accounts payable and accrued expenses	1,206,188	1,291,227
Bank line of credit	849,316	1,245,316
Other liabilities	22,697	66,665
Derivative liability	33,992	24,560
Current portion of long-term notes payable	66,421	61,416
Total current liabilities	2,178,614	2,689,184
Other liabilities
Long-term notes payable, related parties	1,730,954	1,720,949
Long-term notes payable, net of current portion	1,113,037	1,127,261
Total other liabilities	2,843,991	2,848,210
Total liabilities	5,022,605	5,537,394
Stockholders' equity
Preferred stock, $0.001 par value; 10,000,000 shares authorized, no shares issued	0	0
Common stock, $0.001 par value; 200,000,000 shares authorized, 40,715,540 and 40,715,540 shares issued and outstanding as of March 31, 2016 and December 31, 2015, respectively	40,716	40,716
Additional paid-in capital	1,446,278	1,446,278
Accumulated deficit	(706,451)	(632,534)
Total stockholders' equity	780,543	854,460
Total liabilities and stockholders' equity	$ 5,803,148	$ 6,391,854

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Preferred Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Preferred Stock, Shares Authorized	10,000,000	10,000,000
Preferred Stock, Shares Issued	0	0
Common Stock, Par or Stated Value Per Share	$ 0.001	$ 0.001
Common Stock, Shares Authorized	200,000,000	200,000,000
Common Stock, Shares, Issued	40,715,540	40,715,540
Common Stock, Shares, Outstanding	40,715,540	40,715,540

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Revenues
O-rings and rubber product sales	$ 1,453,188	$ 1,701,938
Freight services	28,923	35,728
Total revenues	1,482,111	1,737,666
Cost of sales
Cost of goods	1,049,694	1,215,395
Cost of services	51,962	47,650
Total cost of sales	1,101,656	1,263,045
Gross profit	380,455	474,621
Operating expenses
Sales and marketing	47,231	64,999
General and administrative	385,132	438,061
Total operating expenses	432,363	503,060
Operating income (loss)	(51,908)	(28,439)
Other income and expense
Other income (expense)	(223)	(18,928)
Loss on sale of real estate	(39,910)	0
Gain/(loss) on swap	(9,432)	(9,044)
Interest expense	(38,389)	(37,932)
Total other expense	(87,954)	(65,904)
Loss before provision for income taxes	(139,862)	(94,343)
Provision (benefit) for income taxes	(65,945)	(37,488)
Net loss	$ (73,917)	$ (56,855)
Net loss per share of common stock:
Basic and diluted	$ 0	$ 0
Weighted average number of shares outstanding
Basic and diluted	40,715,540	40,519,740

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Cash flows from operating activities
Net loss	$ (73,917)	$ (56,855)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	34,754	38,578
Loss on sale of building	39,910	0
Bad debt expense	12,911	0
Loss on swap	9,432	9,044
Changes in operating assets and liabilities:
Accrued interest related party	10,005	0
Accounts receivable	(74,246)	4,101
Inventory	(10,187)	94,558
Other assets	25	(45,820)
Accounts payable and accrued interest payable	(85,038)	104,353
Other liabilities	(43,968)	(145,852)
Net cash provided by (used in) operating activities	(180,319)	2,107
Cash flows from investing activities
Sale of building	562,327	0
Net cash provided by investing activities	562,327	0
Cash flows from financing activities
Net paydown of bank line of credit	(396,000)	0
Payments on notes payable	(9,219)	(9,989)
Net loan (paid) - related party	0	(1,690)
Net proceeds of common stock after issuance costs	0	6,701
Net cash used in financing activities	(405,219)	(4,978)
Net change in cash and cash equivalent	(23,211)	(2,871)
Cash and cash equivalents at the beginning of period	31,429	13,458
Cash and cash equivalents at the end of period	8,218	10,587
Supplemental disclosures of cash flow Information:
Cash paid for interest	38,389	22,125
Cash paid for taxes	$ 0	$ 750

BASIS OF PRESENTATION

BASIS OF PRESENTATION	3 Months Ended
	Mar. 31, 2016
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	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, 2015 audited financial statements. The results of operations for the periods ended March 31, 2016 and March 31, 2015 are not necessarily indicative of the operating results for the full years.

SIGNIFICANT ACCOUNTING POLICIES

SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Significant Accounting Policies [Text Block]	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, 2015. There have been no changes in the Company's significant accounting policies for the periods ended March 31, 2016 as compared to those disclosed in the Company's Annual Report on Form 10-K for the year ended December 31, 2015. 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 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 The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition” 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, 2016 and 2015, respectively.

SALE OF REAL ESTATE

SALE OF REAL ESTATE	3 Months Ended
	Mar. 31, 2016
Real Estate [Abstract]
Real Estate Disclosure [Text Block]	NOTE 3 – SALE OF REAL ESTATE In March of 2016, the Company sold its commercial building in Cliffwood Beach, New Jersey. The sale price was $ 625,000 39,910 562,327 20,000 14,826

RESTATEMENT

RESTATEMENT	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Accounting Changes and Error Corrections [Text Block]	NOTE 4 – RESTATEMENT Income Statement Original As Restated Gain/(loss) on swap $ - $ (9,044) Net Income (Loss) $ (47,811) $ (56,855) Statement of Cash Flows Net Income (Loss) $ (47,811) $ (56,855) Loss on swap/derivative $ - $ (9,044)

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
Subsequent Events [Abstract]
Subsequent Events [Text Block]	NOTE 5 – SUBSEQUENT EVENTS The Company reviewed any significant transactions that would qualify for subsequent event reporting up through December 2, 2016. None were noted.

SIGNIFICANT ACCOUNTING POLICI11

SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
Accounting Policies [Abstract]
Use of Estimates, Policy [Policy Text Block]	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
Inventory, Policy [Policy Text Block]	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
Revenue Recognition, Policy [Policy Text Block]	Revenue Recognition The Company recognizes revenue based on Account Standards Codification (“ASC”) 605 “Revenue Recognition”
Earnings Per Share, Policy [Policy Text Block]	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, 2016 and 2015, respectively.

RESTATEMENT (Tables)

RESTATEMENT (Tables)	3 Months Ended
	Mar. 31, 2016
Accounting Changes and Error Corrections [Abstract]
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block]	The Company restated its March 31, 2015 Income Statement and Statement of Cash Flows to reflect the unrealized gain or loss on its swap used to fix its floating rate mortgage instrument. The effects of the changes on the March 31, 2015 financial statements can be noted as follows: Income Statement Original As Restated Gain/(loss) on swap $ - $ (9,044) Net Income (Loss) $ (47,811) $ (56,855) Statement of Cash Flows Net Income (Loss) $ (47,811) $ (56,855) Loss on swap/derivative $ - $ (9,044)

SIGNIFICANT ACCOUNTING POLICI13

SIGNIFICANT ACCOUNTING POLICIES (Details Textual)	3 Months Ended
	Mar. 31, 2016
Summary Of Significant Accounting Policies [Line Items]
Estimated Losses Of Obsolete Or Slow Moving Inventory Percent	4.00%

SALE OF REAL ESTATE (Details Te

SALE OF REAL ESTATE (Details Textual) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Real Estate [Line Items]
Sale Price Of Real Estate Property	$ 625,000
Return Of Escrow Deposits	14,826
Gain (Loss) on Sale of Properties	(39,910)	$ 0
Proceeds from Sale of Buildings	562,327	$ 0
Escrow Deposits Related to Property Sales	$ 20,000

RESTATEMENT (Details)

RESTATEMENT (Details) - USD ($)	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Income Statement
Gain/(loss) on swap	$ (9,432)	$ (9,044)
Net loss	(73,917)	(56,855)
Statement of Cash Flows
Net loss	(73,917)	(56,855)
Gain/(loss) on swap	(9,432)	$ (9,044)
Scenario, Previously Reported [Member]
Income Statement
Gain/(loss) on swap	0
Net loss	(47,811)
Statement of Cash Flows
Net loss	(47,811)
Gain/(loss) on swap	0
Restatement Adjustment [Member]
Income Statement
Gain/(loss) on swap	(9,044)
Net loss	(56,855)
Statement of Cash Flows
Net loss	(56,855)
Gain/(loss) on swap	$ (9,044)