Document_And_Entity_Informatio
Document And Entity Information (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Mar. 20, 2015 | Jun. 30, 2014 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | Sutron Corp | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | -19 | ||
Entity Common Stock, Shares Outstanding | 5,084,134 | ||
Entity Public Float | $18,796,470 | ||
Amendment Flag | FALSE | ||
Entity Central Index Key | 728331 | ||
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-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Current Assets: | ||
Cash and cash equivalents | $7,873,903 | $8,283,092 |
Restricted cash and cash equivalents | 809,509 | 850,279 |
Accounts receivable, net | 4,693,260 | 4,480,218 |
Costs in excess of billings | 1,500,603 | 1,383,418 |
Inventory | 4,747,676 | 4,876,641 |
Prepaid items and other assets | 293,568 | 446,749 |
Income taxes receivable | 173,537 | 106,897 |
Deferred income taxes | 1,046,593 | 664,558 |
Total Current Assets | 21,138,649 | 21,091,852 |
Property and Equipment, Net | 1,935,760 | 1,532,144 |
Other Assets | ||
Goodwill | 4,452,152 | 4,452,152 |
Intangibles, net of amortization | 722,466 | 907,495 |
Deferred tax asset | 0 | 77,357 |
Other assets | 102,514 | 81,885 |
Total Assets | 28,351,541 | 28,142,885 |
Current Liabilities: | ||
Accounts payable | 1,045,170 | 1,170,446 |
Accrued payroll | 110,639 | 468,454 |
Deferred revenue | 1,286,121 | 686,029 |
Deferred rent | 149,011 | 139,146 |
Other accrued expenses | 1,520,074 | 1,520,261 |
Billings in excess of costs and estimated earnings | 125,242 | 388,687 |
Total Current Liabilities | 4,236,257 | 4,373,023 |
Long-Term Liabilities | ||
Deferred rent | 608,568 | 751,245 |
Deferred tax liability | 30,871 | 0 |
Total Liabilities | 4,875,696 | 5,124,268 |
Stockholders’ Equity | ||
Common stock, $0.01 par value, 12,000,000 shares authorized; 5,084,134 and 5,066,009 issued and outstanding | 50,842 | 50,660 |
Additional paid-in capital | 5,465,723 | 5,340,277 |
Retained earnings | 18,354,164 | 17,869,256 |
Accumulated other comprehensive loss | -394,884 | -241,576 |
Total Stockholders’ Equity | 23,475,845 | 23,018,617 |
Total Liabilities and Stockholders’ Equity | $28,351,541 | $28,142,885 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parentheticals) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Common stock, shares authorized | 12,000,000 | 12,000,000 |
Common stock, shares issued | 5,084,134 | 5,066,009 |
Common stock, shares outstanding | 5,084,134 | 5,066,009 |
Common stock, par value (in Dollars per share) | $0.01 | $0.01 |
CONSOLIDATED_STATEMENTS_OF_OPE
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Net sales and revenues | $7,170,132 | $6,558,381 | $7,615,540 | $4,899,345 | $7,285,363 | $7,124,591 | $6,343,240 | $6,455,110 | $7,646,114 | $7,042,056 | $6,804,168 | $3,737,181 | $26,243,398 | $27,208,304 | $25,229,519 |
Cost of sales and revenues | 15,914,728 | 16,424,127 | 15,212,433 | ||||||||||||
Gross profit | 2,961,176 | 2,729,069 | 3,002,384 | 1,636,041 | 2,904,860 | 2,877,004 | 2,356,172 | 2,646,141 | 2,852,056 | 2,961,935 | 2,776,502 | 1,426,592 | 10,328,670 | 10,784,177 | 10,017,086 |
Operating expenses: | |||||||||||||||
Selling, general and administrative expenses | 6,647,788 | 6,124,930 | 5,275,676 | ||||||||||||
Research and development expenses | 3,367,172 | 3,438,250 | 3,384,393 | ||||||||||||
Total operating expenses | 10,014,960 | 9,563,180 | 8,660,069 | ||||||||||||
Operating income | 615,231 | 229,232 | 362,004 | -892,757 | 603,830 | 662,384 | -87,216 | 41,999 | 1,961 | 685,224 | 801,325 | -131,493 | 313,710 | 1,220,997 | 1,357,017 |
Financing income, net | 83,067 | 46,892 | 74,783 | ||||||||||||
Income before income taxes | 396,777 | 1,267,889 | 1,431,800 | ||||||||||||
Income tax expense (benefit) | -88,131 | 471,984 | 289,000 | ||||||||||||
Net income | 620,599 | 150,333 | 254,194 | -540,218 | 331,898 | 486,975 | -53,170 | 30,202 | 176,787 | 490,452 | 551,670 | -76,109 | 484,908 | 795,905 | 1,142,800 |
Net income per share: | |||||||||||||||
Basic income per share (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.07 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.12 | ($0.02) | $0.10 | $0.16 | $0.24 |
Diluted income per share (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.06 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.11 | ($0.02) | $0.09 | $0.16 | $0.23 |
Comprehensive income (loss): | |||||||||||||||
Net income | 620,599 | 150,333 | 254,194 | -540,218 | 331,898 | 486,975 | -53,170 | 30,202 | 176,787 | 490,452 | 551,670 | -76,109 | 484,908 | 795,905 | 1,142,800 |
Foreign currency translation adjustments | -153,308 | -58,973 | -6,094 | ||||||||||||
Comprehensive income | $331,600 | $736,932 | $1,136,706 |
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, 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 | |||
Foreign currency translation adjustment | -6,094 | -6,094 | |||
Amortization of stock based compensation | 137,554 | 137,554 | |||
Exercise of stock options | 3,350 | 873,943 | 877,293 | ||
Exercise of stock options (in Shares) | 335,000 | -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 | ||||
Net income | 795,905 | 795,905 | |||
Foreign currency translation adjustment | -58,973 | -58,973 | |||
Issuance of stock | 191 | 191 | |||
Issuance of stock (in Shares) | 19,125 | ||||
Amortization of stock based compensation | 119,685 | 119,685 | |||
Exercise of stock options | 72 | 35,267 | 35,339 | ||
Exercise of stock options (in Shares) | 7,252 | -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 | |||
Net income | 484,908 | 484,908 | |||
Foreign currency translation adjustment | -153,308 | -153,308 | |||
Issuance of stock | 182 | 182 | |||
Issuance of stock (in Shares) | 18,125 | ||||
Amortization of stock based compensation | 125,446 | 125,446 | |||
Exercise of stock options (in Shares) | 0 | ||||
Balance at Dec. 31, 2014 | $50,842 | $5,465,723 | $18,354,164 | ($394,884) | $23,475,845 |
Balance (in Shares) at Dec. 31, 2014 | 5,084,134 | 5,084,134 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Cash Flows from Operating Activities: | |||
Net income | $484,908 | $795,905 | $1,142,800 |
Noncash items included in net income: | |||
Depreciation | 455,566 | 382,996 | 315,338 |
Amortization of intangible assets | 185,029 | 176,138 | 78,367 |
Provision (recovery) for bad debt | -28,700 | -13,509 | 230,485 |
Stock based compensation | 125,446 | 119,685 | 137,554 |
Deferred income taxes | -273,807 | -114,451 | -150,000 |
(Gain) on disposal of property | -8,774 | 0 | 0 |
Tax benefit from stock options exercised | 0 | -30,408 | -603,993 |
Change in current assets and liabilities: | |||
Accounts receivable | -184,341 | 684,432 | 816,711 |
Costs in excess of billings | -117,186 | -680,693 | -63,775 |
Inventory | 128,965 | -418,037 | -770,975 |
Prepaid items and other assets | 153,181 | -194,936 | 73,823 |
Income taxes receivable | -66,640 | 1,135,220 | -214,770 |
Accounts payable | -125,276 | -130,471 | 501,910 |
Deferred revenues | 600,092 | 154,632 | 382,602 |
Accrued expenses | -358,002 | 345,909 | -353,875 |
Billings in excess of costs and estimated earnings | -263,445 | 82,539 | 105,133 |
Deferred rent | -132,812 | -116,502 | -120,967 |
Net Cash Provided by Operating Activities | 574,204 | 2,178,449 | 1,506,368 |
Cash Flows from Investing Activities: | |||
Restricted cash and cash equivalents | 40,770 | -39,883 | -50,359 |
Purchase of property and equipment | -861,530 | -207,407 | -179,131 |
Business acquisition | 0 | -1,214,330 | -4,241,914 |
Certificate of deposit | 0 | 0 | 924,294 |
Other assets | -20,629 | 13,332 | 8,374 |
Proceeds from the sale of property and equipment | 11,122 | 0 | 0 |
Net Cash Provided (Used) by Investing Activities | -830,267 | -1,448,288 | -3,538,736 |
Cash Flows from Financing Activities: | |||
Tax benefit from stock options exercised | 0 | 30,408 | 603,993 |
Proceeds from stock options exercised | 0 | 4,931 | 273,300 |
Proceeds from the issuance of stock | 182 | 191 | 0 |
Net Cash Provided by Financing Activities | 182 | 35,530 | 877,293 |
Effect of exchange rate changes on cash and cash equivalents | -153,308 | -58,973 | -6,094 |
Net increase (decrease) in cash and cash equivalents | -409,189 | 706,718 | -1,161,169 |
Cash and Cash Equivalents, beginning of year | 8,283,092 | 7,576,374 | 8,737,543 |
Cash and Cash Equivalents, end of year | $7,873,903 | $8,283,092 | $7,576,374 |
1_ORGANIZATION_AND_BASIS_OF_PR
1. ORGANIZATION AND BASIS OF PRESENTATION | 12 Months Ended |
Dec. 31, 2014 | |
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_RESTATEMENT_OF_CONSOLIDATED_
2. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Accounting Changes and Error Corrections [Text Block] | 2. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS | ||||||||||||
In its annual review process of its 2014 financial records, the Company’s management identified errors relating to over-booking of costs of goods sold amounts related to the Company’s service department. The Company’s service department repairs products that have been delivered to customers and that subsequently require repair, either under warranty or for a fee. The Company’s accounting system has been set up to accumulate the costs associated with the service department in two places, costs of goods sold for costed repair orders and costs accumulated that are recorded when the customer is invoiced for a particular repair order. Historically, to avoid double counting the service department costs, a manual entry has been performed to reverse the costs the system records for costed repair orders. In the 2014 year-end review process, it was discovered that the manual entry to reverse the costs the system records for costed repair orders was not made for the first three quarters of 2014. This overstatement of cost was confined solely to the 2014 quarterly statements. The adjustments to remove these costs from each respective 2014 quarter had no impact on the Company’s liquidity or cash position. | |||||||||||||
The restatements reflect the recalculation of costs of goods sold for each of the previously issued interim financial statements contained in our Form 10-Q for the three months ended March 31, 2014, the three months ended June 30, 2014, and the three months ended September 30, 2014. The Company’s restated Consolidated Balance Sheets as of March 31, 2014, June 30, 2014, and September 30, 2014, respectively, are: | |||||||||||||
SUTRON CORPORATION | |||||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Restated | Restated | Restated | |||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | |||||||||||
ASSETS | |||||||||||||
Current Assets: | |||||||||||||
Cash and cash equivalents | $ | 8,296,797 | $ | 7,751,469 | $ | 7,177,741 | |||||||
Restricted cash and cash equivalents | 875,820 | 856,619 | 952,968 | ||||||||||
Accounts receivable, net | 5,663,123 | 6,815,994 | 5,327,202 | ||||||||||
Inventory, net | 5,276,830 | 5,532,102 | 5,278,898 | ||||||||||
Prepaid items and other assets | 685,756 | 675,586 | 387,994 | ||||||||||
Income taxes receivable | 77,866 | 59,078 | 295,019 | ||||||||||
Deferred income taxes | 1,051,717 | 967,668 | 896,787 | ||||||||||
Total Current Assets | 21,927,909 | 22,658,516 | 20,316,609 | ||||||||||
Property and Equipment, Net | 1,466,119 | 1,728,419 | 1,770,713 | ||||||||||
Other Assets | |||||||||||||
Goodwill | 4,452,152 | 4,452,152 | 4,452,152 | ||||||||||
Intangibles, net of amortization | 861,238 | 814,981 | 768,724 | ||||||||||
Deferred tax assets | 64,075 | 50,353 | 49,716 | ||||||||||
Other Assets | 80,427 | 105,430 | 103,971 | ||||||||||
Total Assets | $ | 28,851,920 | $ | 29,809,851 | $ | 27,461,885 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current Liabilities: | |||||||||||||
Accounts payable | $ | 1,362,497 | $ | 1,189,988 | $ | 865,330 | |||||||
Accrued payroll | 292,751 | 537,524 | 245,104 | ||||||||||
Deferred rent | 143,910 | 146,438 | |||||||||||
Deferred revenue | 789,573 | 1,075,592 | 825,681 | ||||||||||
Other accrued expenses | 2,820,613 | 3,088,090 | 1,683,612 | ||||||||||
Billings in excess of costs and estimated earnings | 253,770 | 329,445 | 125,200 | ||||||||||
Total Current Liabilities | 5,519,204 | 6,364,549 | 3,891,365 | ||||||||||
Long-Term Liabilities | |||||||||||||
Deferred rent | 859, 351 | 682,657 | 645,612 | ||||||||||
Deferred income taxes | - | - | - | ||||||||||
Total Liabilities | 6,378, 555 | 7,047,206 | 4,536,977 | ||||||||||
Stockholders’ Equity | |||||||||||||
Common stock, 12,000,000 shares authorized; | 50, 660 | 50,660 | 50,660 | ||||||||||
5,066,009 issued and outstanding | |||||||||||||
Additional paid-in capital | 5,363,275 | 5,393,582 | 5,431,634 | ||||||||||
Retained earnings | 17,329,038 | 17,583,231 | 17,733,565 | ||||||||||
Accumulated other comprehensive loss | (269,608 | ) | (264,828 | ) | (290,951 | ) | |||||||
Total Stockholders’ Equity | 22,473,365 | 22,762,645 | 22,924,908 | ||||||||||
Total Liabilities and Stockholders’ Equity | $ | 28,851,920 | $ | 29,809,851 | $ | 27,461,885 | |||||||
The Company’s restated Consolidated Statements of Income and Comprehensive Income for the three months ending March 31, 2014, June 30, 2014, and September 30, 2014, respectively, are: | |||||||||||||
SUTRON CORPORATION | |||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME | |||||||||||||
(Unaudited) | (Unaudited) Restated | (Unaudited) Restated For the three Months ended | |||||||||||
Restated For the three Months ended | For the three Months ended | September 30, | |||||||||||
March 31, | June 30, | 2014 | |||||||||||
2014 | 2014 | ||||||||||||
Net sales and revenues | $ | 4,899,345 | $ | 7,615,540 | $ | 6,558,381 | |||||||
Cost of sales and revenues | 3,263,304 | 4,613,156 | 3,829,312 | ||||||||||
Gross profit | 1,636,041 | 3,002,384 | 2,729,069 | ||||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 1,659,849 | 1,924,213 | 1,660,133 | ||||||||||
Research and development expenses | 868,949 | 716,167 | 839,704 | ||||||||||
Total operating expenses | 2,528,798 | 2,640,380 | 2,499,837 | ||||||||||
Operating income | (892,757 | ) | 362,004 | 229,232 | |||||||||
Financing income, net | 2,873 | 17,660 | 17,072 | ||||||||||
Income before income taxes | (889,884 | ) | 379,664 | 246,304 | |||||||||
Income tax expense (benefit) | (349,666 | ) | 125,470 | 95,971 | |||||||||
Net income | $ | (540,218 | ) | $ | 254,194 | $ | 150,333 | ||||||
Net income per share: | |||||||||||||
Basic income per share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | ||||||
Diluted income per share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | ||||||
Comprehensive income (loss): | |||||||||||||
Net income | (540,218 | ) | 254,194 | 150,333 | |||||||||
Foreign currency translation adjustments | (28,032 | ) | 4,780 | (26,123 | ) | ||||||||
Comprehensive income | $ | (568,250 | ) | $ | 258,974 | $ | 124,210 | ||||||
3_SUMMARY_OF_SIGNIFICANT_ACCOU
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies [Text Block] | 3. 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 quarters. 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. | ||
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 $3,700, $500 and $900 for the years ended December 31, 2014, 2013 and 2012. Income taxes paid approximated $244,000, $6,000 and $366,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Foreign income tax approximated $19,000, $36,000 and $328,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Restricted Cash | ||
For the years ended December 31, 2014 and 2013, the Company had submitted bid bonds or performance bonds on both official tenders or awarded contracts. At December 31, 2014 and 2013, cash in the amount of $809,509 and $850,279, 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 as the result of prior year recoveries for the years ending December 31, 2014 and 2013 was $(28,700) and $(13,509). Bad debt expense, net of recoveries, for the year ending December 31, 2012 was $230,485. | ||
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, 2014, 2013 and 2012 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, 2014, 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 2011. | ||
Capital | ||
The Company has 12,000,000, $.01 par value, shares of authorized Common Stock. There were 5,084,134 and shares issued and outstanding at December 31, 2014 and 5,066,009 shares issued and outstanding at December 31, 2013. | ||
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. | ||
We believe the following critical accounting policies, among others, affect our more significant judgments and estimates used in the preparation of the consolidated financial statements. | ||
· | Revenue recognition; | |
· | Allowance for doubtful accounts; | |
· | Allowances for excess and obsolete inventories; | |
· | Accounting for warranty obligations; | |
· | Goodwill impairment; | |
· | Accounting and valuation of stock option compensation: | |
· | Contingencies and litigation; | |
· | Accounting for income taxes; and | |
· | Acquisition accounting. | |
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. For stock options granted during the year ended December 31, 2014, 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. | ||
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. | ||
Warranty Obligations | ||
We warrant our products for up to two years and 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. | ||
Recent Accounting Pronouncements | ||
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company is currently assessing the impact that ASU 2014-12 will have on its consolidated financial statements. | ||
In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-09 will have on its consolidated financial statements. | ||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in this ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results and include disposals of a major geographic area, a major line of business, or a major equity method investment. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Additionally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements. | ||
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 did not have a material impact on the Company’s consolidated financial statements. | ||
4_ACCOUNTS_RECEIVABLE
4. ACCOUNTS RECEIVABLE | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | 4. ACCOUNTS RECEIVABLE | ||||||||
Accounts receivable at December 31, consists of the following: | |||||||||
2014 | 2013 | ||||||||
Trade receivables | $ | 4,504,720 | $ | 4,335,205 | |||||
Contract retainage | 263,540 | 249,013 | |||||||
Allowance for doubtful accounts | (75,000 | ) | (104,000 | ) | |||||
Totals | $ | 4,693,260 | $ | 4,480,218 | |||||
5_INVENTORY
5. INVENTORY | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Inventory Disclosure [Text Block] | 5. INVENTORY | ||||||||
Inventory consists of the following at December 31: | |||||||||
2014 | 2013 | ||||||||
Electronic components | $ | 2,314,073 | $ | 2,556,827 | |||||
Work in process | 1,844,330 | 1,936,202 | |||||||
Finished goods | 1,237,547 | 1,109,491 | |||||||
Allowance for obsolete inventory | (648,274 | ) | (725,879 | ) | |||||
Totals | $ | 4,747,676 | $ | 4,876,641 | |||||
6_PROPERTY_AND_EQUIPMENT
6. PROPERTY AND EQUIPMENT | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment Disclosure [Text Block] | 6. PROPERTY AND EQUIPMENT | ||||||||
A summary of property and equipment at December 31 is as follows: | |||||||||
2014 | 2013 | ||||||||
Furniture, fixtures and equipment | $ | 3,435,734 | $ | 2,581,754 | |||||
Vehicles | 253,176 | 253,176 | |||||||
Leasehold improvements | 1,596,739 | 1,591,537 | |||||||
Totals | $ | 5,285,649 | $ | 4,426,467 | |||||
Accumulated depreciation at December 31 is as follows: | |||||||||
2014 | 2013 | ||||||||
Furniture, fixtures and equipment | $ | 2,217,288 | $ | 1,929,301 | |||||
Vehicles | 246,974 | 242,726 | |||||||
Leasehold improvements | 885,627 | 722,296 | |||||||
Totals | $ | 3,349,889 | $ | 2,894,323 | |||||
Property and Equipment, Net | $ | 1,935,760 | $ | 1,532,144 | |||||
Depreciation expense totaled $455,566, $382,996 and $315,338 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||
7_GOODWILL_AND_INTANGIBLES
7. GOODWILL AND INTANGIBLES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||
Intangible Assets Disclosure [Text Block] | 7. GOODWILL AND INTANGIBLES | ||||||||||||
The change in carrying value of goodwill for the year ended December 31, 2014 is as follows: | |||||||||||||
Balance as of December 31, 2012 | $ | 3,768,435 | |||||||||||
Acquisition of Sabio Instruments | 683,717 | ||||||||||||
Balance as of December 31, 2013 | $ | 4,452,152 | |||||||||||
Acquisitions and other | - | ||||||||||||
Balance as of December 31, 2014 | $ | 4,452,152 | |||||||||||
The carrying values of the Company's amortizable acquired intangible assets are as follows: | |||||||||||||
December 31, 2014 | |||||||||||||
Gross | Net | ||||||||||||
Carrying | Accumulated | Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
Customer relationships | 829,000 | (287,513 | ) | 541,487 | |||||||||
Acquired technology | 333,000 | (152,021 | ) | 180,979 | |||||||||
$ | 1,162,000 | $ | (439,534 | ) | $ | 722,466 | |||||||
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 | |||||||
Amortization expense related to intangible assets was approximately $185,029, $176,138, and $78,367 for the years ended December 31, 2014, 2013, and 2012 respectively. | |||||||||||||
The weighted average remaining amortization period by major asset class as of December 31, 2014 is as follows: | |||||||||||||
(In years) | |||||||||||||
Acquired technology | 2.8 | ||||||||||||
Customer relationships | 4.6 | ||||||||||||
The estimated future amortization of acquired intangible assets as of December 31, 2014 is as follows: | |||||||||||||
2015 | $ | 185,029 | |||||||||||
2016 | 185,029 | ||||||||||||
2017 | 161,579 | ||||||||||||
2018 | 123,269 | ||||||||||||
2019 | 63,515 | ||||||||||||
Thereafter | 4,045 | ||||||||||||
$ | 722,466 | ||||||||||||
8_CONTRACTS_IN_PROGRESS
8. CONTRACTS IN PROGRESS | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Contractors [Abstract] | |||||||||
Long-term Contracts or Programs Disclosure [Text Block] | 8. CONTRACTS IN PROGRESS | ||||||||
A summary of contracts in progress at December 31 is as follows: | |||||||||
2014 | 2013 | ||||||||
Costs incurred to date | $ | 6,155,641 | $ | 6,471,964 | |||||
Estimated earnings | 2,975,509 | 3,052,272 | |||||||
Revenue recognized to date | 9,131,150 | 9,524,236 | |||||||
Billings to date | (7,755,789 | ) | (8,529,505 | ) | |||||
$ | 1,375,361 | $ | 994,731 | ||||||
Included in the accompanying balance sheets: | |||||||||
Costs in excess of billings on uncompleted contracts | $ | 1,500,603 | $ | 1,383,418 | |||||
Billings in excess of costs on uncompleted contracts | (125,242 | ) | (388,687 | ) | |||||
$ | 1,375,361 | $ | 994,731 | ||||||
9_LINE_OF_CREDIT
9. LINE OF CREDIT | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | 9. 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, 2014, 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, 2014 and 2013, 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, 2014 and 2013, the commercial bank had issued stand-by letters of credit on behalf of the Company in the amount of $1,128,432 and $1,663,000, respectively. The amount available under the line of credit was reduced by this amount. | |
10_OTHER_ACCRUED_EXPENSES
10. OTHER ACCRUED EXPENSES | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | 10. OTHER ACCRUED EXPENSES | ||||||||
Components of other accrued expenses consist of the following at December 31: | |||||||||
2014 | 2013 | ||||||||
Accrued vacation pay | $ | 582,872 | $ | 488,446 | |||||
Accrued warranty costs | 207,000 | 217,000 | |||||||
Customer advance payments | 503,655 | 696,970 | |||||||
Other accruals | 226,547 | 117,845 | |||||||
Totals | $ | 1,520,074 | $ | 1,520,261 | |||||
11_ACCRUED_WARRANTY_COSTS
11. ACCRUED WARRANTY COSTS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Product Warranties Disclosures [Abstract] | |||||
Product Warranty Disclosure [Text Block] | 11. 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, 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 | ||||
Reserve adjustment | (10,000 | ) | |||
Balance as of December 31, 2014 | $ | 207,000 | |||
12_LEASE_OBLIGATIONS
12. LEASE OBLIGATIONS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Commitments Disclosure [Text Block] | 12. 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: | |||||
2015 | $ | 681,180 | |||
2016 | 620,389 | ||||
2017 | 595,159 | ||||
2018 | 609,906 | ||||
2019 | 329,624 | ||||
Thereafter | 73,734 | ||||
Total | $ | 2,909,992 | |||
Total rent expense under non-cancellable operating leases was $641,584, $677,917 and $522,965 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||
13_INCOME_TAXES
13. INCOME TAXES | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Tax Disclosure [Text Block] | 13. INCOME TAXES | ||||||||||||
The income tax expense charged to operations for the years ended December 31, were as follows: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic income tax expense | $ | 166,354 | $ | 550,608 | $ | 111,000 | |||||||
Foreign income tax expense | 19,322 | 35,827 | 328,000 | ||||||||||
Deferred tax benefit | (273,807 | ) | (114,451 | ) | (150,000 | ) | |||||||
Total income tax expense (benefit) | $ | (88,131 | ) | $ | 471,984 | $ | 289,000 | ||||||
Deferred tax amounts, are comprised of the following at December 31: | |||||||||||||
2014 | 2013 | ||||||||||||
Accrued vacation, warranty and compensation | $ | 327,175 | $ | 228,613 | |||||||||
Stock compensation additional paid in capital | 228,864 | 203,205 | |||||||||||
Accounts receivable and inventory allowances | 103,621 | 115,603 | |||||||||||
Depreciation | - | 17,413 | |||||||||||
R&D Tax Credits | 592,336 | 320,342 | |||||||||||
Foreign Tax Credits | 23,461 | - | |||||||||||
Deferred tax assets | 1,275,457 | 885,176 | |||||||||||
Intangibles amortization | (210,663 | ) | (143,261 | ) | |||||||||
Depreciation | (49,072 | ) | - | ||||||||||
Deferred tax liabilities | (259,735 | ) | (143,261 | ) | |||||||||
Net deferred tax assets | $ | 1,015,722 | $ | 741,915 | |||||||||
The net deferred tax amount mentioned above has been classified on the consolidated balance sheets as of December 31, as follows: | |||||||||||||
2014 | 2013 | ||||||||||||
Current tax assets | $ | 1,046,593 | $ | 664,558 | |||||||||
Non-current tax assets | 228,865 | 77,357 | |||||||||||
Non-current tax liabilities | (259,736 | ) | - | ||||||||||
Net deferred tax liabilities | (30,871 | ) | 77,357 | ||||||||||
Net deferred tax assets | $ | 1,015,722 | $ | 741,915 | |||||||||
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: | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income before income taxes | $ | 396,777 | $ | 1,267,889 | $ | 1,431,800 | |||||||
Applicable statutory tax rate | 34 | % | 34 | % | 34 | % | |||||||
Computed “expected” Federal income tax expense | 134,904 | 431,082 | 487,000 | ||||||||||
Adjustments to Federal income tax resulting from: | |||||||||||||
State income tax expense | 6,802 | 23,104 | 24,000 | ||||||||||
Tax credits (benefit) and other | (229,837 | ) | 17,798 | (222,000 | ) | ||||||||
Income tax expense | $ | (88,131 | ) | $ | 471,984 | $ | 289,000 | ||||||
14_MAJOR_CUSTOMERS
14. MAJOR CUSTOMERS | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Risks and Uncertainties [Abstract] | |||||||||||||||||||||||||
Concentration Risk Disclosure [Text Block] | 14. MAJOR CUSTOMERS | ||||||||||||||||||||||||
Net sales for the years ended December 31, 2014, 2013 and 2012, 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, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
U.S. Government Agencies | $ | 5,773,530 | $ | 5,373,652 | $ | 5,305,622 | 22 | % | 20 | % | 21 | % | |||||||||||||
Ministry of Energy and Water, Afghanistan | 944,563 | 448,988 | 2,750,143 | 3 | % | 2 | % | 11 | % | ||||||||||||||||
$ | 6,718,093 | $ | 5,822,640 | $ | 8,055,765 | 25 | % | 22 | % | 32 | % | ||||||||||||||
Accounts Receivable | % of Total Accounts | ||||||||||||||||||||||||
Amount at December 31, | Receivable at December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
U.S. Government Agencies | $ | 781,330 | $ | 478,826 | $ | 211,639 | 13 | % | 8% | 4 | % | ||||||||||||||
Ministry of Energy and Water, Afghanistan | 1,115,366 | 440,935 | 1,325,693 | 18 | % | 8% | 23 | % | |||||||||||||||||
$ | 1,896,696 | $ | 919,761 | $ | 1,537,332 | 31 | % | 16% | 27 | % | |||||||||||||||
Because of the nature of the Company’s business, the major customers may vary between years. | |||||||||||||||||||||||||
15_STOCK_BASED_COMPENSATION
15. STOCK BASED COMPENSATION | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | 15. 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 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, 552,059 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, 73,250 of which have been granted as restricted stock units and 200,000 of which have been granted as stock options. 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 200,000 stock options granted during the twelve months ended December 31, 2014 and none issued during the twelve months ended December 31, 2013. There were 9,000 RSU’s granted to directors during the twelve months ended December 31, 2014 and 2013. There were 79,500 RSU’s granted to key employees and directors during the twelve months ended December 31, 2012. The grants related to key employees in 2012 contained performance measurement targets. A portion of those shares did not qualify for vesting as they failed to meet their goals resulting in 1,000 shares, 13,125 shares and 10,125 shares that did not vest in 2014, 2013 and 2012, respectively. Stock based compensation expense relating to stock option awards and RSU’s for the years ended December 31, 2014, 2013 and 2012 was $125,446, $119,685 and $137,554, 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, 2014 relating to stock options totaled approximately $290,000 and these costs will be expensed over a weighted average period of approximately 4.29 years. Unamortized stock compensation expense as of December 31, 2014 relating to RSU’s totaled approximately $60,000 and these costs will be expensed over a weighted average period of approximately 1.97 years. | |||||||||||||||||
For stock options granted during the year ended December 31, 2014, 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: | |||||||||||||||||
2014 | |||||||||||||||||
Risk free rate | 2.54 | % | |||||||||||||||
Expected volatility | 21 | % | |||||||||||||||
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: | |||||||||||||||||
2014 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Exercise Price | Intrinsic Value | ||||||||||||||||
Outstanding at beginning of period | 113,726 | $ | 6.66 | 4.94 | $ | 1,600 | |||||||||||
Granted | 200,000 | 4.52 | - | - | |||||||||||||
Exercised | - | - | - | ||||||||||||||
Forfeited or expired | (10,000 | ) | 6.47 | - | - | ||||||||||||
Outstanding at end of period | 303,726 | $ | 5.26 | 7.73 | $ | 96,920 | |||||||||||
Exercisable at end of period | 98,726 | $ | 6.36 | 3.93 | $ | 900 | |||||||||||
Nonvested at end of period | 205,000 | $ | 4.73 | 9.57 | $ | 96,020 | |||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Exercise Price | 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 | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Exercise Price | 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 | $ | - | |||||||||||
For RSU’s granted during the year ended December 31, 2014 and 2013, 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, 2014 and 2013, respectively: | |||||||||||||||||
2014 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Grant Date Fair Value | Intrinsic Value | ||||||||||||||||
Outstanding restricted stock units at January 1, 2014 | 46,125 | $ | 4.36 | 1.24 | $ | 237,083 | |||||||||||
Granted | 9,000 | 5 | - | ||||||||||||||
Forfeited | (1,000 | ) | 5.14 | - | |||||||||||||
Vested | (18,125 | ) | 5.66 | - | |||||||||||||
Outstanding restricted stock units at December 31, 2014 | 36,000 | $ | 5.49 | 1.71 | $ | 180,004 | |||||||||||
Restricted stock units expected to vest | 25,830 | $ | 5.43 | 1.56 | $ | 129,153 | |||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Grant Date Fair Value | 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 | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Grant Date Fair Value | 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, 2014, 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 $0, $30,408 and $603,993 in 2014, 2013 and 2012. | |||||||||||||||||
16_EARNINGS_PER_SHARE
16. EARNINGS PER SHARE | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Share [Text Block] | 16. 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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 484,908 | $ | 795,905 | $ | 1,142,800 | |||||||
Shares used in calculation of income per share: | |||||||||||||
Basic | 5,069,783 | 5,052,516 | 4,802,569 | ||||||||||
Effect of dilutive options | 19,384 | 10,602 | 17,483 | ||||||||||
Effect of dilutive restricted shares | 36,000 | 46,125 | 69,375 | ||||||||||
Diluted | 5,125,167 | 5,109,243 | 4,889,427 | ||||||||||
Net income per share: | |||||||||||||
Basic | $ | 0.1 | $ | 0.16 | $ | 0.24 | |||||||
Diluted | $ | 0.09 | $ | 0.16 | $ | 0.23 | |||||||
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, 103,726 and 139,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |||||||||||||
17_ACQUISITIONS
17. ACQUISITIONS | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Disclosure Text Block Supplement [Abstract] | |||||
Mergers, Acquisitions and Dispositions Disclosures [Text Block] | 17. 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. | |||||
18_PROFIT_SHARING_PLAN
18. PROFIT SHARING PLAN | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | 18. 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, 2014, 2013 and 2012. The employer matching contribution was approximately $416,000, $397,000 and $314,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | |
19_SEGMENT_INFORMATION
19. SEGMENT INFORMATION | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Segment Reporting Disclosure [Text Block] | 19. 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 | 2014 | $ | 10,748 | $ | 1,163 | $ | 7,088 | $ | 92 | $ | 639 | |||||||||||
2013 | 10,588 | 1,556 | 7,036 | 131 | 46 | |||||||||||||||||
2012 | 8,132 | 1,163 | 6,728 | 139 | 9 | |||||||||||||||||
Systems/Services | 2014 | 15,495 | (849 | ) | 7,655 | 364 | 223 | |||||||||||||||
2013 | 16,620 | (335 | ) | 7,598 | 252 | 161 | ||||||||||||||||
2012 | 17,098 | 194 | 7,266 | 176 | 170 | |||||||||||||||||
Corporate and Unallocated | 2014 | - | - | 13,609 | - | - | ||||||||||||||||
2013 | - | - | 13,509 | - | - | |||||||||||||||||
2012 | - | - | 12,877 | - | - | |||||||||||||||||
Total Company | 2014 | $ | 26,243 | $ | 314 | $ | 28,352 | $ | 456 | $ | 862 | |||||||||||
2013 | 27,208 | 1,221 | 28,143 | 383 | 207 | |||||||||||||||||
2012 | 25,230 | 1,357 | 26,871 | 315 | 179 | |||||||||||||||||
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): | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Central and South America | $ | 4,789 | $ | 3,687 | $ | 2,278 | ||||||||||||||||
Asia | 2,727 | 3,525 | 3,380 | |||||||||||||||||||
Middle East | 2,115 | 1,424 | 4,336 | |||||||||||||||||||
Canada | 1.979 | 2.278 | 1.707 | |||||||||||||||||||
Europe and other | 1,220 | 1,468 | 2,723 | |||||||||||||||||||
$ | 12,830 | $ | 12,382 | $ | 14,424 | |||||||||||||||||
20_SUMMARIZED_QUARTERLY_UNAUDI
20. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Quarterly Financial Information [Text Block] | 20. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA | ||||||||||||||||
2014 | |||||||||||||||||
Restated Q1 | Restated Q2 | Restated Q3 | Restated Q4 | ||||||||||||||
Net sales | $ | 4,899,345 | $ | 7,615,540 | $ | 6,558,381 | $ | 7,170,132 | |||||||||
Gross profit | 1,636,041 | 3,002,384 | 2,729,069 | 2,961,176 | |||||||||||||
Operating income (loss) | (892,757 | ) | 362,004 | 229,232 | 615,231 | ||||||||||||
Net income (loss) | $ | (540,218 | ) | $ | 254,194 | $ | 150,333 | $ | 620,599 | ||||||||
Basic income (loss) per common share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | $ | 0.12 | ||||||||
Diluted income (loss) per common share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | $ | 0.12 | ||||||||
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 income (loss) per common share | $ | 0.01 | $ | 0.01 | $ | 0.1 | $ | 0.07 | |||||||||
Diluted income (loss) 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 | (131,493 | ) | 801,325 | 685,224 | 1,961 | ||||||||||||
Net income | $ | (76,109 | ) | $ | 551,670 | $ | 490,452 | $ | 176,787 | ||||||||
Basic income (loss) per common share | $ | (0.02 | ) | $ | 0.12 | $ | 0.1 | $ | 0.04 | ||||||||
Diluted income (loss) per common share | $ | (0.02 | ) | $ | 0.11 | $ | 0.1 | $ | 0.04 | ||||||||
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. | |||||||||||||||||
Our results for the three, six and nine month periods ended March 31, 2014, June 30, 2014 and September 30, 2014, respectively, were also restated to correct errors in such consolidated interim financial statements relating to overstating costs of goods sold amounts related to the Company’s service department. The results were restated to decrease costs of goods sold and increasing net income by $47,258, $48,429, and $32,559 for the three month period ended March 31, 2014, June 30, 2014, and September 30, 2014, respectively. Full details of the restatement can be found in Footnote 2 to the financial statements above. | |||||||||||||||||
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. | |||||||||||||||||
21_LEGAL_CONTINGENCIES
21. LEGAL CONTINGENCIES | 12 Months Ended |
Dec. 31, 2014 | |
Disclosure Text Block Supplement [Abstract] | |
Legal Matters and Contingencies [Text Block] | 21. 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, 2014 | ||
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 quarters. 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. | ||
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 $3,700, $500 and $900 for the years ended December 31, 2014, 2013 and 2012. Income taxes paid approximated $244,000, $6,000 and $366,000 for the years ended December 31, 2014, 2013 and 2012, respectively. Foreign income tax approximated $19,000, $36,000 and $328,000 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Restricted Cash | |
For the years ended December 31, 2014 and 2013, the Company had submitted bid bonds or performance bonds on both official tenders or awarded contracts. At December 31, 2014 and 2013, cash in the amount of $809,509 and $850,279, 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 as the result of prior year recoveries for the years ending December 31, 2014 and 2013 was $(28,700) and $(13,509). Bad debt expense, net of recoveries, for the year ending December 31, 2012 was $230,485. | ||
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, 2014, 2013 and 2012 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, 2014, 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 2011. | ||
Stockholders' Equity, Policy [Policy Text Block] | Capital | |
The Company has 12,000,000, $.01 par value, shares of authorized Common Stock. There were 5,084,134 and shares issued and outstanding at December 31, 2014 and 5,066,009 shares issued and outstanding at December 31, 2013. | ||
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. | ||
We believe the following critical accounting policies, among others, affect our more significant judgments and estimates used in the preparation of the consolidated financial statements. | ||
· | Revenue recognition; | |
· | Allowance for doubtful accounts; | |
· | Allowances for excess and obsolete inventories; | |
· | Accounting for warranty obligations; | |
· | Goodwill impairment; | |
· | Accounting and valuation of stock option compensation: | |
· | Contingencies and litigation; | |
· | Accounting for income taxes; and | |
· | Acquisition accounting. | |
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. For stock options granted during the year ended December 31, 2014, 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. | ||
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. | ||
Standard Product Warranty, Policy [Policy Text Block] | Warranty Obligations | |
We warrant our products for up to two years and 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. | ||
New Accounting Pronouncements, Policy [Policy Text Block] | Recent Accounting Pronouncements | |
In June 2014, the FASB issued ASU No. 2014-12, “Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period”. The new guidance applies to reporting entities that grant employees share-based payments in which the terms of the award allow a performance target to be achieved after the requisite service period. The amendments in the ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. Existing guidance in “Compensation – Stock Compensation (Topic 718)” should be applied to account for these types of awards. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Early adoption is permitted and reporting entities may choose to apply the amendments in the ASU either on a prospective or retrospective basis. The Company is currently assessing the impact that ASU 2014-12 will have on its consolidated financial statements. | ||
In June 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers: Topic 606”. This ASU applies to any entity using U.S. GAAP that either enters into contracts with customers to transfer goods or services or enters into contracts for the transfer of nonfinancial assets unless those contracts are within the scope of other standards. The guidance supersedes the revenue recognition requirements in Topic 605, “Revenue Recognition”, most industry-specific guidance, and some cost guidance included in Subtopic 605-35, “Revenue Recognition—Construction-Type and Production-Type Contracts”. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To be in alignment with the core principle, an entity must apply a five step process including: identification of the contract(s) with a customer, identification of performance obligations in the contract(s), determination of the transaction price, allocation of the transaction price to the performance obligations, and recognition of revenue when (or as) the entity satisfies a performance obligation. Additionally, the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer have also been amended to be consistent with the guidance on recognition and measurement. The amendments in this ASU are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. Early adoption is not permitted. The Company is currently assessing the impact that ASU 2014-09 will have on its consolidated financial statements. | ||
In April 2014, the FASB issued ASU 2014-08, “Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity.” The amendments in this ASU change the criteria for reporting discontinued operations while enhancing disclosures in this area. Under the new guidance, only disposals representing a strategic shift in operations should be presented as discontinued operations. Those strategic shifts should have a major effect on the organization’s operations and financial results and include disposals of a major geographic area, a major line of business, or a major equity method investment. The new guidance requires expanded disclosures about discontinued operations that will provide financial statement users with more information about the assets, liabilities, income, and expenses of discontinued operations. Additionally, the new guidance requires disclosure of the pre-tax income attributable to a disposal of a significant part of an organization that does not qualify for discontinued operations reporting. The amendments in the ASU are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. The Company does not expect the adoption of ASU 2014-08 to have a material impact on its consolidated financial statements. | ||
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 did not have a material impact on the Company’s consolidated financial statements. |
2_RESTATEMENT_OF_CONSOLIDATED_1
2. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Accounting Changes and Error Corrections [Abstract] | |||||||||||||
Schedule of Error Corrections and Prior Period Adjustments [Table Text Block] | The restatements reflect the recalculation of costs of goods sold for each of the previously issued interim financial statements contained in our Form 10-Q for the three months ended March 31, 2014, the three months ended June 30, 2014, and the three months ended September 30, 2014. | ||||||||||||
(Unaudited) | (Unaudited) | (Unaudited) | |||||||||||
Restated | Restated | Restated | |||||||||||
31-Mar-14 | 30-Jun-14 | 30-Sep-14 | |||||||||||
ASSETS | |||||||||||||
Current Assets: | |||||||||||||
Cash and cash equivalents | $ | 8,296,797 | $ | 7,751,469 | $ | 7,177,741 | |||||||
Restricted cash and cash equivalents | 875,820 | 856,619 | 952,968 | ||||||||||
Accounts receivable, net | 5,663,123 | 6,815,994 | 5,327,202 | ||||||||||
Inventory, net | 5,276,830 | 5,532,102 | 5,278,898 | ||||||||||
Prepaid items and other assets | 685,756 | 675,586 | 387,994 | ||||||||||
Income taxes receivable | 77,866 | 59,078 | 295,019 | ||||||||||
Deferred income taxes | 1,051,717 | 967,668 | 896,787 | ||||||||||
Total Current Assets | 21,927,909 | 22,658,516 | 20,316,609 | ||||||||||
Property and Equipment, Net | 1,466,119 | 1,728,419 | 1,770,713 | ||||||||||
Other Assets | |||||||||||||
Goodwill | 4,452,152 | 4,452,152 | 4,452,152 | ||||||||||
Intangibles, net of amortization | 861,238 | 814,981 | 768,724 | ||||||||||
Deferred tax assets | 64,075 | 50,353 | 49,716 | ||||||||||
Other Assets | 80,427 | 105,430 | 103,971 | ||||||||||
Total Assets | $ | 28,851,920 | $ | 29,809,851 | $ | 27,461,885 | |||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||
Current Liabilities: | |||||||||||||
Accounts payable | $ | 1,362,497 | $ | 1,189,988 | $ | 865,330 | |||||||
Accrued payroll | 292,751 | 537,524 | 245,104 | ||||||||||
Deferred rent | 143,910 | 146,438 | |||||||||||
Deferred revenue | 789,573 | 1,075,592 | 825,681 | ||||||||||
Other accrued expenses | 2,820,613 | 3,088,090 | 1,683,612 | ||||||||||
Billings in excess of costs and estimated earnings | 253,770 | 329,445 | 125,200 | ||||||||||
Total Current Liabilities | 5,519,204 | 6,364,549 | 3,891,365 | ||||||||||
Long-Term Liabilities | |||||||||||||
Deferred rent | 859, 351 | 682,657 | 645,612 | ||||||||||
Deferred income taxes | - | - | - | ||||||||||
Total Liabilities | 6,378, 555 | 7,047,206 | 4,536,977 | ||||||||||
Stockholders’ Equity | |||||||||||||
Common stock, 12,000,000 shares authorized; | 50, 660 | 50,660 | 50,660 | ||||||||||
5,066,009 issued and outstanding | |||||||||||||
Additional paid-in capital | 5,363,275 | 5,393,582 | 5,431,634 | ||||||||||
Retained earnings | 17,329,038 | 17,583,231 | 17,733,565 | ||||||||||
Accumulated other comprehensive loss | (269,608 | ) | (264,828 | ) | (290,951 | ) | |||||||
Total Stockholders’ Equity | 22,473,365 | 22,762,645 | 22,924,908 | ||||||||||
Total Liabilities and Stockholders’ Equity | $ | 28,851,920 | $ | 29,809,851 | $ | 27,461,885 | |||||||
(Unaudited) | (Unaudited) Restated | (Unaudited) Restated For the three Months ended | |||||||||||
Restated For the three Months ended | For the three Months ended | September 30, | |||||||||||
March 31, | June 30, | 2014 | |||||||||||
2014 | 2014 | ||||||||||||
Net sales and revenues | $ | 4,899,345 | $ | 7,615,540 | $ | 6,558,381 | |||||||
Cost of sales and revenues | 3,263,304 | 4,613,156 | 3,829,312 | ||||||||||
Gross profit | 1,636,041 | 3,002,384 | 2,729,069 | ||||||||||
Operating expenses: | |||||||||||||
Selling, general and administrative expenses | 1,659,849 | 1,924,213 | 1,660,133 | ||||||||||
Research and development expenses | 868,949 | 716,167 | 839,704 | ||||||||||
Total operating expenses | 2,528,798 | 2,640,380 | 2,499,837 | ||||||||||
Operating income | (892,757 | ) | 362,004 | 229,232 | |||||||||
Financing income, net | 2,873 | 17,660 | 17,072 | ||||||||||
Income before income taxes | (889,884 | ) | 379,664 | 246,304 | |||||||||
Income tax expense (benefit) | (349,666 | ) | 125,470 | 95,971 | |||||||||
Net income | $ | (540,218 | ) | $ | 254,194 | $ | 150,333 | ||||||
Net income per share: | |||||||||||||
Basic income per share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | ||||||
Diluted income per share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | ||||||
Comprehensive income (loss): | |||||||||||||
Net income | (540,218 | ) | 254,194 | 150,333 | |||||||||
Foreign currency translation adjustments | (28,032 | ) | 4,780 | (26,123 | ) | ||||||||
Comprehensive income | $ | (568,250 | ) | $ | 258,974 | $ | 124,210 |
4_ACCOUNTS_RECEIVABLE_Tables
4. ACCOUNTS RECEIVABLE (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Receivables [Abstract] | |||||||||
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable at December 31, consists of the following: | ||||||||
2014 | 2013 | ||||||||
Trade receivables | $ | 4,504,720 | $ | 4,335,205 | |||||
Contract retainage | 263,540 | 249,013 | |||||||
Allowance for doubtful accounts | (75,000 | ) | (104,000 | ) | |||||
Totals | $ | 4,693,260 | $ | 4,480,218 |
5_INVENTORY_Tables
5. INVENTORY (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Inventory Disclosure [Abstract] | |||||||||
Schedule of Inventory, Current [Table Text Block] | Inventory consists of the following at December 31: | ||||||||
2014 | 2013 | ||||||||
Electronic components | $ | 2,314,073 | $ | 2,556,827 | |||||
Work in process | 1,844,330 | 1,936,202 | |||||||
Finished goods | 1,237,547 | 1,109,491 | |||||||
Allowance for obsolete inventory | (648,274 | ) | (725,879 | ) | |||||
Totals | $ | 4,747,676 | $ | 4,876,641 |
6_PROPERTY_AND_EQUIPMENT_Table
6. PROPERTY AND EQUIPMENT (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment [Table Text Block] | A summary of property and equipment at December 31 is as follows: | ||||||||
2014 | 2013 | ||||||||
Furniture, fixtures and equipment | $ | 3,435,734 | $ | 2,581,754 | |||||
Vehicles | 253,176 | 253,176 | |||||||
Leasehold improvements | 1,596,739 | 1,591,537 | |||||||
Totals | $ | 5,285,649 | $ | 4,426,467 | |||||
2014 | 2013 | ||||||||
Furniture, fixtures and equipment | $ | 2,217,288 | $ | 1,929,301 | |||||
Vehicles | 246,974 | 242,726 | |||||||
Leasehold improvements | 885,627 | 722,296 | |||||||
Totals | $ | 3,349,889 | $ | 2,894,323 | |||||
Property and Equipment, Net | $ | 1,935,760 | $ | 1,532,144 |
7_GOODWILL_AND_INTANGIBLES_Tab
7. GOODWILL AND INTANGIBLES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure Text Block [Abstract] | |||||||||||||
Schedule of Goodwill [Table Text Block] | The change in carrying value of goodwill for the year ended December 31, 2014 is as follows: | ||||||||||||
Balance as of December 31, 2012 | $ | 3,768,435 | |||||||||||
Acquisition of Sabio Instruments | 683,717 | ||||||||||||
Balance as of December 31, 2013 | $ | 4,452,152 | |||||||||||
Acquisitions and other | - | ||||||||||||
Balance as of December 31, 2014 | $ | 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, 2014 | |||||||||||||
Gross | Net | ||||||||||||
Carrying | Accumulated | Carrying | |||||||||||
Amount | Amortization | Amount | |||||||||||
Customer relationships | 829,000 | (287,513 | ) | 541,487 | |||||||||
Acquired technology | 333,000 | (152,021 | ) | 180,979 | |||||||||
$ | 1,162,000 | $ | (439,534 | ) | $ | 722,466 | |||||||
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 | |||||||
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, 2014 is as follows: | ||||||||||||
(In years) | |||||||||||||
Acquired technology | 2.8 | ||||||||||||
Customer relationships | 4.6 | ||||||||||||
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | The estimated future amortization of acquired intangible assets as of December 31, 2014 is as follows: | ||||||||||||
2015 | $ | 185,029 | |||||||||||
2016 | 185,029 | ||||||||||||
2017 | 161,579 | ||||||||||||
2018 | 123,269 | ||||||||||||
2019 | 63,515 | ||||||||||||
Thereafter | 4,045 | ||||||||||||
$ | 722,466 |
8_CONTRACTS_IN_PROGRESS_Tables
8. CONTRACTS IN PROGRESS (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Contractors [Abstract] | |||||||||
Costs in Excess of Billings and Billings in Excess of Costs [Table Text Block] | A summary of contracts in progress at December 31 is as follows: | ||||||||
2014 | 2013 | ||||||||
Costs incurred to date | $ | 6,155,641 | $ | 6,471,964 | |||||
Estimated earnings | 2,975,509 | 3,052,272 | |||||||
Revenue recognized to date | 9,131,150 | 9,524,236 | |||||||
Billings to date | (7,755,789 | ) | (8,529,505 | ) | |||||
$ | 1,375,361 | $ | 994,731 | ||||||
Included in the accompanying balance sheets: | |||||||||
Costs in excess of billings on uncompleted contracts | $ | 1,500,603 | $ | 1,383,418 | |||||
Billings in excess of costs on uncompleted contracts | (125,242 | ) | (388,687 | ) | |||||
$ | 1,375,361 | $ | 994,731 |
10_OTHER_ACCRUED_EXPENSES_Tabl
10. OTHER ACCRUED EXPENSES (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Payables and Accruals [Abstract] | |||||||||
Schedule of Accrued Liabilities [Table Text Block] | Components of other accrued expenses consist of the following at December 31: | ||||||||
2014 | 2013 | ||||||||
Accrued vacation pay | $ | 582,872 | $ | 488,446 | |||||
Accrued warranty costs | 207,000 | 217,000 | |||||||
Customer advance payments | 503,655 | 696,970 | |||||||
Other accruals | 226,547 | 117,845 | |||||||
Totals | $ | 1,520,074 | $ | 1,520,261 |
11_ACCRUED_WARRANTY_COSTS_Tabl
11. ACCRUED WARRANTY COSTS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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, 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 | ||||
Reserve adjustment | (10,000 | ) | |||
Balance as of December 31, 2014 | $ | 207,000 |
12_LEASE_OBLIGATIONS_Tables
12. LEASE OBLIGATIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
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: | |||||
2015 | $ | 681,180 | |||
2016 | 620,389 | ||||
2017 | 595,159 | ||||
2018 | 609,906 | ||||
2019 | 329,624 | ||||
Thereafter | 73,734 | ||||
Total | $ | 2,909,992 |
13_INCOME_TAXES_Tables
13. INCOME TAXES (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Domestic income tax expense | $ | 166,354 | $ | 550,608 | $ | 111,000 | |||||||
Foreign income tax expense | 19,322 | 35,827 | 328,000 | ||||||||||
Deferred tax benefit | (273,807 | ) | (114,451 | ) | (150,000 | ) | |||||||
Total income tax expense (benefit) | $ | (88,131 | ) | $ | 471,984 | $ | 289,000 | ||||||
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred tax amounts, are comprised of the following at December 31: | ||||||||||||
2014 | 2013 | ||||||||||||
Accrued vacation, warranty and compensation | $ | 327,175 | $ | 228,613 | |||||||||
Stock compensation additional paid in capital | 228,864 | 203,205 | |||||||||||
Accounts receivable and inventory allowances | 103,621 | 115,603 | |||||||||||
Depreciation | - | 17,413 | |||||||||||
R&D Tax Credits | 592,336 | 320,342 | |||||||||||
Foreign Tax Credits | 23,461 | - | |||||||||||
Deferred tax assets | 1,275,457 | 885,176 | |||||||||||
Intangibles amortization | (210,663 | ) | (143,261 | ) | |||||||||
Depreciation | (49,072 | ) | - | ||||||||||
Deferred tax liabilities | (259,735 | ) | (143,261 | ) | |||||||||
Net deferred tax assets | $ | 1,015,722 | $ | 741,915 | |||||||||
2014 | 2013 | ||||||||||||
Current tax assets | $ | 1,046,593 | $ | 664,558 | |||||||||
Non-current tax assets | 228,865 | 77,357 | |||||||||||
Non-current tax liabilities | (259,736 | ) | - | ||||||||||
Net deferred tax liabilities | (30,871 | ) | 77,357 | ||||||||||
Net deferred tax assets | $ | 1,015,722 | $ | 741,915 | |||||||||
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: | ||||||||||||
2014 | 2013 | 2012 | |||||||||||
Income before income taxes | $ | 396,777 | $ | 1,267,889 | $ | 1,431,800 | |||||||
Applicable statutory tax rate | 34 | % | 34 | % | 34 | % | |||||||
Computed “expected” Federal income tax expense | 134,904 | 431,082 | 487,000 | ||||||||||
Adjustments to Federal income tax resulting from: | |||||||||||||
State income tax expense | 6,802 | 23,104 | 24,000 | ||||||||||
Tax credits (benefit) and other | (229,837 | ) | 17,798 | (222,000 | ) | ||||||||
Income tax expense | $ | (88,131 | ) | $ | 471,984 | $ | 289,000 |
14_MAJOR_CUSTOMERS_Tables
14. MAJOR CUSTOMERS (Tables) (Customer Concentration Risk [Member]) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Customer Concentration Risk [Member] | |||||||||||||||||||||||||
14. 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, 2014, 2013 and 2012, 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, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
U.S. Government Agencies | $ | 5,773,530 | $ | 5,373,652 | $ | 5,305,622 | 22 | % | 20 | % | 21 | % | |||||||||||||
Ministry of Energy and Water, Afghanistan | 944,563 | 448,988 | 2,750,143 | 3 | % | 2 | % | 11 | % | ||||||||||||||||
$ | 6,718,093 | $ | 5,822,640 | $ | 8,055,765 | 25 | % | 22 | % | 32 | % | ||||||||||||||
Accounts Receivable | % of Total Accounts | ||||||||||||||||||||||||
Amount at December 31, | Receivable at December 31, | ||||||||||||||||||||||||
2014 | 2013 | 2012 | 2014 | 2013 | 2012 | ||||||||||||||||||||
U.S. Government Agencies | $ | 781,330 | $ | 478,826 | $ | 211,639 | 13 | % | 8% | 4 | % | ||||||||||||||
Ministry of Energy and Water, Afghanistan | 1,115,366 | 440,935 | 1,325,693 | 18 | % | 8% | 23 | % | |||||||||||||||||
$ | 1,896,696 | $ | 919,761 | $ | 1,537,332 | 31 | % | 16% | 27 | % |
15_STOCK_BASED_COMPENSATION_Ta
15. STOCK BASED COMPENSATION (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
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: | ||||||||||||||||
2014 | |||||||||||||||||
Risk free rate | 2.54 | % | |||||||||||||||
Expected volatility | 21 | % | |||||||||||||||
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: | ||||||||||||||||
2014 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Exercise Price | Intrinsic Value | ||||||||||||||||
Outstanding at beginning of period | 113,726 | $ | 6.66 | 4.94 | $ | 1,600 | |||||||||||
Granted | 200,000 | 4.52 | - | - | |||||||||||||
Exercised | - | - | - | ||||||||||||||
Forfeited or expired | (10,000 | ) | 6.47 | - | - | ||||||||||||
Outstanding at end of period | 303,726 | $ | 5.26 | 7.73 | $ | 96,920 | |||||||||||
Exercisable at end of period | 98,726 | $ | 6.36 | 3.93 | $ | 900 | |||||||||||
Nonvested at end of period | 205,000 | $ | 4.73 | 9.57 | $ | 96,020 | |||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Exercise Price | 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 | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Exercise Price | 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 | $ | - | |||||||||||
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, 2014 and 2013, respectively: | ||||||||||||||||
2014 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Grant Date Fair Value | Intrinsic Value | ||||||||||||||||
Outstanding restricted stock units at January 1, 2014 | 46,125 | $ | 4.36 | 1.24 | $ | 237,083 | |||||||||||
Granted | 9,000 | 5 | - | ||||||||||||||
Forfeited | (1,000 | ) | 5.14 | - | |||||||||||||
Vested | (18,125 | ) | 5.66 | - | |||||||||||||
Outstanding restricted stock units at December 31, 2014 | 36,000 | $ | 5.49 | 1.71 | $ | 180,004 | |||||||||||
Restricted stock units expected to vest | 25,830 | $ | 5.43 | 1.56 | $ | 129,153 | |||||||||||
2013 | |||||||||||||||||
Number of Shares | Weighted Average | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Grant Date Fair Value | 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 | Weighted Average Remaining Contractual Term (Years) | Aggregate | ||||||||||||||
Grant Date Fair Value | 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 |
16_EARNINGS_PER_SHARE_Tables
16. EARNINGS PER SHARE (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
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, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Net income | $ | 484,908 | $ | 795,905 | $ | 1,142,800 | |||||||
Shares used in calculation of income per share: | |||||||||||||
Basic | 5,069,783 | 5,052,516 | 4,802,569 | ||||||||||
Effect of dilutive options | 19,384 | 10,602 | 17,483 | ||||||||||
Effect of dilutive restricted shares | 36,000 | 46,125 | 69,375 | ||||||||||
Diluted | 5,125,167 | 5,109,243 | 4,889,427 | ||||||||||
Net income per share: | |||||||||||||
Basic | $ | 0.1 | $ | 0.16 | $ | 0.24 | |||||||
Diluted | $ | 0.09 | $ | 0.16 | $ | 0.23 |
17_ACQUISITIONS_Tables
17. ACQUISITIONS (Tables) | 12 Months Ended | ||||
Dec. 31, 2014 | |||||
Sabio Instruments [Member] | |||||
17. ACQUISITIONS (Tables) [Line Items] | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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 | |||
IPS MeteoStar [Member] | |||||
17. ACQUISITIONS (Tables) [Line Items] | |||||
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | 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 |
19_SEGMENT_INFORMATION_Tables
19. SEGMENT INFORMATION (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment [Table Text Block] | 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 | 2014 | $ | 10,748 | $ | 1,163 | $ | 7,088 | $ | 92 | $ | 639 | |||||||||||
2013 | 10,588 | 1,556 | 7,036 | 131 | 46 | |||||||||||||||||
2012 | 8,132 | 1,163 | 6,728 | 139 | 9 | |||||||||||||||||
Systems/Services | 2014 | 15,495 | (849 | ) | 7,655 | 364 | 223 | |||||||||||||||
2013 | 16,620 | (335 | ) | 7,598 | 252 | 161 | ||||||||||||||||
2012 | 17,098 | 194 | 7,266 | 176 | 170 | |||||||||||||||||
Corporate and Unallocated | 2014 | - | - | 13,609 | - | - | ||||||||||||||||
2013 | - | - | 13,509 | - | - | |||||||||||||||||
2012 | - | - | 12,877 | - | - | |||||||||||||||||
Total Company | 2014 | $ | 26,243 | $ | 314 | $ | 28,352 | $ | 456 | $ | 862 | |||||||||||
2013 | 27,208 | 1,221 | 28,143 | 383 | 207 | |||||||||||||||||
2012 | 25,230 | 1,357 | 26,871 | 315 | 179 | |||||||||||||||||
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): | |||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Central and South America | $ | 4,789 | $ | 3,687 | $ | 2,278 | ||||||||||||||||
Asia | 2,727 | 3,525 | 3,380 | |||||||||||||||||||
Middle East | 2,115 | 1,424 | 4,336 | |||||||||||||||||||
Canada | 1.979 | 2.278 | 1.707 | |||||||||||||||||||
Europe and other | 1,220 | 1,468 | 2,723 | |||||||||||||||||||
$ | 12,830 | $ | 12,382 | $ | 14,424 |
20_SUMMARIZED_QUARTERLY_UNAUDI1
20. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information [Table Text Block] | 2014 | ||||||||||||||||
Restated Q1 | Restated Q2 | Restated Q3 | Restated Q4 | ||||||||||||||
Net sales | $ | 4,899,345 | $ | 7,615,540 | $ | 6,558,381 | $ | 7,170,132 | |||||||||
Gross profit | 1,636,041 | 3,002,384 | 2,729,069 | 2,961,176 | |||||||||||||
Operating income (loss) | (892,757 | ) | 362,004 | 229,232 | 615,231 | ||||||||||||
Net income (loss) | $ | (540,218 | ) | $ | 254,194 | $ | 150,333 | $ | 620,599 | ||||||||
Basic income (loss) per common share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | $ | 0.12 | ||||||||
Diluted income (loss) per common share | $ | (.11 | ) | $ | 0.05 | $ | 0.03 | $ | 0.12 | ||||||||
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 income (loss) per common share | $ | 0.01 | $ | 0.01 | $ | 0.1 | $ | 0.07 | |||||||||
Diluted income (loss) 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 | (131,493 | ) | 801,325 | 685,224 | 1,961 | ||||||||||||
Net income | $ | (76,109 | ) | $ | 551,670 | $ | 490,452 | $ | 176,787 | ||||||||
Basic income (loss) per common share | $ | (0.02 | ) | $ | 0.12 | $ | 0.1 | $ | 0.04 | ||||||||
Diluted income (loss) per common share | $ | (0.02 | ) | $ | 0.11 | $ | 0.1 | $ | 0.04 |
2_RESTATEMENT_OF_CONSOLIDATED_2
2. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Details) - Schedule of Restated Financial Statements (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Current Assets: | ||||||||||||||||
Cash and cash equivalents | $7,873,903 | $8,283,092 | $7,576,374 | $7,873,903 | $8,283,092 | $7,576,374 | $8,737,543 | |||||||||
Restricted cash and cash equivalents | 809,509 | 850,279 | 809,509 | 850,279 | ||||||||||||
Accounts receivable, net | 4,693,260 | 4,480,218 | 4,693,260 | 4,480,218 | ||||||||||||
Inventory, net | 4,747,676 | 4,876,641 | 4,747,676 | 4,876,641 | ||||||||||||
Prepaid items and other assets | 293,568 | 446,749 | 293,568 | 446,749 | ||||||||||||
Income taxes receivable | 173,537 | 106,897 | 173,537 | 106,897 | ||||||||||||
Deferred income taxes | 1,046,593 | 664,558 | 1,046,593 | 664,558 | ||||||||||||
Total Current Assets | 21,138,649 | 21,091,852 | 21,138,649 | 21,091,852 | ||||||||||||
Property and Equipment, Net | 1,935,760 | 1,532,144 | 1,935,760 | 1,532,144 | ||||||||||||
Other Assets | ||||||||||||||||
Goodwill | 4,452,152 | 4,452,152 | 3,768,435 | 4,452,152 | 4,452,152 | 3,768,435 | ||||||||||
Intangibles, net of amortization | 722,466 | 907,495 | 722,466 | 907,495 | ||||||||||||
Deferred tax assets | 0 | 77,357 | 0 | 77,357 | ||||||||||||
Total Assets | 28,351,541 | 28,142,885 | 26,871,000 | 28,351,541 | 28,142,885 | 26,871,000 | ||||||||||
Current Liabilities: | ||||||||||||||||
Accounts payable | 1,045,170 | 1,170,446 | 1,045,170 | 1,170,446 | ||||||||||||
Accrued payroll | 110,639 | 468,454 | 110,639 | 468,454 | ||||||||||||
Deferred rent | 149,011 | 139,146 | 149,011 | 139,146 | ||||||||||||
Deferred revenue | 1,286,121 | 686,029 | 1,286,121 | 686,029 | ||||||||||||
Other accrued expenses | 1,520,074 | 1,520,261 | 1,520,074 | 1,520,261 | ||||||||||||
Billings in excess of costs and estimated earnings | 125,242 | 388,687 | 125,242 | 388,687 | ||||||||||||
Total Current Liabilities | 4,236,257 | 4,373,023 | 4,236,257 | 4,373,023 | ||||||||||||
Long-Term Liabilities | ||||||||||||||||
Deferred rent | 608,568 | 751,245 | 608,568 | 751,245 | ||||||||||||
Deferred income taxes | 30,871 | 0 | 30,871 | 0 | ||||||||||||
Total Liabilities | 4,875,696 | 5,124,268 | 4,875,696 | 5,124,268 | ||||||||||||
Stockholdersb Equity | ||||||||||||||||
Common stock, 12,000,000 shares authorized; 5,066,009 issued and outstanding | 50,842 | 50,660 | 50,842 | 50,660 | ||||||||||||
Retained earnings | 18,354,164 | 17,869,256 | 18,354,164 | 17,869,256 | ||||||||||||
Accumulated other comprehensive loss | -394,884 | -241,576 | -394,884 | -241,576 | ||||||||||||
Total Stockholdersb Equity | 23,475,845 | 23,018,617 | 22,126,470 | 23,475,845 | 23,018,617 | 22,126,470 | 19,974,917 | |||||||||
Total Liabilities and Stockholdersb Equity | 28,351,541 | 28,142,885 | 28,351,541 | 28,142,885 | ||||||||||||
Net sales and revenues | 7,170,132 | 6,558,381 | 7,615,540 | 4,899,345 | 7,285,363 | 7,124,591 | 6,343,240 | 6,455,110 | 7,646,114 | 7,042,056 | 6,804,168 | 3,737,181 | 26,243,398 | 27,208,304 | 25,229,519 | |
Cost of sales and revenues | 15,914,728 | 16,424,127 | 15,212,433 | |||||||||||||
Gross profit | 2,961,176 | 2,729,069 | 3,002,384 | 1,636,041 | 2,904,860 | 2,877,004 | 2,356,172 | 2,646,141 | 2,852,056 | 2,961,935 | 2,776,502 | 1,426,592 | 10,328,670 | 10,784,177 | 10,017,086 | |
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 6,647,788 | 6,124,930 | 5,275,676 | |||||||||||||
Research and development expenses | 3,367,172 | 3,438,250 | 3,384,393 | |||||||||||||
Total operating expenses | 10,014,960 | 9,563,180 | 8,660,069 | |||||||||||||
Operating income | 615,231 | 229,232 | 362,004 | -892,757 | 603,830 | 662,384 | -87,216 | 41,999 | 1,961 | 685,224 | 801,325 | -131,493 | 313,710 | 1,220,997 | 1,357,017 | |
Financing income, net | 83,067 | 46,892 | 74,783 | |||||||||||||
Income before income taxes | 396,777 | 1,267,889 | 1,431,800 | |||||||||||||
Income tax expense (benefit) | -88,131 | 471,984 | 289,000 | |||||||||||||
Net income | 620,599 | 150,333 | 254,194 | -540,218 | 331,898 | 486,975 | -53,170 | 30,202 | 176,787 | 490,452 | 551,670 | -76,109 | 484,908 | 795,905 | 1,142,800 | |
Net income per share: | ||||||||||||||||
Basic income per share (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.07 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.12 | ($0.02) | $0.10 | $0.16 | $0.24 | |
Diluted income per share (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.06 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.11 | ($0.02) | $0.09 | $0.16 | $0.23 | |
Comprehensive income (loss): | ||||||||||||||||
Net income | 620,599 | 150,333 | 254,194 | -540,218 | 331,898 | 486,975 | -53,170 | 30,202 | 176,787 | 490,452 | 551,670 | -76,109 | 484,908 | 795,905 | 1,142,800 | |
Foreign currency translation adjustments | -153,308 | -58,973 | -6,094 | |||||||||||||
Comprehensive income | 331,600 | 736,932 | 1,136,706 | |||||||||||||
Scenario, Actual [Member] | ||||||||||||||||
Current Assets: | ||||||||||||||||
Cash and cash equivalents | 7,177,741 | 7,751,469 | 8,296,797 | |||||||||||||
Restricted cash and cash equivalents | 952,968 | 856,619 | 875,820 | |||||||||||||
Accounts receivable, net | 5,327,202 | 6,815,994 | 5,663,123 | |||||||||||||
Inventory, net | 5,278,898 | 5,532,102 | 5,276,830 | |||||||||||||
Prepaid items and other assets | 387,994 | 675,586 | 685,756 | |||||||||||||
Income taxes receivable | 295,019 | 59,078 | 77,866 | |||||||||||||
Deferred income taxes | 896,787 | 967,668 | 1,051,717 | |||||||||||||
Total Current Assets | 20,316,609 | 22,658,516 | 21,927,909 | |||||||||||||
Property and Equipment, Net | 1,770,713 | 1,728,419 | 1,466,119 | |||||||||||||
Other Assets | ||||||||||||||||
Goodwill | 4,452,152 | 4,452,152 | 4,452,152 | |||||||||||||
Intangibles, net of amortization | 768,724 | 814,981 | 861,238 | |||||||||||||
Deferred tax assets | 49,716 | 50,353 | 64,075 | |||||||||||||
Other Assets | 103,971 | 105,430 | 80,427 | |||||||||||||
Total Assets | 27,461,885 | 29,809,851 | 28,851,920 | |||||||||||||
Current Liabilities: | ||||||||||||||||
Accounts payable | 865,330 | 1,189,988 | 1,362,497 | |||||||||||||
Accrued payroll | 245,104 | 537,524 | 292,751 | |||||||||||||
Deferred rent | 146,438 | 143,910 | 0 | |||||||||||||
Deferred revenue | 825,681 | 1,075,592 | 789,573 | |||||||||||||
Other accrued expenses | 1,683,612 | 3,088,090 | 2,820,613 | |||||||||||||
Billings in excess of costs and estimated earnings | 125,200 | 329,445 | 253,770 | |||||||||||||
Total Current Liabilities | 3,891,365 | 6,364,549 | 5,519,204 | |||||||||||||
Long-Term Liabilities | ||||||||||||||||
Deferred rent | 645,612 | 682,657 | 859,351 | |||||||||||||
Deferred income taxes | 0 | 0 | 0 | |||||||||||||
Total Liabilities | 4,536,977 | 7,047,206 | 6,378,555 | |||||||||||||
Stockholdersb Equity | ||||||||||||||||
Common stock, 12,000,000 shares authorized; 5,066,009 issued and outstanding | 50,660 | 50,660 | 50,660 | |||||||||||||
Additional paid-in capital | 5,431,634 | 5,393,582 | 5,363,275 | |||||||||||||
Retained earnings | 17,733,565 | 17,583,231 | 17,329,038 | |||||||||||||
Accumulated other comprehensive loss | -290,951 | -264,828 | -269,608 | |||||||||||||
Total Stockholdersb Equity | 22,924,908 | 22,762,645 | 22,473,365 | |||||||||||||
Total Liabilities and Stockholdersb Equity | 27,461,885 | 29,809,851 | 28,851,920 | |||||||||||||
Net sales and revenues | 6,558,381 | 7,615,540 | 4,899,345 | |||||||||||||
Cost of sales and revenues | 3,829,312 | 4,613,156 | 3,263,304 | |||||||||||||
Gross profit | 2,729,069 | 3,002,384 | 1,636,041 | |||||||||||||
Operating expenses: | ||||||||||||||||
Selling, general and administrative expenses | 1,660,133 | 1,924,213 | 1,659,849 | |||||||||||||
Research and development expenses | 839,704 | 716,167 | 868,949 | |||||||||||||
Total operating expenses | 2,499,837 | 2,640,380 | 2,528,798 | |||||||||||||
Operating income | 229,232 | 362,004 | -892,757 | |||||||||||||
Financing income, net | 17,072 | 17,660 | 2,873 | |||||||||||||
Income before income taxes | 246,304 | 379,664 | -889,884 | |||||||||||||
Income tax expense (benefit) | 95,971 | 125,470 | -349,666 | |||||||||||||
Net income | 150,333 | 254,194 | -540,218 | |||||||||||||
Net income per share: | ||||||||||||||||
Basic income per share (in Dollars per share) | $0.03 | $0.05 | ($0.11) | |||||||||||||
Diluted income per share (in Dollars per share) | $0.03 | $0.05 | ($0.11) | |||||||||||||
Comprehensive income (loss): | ||||||||||||||||
Net income | 150,333 | 254,194 | -540,218 | |||||||||||||
Foreign currency translation adjustments | -26,123 | 4,780 | -28,032 | |||||||||||||
Comprehensive income | $124,210 | $258,974 | ($568,250) |
2_RESTATEMENT_OF_CONSOLIDATED_3
2. RESTATEMENT OF CONSOLIDATED FINANCIAL STATEMENTS (Details) - Schedule of Restated Financial Statements (Parentheticals) | Dec. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 |
Common stock, shares authorized | 12,000,000 | 12,000,000 | |||
Common stock, shares issued | 5,084,134 | 5,066,009 | |||
Common stock, shares outstanding | 5,084,134 | 5,066,009 | |||
Scenario, Actual [Member] | |||||
Common stock, shares authorized | 12,000,000 | 12,000,000 | 12,000,000 | ||
Common stock, shares issued | 5,066,009 | 5,066,009 | 5,066,009 | ||
Common stock, shares outstanding | 5,066,009 | 5,066,009 | 5,066,009 |
3_SUMMARY_OF_SIGNIFICANT_ACCOU1
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Interest Paid | $3,700 | $500 | $900 |
Restricted Cash and Cash Equivalents, Current | 809,509 | 850,279 | |
Premiums Receivable, Allowance for Doubtful Accounts, Recoveries | 28,700 | -13,509 | |
Allowance for Doubtful Accounts Receivable, Write-offs | 230,485 | ||
Property, Plant and Equipment, Depreciation Methods | straight-line method | ||
Asset Impairment Charges | 0 | 0 | 0 |
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, Outstanding (in Shares) | 5,084,134 | 5,066,009 | |
Common Stock, Shares, Issued (in Shares) | 5,084,134 | 5,066,009 | |
Standard Product Warranty Description | up to two years | ||
Domestic Tax Authority [Member] | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Income Taxes Paid | 244,000 | 6,000 | 366,000 |
Foreign Tax Authority [Member] | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Income Taxes Paid | $19,000 | $36,000 | $328,000 |
Customer Lists [Member] | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Computer Software, Intangible Asset [Member] | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Technology-Based Intangible Assets [Member] | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 5 years | ||
Minimum [Member] | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Maximum [Member] | |||
3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years |
4_ACCOUNTS_RECEIVABLE_Details_
4. ACCOUNTS RECEIVABLE (Details) - Schedule of Accounts, Notes, Loans and Financing Receivable (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Accounts, Notes, Loans and Financing Receivable [Abstract] | ||
Trade receivables | $4,504,720 | $4,335,205 |
Contract retainage | 263,540 | 249,013 |
Allowance for doubtful accounts | -75,000 | -104,000 |
Totals | $4,693,260 | $4,480,218 |
5_INVENTORY_Details_Schedule_o
5. INVENTORY (Details) - Schedule of Inventory (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Inventory [Abstract] | ||
Electronic components | $2,314,073 | $2,556,827 |
Work in process | 1,844,330 | 1,936,202 |
Finished goods | 1,237,547 | 1,109,491 |
Allowance for obsolete inventory | -648,274 | -725,879 |
Totals | $4,747,676 | $4,876,641 |
6_PROPERTY_AND_EQUIPMENT_Detai
6. PROPERTY AND EQUIPMENT (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
6. PROPERTY AND EQUIPMENT (Details) [Line Items] | |||
Depreciation | $455,566 | $382,996 | $315,338 |
Property, Plant and Equipment, Other Types [Member] | |||
6. PROPERTY AND EQUIPMENT (Details) [Line Items] | |||
Depreciation | $455,566 | $382,996 | $315,338 |
6_PROPERTY_AND_EQUIPMENT_Detai1
6. PROPERTY AND EQUIPMENT (Details) - Schedule of Property, Plant and Equipment (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $5,285,649 | $4,426,467 |
Accumulated depreciation | 3,349,889 | 2,894,323 |
Property and Equipment, Net | 1,935,760 | 1,532,144 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 3,435,734 | 2,581,754 |
Accumulated depreciation | 2,217,288 | 1,929,301 |
Vehicles [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 253,176 | 253,176 |
Accumulated depreciation | 246,974 | 242,726 |
Leasehold Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | 1,596,739 | 1,591,537 |
Accumulated depreciation | $885,627 | $722,296 |
7_GOODWILL_AND_INTANGIBLES_Det
7. GOODWILL AND INTANGIBLES (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Text Block [Abstract] | |||
Amortization of Intangible Assets | $185,029 | $176,138 | $78,367 |
7_GOODWILL_AND_INTANGIBLES_Det1
7. GOODWILL AND INTANGIBLES (Details) - Schedule of Goodwill (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Goodwill [Abstract] | ||
Balance | $4,452,152 | $3,768,435 |
Acquisitions and other | 0 | 683,717 |
Balance | $4,452,152 | $4,452,152 |
7_GOODWILL_AND_INTANGIBLES_Det2
7. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets and Accumulated Amortization (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | $1,162,000 | $1,162,000 |
Amortizable Intangible Assets, Accumulated Amortization | -439,534 | -254,505 |
Amortizable Intangible Assets, Net Carrying Amount | 722,466 | 907,495 |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 829,000 | 829,000 |
Amortizable Intangible Assets, Accumulated Amortization | -287,513 | -169,084 |
Amortizable Intangible Assets, Net Carrying Amount | 541,487 | 659,916 |
Technology-Based Intangible Assets [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Amortizable Intangible Assets, Gross Carrying Amount | 333,000 | 333,000 |
Amortizable Intangible Assets, Accumulated Amortization | -152,021 | -85,421 |
Amortizable Intangible Assets, Net Carrying Amount | $180,979 | $247,579 |
7_GOODWILL_AND_INTANGIBLES_Det3
7. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Remaining Amortization Period | 12 Months Ended |
Dec. 31, 2014 | |
Technology-Based Intangible Assets [Member] | |
7. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Remaining Amortization Period [Line Items] | |
Remaining Amortization Period | 2 years 292 days |
Customer Relationships [Member] | |
7. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Remaining Amortization Period [Line Items] | |
Remaining Amortization Period | 4 years 219 days |
7_GOODWILL_AND_INTANGIBLES_Det4
7. GOODWILL AND INTANGIBLES (Details) - Schedule of Intangible Assets, Future Amortization Expense (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Intangible Assets, Future Amortization Expense [Abstract] | ||
2015 | $185,029 | |
2016 | 185,029 | |
2017 | 161,579 | |
2018 | 123,269 | |
2019 | 63,515 | |
Thereafter | 4,045 | |
$722,466 | $907,495 |
8_CONTRACTS_IN_PROGRESS_Detail
8. CONTRACTS IN PROGRESS (Details) - Schedule of Contracts in Progress (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Schedule of Contracts in Progress [Abstract] | ||
Costs incurred to date | $6,155,641 | $6,471,964 |
Estimated earnings | 2,975,509 | 3,052,272 |
Revenue recognized to date | 9,131,150 | 9,524,236 |
Billings to date | -7,755,789 | -8,529,505 |
Contracts receivable | 1,375,361 | 994,731 |
Included in the accompanying balance sheets: | ||
Costs in excess of billings on uncompleted contracts | 1,500,603 | 1,383,418 |
Billings in excess of costs on uncompleted contracts | ($125,242) | ($388,687) |
9_LINE_OF_CREDIT_Details
9. LINE OF CREDIT (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
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 | $1,128,432 | $1,663,000 |
10_OTHER_ACCRUED_EXPENSES_Deta
10. OTHER ACCRUED EXPENSES (Details) - Schedule of Accrued Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Accrued Liabilities [Abstract] | ||
Accrued vacation pay | $582,872 | $488,446 |
Accrued warranty costs | 207,000 | 217,000 |
Customer advance payments | 503,655 | 696,970 |
Other accruals | 226,547 | 117,845 |
Totals | $1,520,074 | $1,520,261 |
11_ACCRUED_WARRANTY_COSTS_Deta
11. ACCRUED WARRANTY COSTS (Details) - Schedule of Product Warranty Liability (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Product Warranty Liability [Abstract] | |||
Balance | $217,000 | $299,000 | $270,000 |
Reserve adjustment | -10,000 | -82,000 | 29,000 |
Balance | $207,000 | $217,000 | $299,000 |
12_LEASE_OBLIGATIONS_Details
12. LEASE OBLIGATIONS (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Disclosure Text Block Supplement [Abstract] | |||
Operating Leases, Rent Expense | $641,584 | $677,917 | $522,965 |
12_LEASE_OBLIGATIONS_Details_S
12. LEASE OBLIGATIONS (Details) - Schedule of Future Minimum Rental Payments for Operating Leases (USD $) | Dec. 31, 2014 |
Schedule of Future Minimum Rental Payments for Operating Leases [Abstract] | |
2015 | $681,180 |
2016 | 620,389 |
2017 | 595,159 |
2018 | 609,906 |
2019 | 329,624 |
Thereafter | 73,734 |
Total | $2,909,992 |
13_INCOME_TAXES_Details_Schedu
13. INCOME TAXES (Details) - Schedule of Components of Income Tax Expense (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Components of Income Tax Expense [Abstract] | |||
Domestic income tax expense | $166,354 | $550,608 | $111,000 |
Foreign income tax expense | 19,322 | 35,827 | 328,000 |
Deferred tax benefit | -273,807 | -114,451 | -150,000 |
Total income tax expense (benefit) | ($88,131) | $471,984 | $289,000 |
13_INCOME_TAXES_Details_Schedu1
13. INCOME TAXES (Details) - Schedule of Deferred Tax Assets and Liabilities (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Schedule of Deferred Tax Assets and Liabilities [Abstract] | ||
Accrued vacation, warranty and compensation | $327,175 | $228,613 |
Stock compensation additional paid in capital | 228,864 | 203,205 |
Accounts receivable and inventory allowances | 103,621 | 115,603 |
Depreciation | 0 | 17,413 |
R&D Tax Credits | 592,336 | 320,342 |
Foreign Tax Credits | 23,461 | 0 |
Deferred tax assets | 1,275,457 | 885,176 |
Intangibles amortization | -210,663 | -143,261 |
Depreciation | -49,072 | 0 |
Deferred tax liabilities | -259,735 | -143,261 |
Net deferred tax assets | 1,015,722 | 741,915 |
Current tax assets | 1,046,593 | 664,558 |
Non-current tax assets | 228,865 | 77,357 |
Non-current tax liabilities | -259,736 | 0 |
Net deferred tax liabilities | -30,871 | 77,357 |
Net deferred tax assets | $1,015,722 | $741,915 |
13_INCOME_TAXES_Details_Schedu2
13. INCOME TAXES (Details) - Schedule of Effective Income Tax Rate Reconciliation (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Effective Income Tax Rate Reconciliation [Abstract] | |||
Income before income taxes | $396,777 | $1,267,889 | $1,431,800 |
Applicable statutory tax rate | 34.00% | 34.00% | 34.00% |
Computed bexpectedb Federal income tax expense | 134,904 | 431,082 | 487,000 |
State income tax expense | 6,802 | 23,104 | 24,000 |
Tax credits (benefit) and other | -229,837 | 17,798 | -222,000 |
Income tax expense | ($88,131) | $471,984 | $289,000 |
14_MAJOR_CUSTOMERS_Details_Sch
14. MAJOR CUSTOMERS (Details) - Schedule of Revenue by Major Customers (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Revenue, Major Customer [Line Items] | |||||||||||||||
Net Sales from Major Customers | $7,170,132 | $6,558,381 | $7,615,540 | $4,899,345 | $7,285,363 | $7,124,591 | $6,343,240 | $6,455,110 | $7,646,114 | $7,042,056 | $6,804,168 | $3,737,181 | $26,243,398 | $27,208,304 | $25,229,519 |
Accounts Recievable from Major Customers | 4,693,260 | 4,480,218 | 4,693,260 | 4,480,218 | |||||||||||
U.S. Government Agencies [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Net Sales from Major Customers | 5,773,530 | 5,373,652 | 5,305,622 | ||||||||||||
Major Customers Concentration Risk, Percentage | 22.00% | 20.00% | 21.00% | ||||||||||||
Major Customers Concentration Risk, Percentage | 22.00% | 20.00% | 21.00% | ||||||||||||
U.S. Government Agencies [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Major Customers Concentration Risk, Percentage | 13.00% | 8.00% | 4.00% | ||||||||||||
Accounts Recievable from Major Customers | 781,330 | 478,826 | 211,639 | 781,330 | 478,826 | 211,639 | |||||||||
Major Customers Concentration Risk, Percentage | 13.00% | 8.00% | 4.00% | ||||||||||||
Ministry of Energy and Water, Afghanistan [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Net Sales from Major Customers | 944,563 | 448,988 | 2,750,143 | ||||||||||||
Major Customers Concentration Risk, Percentage | 3.00% | 2.00% | 11.00% | ||||||||||||
Major Customers Concentration Risk, Percentage | 3.00% | 2.00% | 11.00% | ||||||||||||
Ministry of Energy and Water, Afghanistan [Member] | Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Major Customers Concentration Risk, Percentage | 18.00% | 8.00% | 23.00% | ||||||||||||
Accounts Recievable from Major Customers | 1,115,366 | 440,935 | 1,325,693 | 1,115,366 | 440,935 | 1,325,693 | |||||||||
Major Customers Concentration Risk, Percentage | 18.00% | 8.00% | 23.00% | ||||||||||||
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Net Sales from Major Customers | 6,718,093 | 5,822,640 | 8,055,765 | ||||||||||||
Major Customers Concentration Risk, Percentage | 25.00% | 22.00% | 32.00% | ||||||||||||
Major Customers Concentration Risk, Percentage | 25.00% | 22.00% | 32.00% | ||||||||||||
Accounts Receivable [Member] | Credit Concentration Risk [Member] | |||||||||||||||
Revenue, Major Customer [Line Items] | |||||||||||||||
Major Customers Concentration Risk, Percentage | 31.00% | 16.00% | 27.00% | ||||||||||||
Accounts Recievable from Major Customers | $1,896,696 | $919,761 | $1,537,332 | $1,896,696 | $919,761 | $1,537,332 | |||||||||
Major Customers Concentration Risk, Percentage | 31.00% | 16.00% | 27.00% |
15_STOCK_BASED_COMPENSATION_De
15. STOCK BASED COMPENSATION (Details) (USD $) | 12 Months Ended | 60 Months Ended | 156 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2014 | Dec. 31, 2014 | |
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 | 0 | 0 | ||
Share-based Compensation (in Dollars) | $125,446 | $119,685 | $137,554 | ||
Deferred Tax Expense from Stock Options Exercised (in Dollars) | 0 | -30,408 | -603,993 | ||
Restricted Stock Units (RSUs) [Member] | 2010 Equity Incentive Plan [Member] | |||||
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 73,250 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 9,000 | 9,000 | 79,500 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Forfeitures | 1,000 | 13,125 | 10,125 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 354 days | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options (in Dollars) | 60,000 | 60,000 | 60,000 | ||
Employee Stock Option [Member] | |||||
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
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 | All outstanding options have a ten-year term from the date of grant. | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options (in Dollars) | $290,000 | 290,000 | 290,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 4 years 105 days | ||||
1996 Stock Option Plan [Member] | |||||
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 260,000 | 260,000 | 260,000 | ||
1997 Stock Option Plan [Member] | |||||
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 60,000 | 60,000 | 60,000 | ||
2002 Stock Option Plan [Member] | |||||
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 650,000 | 650,000 | 650,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 552,059 | ||||
2010 Equity Incentive Plan [Member] | |||||
15. STOCK BASED COMPENSATION (Details) [Line Items] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 500,000 | 500,000 | 500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Gross | 200,000 |
15_STOCK_BASED_COMPENSATION_De1
15. STOCK BASED COMPENSATION (Details) - Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | 12 Months Ended |
Dec. 31, 2014 | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Abstract] | |
Risk free rate | 2.54% |
Expected volatility | 21.00% |
Dividend yield | 0.00% |
Expected term in years | 10 years |
15_STOCK_BASED_COMPENSATION_De2
15. STOCK BASED COMPENSATION (Details) - Schedule of Option Activity (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Schedule of Option Activity [Abstract] | ||||
Number of Shares, Options Outstanding | 303,726 | 113,726 | 155,978 | 492,978 |
Weighted Average Exercise Price, Options Outstanding | $5.26 | $6.66 | $6.45 | $2.61 |
Weighted Average Remaining Contractual Term, Options Outstanding | 7 years 266 days | 4 years 343 days | 5 years 200 days | 2 years 339 days |
Aggregate Intrinsic, Options Outstanding | $96,920 | $1,600 | $33,991 | $1,925,176 |
Number of Shares, Options Exercisable | 98,726 | 99,726 | 134,978 | |
Weighted Average Exercise Price, Options Exercisable | $6.36 | $6.68 | $6.45 | |
Weighted Average Remaining Contractual Term, Options Exercisable | 3 years 339 days | 473 years | 5 years 98 days | |
Aggregate Intrinsic, Options Exercisable | 900 | 1,600 | 33,991 | |
Number of Shares, Options Nonvested | 205,000 | 14,000 | 21,000 | |
Weighted Average Exercise Price, Options Nonvested | $4.73 | $6.47 | $6.47 | |
Weighted Average Remaining Contractual Term, Options Nonvested | 9 years 208 days | 6 years 138 days | 7 years 138 days | |
Aggregate Intrinsic, Options Nonvested | 96,020 | |||
Number of Shares, Options Granted | 200,000 | 0 | 0 | |
Weighted Average Exercise Price, Options Granted | $4.52 | $0 | $0 | |
Number of Shares, Options Exercised | 0 | -7,252 | -335,000 | |
Weighted Average Exercise Price, Options Exercised | $0 | $0.68 | $0.82 | |
Aggregate Intrinsic, Options Exercised | $32,489 | $1,493,031 | ||
Number of Shares, Options Forfeited or Expired | -10,000 | -35,000 | -2,000 | |
Weighted Average Exercise Price, Options Forfeited or Expired | $6.47 | $6.97 | $4.45 |
15_STOCK_BASED_COMPENSATION_De3
15. STOCK BASED COMPENSATION (Details) - Schedule of Restricted Stock Activity (Restricted Stock Units (RSUs) [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock Units (RSUs) [Member] | ||||
15. STOCK BASED COMPENSATION (Details) - Schedule of Restricted Stock Activity [Line Items] | ||||
Number of Shares, RSU Outstanding | 36,000 | 46,125 | 69,375 | 0 |
Weighted Average Grant Date Fair Value, RSU Outstanding | $5.49 | $4.36 | $4.21 | $0 |
Remaining Contractual Term, RSU Outstanding | 1 year 259 days | 1 year 87 days | 2 years 204 days | 0 years |
Aggregate Intrinsic Value, RSU Outstanding | $180,004 | $237,083 | $350,344 | $0 |
Number of Shares, RSU Expected to Vest | 25,830 | 34,955 | 55,275 | |
Weighted Average Grant Date Fair Value, RSU Expected to Vest | $5.43 | $4.41 | $4.21 | |
Remaining Contractual Term, RSU, Expected to Vest | 1 year 204 days | 1 year 18 days | 2 years 204 days | |
Aggregate Intrinsic Value, RSU Expected to Vest | 129,153 | 179,669 | 279,139 | |
Number of Shares, RSU Granted | 9,000 | 9,000 | 79,500 | |
Weighted Average Grant Date Fair Value, RSU Granted | $5 | $5.61 | $4.21 | |
Granted | 50,490 | 334,865 | ||
Number of Shares, RSU Forfeited | -1,000 | -13,125 | -10,125 | |
Weighted Average Grant Date Fair Value, RSU Forfeited | $5.14 | $4.21 | $4.21 | |
Aggregate Intrinsic Value, RSU Forfeited | -74,156 | 51,131 | ||
Number of Shares, RSU Vested | -18,125 | -19,125 | 0 | |
Weighted Average Grant Date Fair Value, RSU Vested | $5.66 | $4.21 | $0 | |
Aggregate Intrinsic Value, RSU Vested | ($96,581) | $0 |
16_EARNINGS_PER_SHARE_Details
16. EARNINGS PER SHARE (Details) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Earnings Per Share [Abstract] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 98,726 | 103,726 | 139,000 |
16_EARNINGS_PER_SHARE_Details_
16. EARNINGS PER SHARE (Details) - Schedule of Earnings Per Share, Basic and Diluted (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||||
Net income (in Dollars) | $620,599 | $150,333 | $254,194 | ($540,218) | $331,898 | $486,975 | ($53,170) | $30,202 | $176,787 | $490,452 | $551,670 | ($76,109) | $484,908 | $795,905 | $1,142,800 |
Shares used in calculation of income per share: | |||||||||||||||
Basic | 5,069,783 | 5,052,516 | 4,802,569 | ||||||||||||
Effect of dilutive options | 19,384 | 10,602 | 17,483 | ||||||||||||
Effect of dilutive restricted shares | 36,000 | 46,125 | 69,375 | ||||||||||||
Diluted | 5,125,167 | 5,109,243 | 4,889,427 | ||||||||||||
Net income per share: | |||||||||||||||
Basic (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.07 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.12 | ($0.02) | $0.10 | $0.16 | $0.24 |
Diluted (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.06 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.11 | ($0.02) | $0.09 | $0.16 | $0.23 |
17_ACQUISITIONS_Details
17. ACQUISITIONS (Details) (USD $) | 12 Months Ended | 0 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 05, 2013 | 24-May-12 | |
17. ACQUISITIONS (Details) [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | $0 | $1,214,330 | $4,241,914 | ||
Sabio Instruments [Member] | |||||
17. ACQUISITIONS (Details) [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 1,214,330 | ||||
Business Combination, Acquisition Related Costs | 125,000 | ||||
IPS MeteoStar [Member] | |||||
17. ACQUISITIONS (Details) [Line Items] | |||||
Payments to Acquire Businesses, Net of Cash Acquired | 4,241,914 | ||||
Business Combination, Acquisition Related Costs | $958,000 |
17_ACQUISITIONS_Details_Schedu
17. ACQUISITIONS (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 05, 2013 |
17. ACQUISITIONS (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Goodwill | $4,452,152 | $4,452,152 | $3,768,435 | |
Sabio Instruments [Member] | ||||
17. ACQUISITIONS (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 |
17_ACQUISITIONS_Details_Schedu1
17. ACQUISITIONS (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | 24-May-12 |
17. ACQUISITIONS (Details) - Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Line Items] | ||||
Goodwill | $4,452,152 | $4,452,152 | $3,768,435 | |
IPS MeteoStar [Member] | ||||
17. ACQUISITIONS (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 |
18_PROFIT_SHARING_PLAN_Details
18. PROFIT SHARING PLAN (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compensation and Retirement Disclosure [Abstract] | |||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 5.00% | ||
Defined Benefit Plan, Contributions by Employer | $416,000 | $397,000 | $314,000 |
19_SEGMENT_INFORMATION_Details
19. SEGMENT INFORMATION (Details) | 12 Months Ended |
Dec. 31, 2014 | |
Segment Reporting [Abstract] | |
Number of Operating Segments | 2 |
19_SEGMENT_INFORMATION_Details1
19. SEGMENT INFORMATION (Details) - Schedule of Segment Reporting Information, by Segment (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting Information [Line Items] | |||||||||||||||
Net Sales | $7,170,132 | $6,558,381 | $7,615,540 | $4,899,345 | $7,285,363 | $7,124,591 | $6,343,240 | $6,455,110 | $7,646,114 | $7,042,056 | $6,804,168 | $3,737,181 | $26,243,398 | $27,208,304 | $25,229,519 |
Operating Income (Loss) | 615,231 | 229,232 | 362,004 | -892,757 | 603,830 | 662,384 | -87,216 | 41,999 | 1,961 | 685,224 | 801,325 | -131,493 | 313,710 | 1,220,997 | 1,357,017 |
Total Assets | 28,351,541 | 28,142,885 | 26,871,000 | 28,351,541 | 28,142,885 | 26,871,000 | |||||||||
Depreciation | 455,566 | 382,996 | 315,338 | ||||||||||||
Capital Expenditures | 862,000 | 207,000 | 179,000 | ||||||||||||
Standard Products [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net Sales | 10,748,000 | 10,588,000 | 8,132,000 | ||||||||||||
Operating Income (Loss) | 1,163,000 | 1,556,000 | 1,163,000 | ||||||||||||
Total Assets | 7,088,000 | 7,036,000 | 6,728,000 | 7,088,000 | 7,036,000 | 6,728,000 | |||||||||
Depreciation | 92,000 | 131,000 | 139,000 | ||||||||||||
Capital Expenditures | 639,000 | 46,000 | 9,000 | ||||||||||||
Systems / Services [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net Sales | 15,495,000 | 16,620,000 | 17,098,000 | ||||||||||||
Operating Income (Loss) | -849,000 | -335,000 | 194,000 | ||||||||||||
Total Assets | 7,655,000 | 7,598,000 | 7,266,000 | 7,655,000 | 7,598,000 | 7,266,000 | |||||||||
Depreciation | 364,000 | 252,000 | 176,000 | ||||||||||||
Capital Expenditures | 223,000 | 161,000 | 170,000 | ||||||||||||
Corporate and Other [Member] | |||||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||||
Net Sales | 0 | 0 | 0 | ||||||||||||
Operating Income (Loss) | 0 | 0 | 0 | ||||||||||||
Total Assets | 13,609,000 | 13,509,000 | 12,877,000 | 13,609,000 | 13,509,000 | 12,877,000 | |||||||||
Depreciation | 0 | 0 | 0 | ||||||||||||
Capital Expenditures | $0 | $0 | $0 |
19_SEGMENT_INFORMATION_Details2
19. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
19. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | |||
Sales | $12,830,000 | $12,382,000 | $14,424,000 |
Central and South America [Member] | |||
19. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | |||
Sales | 4,789,000 | 3,687,000 | 2,278,000 |
Asia [Member] | |||
19. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | |||
Sales | 2,727,000 | 3,525,000 | 3,380,000 |
Middle East [Member] | |||
19. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | |||
Sales | 2,115,000 | 1,424,000 | 4,336,000 |
CANADA | |||
19. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | |||
Sales | 1,979 | 2,278 | 1,707 |
Europe [Member] | |||
19. SEGMENT INFORMATION (Details) - Schedule of Revenue from External Customers Attributed to Foreign Countries by Geographic Area [Line Items] | |||
Sales | $1,220,000 | $1,468,000 | $2,723,000 |
20_SUMMARIZED_QUARTERLY_UNAUDI2
20. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
20. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) [Line Items] | |||||||||||||||
Net income | $620,599 | $150,333 | $254,194 | ($540,218) | $331,898 | $486,975 | ($53,170) | $30,202 | $176,787 | $490,452 | $551,670 | ($76,109) | $484,908 | $795,905 | $1,142,800 |
Cost of Revenue | 15,914,728 | 16,424,127 | 15,212,433 | ||||||||||||
Restatement Adjustment [Member] | |||||||||||||||
20. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) [Line Items] | |||||||||||||||
Revenues | -236,943 | ||||||||||||||
Net income | -134,943 | ||||||||||||||
Cost of Revenue | ($32,559) | ($48,429) | ($47,258) |
20_SUMMARIZED_QUARTERLY_UNAUDI3
20. SUMMARIZED QUARTERLY UNAUDITED FINANCIAL DATA (Details) - Schedule of Quarterly Financial Information (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | 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, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Quarterly Financial Information [Abstract] | |||||||||||||||
Net sales | $7,170,132 | $6,558,381 | $7,615,540 | $4,899,345 | $7,285,363 | $7,124,591 | $6,343,240 | $6,455,110 | $7,646,114 | $7,042,056 | $6,804,168 | $3,737,181 | $26,243,398 | $27,208,304 | $25,229,519 |
Gross profit | 2,961,176 | 2,729,069 | 3,002,384 | 1,636,041 | 2,904,860 | 2,877,004 | 2,356,172 | 2,646,141 | 2,852,056 | 2,961,935 | 2,776,502 | 1,426,592 | 10,328,670 | 10,784,177 | 10,017,086 |
Operating income (loss) | 615,231 | 229,232 | 362,004 | -892,757 | 603,830 | 662,384 | -87,216 | 41,999 | 1,961 | 685,224 | 801,325 | -131,493 | 313,710 | 1,220,997 | 1,357,017 |
Net income (loss) | $620,599 | $150,333 | $254,194 | ($540,218) | $331,898 | $486,975 | ($53,170) | $30,202 | $176,787 | $490,452 | $551,670 | ($76,109) | $484,908 | $795,905 | $1,142,800 |
Basic income (loss) per common share (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.07 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.12 | ($0.02) | $0.10 | $0.16 | $0.24 |
Diluted income (loss) per common share (in Dollars per share) | $0.12 | $0.03 | $0.05 | ($0.11) | $0.06 | $0.10 | $0.01 | $0.01 | $0.04 | $0.10 | $0.11 | ($0.02) | $0.09 | $0.16 | $0.23 |