Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 03, 2014 | |
Document Information [Line Items] | ' | ' |
Entity Registrant Name | 'RELIV INTERNATIONAL INC | ' |
Entity Central Index Key | '0000768710 | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Trading Symbol | 'RELV | ' |
Entity Common Stock, Shares Outstanding | ' | 12,665,632 |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Condensed_Consolidated_Balance
Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Current assets: | ' | ' |
Cash and cash equivalents | $5,178,599 | $6,656,798 |
Accounts receivable, less allowances of $28,100 in 2014 and $31,800 in 2013 | 156,507 | 148,630 |
Accounts and note due from employees and distributors | 217,973 | 129,852 |
Inventories | ' | ' |
Finished goods | 3,359,311 | 3,516,079 |
Raw materials | 1,551,057 | 1,501,522 |
Sales aids and promotional materials | 194,739 | 197,089 |
Total inventories | 5,105,107 | 5,214,690 |
Refundable income taxes | 234,294 | 0 |
Prepaid expenses and other current assets | 883,908 | 697,099 |
Deferred income taxes | 100,000 | 309,000 |
Total current assets | 11,876,388 | 13,156,069 |
Other assets | 525,272 | 277,770 |
Cash surrender value of life insurance | 2,722,260 | 2,403,763 |
Note receivable due from distributor | 1,757,739 | 1,829,827 |
Intangible assets, net | 2,993,307 | 3,195,903 |
Property, plant and equipment: | ' | ' |
Land and land improvements | 883,563 | 883,563 |
Building | 9,970,590 | 9,945,187 |
Machinery & equipment | 4,025,036 | 3,785,949 |
Office equipment | 1,244,044 | 1,236,303 |
Computer equipment & software | 2,562,178 | 2,690,294 |
Property, plant, and equipment | 18,685,411 | 18,541,296 |
Less: Accumulated depreciation | 11,981,517 | 11,805,877 |
Net property, plant and equipment | 6,703,894 | 6,735,419 |
Total assets | 26,578,860 | 27,598,751 |
Accounts payable and accrued expenses: | ' | ' |
Trade accounts payable and other accrued expenses | 2,957,227 | 2,968,814 |
Distributors' commissions payable | 1,693,946 | 2,033,727 |
Sales taxes payable | 248,914 | 311,049 |
Payroll, payroll taxes, and incentive compensation payable | 1,036,213 | 555,193 |
Total accounts payable and accrued expenses | 5,936,300 | 5,868,783 |
Income taxes payable | 0 | 199,558 |
Current maturities of long-term debt | 697,423 | 581,004 |
Total current liabilities | 6,633,723 | 6,649,345 |
Noncurrent liabilities: | ' | ' |
Revolving line of credit | 500,000 | 1,150,000 |
Long-term debt, less current maturities | 3,168,159 | 2,631,607 |
Deferred income taxes | 0 | 127,000 |
Other noncurrent liabilities | 401,277 | 910,327 |
Total noncurrent liabilities | 4,069,436 | 4,818,934 |
Stockholders' equity: | ' | ' |
Preferred stock, par value $.001 per share; 3,000,000 shares authorized; -0- shares issued and outstanding in 2014 and 2013 | 0 | 0 |
Common stock, par value $.001 per share; 30,000,000 authorized; 14,519,605 shares issued and 12,665,632 shares outstanding as of 9/30/2014; 14,519,605 shares issued and 12,665,632 shares outstanding as of 12/31/2013 | 14,520 | 14,520 |
Additional paid-in capital | 30,137,246 | 30,101,069 |
Accumulated deficit | -8,432,918 | -8,159,164 |
Accumulated other comprehensive loss: | ' | ' |
Foreign currency translation adjustment | -504,587 | -487,393 |
Treasury stock | -5,338,560 | -5,338,560 |
Total stockholders' equity | 15,875,701 | 16,130,472 |
Total liabilities and stockholders' equity | $26,578,860 | $27,598,751 |
Condensed_Consolidated_Balance1
Condensed Consolidated Balance Sheets [Parenthetical] (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Allowance for accounts receivable (in dollars) | $28,100 | $31,800 |
Preferred stock, par value (in dollars per share) | $0.00 | $0.00 |
Preferred stock, shares authorized | 3,000,000 | 3,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $0.00 | $0.00 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares, issued | 14,519,605 | 14,519,605 |
Common stock, shares, outstanding | 12,665,632 | 12,665,632 |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Net Income (Loss) and Comprehensive Income (Loss) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Product sales | $13,206,275 | $15,241,597 | $39,867,425 | $46,296,517 |
Handling & freight income | 1,108,006 | 1,297,867 | 3,387,322 | 4,525,618 |
Net sales | 14,314,281 | 16,539,464 | 43,254,747 | 50,822,135 |
Costs and expenses: | ' | ' | ' | ' |
Cost of products sold | 2,968,139 | 3,529,027 | 8,855,401 | 10,490,825 |
Distributor royalties and commissions | 4,985,450 | 5,974,652 | 15,425,704 | 18,595,100 |
Selling, general and administrative | 6,133,040 | 6,633,771 | 19,390,732 | 21,121,858 |
Total costs and expenses | 14,086,629 | 16,137,450 | 43,671,837 | 50,207,783 |
Income (loss) from operations | 227,652 | 402,014 | -417,090 | 614,352 |
Other income (expense): | ' | ' | ' | ' |
Interest income | 31,736 | 37,240 | 100,008 | 113,072 |
Interest expense | -26,054 | -22,187 | -75,689 | -58,182 |
Other income / (expense) | -60,372 | 28,637 | -53,983 | -62,482 |
Income (loss) before income taxes | 172,962 | 445,704 | -446,754 | 606,760 |
Provision (benefit) for income taxes | 7,000 | 153,000 | -173,000 | 333,000 |
Net income (loss) | 165,962 | 292,704 | -273,754 | 273,760 |
Other comprehensive income (loss): | ' | ' | ' | ' |
Foreign currency translation adjustment | -57,101 | 30,674 | -17,194 | -35,043 |
Comprehensive income (loss) | $108,861 | $323,378 | ($290,948) | $238,717 |
Earnings (loss) per common share - Basic (in dollars per share) | $0.01 | $0.02 | ($0.02) | $0.02 |
Weighted average shares (in shares) | 12,666,000 | 12,616,000 | 12,666,000 | 12,617,000 |
Earnings (loss) per common share - Diluted (in dollars per share) | $0.01 | $0.02 | ($0.02) | $0.02 |
Weighted average shares (in shares) | 12,750,000 | 12,842,000 | 12,666,000 | 12,785,000 |
Cash dividends declared per common share (in dollars per share) | $0 | $0.02 | $0 | $0.02 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Operating activities: | ' | ' |
Net income (loss) | ($273,754) | $273,760 |
Adjustments to reconcile net income (loss) to net cash (used in) provided by operating activities: | ' | ' |
Depreciation and amortization | 725,584 | 678,689 |
Stock-based compensation | 36,178 | 32,271 |
Deferred income taxes | -142,000 | 52,371 |
Foreign currency transaction (gain)/loss | 56,195 | 51,867 |
(Increase) decrease in accounts receivable and accounts due from employees and distributors | -96,078 | -31,966 |
(Increase) decrease in inventories | 79,760 | 135,445 |
(Increase) decrease in refundable income taxes | -234,219 | -23,501 |
(Increase) decrease in prepaid expenses and other current assets | -190,337 | -325,147 |
(Increase) decrease in other assets | -11,501 | -30,071 |
Increase (decrease) in income taxes payable | -199,558 | 0 |
Increase (decrease) in accounts payable & accrued expenses and other noncurrent liabilities | -403,554 | 485,710 |
Net cash (used in) provided by operating activities | -653,284 | 1,299,428 |
Investing activities: | ' | ' |
Proceeds from the sale of property, plant and equipment | 1,200 | 0 |
Purchase of property, plant and equipment | -511,227 | -303,290 |
Payments received on distributor note receivable | 67,900 | 56,990 |
Acquisition of lunasin technology license | 0 | -1,150,000 |
Payment of life insurance premiums | -318,498 | -259,726 |
Net cash used in investing activities | -760,625 | -1,656,026 |
Financing activities: | ' | ' |
Proceeds from line of credit borrowings | 500,000 | 1,150,000 |
Principal payments on long-term borrowings | -508,899 | -527,591 |
Common stock dividends paid | 0 | -252,380 |
Proceeds from options and warrants exercised | 0 | 579 |
Purchase of stock for treasury | 0 | -5,364 |
Net cash (used in) provided by financing activities | -8,899 | 365,244 |
Effect of exchange rate changes on cash and cash equivalents | -55,391 | -65,495 |
Increase (decrease) in cash and cash equivalents | -1,478,199 | -56,849 |
Cash and cash equivalents at beginning of period | 6,656,798 | 5,801,042 |
Cash and cash equivalents at end of period | $5,178,599 | $5,744,193 |
Accounting_Policies
Accounting Policies | 9 Months Ended | ||
Sep. 30, 2014 | |||
Accounting Policies [Abstract] | ' | ||
Business Description and Accounting Policies [Text Block] | ' | ||
Note 1-- | Accounting Policies | ||
Basis of Presentation | |||
The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the instructions to Form 10-Q and reflect all adjustments (which primarily include normal recurring accruals) which management believes are necessary to present fairly the financial position, results of operations and cash flows. These statements, however, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. Interim results may not necessarily be indicative of results that may be expected for any other interim period or for the year as a whole. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the annual report on Form 10-K for the year ended December 31, 2013, filed March 25, 2014 with the Securities and Exchange Commission. | |||
Basic_and_Diluted_Earnings_Los
Basic and Diluted Earnings (Loss) per Share | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Earnings Per Share [Text Block] | ' | |||||||||||||
Note 2-- | Basic and Diluted Earnings (Loss) per Share | |||||||||||||
Basic earnings (loss) per common share is computed using the weighted average number of common shares outstanding during the period. Diluted earnings (loss) per share is computed using the weighted average number of common shares and potential dilutive common shares that were outstanding during the period. Potential dilutive common shares consist of outstanding stock options, outstanding stock warrants, and convertible preferred stock. | ||||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share: | ||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | 165,962 | $ | 292,704 | $ | -273,754 | $ | 273,760 | ||||||
Denominator: | ||||||||||||||
Denominator for basic earnings (loss) per share--weighted average shares | 12,666,000 | 12,616,000 | 12,666,000 | 12,617,000 | ||||||||||
Dilutive effect of employee stock options and other warrants | 84,000 | 226,000 | - | 168,000 | ||||||||||
Denominator for diluted earnings (loss) per share--adjusted weighted average shares | 12,750,000 | 12,842,000 | 12,666,000 | 12,785,000 | ||||||||||
Basic earnings (loss) per share | $ | 0.01 | $ | 0.02 | $ | -0.02 | $ | 0.02 | ||||||
Diluted earnings (loss) per share | $ | 0.01 | $ | 0.02 | $ | -0.02 | $ | 0.02 | ||||||
Option and warrants to purchase 1,087,333 shares and 1,075,565 shares of common stock for the three months and nine months ended September 30, 2014, respectively, were not included in the denominator for diluted earnings (loss) per share because their effect would be antidilutive or because the shares were deemed contingently issuable. Options and warrants to purchase 1,103,500 shares and 1,117,161 shares of common stock for the three months and nine months ended September 30, 2013 were not included in the denominator for diluted earnings (loss) per share because their effect would be antidilutive or because the shares were deemed contingently issuable. | ||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value Disclosures [Text Block] | ' | ||||||||||||||||
Note 3 -- | Fair Value of Financial Instruments | ||||||||||||||||
Fair value can be measured using valuation techniques such as the market approach (comparable market prices), the income approach (present value of future income or cash flow), and the cost approach (cost to replace the service capacity of an asset or replacement cost). Accounting standards utilize a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value into three broad levels. The following is a brief description of those levels: | |||||||||||||||||
Level 1: | Observable inputs such as quoted prices (unadjusted) in active markets for identical assets or liabilities. | ||||||||||||||||
Level 2: | Inputs other than quoted prices that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets or similar assets or liabilities in markets that are not active. | ||||||||||||||||
Level 3: | Unobservable inputs that reflect the reporting entity's own assumptions. | ||||||||||||||||
The carrying amount and fair value of the Company's financial instruments are approximately as follows: | |||||||||||||||||
Description | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
30-Sep-14 | |||||||||||||||||
Long-term debt | $ | 4,365,582 | $ | 4,365,582 | - | $ | 4,365,582 | - | |||||||||
Note receivable | 1,853,146 | 2,269,000 | - | 2,269,000 | - | ||||||||||||
Marketable securities | 276,600 | 276,600 | $ | 276,600 | - | - | |||||||||||
31-Dec-13 | |||||||||||||||||
Long-term debt | $ | 4,362,611 | $ | 4,362,611 | - | $ | 4,362,611 | - | |||||||||
Note receivable | 1,921,046 | 2,365,000 | - | 2,365,000 | - | ||||||||||||
Marketable securities | 278,000 | 278,000 | $ | 278,000 | - | - | |||||||||||
Long-term debt: The fair value of the Company's term and revolver loans approximate carrying value as these loans have variable market-based interest rates which reset every thirty days. The fair value of the Company's obligation for the acquisition of its lunasin technology license approximates carrying value as this obligation is a zero-interest based obligation discounted utilizing an interest rate factor comparable to the Company's market-based interest rate for its term and revolver loans. | |||||||||||||||||
Note receivable: The Company's note receivable is a variable rate residential mortgage-based financial instrument. An average of published interest rate quotes for a fifteen-year residential jumbo mortgage, a comparable financial instrument, was used to estimate fair value of this note receivable under a discounted cash flow model. | |||||||||||||||||
Marketable securities: The assets (trading securities) of the Company's Supplemental Executive Retirement Plan are recorded at fair value on a recurring basis, and are presented within Other Assets in the consolidated balance sheets. | |||||||||||||||||
The carrying value of other financial instruments, including cash, accounts receivable and accounts payable, and accrued liabilities approximate fair value due to their short maturities or variable-rate nature of their respective balances. | |||||||||||||||||
Debt
Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-term Debt [Text Block] | ' | |||||||
Note 4 -- | Debt | |||||||
September 30 | December 31 | |||||||
2014 | 2013 | |||||||
Term loan | $ | 3,191,798 | $ | 2,400,697 | ||||
Revolving line of credit | 500,000 | 1,150,000 | ||||||
Obligation for acquisition of technology license, net | 673,784 | 811,914 | ||||||
4,365,582 | 4,362,611 | |||||||
Less current maturities | 697,423 | 581,004 | ||||||
Total long-term debt | $ | 3,668,159 | $ | 3,781,607 | ||||
Principal maturities of debt at September 30, 2014 are as follows: | ||||||||
Twelve months ending September 30, | ||||||||
2015 | $ | 697,423 | ||||||
2016 | 3,444,375 | |||||||
2017 | 223,784 | |||||||
2018 | - | |||||||
2019 | - | |||||||
Thereafter | - | |||||||
$ | 4,365,582 | |||||||
On February 28, 2014, the Company and its primary lender amended and re-stated the revolving line of credit agreement and the term loan agreement (collectively, "Credit Agreement"). As part of this new Credit Agreement, the $5 million revolving line of credit agreement was extended to July 1, 2016 and the outstanding revolving loan balance of $1.15 million was re-financed into the term loan balance. Borrowings, if any, under the new revolver accrue interest at a floating interest rate based on the 30-day LIBOR plus 1.85%. | ||||||||
In September 2014, the Company borrowed $500,000 under its revolving line of credit to finance the purchase of machinery and equipment. At September 30, 2014, the revolver's interest rate was 2.007%. | ||||||||
The February 2014 re-financed term loan is for a period of twenty-eight months with interest accruing at a floating interest rate based on the 30-day LIBOR plus 2%. The total February 2014 borrowing on the re-financed term loan consisted of the outstanding balance of the previous term loan plus the February 28, 2014 revolving line of credit balance of $1.15 million. Monthly term loan payments consist of principal of $41,452 plus interest with a balloon payment for the outstanding balance due and payable on July 1, 2016. At September 30, 2014, the term loan's interest rate was 2.157%. | ||||||||
The Credit Agreement is secured by all tangible and intangible assets of the Company and also by a mortgage on the real estate of the Company's headquarters. The Credit Agreement also includes loan covenants requiring the Company to maintain net tangible worth of not less than $11 million, and a fixed charge coverage ratio under which EBITDA adjusted for certain non-cash expenses shall exceed fixed charges by a ratio of at least 1.15 to 1. Fixed charges, as defined, include unfinanced capital expenditures, dividends and other distributions, cash taxes paid, and principal and interest due on all debt obligations. At September 30, 2014, the Company's computed fixed charge coverage ratio is less than the loan covenant's minimum ratio of 1.15 to 1. On October 29, 2014, the Company and its primary lender agreed to amend the Credit Agreement whereby the primary lender has waived the Company's non-compliance with the fixed charge coverage ratio for the September 30, 2014 reporting period. | ||||||||
In addition to the aforementioned loan covenant waiver, the October 29th amendment restricts the Company from the declaration and cash payment of common stock dividends and the repurchase of company common stock. The amendment also revises the revolving line of credit agreement's maximum borrowing limit from $5 million to $3.5 million. At September 30, 2014, as adjusted for the October 29th amendment, $3 million remains available for additional borrowings under the revolving line of credit. | ||||||||
LongTerm_Incentive_Compensatio
Long-Term Incentive Compensation Plan | 9 Months Ended | ||
Sep. 30, 2014 | |||
Compensation Related Costs [Abstract] | ' | ||
Compensation Related Costs, General [Text Block] | ' | ||
Note 5 -- | Long-Term Incentive Compensation Plan | ||
In July 2010, the Company’s Reliv Europe subsidiary entered into a long-term performance-based incentive compensation agreement with the subsidiary’s senior managers. The valuation of the compensation agreement is an EBITDA-based formula derived from the subsidiary’s financial performance and vests in 20% annual increments which began in April 2011. The amount of the incentive, if any, varies in accordance with a 24-month look-back of the subsidiary’s financial performance and the vesting provisions. Upon initial vesting, a manager may elect to exercise his/her put option to receive in cash some or all of his/her respective share of the incentive. For the three months and nine months ended September 30, 2014, compensation expense associated with this incentive plan was $54,000 and $186,700, respectively. For the three months and nine months ended September 30, 2013, compensation expense was $66,000 and $266,500, respectively. This compensation expense is presented in Selling, General and Administrative in the accompanying condensed consolidated statements of net income (loss) and comprehensive income (loss). At December 31, 2013, accrued compensation was $529,000 and was included in "Other Non-Current Liabilities" in the accompanying condensed consolidated balance sheets. | |||
Beginning April 2015, the Company may exercise a call option on one or more of the manager's incentive amount; redeeming such amount in cash or a combination of cash and the Company's common stock, depending upon the amount of the vested incentive. At September 30, 2014, it is management's estimate that it will exercise within one year the Company's call option for all of the vested incentive balance at time of exercise. Accordingly, the September 30, 2014 accrued compensation of $715,700 was presented in "Payroll, Payroll Taxes, and Incentive Compensation Payable" in the accompanying condensed consolidated balance sheets. | |||
Taxes
Taxes | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Income Tax Disclosure [Text Block] | ' | |||||||
Note 6 -- | Taxes | |||||||
The interim financial statement provision for income taxes (benefit) is different from the amounts computed by applying the United States federal statutory income tax rate of 34%. In summary, the reasons for these differences are as follows: | ||||||||
Nine months ended September 30 | ||||||||
2014 | 2013 | |||||||
Income taxes (benefit) at U.S. statutory rate | $ | -152,000 | $ | 206,000 | ||||
State income taxes, net of federal benefit | 25,000 | 60,000 | ||||||
Higher / (lower) effective taxes on earnings/losses in certain foreign countries | -6,000 | 77,000 | ||||||
Foreign corporate income taxes | 8,000 | 30,000 | ||||||
Other, net | -48,000 | -40,000 | ||||||
$ | -173,000 | $ | 333,000 | |||||
One of the company's foreign subsidiaries is presently under local country audit for alleged deficiencies (totaling approximately $800,000 plus interest at 20% per annum) in value-added tax (VAT) and withholding tax for the years 2004 through 2006. The Company, in consultation with its legal counsel, believes that there are strong legal grounds that it is not liable to pay the majority of the alleged tax deficiencies. As of December 31, 2010, management estimated and reserved approximately $185,000 in taxes and interest for resolution of this matter and recorded this amount within Selling, General, and Administrative expense in the 2010 Consolidated Statement of Income. In 2011, the Company made good faith deposits to the local tax authority under the tax agency's administrative judicial resolution process. As of September 30, 2014 and December 31, 2013, management's estimated reserve (net of deposits) for this matter is approximately $115,000 and $95,000, respectively. There has been no change in this matter during the first nine months of 2014. | ||||||||
Recent_Accounting_Standard_Pen
Recent Accounting Standard Pending Adoption | 9 Months Ended | ||
Sep. 30, 2014 | |||
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | ' | ||
Recent Accounting Standards Pending Adoption [Text Block] | ' | ||
Note 7-- | Recent Accounting Standard Pending Adoption | ||
In May 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard will become effective for the Company on January 1, 2017. Early application is not permitted and the new standard permits the use of either the retrospective and modified retrospective transition method. The Company is currently evaluating the effect, if any, that the updated standard will have on its consolidated financial statements and related disclosures, as well its planned transition method. | |||
In August 2014, the FASB issued ASU No. 2014-15, Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern, which requires management to assess, at each annual and interim reporting period, the entity's ability to continue as a going concern within one year from the date the financial statements are issued and provide related disclosures. The new standard will be effective for the company for the annual reporting period ending December 31, 2016, with early adoption permitted. This standard is not currently expected to have a material effect on the Company's financial statement disclosures upon adoption, though the ultimate impact will be dependent on the Company's financial condition and expected operating outlook at such time. | |||
Accounting_Policies_Policies
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Accounting Policies [Abstract] | ' |
Basis of Accounting, Policy [Policy Text Block] | ' |
Basis of Presentation | |
The accompanying unaudited condensed consolidated financial statements and notes thereto have been prepared in accordance with the instructions to Form 10-Q and reflect all adjustments (which primarily include normal recurring accruals) which management believes are necessary to present fairly the financial position, results of operations and cash flows. These statements, however, do not include all information and footnotes necessary for a complete presentation of financial position, results of operations and cash flows in conformity with accounting principles generally accepted in the United States. Interim results may not necessarily be indicative of results that may be expected for any other interim period or for the year as a whole. These financial statements should be read in conjunction with the audited consolidated financial statements and footnotes included in the annual report on Form 10-K for the year ended December 31, 2013, filed March 25, 2014 with the Securities and Exchange Commission. | |
Basic_and_Diluted_Earnings_Los1
Basic and Diluted Earnings (Loss) per Share (Tables) | 9 Months Ended | |||||||||||||
Sep. 30, 2014 | ||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||
Schedule of Calculation of Numerator and Denominator in Earnings Per Share [Table Text Block] | ' | |||||||||||||
The following table sets forth the computation of basic and diluted earnings (loss) per share: | ||||||||||||||
Three months ended September 30 | Nine months ended September 30 | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||
Numerator: | ||||||||||||||
Net income (loss) | $ | 165,962 | $ | 292,704 | $ | -273,754 | $ | 273,760 | ||||||
Denominator: | ||||||||||||||
Denominator for basic earnings (loss) per share--weighted average shares | 12,666,000 | 12,616,000 | 12,666,000 | 12,617,000 | ||||||||||
Dilutive effect of employee stock options and other warrants | 84,000 | 226,000 | - | 168,000 | ||||||||||
Denominator for diluted earnings (loss) per share--adjusted weighted average shares | 12,750,000 | 12,842,000 | 12,666,000 | 12,785,000 | ||||||||||
Basic earnings (loss) per share | $ | 0.01 | $ | 0.02 | $ | -0.02 | $ | 0.02 | ||||||
Diluted earnings (loss) per share | $ | 0.01 | $ | 0.02 | $ | -0.02 | $ | 0.02 | ||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||
Fair Value, by Balance Sheet Grouping [Table Text Block] | ' | ||||||||||||||||
The carrying amount and fair value of the Company's financial instruments are approximately as follows: | |||||||||||||||||
Description | Carrying Value | Fair Value | Level 1 | Level 2 | Level 3 | ||||||||||||
30-Sep-14 | |||||||||||||||||
Long-term debt | $ | 4,365,582 | $ | 4,365,582 | - | $ | 4,365,582 | - | |||||||||
Note receivable | 1,853,146 | 2,269,000 | - | 2,269,000 | - | ||||||||||||
Marketable securities | 276,600 | 276,600 | $ | 276,600 | - | - | |||||||||||
31-Dec-13 | |||||||||||||||||
Long-term debt | $ | 4,362,611 | $ | 4,362,611 | - | $ | 4,362,611 | - | |||||||||
Note receivable | 1,921,046 | 2,365,000 | - | 2,365,000 | - | ||||||||||||
Marketable securities | 278,000 | 278,000 | $ | 278,000 | - | - | |||||||||||
Debt_Tables
Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt Instruments [Table Text Block] | ' | |||||||
September 30 | December 31 | |||||||
2014 | 2013 | |||||||
Term loan | $ | 3,191,798 | $ | 2,400,697 | ||||
Revolving line of credit | 500,000 | 1,150,000 | ||||||
Obligation for acquisition of technology license, net | 673,784 | 811,914 | ||||||
4,365,582 | 4,362,611 | |||||||
Less current maturities | 697,423 | 581,004 | ||||||
Total long-term debt | $ | 3,668,159 | $ | 3,781,607 | ||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | |||||||
Principal maturities of debt at September 30, 2014 are as follows: | ||||||||
Twelve months ending September 30, | ||||||||
2015 | $ | 697,423 | ||||||
2016 | 3,444,375 | |||||||
2017 | 223,784 | |||||||
2018 | - | |||||||
2019 | - | |||||||
Thereafter | - | |||||||
$ | 4,365,582 | |||||||
Taxes_Tables
Taxes (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Income Tax Disclosure [Abstract] | ' | |||||||
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | ' | |||||||
In summary, the reasons for these differences are as follows: | ||||||||
Nine months ended September 30 | ||||||||
2014 | 2013 | |||||||
Income taxes (benefit) at U.S. statutory rate | $ | -152,000 | $ | 206,000 | ||||
State income taxes, net of federal benefit | 25,000 | 60,000 | ||||||
Higher / (lower) effective taxes on earnings/losses in certain foreign countries | -6,000 | 77,000 | ||||||
Foreign corporate income taxes | 8,000 | 30,000 | ||||||
Other, net | -48,000 | -40,000 | ||||||
$ | -173,000 | $ | 333,000 | |||||
Basic_and_Diluted_Earnings_Los2
Basic and Diluted Earnings (Loss) per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Numerator: | ' | ' | ' | ' |
Net income (loss) (in dollars) | $165,962 | $292,704 | ($273,754) | $273,760 |
Denominator: | ' | ' | ' | ' |
Denominator for basic earnings (loss) per share--weighted average shares | 12,666,000 | 12,616,000 | 12,666,000 | 12,617,000 |
Dilutive effect of employee stock options and other warrants | 84,000 | 226,000 | 0 | 168,000 |
Denominator for diluted earnings (loss) per share--adjusted weighted average shares | 12,750,000 | 12,842,000 | 12,666,000 | 12,785,000 |
Basic earnings (loss) per share (in dollars per share) | $0.01 | $0.02 | ($0.02) | $0.02 |
Diluted earnings (loss) per share (in dollars per share) | $0.01 | $0.02 | ($0.02) | $0.02 |
Basic_and_Diluted_Earnings_Los3
Basic and Diluted Earnings (Loss) per Share (Details Textual) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' | ' |
Antidilutive Securities Excluded From Computation Of Earnings Per Share, Amount | 1,087,333 | 1,103,500 | 1,075,565 | 1,117,161 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Carrying Value | $4,365,582 | $4,362,611 |
Note receivable, Carrying Value | 1,853,146 | 1,921,046 |
Marketable securities, Carrying Value | 276,600 | 278,000 |
Long-term debt, Fair Value | 4,365,582 | 4,362,611 |
Note receivable, Fair Value | 2,269,000 | 2,365,000 |
Marketable securities, Fair Value | 276,600 | 278,000 |
Fair Value, Inputs, Level 1 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Carrying Value | 0 | 0 |
Note receivable, Carrying Value | 0 | 0 |
Marketable securities, Carrying Value | 276,600 | 278,000 |
Fair Value, Inputs, Level 2 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Carrying Value | 4,365,582 | 4,362,611 |
Note receivable, Carrying Value | 2,269,000 | 2,365,000 |
Marketable securities, Carrying Value | 0 | 0 |
Fair Value, Inputs, Level 3 [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Long-term debt, Carrying Value | 0 | 0 |
Note receivable, Carrying Value | 0 | 0 |
Marketable securities, Carrying Value | $0 | $0 |
Debt_Details
Debt (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' | ' |
Term loan | $3,191,798 | $2,400,697 |
Revolving line of credit | 500,000 | 1,150,000 |
Obligation for acquisition of technology license, net | 673,784 | 811,914 |
Long-term Debt | 4,365,582 | 4,362,611 |
Less current maturities | 697,423 | 581,004 |
Total long-term debt | $3,668,159 | $3,781,607 |
Debt_Details_1
Debt (Details 1) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
Twelve months ending June 30, | ' | ' |
2015 | $697,423 | ' |
2016 | 3,444,375 | ' |
2017 | 223,784 | ' |
2018 | 0 | ' |
2019 | 0 | ' |
Thereafter | 0 | ' |
Long-term Debt, Total | $4,365,582 | $4,362,611 |
Debt_Details_Textual
Debt (Details Textual) (USD $) | 9 Months Ended | 9 Months Ended | |
Sep. 30, 2014 | Oct. 29, 2014 | Sep. 30, 2014 | |
Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Secured Debt [Member] | |
Subsequent Event [Member] | |||
Debt Instrument [Line Items] | ' | ' | ' |
Debt Instrument, Description Of Variable Rate Basis | ' | ' | 'a floating interest rate based on the 30-day LIBOR plus 2%. |
Debt Instrument, Frequency Of Periodic Payment | ' | ' | 'Monthly |
Debt Instrument, Periodic Payment, Principal | ' | ' | $41,452 |
Debt Instrument, Maturity Date | ' | ' | 1-Jul-16 |
Debt Instrument, Interest Rate During Period | ' | ' | 2.16% |
Debt Instrument, Term | ' | ' | '28 months |
Debt Instrument, Restrictive Covenants | ' | ' | 'The Credit Agreement also includes loan covenants requiring the Company to maintain net tangible worth of not less than $11 million, and a fixed charge coverage ratio under which EBITDA adjusted for certain non-cash expenses shall exceed fixed charges by a ratio of at least 1.15 to 1. |
Debt Instrument, Covenant Compliance, Fixed charge Coverage Ratio, Minimum | ' | ' | 1.15 |
Line of Credit Facility, Maximum Borrowing Capacity | 5,000,000 | 3,500,000 | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | $3,000,000 | ' |
Line of Credit Facility, Expiration Date | 1-Jul-16 | ' | ' |
Line of Credit Facility, Interest Rate Description | 'a floating interest rate based on the 30-day LIBOR plus 1.85% | ' | ' |
Line of Credit Facility, Interest Rate at Period End | 2.01% | ' | ' |
LongTerm_Incentive_Compensatio1
Long-Term Incentive Compensation Plan (Details Textual) (USD $) | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2011 | Dec. 31, 2013 | |
Long-Term Incentive Compensation Plan [Line Items] | ' | ' | ' | ' | ' | ' |
Other Liabilities, Noncurrent | $401,277 | ' | $401,277 | ' | ' | $910,327 |
Payroll, payroll taxes, and incentive compensation payable | 1,036,213 | ' | 1,036,213 | ' | ' | 555,193 |
Incentive Compensation Plan [Member] | ' | ' | ' | ' | ' | ' |
Long-Term Incentive Compensation Plan [Line Items] | ' | ' | ' | ' | ' | ' |
Performance Based Incentive Compensation Vest Based On Annual Increment Percentage | ' | ' | ' | ' | 20.00% | ' |
Other Liabilities, Noncurrent | ' | ' | ' | ' | ' | 529,000 |
Deferred Compensation Arrangement with Individual, Compensation Expense | 54,000 | 66,000 | 186,700 | 266,500 | ' | ' |
Payroll, payroll taxes, and incentive compensation payable | $715,700 | ' | $715,700 | ' | ' | ' |
Taxes_Details
Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Taxes [Line Items] | ' | ' | ' | ' |
Income taxes (benefit) at U.S. statutory rate | ' | ' | ($152,000) | $206,000 |
State income taxes, net of federal benefit | ' | ' | 25,000 | 60,000 |
Higher / (lower) effective taxes on earnings/losses in certain foreign countries | ' | ' | -6,000 | 77,000 |
Foreign corporate income taxes | ' | ' | 8,000 | 30,000 |
Other, net | ' | ' | -48,000 | -40,000 |
Income Tax Expense (Benefit), Total | $7,000 | $153,000 | ($173,000) | $333,000 |
Taxes_Details_Textual
Taxes (Details Textual) (USD $) | 9 Months Ended | 12 Months Ended | 36 Months Ended | |
Sep. 30, 2014 | Dec. 31, 2010 | Dec. 31, 2006 | Dec. 31, 2013 | |
Taxes [Line Items] | ' | ' | ' | ' |
Effective Income Tax Rate Reconciliation, Percent, Total | 34.00% | ' | ' | ' |
Vat And Withholding Taxes | ' | ' | $800,000 | ' |
Interest Penalty Percentage | ' | ' | 20.00% | ' |
Selling, General and Administrative Expense | ' | 185,000 | ' | ' |
Management Estimated Reserve For Tax | $115,000 | ' | ' | $95,000 |