Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended |
Apr. 30, 2015 | |
Document and Entity Information [Abstract] | |
Entity Registrant Name | CHAMPION INDUSTRIES INC |
Entity Central Index Key | 19149 |
Current Fiscal Year End Date | -21 |
Entity Well-known Seasoned Issuer | No |
Entity Voluntary Filers | No |
Entity Current Reporting Status | Yes |
Entity Filer Category | Smaller Reporting Company |
Entity Common Stock, Shares Outstanding | 11,299,528 |
Document Fiscal Year Focus | 2015 |
Document Fiscal Period Focus | Q2 |
Document Type | 10-Q |
Amendment Flag | FALSE |
Document Period End Date | 30-Apr-15 |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Current assets: | ||
Cash and cash equivalents | $717,363 | $818,438 |
Accounts receivable, net of allowance of $533,000 and $688,000 | 9,912,624 | 9,512,731 |
Inventories | 4,242,805 | 3,969,992 |
Other current assets | 472,785 | 226,307 |
Assets held for sale | 256,832 | 256,832 |
Total current assets | 15,602,409 | 14,784,300 |
Property and equipment, at cost: | ||
Land | 1,254,195 | 1,254,195 |
Buildings and improvements | 4,653,401 | 4,923,113 |
Machinery and equipment | 33,388,304 | 33,297,081 |
Equipment under capital lease | 72,528 | 72,528 |
Furniture and fixtures | 3,707,516 | 3,639,966 |
Vehicles | 2,595,345 | 2,488,981 |
Property and equipment, gross | 45,671,289 | 45,675,864 |
Less accumulated depreciation | -39,308,106 | -38,991,652 |
Property and equipment, net | 6,363,183 | 6,684,212 |
Goodwill | 1,230,485 | 1,230,485 |
Deferred financing costs | 13,030 | 69,644 |
Other intangibles, net of accumulated amortization | 1,118,894 | 1,179,943 |
Other assets | 59,809 | 59,809 |
Total noncurrent assets | 2,422,218 | 2,539,881 |
Total assets | 24,387,810 | 24,008,393 |
Current liabilities: | ||
Accounts payable | 5,536,131 | 4,518,634 |
Accrued payroll and commissions | 718,864 | 583,529 |
Taxes accrued and withheld | 684,352 | 666,166 |
Accrued expenses | 1,686,611 | 1,553,978 |
Debt discount (Note 5) | 0 | -138,520 |
Notes payable (Note 5) | 1,850,280 | 10,947,218 |
Notes payable - related party (Note 5) | 2,500,000 | 2,500,000 |
Capital lease obligations (Note 5) | 15,385 | 14,931 |
Total current liabilities | 12,991,623 | 20,645,936 |
Long-term debt, net of current portion: | ||
Notes payable (Note 5) | 8,590,149 | 128,690 |
Capital lease obligations (Note 5) | 20,573 | 28,381 |
Total liabilities | 21,602,345 | 20,803,007 |
Shareholders' equity: | ||
Additional paid-in capital | 24,279,179 | 24,279,179 |
Retained deficit | -32,793,242 | -32,373,321 |
Total shareholders' equity | 2,785,465 | 3,205,386 |
Total liabilities and shareholders' equity | 24,387,810 | 24,008,393 |
Class A Voting Shares [Member] | ||
Shareholders' equity: | ||
Common stock | $11,299,528 | $11,299,528 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Current assets: | ||
Accounts receivable, allowance | $533,000 | $688,000 |
Shareholders' equity: | ||
Common stock, shares outstanding (in shares) | 11,299,528 | |
Class A voting shares [Member] | ||
Shareholders' equity: | ||
Common stock, par value (in dollars per share) | $1 | $1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 11,299,528 | 11,299,528 |
Common stock, shares outstanding (in shares) | 11,299,528 | 11,299,528 |
Consolidated_Statements_of_Ope
Consolidated Statements of Operations (Unaudited) (USD $) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Revenues: | ||||
Printing | $9,119,073 | $9,667,563 | $18,507,595 | $19,026,172 |
Office products and office furniture | 7,170,035 | 5,364,717 | 12,581,773 | 11,428,807 |
Total revenues | 16,289,108 | 15,032,280 | 31,089,368 | 30,454,979 |
Cost of sales: | ||||
Printing | 6,710,558 | 7,151,120 | 13,807,063 | 14,377,730 |
Office products and office furniture | 5,400,916 | 3,974,004 | 9,355,688 | 8,409,771 |
Total cost of sales | 12,111,474 | 11,125,124 | 23,162,751 | 22,787,501 |
Gross profit | 4,177,634 | 3,907,156 | 7,926,617 | 7,667,478 |
Selling, general and administrative expenses | 3,839,236 | 4,085,604 | 7,792,159 | 8,206,078 |
Income (loss) from operations | 338,398 | -178,448 | 134,458 | -538,600 |
Other income (expenses): | ||||
Interest expense - related party | -20,087 | -20,087 | -40,851 | -40,851 |
Interest expense | -206,076 | -256,604 | -470,053 | -520,365 |
Other | -64,338 | 206,644 | -43,475 | 221,138 |
Total other income (expenses) | -290,501 | -70,047 | -554,379 | -340,078 |
Income (loss) before income taxes | 47,897 | -248,495 | -419,921 | -878,678 |
Income tax expense | 0 | 0 | 0 | 0 |
Net income (loss) | $47,897 | ($248,495) | ($419,921) | ($878,678) |
Income (loss) per share: | ||||
Basic and Diluted income (loss) per common share (in dollars per share) | $0 | ($0.02) | ($0.04) | ($0.08) |
Weighted average shares outstanding: | ||||
Basic and Diluted (in shares) | 11,300,000 | 11,300,000 | 11,300,000 | 11,300,000 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 6 Months Ended | |
Apr. 30, 2015 | Apr. 30, 2014 | |
Cash flows from operating activities: | ||
Net (loss) | ($419,921) | ($878,678) |
Adjustments to reconcile net (loss) from continuing operations to cash provided by (used in) operating activities: | ||
Depreciation and amortization | 817,047 | 1,034,296 |
Loss (gain) on sale/disposal of assets | 66,278 | -214,551 |
Allowance for doubtful accounts | 3,167 | 35,594 |
Deferred financing costs / debt discount | 182,478 | 259,097 |
Changes in assets and liabilities: | ||
Accounts receivable | -403,061 | -37,732 |
Inventories | -272,813 | 272,169 |
Other current assets | -246,478 | 85,280 |
Accounts payable | 1,017,497 | -1,254,871 |
Accrued payroll and commissions | 135,335 | -205,223 |
Taxes accrued and withheld | 18,186 | -23,471 |
Accrued expenses | 132,633 | -117,781 |
Other liabilities | 0 | -150 |
Net cash provided by (used in) operating activities continuing operations | 1,030,348 | -1,046,021 |
Net cash provided by operating activities discontinued operations | 0 | 66,047 |
Net cash provided by operating activities | 1,030,348 | -979,974 |
Cash flows from investing activities: | ||
Purchase of property and equipment | -560,004 | -299,959 |
Proceeds from sale of fixed assets | 58,758 | 454,829 |
Change in other assets | 12,656 | -8,643 |
Net cash (used in) provided by investing activities | -488,590 | 146,227 |
Cash flows from financing activities: | ||
Proceeds from term debt | 1,151,685 | 254,882 |
Principal payments on term debt | -1,794,518 | -514,601 |
Net cash used in financing activities | -642,833 | -259,719 |
Net decrease in cash and cash equivalents | -101,075 | -1,093,466 |
Cash and cash equivalents at beginning of period | 818,438 | 1,428,542 |
Cash and cash equivalents at end of period | $717,363 | $335,076 |
Basis_of_Presentation_Business
Basis of Presentation, Business Operations and Recent Accounting Pronouncements | 6 Months Ended |
Apr. 30, 2015 | |
Basis of Presentation, Business Operations and Recent Accounting Pronouncements [Abstract] | |
Basis of Presentation, Business Operations and Recent Accounting Pronouncements | Note 1. Basis of Presentation, Business Operations and Recent Accounting Pronouncements |
The foregoing financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial reporting. The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. In the opinion of management, the financial information reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair presentation of financial position, results of operations and cash flows in conformity with GAAP. These interim financial statements should be read in conjunction with the consolidated financial statements for the year ended October 31, 2014, and related notes thereto contained in Champion Industries, Inc.’s Form 10-K filed January 29, 2015. The accompanying interim financial information is unaudited. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. The balance sheet information as of October 31, 2014 was derived from our audited financial statements. | |
Reclassifications and Revisions: Certain prior-year amounts have been reclassified to conform to the current year financial statement presentation. | |
Newly Issued Accounting Standards | |
Effective July 1, 2009, changes to the ASC are communicated through an ASU. As of April 30, 2015, the FASB has issued ASU’s 2009-01 through 2015-06. The Company reviewed each ASU and determined that they will not have a material impact on the Company’s financial position, results of operations or cash flows, other than related disclosures to the extent applicable. | |
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items. The Company adopted ASU 2015-01 in December, 2015. This amendment did not have a material impact on the Company's financial position, results of operation, or cash flows, but will have an impact on related presentation and disclosure to the extent applicable. |
Earnings_per_Share
Earnings per Share | 6 Months Ended |
Apr. 30, 2015 | |
Earnings per Share [Abstract] | |
Earnings per Share | Note 2. Earnings per Share |
Basic earnings per share is computed by dividing net income by the weighted average shares of common stock outstanding for the period and excludes any dilutive effects of stock options and warrants. Diluted earnings per share is computed by dividing net income by the weighted average shares of common stock outstanding for the period plus the shares that would be outstanding assuming the exercise of dilutive stock options and warrants using the treasury stock method. There was no dilutive effect for the three and six months ended April 30, 2015 and 2014. |
Accounts_Receivable_Allowance_
Accounts Receivable, Allowance for Doubtful Accounts and Revenue Recognition | 6 Months Ended |
Apr. 30, 2015 | |
Accounts Receivable, Allowance for Doubtful Accounts and Revenue Recognition [Abstract] | |
Accounts Receivable, Allowance for Doubtful Accounts and Revenue Recognition | Note 3. Accounts Receivable, Allowance for Doubtful Accounts and Revenue Recognition |
Accounts Receivable: Accounts receivable are stated at the amount billed to customers. Accounts receivable are ordinarily due 30 days from the invoice date. The Company encounters risks associated with sales and the collection of the associated accounts receivable. As such, the Company records a provision for accounts receivable that are considered to be uncollectible and performs a comprehensive assessment periodically utilizing a variety of historical information and specific account review. The allowance for doubtful accounts is assessed periodically based on events that may change the rate such as a significant increase or decrease in collection performance and timing of payments as well as the calculated total exposure in relation to the allowance. Periodically, the Company compares the identified credit risks with the allowance that has been established using historical experience and adjusts the allowance accordingly. | |
Revenue Recognition: Revenues are recognized when products are shipped or ownership is transferred and when services are rendered to customers. The Company acts as a principal party in sales transactions, assumes title to products and assumes the risks and rewards of ownership including risk of loss for collection, delivery or returns. The Company typically recognizes revenue for the majority of its products upon shipment to the customer and transfer of title. Under agreements with certain customers, custom forms may be stored by the Company for future delivery. In these situations, the Company may receive a logistics and warehouse management fee for the services provided. In these cases, delivery and bill schedules are outlined with the customer and product revenue is recognized when manufacturing is complete and the product is received into the warehouse, title transfers to the customer, the order is invoiced and there is reasonable assurance of collectability. Since the majority of products are customized, product returns are not significant. Therefore, the Company records sales on a gross basis. Revenue generally is recognized net of any taxes collected from customers and subsequently remitted to government authorities. |
Inventories
Inventories | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Inventories | Note 4. Inventories | ||||||||
Inventories are principally stated at the lower of first-in, first-out cost or market. Manufactured finished goods and work in process inventories include material, direct labor and overhead based on standard costs, which approximate actual costs. The Company utilizes an estimated gross profit method for determining cost of sales in interim periods at certain divisions. | |||||||||
At the dates indicated inventories consisted of the following: | |||||||||
April 30, | October 31, | ||||||||
2015 | 2014 | ||||||||
Printing: | |||||||||
Raw materials | $ | 1,242,504 | $ | 1,180,361 | |||||
Work in process | 622,685 | 539,023 | |||||||
Finished goods | 1,070,220 | 1,131,430 | |||||||
Office products and office furniture | 1,307,396 | 1,119,178 | |||||||
Total | $ | 4,242,805 | $ | 3,969,992 |
Debt
Debt | 6 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Debt [Abstract] | ||||||||
Debt | Note 5. Debt | |||||||
At the dates indicated debt consisted of the following: | ||||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
Term Note A dated October 7, 2013, due in monthly installments of $50,000 plus interest payments | ||||||||
equal to the prime rate of interest plus 2% maturing April 1, 2017, | ||||||||
collateralized by substantially all of the assets of the Company. | $ | 9,050,000 | $ | 9,850,000 | ||||
Installment notes payable to banks, due in monthly installments plus interest at rates approximating | ||||||||
the bank’s prime rate or the prime rate subject to various floors maturing in various periods through | ||||||||
February 2017, collateralized by equipment and vehicles. | 540,429 | 475,908 | ||||||
Notes payable to shareholders. The shareholder note of $2.5 million plus all accrued interest was initially | ||||||||
due in one balloon payment in September 2014 pursuant to Term Note A, the maturity was adjusted to April 2015. The interest is accrued on this note at a rate of 3.25%. On June 15, subsequent to the April 30, 2015 Balance Sheet date, the Company's Board of Directors approved the conversion of this note to Preferred Stock equity. See Note 11 for infomation on this conversion. | ||||||||
2,500,000 | 2,500,000 | |||||||
Notes payable to a bank, due August 2015, respectively including interest accrued | ||||||||
at 5.00% collateralized by specific accounts receivable of the Company | 850,000 | 750,000 | ||||||
Capital lease obligation for printing equipment at an imputed interest rate of 6.02% per annum | 35,958 | 43,312 | ||||||
Unamortized debt discount | - | (138,520 | ) | |||||
12,976,387 | 13,480,700 | |||||||
Less current portion long-term debt | 3,500,280 | 12,697,218 | ||||||
Less current portion obligation under capital lease | 15,385 | 14,931 | ||||||
Less short-term debt | 850,000 | 750,000 | ||||||
Less debt discount | - | (138,520 | ) | |||||
Long-term debt, net of current portion and capital lease obligation | $ | 8,610,722 | $ | 157,071 | ||||
Continuing operations: | ||||||||
Long-term debt, net of current portion | $ | 8,590,149 | $ | 128,690 | ||||
Long-term capital lease obligation | 20,573 | 28,381 | ||||||
Current portion of long-term debt | 1,000,280 | 10,197,218 | ||||||
Long-term notes payable to related party | 2,500,000 | 2,500,000 | ||||||
Current portion of capital lease obligation | 15,385 | 14,931 | ||||||
Short-term debt | 850,000 | 750,000 | ||||||
Debt discount | - | (138,520 | ) | |||||
Total indebtedness | $ | 12,976,387 | $ | 13,480,700 |
Income_taxes
Income taxes | 6 Months Ended |
Apr. 30, 2015 | |
Income taxes [Abstract] | |
Income taxes | Note 6. Income taxes |
The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the periods in which those temporary differences become deductible. The Company considers a multitude of factors in assessing the utilization of its deferred tax assets including the reversal of deferred tax liabilities, projected future taxable income and other assessments, which may have an impact on financial results. The Company had determined that a full valuation allowance was warranted at October 31, 2014. The Company reassessed its previous determination regarding its valuation allowance and although the Company has positive operating trends, it was determined that a full valuation allowance was still warranted at April 30, 2015. The amount of deferred tax asset considered realizable could be adjusted in future periods and such adjustments may be material to the Consolidated Financial Statements. | |
The Company’s effective tax rate for continuing operations for the three and six months ended April 30, 2015 and 2014 was 0.0%. The effective income tax rate approximates the combined federal and state, net of federal benefit, statutory income tax rate and may be impacted by increases or decreases in the valuation allowance for deferred tax assets. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||
Commitments and Contingencies | Note 7. Commitments and Contingencies | |||||||||||||||||||||
The nature of The Company’s business results in a certain amount of claims, litigation, investigations, and other legal and administrative cases and proceedings, all of which are considered incidental to the normal conduct of business. When the Company determines it has meritorious defenses to the claims asserted, it vigorously defends itself. The Company will consider settlement of cases when, in Management’s judgment, it is in the best interests of both the Company and its shareholders to do so. | ||||||||||||||||||||||
The Company periodically assesses its liabilities and contingencies in connection with outstanding legal proceedings utilizing the latest information available. The Company would accrue a loss on legal contingencies in the event the loss is deemed probable and reasonably estimable. The accrual is adjusted as appropriate to reflect any relevant developments regarding the legal contingency. In the event of a legal contingency where a loss is not probable or the amount of the loss cannot be estimated, no accrual is established. | ||||||||||||||||||||||
In certain cases, exposure to loss may exist in excess of the accrual to the extent such loss is reasonably possible, but not probable. Management believes an estimate of the aggregate of reasonably possible losses, in excess of amounts accrued, for current legal proceedings not covered by insurance is not greater than $0.4 million at April 30, 2015 and may be substantially lower than this amount. Any estimate involves significant judgment, given the varying stages of the proceedings (including cases in preliminary stages), as well as numerous unresolved issues that may impact the outcome of a proceeding. Accordingly, Management’s estimate will change from time-to-time, and actual losses may be more or less than the current estimate. The current loss estimate excludes legal and professional fees associated with defending such proceedings. These fees are expensed as incurred and may be material to the Company's Consolidated Financial Statements in a particular period. | ||||||||||||||||||||||
While the final outcome of legal proceedings is inherently uncertain, based on information currently available, advice of counsel, and available insurance coverage, Management believes that there is no accrual for legal contingencies required at this time. However, in the event of unexpected future developments, it is possible that the ultimate resolution of these matters, if unfavorable, may be greater than the current range of estimates discussed above and may be material to the Company’s Consolidated Financial Statements in a particular period. | ||||||||||||||||||||||
In accordance with the provisions of the Restated Credit Agreement, the Company issued $0.001 per share warrants issued for up to 30% (on a post-exercise basis) of the outstanding common stock of the Company in the form of non-voting Class B common stock and associated Investor Rights Agreement for the benefit of the Previous Secured Lenders under the Restated Credit Agreement. The warrants expire after October 19, 2017. | ||||||||||||||||||||||
The Warrants entitle the Holders thereof to purchase that number of shares of Company Class B Common Stock equal to thirty percent (30%) of the then issued and outstanding Common Stock of the Company, on a fully diluted, post-exercise basis. Based on the 11,299,528 shares of Company Common Stock currently issued and outstanding, exercise in full of the Warrants would result in the Company’s issuance of an additional 4,842,654 shares to the Warrant Holders. In the event a greater number of issued and outstanding common shares exist at the time of option exercise, a greater number of options of shares of Class B Common Stock would be issuable. The Previous Secured Lenders assigned the warrants to Marshall T. Reynolds in consideration for his personal guaranty and stock pledge and security agreement to assist in facilitating the consummation of the October 2013 Credit Agreement. The Previous Secured Lenders, as Warrant Holders, were subject to the ownership limitations of the Bank Holding Company Act of 1956, as amended and regulations promulgated thereunder (the "Bank Holding Company Act") which placed limitations on their ability to control other companies. The Previous Secured Lenders/Warrant Holders requested, and the Company agreed to create a non-voting class of Common Stock, to be designated as "Class B Common Stock". The Warrants constitute the right to purchase Class B Common Stock. The warrants are exercisable solely for shares of Class B Common Stock. However, because any Class B Common Stock issuable pursuant to the Warrants may be sold by the Warrant Holders to entities not subject to the Bank Holding Company Act, or because one or more Warrant Holders may be permitted to own a limited number of voting shares of Company Class A Common Stock, the articles of amendment provide that those shares of Class B Common Stock are convertible into shares of Class A Common Stock, and vice versa, without charge. Marshall T. Reynolds, as the current Warrant Holder is entitled to convert Class B Common Shares into shares of Class A Common Stock. | ||||||||||||||||||||||
At April 30, 2015 the Company had contractual obligations in the form of leases and debt as follows: | ||||||||||||||||||||||
Payments Due by Fiscal Year | ||||||||||||||||||||||
Contractual Obligations | 2015 | 2016 | 2017 | 2018 | 2019 | Residual | Total | |||||||||||||||
Non-cancelable operating leases | $ | 237,172 | $ | 427,348 | $ | 367,939 | $ | 278,632 | $ | 174,088 | $ | 21,000 | $ | 1,506,179 | ||||||||
Term debt | 1,397,972 | 866,521 | 8,175,936 | - | - | - | 10,440,429 | |||||||||||||||
Obligations under capital lease | 7,577 | 15,853 | 12,528 | - | - | - | 35,958 | |||||||||||||||
Debt discount | - | - | - | - | - | - | - | |||||||||||||||
Notes payable - related party | 2,500,000 | - | - | - | - | - | 2,500,000 | |||||||||||||||
$ | 4,142,721 | $ | 1,309,722 | $ | 8,556,403 | $ | 278,632 | $ | 174,088 | $ | 21,000 | $ | 14,482,566 |
Industry_Segment_Information
Industry Segment Information | 6 Months Ended | |||||||||||||
Apr. 30, 2015 | ||||||||||||||
Industry Segment Information [Abstract] | ||||||||||||||
Industry Segment Information | Note 8. Industry Segment Information | |||||||||||||
The Company operates principally in two industry segments organized on the basis of product lines: the production, printing and sale, principally to commercial customers, of printed materials (including brochures, pamphlets, reports, tags, continuous and other forms) and the sale of office products and office furniture including interior design services. | ||||||||||||||
The Company reports segment information in a manner consistent with the way that our management, including our chief operating decision maker, the Company’s Chief Executive Officer, assesses performance and makes decisions regarding allocation of resources in accordance with the Segment Disclosures Topic of the ASC. | ||||||||||||||
Our Financial Reporting systems present various data, which is used to operate and measure our operating performance. Our chief operating decision maker utilizes various measures of a segment’s profit or loss including historical internal reporting measures and reporting measures based on product lines with operating income (loss) as the key profitability measure within the segment. Product line reporting is the basis for the organization of our segments and is the most consistent measure used by the chief operating decision maker and conforms with the use of segment operating income or (loss) that is the most consistent with those used in measuring like amounts in the Consolidated Financial Statements. | ||||||||||||||
The identifiable assets are reflective of non-GAAP assets reported on the Company's internal balance sheets and taxes and other items excluded for segment reporting. The assets are classified based on the primary functional segment category as reported on the internal balance sheets. Therefore the actual segment assets may not directly correspond with the segment operating (loss) income reported herein. The Company has certain assets classified as held for sale representing $256,832 at April 30, 2015 and $315,275 at April 30, 2014. These assets were part of the printing and newspaper segments prior to the reclassification as assets held for sale. The total assets reported on the Company's balance sheets as of April 30, 2015 and April 30, 2014 are $24,387,810 and $24,960,967, respectively. The identifiable assets reported below represent $24,130,878 and $24,645,692. | ||||||||||||||
The tables below present information about reported segments for the three (Quarter 2) and six months (Year to Date) ended April 30: | ||||||||||||||
2015 Quarter 2 | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 9,674,038 | $ | 7,831,722 | $ | 17,505,760 | ||||||||
Elimination of intersegment revenue | (554,965 | ) | (661,687 | ) | (1,216,652 | ) | ||||||||
Consolidated revenues | $ | 9,119,073 | $ | 7,170,035 | $ | 16,289,108 | ||||||||
Operating income (loss) | 355,970 | (17,572 | ) | 338,398 | ||||||||||
Depreciation & amortization | 390,623 | 24,422 | 415,045 | |||||||||||
Capital expenditures | 112,509 | - | 112,509 | |||||||||||
Identifiable assets | 16,254,808 | 7,876,170 | 24,130,978 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
2014 Quarter 2 | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 10,166,681 | $ | 6,113,724 | $ | 16,280,405 | ||||||||
Elimination of intersegment revenue | (499,118 | ) | (749,007 | ) | (1,248,125 | ) | ||||||||
Consolidated revenues | $ | 9,667,563 | $ | 5,364,717 | $ | 15,032,280 | ||||||||
Operating income (loss) | 61,636 | (240,084 | ) | (178,448 | ) | |||||||||
Depreciation & amortization | 486,863 | 26,361 | 513,224 | |||||||||||
Capital expenditures | 158,240 | 12,085 | 170,325 | |||||||||||
Identifiable assets | 17,109,632 | 7,536,060 | 24,645,692 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
2015 Year to Date | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 19,590,937 | $ | 14,044,695 | $ | 33,635,632 | ||||||||
Elimination of intersegment revenue | (1,083,342 | ) | (1,462,922 | ) | (2,546,264 | ) | ||||||||
Consolidated revenues | $ | 18,507,595 | $ | 12,581,773 | $ | 31,089,368 | ||||||||
Operating income (loss) | 262,773 | (128,315 | ) | 134,458 | ||||||||||
Depreciation & amortization | 770,266 | 46,781 | 817,047 | |||||||||||
Capital expenditures | 489,810 | 70,194 | 560,004 | |||||||||||
Identifiable assets | 16,254,808 | 7,876,170 | 24,130,978 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
2014 Year to Date | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 20,013,735 | $ | 13,003,762 | $ | 33,017,497 | ||||||||
Elimination of intersegment revenue | (987,563 | ) | (1,574,955 | ) | (2,562,518 | ) | ||||||||
Consolidated revenues | $ | 19,026,172 | $ | 11,428,807 | $ | 30,454,979 | ||||||||
Operating (loss) | (225,425 | ) | (313,175 | ) | (538,600 | ) | ||||||||
Depreciation & amortization | 981,575 | 52,721 | 1,034,296 | |||||||||||
Capital expenditures | 282,219 | 17,740 | 299,959 | |||||||||||
Identifiable assets | 17,109,632 | 7,536,060 | 24,645,692 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
A reconciliation of total segment revenue, assets and operating income (loss) to consolidated income (loss) before income taxes, for the three and six months ended April 30, 2015 and 2014 is as follows: | ||||||||||||||
Three months | Six months | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Revenues: | ||||||||||||||
Total segment revenues | $ | 17,505,760 | $ | 16,280,405 | $ | 33,635,632 | $ | 33,017,497 | ||||||
Elimination of intersegment revenue | (1,216,652 | ) | (1,248,125 | ) | (2,546,264 | ) | (2,562,518 | ) | ||||||
Consolidated revenue | $ | 16,289,108 | $ | 15,032,280 | $ | 31,089,368 | $ | 30,454,979 | ||||||
Operating income (loss) from continuing operations: | ||||||||||||||
Total segment operating income (loss) | $ | 338,398 | $ | (178,448 | ) | $ | 134,458 | $ | (538,600 | ) | ||||
Interest expense - related party | (20,087 | ) | (20,087 | ) | (40,851 | ) | (40,851 | ) | ||||||
Interest expense | (206,076 | ) | (256,604 | ) | (470,053 | ) | (520,365 | ) | ||||||
Other (expense) income | (64,338 | ) | 206,644 | (43,475 | ) | 221,138 | ||||||||
Consolidated income (loss) before income taxes | $ | 47,897 | $ | (248,495 | ) | $ | (419,921 | ) | $ | (878,678 | ) | |||
Identifiable assets: | ||||||||||||||
Total segment identifiable assets | $ | 24,130,978 | $ | 24,645,692 | $ | 24,130,978 | $ | 24,645,692 | ||||||
Assets not allocated to a segment | 256,832 | 315,275 | 256,832 | 315,275 | ||||||||||
Total consolidated assets | $ | 24,387,810 | $ | 24,960,967 | $ | 24,387,810 | $ | 24,960,967 |
Fair_Value_Measurements
Fair Value Measurements | 6 Months Ended |
Apr. 30, 2015 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 9. Fair Value Measurements |
There is a fair value hierarchy for those instruments measured at fair value that distinguishes between assumptions based on market data (observable inputs) and our own assumptions (unobservable inputs). The hierarchy consists of three levels: | |
Level 1 - Quoted market prices in active markets for identical assets or liabilities | |
Level 2 - Inputs other than Level 1 inputs that are either directly or indirectly observable; and | |
Level 3 - Unobservable inputs developed using estimates and assumptions developed by the Company, which reflect those that a market participant would use. | |
The Company does not believe it is practicable to estimate the fair value of its variable interest-bearing debt with a private lender and its subordinated debt to a related party due primarily to the fact that an active market for the Company’s debt does not exist. | |
The term debt not discussed herein had a carrying value of approximately $1.4 million and the Company believes carrying value approximates fair value for this debt based on recent market conditions, collateral support, recent borrowings and other factors. | |
Cash consists principally of cash on deposit with banks. The Company's cash deposits in excess of federally insured amounts are primarily maintained at a large well-known financial institution. | |
The carrying amounts of the Company's accounts receivable, accounts payable, accrued payrolls and commissions, taxes accrued and withheld and accrued expenses approximates fair value due to their short-term nature. | |
Goodwill and other intangible assets are measured on a non-recurring basis using Level 3 inputs. Goodwill is also subject to an annual impairment test. (see Note 10) |
Acquired_Intangible_Assets_and
Acquired Intangible Assets and Goodwill | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Acquired Intangible Assets and Goodwill [Abstract] | |||||||||||||||||
Acquired Intangible Assets and Goodwill | Note 10. Acquired Intangible Assets and Goodwill | ||||||||||||||||
30-Apr-15 | 31-Oct-14 | ||||||||||||||||
Gross | Gross | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Non-compete agreement | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | |||||||||
Customer relationships | 2,451,073 | 1,332,179 | 2,451,073 | 1,271,130 | |||||||||||||
Other | 564,946 | 564,946 | 564,946 | 564,946 | |||||||||||||
4,016,019 | 2,897,125 | 4,016,019 | 2,836,076 | ||||||||||||||
Unamortizable intangible assets: | |||||||||||||||||
Goodwill | 1,737,763 | 507,278 | 1,737,763 | 507,278 | |||||||||||||
1,737,763 | 507,278 | 1,737,763 | 507,278 | ||||||||||||||
Total goodwill and other intangibles | $ | 5,753,782 | $ | 3,404,403 | $ | 5,753,782 | $ | 3,343,354 | |||||||||
Amortization expense for the three and six months ended April 30, 2015 was $31,000 and $61,000, and for the three and six months ended April 30, 2014 was $32,000 and $67,000, respectively. Customer relationships are being amortized over a period of 20 years, related to the acquisition of Syscan in 2004. The weighted average remaining life of the Company's amortizable intangible assets was approximately 5 years. | |||||||||||||||||
Estimated amortization expense for each of the following years is: | |||||||||||||||||
2015 | $ | 61,049 | |||||||||||||||
2016 | 122,098 | ||||||||||||||||
2017 | 122,098 | ||||||||||||||||
2018 | 122,098 | ||||||||||||||||
2019 | 122,098 | ||||||||||||||||
Thereafter | 569,453 | ||||||||||||||||
$ | 1,118,894 | ||||||||||||||||
The changes in the carrying amount of goodwill and other amortizing intangibles for the six months ended April 30, 2015 were: | |||||||||||||||||
Goodwill: | |||||||||||||||||
Printing | Office Products and Furniture | Total | |||||||||||||||
Balance at October 31, 2014 | |||||||||||||||||
Goodwill | $ | 2,226,837 | $ | 1,230,485 | $ | 3,457,322 | |||||||||||
Accumulated impairment losses | (2,226,837 | ) | - | (2,226,837 | ) | ||||||||||||
- | 1,230,485 | 1,230,485 | |||||||||||||||
Goodwill acquired six months ended April 30, 2015 | - | - | - | ||||||||||||||
Impairment losses six months ended April 30, 2015 | - | - | - | ||||||||||||||
Balance at April 30, 2015 | |||||||||||||||||
Goodwill | 2,226,837 | 1,230,485 | 3,457,322 | ||||||||||||||
Accumulated impairment losses | (2,226,837 | ) | - | (2,226,837 | ) | ||||||||||||
$ | - | $ | 1,230,485 | $ | 1,230,485 | ||||||||||||
Amortizing Intangible Assets (net of amortization expense): | |||||||||||||||||
Printing | Office Products and Furniture | Total | |||||||||||||||
Balance at October 31, 2014 | |||||||||||||||||
Amortizing intangible assets | $ | 395,206 | $ | 784,737 | $ | 1,179,943 | |||||||||||
Accumulated impairment losses | - | - | - | ||||||||||||||
395,206 | 784,737 | 1,179,943 | |||||||||||||||
Amortizing intangible assets acquired six months ended April 30, 2015 | - | - | - | ||||||||||||||
Impairment losses six months ended April 30, 2015 | - | - | - | ||||||||||||||
Amortization expense | 20,451 | 40,598 | 61,049 | ||||||||||||||
Balance at April 30, 2015 | |||||||||||||||||
Amortizing intangible assets | 374,755 | 744,139 | 1,118,894 | ||||||||||||||
Accumulated impairment losses | - | - | - | ||||||||||||||
$ | 374,755 | $ | 744,139 | $ | 1,118,894 |
Subsequent_Events
Subsequent Events | 6 Months Ended |
Apr. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 11. Subsequent Events |
The Company has evaluated subsequent events through June 15, 2015 for the Balance Sheet dated April 30, 2015. | |
On June 15, 2015 the Company’s Board of Directors approved the conversion of the Company’s $2.5 million related party debt to Preferred Stock equity. The Preferred Stock will pay a 6.00% or 0.00% annual dividend contingent on the Company’s income after income taxes. If the Company's income after income taxes is $1.0 million or greater, the dividend rate is 6.00%; if the Company's income after income taxes is less than $1.0 million, the dividend rate is 0.00%. | |
This conversion will reduce the Company’s liabilities by $2.5 million and increase its equity by $2.5 million. In addition, this conversion will reduce the Company’s annual interest expense by $0.1 million. However, contingent on the after income tax income, this conversion could trigger the payment of an annual Preferred Stock dividend of $0.2 million or zero. If the $1.0 million after income tax income target is achieved, the Company’s annual cash outflow would increase $0.1 million, or decrease $0.1 million if the $1.0 million after income tax income target is not achieved. See Note 5 to the Consolidated Financial Statements for more information on the Company's related party debt. |
Basis_of_Presentation_Business1
Basis of Presentation, Business Operations and Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Apr. 30, 2015 | |
Basis of Presentation, Business Operations and Recent Accounting Pronouncements [Abstract] | |
Basis of Presentation | The foregoing financial information has been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) and rules and regulations of the Securities and Exchange Commission for interim financial reporting. The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and accompanying notes. Actual results could differ from these estimates. In the opinion of management, the financial information reflects all adjustments (consisting of items of a normal recurring nature) necessary for a fair presentation of financial position, results of operations and cash flows in conformity with GAAP. These interim financial statements should be read in conjunction with the consolidated financial statements for the year ended October 31, 2014, and related notes thereto contained in Champion Industries, Inc.’s Form 10-K filed January 29, 2015. The accompanying interim financial information is unaudited. The results of operations for the period are not necessarily indicative of the results to be expected for the full year. The balance sheet information as of October 31, 2014 was derived from our audited financial statements. |
Reclassifications and Revisions | Reclassifications and Revisions: Certain prior-year amounts have been reclassified to conform to the current year financial statement presentation. |
Newly Issued Accounting Standards | Newly Issued Accounting Standards |
Effective July 1, 2009, changes to the ASC are communicated through an ASU. As of April 30, 2015, the FASB has issued ASU’s 2009-01 through 2015-06. The Company reviewed each ASU and determined that they will not have a material impact on the Company’s financial position, results of operations or cash flows, other than related disclosures to the extent applicable. | |
In January 2015, the FASB issued ASU 2015-01, “Income Statement – Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items” (“ASU 2015-01”). ASU 2015-01 eliminates from U.S. GAAP the concept of extraordinary items. The Company adopted ASU 2015-01 in December, 2015. This amendment did not have a material impact on the Company's financial position, results of operation, or cash flows, but will have an impact on related presentation and disclosure to the extent applicable. |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Apr. 30, 2015 | |||||||||
Inventories [Abstract] | |||||||||
Schedule of inventories | At the dates indicated inventories consisted of the following: | ||||||||
April 30, | October 31, | ||||||||
2015 | 2014 | ||||||||
Printing: | |||||||||
Raw materials | $ | 1,242,504 | $ | 1,180,361 | |||||
Work in process | 622,685 | 539,023 | |||||||
Finished goods | 1,070,220 | 1,131,430 | |||||||
Office products and office furniture | 1,307,396 | 1,119,178 | |||||||
Total | $ | 4,242,805 | $ | 3,969,992 |
Debt_Tables
Debt (Tables) | 6 Months Ended | |||||||
Apr. 30, 2015 | ||||||||
Debt [Abstract] | ||||||||
Schedule of long-term debt | ||||||||
April 30, | October 31, | |||||||
2015 | 2014 | |||||||
Term Note A dated October 7, 2013, due in monthly installments of $50,000 plus interest payments | ||||||||
equal to the prime rate of interest plus 2% maturing April 1, 2017, | ||||||||
collateralized by substantially all of the assets of the Company. | $ | 9,050,000 | $ | 9,850,000 | ||||
Installment notes payable to banks, due in monthly installments plus interest at rates approximating | ||||||||
the bank’s prime rate or the prime rate subject to various floors maturing in various periods through | ||||||||
February 2017, collateralized by equipment and vehicles. | 540,429 | 475,908 | ||||||
Notes payable to shareholders. The shareholder note of $2.5 million plus all accrued interest was initially | ||||||||
due in one balloon payment in September 2014 pursuant to Term Note A, the maturity was adjusted to April 2015. The interest is accrued on this note at a rate of 3.25%. On June 15, subsequent to the April 30, 2015 Balance Sheet date, the Company's Board of Directors approved the conversion of this note to Preferred Stock equity. See Note 11 for infomation on this conversion. | ||||||||
2,500,000 | 2,500,000 | |||||||
Notes payable to a bank, due August 2015, respectively including interest accrued | ||||||||
at 5.00% collateralized by specific accounts receivable of the Company | 850,000 | 750,000 | ||||||
Capital lease obligation for printing equipment at an imputed interest rate of 6.02% per annum | 35,958 | 43,312 | ||||||
Unamortized debt discount | - | (138,520 | ) | |||||
12,976,387 | 13,480,700 | |||||||
Less current portion long-term debt | 3,500,280 | 12,697,218 | ||||||
Less current portion obligation under capital lease | 15,385 | 14,931 | ||||||
Less short-term debt | 850,000 | 750,000 | ||||||
Less debt discount | - | (138,520 | ) | |||||
Long-term debt, net of current portion and capital lease obligation | $ | 8,610,722 | $ | 157,071 | ||||
Continuing operations: | ||||||||
Long-term debt, net of current portion | $ | 8,590,149 | $ | 128,690 | ||||
Long-term capital lease obligation | 20,573 | 28,381 | ||||||
Current portion of long-term debt | 1,000,280 | 10,197,218 | ||||||
Long-term notes payable to related party | 2,500,000 | 2,500,000 | ||||||
Current portion of capital lease obligation | 15,385 | 14,931 | ||||||
Short-term debt | 850,000 | 750,000 | ||||||
Debt discount | - | (138,520 | ) | |||||
Total indebtedness | $ | 12,976,387 | $ | 13,480,700 |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||||||||||||||||||||
Apr. 30, 2015 | ||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||
Contractual obligations of leases and debt | At April 30, 2015 the Company had contractual obligations in the form of leases and debt as follows: | |||||||||||||||||||||
Payments Due by Fiscal Year | ||||||||||||||||||||||
Contractual Obligations | 2015 | 2016 | 2017 | 2018 | 2019 | Residual | Total | |||||||||||||||
Non-cancelable operating leases | $ | 237,172 | $ | 427,348 | $ | 367,939 | $ | 278,632 | $ | 174,088 | $ | 21,000 | $ | 1,506,179 | ||||||||
Term debt | 1,397,972 | 866,521 | 8,175,936 | - | - | - | 10,440,429 | |||||||||||||||
Obligations under capital lease | 7,577 | 15,853 | 12,528 | - | - | - | 35,958 | |||||||||||||||
Debt discount | - | - | - | - | - | - | - | |||||||||||||||
Notes payable - related party | 2,500,000 | - | - | - | - | - | 2,500,000 | |||||||||||||||
$ | 4,142,721 | $ | 1,309,722 | $ | 8,556,403 | $ | 278,632 | $ | 174,088 | $ | 21,000 | $ | 14,482,566 |
Industry_Segment_Information_T
Industry Segment Information (Tables) | 6 Months Ended | |||||||||||||
Apr. 30, 2015 | ||||||||||||||
Industry Segment Information [Abstract] | ||||||||||||||
Schedule of segment reporting information, by segment | The tables below present information about reported segments for the three (Quarter 2) and six months (Year to Date) ended April 30: | |||||||||||||
2015 Quarter 2 | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 9,674,038 | $ | 7,831,722 | $ | 17,505,760 | ||||||||
Elimination of intersegment revenue | (554,965 | ) | (661,687 | ) | (1,216,652 | ) | ||||||||
Consolidated revenues | $ | 9,119,073 | $ | 7,170,035 | $ | 16,289,108 | ||||||||
Operating income (loss) | 355,970 | (17,572 | ) | 338,398 | ||||||||||
Depreciation & amortization | 390,623 | 24,422 | 415,045 | |||||||||||
Capital expenditures | 112,509 | - | 112,509 | |||||||||||
Identifiable assets | 16,254,808 | 7,876,170 | 24,130,978 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
2014 Quarter 2 | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 10,166,681 | $ | 6,113,724 | $ | 16,280,405 | ||||||||
Elimination of intersegment revenue | (499,118 | ) | (749,007 | ) | (1,248,125 | ) | ||||||||
Consolidated revenues | $ | 9,667,563 | $ | 5,364,717 | $ | 15,032,280 | ||||||||
Operating income (loss) | 61,636 | (240,084 | ) | (178,448 | ) | |||||||||
Depreciation & amortization | 486,863 | 26,361 | 513,224 | |||||||||||
Capital expenditures | 158,240 | 12,085 | 170,325 | |||||||||||
Identifiable assets | 17,109,632 | 7,536,060 | 24,645,692 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
2015 Year to Date | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 19,590,937 | $ | 14,044,695 | $ | 33,635,632 | ||||||||
Elimination of intersegment revenue | (1,083,342 | ) | (1,462,922 | ) | (2,546,264 | ) | ||||||||
Consolidated revenues | $ | 18,507,595 | $ | 12,581,773 | $ | 31,089,368 | ||||||||
Operating income (loss) | 262,773 | (128,315 | ) | 134,458 | ||||||||||
Depreciation & amortization | 770,266 | 46,781 | 817,047 | |||||||||||
Capital expenditures | 489,810 | 70,194 | 560,004 | |||||||||||
Identifiable assets | 16,254,808 | 7,876,170 | 24,130,978 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
2014 Year to Date | Printing | Office Products & Furniture | Total | |||||||||||
Revenues | $ | 20,013,735 | $ | 13,003,762 | $ | 33,017,497 | ||||||||
Elimination of intersegment revenue | (987,563 | ) | (1,574,955 | ) | (2,562,518 | ) | ||||||||
Consolidated revenues | $ | 19,026,172 | $ | 11,428,807 | $ | 30,454,979 | ||||||||
Operating (loss) | (225,425 | ) | (313,175 | ) | (538,600 | ) | ||||||||
Depreciation & amortization | 981,575 | 52,721 | 1,034,296 | |||||||||||
Capital expenditures | 282,219 | 17,740 | 299,959 | |||||||||||
Identifiable assets | 17,109,632 | 7,536,060 | 24,645,692 | |||||||||||
Goodwill | - | 1,230,485 | 1,230,485 | |||||||||||
Reconciliation of total segment revenue, assets and operating (loss) income | A reconciliation of total segment revenue, assets and operating income (loss) to consolidated income (loss) before income taxes, for the three and six months ended April 30, 2015 and 2014 is as follows: | |||||||||||||
Three months | Six months | |||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||
Revenues: | ||||||||||||||
Total segment revenues | $ | 17,505,760 | $ | 16,280,405 | $ | 33,635,632 | $ | 33,017,497 | ||||||
Elimination of intersegment revenue | (1,216,652 | ) | (1,248,125 | ) | (2,546,264 | ) | (2,562,518 | ) | ||||||
Consolidated revenue | $ | 16,289,108 | $ | 15,032,280 | $ | 31,089,368 | $ | 30,454,979 | ||||||
Operating income (loss) from continuing operations: | ||||||||||||||
Total segment operating income (loss) | $ | 338,398 | $ | (178,448 | ) | $ | 134,458 | $ | (538,600 | ) | ||||
Interest expense - related party | (20,087 | ) | (20,087 | ) | (40,851 | ) | (40,851 | ) | ||||||
Interest expense | (206,076 | ) | (256,604 | ) | (470,053 | ) | (520,365 | ) | ||||||
Other (expense) income | (64,338 | ) | 206,644 | (43,475 | ) | 221,138 | ||||||||
Consolidated income (loss) before income taxes | $ | 47,897 | $ | (248,495 | ) | $ | (419,921 | ) | $ | (878,678 | ) | |||
Identifiable assets: | ||||||||||||||
Total segment identifiable assets | $ | 24,130,978 | $ | 24,645,692 | $ | 24,130,978 | $ | 24,645,692 | ||||||
Assets not allocated to a segment | 256,832 | 315,275 | 256,832 | 315,275 | ||||||||||
Total consolidated assets | $ | 24,387,810 | $ | 24,960,967 | $ | 24,387,810 | $ | 24,960,967 |
Acquired_Intangible_Assets_and1
Acquired Intangible Assets and Goodwill (Tables) | 6 Months Ended | ||||||||||||||||
Apr. 30, 2015 | |||||||||||||||||
Acquired Intangible Assets and Goodwill [Abstract] | |||||||||||||||||
Acquired intangible assets and goodwill | 30-Apr-15 | 31-Oct-14 | |||||||||||||||
Gross | Gross | ||||||||||||||||
Carrying | Accumulated | Carrying | Accumulated | ||||||||||||||
Amount | Amortization | Amount | Amortization | ||||||||||||||
Amortizable intangible assets: | |||||||||||||||||
Non-compete agreement | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | $ | 1,000,000 | |||||||||
Customer relationships | 2,451,073 | 1,332,179 | 2,451,073 | 1,271,130 | |||||||||||||
Other | 564,946 | 564,946 | 564,946 | 564,946 | |||||||||||||
4,016,019 | 2,897,125 | 4,016,019 | 2,836,076 | ||||||||||||||
Unamortizable intangible assets: | |||||||||||||||||
Goodwill | 1,737,763 | 507,278 | 1,737,763 | 507,278 | |||||||||||||
1,737,763 | 507,278 | 1,737,763 | 507,278 | ||||||||||||||
Total goodwill and other intangibles | $ | 5,753,782 | $ | 3,404,403 | $ | 5,753,782 | $ | 3,343,354 | |||||||||
Estimated amortization expense | 2015 | $ | 61,049 | ||||||||||||||
2016 | 122,098 | ||||||||||||||||
2017 | 122,098 | ||||||||||||||||
2018 | 122,098 | ||||||||||||||||
2019 | 122,098 | ||||||||||||||||
Thereafter | 569,453 | ||||||||||||||||
$ | 1,118,894 | ||||||||||||||||
Changes in the carrying amount of goodwill | The changes in the carrying amount of goodwill and other amortizing intangibles for the six months ended April 30, 2015 were: | ||||||||||||||||
Goodwill: | |||||||||||||||||
Printing | Office Products and Furniture | Total | |||||||||||||||
Balance at October 31, 2014 | |||||||||||||||||
Goodwill | $ | 2,226,837 | $ | 1,230,485 | $ | 3,457,322 | |||||||||||
Accumulated impairment losses | (2,226,837 | ) | - | (2,226,837 | ) | ||||||||||||
- | 1,230,485 | 1,230,485 | |||||||||||||||
Goodwill acquired six months ended April 30, 2015 | - | - | - | ||||||||||||||
Impairment losses six months ended April 30, 2015 | - | - | - | ||||||||||||||
Balance at April 30, 2015 | |||||||||||||||||
Goodwill | 2,226,837 | 1,230,485 | 3,457,322 | ||||||||||||||
Accumulated impairment losses | (2,226,837 | ) | - | (2,226,837 | ) | ||||||||||||
$ | - | $ | 1,230,485 | $ | 1,230,485 | ||||||||||||
Amortizing intangible assets (net of amortization expense) | The changes in the carrying amount of goodwill and other amortizing intangibles for the six months ended April 30, 2015 were: | ||||||||||||||||
Amortizing Intangible Assets (net of amortization expense): | |||||||||||||||||
Printing | Office Products and Furniture | Total | |||||||||||||||
Balance at October 31, 2014 | |||||||||||||||||
Amortizing intangible assets | $ | 395,206 | $ | 784,737 | $ | 1,179,943 | |||||||||||
Accumulated impairment losses | - | - | - | ||||||||||||||
395,206 | 784,737 | 1,179,943 | |||||||||||||||
Amortizing intangible assets acquired six months ended April 30, 2015 | - | - | - | ||||||||||||||
Impairment losses six months ended April 30, 2015 | - | - | - | ||||||||||||||
Amortization expense | 20,451 | 40,598 | 61,049 | ||||||||||||||
Balance at April 30, 2015 | |||||||||||||||||
Amortizing intangible assets | 374,755 | 744,139 | 1,118,894 | ||||||||||||||
Accumulated impairment losses | - | - | - | ||||||||||||||
$ | 374,755 | $ | 744,139 | $ | 1,118,894 |
Accounts_Receivable_Allowance_1
Accounts Receivable, Allowance for Doubtful Accounts and Revenue Recognition (Details) | 6 Months Ended |
Apr. 30, 2015 | |
Accounts Receivable, Allowance for Doubtful Accounts and Revenue Recognition [Abstract] | |
Accounts receivable, payment period from invoice date | 30 days |
Inventories_Details
Inventories (Details) (USD $) | Apr. 30, 2015 | Oct. 31, 2014 |
Printing [Abstract] | ||
Raw materials | $1,242,504 | $1,180,361 |
Work in process | 622,685 | 539,023 |
Finished goods | 1,070,220 | 1,131,430 |
Office products and office furniture | 1,307,396 | 1,119,178 |
Total | $4,242,805 | $3,969,992 |
Debt_Details
Debt (Details) (USD $) | 3 Months Ended | 12 Months Ended | 6 Months Ended |
Apr. 30, 2015 | Oct. 31, 2014 | Apr. 30, 2015 | |
Debt Instrument [Line Items] | |||
Long-term debt | $12,976,387 | $13,480,700 | $12,976,387 |
Unamortized debt discount | 0 | -138,520 | 0 |
Total indebtedness | 12,976,387 | 13,480,700 | 12,976,387 |
Less current portion long-term debt | 3,500,280 | 12,697,218 | 3,500,280 |
Less current portion obligation under capital lease | 15,385 | 14,931 | 15,385 |
Less short-term debt | 850,000 | 750,000 | |
Less debt discount | 0 | -138,520 | 0 |
Long-term debt, net of current portion and capital lease obligation | 8,610,722 | 157,071 | 8,610,722 |
Continuing operations [Abstract] | |||
Long-term debt, net of current portion | 8,590,149 | 128,690 | 8,590,149 |
Long-term capital lease obligation | 20,573 | 28,381 | 20,573 |
Current portion long-term debt | 1,000,280 | 10,197,218 | 1,000,280 |
Long-term notes payable to related party | 2,500,000 | 2,500,000 | 2,500,000 |
Current portion of capital lease obligation | 15,385 | 14,931 | 15,385 |
Short-term debt | 850,000 | 750,000 | 850,000 |
Debt discount | 0 | -138,520 | 0 |
Total indebtedness | 12,976,387 | 13,480,700 | 12,976,387 |
Term Note A dated October 7, 2013 [Member] | |||
Debt Instrument [Line Items] | |||
Periodic installment payment | 50,000 | ||
Basis spread on variable rate (in hundredths) | 2.00% | ||
Debt maturity date | 1-Apr-17 | ||
Installment Notes Payable to Banks and Lessor [Member] | |||
Debt Instrument [Line Items] | |||
Debt maturity date | 28-Feb-17 | ||
Notes Payable to Shareholders [Member] | |||
Debt Instrument [Line Items] | |||
Debt maturity date | 30-Sep-14 | ||
Interest rate (in hundredths) | 3.25% | 3.25% | |
Other Notes Payable [Member] | Term Note A dated October 7, 2013 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 9,050,000 | 9,850,000 | 9,050,000 |
Continuing operations [Abstract] | |||
Total indebtedness | 9,050,000 | 9,850,000 | 9,050,000 |
Other Notes Payable [Member] | Installment Notes Payable to Banks and Lessor [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 540,429 | 475,908 | 540,429 |
Continuing operations [Abstract] | |||
Total indebtedness | 540,429 | 475,908 | 540,429 |
Other Notes Payable [Member] | Notes Payable to Shareholders [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 2,500,000 | 2,500,000 | 2,500,000 |
Continuing operations [Abstract] | |||
Total indebtedness | 2,500,000 | 2,500,000 | 2,500,000 |
Notes Payable to Banks [Member] | Note Payable to Bank due August 2015 [Member] | |||
Debt Instrument [Line Items] | |||
Long-term debt | 850,000 | 750,000 | 850,000 |
Interest rate (in hundredths) | 5.00% | 5.00% | |
Continuing operations [Abstract] | |||
Total indebtedness | 850,000 | 750,000 | 850,000 |
Capital Lease Obligations [Member] | Capital Lease Obligation for Printing Equipment [Member] | |||
Debt Instrument [Line Items] | |||
Capital Lease Obligations | $35,958 | $43,312 | $35,958 |
Interest rate (in hundredths) | 6.02% | 6.02% |
Income_taxes_Details
Income taxes (Details) | 3 Months Ended | 6 Months Ended | ||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | |
Income taxes [Abstract] | ||||
Effective tax rate, (expense) benefit (in hundredths) | 0.00% | 0.00% | 0.00% | 0.00% |
Commitments_and_Contingencies_1
Commitments and Contingencies (Details) (USD $) | Apr. 30, 2015 |
Holder | |
Commitments and Contingencies [Abstract] | |
Estimate of reasonably possible losses | $400,000 |
Price of warrants issued (in dollars per share) | $0.00 |
Percentage of Common stock outstanding (in hundredths) | 30.00% |
Common stock, shares outstanding (in shares) | 11,299,528 |
Potential shares issued from exercise of warrants (in shares) | 4,842,654 |
Minimum number of warrant holders permitted to own a limited number of voting shares | 1 |
Contractual Obligations [Abstract] | |
2015 | 4,142,721 |
2016 | 1,309,722 |
2017 | 8,556,403 |
2018 | 278,632 |
2019 | 174,088 |
Residual | 21,000 |
Total | 14,482,566 |
Non-cancelable Operating Leases [Member] | |
Contractual Obligations [Abstract] | |
2015 | 237,172 |
2016 | 427,348 |
2017 | 367,939 |
2018 | 278,632 |
2019 | 174,088 |
Residual | 21,000 |
Total | 1,506,179 |
Term Debt [Member] | |
Contractual Obligations [Abstract] | |
2015 | 1,397,972 |
2016 | 866,521 |
2017 | 8,175,936 |
2018 | 0 |
2019 | 0 |
Residual | 0 |
Total | 10,440,429 |
Obligations under Capital Lease [Member] | |
Contractual Obligations [Abstract] | |
2015 | 7,577 |
2016 | 15,853 |
2017 | 12,528 |
2018 | 0 |
2019 | 0 |
Residual | 0 |
Total | 35,958 |
Debt Discount [Member] | |
Contractual Obligations [Abstract] | |
2015 | 0 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Residual | 0 |
Total | 0 |
Notes Payable - Related Party [Member] | |
Contractual Obligations [Abstract] | |
2015 | 2,500,000 |
2016 | 0 |
2017 | 0 |
2018 | 0 |
2019 | 0 |
Residual | 0 |
Total | $2,500,000 |
Industry_Segment_Information_D
Industry Segment Information (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Segment | |||||
Industry Segment Information [Abstract] | |||||
Number of operating segments | 2 | ||||
Total assets held for sale/discontinued operations | $256,832 | $315,275 | $256,832 | $315,275 | |
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | 16,289,108 | 15,032,280 | 31,089,368 | 30,454,979 | |
Operating income (loss) | 338,398 | -178,448 | 134,458 | -538,600 | |
Depreciation & amortization | 415,045 | 513,224 | 817,047 | 1,034,296 | |
Capital expenditures | 112,509 | 170,325 | 560,004 | 299,959 | |
Identifiable assets | 24,130,978 | 24,645,692 | 24,130,978 | 24,645,692 | |
Goodwill | 1,230,485 | 1,230,485 | 1,230,485 | 1,230,485 | 1,230,485 |
Interest expense - related party | -20,087 | -20,087 | -40,851 | -40,851 | |
Interest expense | -206,076 | -256,604 | -470,053 | -520,365 | |
Other income | -64,338 | 206,644 | -43,475 | 221,138 | |
Income (loss) before income taxes | 47,897 | -248,495 | -419,921 | -878,678 | |
Identifiable assets [Abstract] | |||||
Total segment identifiable assets | 24,130,978 | 24,645,692 | 24,130,978 | 24,645,692 | |
Assets not allocated to a segment | 256,832 | 315,275 | 256,832 | 315,275 | |
Total assets | 24,387,810 | 24,960,967 | 24,387,810 | 24,960,967 | 24,008,393 |
Printing [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | 9,119,073 | 9,667,563 | 18,507,595 | 19,026,172 | |
Goodwill | 0 | 0 | 0 | ||
Office Products & Furniture [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | 7,170,035 | 5,364,717 | 12,581,773 | 11,428,807 | |
Goodwill | 1,230,485 | 1,230,485 | 1,230,485 | ||
Operating Segments [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | 17,505,760 | 16,280,405 | 33,635,632 | 33,017,497 | |
Operating Segments [Member] | Printing [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | 9,674,038 | 10,166,681 | 19,590,937 | 20,013,735 | |
Operating income (loss) | 355,970 | 61,636 | 262,773 | -225,425 | |
Depreciation & amortization | 390,623 | 486,863 | 770,266 | 981,575 | |
Capital expenditures | 112,509 | 158,240 | 489,810 | 282,219 | |
Identifiable assets | 16,254,808 | 17,109,632 | 16,254,808 | 17,109,632 | |
Goodwill | 0 | 0 | 0 | 0 | |
Identifiable assets [Abstract] | |||||
Total segment identifiable assets | 16,254,808 | 17,109,632 | 16,254,808 | 17,109,632 | |
Operating Segments [Member] | Office Products & Furniture [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | 7,831,722 | 6,113,724 | 14,044,695 | 13,003,762 | |
Operating income (loss) | -17,572 | -240,084 | -128,315 | -313,175 | |
Depreciation & amortization | 24,422 | 26,361 | 46,781 | 52,721 | |
Capital expenditures | 0 | 12,085 | 70,194 | 17,740 | |
Identifiable assets | 7,876,170 | 7,536,060 | 7,876,170 | 7,536,060 | |
Goodwill | 1,230,485 | 1,230,485 | 1,230,485 | 1,230,485 | |
Identifiable assets [Abstract] | |||||
Total segment identifiable assets | 7,876,170 | 7,536,060 | 7,876,170 | 7,536,060 | |
Elimination of Intersegment Revenue [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | -1,216,652 | -1,248,125 | -2,546,264 | -2,562,518 | |
Elimination of Intersegment Revenue [Member] | Printing [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | -554,965 | -499,118 | -1,083,342 | -987,563 | |
Elimination of Intersegment Revenue [Member] | Office Products & Furniture [Member] | |||||
Segment reporting information, revenue for reportable segment [Abstract] | |||||
Consolidated revenues | ($661,687) | ($749,007) | ($1,462,922) | ($1,574,955) |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Apr. 30, 2015 |
In Millions, unless otherwise specified | |
Fair Value Measurements [Abstract] | |
Carrying value of term debt not related to credit agreement | $1.40 |
Acquired_Intangible_Assets_and2
Acquired Intangible Assets and Goodwill (Details) (USD $) | 3 Months Ended | 6 Months Ended | |||
Apr. 30, 2015 | Apr. 30, 2014 | Apr. 30, 2015 | Apr. 30, 2014 | Oct. 31, 2014 | |
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortizable intangible assets, gross carrying amount | $4,016,019 | $4,016,019 | |||
Amortizable intangible assets, accumulated amortization | 2,897,125 | 2,897,125 | 2,836,076 | ||
Unamortizable intangible assets [Abstract] | |||||
Goodwill | 1,737,763 | 1,737,763 | |||
Goodwill, accumulated amortization | 507,278 | 507,278 | |||
Total goodwill and other intangibles, gross carrying amount | 5,753,782 | 5,753,782 | 5,753,782 | ||
Total goodwill and other intangibles, accumulated amortization | 3,404,403 | 3,404,403 | 3,343,354 | ||
Amortization period | 5 years | ||||
Estimated amortization expense for future fiscal years [Abstract] | |||||
2015 | 61,049 | 61,049 | |||
2016 | 122,098 | 122,098 | |||
2017 | 122,098 | 122,098 | |||
2018 | 122,098 | 122,098 | |||
2019 | 122,098 | 122,098 | |||
Thereafter | 569,453 | 569,453 | |||
Total | 1,118,894 | 1,118,894 | |||
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning of period | 1,737,763 | ||||
Accumulated impairment losses, beginning of period | -507,278 | ||||
Goodwill, beginning of period | 1,230,485 | ||||
Goodwill, gross, end of period | 1,737,763 | 1,737,763 | |||
Accumulated impairment losses, end of period | -507,278 | -507,278 | |||
Goodwill, ending balance | 1,230,485 | 1,230,485 | 1,230,485 | 1,230,485 | |
Amortizing Intangible Assets (net of amortization expense) [Roll Forward] | |||||
Amortizing intangible assets (net of amortization expense), beginning of period | 4,016,019 | ||||
Amortizing intangible assets (net of amortization expense and impairment losses), beginning of period | 1,179,943 | ||||
Amortization expense | 31,000 | 32,000 | 61,049 | 67,000 | |
Amortizing intangible assets (net of amortization expense), end of period | 4,016,019 | 4,016,019 | |||
Amortizing intangible assets (net of amortization expense and impairment losses), end of period | 1,118,894 | 1,118,894 | |||
Non-compete Agreements [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortizable intangible assets, gross carrying amount | 1,000,000 | 1,000,000 | 1,000,000 | ||
Amortizable intangible assets, accumulated amortization | 1,000,000 | 1,000,000 | 1,000,000 | ||
Amortizing Intangible Assets (net of amortization expense) [Roll Forward] | |||||
Amortizing intangible assets (net of amortization expense), beginning of period | 1,000,000 | ||||
Amortizing intangible assets (net of amortization expense), end of period | 1,000,000 | 1,000,000 | 1,000,000 | ||
Customer Relationships [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortizable intangible assets, gross carrying amount | 2,451,073 | 2,451,073 | 2,451,073 | ||
Amortizable intangible assets, accumulated amortization | 1,332,179 | 1,332,179 | 1,271,130 | ||
Amortizing Intangible Assets (net of amortization expense) [Roll Forward] | |||||
Amortizing intangible assets (net of amortization expense), beginning of period | 2,451,073 | ||||
Amortizing intangible assets (net of amortization expense), end of period | 2,451,073 | 2,451,073 | 2,451,073 | ||
Other [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortizable intangible assets, gross carrying amount | 564,946 | 564,946 | 564,946 | ||
Amortizable intangible assets, accumulated amortization | 564,946 | 564,946 | 564,946 | ||
Amortizing Intangible Assets (net of amortization expense) [Roll Forward] | |||||
Amortizing intangible assets (net of amortization expense), beginning of period | 564,946 | ||||
Amortizing intangible assets (net of amortization expense), end of period | 564,946 | 564,946 | 564,946 | ||
Printing [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortizable intangible assets, gross carrying amount | 374,755 | 374,755 | |||
Unamortizable intangible assets [Abstract] | |||||
Goodwill | 2,226,837 | 2,226,837 | |||
Goodwill, accumulated amortization | 2,226,837 | 2,226,837 | |||
Estimated amortization expense for future fiscal years [Abstract] | |||||
Total | 374,755 | 374,755 | |||
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning of period | 2,226,837 | ||||
Accumulated impairment losses, beginning of period | -2,226,837 | ||||
Goodwill, beginning of period | 0 | ||||
Goodwill acquired | 0 | ||||
Impairment losses | 0 | ||||
Goodwill, gross, end of period | 2,226,837 | 2,226,837 | |||
Accumulated impairment losses, end of period | -2,226,837 | -2,226,837 | |||
Goodwill, ending balance | 0 | 0 | |||
Amortizing Intangible Assets (net of amortization expense) [Roll Forward] | |||||
Amortizing intangible assets (net of amortization expense), beginning of period | 395,206 | ||||
Accumulated impairment losses, beginning of period | 0 | ||||
Amortizing intangible assets (net of amortization expense and impairment losses), beginning of period | 395,206 | ||||
Amortizing intangible assets acquired | 0 | ||||
Impairment losses | 0 | ||||
Amortization expense | 20,451 | ||||
Amortizing intangible assets (net of amortization expense), end of period | 374,755 | 374,755 | |||
Accumulated impairment losses, end of period | 0 | 0 | |||
Amortizing intangible assets (net of amortization expense and impairment losses), end of period | 374,755 | 374,755 | |||
Office Products and Furniture [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortizable intangible assets, gross carrying amount | 744,139 | 744,139 | |||
Unamortizable intangible assets [Abstract] | |||||
Goodwill | 1,230,485 | 1,230,485 | |||
Goodwill, accumulated amortization | 0 | 0 | |||
Estimated amortization expense for future fiscal years [Abstract] | |||||
Total | 744,139 | 744,139 | |||
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning of period | 1,230,485 | ||||
Accumulated impairment losses, beginning of period | 0 | ||||
Goodwill, beginning of period | 1,230,485 | ||||
Goodwill acquired | 0 | ||||
Impairment losses | 0 | ||||
Goodwill, gross, end of period | 1,230,485 | 1,230,485 | |||
Accumulated impairment losses, end of period | 0 | 0 | |||
Goodwill, ending balance | 1,230,485 | 1,230,485 | |||
Amortizing Intangible Assets (net of amortization expense) [Roll Forward] | |||||
Amortizing intangible assets (net of amortization expense), beginning of period | 784,737 | ||||
Accumulated impairment losses, beginning of period | 0 | ||||
Amortizing intangible assets (net of amortization expense and impairment losses), beginning of period | 784,737 | ||||
Amortizing intangible assets acquired | 0 | ||||
Impairment losses | 0 | ||||
Amortization expense | 40,598 | ||||
Amortizing intangible assets (net of amortization expense), end of period | 744,139 | 744,139 | |||
Accumulated impairment losses, end of period | 0 | 0 | |||
Amortizing intangible assets (net of amortization expense and impairment losses), end of period | 744,139 | 744,139 | |||
Printing and Office Products and Furniture [Member] | |||||
Finite-Lived Intangible Assets, Net [Abstract] | |||||
Amortizable intangible assets, gross carrying amount | 1,118,894 | 1,118,894 | |||
Unamortizable intangible assets [Abstract] | |||||
Goodwill | 3,457,322 | 3,457,322 | |||
Goodwill, accumulated amortization | 2,226,837 | 2,226,837 | |||
Estimated amortization expense for future fiscal years [Abstract] | |||||
Total | 1,118,894 | 1,118,894 | |||
Goodwill [Roll Forward] | |||||
Goodwill, gross, beginning of period | 3,457,322 | ||||
Accumulated impairment losses, beginning of period | -2,226,837 | ||||
Goodwill, beginning of period | 1,230,485 | ||||
Goodwill acquired | 0 | ||||
Impairment losses | 0 | ||||
Goodwill, gross, end of period | 3,457,322 | 3,457,322 | |||
Accumulated impairment losses, end of period | -2,226,837 | -2,226,837 | |||
Goodwill, ending balance | 1,230,485 | 1,230,485 | |||
Amortizing Intangible Assets (net of amortization expense) [Roll Forward] | |||||
Amortizing intangible assets (net of amortization expense), beginning of period | 1,179,943 | ||||
Accumulated impairment losses, beginning of period | 0 | ||||
Amortizing intangible assets (net of amortization expense and impairment losses), beginning of period | 1,179,943 | ||||
Amortizing intangible assets acquired | 0 | ||||
Impairment losses | 0 | ||||
Amortization expense | 61,049 | ||||
Amortizing intangible assets (net of amortization expense), end of period | 1,118,894 | 1,118,894 | |||
Accumulated impairment losses, end of period | 0 | 0 | |||
Amortizing intangible assets (net of amortization expense and impairment losses), end of period | $1,118,894 | $1,118,894 | |||
Syscan [Member] | Customer Relationships [Member] | |||||
Unamortizable intangible assets [Abstract] | |||||
Amortization period | 20 years |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], Relate Party Debt Conversion to Preferred Stock [Member], USD $) | 0 Months Ended |
In Millions, unless otherwise specified | Jun. 15, 2015 |
Subsequent Event [Member] | Relate Party Debt Conversion to Preferred Stock [Member] | |
Subsequent Event [Line Items] | |
Related party debt to be converted amount | $2.50 |
Dividend rate if income after taxes is less than $1.0 million (in hundredths) | 0.00% |
Dividend rate if income after taxes is greater than $1.0 million (in hundredths) | 6.00% |
Income after tax theshold | 1 |
Reduction in liabilies resulting from conversion | 2.5 |
Increase in equity resulting from conversion | 0.1 |
Dividend amount triggered if income after taxes is less than $1.0 million | 0 |
Dividend amount triggered if income after taxes is greater than $1.0 million | 0.2 |
Increase in cash outflow if $1.0 million target achieved | 0.1 |
Decrease in cash outflow if $1.0 million target achieved | $0.10 |