Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Apr. 01, 2019 | Jun. 30, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Year Focus | 2018 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | PARADISE INC | ||
Entity Central Index Key | 0000076149 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Public Float | $ 10,815,440 | ||
Trading Symbol | PARF | ||
Entity Common Stock, Shares Outstanding | 519,600 | ||
Entity Shell Company | false | ||
Entity Emerging Growth Company | false | ||
Entity Small Business | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash | $ 8,036,052 | $ 8,668,012 |
Accounts Receivable, Net of Allowance for Doubtful Accounts of $ -0- and Allowance for Returns of $1,000,826 (2018) and $1,566,578 (2017) | 1,993,564 | 1,870,649 |
Inventories, Net | 9,331,533 | 9,528,646 |
Income Tax Receivable | 175,042 | 209,616 |
Prepaid Expenses and Other Current Assets | 257,949 | 224,384 |
Total Current Assets | 19,794,140 | 20,501,307 |
PROPERTY, PLANT AND EQUIPMENT, Net | 4,126,848 | 4,271,727 |
GOODWILL | 413,280 | 413,280 |
DEFERRED INCOME TAXES | 126,084 | 0 |
OTHER ASSETS | 323,390 | 345,415 |
TOTAL ASSETS | 24,783,742 | 25,531,729 |
CURRENT LIABILITIES: | ||
Short-Term Debt | 284,016 | 541,572 |
Accounts Payable | 931,424 | 638,896 |
Accrued Credits Due Fruit Customers | 333,244 | 409,131 |
Accrued Expenses | 488,248 | 419,783 |
Total Current Liabilities | 2,036,932 | 2,009,382 |
DEFERRED INCOME TAXES | 0 | 83,687 |
Total Liabilities | 2,036,932 | 2,093,069 |
STOCKHOLDERS' EQUITY: | ||
Common Stock, $.30 Par Value, 2,000,000 Shares Authorized, 583,094 Shares Issued and 519,600 Shares Outstanding | 174,928 | 174,928 |
Capital in Excess of Par Value | 1,288,793 | 1,288,793 |
Retained Earnings | 21,556,308 | 22,248,158 |
Stockholders' Equity before Treasury Stock | 23,020,029 | 23,711,879 |
Treasury Stock, at Cost, 63,494 Shares | 273,219 | 273,219 |
Total Stockholders' Equity | 22,746,810 | 23,438,660 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 24,783,742 | $ 25,531,729 |
Consolidated Balance Sheets _Pa
Consolidated Balance Sheets [Parenthetical] - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Allowance for Doubtful Accounts (in dollars) | $ 0 | $ 0 |
Allowance For Returns | $ 1,000,826 | $ 1,566,578 |
Common stock, par value (in dollars per share) | $ 0.30 | $ 0.30 |
Common stock, shares authorized | 2,000,000 | 2,000,000 |
Common stock, shares issued | 583,094 | 583,094 |
Common stock, shares outstanding | 519,600 | 519,600 |
Treasury stock, shares | 63,494 | 63,494 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
NET SALES | $ 20,134,998 | $ 21,518,492 |
COSTS AND EXPENSES: | ||
Cost of Goods Sold | 16,869,477 | 17,122,293 |
Selling, General and Administrative Expenses | 3,955,610 | 3,940,064 |
Amortization Expense | 18,000 | 6,000 |
Total Costs and Expenses | 20,843,087 | 21,068,357 |
(LOSS) INCOME FROM OPERATIONS | (708,089) | 450,135 |
OTHER (EXPENSES) INCOME – NET | (9,435) | 8,493 |
(LOSS) INCOME BEFORE PROVISION FOR INCOME TAXES | (717,524) | 458,628 |
BENEFIT (PROVISION) FOR INCOME TAXES | 103,614 | (143,815) |
NET (LOSS) INCOME | $ (613,910) | $ 314,813 |
(LOSS) EARNINGS PER SHARE: | ||
Basic | $ (1.18) | $ 0.61 |
Diluted | $ (1.18) | $ 0.61 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) | Total | COMMON STOCK [Member] | CAPITAL IN EXCESS OF PAR VALUE [Member] | RETAINED EARNINGS [Member] | TREASURY STOCK [Member] |
Balance at Dec. 31, 2016 | $ 23,253,747 | $ 174,928 | $ 1,288,793 | $ 22,063,245 | $ (273,219) |
Cash Dividends | (129,900) | (129,900) | |||
Net (Loss) Income | 314,813 | 314,813 | |||
Balance at Dec. 31, 2017 | 23,438,660 | 174,928 | 1,288,793 | 22,248,158 | (273,219) |
Cash Dividends | (77,940) | (77,940) | |||
Net (Loss) Income | (613,910) | (613,910) | |||
Balance at Dec. 31, 2018 | $ 22,746,810 | $ 174,928 | $ 1,288,793 | $ 21,556,308 | $ (273,219) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity [Parenthetical] - $ / shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Dividend Declared (in dollars per share) | $ 0.15 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (Loss) Income | $ (613,910) | $ 314,813 |
Adjustments to Reconcile Net (Loss) Income to Net Cash used in Operating Activities: | ||
Provision for Sales Returns | (565,752) | 351,425 |
Provision for Estimated Inventory Returns | (428,940) | 255,268 |
Provision for Deferred Income Taxes | (209,771) | (42,795) |
Loss on the Sale of Equipment | 13,380 | 0 |
Depreciation and Amortization | 428,126 | 415,381 |
Decrease (Increase) in: | ||
Accounts Receivable | 442,837 | (113,466) |
Inventories | 626,053 | (1,478,881) |
Prepaid Expenses and Other Current Assets | (33,565) | 72,467 |
Income Tax Receivable | 34,574 | (209,616) |
Other Assets | 6,500 | 7,704 |
Increase (Decrease) in: | ||
Accounts Payable | 292,528 | (169,800) |
Accrued Expenses | (7,422) | 139,737 |
Net Cash used in Operating Activities | (15,362) | (457,763) |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of Property, Plant and Equipment | (333,627) | (544,472) |
Proceeds from Sale of Equipment | 55,000 | 26,000 |
Change in Cash Surrender Value of Life Insurance | 15,525 | 40,875 |
Net Cash used in Investing Activities | (263,102) | (477,597) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Line of Credit Origination Costs | 0 | (36,000) |
Proceeds from Short-Term Debt | 853,706 | 1,624,351 |
Dividends Paid | (77,940) | (129,900) |
Payments on Short-Term Debt | (1,129,262) | (1,095,717) |
Net Cash (used in) provided by Financing Activities | (353,496) | 362,734 |
NET CHANGE IN CASH | (631,960) | (572,626) |
CASH, at Beginning of Year | 8,668,012 | 9,240,638 |
CASH, at End of Year | 8,036,052 | 8,668,012 |
Cash Paid During the Year for: | ||
Income Taxes | 164,260 | 396,225 |
Interest | $ 0 | $ 0 |
SIGNIFICANT ACCOUNTING POLICIES
SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | NOTE 1: SIGNIFICANT ACCOUNTING POLICIES Paradise, Inc. operations are conducted through two business segments, candied fruit and molded plastics. The primary operation of the fruit segment is production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions, the processing of frozen strawberry products, for sale to commercial and institutional users such as preserves, dairies, drink manufacturers, etc. The molded plastics segment provides production of plastic containers for the Company’s products and other molded plastics for sale to unaffiliated customers. Substantially all of the Company’s customers are located in the United States of America. Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, after elimination of all material intercompany accounts, transactions and profits. Use of Estimates The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Fair Value of Financial Instruments The aggregated net fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, receivables, payables, accrued expenses and short-term borrowings. Fair values were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand. Cash and Cash Equivalents Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. Accounts Receivable and Revenue Recognition Management reviews subsequent collections on accounts receivable and writes off all year-end balances that are not deemed collectible by the time the consolidated financial statements are issued. Additionally, management has provided for estimated product returns by applying an allowance against Accounts Receivable for the invoiced price of the returns. A provision to recognize a related estimate of finished goods returns has been added to inventories. Management considers the remaining accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts has been established as of December 31, 2018 and 2017. If accounts become uncollectible, they will be charged to operations when that determination is made. The Company does not have a policy to charge interest on past due amounts. Accounts Receivable are considered past due based on invoice terms. The Company recognizes revenue upon the shipment or delivery of goods, depending on the agreed upon terms with its customers. Inventories Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Cost includes material, labor, factory overhead and depreciation. Property, Plant and Equipment Property, plant and equipment are stated at cost. Generally, the straight-line method is used in computing depreciation. Estimated useful lives of property, plant and equipment range from 3 – 40 years. Expenditures which significantly increase values or extend useful lives are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Upon sale or retirement of property, plant and equipment, the cost and related accumulated depreciation are eliminated from the respective accounts and the resulting gain or loss is included in the current earnings. Goodwill Goodwill totaling $413,280 represents the excess purchase price over the fair value of the net assets acquired in the acquisition of Mastercraft Products Corporation. These costs are reviewed for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that goodwill may be impaired. During the years ended December 31, 2018 and 2017, the Company determined that its goodwill was not impaired. Long-lived Assets The Company’s long-lived assets other than goodwill are reviewed for potential impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. During the years ended December 31, 2018 and 2017, the Company determined that its long-lived assets were not impaired. Selling Expenses The Company considers freight delivery costs to be selling expenses and has included $617,218 (2018) and $590,107 (2017) in selling, general and administrative expenses in the accompanying statements of income. Employee Benefit Plan The Company has a 401(k) retirement plan for all eligible employees. Eligibility requirements for employees are based on completing 1,000 hours of service by the end of the first twelve months of consecutive employment and being at least 21 years old. Employee contributions are voluntary and subject to Internal Revenue Service limitations. The Company provides a matching contribution subject to annual review of the Company’s financial performance. For the years ended December 31, 2018 and 2017, the Company incurred $25,271 and $26,630, respectively, in 401(k) expense. Earnings Per Share Basic and diluted earnings per common share are based on the weighted average number of shares outstanding and assumed to be outstanding of 519,600 shares at December 31, 2018 and 2017. There are no dilutive securities outstanding at December 31, 2018 and 2017. Income Taxes The Company’s provision for income taxes includes amounts payable or refundable for the current year, the effects of deferred taxes and impacts from uncertain tax positions. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of the Company’s assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, the Company considers any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. The Company recognizes tax benefits in its financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount the Company recognizes is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. The Company monitors for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. In response to the United States tax reform legislation enacted on December 22, 2017 (“U.S. tax reform”), the U.S. Securities and Exchange Commission (“SEC”) issued guidance that allowed the Company to record provisional amounts for the impacts of U.S. tax reform if the full accounting could not be completed before the Company filed their 2017 financial statements. For provisions of the tax law where the Company was unable to make a reasonable estimate of the impact, the guidance allowed the Company to continue to apply the historical tax provisions in computing its income tax liability and deferred tax assets and liabilities as of December 31, 2017. The guidance allowed the Company to finalize accounting for the U.S. tax reform changes within one year of the December 22, 2017 enactment date. Reclassifications Certain minor reclassifications have been made to the 2017 consolidated financial statements in order to conform to the classifications used in 2018. Impact of Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP when it became effective. The revenue guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date (annual reporting periods beginning after December 15, 2016). The ASU may be applied retrospectively to historical periods presented or as a cumulative-effect adjustment as of the date of adoption. The Company adopted the new standard on January 1, 2018 on a full retrospective basis. There was no material financial impact from adopting the new revenue standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)(ASU 2016-02). Under ASU 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company has evaluated the effect of this standard at December 31, 2018. There was no material financial impact. Except as noted above, the Company’s management does not believe that recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements. |
INVENTORIES
INVENTORIES | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Inventory Disclosure [Text Block] | NOTE 2: INVENTORIES 2018 2017 Supplies $ 203,562 $ 194,346 Raw Materials 6,509,732 5,855,658 Work in Progress 885,655 1,077,718 Finished Goods 1,732,584 2,400,924 Total $ 9,331,533 $ 9,528,646 Included in Finished Goods inventory are estimated returns related to the Provision for Sales Returns totaling $746,985 (2018) and $1,175,925 (2017). Substantially all inventories are pledged as collateral for certain short-term obligations. |
PROPERTY, PLANT AND EQUIPMENT
PROPERTY, PLANT AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | NOTE 3: PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: 2018 2017 Land and Improvements $ 656,040 $ 656,040 Buildings and Improvements 7,921,697 7,944,723 Machinery and Equipment 13,502,773 13,289,669 Vehicles 767,615 705,189 Furniture and Fixtures 734,254 721,511 Total 23,582,379 23,317,132 Less: Accumulated Depreciation 19,455,531 19,045,405 Net $ 4,126,848 $ 4,271,727 All of the real property, machinery and equipment are pledged as collateral for the Company’s short-term debt obligations. Depreciation expense for the years ended December 31, 2018 and 2017 was $410,126 and $409,381, respectively. |
SHORT-TERM DEBT
SHORT-TERM DEBT | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | NOTE 4: SHORT-TERM DEBT 2018 2017 Letters of credit and other short-term debt under a revolving line of credit with a bank. $ 284,016 $ 541,572 TOTAL $ 284,016 $ 541,572 On July 31, 2017, Paradise, Inc. renewed its revolving line of credit with SunTrust Bank through July 31, 2019. This renewal provides for a maximum limit of $12 million and a borrowing limit of 80% of the Company’s eligible receivables plus the lessor of $6,000,000 or 50% of the Company’s eligible inventory from January 1 to May 31 and 60% from June 1 to December 31 of each year. Within this agreement are letters of credit with a limit of $1,750,000. December 31, 2018. Interest is payable monthly at the bank’s LIBOR plus 1.75%. Amortization expense of loan origination costs for the years ended December 31, 2018 and 2017 was $18,000 and $6,000, respectively. |
OPERATING LEASES
OPERATING LEASES | 12 Months Ended |
Dec. 31, 2018 | |
Leases, Operating [Abstract] | |
Lessor, Operating Leases [Text Block] | NOTE 5: OPERATING LEASES The Company leases certain automobiles and office equipment under operating leases ranging in length from thirty-six to sixty months. Lease payments charged to operations amounted to $72,687 (2018) and $79,457 (2017), respectively. At December 31, 2018, future minimum payments required under leases with terms greater than one year are as follows: Years Ending Operating December 31, Leases 2019 $ 34,950 2020 12,846 2021 980 Total Minimum Lease Payments $ 48,776 |
ACCRUED EXPENSES
ACCRUED EXPENSES | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Accounts Payable and Accrued Liabilities Disclosure [Text Block] | NOTE 6: ACCRUED EXPENSES Accrued Expenses consisted of the following: 2018 2017 Accrued Payroll $ 222,042 $ 196,558 Accrued Brokerage Payable 210,040 181,900 Coupon Reimbursement 56,166 41,325 Total $ 488,248 $ 419,783 |
PROVISION FOR FEDERAL AND STATE
PROVISION FOR FEDERAL AND STATE INCOME TAXES | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | NOTE 7: PROVISION FOR FEDERAL AND STATE INCOME TAXES The Company’s provision (benefit) for income taxes was as follows: 2018 2017 Current Federal Taxes $ 106,157 $ 168,909 Current State Taxes - 17,701 Current Provision 106,157 186,610 Deferred Federal Taxes (166,234 ) (38,667 ) Deferred State Taxes (43,537 ) (4,128 ) Deferred Provision (209,771 ) (42,795 ) Total Provision (Benefit) $ (103,614 ) $ 143,815 The income tax provision (benefit) differs from the amount of tax determined by applying the Federal statutory rate as follows: 2018 2017 Statutory tax $ (150,680 ) $ 155,934 State income tax, net of federal tax (39,464 ) 16,648 Nondeductible expenses 60,342 6,390 Change in deferred taxes due to enacted changes in tax law - (35,148 ) Other 26,188 (9 ) $ (103,614 ) $ 143,815 Net deferred tax assets and liabilities were comprised of the following: 2018 2017 Current deferred tax assets (liabilities): Allowance for Sales Returns and Related Provision for Return of Finished Goods $ 67,268 $ 103,523 Inventory Valuation 277,475 184,580 Prepaid Expenses (49,403 ) (98,653 ) Net Operating Loss 105,384 - Charitable Contribution 1,413 - Total deferred tax assets $ 402,137 $ 189,450 Non current deferred tax liabilities: Tax over Book Depreciation and Amortization $ (276,053 ) $ (273,137 ) Total deferred tax liabilities – noncurrent $ (276,053 ) $ (273,137 ) Net deferred tax asset (liability) $ 126,084 $ (83,687 ) As of December 31, 2018 and 2017, we do not expect that any of the tax positions taken by the Company, if challenged, would result in a significant tax liability. |
BUSINESS SEGMENT DATA
BUSINESS SEGMENT DATA | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Reporting Disclosure [Text Block] | NOTE 8: BUSINESS SEGMENT DATA The Company’s operations are conducted through two business segments. These segments, and the primary operations of each, are as follows: BUSINESS SEGMENT OPERATION Candied Fruit Production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions, the processing of frozen strawberry products, for sale to commercial and institutional users such as preservers, dairies, drink manufacturers, etc. Molded Plastics Production of plastics containers and other molded plastics for sale to various food processors and others. YEAR ENDED YEAR ENDED 2018 2017 NET SALES IN EACH SEGMENT Candied Fruit: Sales to Unaffiliated Customers $ 14,954,061 $ 16,566,096 Molded Plastics: Sales to Unaffiliated Customers 5,180,937 4,952,396 Net Sales $ 20,134,998 $ 21,518,492 YEAR ENDED YEAR ENDED 2018 2017 THE OPERATING PROFIT OF EACH SEGMENT IS LISTED BELOW Candied Fruit $ 2,869,091 $ 4,148,227 Molded Plastics 396,430 247,972 Operating Profit of Segments 3,265,521 4,396,199 General Corporate Expenses, Net (3,916,150 ) (3,905,263 ) General Corporate Depreciation and Amortization Expense (57,460 ) (40,801 ) Other (Expense) Income (9,435 ) 8,493 (Loss) Income Before Provision for Income Taxes $ (717,524 ) $ 458,628 Operating profit is composed of net sales, less direct costs and overhead costs associated with each segment. The candied fruit segment purchases items from the molded plastics segment at cost. These transactions are then eliminated during consolidation. Due to the high degree of integration between the segments of the Company, it is not practical to allocate general corporate expenses, interest, and other income between the various segments. YEAR ENDED YEAR ENDED 2018 2017 Identifiable Assets of Each Segment are Listed Below: Candied Fruit $ 11,224,415 $ 11,078,549 Molded Plastics 3,807,342 4,231,007 Identifiable Assets 15,031,757 15,309,556 General Corporate Assets 9,751,985 10,222,173 Total Assets $ 24,783,742 $ 25,531,729 Included in Identifiable Assets of the Molded Plastics Segment is goodwill totaling $413,280 at both December 31, 2018 and 2017. Identifiable assets by segment are those assets that are principally used in the operations of each segment. General corporate assets are principally cash, land and buildings. YEAR ENDED YEAR ENDED 2018 2017 Depreciation and Amortization Expense of Each Segment are Listed Below: Candied Fruit $ 216,210 $ 216,607 Molded Plastics 154,456 157,973 Segment Depreciation and Amortization Expense 370,666 374,580 General Corporate Depreciation and Amortization Expense 57,460 40,801 Total Depreciation and Amortization Expense $ 428,126 $ 415,381 YEAR ENDED YEAR ENDED 2018 2017 Capital Expenditures of Each Segment are Listed Below: Candied Fruit $ 231,504 $ 492,425 Molded Plastics 24,294 41,757 Segment Capital Expenditures 255,798 534,182 General Corporate Capital Expenditures 77,829 10,290 Total Capital Expenditures $ 333,627 $ 544,472 The Company conducts operations only within the United States. Foreign sales are insignificant; primarily all sales are to domestic companies. |
MAJOR CUSTOMERS
MAJOR CUSTOMERS | 12 Months Ended |
Dec. 31, 2018 | |
Major Customers [Abstract] | |
Major Customers [Text Block] | NOTE 9: MAJOR CUSTOMERS During 2018, the Company derived 12% and 12% of its consolidated revenues from each Walmart Stores, Inc. and Aqua Cal, Inc., respectively. During 2017, the Company derived 17% and 10% of its consolidated revenues from Walmart Stores, Inc. and Aqua Cal, Inc., respectively. As of December 31, 2018 and 2017, Walmart Stores, Inc.’s accounts receivable balance represented 62% and 63% of total accounts receivable before allowance for returns, respectively, and Aqua Cal, Inc.’s accounts receivable balance represented 8% and 9% of total accounts receivable at December 31, 2018 and 2017, respectively. |
MAJOR VENDORS
MAJOR VENDORS | 12 Months Ended |
Dec. 31, 2018 | |
Major Vendors [Abstract] | |
Major Vendors [Text Block] | NOTE 10: MAJOR VENDORS During 2018 and 2017, the Company purchased 53% and 35% of its inventory from three suppliers. At December 31, 2018 and 2017, amounts owed to these suppliers is 32% and 10% of total accounts payable, respectively. |
CONCENTRATION OF CREDIT RISK
CONCENTRATION OF CREDIT RISK | 12 Months Ended |
Dec. 31, 2018 | |
Risks and Uncertainties [Abstract] | |
Concentration Risk Uninsured Deposits [Text Block] | NOTE 11: CONCENTRATION OF CREDIT RISK Cash is maintained at a major financial institution and, at times, balances may exceed federally insured limits. The Company’s deposits in excess of federally insured limits at December 31, 2018 and 2017 were approximately $7,639,000 and $8,188,000, respectively. |
SIGNIFICANT ACCOUNTING POLICI_2
SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries, after elimination of all material intercompany accounts, transactions and profits. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of consolidated 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 consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Fair Value of Financial Instruments The aggregated net fair value estimates discussed herein are based upon certain market assumptions and pertinent information available to management. The respective carrying value of certain on-balance-sheet financial instruments approximated their fair values. These financial instruments include cash, receivables, payables, accrued expenses and short-term borrowings. Fair values were assumed to approximate carrying values for these financial instruments since they are short-term in nature and their carrying amounts approximate fair values or they are receivable or payable on demand. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents include demand deposits with banks and all highly liquid investments with original maturities of three months or less. |
Accounts Receivable and Revenue Recognition Policy [Policy Text Block] | Accounts Receivable and Revenue Recognition Management reviews subsequent collections on accounts receivable and writes off all year-end balances that are not deemed collectible by the time the consolidated financial statements are issued. Additionally, management has provided for estimated product returns by applying an allowance against Accounts Receivable for the invoiced price of the returns. A provision to recognize a related estimate of finished goods returns has been added to inventories. Management considers the remaining accounts receivable to be fully collectible; accordingly, no allowance for doubtful accounts has been established as of December 31, 2018 and 2017. If accounts become uncollectible, they will be charged to operations when that determination is made. The Company does not have a policy to charge interest on past due amounts. Accounts Receivable are considered past due based on invoice terms. The Company recognizes revenue upon the shipment or delivery of goods, depending on the agreed upon terms with its customers. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of cost (first-in, first-out) or net realizable value. Cost includes material, labor, factory overhead and depreciation. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are stated at cost. Generally, the straight-line method is used in computing depreciation. Estimated useful lives of property, plant and equipment range from 3 – 40 years. Expenditures which significantly increase values or extend useful lives are capitalized. Expenditures for maintenance and repairs are charged to expense as incurred. Upon sale or retirement of property, plant and equipment, the cost and related accumulated depreciation are eliminated from the respective accounts and the resulting gain or loss is included in the current earnings. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill totaling $413,280 represents the excess purchase price over the fair value of the net assets acquired in the acquisition of Mastercraft Products Corporation. These costs are reviewed for impairment at least annually or more frequently upon the occurrence of an event or when circumstances indicate that goodwill may be impaired. During the years ended December 31, 2018 and 2017, the Company determined that its goodwill was not impaired. |
Intangible Assets, Finite-Lived, Policy [Policy Text Block] | Long-lived Assets The Company’s long-lived assets other than goodwill are reviewed for potential impairment whenever events or circumstances indicate that the carrying amounts may not be recoverable. During the years ended December 31, 2018 and 2017, the Company determined that its long-lived assets were not impaired. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling Expenses The Company considers freight delivery costs to be selling expenses and has included $617,218 (2018) and $590,107 (2017) in selling, general and administrative expenses in the accompanying statements of income. |
Postemployment Benefit Plans, Policy [Policy Text Block] | Employee Benefit Plan The Company has a 401(k) retirement plan for all eligible employees. Eligibility requirements for employees are based on completing 1,000 hours of service by the end of the first twelve months of consecutive employment and being at least 21 years old. Employee contributions are voluntary and subject to Internal Revenue Service limitations. The Company provides a matching contribution subject to annual review of the Company’s financial performance. For the years ended December 31, 2018 and 2017, the Company incurred $25,271 and $26,630, respectively, in 401(k) expense. |
Earnings Per Share, Policy [Policy Text Block] | Earnings Per Share Basic and diluted earnings per common share are based on the weighted average number of shares outstanding and assumed to be outstanding of 519,600 shares at December 31, 2018 and 2017. There are no dilutive securities outstanding at December 31, 2018 and 2017. |
Income Tax, Policy [Policy Text Block] | Income Taxes The Company’s provision for income taxes includes amounts payable or refundable for the current year, the effects of deferred taxes and impacts from uncertain tax positions. The Company recognizes deferred tax assets and liabilities for the expected future tax consequences of temporary differences between the financial statement and tax basis of the Company’s assets and liabilities, operating loss carryforwards and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply in the years in which those differences are expected to reverse. The realization of certain deferred tax assets is dependent on generating sufficient taxable income in the appropriate jurisdiction prior to the expiration of the carryforward periods. Deferred tax assets are reduced by a valuation allowance if it is more likely than not that some portion, or all, of the deferred tax assets will not be realized. When assessing the need for a valuation allowance, the Company considers any carryback potential, future reversals of existing taxable temporary differences (including liabilities for unrecognized tax benefits), future taxable income and tax planning strategies. The Company recognizes tax benefits in its financial statements from uncertain tax positions only if it is more likely than not that the tax position will be sustained based on the technical merits of the position. The amount the Company recognizes is measured as the largest amount of benefit that is greater than 50 percent likely of being realized upon resolution. Future changes related to the expected resolution of uncertain tax positions could affect tax expense in the period when the change occurs. The Company monitors for changes in tax laws and reflect the impacts of tax law changes in the period of enactment. In response to the United States tax reform legislation enacted on December 22, 2017 (“U.S. tax reform”), the U.S. Securities and Exchange Commission (“SEC”) issued guidance that allowed the Company to record provisional amounts for the impacts of U.S. tax reform if the full accounting could not be completed before the Company filed their 2017 financial statements. For provisions of the tax law where the Company was unable to make a reasonable estimate of the impact, the guidance allowed the Company to continue to apply the historical tax provisions in computing its income tax liability and deferred tax assets and liabilities as of December 31, 2017. The guidance allowed the Company to finalize accounting for the U.S. tax reform changes within one year of the December 22, 2017 enactment date. |
Reclassification, Policy [Policy Text Block] | Reclassifications Certain minor reclassifications have been made to the 2017 consolidated financial statements in order to conform to the classifications used in 2018. |
New Accounting Pronouncements, Policy [Policy Text Block] | Impact of Recently Issued Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU replaced most existing revenue recognition guidance in U.S. GAAP when it became effective. The revenue guidance is effective for annual reporting periods beginning after December 15, 2017, with early adoption permitted as of the original effective date (annual reporting periods beginning after December 15, 2016). The ASU may be applied retrospectively to historical periods presented or as a cumulative-effect adjustment as of the date of adoption. The Company adopted the new standard on January 1, 2018 on a full retrospective basis. There was no material financial impact from adopting the new revenue standard. In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842)(ASU 2016-02). Under ASU 2016-2, an entity will be required to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. ASU 2016-02 offers specific accounting guidance for a lessee, a lessor and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing and uncertainty of cash flows arising from leases. For public companies, ASU 2016-02 is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and requires a modified retrospective adoption, with early adoption permitted. The Company has evaluated the effect of this standard at December 31, 2018. There was no material financial impact. Except as noted above, the Company’s management does not believe that recent codified pronouncements by the Financial Accounting Standards Board (“FASB”) (including its EITF), the AICPA or the Securities and Exchange Commission will have a material impact on the Company’s current or future consolidated financial statements. |
INVENTORIES (Tables)
INVENTORIES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | 2018 2017 Supplies $ 203,562 $ 194,346 Raw Materials 6,509,732 5,855,658 Work in Progress 885,655 1,077,718 Finished Goods 1,732,584 2,400,924 Total $ 9,331,533 $ 9,528,646 |
PROPERTY, PLANT AND EQUIPMENT (
PROPERTY, PLANT AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consisted of the following: 2018 2017 Land and Improvements $ 656,040 $ 656,040 Buildings and Improvements 7,921,697 7,944,723 Machinery and Equipment 13,502,773 13,289,669 Vehicles 767,615 705,189 Furniture and Fixtures 734,254 721,511 Total 23,582,379 23,317,132 Less: Accumulated Depreciation 19,455,531 19,045,405 Net $ 4,126,848 $ 4,271,727 |
SHORT-TERM DEBT (Tables)
SHORT-TERM DEBT (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | 2018 2017 Letters of credit and other short-term debt under a revolving line of credit with a bank. $ 284,016 $ 541,572 TOTAL $ 284,016 $ 541,572 |
OPERATING LEASES (Tables)
OPERATING LEASES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Leases [Abstract] | |
Schedule of Future Minimum Rental Payments for Operating Leases [Table Text Block] | At December 31, 2018, future minimum payments required under leases with terms greater than one year are as follows: Years Ending Operating December 31, Leases 2019 $ 34,950 2020 12,846 2021 980 Total Minimum Lease Payments $ 48,776 |
ACCRUED EXPENSES (Tables)
ACCRUED EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities [Table Text Block] | Accrued Expenses consisted of the following: 2018 2017 Accrued Payroll $ 222,042 $ 196,558 Accrued Brokerage Payable 210,040 181,900 Coupon Reimbursement 56,166 41,325 Total $ 488,248 $ 419,783 |
PROVISION FOR FEDERAL AND STA_2
PROVISION FOR FEDERAL AND STATE INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The Company’s provision (benefit) for income taxes was as follows: 2018 2017 Current Federal Taxes $ 106,157 $ 168,909 Current State Taxes - 17,701 Current Provision 106,157 186,610 Deferred Federal Taxes (166,234 ) (38,667 ) Deferred State Taxes (43,537 ) (4,128 ) Deferred Provision (209,771 ) (42,795 ) Total Provision (Benefit) $ (103,614 ) $ 143,815 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The income tax provision (benefit) differs from the amount of tax determined by applying the Federal statutory rate as follows: 2018 2017 Statutory tax $ (150,680 ) $ 155,934 State income tax, net of federal tax (39,464 ) 16,648 Nondeductible expenses 60,342 6,390 Change in deferred taxes due to enacted changes in tax law - (35,148 ) Other 26,188 (9 ) $ (103,614 ) $ 143,815 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Net deferred tax assets and liabilities were comprised of the following: 2018 2017 Current deferred tax assets (liabilities): Allowance for Sales Returns and Related Provision for Return of Finished Goods $ 67,268 $ 103,523 Inventory Valuation 277,475 184,580 Prepaid Expenses (49,403 ) (98,653 ) Net Operating Loss 105,384 - Charitable Contribution 1,413 - Total deferred tax assets $ 402,137 $ 189,450 Non current deferred tax liabilities: Tax over Book Depreciation and Amortization $ (276,053 ) $ (273,137 ) Total deferred tax liabilities – noncurrent $ (276,053 ) $ (273,137 ) Net deferred tax asset (liability) $ 126,084 $ (83,687 ) |
BUSINESS SEGMENT DATA (Tables)
BUSINESS SEGMENT DATA (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Net Sales [Member] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | The Company’s operations are conducted through two business segments. These segments, and the primary operations of each, are as follows: BUSINESS SEGMENT OPERATION Candied Fruit Production of candied fruit, a basic fruitcake ingredient, sold to manufacturing bakers, institutional users, and retailers for use in home baking. Also, based on market conditions, the processing of frozen strawberry products, for sale to commercial and institutional users such as preservers, dairies, drink manufacturers, etc. Molded Plastics Production of plastics containers and other molded plastics for sale to various food processors and others. YEAR ENDED YEAR ENDED 2018 2017 NET SALES IN EACH SEGMENT Candied Fruit: Sales to Unaffiliated Customers $ 14,954,061 $ 16,566,096 Molded Plastics: Sales to Unaffiliated Customers 5,180,937 4,952,396 Net Sales $ 20,134,998 $ 21,518,492 |
Operating Profit [Member] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | YEAR ENDED YEAR ENDED 2018 2017 THE OPERATING PROFIT OF EACH SEGMENT IS LISTED BELOW Candied Fruit $ 2,869,091 $ 4,148,227 Molded Plastics 396,430 247,972 Operating Profit of Segments 3,265,521 4,396,199 General Corporate Expenses, Net (3,916,150 ) (3,905,263 ) General Corporate Depreciation and Amortization Expense (57,460 ) (40,801 ) Other (Expense) Income (9,435 ) 8,493 (Loss) Income Before Provision for Income Taxes $ (717,524 ) $ 458,628 |
Identifiable Assets [Member] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | YEAR ENDED YEAR ENDED 2018 2017 Identifiable Assets of Each Segment are Listed Below: Candied Fruit $ 11,224,415 $ 11,078,549 Molded Plastics 3,807,342 4,231,007 Identifiable Assets 15,031,757 15,309,556 General Corporate Assets 9,751,985 10,222,173 Total Assets $ 24,783,742 $ 25,531,729 |
Depreciation And Amortization Expense [Member] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | YEAR ENDED YEAR ENDED 2018 2017 Depreciation and Amortization Expense of Each Segment are Listed Below: Candied Fruit $ 216,210 $ 216,607 Molded Plastics 154,456 157,973 Segment Depreciation and Amortization Expense 370,666 374,580 General Corporate Depreciation and Amortization Expense 57,460 40,801 Total Depreciation and Amortization Expense $ 428,126 $ 415,381 |
Capital Expenditures [Member] | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | YEAR ENDED YEAR ENDED 2018 2017 Capital Expenditures of Each Segment are Listed Below: Candied Fruit $ 231,504 $ 492,425 Molded Plastics 24,294 41,757 Segment Capital Expenditures 255,798 534,182 General Corporate Capital Expenditures 77,829 10,290 Total Capital Expenditures $ 333,627 $ 544,472 |
SIGNIFICANT ACCOUNTING POLICI_3
SIGNIFICANT ACCOUNTING POLICIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | $ 413,280 | $ 413,280 |
Cost of Goods and Services Sold | 16,869,477 | 17,122,293 |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 25,271 | $ 26,630 |
Weighted Average Number of Shares Outstanding, Basic | 519,600 | 519,600 |
Percentage of Uncertain income taxes position of tax expenses | 50.00% | |
Cargo and Freight [Member] | ||
Cost of Goods and Services Sold | $ 617,218 | $ 590,107 |
Minimum [Member] | ||
Property, Plant and Equipment, Estimated Useful Lives | 3 years | |
Maximum [Member] | ||
Property, Plant and Equipment, Estimated Useful Lives | 40 years |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Supplies | $ 203,562 | $ 194,346 |
Raw Materials | 6,509,732 | 5,855,658 |
Work in Progress | 885,655 | 1,077,718 |
Finished Goods | 1,732,584 | 2,400,924 |
Total | $ 9,331,533 | $ 9,528,646 |
INVENTORIES (Details Textual)
INVENTORIES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Estimated Returns In Finished Goods Inventory | $ 746,985 | $ 1,175,925 |
PROPERTY, PLANT AND EQUIPMENT_2
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Land and Improvements | $ 656,040 | $ 656,040 |
Buildings and Improvements | 7,921,697 | 7,944,723 |
Machinery and Equipment | 13,502,773 | 13,289,669 |
Vehicles | 767,615 | 705,189 |
Furniture and Fixtures | 734,254 | 721,511 |
Total | 23,582,379 | 23,317,132 |
Less: Accumulated Depreciation | 19,455,531 | 19,045,405 |
Net | $ 4,126,848 | $ 4,271,727 |
PROPERTY, PLANT AND EQUIPMENT_3
PROPERTY, PLANT AND EQUIPMENT (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation | $ 410,126 | $ 409,381 |
SHORT-TERM DEBT (Details)
SHORT-TERM DEBT (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Short-term Debt [Line Items] | ||
Short-term Debt | $ 284,016 | $ 541,572 |
Revolving Credit Facility [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 284,016 | $ 541,572 |
SHORT-TERM DEBT (Details Textua
SHORT-TERM DEBT (Details Textual) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Jul. 31, 2017 | |
Debt Instrument, Interest Rate Terms | LIBOR plus 1.75% | ||
Revolving Loan Agreement Borrowing Limit Description | a borrowing limit of 80% of the Company’s eligible receivables plus the lessor of $6,000,000 or 50% of the Company’s eligible inventory from January 1 to May 31 and 60% from June 1 to December 31 of each year. | ||
Amortization of Debt Issuance Costs | $ 18,000 | $ 6,000 | |
Revolving Credit Facility [Member] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 12,000,000 | ||
Line of Credit Facility, Current Borrowing Capacity | $ 1,750,000 |
OPERATING LEASES (Details)
OPERATING LEASES (Details) | Dec. 31, 2018USD ($) |
2019 | $ 34,950 |
2020 | 12,846 |
2021 | 980 |
Total Minimum Lease Payments | $ 48,776 |
OPERATING LEASES (Details Textu
OPERATING LEASES (Details Textual) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Operating Leases, Rent Expense | $ 72,687 | $ 79,457 |
ACCRUED EXPENSES (Details)
ACCRUED EXPENSES (Details) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Schedule Of Accrued Expenses [Line Items] | ||
Accrued Payroll | $ 222,042 | $ 196,558 |
Accrued Brokerage Payable | 210,040 | 181,900 |
Coupon Reimbursement | 56,166 | 41,325 |
Total | $ 488,248 | $ 419,783 |
PROVISION FOR FEDERAL AND STA_3
PROVISION FOR FEDERAL AND STATE INCOME TAXES (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Current: | ||
Federal Taxes | $ 106,157 | $ 168,909 |
State Taxes | 0 | 17,701 |
Current Provision | 106,157 | 186,610 |
Deferred: | ||
Federal Taxes | (166,234) | (38,667) |
State Taxes | (43,537) | (4,128) |
Deferred Provision | (209,771) | (42,795) |
Total Provision (Benefit) | $ (103,614) | $ 143,815 |
PROVISION FOR FEDERAL AND STA_4
PROVISION FOR FEDERAL AND STATE INCOME TAXES (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Statutory tax | $ (150,680) | $ 155,934 |
State income tax, net of federal tax | (39,464) | 16,648 |
Nondeductible expenses | 60,342 | 6,390 |
Change in deferred taxes due to enacted changes in tax law | 0 | (35,148) |
Other | 26,188 | (9) |
Total Provision (Benefit) | $ (103,614) | $ 143,815 |
PROVISION FOR FEDERAL AND STA_5
PROVISION FOR FEDERAL AND STATE INCOME TAXES (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Current deferred tax assets (liabilities): | ||
Allowance for Sales Returns and Related Provision for Return of Finished Goods | $ 67,268 | $ 103,523 |
Inventory Valuation | 277,475 | 184,580 |
Prepaid Expenses | (49,403) | (98,653) |
Net Operating Loss | 105,384 | 0 |
Charitable Contribution | 1,413 | 0 |
Total deferred tax assets | 402,137 | 189,450 |
Non current deferred tax liabilities: | ||
Tax over Book Depreciation and Amortization | (276,053) | (273,137) |
Total deferred tax liabilities - noncurrent | (276,053) | (273,137) |
Net deferred tax asset | $ 126,084 | |
Net deferred tax liability | $ (83,687) |
BUSINESS SEGMENT DATA (Details)
BUSINESS SEGMENT DATA (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combination Segment Allocation [Line Items] | ||
Sales to Unaffiliated Customers | $ 20,134,998 | $ 21,518,492 |
Candied Fruit [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Sales to Unaffiliated Customers | 14,954,061 | 16,566,096 |
Molded Plastics [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Sales to Unaffiliated Customers | $ 5,180,937 | $ 4,952,396 |
BUSINESS SEGMENT DATA (Details
BUSINESS SEGMENT DATA (Details 1) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combination Segment Allocation [Line Items] | ||
Operating Profit of Segments | $ 3,265,521 | $ 4,396,199 |
General Corporate Expenses, Net | (3,916,150) | (3,905,263) |
General Corporate Depreciation and Amortization Expense | (57,460) | (40,801) |
Other (Expense) Income | (9,435) | 8,493 |
(Loss) Income Before Provision for Income Taxes | (717,524) | 458,628 |
Candied Fruit [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Operating Profit of Segments | 2,869,091 | 4,148,227 |
Molded Plastics [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Operating Profit of Segments | $ 396,430 | $ 247,972 |
BUSINESS SEGMENT DATA (Detail_2
BUSINESS SEGMENT DATA (Details 2) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combination Segment Allocation [Line Items] | ||
Total Assets | $ 24,783,742 | $ 25,531,729 |
Candied Fruit [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Total Assets | 11,224,415 | 11,078,549 |
Molded Plastics [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Total Assets | 3,807,342 | 4,231,007 |
Identifiable Assets [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Total Assets | 15,031,757 | 15,309,556 |
General Corporate Assets [Member] | ||
Business Combination Segment Allocation [Line Items] | ||
Total Assets | $ 9,751,985 | $ 10,222,173 |
BUSINESS SEGMENT DATA (Detail_3
BUSINESS SEGMENT DATA (Details 3) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Depreciation and Amortization Expense of Each Segment are Listed Below: | ||
Segment Depreciation and Amortization Expense | $ 370,666 | $ 374,580 |
General Corporate Depreciation and Amortization Expense | 57,460 | 40,801 |
Total Depreciation and Amortization Expense | 428,126 | 415,381 |
Candied Fruit [Member] | ||
Depreciation and Amortization Expense of Each Segment are Listed Below: | ||
Segment Depreciation and Amortization Expense | 216,210 | 216,607 |
Molded Plastics [Member] | ||
Depreciation and Amortization Expense of Each Segment are Listed Below: | ||
Segment Depreciation and Amortization Expense | $ 154,456 | $ 157,973 |
BUSINESS SEGMENT DATA (Detail_4
BUSINESS SEGMENT DATA (Details 4) - USD ($) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Capital Expenditures of Each Segment are Listed Below: | ||
Segment Capital Expenditures | $ 255,798 | $ 534,182 |
General Corporate Capital Expenditures | 77,829 | 10,290 |
Total Capital Expenditures | 333,627 | 544,472 |
Candied Fruit [Member] | ||
Capital Expenditures of Each Segment are Listed Below: | ||
Segment Capital Expenditures | 231,504 | 492,425 |
Molded Plastics [Member] | ||
Capital Expenditures of Each Segment are Listed Below: | ||
Segment Capital Expenditures | $ 24,294 | $ 41,757 |
BUSINESS SEGMENT DATA (Detail_5
BUSINESS SEGMENT DATA (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combination Segment Allocation [Line Items] | ||
Goodwill | $ 413,280 | $ 413,280 |
MAJOR CUSTOMERS (Details Textua
MAJOR CUSTOMERS (Details Textual) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
WalMart Stores [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 17.00% |
Entity Wide Accounts Receivable Major Customer Percentage | 62.00% | 63.00% |
Aqua Cal [Member] | ||
Revenue, Major Customer [Line Items] | ||
Concentration Risk, Percentage | 12.00% | 10.00% |
Entity Wide Accounts Receivable Major Customer Percentage | 8.00% | 9.00% |
MAJOR VENDORS (Details Textual)
MAJOR VENDORS (Details Textual) | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Cost of Goods, Total [Member] | ||
Major Vendor [Line Items] | ||
Concentration Risk, Percentage | 53.00% | 35.00% |
Total Accounts Payable [Member] | ||
Major Vendor [Line Items] | ||
Concentration Risk, Percentage | 32.00% | 10.00% |
CONCENTRATION OF CREDIT RISK (D
CONCENTRATION OF CREDIT RISK (Details Textual) - USD ($) | Dec. 31, 2018 | Dec. 31, 2017 |
Ceded Credit Risk [Line Items] | ||
Cash, Uninsured Amount | $ 7,639,000 | $ 8,188,000 |