Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Jun. 30, 2013 | |
Document and Entity Information | ' | ' |
Entity Registrant Name | 'Electronic Systems Technology Inc | ' |
Document Type | '10-K | ' |
Document Period End Date | 31-Dec-13 | ' |
Amendment Flag | 'false | ' |
Entity Central Index Key | '0000752294 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Common Stock, Shares Outstanding | 5,158,667 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Current Reporting Status | 'Yes | ' |
Entity Voluntary Filers | 'No | ' |
Entity Well-known Seasoned Issuer | 'No | ' |
Document Fiscal Year Focus | '2013 | ' |
Document Fiscal Period Focus | 'FY | ' |
Entity Public Float | ' | $1,607,875 |
ELECTRONIC_SYSTEMS_TECHNOLOGY_
ELECTRONIC SYSTEMS TECHNOLOGY, INC. DBA ESTEEM WIRELESS MODEMS BALANCE SHEETS DECEMBER 31, 2013 AND 2012 (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
CURRENT ASSETS | ' | ' | ||
Cash | $133,129 | $117,429 | ||
Money market investment | 763,451 | 701,068 | ||
Certificates of deposit | 1,414,000 | 1,367,000 | ||
Accounts receivable | 72,783 | 195,482 | ||
Inventories | 625,692 | 501,956 | ||
Prepaid insurance | 11,389 | 10,932 | ||
Other prepaid expenses | 24,298 | 28,207 | ||
Accrued interest receivable | 2,947 | 1,703 | ||
Total Current Assets | 3,047,689 | 2,923,777 | ||
PROPERTY AND EQUIPMENT - NET | 31,372 | 42,272 | ||
DEPOSITS | 13,083 | 1,675 | ||
DEFERRED INCOME TAX ASSET | 36,600 | 26,000 | ||
TOTAL ASSETS | 3,128,744 | 2,993,724 | ||
CURRENT LIABILITIES | ' | ' | ||
Accounts payable | 8,669 | 7,517 | ||
Refundable deposits | 4,910 | 2,229 | ||
Accrued wages and bonus | 15,149 | 3,754 | ||
Accrued vacation pay | 24,249 | 24,045 | ||
Other accrued liabilities | 7,234 | 8,156 | ||
Federal income tax payable | 3,700 | ' | ||
Total Current Liabilities | 63,911 | 45,701 | ||
DEFERRED INCOME TAX LIABILITY | 5,100 | 6,200 | ||
TOTAL LIABILITIES | 69,011 | 51,901 | ||
COMMITMENTS AND CONTINGENCIES | 0 | [1] | 0 | [1] |
STOCKHOLDERS' EQUITY | ' | ' | ||
Common stock - $.001 par value 50,000,000 shares authorized, 5,158,667 shares issued and outstanding at December 31, 2013 and 2012, respectively | 5,159 | 5,159 | ||
Additional paid-in capital | 1,005,616 | 1,003,903 | ||
Retained earnings | 2,048,958 | 1,932,761 | ||
Total Stockholders' Equity | 3,059,733 | 2,941,823 | ||
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $3,128,744 | $2,993,724 | ||
[1] | Note 8 and 10 |
Statement_of_Financial_Positio
Statement of Financial Position - Parenthetical (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of financial position | ' | ' |
Common Stock, Par Value | $0.00 | $0.00 |
Common Stock, Shares Authorized | 50,000,000 | 50,000,000 |
Common Stock, Shares Issued | 5,158,667 | 5,158,667 |
Common Stock, Shares Outstanding | 5,158,667 | 5,158,667 |
ELECTRONIC_SYSTEMS_TECHNOLOGY_1
ELECTRONIC SYSTEMS TECHNOLOGY, INC. DBA ESTEEM WIRELESS MODEMS STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Income statement | ' | ' |
SALES - NET | $2,190,258 | $2,113,816 |
COST OF SALES | 971,798 | 921,488 |
GROSS PROFIT | 1,218,460 | 1,192,328 |
OPERATING EXPENSES | 1,118,421 | 1,149,226 |
OPERATING INCOME | 100,038 | 43,102 |
OTHER INCOME | ' | ' |
Interest income | 8,158 | 7,420 |
Total Other Income | 8,158 | 7,420 |
INCOME BEFORE INCOME TAXES | 108,197 | 50,522 |
PROVISION (BENEFIT) FOR FEDERAL INCOME TAXES | -8,000 | 26,400 |
NET INCOME | $116,197 | $24,122 |
BASIC EARNINGS PER SHARE | $0.02 | $0 |
DILUTED EARNINGS PER SHARE | $0.02 | $0 |
OUTSTANDING BASIC WEIGHTED AVERAGE SHARES | 5,158,667 | 5,158,667 |
OUTSTANDING DILUTED WEIGHTED AVERAGE SHARES | 5,180,227 | 5,158,667 |
ELECTRONIC_SYSTEMS_TECHNOLOGY_2
ELECTRONIC SYSTEMS TECHNOLOGY, INC. DBA ESTEEM WIRELESS MODEMS STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $116,197 | $24,122 |
Depreciation | 13,540 | 15,484 |
Allowance for doubtful accounts | ' | -787 |
Deferred income taxes | -11,700 | 26,400 |
Share-based compensation | 1,713 | 2,255 |
Decrease (increase) in current assets: | ' | ' |
Accounts receivable | 122,699 | -90,529 |
Inventories | -123,736 | -30,642 |
Prepaids | 3,454 | -11,028 |
Accrued interest receivable | -1,246 | -119 |
Federal income tax refund receivable | ' | 47,663 |
Increase (decrease) in current liabilities: | ' | ' |
Accounts payable | 2,393 | -8,587 |
Accrued wages, bonus and vacation | 9,435 | 1,247 |
Refundable deposits | 2,681 | -47,074 |
Federal income tax payable | 3,700 | ' |
Net Cash From Operating Activities | 139,130 | -71,595 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Deposits | -11,408 | ' |
Purchase of certificates of deposit | -1,522,000 | -2,107,000 |
Proceeds from maturities of certificates of deposit | 1,475,000 | 1,773,000 |
Additions to property and equipment | -2,639 | -3,398 |
Net Cash From Investing Activities | -61,047 | -337,398 |
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 78,083 | -408,993 |
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR | 818,497 | 1,227,490 |
CASH AND CASH EQUIVALENTS AT END OF YEAR | 896,580 | 818,497 |
Cash paid during the year for: | ' | ' |
Income taxes | 0 | 0 |
Cash and cash equivalents: | ' | ' |
Cash | 133,129 | 117,429 |
Money market investments | 763,451 | 701,068 |
Total cash and cash equivalents | $896,580 | $818,497 |
ELECTRONIC_SYSTEMS_TECHNOLOGY_3
ELECTRONIC SYSTEMS TECHNOLOGY, INC. DBA ESTEEM WIRELESS MODEMS STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY FOR THE YEARS ENDED DECEMBER 31, 2013 AND 2012 (USD $) | Common Stock Shares | Common Stock Amount | Paid-In Capital | Retained Earnings | Total |
USD ($) | USD ($) | USD ($) | USD ($) | ||
Stockholders' equity at Dec. 31, 2011 | ' | ' | ' | ' | $2,915,446 |
Share-based compensation | ' | ' | 2,255 | ' | 2,255 |
Net income (loss) | ' | ' | ' | 24,122 | 24,122 |
Stockholders' equity at Dec. 31, 2012 | ' | 5,159 | 1,003,903 | 1,932,761 | 2,941,823 |
Shares issued at Dec. 31, 2012 | 5,158,667 | ' | ' | ' | ' |
Share-based compensation | ' | ' | 1,713 | ' | 1,713 |
Net income (loss) | ' | ' | ' | 116,197 | 116,197 |
Stockholders' equity at Dec. 31, 2013 | ' | $5,159 | $1,005,616 | $2,048,958 | $3,059,733 |
Shares issued at Dec. 31, 2013 | 5,158,667 | ' | ' | ' | ' |
1_Organization_and_Summary_of_
1. Organization and Summary of Significant Accounting Policies | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
1. Organization and Summary of Significant Accounting Policies | ' | |||
1. Organization and Summary of Significant Accounting Policies | ||||
Business Organization | ||||
The Company was incorporated under the laws of the State of Washington on February 10, 1984, primarily to develop, produce, sell and distribute wireless modems that will allow communication between peripherals via radio frequency waves. On November 12, 1984, the Company sold 3,000,000 shares of its unissued common stock to the public at an offering price of $.30 per share, as arbitrarily determined by the underwriter. | ||||
Effective September 13, 2007, the Company announced their establishment of a “doing business as” or dba structure, based on the Company’s registered trade name of ESTeem (tm) Wireless Modems. | ||||
Accounting Estimates | ||||
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Estimates used in the accompanying financial statements include allowance for doubtful accounts receivable, inventory obsolescence, useful lives of depreciable assets, share-based compensation, and deferred income taxes. Actual results could differ from those estimates. | ||||
Concentrations of Credit Risks | ||||
Financial instruments that potentially subject the Company to credit risk consist of cash, money market investments, certificates of deposit, and accounts receivables. | ||||
The Company places its cash with three major financial institutions. During the period, the Company had cash balances that were in excess of federally insured limits. | ||||
The Company’s customers, to which trade credit terms are extended, consist of United States and local governments and foreign and domestic companies. | ||||
The Company purchases certain key components necessary for the production of its products from a limited number of suppliers. The components provided by the suppliers could be replaced or substituted by other products. It is possible that if this action became necessary, an interruption of production and/or material cost expenditures could take place. | ||||
Revenue Recognition | ||||
The Company recognizes revenue from product sales when the goods are shipped or delivered and title and risk of loss pass to the customer. Provision for certain sales incentives and discounts to customers are accounted for as reductions in sales in the period the related sales are recorded. Sales are recorded net of applicable state and local sales tax. Products sold to foreign customers are shipped after payment is received in U.S. funds, unless an established distributor relationship exists or the customer is a foreign branch of a U.S. company. | ||||
Revenues from site support and engineering services are recognized as the Company performs the services. When amounts are billed and collected before the services are performed they are included in deferred revenues. Revenue is recognized based upon proportional performance when the contract contains performance milestones. | ||||
The Company does not generally sell its products with the right of return. Therefore, returns are accounted for when they occur. | ||||
The Company warrants its products as free of manufacturing defects and provides a refund of the purchase price, repair or replacement of the product for a period of one year from the date of installation by the first user/customer. No allowance for estimated warranty repairs or product returns has been recorded. Warranty expenses are expected to immaterial based on the Company’s historical warranty experience. | ||||
Financial Instruments | ||||
The Company’s financial instruments are cash, money market investments, and certificates of deposit. The recorded values of cash, cash equivalents and certificates of deposit approximate their fair values based on their short-term nature. | ||||
Cash and Cash Equivalents | ||||
Cash and cash equivalents consist primarily of cash and money market investments purchased with original maturities of three months or less. | ||||
Allowance for Uncollectible Accounts | ||||
The Company uses the allowance method to account for estimated uncollectible accounts receivable. Accounts receivable are presented net of an allowance for doubtful accounts as of December 31, 2013 and 2012, the Company’s estimate of doubtful accounts was zero. The Company’s policy for writing off past due accounts receivable is based on the amount, time past due, and response received from the subject customer. | ||||
Inventories | ||||
Inventories are stated at lower of direct cost or market. Cost is determined on an average cost basis that approximates the first-in, first-out (FIFO) method. Market is determined based on net realizable value and consideration is given to obsolescence. | ||||
Property and Equipment | ||||
Property and equipment is carried at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful life of property and equipment for purposes of computing depreciation is three to seven years. The Company periodically reviews its long-lived assets for impairment and, upon indication that the carrying value of such assets may not be recoverable, recognizes an impairment loss by a charge against current operations. When the Company sells or otherwise disposes of property and equipment a gain or loss is recorded in the statement of operations. The cost of improvements that extend the life of property and equipment is capitalized. | ||||
Certificates of Deposit | ||||
Certificates of deposit with original maturities ranging from three months to twelve months were $1,414,000 and $1,367,000, at December 31, 2013 and 2012 respectively. | ||||
Capitalized Software Costs | ||||
Capitalized software costs consist of costs to purchase and develop software. The Company capitalizes the costs of creating a software product to be sold, leased or otherwise marketed, for which technological feasibility has been established. Amortization of the software product, on a product-by-product basis, begins on the date the product is available for distribution to customers and continues over the estimated revenue-producing life, not to exceed five years. All capitalized software costs are fully amortized. | ||||
Income Taxes | ||||
The provision (benefit) for income taxes is computed on the pretax income based on the current tax law. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates. | ||||
Research and Development | ||||
Research and development costs are expensed as incurred. Research and development expenditures for new product development and improvements of existing products by the Company for 2013 and 2012 were $275,207 and $272,440, respectively. | ||||
Advertising Costs | ||||
Costs incurred for producing and communicating advertising are expensed when incurred. Advertising costs for the years ended December 31, 2013 and 2012 were $17,055 and $16,116, respectively. | ||||
Earnings per share | ||||
The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents. | ||||
Potentially dilutive common stock equivalents consist of 525,000 and 505,000 stock options outstanding as of December 31, 2013 and 2012, respectively. As of December 31, 2013, 175,000 of the outstanding stock options had a dilutive effect on the calculation of the diluted weighted average number of shares outstanding. The diluted weighted average number of shares outstanding did not have a material effect on EPS at December 31, 2013. | ||||
As of December 31, 2012, the potentially dilutive stock options were not included in the calculation of the diluted weighted average number of shares outstanding or diluted EPS as their effect would have been anti-dilutive. | ||||
Share-Based Compensation | ||||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718 requires all share-based payments to employees, including grants of employee stock options, be measured at fair value and expensed in the statement of operations over the service period. See Note 7 for additional information. In addition to the recognition of expense in the financial statements, under FASB ASC 718, any excess tax benefits received upon exercise of options will be presented as a financing activity inflow rather than an adjustment of operating activity as presented in prior years. | ||||
Fair Value Measurements | ||||
ASC 820 "Fair Value Measurements and Disclosures" ("ASC 820") requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. ASC 820 establishes a fair value hierarchy based on the level of independent, objective evidence surrounding the inputs used to measure fair value. A financial instrument's categorization within the fair value hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASC 820 prioritizes the inputs into three levels that may be used to measure fair value: | ||||
Level 1: Level 1 applies to assets or liabilities for which there are quoted prices in active markets for identical assets or liabilities. | ||||
Level 2: Level 2 applies to assets or liabilities for which there are inputs other than quoted prices that are observable for the asset or liability such as quote prices for similar assets or liabilities in active markets; quoted prices for identical assets in markets with insufficient volume or infrequent transactions (less active markets); or model-derived valuations in which significant inputs are observable or can be derived principally from, or corroborated by, observable market data. | ||||
Level 3: Level 3 applies to assets or liabilities for which there are unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. | ||||
At December 31, 2013 and 2012, the Company’s certificates of deposit were valued as follows: | ||||
2013 | 2012 | Fair value measurement level | ||
Certificates of deposit | 1,414,000 | 1,367,000 | Level 1 | |
2_Inventories
2. Inventories | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
2. Inventories | ' | ||
2. Inventories | |||
Inventories consist of the following: | |||
2013 | 2012 | ||
Parts | $ 217,567 | $ 237,848 | |
Work in progress | 83,620 | 117,695 | |
Finished goods | 324,505 | 146,413 | |
Total Inventory | $ 625,692 | $ 501,956 | |
3_Property_and_Equipment
3. Property and Equipment | 12 Months Ended | ||
Dec. 31, 2013 | |||
Notes | ' | ||
3. Property and Equipment | ' | ||
3. Property and Equipment | |||
Property and equipment consist of the following: | |||
2013 | 2012 | ||
Laboratory equipment | $ 596,681 | $ 594,042 | |
Furniture and fixtures | 16,745 | 16,745 | |
Dies and molds | 105,353 | 105,353 | |
Property, plant and equipment gross | 718,779 | 716,140 | |
Accumulated depreciation | -687,407 | -673,868 | |
Property, plant and equipment, net | $ 31,372 | $ 42,272 | |
4_Income_Taxes
4. Income Taxes | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
4. Income Taxes | ' | |||
4. Income Taxes | ||||
The Company uses the liability method in accounting for income taxes. | ||||
The provision (benefit) for federal income taxes consisted of: | ||||
2013 | 2012 | |||
Current | $ 3,700 | $ - | ||
Deferred | -11,700 | 26,400 | ||
Provision (benefit) for federal income taxes | $ (8,000 ) | $ 26,400 | ||
The components of deferred tax assets and liabilities at December 31 were as follows: | ||||
2013 | 2012 | |||
Deferred tax assets: | ||||
Accrued liabilities | $ 9,337 | $ 8,416 | ||
Inventories | 26,644 | 19,121 | ||
Other | 619 | -1,537 | ||
Total | $ 36,600 | $ 26,000 | ||
Deferred tax liabilities: | ||||
Depreciable property | $ 5,100 | $ 6,200 | ||
Total | $ 5,100 | $ 6,200 | ||
The differences between the provision for income taxes and income taxes computed using the U.S. federal income tax rate of 35% were as follows: | ||||
2013 | 2012 | |||
Amount computed using the statutory rate | $ 37,869 | $ 17,683 | ||
Non-deductible permanent differences | 2,458 | 2,787 | ||
Income tax credits | -35,843 | -8,026 | ||
Effect of graduated rates | -12,484 | -12,444 | ||
Change in deferred tax assets | - | 26,400 | ||
Provision (benefit) for federal income taxes | $ (8,000) | $ 26,400 | ||
The Company files federal income tax returns in the United States only. The Company is no longer subject to federal income tax examination by tax authorities for years before 2010. The Company has evaluated all tax positions for open years and has concluded that they have no material unrecognized tax benefits or penalties. | ||||
5_Profit_Sharing_Salary_Deferr
5. Profit Sharing Salary Deferral 401-k Plan | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
5. Profit Sharing Salary Deferral 401-k Plan | ' |
5. Profit Sharing Salary Deferral 401-K Plan | |
The Company sponsors a Profit Sharing Plan and Salary Deferral 401-K Plan and Trust. All employees over the age of twenty-one are eligible. On January 1, 2006, the Company adopted a four percent salary matching provision. The Company contributed $27,072 and $26,495 to the plan for the years ended December 31, 2013 and 2012 respectively. |
6_Employee_Profit_Sharing_Bonu
6. Employee Profit Sharing Bonus Program | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
6. Employee Profit Sharing Bonus Program | ' |
6. Employee Profit Sharing Bonus Program | |
The Company makes discretionary contributions to the Employees Profit Sharing Bonus Program (a non-qualified plan) based upon ten percent of the first $100,000 of pre-tax net income plus eight percent of pre-tax net income in excess of $100,000. The Company accrued $11,582 for the year ended December 31, 2013. There was no accrual recorded for 2012. |
7_Sharebased_Compensation
7. Share-based Compensation | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Notes | ' | |||
7. Share-based Compensation | ' | |||
7. Share-Based Compensation | ||||
The Company grants stock options to individual employees and directors with three years continuous tenure. After termination of employment, stock options may be exercised within ninety days, after which they are subject to forfeiture. | ||||
The fair value of each option award is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted-average assumptions used for grants in: | ||||
2013 | 2012 | |||
Dividend yield | 0.00% | 0.00% | ||
Expected volatility | 73% | 68% | ||
Risk-free interest rate | 0.38% | 0.36% | ||
Expected term (in years) | 3 | 3 | ||
Estimated fair value per option granted | $ 0.15 | $ 0.15 | ||
The average risk-free interest rate is based on the three-year U.S. Treasury Bond rate in effect as of the grant date. The expected volatility is determined using a weighted average of weekly historical volatility of the stock price over a period of one year prior to the grant dates. The Company uses historical data to estimate option exercise rates. The option exercise rate for option grants in 2013 was 6.6 percent. | ||||
In the years ended December 31, 2013 and 2012, the Company recognized $1,713 and $2,255 respectively, in share-based compensation expense. No non-vested share-based compensation arrangements existed as of December 31, 2013. | ||||
A summary of option activity follows: | ||||
Weighted | ||||
Weighted | Average | |||
Average | Remaining | |||
Exercise | Contractual | |||
Number | Price Per | Term | ||
Outstanding | Option | (Years) | ||
Balance at 12/31/11 | 590,000 | $ 0.40 | 1.1 | |
Granted | 220,000 | 0.37 | ||
Exercised | - | - | ||
Canceled | -305,000 | 0.35 | ||
Balance at 12/31/12 | 505,000 | 0.42 | 1.1 | |
Granted | 175,000 | 0.31 | ||
Exercised | - | - | ||
Canceled | -155,000 | 0.48 | ||
Balance at 12/31/13 | 525,000 | $ 0.38 | 2.1 | |
Outstanding and Exercisable at 12/31/13 | 525,000 | $ 0.38 | 2.1 | |
The aggregate intrinsic value of the options outstanding and exercisable at December 31, 2013, was $0. | ||||
8_Leases
8. Leases | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
8. Leases | ' |
8. Leases | |
The Company leases its facilities from a port authority for $5,153 per month for three years, expiring in September 2014, with annual increases based upon the Consumer Price Index. The lease expense for the years ended December 31, 2013 and 2012 was $60,091 and $51,185 respectively. |
9_Related_Party_Transactions
9. Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
9. Related Party Transactions | ' |
9. Related Party Transactions | |
For the years ended December 31, 2013 and 2012, services in the amount of $116,662 and $101,398 respectively, were contracted with a manufacturing process company, Manufacturing Services, Inc. The president and past president of Manufacturing Services, Inc., are members of the Board of Directors of Electronic Systems Technology, Inc. |
10_Commitments_and_Contingenci
10. Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Notes | ' |
10. Commitments and Contingencies | ' |
10. Commitments and Contingencies | |
In 2009, the Company entered into a licensing agreement with Wi-LAN, Inc. (a Canadian Company), to pay royalties for certain licensing rights and liability releases. Such amounts are not considered significant by the Company. |
11_Segment_Reporting
11. Segment Reporting | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Notes | ' | ||||
11. Segment Reporting | ' | ||||
11. Segment Reporting | |||||
Segment information is prepared on the same basis that the Company’s management reviews financial information for operational decision making purposes. Electronic Systems Technology, Inc., has two reportable segments, domestic and foreign, based on the geographic location of the customers. Both segments sell radio modem products (requiring an FCC license or license free Ethernet products), related accessories for radio modem products for industrial automation projects, and mobile data computer products. The foreign segment sells the Company’s products and services outside the United States. | |||||
Domestic customers represent approximately eighty-one percent of total net revenues. Foreign customers represent approximately nineteen percent of total net revenues. One individual customer comprised more than ten percent of sales revenue. Revenues from foreign countries consist primarily of revenues from Hungary, Croatia, India and Mexico. | |||||
The accounting policies of the segments are the same as those described in the summary of significant accounting policies, Note 1. Management evaluates performance based on net revenues and operating expenses. Administrative functions such as finance and information systems are centralized. However, where applicable, portions of the administrative function expenses are allocated between the operating segments. The operating segments share the same manufacturing and distribution facilities. Costs of operating the manufacturing plant, equipment, inventory, and accounts receivable are allocated directly to each segment. During the years ended December 31, 2013 and 2012, one customer accounted for 20.1% and 13.4% of the Company’s sales revenue, respectively. | |||||
Summary financial information for the two reportable segments is as follows: | |||||
2013 | Domestic | Foreign | Unallocated Corporate | Total | |
Total sales, net | $ 1,767,522 | $ 422,736 | $ - | $2,190,258 | |
Total other income | - | 8,158 | 8,158 | ||
Depreciation | 2,222 | - | 11,318 | 13,540 | |
Income before tax | 282,276 | 92,441 | -266,520 | 108,197 | |
Identifiable assets | 775,638 | 11,260 | 2,341,846 | 3,128,744 | |
Net capital expenditures | 999 | - | 1,640 | 2,639 | |
2012 | |||||
Total sales, net | $ 1,648,899 | $ 464,917 | $ - | $2,113,816 | |
Total other income | 7,420 | - | - | 7,420 | |
Depreciation | 14,030 | - | 1,454 | 15,484 | |
Income before tax | 202,853 | 124,402 | -276,733 | 50,522 | |
Identifiable assets | 720,371 | 12,195 | 2,261,158 | 2,993,724 | |
Net capital expenditures | - | - | 3,398 | 3,398 | |
1_Organization_and_Summary_of_1
1. Organization and Summary of Significant Accounting Policies: Accounting Estimates (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Accounting Estimates | ' |
Accounting Estimates | |
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues and expenses. Estimates used in the accompanying financial statements include allowance for doubtful accounts receivable, inventory obsolescence, useful lives of depreciable assets, share-based compensation, and deferred income taxes. Actual results could differ from those estimates. |
1_Organization_and_Summary_of_2
1. Organization and Summary of Significant Accounting Policies: Concentrations of Credit Risks (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Concentrations of Credit Risks | ' |
Concentrations of Credit Risks | |
Financial instruments that potentially subject the Company to credit risk consist of cash, money market investments, certificates of deposit, and accounts receivables. | |
The Company places its cash with three major financial institutions. During the period, the Company had cash balances that were in excess of federally insured limits. | |
The Company’s customers, to which trade credit terms are extended, consist of United States and local governments and foreign and domestic companies. | |
The Company purchases certain key components necessary for the production of its products from a limited number of suppliers. The components provided by the suppliers could be replaced or substituted by other products. It is possible that if this action became necessary, an interruption of production and/or material cost expenditures could take place. |
1_Organization_and_Summary_of_3
1. Organization and Summary of Significant Accounting Policies: Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Revenue Recognition | ' |
Revenue Recognition | |
The Company recognizes revenue from product sales when the goods are shipped or delivered and title and risk of loss pass to the customer. Provision for certain sales incentives and discounts to customers are accounted for as reductions in sales in the period the related sales are recorded. Sales are recorded net of applicable state and local sales tax. Products sold to foreign customers are shipped after payment is received in U.S. funds, unless an established distributor relationship exists or the customer is a foreign branch of a U.S. company. | |
Revenues from site support and engineering services are recognized as the Company performs the services. When amounts are billed and collected before the services are performed they are included in deferred revenues. Revenue is recognized based upon proportional performance when the contract contains performance milestones. | |
The Company does not generally sell its products with the right of return. Therefore, returns are accounted for when they occur. | |
The Company warrants its products as free of manufacturing defects and provides a refund of the purchase price, repair or replacement of the product for a period of one year from the date of installation by the first user/customer. No allowance for estimated warranty repairs or product returns has been recorded. Warranty expenses are expected to immaterial based on the Company’s historical warranty experience. |
1_Organization_and_Summary_of_4
1. Organization and Summary of Significant Accounting Policies: Financial Instruments (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Financial Instruments | ' |
Financial Instruments | |
The Company’s financial instruments are cash, money market investments, and certificates of deposit. The recorded values of cash, cash equivalents and certificates of deposit approximate their fair values based on their short-term nature. |
1_Organization_and_Summary_of_5
1. Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Cash and Cash Equivalents | ' |
Cash and Cash Equivalents | |
Cash and cash equivalents consist primarily of cash and money market investments purchased with original maturities of three months or less. |
1_Organization_and_Summary_of_6
1. Organization and Summary of Significant Accounting Policies: Allowance For Uncollectible Accounts (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Allowance For Uncollectible Accounts | ' |
Allowance for Uncollectible Accounts | |
The Company uses the allowance method to account for estimated uncollectible accounts receivable. Accounts receivable are presented net of an allowance for doubtful accounts as of December 31, 2013 and 2012, the Company’s estimate of doubtful accounts was zero. The Company’s policy for writing off past due accounts receivable is based on the amount, time past due, and response received from the subject customer. |
1_Organization_and_Summary_of_7
1. Organization and Summary of Significant Accounting Policies: Inventories (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Inventories | ' |
Inventories | |
Inventories are stated at lower of direct cost or market. Cost is determined on an average cost basis that approximates the first-in, first-out (FIFO) method. Market is determined based on net realizable value and consideration is given to obsolescence. |
1_Organization_and_Summary_of_8
1. Organization and Summary of Significant Accounting Policies: Property and Equipment (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Property and Equipment | ' |
Property and Equipment | |
Property and equipment is carried at cost. Depreciation is computed using the straight-line method over the estimated useful lives of the assets. The useful life of property and equipment for purposes of computing depreciation is three to seven years. The Company periodically reviews its long-lived assets for impairment and, upon indication that the carrying value of such assets may not be recoverable, recognizes an impairment loss by a charge against current operations. When the Company sells or otherwise disposes of property and equipment a gain or loss is recorded in the statement of operations. The cost of improvements that extend the life of property and equipment is capitalized. |
1_Organization_and_Summary_of_9
1. Organization and Summary of Significant Accounting Policies: Certificates of Deposit (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Certificates of Deposit | ' |
Certificates of Deposit | |
Certificates of deposit with original maturities ranging from three months to twelve months were $1,414,000 and $1,367,000, at December 31, 2013 and 2012 respectively. |
Recovered_Sheet1
1. Organization and Summary of Significant Accounting Policies: Capitalized Software Costs (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Capitalized Software Costs | ' |
Capitalized Software Costs | |
Capitalized software costs consist of costs to purchase and develop software. The Company capitalizes the costs of creating a software product to be sold, leased or otherwise marketed, for which technological feasibility has been established. Amortization of the software product, on a product-by-product basis, begins on the date the product is available for distribution to customers and continues over the estimated revenue-producing life, not to exceed five years. All capitalized software costs are fully amortized. |
Recovered_Sheet2
1. Organization and Summary of Significant Accounting Policies: Income Taxes (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Income Taxes | ' |
Income Taxes | |
The provision (benefit) for income taxes is computed on the pretax income based on the current tax law. Deferred income taxes are recognized for the tax consequences in future years of differences between the tax basis of assets and liabilities and their financial reporting amounts at each year-end based on enacted tax laws and statutory tax rates. |
Recovered_Sheet3
1. Organization and Summary of Significant Accounting Policies: Research and Development (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Research and Development | ' |
Research and Development | |
Research and development costs are expensed as incurred. Research and development expenditures for new product development and improvements of existing products by the Company for 2013 and 2012 were $275,207 and $272,440, respectively. |
Recovered_Sheet4
1. Organization and Summary of Significant Accounting Policies: Advertising Costs (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Advertising Costs | ' |
Advertising Costs | |
Costs incurred for producing and communicating advertising are expensed when incurred. Advertising costs for the years ended December 31, 2013 and 2012 were $17,055 and $16,116, respectively. |
Recovered_Sheet5
1. Organization and Summary of Significant Accounting Policies: Earnings Per Share (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Earnings Per Share | ' |
Earnings per share | |
The Company is required to have dual presentation of basic earnings per share (“EPS”) and diluted EPS. Basic EPS is computed as net income divided by the weighted average number of common shares outstanding for the period. Diluted EPS is calculated based on the weighted average number of common shares outstanding during the period plus the effect of potentially dilutive common stock equivalents. | |
Potentially dilutive common stock equivalents consist of 525,000 and 505,000 stock options outstanding as of December 31, 2013 and 2012, respectively. As of December 31, 2013, 175,000 of the outstanding stock options had a dilutive effect on the calculation of the diluted weighted average number of shares outstanding. The diluted weighted average number of shares outstanding did not have a material effect on EPS at December 31, 2013. | |
As of December 31, 2012, the potentially dilutive stock options were not included in the calculation of the diluted weighted average number of shares outstanding or diluted EPS as their effect would have been anti-dilutive. |
Recovered_Sheet6
1. Organization and Summary of Significant Accounting Policies: Share-based Compensation (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Policies | ' |
Share-based Compensation | ' |
Share-Based Compensation | |
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 718 requires all share-based payments to employees, including grants of employee stock options, be measured at fair value and expensed in the statement of operations over the service period. See Note 7 for additional information. In addition to the recognition of expense in the financial statements, under FASB ASC 718, any excess tax benefits received upon exercise of options will be presented as a financing activity inflow rather than an adjustment of operating activity as presented in prior years. |
Fair_Value_Measures_Fair_Value
Fair Value Measures: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis | ' | |||
2013 | 2012 | Fair value measurement level | ||
Certificates of deposit | 1,414,000 | 1,367,000 | Level 1 |
2_Inventories_Schedule_of_Inve
2. Inventories: Schedule of Inventory, Current (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Schedule of Inventory, Current | ' | ||
2013 | 2012 | ||
Parts | $ 217,567 | $ 237,848 | |
Work in progress | 83,620 | 117,695 | |
Finished goods | 324,505 | 146,413 | |
Total Inventory | $ 625,692 | $ 501,956 |
3_Property_and_Equipment_Prope
3. Property and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended | ||
Dec. 31, 2013 | |||
Tables/Schedules | ' | ||
Property, Plant and Equipment | ' | ||
2013 | 2012 | ||
Laboratory equipment | $ 596,681 | $ 594,042 | |
Furniture and fixtures | 16,745 | 16,745 | |
Dies and molds | 105,353 | 105,353 | |
Property, plant and equipment gross | 718,779 | 716,140 | |
Accumulated depreciation | -687,407 | -673,868 | |
Property, plant and equipment, net | $ 31,372 | $ 42,272 |
4_Income_Taxes_Schedule_of_Com
4. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Components of Income Tax Expense (Benefit) | ' | |||
2013 | 2012 | |||
Current | $ 3,700 | $ - | ||
Deferred | -11,700 | 26,400 | ||
Provision (benefit) for federal income taxes | $ (8,000 ) | $ 26,400 |
4_Income_Taxes_Schedule_of_Def
4. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Deferred Tax Assets and Liabilities | ' | |||
2013 | 2012 | |||
Deferred tax assets: | ||||
Accrued liabilities | $ 9,337 | $ 8,416 | ||
Inventories | 26,644 | 19,121 | ||
Other | 619 | -1,537 | ||
Total | $ 36,600 | $ 26,000 | ||
Deferred tax liabilities: | ||||
Depreciable property | $ 5,100 | $ 6,200 | ||
Total | $ 5,100 | $ 6,200 |
4_Income_Taxes_Schedule_of_Eff
4. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Effective Income Tax Rate Reconciliation | ' | |||
2013 | 2012 | |||
Amount computed using the statutory rate | $ 37,869 | $ 17,683 | ||
Non-deductible permanent differences | 2,458 | 2,787 | ||
Income tax credits | -35,843 | -8,026 | ||
Effect of graduated rates | -12,484 | -12,444 | ||
Change in deferred tax assets | - | 26,400 | ||
Provision (benefit) for federal income taxes | $ (8,000) | $ 26,400 |
7_Sharebased_Compensation_Shar
7. Share-based Compensation: Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | ' | |||
2013 | 2012 | |||
Dividend yield | 0.00% | 0.00% | ||
Expected volatility | 73% | 68% | ||
Risk-free interest rate | 0.38% | 0.36% | ||
Expected term (in years) | 3 | 3 | ||
Estimated fair value per option granted | $ 0.15 | $ 0.15 |
7_Sharebased_Compensation_Sche
7. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Tables/Schedules | ' | |||
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | ' | |||
Weighted | ||||
Weighted | Average | |||
Average | Remaining | |||
Exercise | Contractual | |||
Number | Price Per | Term | ||
Outstanding | Option | (Years) | ||
Balance at 12/31/11 | 590,000 | $ 0.40 | 1.1 | |
Granted | 220,000 | 0.37 | ||
Exercised | - | - | ||
Canceled | -305,000 | 0.35 | ||
Balance at 12/31/12 | 505,000 | 0.42 | 1.1 | |
Granted | 175,000 | 0.31 | ||
Exercised | - | - | ||
Canceled | -155,000 | 0.48 | ||
Balance at 12/31/13 | 525,000 | $ 0.38 | 2.1 | |
Outstanding and Exercisable at 12/31/13 | 525,000 | $ 0.38 | 2.1 |
11_Segment_Reporting_Schedule_
11. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Tables) | 12 Months Ended | ||||
Dec. 31, 2013 | |||||
Tables/Schedules | ' | ||||
Schedule of Segment Reporting Information, by Segment | ' | ||||
2013 | Domestic | Foreign | Unallocated Corporate | Total | |
Total sales, net | $ 1,767,522 | $ 422,736 | $ - | $2,190,258 | |
Total other income | - | 8,158 | 8,158 | ||
Depreciation | 2,222 | - | 11,318 | 13,540 | |
Income before tax | 282,276 | 92,441 | -266,520 | 108,197 | |
Identifiable assets | 775,638 | 11,260 | 2,341,846 | 3,128,744 | |
Net capital expenditures | 999 | - | 1,640 | 2,639 | |
2012 | |||||
Total sales, net | $ 1,648,899 | $ 464,917 | $ - | $2,113,816 | |
Total other income | 7,420 | - | - | 7,420 | |
Depreciation | 14,030 | - | 1,454 | 15,484 | |
Income before tax | 202,853 | 124,402 | -276,733 | 50,522 | |
Identifiable assets | 720,371 | 12,195 | 2,261,158 | 2,993,724 | |
Net capital expenditures | - | - | 3,398 | 3,398 |
Recovered_Sheet7
1. Organization and Summary of Significant Accounting Policies (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Details | ' |
Nature of Operations | 'Business Organization The Company was incorporated under the laws of the State of Washington on February 10, 1984, primarily to develop, produce, sell and distribute wireless modems that will allow communication between peripherals via radio frequency waves. On November 12, 1984, the Company sold 3,000,000 shares of its unissued common stock to the public at an offering price of $.30 per share, as arbitrarily determined by the underwriter. Effective September 13, 2007, the Company announced their establishment of a “doing business as” or dba structure, based on the Company’s registered trade name of ESTeem (tm) Wireless Modems. |
Recovered_Sheet8
1. Organization and Summary of Significant Accounting Policies: Certificates of Deposit (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Certificates of deposit | $1,414,000 | $1,367,000 |
Recovered_Sheet9
1. Organization and Summary of Significant Accounting Policies: Research and Development (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Research and Development Expense | $275,207 | $272,440 |
Recovered_Sheet10
1. Organization and Summary of Significant Accounting Policies: Advertising Costs (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Advertising Expense | $17,055 | $16,116 |
Fair_Value_Measures_Fair_Value1
Fair Value Measures: Fair Value, Assets Measured on Recurring and Nonrecurring Basis (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Certificates of deposit | $1,414,000 | $1,367,000 |
2_Inventories_Schedule_of_Inve1
2. Inventories: Schedule of Inventory, Current (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Inventory, Parts and Components, Net of Reserves | $217,567 | $237,848 |
Inventory, Work in Process, Gross | 83,620 | 117,695 |
Inventory, Finished Goods, Gross | 324,505 | 146,413 |
Inventories | $625,692 | $501,956 |
3_Property_and_Equipment_Prope1
3. Property and Equipment: Property, Plant and Equipment (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Laboratory equipment | $596,681 | $594,042 |
Furniture and Fixtures, Gross | 16,745 | 16,745 |
Dies and molds | 105,353 | 105,353 |
Property, Plant and Equipment, Gross | 718,779 | 716,140 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | -687,407 | -673,868 |
PROPERTY AND EQUIPMENT - NET | $31,372 | $42,272 |
4_Income_Taxes_Schedule_of_Com1
4. Income Taxes: Schedule of Components of Income Tax Expense (Benefit) (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Current Federal Tax Expense (Benefit) | $3,700 | ' |
Federal income tax payable | -11,700 | 26,400 |
PROVISION (BENEFIT) FOR FEDERAL INCOME TAXES | ($8,000) | $26,400 |
4_Income_Taxes_Schedule_of_Def1
4. Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Details | ' | ' |
Deferred Tax Assets, Net | $9,337 | $8,416 |
Deferred Tax Assets, Inventory | 26,644 | 19,121 |
Deferred Tax Assets, Other | 619 | -1,537 |
Deferred Tax Assets, Net of Valuation Allowance | 36,600 | 26,000 |
Deferred Tax Liabilities, Other Finite-Lived Assets | 5,100 | 6,200 |
Deferred Tax Liabilities, Net | $5,100 | $6,200 |
4_Income_Taxes_Schedule_of_Eff1
4. Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Income Tax Reconciliation, Income Tax Expense (Benefit), at Federal Statutory Income Tax Rate | $37,869 | $17,683 |
Income Tax Reconciliation, Nondeductible Expense, Other | 2,458 | 2,787 |
Income Tax Reconciliation, Tax Credits | -35,843 | -8,026 |
Income Tax Reconciliation, Change in Enacted Tax Rate | -12,484 | -12,444 |
Income Tax Reconciliation, Change in Deferred Tax Assets Valuation Allowance | ' | 26,400 |
Income Tax Expense (Benefit), Total | ($8,000) | $26,400 |
5_Profit_Sharing_Salary_Deferr1
5. Profit Sharing Salary Deferral 401-k Plan (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Defined Benefit Plan, Contributions by Employer | $27,072 | $26,495 |
6_Employee_Profit_Sharing_Bonu1
6. Employee Profit Sharing Bonus Program (Details) (USD $) | Dec. 31, 2013 |
Details | ' |
Accrued Bonuses, Current | $11,582 |
7_Sharebased_Compensation_Shar1
7. Share-based Compensation: Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 0.00% | 0.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 73.00% | 68.00% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Risk Free Interest Rate | 0.38% | 0.36% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | '3 years | '3 years |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value | $0.15 | $0.15 |
7_Sharebased_Compensation_Deta
7. Share-based Compensation (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Share-based Compensation, Total | $1,713 | $2,255 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Exercisable, Aggregate Intrinsic Value | $0 | ' |
7_Sharebased_Compensation_Sche1
7. Share-based Compensation: Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Grant Date Intrinsic Value (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Details | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 525,000 | 505,000 | 590,000 |
Weighted Average Exercise Price, Outstanding | $0.38 | $0.42 | $0.40 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | '2 years 1 month 6 days | '1 year 1 month 6 days | '1 year 1 month 6 days |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Net of Forfeitures | 175,000 | 220,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period, Weighted Average Grant Date Fair Value | $0.31 | $0.37 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Expirations in Period | -155,000 | -305,000 | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period, Weighted Average Exercise Price | $0.48 | $0.35 | ' |
8_Leases_Details
8. Leases (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Operating Leases, Rent Expense, Net | $60,091 | $51,185 |
9_Related_Party_Transactions_D
9. Related Party Transactions (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Related Party Transaction, Amounts of Transaction | $116,662 | $101,398 |
11_Segment_Reporting_Details
11. Segment Reporting (Details) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Details | ' | ' |
Entity-Wide Revenue, Major Customer, Percentage | 20.10% | 13.40% |
11_Segment_Reporting_Schedule_1
11. Segment Reporting: Schedule of Segment Reporting Information, by Segment (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2013 | Dec. 31, 2012 | |
Segment Reporting, Segment Revenue | $2,190,258 | $2,113,816 |
Segment Reporting Information, Interest Income | 8,158 | 7,420 |
Segment Reporting Information, Depreciation Expense | 13,540 | 15,484 |
Segment Reporting Information, Income (Loss) before Income Taxes | 108,197 | 50,522 |
Segment Reporting Information, Assets | 3,128,744 | 2,993,724 |
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | 2,639 | 3,398 |
DomesticMember | ' | ' |
Segment Reporting, Segment Revenue | 1,767,522 | 1,648,899 |
Segment Reporting Information, Interest Income | ' | 7,420 |
Segment Reporting Information, Depreciation Expense | 2,222 | 14,030 |
Segment Reporting Information, Income (Loss) before Income Taxes | 282,276 | 202,853 |
Segment Reporting Information, Assets | 775,638 | 720,371 |
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | 999 | ' |
ForeignMember | ' | ' |
Segment Reporting, Segment Revenue | 422,736 | 464,917 |
Segment Reporting Information, Income (Loss) before Income Taxes | 92,441 | 124,402 |
Segment Reporting Information, Assets | 11,260 | 12,195 |
UnallocatedCorporateMember | ' | ' |
Segment Reporting Information, Interest Income | 8,158 | ' |
Segment Reporting Information, Depreciation Expense | 11,318 | 1,454 |
Segment Reporting Information, Income (Loss) before Income Taxes | -266,520 | -276,733 |
Segment Reporting Information, Assets | 2,341,846 | 2,261,158 |
Segment Reporting Information, Expenditures for Additions to Long-Lived Assets | $1,640 | $3,398 |