Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Mar. 21, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Entity Registrant Name | 'Sutron Corp | ' |
Document Type | '10-K | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | ' | 5,066,009 |
Entity Public Float | ' | $20,756,486 |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000728331 | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Period End Date | 31-Dec-13 | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Current Assets: | ' | ' |
Cash and cash equivalents | $8,283,092 | $7,576,374 |
Restricted cash and cash equivalents | 850,279 | 810,396 |
Accounts receivable, net | 5,863,636 | 5,771,013 |
Inventory | 4,876,641 | 4,291,505 |
Prepaid items and other assets | 446,749 | 248,546 |
Income taxes receivable | 106,897 | 1,202,709 |
Deferred income taxes | 664,558 | 429,000 |
Total Current Assets | 21,091,852 | 20,329,543 |
Property and Equipment, Net | 1,532,144 | 1,698,218 |
Other Assets | ' | ' |
Goodwill | 4,452,152 | 3,768,435 |
Intangibles, net of amortization | 907,495 | 781,633 |
Deferred tax asset | 77,357 | 198,000 |
Other assets | 81,885 | 95,217 |
Total Assets | 28,142,885 | 26,871,046 |
Current Liabilities: | ' | ' |
Accounts payable | 1,170,446 | 1,300,917 |
Accrued payroll | 468,454 | 464,942 |
Deferred revenue | 686,029 | 531,397 |
Other accrued expenses | 1,520,261 | 1,134,279 |
Billings in excess of costs and estimated earnings | 388,687 | 306,148 |
Total Current Liabilities | 4,233,877 | 3,737,683 |
Long-Term Liabilities | ' | ' |
Deferred rent | 890,391 | 1,006,893 |
Total Liabilities | 5,124,268 | 4,744,576 |
Stockholders’ Equity | ' | ' |
Common stock, $0.01 par value, 12,000,000 shares authorized; 5,066,009 and 5,039,632 issued and outstanding | 50,660 | 50,397 |
Additional paid-in capital | 5,340,277 | 5,185,325 |
Retained earnings | 17,869,256 | 17,073,351 |
Accumulated other comprehensive loss | -241,576 | -182,603 |
Total Stockholders’ Equity | 23,018,617 | 22,126,470 |
Total Liabilities and Stockholders’ Equity | $28,142,885 | $26,871,046 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 5,066,009 | 5,039,632 |
Common stock, shares outstanding | 5,066,009 | 5,039,632 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Net sales and revenues | $27,208,304 | $25,229,519 | $20,222,369 |
Cost of sales and revenues | 16,424,127 | 15,212,433 | 12,326,085 |
Gross profit | 10,784,177 | 10,017,086 | 7,896,284 |
Operating expenses: | ' | ' | ' |
Selling, general and administrative expenses | 6,124,930 | 5,275,676 | 3,773,942 |
Research and development expenses | 3,438,250 | 3,384,393 | 1,993,183 |
Total operating expenses | 9,563,180 | 8,660,069 | 5,767,125 |
Operating income | 1,220,997 | 1,357,017 | 2,129,159 |
Financing income, net | 46,892 | 74,783 | 101,515 |
Income before income taxes | 1,267,889 | 1,431,800 | 2,230,674 |
Income tax expense | 471,984 | 289,000 | 710,000 |
Net income | 795,905 | 1,142,800 | 1,520,674 |
Net income per share: | ' | ' | ' |
Basic income per share (in Dollars per share) | $0.16 | $0.24 | $0.33 |
Diluted income per share (in Dollars per share) | $0.16 | $0.23 | $0.31 |
Comprehensive income (loss): | ' | ' | ' |
Net income | 795,905 | 1,142,800 | 1,520,674 |
Foreign currency translation adjustments | -58,973 | -6,094 | -127,817 |
Comprehensive income | $736,932 | $1,136,706 | $1,392,857 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Balance at Dec. 31, 2010 | $45,757 | $3,732,184 | ' | ($48,692) | $18,139,126 |
Balance (in Shares) at Dec. 31, 2010 | 4,575,632 | ' | ' | ' | ' |
Net income | ' | ' | 1,520,674 | ' | 1,520,674 |
Cumulative translation adjustment | ' | ' | ' | -127,817 | -127,817 |
Stock based compensation | ' | 103,216 | ' | ' | 103,216 |
Stock options exercised | 1,290 | 338,428 | ' | ' | 339,718 |
Stock options exercised (in Shares) | 129,000 | ' | ' | ' | ' |
Balance at Dec. 31, 2011 | 47,047 | 4,173,828 | 15,930,551 | -176,509 | 19,974,917 |
Balance (in Shares) at Dec. 31, 2011 | 4,704,632 | ' | ' | ' | ' |
Net income | ' | ' | 1,142,800 | ' | 1,142,800 |
Cumulative translation adjustment | ' | ' | ' | -6,094 | -6,094 |
Stock based compensation | ' | 137,554 | ' | ' | 137,554 |
Stock options exercised | 3,350 | 873,943 | ' | ' | 877,293 |
Stock options exercised (in Shares) | 335,000 | ' | ' | ' | ' |
Balance at Dec. 31, 2012 | 50,397 | 5,185,325 | 17,073,351 | -182,603 | 22,126,470 |
Balance (in Shares) at Dec. 31, 2012 | 5,039,632 | ' | ' | ' | 5,039,632 |
Net income | ' | ' | 795,905 | ' | 795,905 |
Cumulative translation adjustment | ' | ' | ' | -58,973 | -58,973 |
Issuance of stock | 191 | ' | ' | ' | 191 |
Issuance of stock (in Shares) | 19,125 | ' | ' | ' | ' |
Stock based compensation | ' | 119,685 | ' | ' | 119,685 |
Stock options exercised | 72 | 35,267 | ' | ' | 35,339 |
Stock options exercised (in Shares) | 7,252 | ' | ' | ' | ' |
Balance at Dec. 31, 2013 | $50,660 | $5,340,277 | $17,869,256 | ($241,576) | $23,018,617 |
Balance (in Shares) at Dec. 31, 2013 | 5,066,009 | ' | ' | ' | 5,066,009 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Cash Flows from Operating Activities: | ' | ' | ' |
Net income | $795,905 | $1,142,800 | $1,520,674 |
Noncash items included in net income: | ' | ' | ' |
Depreciation | 382,996 | 315,338 | 267,741 |
Amortization of intangible assets | 176,138 | 78,367 | 0 |
Provision for bad debt | -13,509 | 230,485 | 44,000 |
Stock based compensation | 119,685 | 137,554 | 103,216 |
Deferred income taxes | -114,451 | -150,000 | -34,000 |
(Gain) on disposal of property | 0 | 0 | -2,650 |
Tax benefit from stock options exercised | -30,408 | -603,993 | -211,638 |
Change in current assets and liabilities: | ' | ' | ' |
Accounts receivable | 3,739 | 752,936 | -1,417,459 |
Inventory | -418,037 | -770,975 | 238,172 |
Prepaid items and other assets | -194,936 | 73,823 | 238,091 |
Income taxes receivable | 1,135,220 | -214,770 | -172,305 |
Accounts payable | -130,471 | 501,910 | -320,677 |
Deferred revenues | 154,632 | 382,602 | 126,468 |
Accrued expenses | 345,909 | -353,875 | -248,779 |
Billings in excess of costs and estimated earnings | 82,539 | 105,133 | -160,684 |
Deferred rent | -116,502 | -120,967 | -106,525 |
Net Cash Provided (Used) by Operating Activities | 2,178,449 | 1,506,368 | -136,355 |
Cash Flows from Investing Activities: | ' | ' | ' |
Restricted cash and cash equivalents | -39,883 | -50,359 | 36,152 |
Purchase of property and equipment | -207,407 | -179,131 | -85,650 |
Business acquisition | -1,214,330 | -4,241,914 | 0 |
Certificate of deposit | 0 | 924,294 | -5,164 |
Other assets | 13,332 | 8,374 | 5,178 |
Proceeds from the sale of property and equipment | 0 | 0 | 2,650 |
Net Cash Provided (Used) by Investing Activities | -1,448,288 | -3,538,736 | -46,834 |
Cash Flows from Financing Activities: | ' | ' | ' |
Tax benefit from stock options exercised | 30,408 | 603,993 | 211,638 |
Proceeds from stock options exercised | 5,122 | 273,300 | 128,080 |
Net Cash Provided (Used) by Financing Activities | 35,530 | 877,293 | 339,718 |
Effect of exchange rate changes on cash and cash equivalents | -58,973 | -6,094 | -127,817 |
Net increase (decrease) in cash and cash equivalents | 706,718 | -1,161,169 | 28,712 |
Cash and Cash Equivalents, beginning of year | 7,576,374 | 8,737,543 | 8,708,831 |
Cash and Cash Equivalents, end of year | $8,283,092 | $7,576,374 | $8,737,543 |
1_ORGANIZATION_AND_BASIS_OF_PR
1. ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2013 | |
Disclosure Text Block [Abstract] | ' |
Business Description and Basis of Presentation [Text Block] | ' |
1. ORGANIZATION AND BASIS OF PRESENTATION | |
Sutron Corporation (“Company”) was incorporated on December 30, 1975, under the General Laws of the Commonwealth of Virginia. The Company is a leading provider of real-time data collection and control products, systems and applications software and professional services in the hydrological, meteorological and oceanic monitoring markets. The Company’s products include data loggers, satellite transmitters/loggers, sensors and system and applications software. Customers consist of a diversified base of Federal, state, local and foreign government agencies, universities, engineering firms, hydropower companies and aviation companies. | |
The Company operates from its headquarters located in Sterling, Virginia. The Company has branch offices located throughout the United States and a branch office in India. The Company has established a wholly-owned subsidiary, Sutron HydroMet Systems, Private Limited, which is located in New Delhi, India. | |
Basis of Presentation | |
The consolidated financial statements include the accounts of Sutron and its wholly-owned subsidiary, Sutron HydroMet Systems, Private Ltd. All intercompany balances and transactions have been eliminated. | |
2_SUMMARY_OF_SIGNIFICANT_ACCOU
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Significant Accounting Policies [Text Block] | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |
Revenue Recognition | |
Revenue for the Company’s products, consisting of both equipment and software, is recognized upon shipment, delivery, installation or customer acceptance of the product, as agreed in the customer order or contract. Sutron does sell its software products without the related equipment although software products are integral to systems. The Company’s typical system requires no significant production, modification or customization of the software or hardware. For complex systems, revenue is deferred until customer acceptance. The Company does provide customer discounts and does allow for product returns. The Company does not do consignment sales or bill and hold arrangements. Revenue reflects reductions due to discounts and product returns. Product returns have historically been insignificant in amount. | |
The Company’s sales arrangements for systems often include services in addition to equipment and software. These services could include equipment integration, software customization, installation, maintenance, training, and customer support. For sales arrangements that include bundled hardware, software and services, Sutron accounts for any undelivered service offering as a separate element of a multiple-element arrangement. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately. Revenue for these services is typically recognized ratably over the period benefited or when the services are complete. | |
The Company uses the percentage of completion method for recognizing revenue and profits when it performs on fixed price contracts that extend over a number of years. Under the percentage of completion method, revenue and profits are recorded as costs are incurred based on estimates of total sales value and costs at completion where total profit can be estimated with reasonable accuracy and ultimate realization is reasonably assured. Profit estimates are revised periodically based upon changes and facts, and any losses on contracts are recognized immediately. Contracts may contain provisions to earn incentive and award fees if targets are achieved. Incentive and award fees that can be reasonably estimated are recorded over the performance period of the contract. Incentive and award fees that cannot be reasonably estimated are recorded when awarded. The Company recognizes revenue from time-and-materials contracts to the extent of billable rates, times hours delivered, plus direct materials costs incurred. Some of the contracts include provisions to withhold a portion of the contract value as retainage. The Company’s policy is to take into revenue the full value of the contract, including any retainage, as it performs against the contract. Contract costs include allocated indirect costs. Anticipated losses on all contracts are recognized as soon as they become known. Costs on contracts in excess of related billings are reflected as unbilled receivables and are included in accounts receivable. Billings in excess of costs are reflected as a liability. | |
Cash and Cash Equivalents | |
For purposes of the consolidated statements of cash flows, cash equivalents include time deposits and all highly liquid debt instruments with original maturities of three months or less. Interest paid approximated $467, $900 and $900 for the years ended December 31, 2013, 2012 and 2011. Income taxes paid approximated $6,000, $366,000 and $706,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Foreign income tax expense approximated $36,000, $328,000 and $33,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Restricted Cash | |
For the years ended December 31, 2013 and 2012, the Company had submitted bid bonds or performance bonds on both official tenders or awarded contracts. At December 31, 2013 and 2012, cash in the amount of $850,279 and $810,396, respectively, was restricted for bid or performance bonds. | |
Accounts Receivable | |
Based on management’s evaluation of uncollected accounts receivable at the end of each year, bad debts are provided for utilizing the allowance method. Bad debt expense, net of recoveries, for the years ending December 31, 2013, 2012, and 2011 was $(13,509), $230,485 and $44,000, respectively. | |
Inventory | |
Inventory is stated at the lower of cost or market. Electronic components costs, work in process and finished goods costs consist of materials, labor and overhead and are recorded at a standard cost that approximates the average cost method. The Company provides allowances on inventories for any material that has become obsolete or may become unsellable based on estimates of future demand and sale price in the market. | |
Property and Equipment | |
Property and equipment is recorded at cost and depreciated over their estimated useful lives, ranging from three to ten years, using the straight-line method for financial statement purposes, and the straight-line and accelerated methods for income tax purposes. Expenditures for maintenance, repairs, and improvements that do not materially extend the useful lives of the assets are charged to earnings as incurred. When items of property and equipment are disposed of, the cost of the asset and the related accumulated depreciation are removed from the accounts. Any gain or loss resulting from the removal from service is taken into the current period earnings. | |
Goodwill | |
Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed when a business is acquired. Goodwill is not amortized but is evaluated for potential impairment at least annually by comparing the fair value of a reporting unit to its carrying value including goodwill recorded by the reporting unit. During the year if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value, an interim goodwill analysis would be performed. If the carrying value exceeds the fair value, impairment is measured by comparing the implied fair value of the goodwill to its carrying value, and any impairment determined is recorded in the current period. | |
On an annual basis the Company performs the impairment assessment for goodwill at the reporting unit level. The Company completed its annual impairment analysis during the fourth quarter of each of the years ended December 31, 2013, 2012 and 2011 and determined that there was no impairment of goodwill as of each balance sheet date. | |
Intangible Assets | |
Intangible assets are comprised of customer lists, software, and existing product technology with estimated useful lives of seven, five and five years, respectively. Intangible assets are amortized over their estimated lives using the straight-line method. | |
Impairment of Long-Lived Assets | |
Long-lived assets are evaluated for impairment whenever events or changes in circumstances have indicated that an asset may not be recoverable and are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. If the sum of the projected undiscounted cash flows (excluding interest charges) is less than the carrying value of the assets, the assets will be written down to the estimated fair value and such loss is recognized in income from continuing operations in the period in which the determination is made. Management determined that no impairment of long-lived assets existed as of December 31, 2013 and 2012. | |
Income Taxes | |
The Company utilizes an asset and liability approach to accounting for income taxes. The objective is to recognize the amount of income taxes payable or refundable in the current year based on the Company’s income tax return and the deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The asset and liability method accounts for deferred income taxes by applying enacted statutory rates to temporary differences, the difference between financial statement amounts and tax basis of assets and liabilities. The resulting deferred tax liabilities or assets are classified as current or noncurrent based on the classification of the related asset or liability. Deferred income tax liabilities or assets are adjusted to reflect changes in tax laws or rates in the year of enactment. | |
Management has evaluated the Company’s tax positions and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. With few exceptions, the Company is no longer subject to income tax examinations by the U.S. federal, state or local tax authorities for years before 2010. | |
Capital | |
The Company has 12,000,000, $.01 par value, shares of authorized common stock. There were 5,066,009 and shares issued and outstanding at December 31, 2013 and 5,039,632 shares issued and outstanding at December 31, 2012. | |
Foreign Currency Translation | |
Results of operations for the Company’s foreign branch office and foreign wholly-owned subsidiary are translated from the designated functional currency to the U.S. dollar using average exchange rates during the period, while assets and liabilities of the foreign branch office are translated at the exchange rate in effect at the reporting date. Resulting gains or losses from translating foreign currency financial statements are included in accumulated other comprehensive loss. | |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could vary from the estimates that were used. | |
Earnings per Share | |
The Company presents two categories of earnings per share, basic EPS and diluted EPS. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. | |
Stock Compensation Plans | |
The Company measures and recognizes compensation expense for all share-based payment awards to employees and directors based on estimated fair values. | |
Research and Development | |
Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other employee related expenses associated with product development. Research and development expenses also include third-party development and programming costs. | |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires standard presentation of an unrecognized tax benefit when a carryforward related to net operating losses or tax credits exist. This update is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2013. The adoption of this ASU is not expected to have an impact on our financial position, results of operations or cash flows. | |
In July 2012, the FASB issued ASU 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," which provides entities with the option to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If the entity concludes that it is more likely than not that the asset is impaired, it is required to determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with Topic 350. If the entity concludes otherwise, no further quantitative assessment is required. ASU 2012-02 is effective on January 1, 2013. The adoption of ASU 2012-02 did not have a material impact on the Company’s consolidated financial statements. | |
3_ACCOUNTS_RECEIVABLE
3. ACCOUNTS RECEIVABLE | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | ' | ||||||||
3. ACCOUNTS RECEIVABLE | |||||||||
Accounts receivable at December 31, consists of the following: | |||||||||
2013 | 2012 | ||||||||
Trade receivables | $ | 4,335,205 | $ | 4,869,164 | |||||
Costs in excess of billings and estimated earnings | 1,383,418 | 702,725 | |||||||
Contract retainage | 249,013 | 314,124 | |||||||
Allowance for doubtful accounts | (104,000 | ) | (115,000 | ) | |||||
Totals | $ | 5,863,636 | $ | 5,771,013 | |||||
4_INVENTORY
4. INVENTORY | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Inventory Disclosure [Text Block] | ' | ||||||||
4. INVENTORY | |||||||||
Inventory consists of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Electronic components | $ | 2,556,827 | $ | 1,982,088 | |||||
Work in process | 1,936,202 | 1,937,245 | |||||||
Finished goods | 1,109,491 | 1,098,135 | |||||||
Allowance for obsolete inventory | (725,879 | ) | (725,963 | ) | |||||
Totals | $ | 4,876,641 | $ | 4,291,505 | |||||
5_PROPERTY_AND_EQUIPMENT
5. PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment Disclosure [Text Block] | ' | ||||||||
5. PROPERTY AND EQUIPMENT | |||||||||
A summary of property and equipment at December 31 is as follows: | |||||||||
2013 | 2012 | ||||||||
Furniture, fixtures and equipment | $ | 2,581,754 | $ | 2,395,252 | |||||
Vehicles | 253,176 | 253,176 | |||||||
Leasehold improvements | 1,591,537 | 1,563,857 | |||||||
Totals | $ | 4,426,467 | $ | 4,212,285 | |||||
Accumulated depreciation at December 31 is as follows: | |||||||||
2013 | 2012 | ||||||||
Furniture, fixtures and equipment | $ | 1,929,301 | $ | 1,710,419 | |||||
Vehicles | 242,726 | 237,626 | |||||||
Leasehold improvements | 722,296 | 566,022 | |||||||
Totals | $ | 2,894,323 | $ | 2,514,067 | |||||
Property and Equipment, Net | $ | 1,532,144 | $ | 1,698,218 | |||||
Depreciation expense totaled $382,996, $315,338 and $267,741 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||
6_GOODWILL_AND_INTANGIBLES
6. GOODWILL AND INTANGIBLES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Intangible Assets Disclosure [Text Block] | ' | ||||||||||||
6. GOODWILL AND INTANGIBLES | |||||||||||||
The change in carrying value of goodwill for the year ended December 31,2013 is as follows: | |||||||||||||
Balance as of December 31, 2011 | $ | 570,150 | |||||||||||
Acquisition of IPS MeteoStar | 3,198,285 | ||||||||||||
Balance as of December 31, 2012 | $ | 3,768,435 | |||||||||||
Acquisition of Sabio Instruments | 683,717 | ||||||||||||
Balance as of December 31, 2013 | $ | 4,452,152 | |||||||||||
The carrying values of the Company's amortizable acquired intangible assets are as follows: | |||||||||||||
December 31, 2013 | |||||||||||||
Gross | Net | ||||||||||||
Carrying | Accumulated | Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
Customer relationships | 829,000 | (169,084 | ) | 659,916 | |||||||||
Acquired technology | 333,000 | (85,421 | ) | 247,579 | |||||||||
$ | 1,162,000 | $ | (254,505 | ) | $ | 907,495 | |||||||
December 31, 2012 | |||||||||||||
Gross | Net | ||||||||||||
Carrying | Accumulated | Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
Customer relationships | 659,000 | (54,917 | ) | 604,083 | |||||||||
Acquired technology | 201,000 | (23,450 | ) | 177,550 | |||||||||
$ | 860,000 | $ | (78,367 | ) | $ | 781,633 | |||||||
Amortization expense related to intangible assets was approximately $176,138 and $78,367 for the years ended December 31, 2013 and 2012, respectively. | |||||||||||||
The weighted average remaining amortization period by major asset class as of December 31, 2013 is as follows: | |||||||||||||
(In years) | |||||||||||||
Acquired technology | 3.7 | ||||||||||||
Customer relationships | 5.6 | ||||||||||||
The estimated future amortization of acquired intangible assets as of December 31, 2013 is as follows: | |||||||||||||
2014 | $ | 185,029 | |||||||||||
2015 | 185,029 | ||||||||||||
2016 | 185,029 | ||||||||||||
2017 | 161,579 | ||||||||||||
2018 | 123,269 | ||||||||||||
Thereafter | 67,560 | ||||||||||||
$ | 907,495 | ||||||||||||
7_CONTRACTS_IN_PROGRESS
7. CONTRACTS IN PROGRESS | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Contracts In Progress [Abstract] | ' | ||||||||
Contracts In Progress [Text Block] | ' | ||||||||
7. CONTRACTS IN PROGRESS | |||||||||
A summary of contracts in progress at December 31 is as follows: | |||||||||
2013 | 2012 | ||||||||
Costs incurred to date | $ | 6,471,964 | $ | 7,577,349 | |||||
Estimated earnings | 3,052,272 | 4,135,820 | |||||||
Revenue recognized to date | 9,524,236 | 11,713,169 | |||||||
Billings to date | (8,529,505 | ) | (11,316,592 | ) | |||||
$ | 994,731 | $ | 396,577 | ||||||
Included in the accompanying balance sheets: | |||||||||
Costs in excess of billings on uncompleted contracts (unbilled receivables) | $ | 1,383,418 | $ | 702,725 | |||||
Billings in excess of costs on uncompleted contracts | (388,687 | ) | (306,148 | ) | |||||
$ | 994,731 | $ | 396,577 | ||||||
8_LINE_OF_CREDIT
8. LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2013 | |
Debt Disclosure [Abstract] | ' |
Debt Disclosure [Text Block] | ' |
8. LINE OF CREDIT | |
The Company has a $4,000,000 line of credit with a commercial bank. Borrowings under the line of credit shall be used towards working capital and the issuance of stand-by letters of credit. The line of credit is collateralized by substantially all of the assets of the Company. The maturity date of the credit facility is December 20, 2015. Borrowings under the agreement will bear interest payable monthly based on the bank’s prime rate. | |
Under the terms of the loan agreement, the Company is required to maintain usual and customary covenants, including, but not limited to a financial covenant with regard to Tangible Net Worth. As of December 31, 2013, the Company was in full compliance with all covenants contained in the agreement and remains so as of the date of this report. | |
As of December 31, 2013 and 2012, the Company did not have an outstanding balance under the terms of the line of credit agreement. | |
The Company maintains letters of credit to satisfy bid or performance guarantees under certain contracts. As of December 31, 2013 and 2012, the commercial bank had issued stand-by letters of credit on behalf of the Company in the amount of $1,663,000 and $1,094,162, respectively. The amount available under the line of credit was reduced by this amount. | |
9_OTHER_ACCRUED_EXPENSES
9. OTHER ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | ' | ||||||||
9. OTHER ACCRUED EXPENSES | |||||||||
Components of other accrued expenses consist of the following at December 31: | |||||||||
2013 | 2012 | ||||||||
Accrued vacation pay | $ | 488,446 | $ | 480,307 | |||||
Accrued warranty costs | 217,000 | 299,000 | |||||||
Customer advance payments | 696,970 | 214,921 | |||||||
Other accruals | 117,845 | 140,051 | |||||||
Totals | $ | 1,520,261 | $ | 1,134,279 | |||||
10_ACCRUED_WARRANTY_COSTS
10. ACCRUED WARRANTY COSTS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Product Warranties Disclosures [Abstract] | ' | ||||
Product Warranty Disclosure [Text Block] | ' | ||||
10. ACCRUED WARRANTY COSTS | |||||
The Company warranties its products for up to two years and estimated warranty costs are based upon management’s best estimate of the amounts necessary to settle future and existing claims on equipment sold as of the balance sheet date. Factors considered include actual past experience of product returns and the related estimated cost of labor and material to make the necessary repairs as well as technological advances and enhanced design and manufacturing processes. If actual future product return rates or the actual costs of material and labor differ from the estimates, adjustments to the accrued warranty liability are made. Changes to the product warranty reserve are identified below and represent adjustments to the reserve based on management estimates and other factors as noted above: | |||||
Balance as of December 31, 2010 | $ | 311,000 | |||
Reserve adjustment | (41,000 | ) | |||
Balance as of December 31, 2011 | 270,000 | ||||
Reserve adjustment | 29,000 | ||||
Balance as of December 31, 2012 | 299,000 | ||||
Reserve adjustment | (82,000 | ) | |||
Balance as of December 31, 2013 | $ | 217,000 | |||
11_LEASE_OBLIGATIONS
11. LEASE OBLIGATIONS | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Commitments Disclosure [Text Block] | ' | ||||
11. LEASE OBLIGATIONS | |||||
The Company leases its facilities and accounts for those leases as operating leases. For facility leases that contain rent escalations or rent concession provisions, the Company records the total rent payable during the lease term on a straight-line basis over the term of the lease. The Company records the difference between the rent paid and the straight-line rent as a deferred rent liability. | |||||
Leasehold improvements funded by the landlord incentives or allowances are recorded as leasehold improvement assets and a deferred rent liability which is amortized as a reduction of rent expense over the term of the lease. | |||||
The Company is obligated under various non-cancellable operating leases for office facilities. Future minimum lease payments under non-cancellable lease agreements with initial terms of one year or more are as follows: | |||||
The following is a schedule of future minimum lease payments by year: | |||||
Years ending December 31: | |||||
2014 | $ | 641,856 | |||
2015 | 592,520 | ||||
2016 | 606,049 | ||||
2017 | 595,284 | ||||
2018 | 609,906 | ||||
Thereafter | 403,358 | ||||
Total | $ | 3,448,973 | |||
Total rent expense under non-cancellable operating leases was $677,917, $522,965 and $410,773 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||
12_INCOME_TAXES
12. INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Income Tax Disclosure [Text Block] | ' | ||||||||||||
12. INCOME TAXES | |||||||||||||
The income tax expense charged to operations for the years ended December 31, were as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic income tax expense | $ | 550,608 | $ | 111,000 | $ | 711,000 | |||||||
Foreign income tax expense | 35,827 | 328,000 | 33,000 | ||||||||||
Deferred tax benefit | (114,451 | ) | (150,000 | ) | (34,000 | ) | |||||||
Total income tax expense | $ | 471,984 | $ | 289,000 | $ | 710,000 | |||||||
Deferred tax assets, are comprised of the following at December 31: | |||||||||||||
2013 | 2012 | ||||||||||||
Accrued vacation and warranty | $ | 228,613 | $ | 304,000 | |||||||||
Stock compensation additional paid in capital | 203,205 | 218,000 | |||||||||||
Accounts receivable and inventory allowances | 115,603 | 125,000 | |||||||||||
Depreciation | 17,413 | - | |||||||||||
Research Tax Credit | 320,342 | - | |||||||||||
Intangibles | - | 19,000 | |||||||||||
Gross deferred tax assets | 885,176 | 666,000 | |||||||||||
Intangibles amortization | (143,261 | ) | - | ||||||||||
Gross deferred tax liability – depreciation | - | (39,000 | ) | ||||||||||
Net deferred tax assets | $ | 741,915 | $ | 627,000 | |||||||||
The net deferred tax asset amount mentioned above has been classified on the consolidated balance sheets as of December 31, as follows: | |||||||||||||
2013 | 2012 | ||||||||||||
Current | $ | 664,558 | $ | 429,000 | |||||||||
Non-current | 77,357 | 198,000 | |||||||||||
Net deferred tax assets | $ | 741,915 | $ | 627,000 | |||||||||
The realization of the deferred tax assets is dependent on future taxable earnings. The Company has not provided for a deferred tax asset valuation allowance due to their current and anticipated future earnings. | |||||||||||||
Reconciliation of the amount of reported income tax expense and the amount computed by multiplying the applicable statutory Federal income tax rate is as follows: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before income taxes | $ | 1,267,889 | $ | 1,431,800 | $ | 2,230,674 | |||||||
Applicable statutory tax rate | 34 | % | 34 | % | 34 | % | |||||||
Computed “expected” Federal income tax expense | 431,082 | 487,000 | 758,000 | ||||||||||
Adjustments to Federal income tax resulting from: | |||||||||||||
State income tax expense | 23,104 | 24,000 | 99,000 | ||||||||||
Tax credits and other | 17,798 | (222,000 | ) | (147,000 | ) | ||||||||
Income tax expense | $ | 471,984 | $ | 289,000 | $ | 710,000 | |||||||
13_MAJOR_CUSTOMERS
13. MAJOR CUSTOMERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Major Customers [Abstract] | ' | ||||||||||||||||||||||||
Major Customers [Text Block] | ' | ||||||||||||||||||||||||
13. MAJOR CUSTOMERS | |||||||||||||||||||||||||
Net sales for the years ended December 31, 2013, 2012 and 2011, include sales to the following major customers, together with the receivables due from the major customers: | |||||||||||||||||||||||||
Net Sales | % to Total Net Sales | ||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
U.S. Government Agencies | $ | 5,373,652 | $ | 5,305,622 | $ | 5,778,656 | 20 | % | 21 | % | 29 | % | |||||||||||||
Ministry of Energy and Water, Afghanistan | 448,988 | 2,750,143 | 2,268,219 | 2 | % | 11 | % | 11 | % | ||||||||||||||||
$ | 5,822,640 | $ | 8,055,765 | $ | 8,046,875 | 22 | % | 32 | % | 40 | % | ||||||||||||||
Accounts Receivable | % of Total Accounts | ||||||||||||||||||||||||
Amount at December 31, | Receivable at December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
U.S. Government Agencies | $ | 478,826 | $ | 211,639 | $ | 1,460,810 | 8 | % | 4% | 22 | % | ||||||||||||||
Ministry of Energy and Water, Afghanistan | 440,935 | 1,325,693 | 1,447,536 | 8 | % | 23% | 21 | % | |||||||||||||||||
$ | 919,761 | $ | 1,537,332 | $ | 2,908,346 | 16 | % | 27% | 43 | % | |||||||||||||||
Because of the nature of the Company’s business, the major customers may vary between years. | |||||||||||||||||||||||||
14_STOCK_BASED_COMPENSATION
14. STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | ' | ||||||||||||||||
14. STOCK BASED COMPENSATION | |||||||||||||||||
The Company’s Amended and Restated 1996, 1997 and 2002 Stock Option Plans (the “Stock Option Plans”) provide for the issuance of non-qualified stock options to employees, officers and directors. The Company’s 2010 Equity Incentive Plan provides for the grant of stock options, stock appreciation rights, restricted stock, stock units, unrestricted stock, dividend equivalent rights and cash awards. All plans are administered by the compensation committee of the Board of Directors who select persons to receive awards and determines the number of shares subject to each award and the terms, conditions, performance measures and other provisions of the award. | |||||||||||||||||
The Company has granted stock options under the Stock Option Plans to key employees and directors for valuable services provided to the Company. Under the 1996 Plan, the Company authorized 260,000 shares, all of which have been granted. The Company authorized 60,000 shares under the 1997 Plan, all of which have been granted. Under the 2002 Stock Option Plan, the Company authorized 650,000 shares, 562,059 of which have been granted. The 1996, 1997 and 2002 Plans remain in effect until such time as no shares of Stock remain available for issuance under the Plans and the Company and the person awarded options have no further rights or obligations under the Plans. Under the 2010 Equity Incentive Plan, the Company authorized 500,000 shares, 65,246 of which have been granted as restricted stock units. The ability to make awards under the 2010 Plan will terminate in May 2020. Stock options under all of the plans may be granted at not less than 100 percent of the fair market value at the grant date. All outstanding options have a ten-year term from the date of grant. Cancelled or expired options can be reissued. | |||||||||||||||||
The Company measures and recognizes compensation expense for all stock-based payments at fair value. The Company recognizes stock-based compensation costs on a straight-line basis over the requisite service period of the award, which is generally the option or restricted stock unit (RSU) vesting term. There were no stock options granted during the twelve months ended December 31, 2013 or December 31, 2012. There were 9,000 RSU’s granted to key employees and directors during the twelve months ended December 31, 2013 however 13,125 RSU’s failed to meet their goals and did not vest. There were 79,500 RSU’s granted to key employees and directors during the twelve months ended December 31, 2012 however 10,125 RSU’s failed to meet their goals and did not vest. Stock based compensation expense relating to stock option awards and RSU’s for the years ended December 31, 2013, 2012 and 2011 was $119,685, $137,554 and $103,216, respectively. These expenses were included in the cost of sales and selling, general and administrative lines of the Consolidated Statements of Operations. Unamortized stock compensation expense as of December 31, 2013 relating to stock options totaled approximately $16,000 and these costs will be expensed over a weighted average period of approximately 1.5 years. Unamortized stock compensation expense as of December 31, 2013 relating to RSU’s totaled approximately $114,000 and these costs will be expensed over a weighted average period of approximately one year. | |||||||||||||||||
For stock options granted during the years ended December 31, 2011, the Company used the Black-Scholes model to estimate the fair value of the options. The Black-Scholes model estimates the per share fair value of an option on its date of grant based on the option’s exercise price; the price of the underlying stock on the date of grant; the estimated dividend yield; a “risk-free” interest rate; the estimated option term; and the expected volatility. For the “risk-free” interest rate, the Company uses a United States Treasury Bond due in the number of years equal to the option’s expected term. The estimated option term is based upon the contractual term of the option. To determine expected volatility, the Company analyzes the historical volatility of its stock. The valuation assumptions used are shown below: | |||||||||||||||||
2011 | |||||||||||||||||
Risk free rate | 2.66 | - | 3.19 | % | |||||||||||||
Expected volatility | 39 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected term in years | 10 | ||||||||||||||||
The following table summarizes stock option activity under the Stock Option Plans for the last three years: | |||||||||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at beginning of period | 155,978 | $ | 6.45 | 5.55 | $ | 33,991 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | (7,252 | ) | 0.68 | - | 32,489 | ||||||||||||
Forfeited or expired | (35,000 | ) | 6.97 | - | - | ||||||||||||
Outstanding at end of period | 113,726 | $ | 6.66 | 4.94 | $ | 1,600 | |||||||||||
Exercisable at end of period | 99,726 | $ | 6.68 | 4.73 | $ | 1,600 | |||||||||||
Nonvested at end of period | 14,000 | $ | 6.47 | 6.38 | $ | - | |||||||||||
2012 | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at beginning of period | 492,978 | $ | 2.61 | 2.93 | $ | 1,925,176 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | (335,000 | ) | 0.82 | - | 1,493,031 | ||||||||||||
Forfeited or expired | (2,000 | ) | 4.45 | - | - | ||||||||||||
Outstanding at end of period | 155,978 | $ | 6.45 | 5.55 | $ | 33,991 | |||||||||||
Exercisable at end of period | 134,978 | $ | 6.45 | 5.27 | $ | 33,991 | |||||||||||
Nonvested at end of period | 21,000 | $ | 6.47 | 7.38 | $ | - | |||||||||||
2011 | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at beginning of period | 634,252 | $ | 2.37 | 3.59 | $ | 2,747,390 | |||||||||||
Granted | 18,559 | 6.86 | - | - | |||||||||||||
Exercised | (129,000 | ) | 0.99 | - | (529,095 | ) | |||||||||||
Forfeited or expired | (30,833 | ) | 6.94 | - | - | ||||||||||||
Outstanding at end of period | 492,978 | $ | 2.61 | 2.93 | $ | 1,925,176 | |||||||||||
Exercisable at end of period | 446,908 | $ | 2.2 | 2.42 | $ | 1,925,176 | |||||||||||
Nonvested at end of period | 46,070 | $ | 6.62 | 7.88 | $ | - | |||||||||||
For RSU’s granted during the year ended December 31, 2013 and 2012, fair value was determined based on the market value of the stock on the date of grant and the estimated probability of meeting the certain individual and company goals. The following tables summarize RSU activity under the Equity Incentive Plan for the years ended December 31, 2013 and 2012, respectively: | |||||||||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding restricted stock units at January 1, 2013 | 69,375 | $ | 4.21 | 2.56 | $ | 350,344 | |||||||||||
Granted | 9,000 | 5.61 | - | 50,490 | |||||||||||||
Forfeited | (13,125 | ) | 4.21 | - | (74,156 | ) | |||||||||||
Vested | (19,125 | ) | 4.21 | - | (96,581 | ) | |||||||||||
Outstanding restricted stock units at December 31, 2013 | 46,125 | $ | 4.36 | 1.24 | $ | 237,083 | |||||||||||
Restricted stock units expected to vest | 34,955 | $ | 4.41 | 1.05 | $ | 179,669 | |||||||||||
2012 | |||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding restricted stock units at January 1, 2012 | - | $ | - | - | $ | - | |||||||||||
Granted | 79,500 | 4.21 | - | 334,865 | |||||||||||||
Forfeited | (10,125 | ) | 4.21 | - | 51,131 | ||||||||||||
Vested | - | - | - | - | |||||||||||||
Outstanding restricted stock units at December 31, 2012 | 69,375 | $ | 4.21 | 2.56 | $ | 350,344 | |||||||||||
Restricted stock units expected to vest | 55,275 | $ | 4.21 | 2.56 | $ | 279,139 | |||||||||||
When stock options are exercised and restricted stock vests, the difference between the assumed tax benefit and the actual tax benefit must be recognized in the Company’s financial statements. In circumstances in which the actual tax benefit is lower than the estimated tax benefit, that difference is recorded in equity, to the extent there are sufficient accumulated excess tax benefits. At December 31, 2013, our accumulated excess tax benefits are sufficient to absorb any future differences between actual and estimated tax benefits for all of our outstanding option and restricted stock grants. The excess of actual tax deductions over amounts assumed, which are recognized in Stockholders’ Equity, were $30,408, $603,993 and $211,638 in 2013, 2012 and 2011. | |||||||||||||||||
15_EARNINGS_PER_SHARE
15. EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Earnings Per Share [Text Block] | ' | ||||||||||||
15. EARNINGS PER SHARE | |||||||||||||
The following table shows the weighted average number of shares used in computing earnings per share and the effect on weighted average number of shares of potential dilutive common stock. | |||||||||||||
Twelve Months Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 795,905 | $ | 1,142,800 | $ | 1,520,674 | |||||||
Shares used in calculation of income per share: | |||||||||||||
Basic | 5,052,516 | 4,802,569 | 4,619,542 | ||||||||||
Effect of dilutive options | 56,727 | 86,858 | 301,752 | ||||||||||
Diluted | 5,109,243 | 4,889,427 | 4,921,294 | ||||||||||
Net income per share: | |||||||||||||
Basic | $ | 0.16 | $ | 0.24 | $ | 0.33 | |||||||
Diluted | $ | 0.16 | $ | 0.23 | $ | 0.31 | |||||||
Stock options that could potentially dilute basic EPS in the future were not included in the computation of diluted EPS, because to do so would have been anti-dilutive, were 98,726, 139,000 and 138,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
16_ACQUISITION
16. ACQUISITION | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | ' | ||||
16. ACQUISITIONS | |||||
The Company accounts for acquisitions of businesses under the acquisition method, which requires measurement of all of the assets acquired and liabilities assumed at their acquisition-date fair values. Results from operations are included in the accompanying consolidated statements of operations and comprehensive income from the date of acquisition. | |||||
Sabio | |||||
On March 5, 2013 the Company completed its acquisition of substantially all of the commercial and operating assets of Sabio Instruments (“Sabio”) for the cash amount of $1,214,330. Sabio provides air quality monitoring products including ambient air instrumentation and continuous emission monitoring systems. Acquisition related costs totaled approximately $125,000 and were included in selling, general and administrative expenses in the consolidated statement of operations and comprehensive income as of December 31, 2013. | |||||
The purchase consideration was allocated to assets acquired and liabilities assumed on the basis of their respective fair values on the acquisition date. The Company’s allocation of the total purchase price is as follows: | |||||
Accounts Receivable | $ | 82,853 | |||
Inventory | 167,099 | ||||
Prepaid items and other assets | 3,267 | ||||
Property and equipment | 9,516 | ||||
Deferred tax asset | 9,000 | ||||
Accrued expenses | (43,122 | ) | |||
Intangibles | 302,000 | ||||
Goodwill | 683,717 | ||||
Totals | $ | 1,214,330 | |||
The goodwill recognized in this acquisition was derived from expected benefits from future technology, sales synergies and a knowledgeable and experienced workforce who joined the Company. Goodwill is expected to be tax deductible for income tax purposes. | |||||
MeteoStar | |||||
On May 24, 2012, the Company completed its acquisition of IPS MeteoStar (“MeteoStar”), pursuant to an Agreement dated May 1, 2012 for the cash amount of $4,241,914. MeteoStar was a privately held company with offices in Englewood, Colorado and Round Rock, Texas. MeteoStar specializes in software applications for aviation, hydrology, meteorology, transportation, energy, research, and the military and in providing air quality systems. Acquisition related costs totaled $958,000 and were included in selling, general and administrative expenses in the consolidated statement of operations and comprehensive income as of December 31, 2012. | |||||
The purchase consideration was allocated to assets acquired and liabilities assumed on the basis of their respective fair values on the acquisition date. The Company’s allocation of the total purchase price is as follows: | |||||
Property and equipment | $ | 309,545 | |||
Deferred asset | 64,866 | ||||
Accrued expenses | (190,782 | ) | |||
Intangible assets | 860,000 | ||||
Goodwill | 3,198,285 | ||||
Totals | $ | 4,241,914 | |||
The goodwill recognized in this acquisition was derived from expected benefits from future technology, sales synergies and a knowledgeable and experienced workforce who joined the Company. Goodwill is expected to be tax deductible for income tax purposes. | |||||
17_PROFIT_SHARING_PLAN
17. PROFIT SHARING PLAN | 12 Months Ended |
Dec. 31, 2013 | |
Compensation and Retirement Disclosure [Abstract] | ' |
Pension and Other Postretirement Benefits Disclosure [Text Block] | ' |
17. PROFIT SHARING PLAN | |
The Company has a 401(k) Profit-Sharing Plan that covers substantially all employees of the Company. The 401(k) provision permits employees to elect to defer a portion of their compensation. The Plan was amended in July 2010 to allow for employer matching of up to 5 percent. The profit-sharing contribution is determined each year by the Board of Directors based on profits. The Company did not make a profit sharing contribution for the years ended December 31, 2013, 2012 and 2011. The employer matching contribution was approximately $397,000, $314,000 and $240,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
18_SEGMENT_INFORMATION
18. SEGMENT INFORMATION | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | ' | ||||||||||||||||||||||
18. SEGMENT INFORMATION | |||||||||||||||||||||||
The Company operates principally in two industry segments: the manufacturing of standard products consisting of hydrological, meteorological and oceanic monitoring and control products which are sold off-the-shelf and systems that are comprised of standard products and custom items as required by the system specification also including software and services including installation, training, and maintenance of systems. Corporate assets consisted mainly of cash, prepaid expenses, deferred taxes, and income tax receivables. The results of these segments are shown below (in thousands): | |||||||||||||||||||||||
Years Ended Dec. 31 | Net Sales | Operating Income (Loss) | Total Assets | Depreciation | Capital Expenditures | ||||||||||||||||||
Standard Products | 2013 | $ | 10,588 | $ | 1,556 | $ | 7,036 | $ | 131 | $ | 46 | ||||||||||||
2012 | 8,132 | 1,163 | 6,728 | 139 | 9 | ||||||||||||||||||
2011 | 9,023 | 1,166 | 6,021 | 147 | 36 | ||||||||||||||||||
Systems/Services | 2013 | 16,620 | (335 | ) | 7,598 | 252 | 161 | ||||||||||||||||
2012 | 17,098 | 194 | 7,266 | 176 | 170 | ||||||||||||||||||
2011 | 11,199 | 963 | 6,502 | 121 | 51 | ||||||||||||||||||
Corporate and Unallocated | 2013 | - | - | 13,509 | - | - | |||||||||||||||||
2012 | - | - | 12,877 | - | - | ||||||||||||||||||
2011 | - | - | 11,560 | - | - | ||||||||||||||||||
Total Company | 2013 | $ | 27,208 | $ | 1,221 | $ | 28,143 | $ | 383 | $ | 207 | ||||||||||||
2012 | 25,230 | 1,357 | 26,871 | 315 | 179 | ||||||||||||||||||
2011 | 20,222 | 2,129 | 24,083 | 268 | 87 | ||||||||||||||||||
Export sales were based on countries where the customers were located. Central and South America includes all countries south of the United States. Asia includes customers in Australia, China, India, Korea and New Zealand. Europe and other consists of Europe and Africa. The Middle East was primarily sales to Afghanistan and Iraq. Export sales from the Company’s operations at December 31, were as follow (in thousands): | |||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Central and South America | $ | 3,687 | $ | 2,278 | $ | 3,852 | |||||||||||||||||
Canada | 2,278 | 1,707 | 1,759 | ||||||||||||||||||||
Asia | 3,525 | 3,380 | 1,570 | ||||||||||||||||||||
Europe and other | 1,468 | 2,723 | 473 | ||||||||||||||||||||
Middle East | 1,424 | 4,336 | 2,978 | ||||||||||||||||||||
$ | 12,382 | $ | 14,424 | $ | 10,632 | ||||||||||||||||||
19_SUMMARIZED_QUARTERLY_UNAUDI
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Quarterly Financial Information [Text Block] | ' | ||||||||||||||||
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA | |||||||||||||||||
2013 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 6,455,110 | $ | 6,343,240 | $ | 7,124,591 | $ | 7,285,363 | |||||||||
Gross profit | 2,646,141 | 2,356,172 | 2,877,004 | 2,904,860 | |||||||||||||
Operating income (loss) | 41,999 | (87,216 | ) | 662,384 | 603,830 | ||||||||||||
Net income (loss) | $ | 30.202 | $ | (53,170 | ) | $ | 486,975 | $ | 331,898 | ||||||||
Basic (loss) income per common share | $ | 0.01 | $ | (0.01 | ) | $ | 0.1 | $ | 0.07 | ||||||||
Diluted (loss) income per common share | $ | 0.01 | $ | (0.01 | ) | $ | 0.1 | $ | 0.06 | ||||||||
2012 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 3,737,181 | $ | 6,804,168 | $ | 7,042,056 | $ | 7,646,114 | |||||||||
Gross profit | 1,426,592 | 2,776,502 | 2,961,935 | 2,852,056 | |||||||||||||
Operating income (loss) | (131,493 | ) | 801,325 | 685,224 | 1,961 | ||||||||||||
Net income (loss) | $ | (76,109 | ) | $ | 551,670 | $ | 490,452 | $ | 176,787 | ||||||||
Basic (loss) income per common share | $ | (0.02 | ) | $ | 0.12 | $ | 0.1 | $ | 0.04 | ||||||||
Diluted (loss) income per common share | $ | (0.02 | ) | $ | 0.11 | $ | 0.1 | $ | 0.04 | ||||||||
2011 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 4,880,619 | $ | 3,848,508 | $ | 5,415,230 | $ | 6,078,012 | |||||||||
Gross profit | 1,848,626 | 1,380,086 | 2,316,241 | 2,351,331 | |||||||||||||
Operating income | 454,452 | (73,214 | ) | 826,730 | 921,191 | ||||||||||||
Net income | $ | 301,577 | $ | (21,372 | ) | $ | 541,000 | $ | 699,469 | ||||||||
Basic income per common share | $ | 0.07 | $ | 0 | $ | 0.12 | $ | 0.15 | |||||||||
Diluted income per common share | $ | 0.06 | $ | 0 | $ | 0.11 | $ | 0.14 | |||||||||
Our results for the quarter ended September 30, 2012 were restated to correct for an error in the computation of contract revenue. The error was in the calculation of estimated costs to complete a contract resulting in estimated costs at completion being understated and revenue being overstated. The results were restated to decrease revenue in the amount of $236,943 and decrease net income by $134,943. | |||||||||||||||||
The sum of the quarterly earnings per share amounts do not equal the amount reported for the full year since per share amounts are computed independently for each quarter and for the full year based on respective weighted-average shares outstanding and other dilutive potential shares. | |||||||||||||||||
20_LEGAL_CONTINGENCIES
20. LEGAL CONTINGENCIES | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies Disclosure [Text Block] | ' |
20. LEGAL CONTINGENCIES | |
There are currently no legal claims that, in the opinion of management have a material effect on our financial statements. | |
Accounting_Policies_by_Policy_
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Accounting Policies [Abstract] | ' |
Revenue Recognition, Policy [Policy Text Block] | ' |
Revenue Recognition | |
Revenue for the Company’s products, consisting of both equipment and software, is recognized upon shipment, delivery, installation or customer acceptance of the product, as agreed in the customer order or contract. Sutron does sell its software products without the related equipment although software products are integral to systems. The Company’s typical system requires no significant production, modification or customization of the software or hardware. For complex systems, revenue is deferred until customer acceptance. The Company does provide customer discounts and does allow for product returns. The Company does not do consignment sales or bill and hold arrangements. Revenue reflects reductions due to discounts and product returns. Product returns have historically been insignificant in amount. | |
The Company’s sales arrangements for systems often include services in addition to equipment and software. These services could include equipment integration, software customization, installation, maintenance, training, and customer support. For sales arrangements that include bundled hardware, software and services, Sutron accounts for any undelivered service offering as a separate element of a multiple-element arrangement. Amounts allocated to each element are based on its objectively determined fair value, such as the sales price for the product or service when it is sold separately. Revenue for these services is typically recognized ratably over the period benefited or when the services are complete. | |
The Company uses the percentage of completion method for recognizing revenue and profits when it performs on fixed price contracts that extend over a number of years. Under the percentage of completion method, revenue and profits are recorded as costs are incurred based on estimates of total sales value and costs at completion where total profit can be estimated with reasonable accuracy and ultimate realization is reasonably assured. Profit estimates are revised periodically based upon changes and facts, and any losses on contracts are recognized immediately. Contracts may contain provisions to earn incentive and award fees if targets are achieved. Incentive and award fees that can be reasonably estimated are recorded over the performance period of the contract. Incentive and award fees that cannot be reasonably estimated are recorded when awarded. The Company recognizes revenue from time-and-materials contracts to the extent of billable rates, times hours delivered, plus direct materials costs incurred. Some of the contracts include provisions to withhold a portion of the contract value as retainage. The Company’s policy is to take into revenue the full value of the contract, including any retainage, as it performs against the contract. Contract costs include allocated indirect costs. Anticipated losses on all contracts are recognized as soon as they become known. Costs on contracts in excess of related billings are reflected as unbilled receivables and are included in accounts receivable. Billings in excess of costs are reflected as a liability. | |
Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Cash and Cash Equivalents | |
For purposes of the consolidated statements of cash flows, cash equivalents include time deposits and all highly liquid debt instruments with original maturities of three months or less. Interest paid approximated $467, $900 and $900 for the years ended December 31, 2013, 2012 and 2011. Income taxes paid approximated $6,000, $366,000 and $706,000 for the years ended December 31, 2013, 2012 and 2011, respectively. Foreign income tax expense approximated $36,000, $328,000 and $33,000 for the years ended December 31, 2013, 2012 and 2011, respectively. | |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | ' |
Restricted Cash | |
For the years ended December 31, 2013 and 2012, the Company had submitted bid bonds or performance bonds on both official tenders or awarded contracts. At December 31, 2013 and 2012, cash in the amount of $850,279 and $810,396, respectively, was restricted for bid or performance bonds. | |
Receivables, Policy [Policy Text Block] | ' |
Accounts Receivable | |
Based on management’s evaluation of uncollected accounts receivable at the end of each year, bad debts are provided for utilizing the allowance method. Bad debt expense, net of recoveries, for the years ending December 31, 2013, 2012, and 2011 was $(13,509), $230,485 and $44,000, respectively. | |
Inventory, Policy [Policy Text Block] | ' |
Inventory | |
Inventory is stated at the lower of cost or market. Electronic components costs, work in process and finished goods costs consist of materials, labor and overhead and are recorded at a standard cost that approximates the average cost method. The Company provides allowances on inventories for any material that has become obsolete or may become unsellable based on estimates of future demand and sale price in the market. | |
Property, Plant and Equipment, Policy [Policy Text Block] | ' |
Property and Equipment | |
Property and equipment is recorded at cost and depreciated over their estimated useful lives, ranging from three to ten years, using the straight-line method for financial statement purposes, and the straight-line and accelerated methods for income tax purposes. Expenditures for maintenance, repairs, and improvements that do not materially extend the useful lives of the assets are charged to earnings as incurred. When items of property and equipment are disposed of, the cost of the asset and the related accumulated depreciation are removed from the accounts. Any gain or loss resulting from the removal from service is taken into the current period earnings. | |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | ' |
Goodwill | |
Goodwill represents the excess of the purchase price over the fair value of identifiable assets acquired and liabilities assumed when a business is acquired. Goodwill is not amortized but is evaluated for potential impairment at least annually by comparing the fair value of a reporting unit to its carrying value including goodwill recorded by the reporting unit. During the year if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value, an interim goodwill analysis would be performed. If the carrying value exceeds the fair value, impairment is measured by comparing the implied fair value of the goodwill to its carrying value, and any impairment determined is recorded in the current period. | |
On an annual basis the Company performs the impairment assessment for goodwill at the reporting unit level. The Company completed its annual impairment analysis during the fourth quarter of each of the years ended December 31, 2013, 2012 and 2011 and determined that there was no impairment of goodwill as of each balance sheet date. | |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | ' |
Intangible Assets | |
Intangible assets are comprised of customer lists, software, and existing product technology with estimated useful lives of seven, five and five years, respectively. Intangible assets are amortized over their estimated lives using the straight-line method. | |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | ' |
Impairment of Long-Lived Assets | |
Long-lived assets are evaluated for impairment whenever events or changes in circumstances have indicated that an asset may not be recoverable and are grouped with other assets to the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. If the sum of the projected undiscounted cash flows (excluding interest charges) is less than the carrying value of the assets, the assets will be written down to the estimated fair value and such loss is recognized in income from continuing operations in the period in which the determination is made. Management determined that no impairment of long-lived assets existed as of December 31, 2013 and 2012. | |
Income Tax, Policy [Policy Text Block] | ' |
Income Taxes | |
The Company utilizes an asset and liability approach to accounting for income taxes. The objective is to recognize the amount of income taxes payable or refundable in the current year based on the Company’s income tax return and the deferred tax liabilities and assets for the expected future tax consequences of events that have been recognized in the Company’s financial statements or tax returns. The asset and liability method accounts for deferred income taxes by applying enacted statutory rates to temporary differences, the difference between financial statement amounts and tax basis of assets and liabilities. The resulting deferred tax liabilities or assets are classified as current or noncurrent based on the classification of the related asset or liability. Deferred income tax liabilities or assets are adjusted to reflect changes in tax laws or rates in the year of enactment. | |
Management has evaluated the Company’s tax positions and concluded that the Company had taken no uncertain tax positions that require adjustment to the financial statements to comply with the provisions of this guidance. With few exceptions, the Company is no longer subject to income tax examinations by the U.S. federal, state or local tax authorities for years before 2010. | |
Stockholders' Equity, Policy [Policy Text Block] | ' |
Capital | |
The Company has 12,000,000, $.01 par value, shares of authorized common stock. There were 5,066,009 and shares issued and outstanding at December 31, 2013 and 5,039,632 shares issued and outstanding at December 31, 2012. | |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | ' |
Foreign Currency Translation | |
Results of operations for the Company’s foreign branch office and foreign wholly-owned subsidiary are translated from the designated functional currency to the U.S. dollar using average exchange rates during the period, while assets and liabilities of the foreign branch office are translated at the exchange rate in effect at the reporting date. Resulting gains or losses from translating foreign currency financial statements are included in accumulated other comprehensive loss. | |
Use of Estimates, Policy [Policy Text Block] | ' |
Use of Estimates | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could vary from the estimates that were used. | |
Earnings Per Share, Policy [Policy Text Block] | ' |
Earnings per Share | |
The Company presents two categories of earnings per share, basic EPS and diluted EPS. Basic EPS excludes dilution and is computed by dividing income available to common stockholders by the weighted-average number of common shares outstanding for the year. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the Company. | |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' |
Stock Compensation Plans | |
The Company measures and recognizes compensation expense for all share-based payment awards to employees and directors based on estimated fair values. | |
Research and Development Expense, Policy [Policy Text Block] | ' |
Research and Development | |
Research and development expenses include payroll, employee benefits, stock-based compensation expense, and other employee related expenses associated with product development. Research and development expenses also include third-party development and programming costs. | |
New Accounting Pronouncements, Policy [Policy Text Block] | ' |
Recent Accounting Pronouncements | |
In July 2013, the FASB issued ASU 2013-11, Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists, which requires standard presentation of an unrecognized tax benefit when a carryforward related to net operating losses or tax credits exist. This update is effective for fiscal years and interim periods within those fiscal years beginning after December 15, 2013. The adoption of this ASU is not expected to have an impact on our financial position, results of operations or cash flows. | |
In July 2012, the FASB issued ASU 2012-02, "Intangibles—Goodwill and Other (Topic 350): Testing Indefinite-Lived Intangible Assets for Impairment," which provides entities with the option to assess qualitative factors to determine whether the existence of events and circumstances indicates that it is more likely than not that the indefinite-lived intangible asset is impaired. If the entity concludes that it is more likely than not that the asset is impaired, it is required to determine the fair value of the intangible asset and perform the quantitative impairment test by comparing the fair value with the carrying value in accordance with Topic 350. If the entity concludes otherwise, no further quantitative assessment is required. ASU 2012-02 is effective on January 1, 2013. The adoption of ASU 2012-02 did not have a material impact on the Company’s consolidated financial statements. |
3_ACCOUNTS_RECEIVABLE_Tables
3. ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Receivables [Abstract] | ' | ||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | 'Accounts receivable at December 31, consists of the following: | ||||||||
2013 | 2012 | ||||||||
Trade receivables | $ | 4,335,205 | $ | 4,869,164 | |||||
Costs in excess of billings and estimated earnings | 1,383,418 | 702,725 | |||||||
Contract retainage | 249,013 | 314,124 | |||||||
Allowance for doubtful accounts | (104,000 | ) | (115,000 | ) | |||||
Totals | $ | 5,863,636 | $ | 5,771,013 |
4_INVENTORY_Tables
4. INVENTORY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Inventory Disclosure [Abstract] | ' | ||||||||
Schedule of Inventory, Current [Table Text Block] | 'Inventory consists of the following at December 31: | ||||||||
2013 | 2012 | ||||||||
Electronic components | $ | 2,556,827 | $ | 1,982,088 | |||||
Work in process | 1,936,202 | 1,937,245 | |||||||
Finished goods | 1,109,491 | 1,098,135 | |||||||
Allowance for obsolete inventory | (725,879 | ) | (725,963 | ) | |||||
Totals | $ | 4,876,641 | $ | 4,291,505 |
5_PROPERTY_AND_EQUIPMENT_Table
5. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Property, Plant and Equipment [Abstract] | ' | ||||||||
Property, Plant and Equipment [Table Text Block] | 'A summary of property and equipment at December 31 is as follows: | ||||||||
2013 | 2012 | ||||||||
Furniture, fixtures and equipment | $ | 2,581,754 | $ | 2,395,252 | |||||
Vehicles | 253,176 | 253,176 | |||||||
Leasehold improvements | 1,591,537 | 1,563,857 | |||||||
Totals | $ | 4,426,467 | $ | 4,212,285 | |||||
2013 | 2012 | ||||||||
Furniture, fixtures and equipment | $ | 1,929,301 | $ | 1,710,419 | |||||
Vehicles | 242,726 | 237,626 | |||||||
Leasehold improvements | 722,296 | 566,022 | |||||||
Totals | $ | 2,894,323 | $ | 2,514,067 | |||||
Property and Equipment, Net | $ | 1,532,144 | $ | 1,698,218 |
6_GOODWILL_AND_INTANGIBLES_Tab
6. GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure Text Block [Abstract] | ' | ||||||||||||
Schedule of Goodwill [Table Text Block] | 'The change in carrying value of goodwill for the year ended December 31,2013 is as follows: | ||||||||||||
Balance as of December 31, 2011 | $ | 570,150 | |||||||||||
Acquisition of IPS MeteoStar | 3,198,285 | ||||||||||||
Balance as of December 31, 2012 | $ | 3,768,435 | |||||||||||
Acquisition of Sabio Instruments | 683,717 | ||||||||||||
Balance as of December 31, 2013 | $ | 4,452,152 | |||||||||||
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 'The carrying values of the Company's amortizable acquired intangible assets are as follows: | ||||||||||||
December 31, 2013 | |||||||||||||
Gross | Net | ||||||||||||
Carrying | Accumulated | Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
Customer relationships | 829,000 | (169,084 | ) | 659,916 | |||||||||
Acquired technology | 333,000 | (85,421 | ) | 247,579 | |||||||||
$ | 1,162,000 | $ | (254,505 | ) | $ | 907,495 | |||||||
December 31, 2012 | |||||||||||||
Gross | Net | ||||||||||||
Carrying | Accumulated | Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
Customer relationships | 659,000 | (54,917 | ) | 604,083 | |||||||||
Acquired technology | 201,000 | (23,450 | ) | 177,550 | |||||||||
$ | 860,000 | $ | (78,367 | ) | $ | 781,633 | |||||||
Schedule of Finite-Lived Intangible Assets, Remaining Amortization Period [Table Text Block] | 'The weighted average remaining amortization period by major asset class as of December 31, 2013 is as follows: | ||||||||||||
(In years) | |||||||||||||
Acquired technology | 3.7 | ||||||||||||
Customer relationships | 5.6 | ||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | 'The estimated future amortization of acquired intangible assets as of December 31, 2013 is as follows: | ||||||||||||
2014 | $ | 185,029 | |||||||||||
2015 | 185,029 | ||||||||||||
2016 | 185,029 | ||||||||||||
2017 | 161,579 | ||||||||||||
2018 | 123,269 | ||||||||||||
Thereafter | 67,560 | ||||||||||||
$ | 907,495 |
7_CONTRACTS_IN_PROGRESS_Tables
7. CONTRACTS IN PROGRESS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Contracts In Progress [Abstract] | ' | ||||||||
Schedule of Contracts in Progress [Table Text Block] | 'A summary of contracts in progress at December 31 is as follows: | ||||||||
2013 | 2012 | ||||||||
Costs incurred to date | $ | 6,471,964 | $ | 7,577,349 | |||||
Estimated earnings | 3,052,272 | 4,135,820 | |||||||
Revenue recognized to date | 9,524,236 | 11,713,169 | |||||||
Billings to date | (8,529,505 | ) | (11,316,592 | ) | |||||
$ | 994,731 | $ | 396,577 | ||||||
Included in the accompanying balance sheets: | |||||||||
Costs in excess of billings on uncompleted contracts (unbilled receivables) | $ | 1,383,418 | $ | 702,725 | |||||
Billings in excess of costs on uncompleted contracts | (388,687 | ) | (306,148 | ) | |||||
$ | 994,731 | $ | 396,577 |
9_OTHER_ACCRUED_EXPENSES_Table
9. OTHER ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2013 | |||||||||
Payables and Accruals [Abstract] | ' | ||||||||
Schedule of Accrued Liabilities [Table Text Block] | 'Components of other accrued expenses consist of the following at December 31: | ||||||||
2013 | 2012 | ||||||||
Accrued vacation pay | $ | 488,446 | $ | 480,307 | |||||
Accrued warranty costs | 217,000 | 299,000 | |||||||
Customer advance payments | 696,970 | 214,921 | |||||||
Other accruals | 117,845 | 140,051 | |||||||
Totals | $ | 1,520,261 | $ | 1,134,279 |
10_ACCRUED_WARRANTY_COSTS_Tabl
10. ACCRUED WARRANTY COSTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Product Warranties Disclosures [Abstract] | ' | ||||
Schedule of Product Warranty Liability [Table Text Block] | 'Changes to the product warranty reserve are identified below and represent adjustments to the reserve based on management estimates and other factors as noted above: | ||||
Balance as of December 31, 2010 | $ | 311,000 | |||
Reserve adjustment | (41,000 | ) | |||
Balance as of December 31, 2011 | 270,000 | ||||
Reserve adjustment | 29,000 | ||||
Balance as of December 31, 2012 | 299,000 | ||||
Reserve adjustment | (82,000 | ) | |||
Balance as of December 31, 2013 | $ | 217,000 |
11_LEASE_OBLIGATIONS_Tables
11. LEASE OBLIGATIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Disclosure Text Block Supplement [Abstract] | ' | ||||
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | 'The following is a schedule of future minimum lease payments by year: | ||||
Years ending December 31: | |||||
2014 | $ | 641,856 | |||
2015 | 592,520 | ||||
2016 | 606,049 | ||||
2017 | 595,284 | ||||
2018 | 609,906 | ||||
Thereafter | 403,358 | ||||
Total | $ | 3,448,973 |
12_INCOME_TAXES_Tables
12. INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Income Tax Disclosure [Abstract] | ' | ||||||||||||
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | 'The income tax expense charged to operations for the years ended December 31, were as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Domestic income tax expense | $ | 550,608 | $ | 111,000 | $ | 711,000 | |||||||
Foreign income tax expense | 35,827 | 328,000 | 33,000 | ||||||||||
Deferred tax benefit | (114,451 | ) | (150,000 | ) | (34,000 | ) | |||||||
Total income tax expense | $ | 471,984 | $ | 289,000 | $ | 710,000 | |||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | 'Deferred tax assets, are comprised of the following at December 31: | ||||||||||||
2013 | 2012 | ||||||||||||
Accrued vacation and warranty | $ | 228,613 | $ | 304,000 | |||||||||
Stock compensation additional paid in capital | 203,205 | 218,000 | |||||||||||
Accounts receivable and inventory allowances | 115,603 | 125,000 | |||||||||||
Depreciation | 17,413 | - | |||||||||||
Research Tax Credit | 320,342 | - | |||||||||||
Intangibles | - | 19,000 | |||||||||||
Gross deferred tax assets | 885,176 | 666,000 | |||||||||||
Intangibles amortization | (143,261 | ) | - | ||||||||||
Gross deferred tax liability – depreciation | - | (39,000 | ) | ||||||||||
Net deferred tax assets | $ | 741,915 | $ | 627,000 | |||||||||
2013 | 2012 | ||||||||||||
Current | $ | 664,558 | $ | 429,000 | |||||||||
Non-current | 77,357 | 198,000 | |||||||||||
Net deferred tax assets | $ | 741,915 | $ | 627,000 | |||||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 'Reconciliation of the amount of reported income tax expense and the amount computed by multiplying the applicable statutory Federal income tax rate is as follows: | ||||||||||||
2013 | 2012 | 2011 | |||||||||||
Income before income taxes | $ | 1,267,889 | $ | 1,431,800 | $ | 2,230,674 | |||||||
Applicable statutory tax rate | 34 | % | 34 | % | 34 | % | |||||||
Computed “expected” Federal income tax expense | 431,082 | 487,000 | 758,000 | ||||||||||
Adjustments to Federal income tax resulting from: | |||||||||||||
State income tax expense | 23,104 | 24,000 | 99,000 | ||||||||||
Tax credits and other | 17,798 | (222,000 | ) | (147,000 | ) | ||||||||
Income tax expense | $ | 471,984 | $ | 289,000 | $ | 710,000 |
13_MAJOR_CUSTOMERS_Tables
13. MAJOR CUSTOMERS (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||||
Customer Concentration Risk [Member] | ' | ||||||||||||||||||||||||
13. MAJOR CUSTOMERS (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Schedule of Revenue by Major Customers by Reporting Segments [Table Text Block] | 'Net sales for the years ended December 31, 2013, 2012 and 2011, include sales to the following major customers, together with the receivables due from the major customers: | ||||||||||||||||||||||||
Net Sales | % to Total Net Sales | ||||||||||||||||||||||||
Year Ended December 31, | Year Ended December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
U.S. Government Agencies | $ | 5,373,652 | $ | 5,305,622 | $ | 5,778,656 | 20 | % | 21 | % | 29 | % | |||||||||||||
Ministry of Energy and Water, Afghanistan | 448,988 | 2,750,143 | 2,268,219 | 2 | % | 11 | % | 11 | % | ||||||||||||||||
$ | 5,822,640 | $ | 8,055,765 | $ | 8,046,875 | 22 | % | 32 | % | 40 | % | ||||||||||||||
Credit Concentration Risk [Member] | ' | ||||||||||||||||||||||||
13. MAJOR CUSTOMERS (Tables) [Line Items] | ' | ||||||||||||||||||||||||
Schedules of Concentration of Risk, by Risk Factor [Table Text Block] | ' | ||||||||||||||||||||||||
Accounts Receivable | % of Total Accounts | ||||||||||||||||||||||||
Amount at December 31, | Receivable at December 31, | ||||||||||||||||||||||||
2013 | 2012 | 2011 | 2013 | 2012 | 2011 | ||||||||||||||||||||
U.S. Government Agencies | $ | 478,826 | $ | 211,639 | $ | 1,460,810 | 8 | % | 4% | 22 | % | ||||||||||||||
Ministry of Energy and Water, Afghanistan | 440,935 | 1,325,693 | 1,447,536 | 8 | % | 23% | 21 | % | |||||||||||||||||
$ | 919,761 | $ | 1,537,332 | $ | 2,908,346 | 16 | % | 27% | 43 | % |
14_STOCK_BASED_COMPENSATION_Ta
14. STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||||||
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | 'The valuation assumptions used are shown below: | ||||||||||||||||
2011 | |||||||||||||||||
Risk free rate | 2.66 | - | 3.19 | % | |||||||||||||
Expected volatility | 39 | % | |||||||||||||||
Dividend yield | 0 | % | |||||||||||||||
Expected term in years | 10 | ||||||||||||||||
Schedule of Share-based Compensation, Stock Options, Activity [Table Text Block] | 'The following table summarizes stock option activity under the Stock Option Plans for the last three years: | ||||||||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at beginning of period | 155,978 | $ | 6.45 | 5.55 | $ | 33,991 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | (7,252 | ) | 0.68 | - | 32,489 | ||||||||||||
Forfeited or expired | (35,000 | ) | 6.97 | - | - | ||||||||||||
Outstanding at end of period | 113,726 | $ | 6.66 | 4.94 | $ | 1,600 | |||||||||||
Exercisable at end of period | 99,726 | $ | 6.68 | 4.73 | $ | 1,600 | |||||||||||
Nonvested at end of period | 14,000 | $ | 6.47 | 6.38 | $ | - | |||||||||||
2012 | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at beginning of period | 492,978 | $ | 2.61 | 2.93 | $ | 1,925,176 | |||||||||||
Granted | - | - | - | - | |||||||||||||
Exercised | (335,000 | ) | 0.82 | - | 1,493,031 | ||||||||||||
Forfeited or expired | (2,000 | ) | 4.45 | - | - | ||||||||||||
Outstanding at end of period | 155,978 | $ | 6.45 | 5.55 | $ | 33,991 | |||||||||||
Exercisable at end of period | 134,978 | $ | 6.45 | 5.27 | $ | 33,991 | |||||||||||
Nonvested at end of period | 21,000 | $ | 6.47 | 7.38 | $ | - | |||||||||||
2011 | |||||||||||||||||
Number of Shares | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding at beginning of period | 634,252 | $ | 2.37 | 3.59 | $ | 2,747,390 | |||||||||||
Granted | 18,559 | 6.86 | - | - | |||||||||||||
Exercised | (129,000 | ) | 0.99 | - | (529,095 | ) | |||||||||||
Forfeited or expired | (30,833 | ) | 6.94 | - | - | ||||||||||||
Outstanding at end of period | 492,978 | $ | 2.61 | 2.93 | $ | 1,925,176 | |||||||||||
Exercisable at end of period | 446,908 | $ | 2.2 | 2.42 | $ | 1,925,176 | |||||||||||
Nonvested at end of period | 46,070 | $ | 6.62 | 7.88 | $ | - | |||||||||||
Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block] | 'The following tables summarize RSU activity under the Equity Incentive Plan for the years ended December 31, 2013 and 2012, respectively: | ||||||||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding restricted stock units at January 1, 2013 | 69,375 | $ | 4.21 | 2.56 | $ | 350,344 | |||||||||||
Granted | 9,000 | 5.61 | - | 50,490 | |||||||||||||
Forfeited | (13,125 | ) | 4.21 | - | (74,156 | ) | |||||||||||
Vested | (19,125 | ) | 4.21 | - | (96,581 | ) | |||||||||||
Outstanding restricted stock units at December 31, 2013 | 46,125 | $ | 4.36 | 1.24 | $ | 237,083 | |||||||||||
Restricted stock units expected to vest | 34,955 | $ | 4.41 | 1.05 | $ | 179,669 | |||||||||||
2012 | |||||||||||||||||
Number of Shares | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (Years) | Aggregate Intrinsic Value | ||||||||||||||
Outstanding restricted stock units at January 1, 2012 | - | $ | - | - | $ | - | |||||||||||
Granted | 79,500 | 4.21 | - | 334,865 | |||||||||||||
Forfeited | (10,125 | ) | 4.21 | - | 51,131 | ||||||||||||
Vested | - | - | - | - | |||||||||||||
Outstanding restricted stock units at December 31, 2012 | 69,375 | $ | 4.21 | 2.56 | $ | 350,344 | |||||||||||
Restricted stock units expected to vest | 55,275 | $ | 4.21 | 2.56 | $ | 279,139 |
15_EARNINGS_PER_SHARE_Tables
15. EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Earnings Per Share [Abstract] | ' | ||||||||||||
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | 'The following table shows the weighted average number of shares used in computing earnings per share and the effect on weighted average number of shares of potential dilutive common stock. | ||||||||||||
Twelve Months Ended December 31, | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Net income | $ | 795,905 | $ | 1,142,800 | $ | 1,520,674 | |||||||
Shares used in calculation of income per share: | |||||||||||||
Basic | 5,052,516 | 4,802,569 | 4,619,542 | ||||||||||
Effect of dilutive options | 56,727 | 86,858 | 301,752 | ||||||||||
Diluted | 5,109,243 | 4,889,427 | 4,921,294 | ||||||||||
Net income per share: | |||||||||||||
Basic | $ | 0.16 | $ | 0.24 | $ | 0.33 | |||||||
Diluted | $ | 0.16 | $ | 0.23 | $ | 0.31 |
16_ACQUISITION_Tables
16. ACQUISITION (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Sabio Instruments [Member] | ' | ||||
16. ACQUISITION (Tables) [Line Items] | ' | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 'The Company’s allocation of the total purchase price is as follows: | ||||
Accounts Receivable | $ | 82,853 | |||
Inventory | 167,099 | ||||
Prepaid items and other assets | 3,267 | ||||
Property and equipment | 9,516 | ||||
Deferred tax asset | 9,000 | ||||
Accrued expenses | (43,122 | ) | |||
Intangibles | 302,000 | ||||
Goodwill | 683,717 | ||||
Totals | $ | 1,214,330 | |||
IPS MeteoStar [Member] | ' | ||||
16. ACQUISITION (Tables) [Line Items] | ' | ||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 'The Company’s allocation of the total purchase price is as follows: | ||||
Property and equipment | $ | 309,545 | |||
Deferred asset | 64,866 | ||||
Accrued expenses | (190,782 | ) | |||
Intangible assets | 860,000 | ||||
Goodwill | 3,198,285 | ||||
Totals | $ | 4,241,914 |
18_SEGMENT_INFORMATION_Tables
18. SEGMENT INFORMATION (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Segment Reporting [Abstract] | ' | ||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 'The results of these segments are shown below (in thousands): | ||||||||||||||||||||||
Years Ended Dec. 31 | Net Sales | Operating Income (Loss) | Total Assets | Depreciation | Capital Expenditures | ||||||||||||||||||
Standard Products | 2013 | $ | 10,588 | $ | 1,556 | $ | 7,036 | $ | 131 | $ | 46 | ||||||||||||
2012 | 8,132 | 1,163 | 6,728 | 139 | 9 | ||||||||||||||||||
2011 | 9,023 | 1,166 | 6,021 | 147 | 36 | ||||||||||||||||||
Systems/Services | 2013 | 16,620 | (335 | ) | 7,598 | 252 | 161 | ||||||||||||||||
2012 | 17,098 | 194 | 7,266 | 176 | 170 | ||||||||||||||||||
2011 | 11,199 | 963 | 6,502 | 121 | 51 | ||||||||||||||||||
Corporate and Unallocated | 2013 | - | - | 13,509 | - | - | |||||||||||||||||
2012 | - | - | 12,877 | - | - | ||||||||||||||||||
2011 | - | - | 11,560 | - | - | ||||||||||||||||||
Total Company | 2013 | $ | 27,208 | $ | 1,221 | $ | 28,143 | $ | 383 | $ | 207 | ||||||||||||
2012 | 25,230 | 1,357 | 26,871 | 315 | 179 | ||||||||||||||||||
2011 | 20,222 | 2,129 | 24,083 | 268 | 87 | ||||||||||||||||||
Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Table Text Block] | 'Export sales were based on countries where the customers were located. Central and South America includes all countries south of the United States. Asia includes customers in Australia, China, India, Korea and New Zealand. Europe and other consists of Europe and Africa. The Middle East was primarily sales to Afghanistan and Iraq. Export sales from the Company’s operations at December 31, were as follow (in thousands): | ||||||||||||||||||||||
2013 | 2012 | 2011 | |||||||||||||||||||||
Central and South America | $ | 3,687 | $ | 2,278 | $ | 3,852 | |||||||||||||||||
Canada | 2,278 | 1,707 | 1,759 | ||||||||||||||||||||
Asia | 3,525 | 3,380 | 1,570 | ||||||||||||||||||||
Europe and other | 1,468 | 2,723 | 473 | ||||||||||||||||||||
Middle East | 1,424 | 4,336 | 2,978 | ||||||||||||||||||||
$ | 12,382 | $ | 14,424 | $ | 10,632 |
19_SUMMARIZED_QUARTERLY_UNAUDI1
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | ||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | ' | ||||||||||||||||
2013 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 6,455,110 | $ | 6,343,240 | $ | 7,124,591 | $ | 7,285,363 | |||||||||
Gross profit | 2,646,141 | 2,356,172 | 2,877,004 | 2,904,860 | |||||||||||||
Operating income (loss) | 41,999 | (87,216 | ) | 662,384 | 603,830 | ||||||||||||
Net income (loss) | $ | 30.202 | $ | (53,170 | ) | $ | 486,975 | $ | 331,898 | ||||||||
Basic (loss) income per common share | $ | 0.01 | $ | (0.01 | ) | $ | 0.1 | $ | 0.07 | ||||||||
Diluted (loss) income per common share | $ | 0.01 | $ | (0.01 | ) | $ | 0.1 | $ | 0.06 | ||||||||
2012 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 3,737,181 | $ | 6,804,168 | $ | 7,042,056 | $ | 7,646,114 | |||||||||
Gross profit | 1,426,592 | 2,776,502 | 2,961,935 | 2,852,056 | |||||||||||||
Operating income (loss) | (131,493 | ) | 801,325 | 685,224 | 1,961 | ||||||||||||
Net income (loss) | $ | (76,109 | ) | $ | 551,670 | $ | 490,452 | $ | 176,787 | ||||||||
Basic (loss) income per common share | $ | (0.02 | ) | $ | 0.12 | $ | 0.1 | $ | 0.04 | ||||||||
Diluted (loss) income per common share | $ | (0.02 | ) | $ | 0.11 | $ | 0.1 | $ | 0.04 | ||||||||
2011 | |||||||||||||||||
Q1 | Q2 | Q3 | Q4 | ||||||||||||||
Net sales | $ | 4,880,619 | $ | 3,848,508 | $ | 5,415,230 | $ | 6,078,012 | |||||||||
Gross profit | 1,848,626 | 1,380,086 | 2,316,241 | 2,351,331 | |||||||||||||
Operating income | 454,452 | (73,214 | ) | 826,730 | 921,191 | ||||||||||||
Net income | $ | 301,577 | $ | (21,372 | ) | $ | 541,000 | $ | 699,469 | ||||||||
Basic income per common share | $ | 0.07 | $ | 0 | $ | 0.12 | $ | 0.15 | |||||||||
Diluted income per common share | $ | 0.06 | $ | 0 | $ | 0.11 | $ | 0.14 |
2_SUMMARY_OF_SIGNIFICANT_ACCOU1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' | ' |
Interest Paid | $467 | $900 | $900 |
Income Taxes Paid | 6,000 | 366,000 | 706,000 |
Restricted Cash and Cash Equivalents, Current | 850,279 | 810,396 | 850,279 |
Allowance for Doubtful Accounts Receivable, Recoveries | -13,509 | ' | ' |
Allowance for Doubtful Accounts Receivable, Write-offs | ' | 230,485 | 44,000 |
Common Stock, Shares Authorized (in Shares) | 12,000,000 | 12,000,000 | ' |
Common Stock, Par or Stated Value Per Share (in Dollars per share) | $0.01 | $0.01 | ' |
Common Stock, Shares, Issued (in Shares) | 5,066,009 | 5,039,632 | ' |
Common Stock, Shares, Outstanding (in Shares) | 5,066,009 | 5,039,632 | ' |
Foreign Tax Authority [Member] | ' | ' | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' | ' |
Income Taxes Paid | $36,000 | $328,000 | $33,000 |
Customer Lists [Member] | ' | ' | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '7 years | ' | ' |
Computer Software, Intangible Asset [Member] | ' | ' | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ' |
Technology-Based Intangible Assets [Member] | ' | ' | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' | ' |
Finite-Lived Intangible Asset, Useful Life | '5 years | ' | ' |
Minimum [Member] | ' | ' | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '3 years | ' | ' |
Maximum [Member] | ' | ' | ' |
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | ' | ' | ' |
Property, Plant and Equipment, Useful Life | '10 years | ' | ' |
3_ACCOUNTS_RECEIVABLE_Details_
3. ACCOUNTS RECEIVABLE (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract] | ' | ' |
Trade receivables | $4,335,205 | $4,869,164 |
Costs in excess of billings and estimated earnings | 1,383,418 | 702,725 |
Contract retainage | 249,013 | 314,124 |
Allowance for doubtful accounts | -104,000 | -115,000 |
Totals | $5,863,636 | $5,771,013 |
4_INVENTORY_Details_Schedule_o
4. INVENTORY (Details) - Schedule of Inventory (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Inventory [Abstract] | ' | ' |
Electronic components | $2,556,827 | $1,982,088 |
Work in process | 1,936,202 | 1,937,245 |
Finished goods | 1,109,491 | 1,098,135 |
Allowance for obsolete inventory | -725,879 | -725,963 |
Totals | $4,876,641 | $4,291,505 |
5_PROPERTY_AND_EQUIPMENT_Detai
5. PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
5. PROPERTY AND EQUIPMENT (Details) [Line Items] | ' | ' | ' |
Depreciation | $382,996 | $315,338 | $267,741 |
Property, Plant and Equipment, Other Types [Member] | ' | ' | ' |
5. PROPERTY AND EQUIPMENT (Details) [Line Items] | ' | ' | ' |
Depreciation | $382,996 | $315,338 | $267,741 |
5_PROPERTY_AND_EQUIPMENT_Detai1
5. PROPERTY AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | $4,426,467 | $4,212,285 |
Accumulated depreciation | 2,894,323 | 2,514,067 |
Property and Equipment, Net | 1,532,144 | 1,698,218 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 2,581,754 | 2,395,252 |
Accumulated depreciation | 1,929,301 | 1,710,419 |
Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 253,176 | 253,176 |
Accumulated depreciation | 242,726 | 237,626 |
Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property, plant and equipment, gross | 1,591,537 | 1,563,857 |
Accumulated depreciation | $722,296 | $566,022 |
6_GOODWILL_AND_INTANGIBLES_Det
6. GOODWILL AND INTANGIBLES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block [Abstract] | ' | ' | ' |
Amortization of Intangible Assets | $176,138 | $78,367 | $0 |
6_GOODWILL_AND_INTANGIBLES_Det1
6. GOODWILL AND INTANGIBLES (Details) - Schedule of Goodwill (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2012 | Dec. 31, 2013 |
IPS MeteoStar [Member] | Sabio Instruments [Member] | ||||
Goodwill [Line Items] | ' | ' | ' | ' | ' |
Balance | $4,452,152 | $3,768,435 | $570,150 | ' | ' |
Acquisition | ' | ' | ' | 3,198,285 | 683,717 |
Balance | $4,452,152 | $3,768,435 | $570,150 | $3,198,285 | $683,717 |
6_GOODWILL_AND_INTANGIBLES_Det2
6. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets and Accumulated Amortization (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortizable Intangible Assets | $1,162,000 | $860,000 |
Amortizable Intangible Assets | -254,505 | -78,367 |
Amortizable Intangible Assets | 907,495 | 781,633 |
Customer Relationships [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortizable Intangible Assets | 829,000 | 659,000 |
Amortizable Intangible Assets | -169,084 | -54,917 |
Amortizable Intangible Assets | 659,916 | 604,083 |
Technology-Based Intangible Assets [Member] | ' | ' |
Finite-Lived Intangible Assets [Line Items] | ' | ' |
Amortizable Intangible Assets | 333,000 | 201,000 |
Amortizable Intangible Assets | -85,421 | -23,450 |
Amortizable Intangible Assets | $247,579 | $177,550 |
6_GOODWILL_AND_INTANGIBLES_Det3
6. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Remaining Amortization Period | 12 Months Ended |
Dec. 31, 2013 | |
Technology-Based Intangible Assets [Member] | ' |
6. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Remaining Amortization Period [Line Items] | ' |
Remaining Amortization Period | '3 years 255 days |
Customer Relationships [Member] | ' |
6. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Remaining Amortization Period [Line Items] | ' |
Remaining Amortization Period | '5 years 219 days |
6_GOODWILL_AND_INTANGIBLES_Det4
6. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Future Amortization Expense (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Intangible Assets, Future Amortization Expense [Abstract] | ' | ' |
2014 | $185,029 | ' |
2015 | 185,029 | ' |
2016 | 185,029 | ' |
2017 | 161,579 | ' |
2018 | 123,269 | ' |
Thereafter | 67,560 | ' |
$907,495 | $781,633 |
7_CONTRACTS_IN_PROGRESS_Detail
7. CONTRACTS IN PROGRESS (Details) - Schedule of Contracts in Progress (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Contracts in Progress [Abstract] | ' | ' |
Costs incurred to date | $6,471,964 | $7,577,349 |
Estimated earnings | 3,052,272 | 4,135,820 |
Revenue recognized to date | 9,524,236 | 11,713,169 |
Billings to date | -8,529,505 | -11,316,592 |
Contracts receivable | 994,731 | 396,577 |
Included in the accompanying balance sheets: | ' | ' |
Costs in excess of billings on uncompleted contracts (unbilled receivables) | 1,383,418 | 702,725 |
Billings in excess of costs on uncompleted contracts | ($388,687) | ($306,148) |
8_LINE_OF_CREDIT_Details
8. LINE OF CREDIT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Debt Disclosure [Abstract] | ' | ' |
Line of Credit Facility, Maximum Borrowing Capacity | $4,000,000 | ' |
Line of Credit Facility, Collateral | 'collateralized by substantially all of the assets of the Company | ' |
Line of Credit Facility, Expiration Date | 20-Dec-15 | ' |
Line of Credit Facility, Frequency of Payment and Payment Terms | 'interest payable monthly based on the bank's prime rate. | ' |
Letters of Credit Outstanding, Amount | $1,663,000 | $1,094,162 |
9_OTHER_ACCRUED_EXPENSES_Detai
9. OTHER ACCRUED EXPENSES (Details) - Schedule of Accrued Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Accrued Liabilities [Abstract] | ' | ' |
Accrued vacation pay | $488,446 | $480,307 |
Accrued warranty costs | 217,000 | 299,000 |
Customer advance payments | 696,970 | 214,921 |
Other accruals | 117,845 | 140,051 |
Totals | $1,520,261 | $1,134,279 |
10_ACCRUED_WARRANTY_COSTS_Deta
10. ACCRUED WARRANTY COSTS (Details) - Schedule of Product Warranty Liability (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Product Warranty Liability [Abstract] | ' | ' | ' |
Balance | $299,000 | $270,000 | $311,000 |
Reserve adjustment | -82,000 | 29,000 | -41,000 |
Balance | $217,000 | $299,000 | $270,000 |
11_LEASE_OBLIGATIONS_Details
11. LEASE OBLIGATIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Disclosure Text Block Supplement [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense | $677,917 | $522,965 | $410,773 |
11_LEASE_OBLIGATIONS_Details_S
11. LEASE OBLIGATIONS (Details) - Schedule of Future Minimum Rental Payments for Operating Leases (USD $) | Dec. 31, 2013 |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | ' |
2014 | $641,856 |
2015 | 592,520 |
2016 | 606,049 |
2017 | 595,284 |
2018 | 609,906 |
Thereafter | 403,358 |
Total | $3,448,973 |
12_INCOME_TAXES_Details_Schedu
12. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Components of Income Tax Expense [Abstract] | ' | ' | ' |
Domestic income tax expense | $550,608 | $111,000 | $711,000 |
Foreign income tax expense | 35,827 | 328,000 | 33,000 |
Deferred tax benefit | -114,451 | -150,000 | -34,000 |
Total income tax expense | $471,984 | $289,000 | $710,000 |
12_INCOME_TAXES_Details_Schedu1
12. INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ' | ' |
Accrued vacation and warranty | $228,613 | $304,000 |
Stock compensation additional paid in capital | 203,205 | 218,000 |
Accounts receivable and inventory allowances | 115,603 | 125,000 |
Depreciation | 17,413 | 0 |
Research Tax Credit | 320,342 | 0 |
Intangibles | 0 | 19,000 |
Gross deferred tax assets | 885,176 | 666,000 |
Intangibles amortization | -143,261 | 0 |
Gross deferred tax liability b depreciation | 0 | -39,000 |
Net deferred tax assets | 741,915 | 627,000 |
Current | 664,558 | 429,000 |
Non-current | $77,357 | $198,000 |
12_INCOME_TAXES_Details_Schedu2
12. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | ' | ' | ' |
Income before income taxes | $1,267,889 | $1,431,800 | $2,230,674 |
Applicable statutory tax rate | 34.00% | 34.00% | 34.00% |
Computed bexpectedb Federal income tax expense | 431,082 | 487,000 | 758,000 |
State income tax expense | 23,104 | 24,000 | 99,000 |
Tax credits and other | 17,798 | -222,000 | -147,000 |
Income tax expense | $471,984 | $289,000 | $710,000 |
13_MAJOR_CUSTOMERS_Details_Sch
13. MAJOR CUSTOMERS (Details) - Schedule of Revenue by Major Customers (Customer Concentration Risk [Member], Sales Revenue, Goods, Net [Member], USD $) | 12 Months Ended | 24 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Net Sales | $5,822,640 | ' | $8,046,875 | $8,055,765 |
% to Total Net Sales | 22.00% | 32.00% | 40.00% | ' |
U.S. Government Agencies [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Net Sales | 5,373,652 | ' | 5,778,656 | 5,305,622 |
% to Total Net Sales | 20.00% | 21.00% | 29.00% | ' |
Ministry of Energy and Water, Afghanistan [Member] | ' | ' | ' | ' |
Revenue, Major Customer [Line Items] | ' | ' | ' | ' |
Net Sales | $448,988 | ' | $2,268,219 | $2,750,143 |
% to Total Net Sales | 2.00% | 11.00% | 11.00% | ' |
13_MAJOR_CUSTOMERS_Details_Sch1
13. MAJOR CUSTOMERS (Details) - Schedule of Receivables Due from Major Customers (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Concentration Risk [Line Items] | ' | ' | ' |
Accounts receivable | $5,863,636 | $5,771,013 | ' |
U.S. Government Agencies [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Accounts receivable | 478,826 | 211,639 | 1,460,810 |
% of Total accounts receivable | 8.00% | 4.00% | 22.00% |
Ministry of Energy and Water, Afghanistan [Member] | Credit Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Accounts receivable | 440,935 | 1,325,693 | 1,447,536 |
% of Total accounts receivable | 8.00% | 23.00% | 21.00% |
Credit Concentration Risk [Member] | Accounts Receivable [Member] | ' | ' | ' |
Concentration Risk [Line Items] | ' | ' | ' |
Accounts receivable | $919,761 | $1,537,332 | $2,908,346 |
% of Total accounts receivable | 16.00% | 27.00% | 43.00% |
14_STOCK_BASED_COMPENSATION_De
14. STOCK BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 216 Months Ended | 204 Months Ended | 144 Months Ended | 48 Months Ended | ||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Employee Stock Option [Member] | Restricted Stock Units (RSUs) [Member] | 1996 Stock Option Plan [Member] | 1997 Stock Option Plan [Member] | 2002 Stock Option Plan [Member] | 2010 Equity Incentive Plan [Member] | ||||
14. STOCK BASED COMPENSATION (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | ' | ' | ' | ' | ' | 260,000 | 60,000 | 650,000 | 500,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 0 | 0 | ' | ' | ' | 260,000 | 60,000 | 562,059 | 65,246 |
Share-based Compensation Arrangement by Share-based Payment Award, Description | ' | ' | ' | 'Stock options under all of the plans may be granted at not less than 100 percent of the fair market value at the grant date | ' | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Terms of Award | ' | ' | ' | 'ten-year term from the date of grant | ' | ' | ' | ' | ' |
Share-based Compensation (in Dollars) | $119,685 | $137,554 | $103,216 | ' | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | ' | ' | ' | 16,000 | ' | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | ' | ' | ' | '1 year 6 months | '1 year | ' | ' | ' | ' |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options (in Dollars) | ' | ' | ' | ' | 114,000 | ' | ' | ' | ' |
Deferred Tax Expense from Stock Options Exercised (in Dollars) | ($30,408) | ($603,993) | ($211,638) | ' | ' | ' | ' | ' | ' |
14_STOCK_BASED_COMPENSATION_De1
14. STOCK BASED COMPENSATION (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 12 Months Ended |
Dec. 31, 2011 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract] | ' |
Risk free rate | 2.66% |
Risk free rate | 3.19% |
Expected volatility | 39.00% |
Dividend yield | 0.00% |
Expected term in years | '10 years |
14_STOCK_BASED_COMPENSATION_De2
14. STOCK BASED COMPENSATION (Details) - Schedule of Option Activity (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
14. STOCK BASED COMPENSATION (Details) - Schedule of Option Activity [Line Items] | ' | ' | ' |
Granted (in Shares) | 0 | 0 | ' |
Number of Shares [Member] | ' | ' | ' |
14. STOCK BASED COMPENSATION (Details) - Schedule of Option Activity [Line Items] | ' | ' | ' |
Outstanding at beginning of period (in Shares) | 155,978 | 492,978 | 634,252 |
Granted (in Shares) | 0 | 0 | 18,559 |
Exercised (in Shares) | -7,252 | -335,000 | -129,000 |
Forfeited or expired (in Shares) | -35,000 | -2,000 | -30,833 |
Outstanding at end of period (in Shares) | 113,726 | 155,978 | 492,978 |
Exercisable at end of period (in Shares) | 99,726 | 134,978 | 446,908 |
Nonvested at end of period (in Shares) | 14,000 | 21,000 | 46,070 |
Weighted Average Exercise Price [Member] | ' | ' | ' |
14. STOCK BASED COMPENSATION (Details) - Schedule of Option Activity [Line Items] | ' | ' | ' |
Outstanding at beginning of period | 6.45 | 2.61 | 2.37 |
Granted | 0 | 0 | 6.86 |
Exercised | 0.68 | 0.82 | 0.99 |
Forfeited or expired | 6.97 | 4.45 | 6.94 |
Outstanding at end of period | 6.66 | 6.45 | 2.61 |
Exercisable at end of period | 6.68 | 6.45 | 2.2 |
Nonvested at end of period | 6.47 | 6.47 | 6.62 |
Weighted Average Remaining Contractual Term [Member] | ' | ' | ' |
14. STOCK BASED COMPENSATION (Details) - Schedule of Option Activity [Line Items] | ' | ' | ' |
Outstanding at beginning of period | '5 years 200 days | '2 years 339 days | '3 years 215 days |
Outstanding at end of period | '4 years 343 days | '5 years 200 days | '2 years 339 days |
Exercisable at end of period | '4 years 266 days | '5 years 98 days | '2 years 153 days |
Nonvested at end of period | '6 years 138 days | '7 years 138 days | '7 years 321 days |
Aggregate Intrinsic Value [Member] | ' | ' | ' |
14. STOCK BASED COMPENSATION (Details) - Schedule of Option Activity [Line Items] | ' | ' | ' |
Outstanding at beginning of period (in Dollars) | 33,991 | 1,925,176 | 2,747,390 |
Granted | 0 | 0 | 0 |
Exercised (in Dollars) | 32,489 | 1,493,031 | -529,095 |
Forfeited or expired (in Dollars) | 0 | 0 | 0 |
Outstanding at end of period (in Dollars) | 1,600 | 33,991 | 1,925,176 |
Exercisable at end of period (in Dollars) | 1,600 | 33,991 | 1,925,176 |
Nonvested at end of period (in Dollars) | 0 | 0 | 0 |
14_STOCK_BASED_COMPENSATION_De3
14. STOCK BASED COMPENSATION (Details) - Schedule of Restricted Stock Activity (USD $) | 12 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | |
Number of Shares [Member] | Number of Shares [Member] | Weighted Average Grant Date Fair Value [Member] | Weighted Average Grant Date Fair Value [Member] | Weighted Average Remaining Contractual Term [Member] | Weighted Average Remaining Contractual Term [Member] | Weighted Average Remaining Contractual Term [Member] | Aggregate Intrinsic Value [Member] | Aggregate Intrinsic Value [Member] | |
14. STOCK BASED COMPENSATION (Details) - Schedule of Restricted Stock Activity [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding restricted stock units at begining of period | 69,375 | 0 | ' | ' | ' | ' | ' | ' | ' |
Outstanding restricted stock units at begining of period | ' | ' | $4.21 | $0 | ' | ' | ' | ' | ' |
Outstanding restricted stock units at begining of period | ' | ' | ' | ' | '1 year 87 days | '2 years 204 days | '0 years | ' | ' |
Outstanding restricted stock units at begining of period | ' | ' | ' | ' | ' | ' | ' | $350,344 | $0 |
Granted | 9,000 | 79,500 | ' | ' | ' | ' | ' | ' | ' |
Granted | ' | ' | $5.61 | $4.21 | ' | ' | ' | ' | ' |
Granted | ' | ' | ' | ' | ' | ' | ' | 50,490 | 334,865 |
Forfeited | -13,125 | -10,125 | ' | ' | ' | ' | ' | ' | ' |
Forfeited | ' | ' | $4.21 | $4.21 | ' | ' | ' | ' | ' |
Forfeited | ' | ' | ' | ' | ' | ' | ' | -74,156 | 51,131 |
Vested | -19,125 | 0 | ' | ' | ' | ' | ' | ' | ' |
Vested | ' | ' | $4.21 | $0 | ' | ' | ' | ' | ' |
Vested | ' | ' | ' | ' | ' | ' | ' | -96,581 | 0 |
Outstanding restricted stock units at end of period | 46,125 | 69,375 | ' | ' | ' | ' | ' | ' | ' |
Outstanding restricted stock units at end of period | ' | ' | $4.36 | $4.21 | ' | ' | ' | ' | ' |
Outstanding restricted stock units at end of period | ' | ' | ' | ' | '1 year 87 days | '2 years 204 days | '0 years | ' | ' |
Outstanding restricted stock units at end of period | ' | ' | ' | ' | ' | ' | ' | 237,083 | 350,344 |
Restricted stock units expected to vest | 34,955 | 55,275 | ' | ' | ' | ' | ' | ' | ' |
Restricted stock units expected to vest | ' | ' | $4.41 | $4.21 | ' | ' | ' | ' | ' |
Restricted stock units expected to vest | ' | ' | ' | ' | '1 year 18 days | '2 years 204 days | ' | ' | ' |
Restricted stock units expected to vest | ' | ' | ' | ' | ' | ' | ' | $179,669 | $279,139 |
15_EARNINGS_PER_SHARE_Details
15. EARNINGS PER SHARE (Details) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Earnings Per Share [Abstract] | ' | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 98,726 | 139,000 | 138,000 |
15_EARNINGS_PER_SHARE_Details_
15. EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net income (in Dollars) | $331,898 | $486,975 | ($53,170) | $30.20 | $176,787 | $490,452 | $551,670 | ($76,109) | $699,469 | $541,000 | ($21,372) | $301,577 | $795,905 | $1,142,800 | $1,520,674 |
Shares used in calculation of income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,052,516 | 4,802,569 | 4,619,542 |
Effect of dilutive options | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 56,727 | 86,858 | 301,752 |
Diluted | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,109,243 | 4,889,427 | 4,921,294 |
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basic (in Dollars per share) | $0.07 | $0.10 | ($0.01) | $0.01 | $0.04 | $0.10 | $0.12 | ($0.02) | $0.15 | $0.12 | $0 | $0.07 | $0.16 | $0.24 | $0.33 |
Diluted (in Dollars per share) | $0.06 | $0.10 | ($0.01) | $0.01 | $0.04 | $0.10 | $0.11 | ($0.02) | $0.14 | $0.11 | $0 | $0.06 | $0.16 | $0.23 | $0.31 |
16_ACQUISITION_Details
16. ACQUISITION (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
16. ACQUISITION (Details) [Line Items] | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | $1,214,330 | $4,241,914 | $0 |
Sabio Instruments [Member] | ' | ' | ' |
16. ACQUISITION (Details) [Line Items] | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | 1,214,330 | ' | ' |
Business Combination, Acquisition Related Costs | 125,000 | ' | ' |
IPS MeteoStar [Member] | ' | ' | ' |
16. ACQUISITION (Details) [Line Items] | ' | ' | ' |
Payments to Acquire Businesses, Net of Cash Acquired | ' | 4,241,914 | ' |
Business Combination, Acquisition Related Costs | ' | $958,000 | ' |
16_ACQUISITION_Details_Schedul
16. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
16. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ' | ' | ' |
Goodwill | $4,452,152 | $3,768,435 | $570,150 |
Sabio Instruments [Member] | ' | ' | ' |
16. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ' | ' | ' |
Accounts Receivable | 82,853 | ' | ' |
Inventory | 167,099 | ' | ' |
Prepaid items and other assets | 3,267 | ' | ' |
Property and equipment | 9,516 | ' | ' |
Deferred tax asset | 9,000 | ' | ' |
Accrued expenses | -43,122 | ' | ' |
Intangibles | 302,000 | ' | ' |
Goodwill | 683,717 | ' | ' |
Totals | $1,214,330 | ' | ' |
16_ACQUISITION_Details_Schedul1
16. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
16. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ' | ' | ' |
Goodwill | $4,452,152 | $3,768,435 | $570,150 |
IPS MeteoStar [Member] | ' | ' | ' |
16. ACQUISITION (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ' | ' | ' |
Property and equipment | ' | 309,545 | ' |
Deferred asset | ' | 64,866 | ' |
Accrued expenses | ' | -190,782 | ' |
Intangible assets | ' | 860,000 | ' |
Goodwill | ' | 3,198,285 | ' |
Totals | ' | $4,241,914 | ' |
17_PROFIT_SHARING_PLAN_Details
17. PROFIT SHARING PLAN (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Compensation and Retirement Disclosure [Abstract] | ' | ' | ' |
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | ' | ' |
Defined Benefit Plan, Contributions by Employer | $397,000 | $314,000 | $240,000 |
18_SEGMENT_INFORMATION_Details
18. SEGMENT INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Segment Reporting [Abstract] | ' |
Number of Operating Segments | 2 |
18_SEGMENT_INFORMATION_Details1
18. SEGMENT INFORMATION (Details) - Schedule of Segment Reporting Information, by Segment (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | $7,285,363 | $7,124,591 | $6,343,240 | $6,455,110 | $7,646,114 | $7,042,056 | $6,804,168 | $3,737,181 | $6,078,012 | $5,415,230 | $3,848,508 | $4,880,619 | $27,208,304 | $25,229,519 | $20,222,369 |
Operating Income (Loss) | 603,830 | 662,384 | -87,216 | 41,999 | 1,961 | 685,224 | 801,325 | -131,493 | 921,191 | 826,730 | -73,214 | 454,452 | 1,220,997 | 1,357,017 | 2,129,159 |
Total Assets | 28,142,885 | ' | ' | ' | 26,871,046 | ' | ' | ' | 24,083,000 | ' | ' | ' | 28,142,885 | 26,871,046 | 24,083,000 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 382,996 | 315,338 | 267,741 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 207,000 | 179,000 | 87,000 |
Standard Products [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,588,000 | 8,132,000 | 9,023,000 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,556,000 | 1,163,000 | 1,166,000 |
Total Assets | 7,036,000 | ' | ' | ' | 6,728,000 | ' | ' | ' | 6,021,000 | ' | ' | ' | 7,036,000 | 6,728,000 | 6,021,000 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 131,000 | 139,000 | 147,000 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 46,000 | 9,000 | 36,000 |
Systems / Services [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 16,620,000 | 17,098,000 | 11,199,000 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | -335,000 | 194,000 | 963,000 |
Total Assets | 7,598,000 | ' | ' | ' | 7,266,000 | ' | ' | ' | 6,502,000 | ' | ' | ' | 7,598,000 | 7,266,000 | 6,502,000 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 252,000 | 176,000 | 121,000 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 161,000 | 170,000 | 51,000 |
Corporate and Other [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Segment Reporting Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Sales | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Operating Income (Loss) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Total Assets | 13,509,000 | ' | ' | ' | 12,877,000 | ' | ' | ' | 11,560,000 | ' | ' | ' | 13,509,000 | 12,877,000 | 11,560,000 |
Depreciation | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 0 | 0 |
Capital Expenditures | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $0 | $0 | $0 |
18_SEGMENT_INFORMATION_Details2
18. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
18. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | ' | ' | ' |
Sales | $12,382 | $14,424 | $10,632 |
Central and South America [Member] | ' | ' | ' |
18. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | ' | ' | ' |
Sales | 3,687 | 2,278 | 3,852 |
Canada [Member] | ' | ' | ' |
18. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | ' | ' | ' |
Sales | 2,278 | 1,707 | 1,759 |
Asia [Member] | ' | ' | ' |
18. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | ' | ' | ' |
Sales | 3,525 | 3,380 | 1,570 |
Europe and Other [Member] | ' | ' | ' |
18. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | ' | ' | ' |
Sales | 1,468 | 2,723 | 473 |
Middle East [Member] | ' | ' | ' |
18. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | ' | ' | ' |
Sales | $1,424 | $4,336 | $2,978 |
19_SUMMARIZED_QUARTERLY_UNAUDI2
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Parent | $331,898 | $486,975 | ($53,170) | $30.20 | $176,787 | $490,452 | $551,670 | ($76,109) | $699,469 | $541,000 | ($21,372) | $301,577 | $795,905 | $1,142,800 | $1,520,674 |
Restatement Adjustment [Member] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenues | ' | ' | ' | ' | ' | -236,943 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net Income (Loss) Attributable to Parent | ' | ' | ' | ' | ' | ($134,943) | ' | ' | ' | ' | ' | ' | ' | ' | ' |
19_SUMMARIZED_QUARTERLY_UNAUDI3
19. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) - Schedule of Quarterly Financial Information (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2011 | Jun. 30, 2011 | Mar. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Quarterly Financial Information [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Net sales | $7,285,363 | $7,124,591 | $6,343,240 | $6,455,110 | $7,646,114 | $7,042,056 | $6,804,168 | $3,737,181 | $6,078,012 | $5,415,230 | $3,848,508 | $4,880,619 | $27,208,304 | $25,229,519 | $20,222,369 |
Gross profit | 2,904,860 | 2,877,004 | 2,356,172 | 2,646,141 | 2,852,056 | 2,961,935 | 2,776,502 | 1,426,592 | 2,351,331 | 2,316,241 | 1,380,086 | 1,848,626 | 10,784,177 | 10,017,086 | 7,896,284 |
Operating income (loss) | 603,830 | 662,384 | -87,216 | 41,999 | 1,961 | 685,224 | 801,325 | -131,493 | 921,191 | 826,730 | -73,214 | 454,452 | 1,220,997 | 1,357,017 | 2,129,159 |
Net income (loss) | $331,898 | $486,975 | ($53,170) | $30.20 | $176,787 | $490,452 | $551,670 | ($76,109) | $699,469 | $541,000 | ($21,372) | $301,577 | $795,905 | $1,142,800 | $1,520,674 |
Basic (loss) income per common share (in Dollars per share) | $0.07 | $0.10 | ($0.01) | $0.01 | $0.04 | $0.10 | $0.12 | ($0.02) | $0.15 | $0.12 | $0 | $0.07 | $0.16 | $0.24 | $0.33 |
Diluted (loss) income per common share (in Dollars per share) | $0.06 | $0.10 | ($0.01) | $0.01 | $0.04 | $0.10 | $0.11 | ($0.02) | $0.14 | $0.11 | $0 | $0.06 | $0.16 | $0.23 | $0.31 |