Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2018 | Aug. 08, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | IMMUCELL CORP /DE/ | |
Entity Central Index Key | 811,641 | |
Amendment Flag | false | |
Trading Symbol | ICCC | |
Current Fiscal Year End Date | --12-31 | |
Document Type | 10-Q | |
Document Period End Date | Jun. 30, 2018 | |
Document Fiscal Period Focus | Q2 | |
Document Fiscal Year Focus | 2,018 | |
Entity Filer Category | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding | 5,483,728 |
(Unaudited Condensed) Balance S
(Unaudited Condensed) Balance Sheets - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 2,514,519 | $ 3,798,811 |
Accounts receivable, net | 985,216 | 1,344,022 |
Inventory | 1,836,894 | 2,049,732 |
Prepaid expenses and other current assets | 487,383 | 314,667 |
Total current assets | 5,824,012 | 7,507,232 |
PROPERTY, PLANT AND EQUIPMENT, net | 26,589,931 | 26,069,689 |
DEFERRED TAX ASSETS, net | 472,726 | |
INTANGIBLE ASSETS, net | 143,280 | 152,832 |
GOODWILL | 95,557 | 95,557 |
INTEREST RATE SWAPS | 79,283 | |
OTHER ASSETS | 9,149 | 920 |
TOTAL ASSETS | 32,741,212 | 34,298,956 |
CURRENT LIABILITIES: | ||
Accounts payable and accrued expenses | 783,781 | 1,723,270 |
Current portion of bank debt | 563,084 | 316,629 |
Deferred revenue | 24,100 | 24,100 |
Total current liabilities | 1,370,965 | 2,063,999 |
LONG-TERM LIABILITIES: | ||
Bank debt, net of current portion | 8,555,842 | 8,639,021 |
Interest rate swaps | 996 | |
Total long-term liabilities | 8,555,842 | 8,640,017 |
TOTAL LIABILITIES | 9,926,807 | 10,704,016 |
CONTINGENT LIABILITIES AND COMMITMENTS (Note 15) | ||
STOCKHOLDERS' EQUITY: | ||
Common stock, $0.10 par value per share, 11,000,000 and 8,000,000 shares authorized, 5,662,645 and 5,662,645 shares issued and 5,483,728 and 5,476,197 shares outstanding, as of June 30, 2018 and December 31, 2017, respectively | 566,265 | 566,265 |
Additional paid-in capital | 22,620,595 | 22,458,219 |
(Accumulated deficit) retained earnings | (40,512) | 978,973 |
Treasury stock, at cost, 178,917 and 186,448 shares as of June 30, 2018 and December 31, 2017, respectively | (391,405) | (407,879) |
Accumulated other comprehensive income (loss) | 59,462 | (638) |
Total stockholders' equity | 22,814,405 | 23,594,940 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 32,741,212 | $ 34,298,956 |
(Unaudited Condensed) Balance 3
(Unaudited Condensed) Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.10 | $ 0.10 |
Common stock, shares authorized | 11,000,000 | 8,000,000 |
Common stock, shares issued | 5,662,645 | 5,662,645 |
Common stock, shares outstanding | 5,483,728 | 5,476,197 |
Treasury stock, shares | 178,917 | 186,448 |
(Unaudited Condensed) Statement
(Unaudited Condensed) Statements of Operations - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Statement [Abstract] | ||||
Product sales | $ 3,014,546 | $ 1,749,605 | $ 5,895,731 | $ 5,293,536 |
Costs of goods sold | 1,527,636 | 828,253 | 3,049,080 | 2,220,251 |
Gross margin | 1,486,910 | 921,352 | 2,846,651 | 3,073,285 |
Product development expenses | 761,893 | 387,007 | 1,344,827 | 726,623 |
Sales and marketing expenses | 475,226 | 400,446 | 1,007,130 | 914,921 |
Administrative expenses | 443,200 | 399,206 | 866,257 | 778,838 |
Operating expenses | 1,680,319 | 1,186,659 | 3,218,214 | 2,420,382 |
NET OPERATING (LOSS) INCOME | (193,409) | (265,307) | (371,563) | 652,903 |
Other expenses, net | 103,134 | 36,396 | 195,251 | 66,638 |
(LOSS) INCOME BEFORE INCOME TAXES | (296,543) | (301,703) | (566,814) | 586,265 |
Income tax expense (benefit) | 501,820 | (83,314) | 452,672 | 220,412 |
NET (LOSS) INCOME | $ (798,363) | $ (218,389) | $ (1,019,486) | $ 365,853 |
Weighted average common shares outstanding: | ||||
Basic | 5,481,417 | 4,848,390 | 5,479,679 | 4,847,976 |
Diluted | 5,481,417 | 4,848,390 | 5,479,679 | 4,943,303 |
NET (LOSS) INCOME PER SHARE: | ||||
Basic | $ (0.15) | $ (0.05) | $ (0.19) | $ 0.08 |
Diluted | $ (0.15) | $ (0.05) | $ (0.19) | $ 0.07 |
(Unaudited Condensed) Statemen5
(Unaudited Condensed) Statements of Comprehensive (Loss) Income - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statements of Other Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (798,363) | $ (218,389) | $ (1,019,486) | $ 365,853 |
Other comprehensive income (loss): | ||||
Interest rate swaps, before taxes | 21,655 | (13,244) | 80,280 | 2,491 |
Income tax applicable to interest rate swaps | (5,414) | 4,768 | (20,180) | (897) |
Other comprehensive income (loss), net of taxes | 16,241 | (8,476) | 60,100 | 1,594 |
Total comprehensive (loss) income | $ (782,122) | $ (226,865) | $ (959,386) | $ 367,447 |
(Unaudited Condensed) Statemen6
(Unaudited Condensed) Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net (loss) income | $ (1,019,486) | $ 365,853 |
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||
Depreciation | 560,588 | 421,138 |
Amortization | 9,552 | 9,552 |
Non-cash interest expense | 8,408 | 7,011 |
Deferred income taxes | 452,546 | 179,054 |
Stock-based compensation | 167,991 | 101,113 |
Gain on disposal of fixed assets | (3,663) | |
Recovery of uncollectible accounts, net | (17,411) | |
Changes in: | ||
Accounts receivable, gross | 358,806 | 304,783 |
Accrued interest income | 21,431 | |
Inventory | 212,838 | (488,788) |
Prepaid expenses and other current assets | (172,717) | 225,536 |
Other assets | (8,229) | (920) |
Accounts payable and accrued expenses | (299,416) | 9,402 |
Deferred revenue | (33,856) | |
Net cash provided by operating activities | 270,881 | 1,100,235 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (1,715,180) | (8,616,542) |
Payment of contingent royalties related to 2016 acquisition | (5,723) | (3,769) |
Maturities of investments | 5,212,000 | |
Purchases of investments | (249,000) | |
Proceeds from sale of fixed assets | 45,000 | |
Net cash used in investing activities | (1,720,903) | (3,612,311) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Proceeds from debt issuance | 267,141 | 840,000 |
Proceeds from line of credit | 500,000 | |
Debt principal repayments | (111,749) | (73,572) |
Debt issuance costs | (522) | (62,314) |
Proceeds from exercise of stock options | 10,860 | 5,250 |
Net cash provided by financing activities | 165,730 | 1,209,364 |
NET DECREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | (1,284,292) | (1,302,712) |
BEGINNING CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 3,798,811 | 5,150,344 |
ENDING CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 2,514,519 | 3,847,632 |
CASH PAID FOR: | ||
Income taxes | 4,000 | 4,000 |
Interest expense | 189,968 | 76,252 |
NON-CASH ACTIVITIES: | ||
Change in capital expenditures included in accounts payable and accrued expenses | (634,351) | 1,710,136 |
Net change in fair value of interest rate swaps | (60,100) | (1,594) |
Fixed asset disposals, gross | $ 6,730 | $ 431,970 |
Business Operations
Business Operations | 6 Months Ended |
Jun. 30, 2018 | |
Business Operations [Abstract] | |
BUSINESS OPERATIONS | 1. BUSINESS OPERATIONS ImmuCell Corporation (the “Company”, “we”, “us”, “our”) is an animal health company whose purpose is to create scientifically-proven and practical products that improve the health and productivity of dairy and beef cattle. The Company was originally incorporated in Maine in 1982 and reincorporated in Delaware in 1987, in conjunction with its initial public offering of common stock. We market products that provide immediate immunity to newborn dairy and beef cattle. We are developing product line extensions of our existing products and are in the late stages of developing a novel product that addresses mastitis, the most significant cause of economic loss to the dairy industry. These products help reduce the need to use traditional antibiotics in food producing animals. The Company is subject to certain risks associated with its stage of development including dependence on key individuals, competition from other larger companies, the successful sale of existing products and the development and acquisition of additional commercially viable products with appropriate regulatory approvals, where applicable. Based on our best estimates and projections, we believe that we have sufficient capital resources to continue operations for at least twelve months from the date of this filing. These and other risks to our Company are further detailed under Part II, Item 1A |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) Basis of Presentation We have prepared the accompanying unaudited condensed financial statements reflecting all adjustments that are, in our opinion, necessary in order to ensure that the financial statements are not misleading. We follow accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets generally accepted accounting principles (GAAP) that we follow to ensure we consistently report our financial condition, results of operations, earnings per share and cash flows. References to GAAP in these footnotes are to the FASB Accounting Standards Codification (b) Cash and Cash Equivalents We consider all highly liquid investment instruments that mature within three months of their purchase dates to be cash equivalents. Cash equivalents are principally invested in securities backed by the U.S. government. Certain cash balances in excess of Federal Deposit Insurance Corporation (FDIC) limits of $250,000 per financial institution per depositor are maintained in money market accounts at financial institutions that are secured, in part, by the Securities Investor Protection Corporation. Amounts in excess of these FDIC limits per bank that are not invested in securities backed by the U.S. government aggregated $2,262,224 and $3,546,529 as of June 30, 2018 and December 31, 2017, respectively. We account for investments in marketable securities in accordance with Codification Topic 320, Investments – Debt and Equity Securities (c) Inventory Inventory includes raw materials, work-in-process and finished goods and is recorded at the lower of cost, on the first-in, first-out method, or net realizable value (determined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation). Work-in-process and finished goods inventories include materials, labor and manufacturing overhead. At each balance sheet date, we evaluate our ending inventories for excess quantities and obsolescence. Inventories that we consider excess or obsolete are reserved. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. See Note 4. (d) Accounts Receivable Accounts receivable are carried at the original invoice amount less an estimate made for doubtful collection. Management determines the allowance for doubtful accounts on a monthly basis by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are considered to be past due if a portion of the receivable balance is outstanding for more than 30 days. Past due accounts receivable are subject to an interest charge. Accounts receivable are written off when deemed uncollectible. The amount of accounts receivable written off during all periods reported was immaterial. Recoveries of accounts receivable previously written off are recorded as income when received. As of June 30, 2018, we determined that no allowance for doubtful accounts was necessary. (e) Property, Plant and Equipment We depreciate property, plant and equipment on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. The facility we have constructed to produce the active pharmaceutical ingredient, Nisin, is being depreciated over 39 years from when a certificate of occupancy was issued during the fourth quarter of 2017. We are evaluating the estimated useful lives of the assets included in construction in progress since they were not placed in service as of June 30, 2018. Significant repairs to fixed assets that benefit more than a current period are capitalized and depreciated over their useful lives. Insignificant repairs are expensed when incurred. See Note 6. (f) Intangible Assets and Goodwill We amortize intangible assets on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. We have recorded intangible assets related to customer relationships, non-compete agreements, and developed technology, each with defined useful lives. We have classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) acquired in purchase transactions. We assess the impairment of intangible assets and goodwill that have indefinite lives at the reporting unit level on an annual basis (as of December 31st) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. We would record an impairment charge if such an assessment were to indicate that the fair value of such assets was less than the carrying value. Judgment is required in determining whether an event has occurred that may impair the value of goodwill or identifiable intangible assets. Factors that could indicate that an impairment may exist include significant under-performance relative to plan or long-term projections, significant changes in business strategy and significant negative industry or economic trends. Although we believe intangible assets and goodwill are appropriately stated in the accompanying financial statements, changes in strategy or market conditions could significantly impact these judgments and require an adjustment to the recorded balance. No impairments were recorded during the six-month period ended June 30, 2018 or the year ended December 31, 2017. See Notes 2(h), 7 and 8 for additional disclosures. (g) Fair Value Measurements In determining fair value measurements, we follow the provisions of Codification Topic 820, Fair Value Measurements and Disclosures Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date. Level 2 - Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 3 - Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. We hold money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value. The fair value of these investments is based on their closing published net asset value. We assess the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with our accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the six-month period ended June 30, 2018 and the year ended December 31, 2017, there were no transfers between levels. As of June 30, 2018 and December 31, 2017, our Level 1 assets measured at fair value by quoted prices in active markets consisted of bank savings accounts and money market funds. As of June 30, 2018 and December 31, 2017, our interest rate swaps were classified as Level 2 and were measured by observable market data in combination with expected cash flows for each instrument. There were no assets or liabilities measured at fair value on a nonrecurring basis as of June 30, 2018 or December 31, 2017. As of June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and money market accounts $ 2,514,519 $ - $ - $ 2,514,519 Interest rate swaps $ - $ 79,283 $ - $ 79,283 As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash and money market accounts $ 3,798,811 $ - $ - $ 3,798,811 Liabilities: Interest rate swaps $ - $ (996 ) $ - $ (996 ) (h) Valuation of Long-Lived Assets We periodically evaluate our long-lived assets, consisting principally of fixed assets and amortizable intangible assets, for potential impairment. In accordance with the applicable accounting guidance for the treatment of long-lived assets, we review the carrying value of our long-lived assets or asset group that is held and used, including intangible assets subject to amortization, for impairment whenever events and circumstances indicate that the carrying value of the assets may not be recoverable. Under the held for use approach, the asset or asset group to be tested for impairment should represent the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. We evaluate our long-lived assets whenever events or circumstances suggest that the carrying amount of an asset or group of assets may not be recoverable. No impairment was recognized during the six-month period ended June 30, 2018 or the year ended December 31, 2017. (i) Concentration of Risk Concentration of credit risk with respect to accounts receivable is principally limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our customers and, as a consequence, believe that our accounts receivable credit risk exposure is limited. We maintain an allowance for potential credit losses when deemed necessary, but historically we have not experienced significant credit losses related to an individual customer or groups of customers in any particular industry or geographic area. Sales to significant customers that amounted to 10% or more of total product sales are detailed in the following table: For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 Animal Health International, Inc. 44 % 42 % 40 % 41 % MWI Animal Health 20 % 19 % 22 % 24 % ANIMART LLC 11 % * 11 % * Accounts receivable due from significant customers amounted to the percentges of total trade accounts receivable as detailed in the following table: As of June 30, As of December 31, Animal Health International, Inc. 50 % 40 % MWI Animal Health 19 % 29 % ANIMART LLC 11 % * * Amount is less than 10%. We believe that supplies and raw materials for the production of our products are available from more than one vendor or farm. Our policy is to maintain more than one source of supply for the components used in our products. However, there is a risk that we could have difficulty in efficiently acquiring essential supplies. (j) Interest Rate Swap Agreements All derivatives are recognized on the balance sheet at their fair value. We entered into interest rate swap agreements in 2010 and 2015. On the dates the agreements were entered into, we designated the derivatives as hedges of the variability of cash flows to be paid related to our long-term debt. The agreements have been determined to be highly effective in hedging the variability of identified cash flows, so changes in the fair market value of the interest rate swap agreements are recorded as comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). We formally documented the relationship between the interest rate swap agreements and the related hedged items. We also formally assess, both at the interest rate swap agreements’ inception and on an ongoing basis, whether the agreements are highly effective in offsetting changes in cash flow of hedged items. See Note 10. (k) Revenue Recognition We sell products that provide immediate immunity to newborn dairy and beef cattle. For periods ended on and before December 31, 2017, we recognized revenue in accordance with ASC 605 when four criteria were met. These included i) persuasive evidence that an arrangement existed, ii) delivery had occurred, iii) our price was fixed and determinable and iv) collectability was reasonably assured. For periods beginning after December 31, 2017, we recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers (l) Expense Recognition In 2018, we adopted ASC 340-40, Accounting for Other Assets and Deferred Costs (m) Income Taxes We account for income taxes in accordance with Codification Topic 740, Income Taxes (n) Stock-Based Compensation We account for stock-based compensation in accordance with Codification Topic 718, Compensation-Stock Compensation (o) Net (Loss) Income Per Common Share Net (loss) income per common share has been computed in accordance with Codification Topic 260-10, Earnings Per Share. For the Three-Month For the Six-Month 2018 2017 2018 2017 Weighted average number of shares outstanding 5,481,417 4,848,390 5,479,679 4,847,976 Effect of dilutive stock options - - - 95,327 Diluted number of shares outstanding 5,481,417 4,848,390 5,479,679 4,943,303 Outstanding stock options not included in the calculation because the effect would be anti-dilutive 480,000 368,000 480,000 120,000 (p) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Although we regularly assess these estimates, actual amounts could differ from those estimates. Changes in estimates are recorded during the period in which they become known. Significant estimates include our inventory valuation, valuation of goodwill and long-lived assets, accrued expenses, costs of goods sold, and useful lives of intangible assets. (q) New Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting |
Cash and Cash Equivalents
Cash and Cash Equivalents | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
CASH AND CASH EQUIVALENTS | 3. CASH AND CASH EQUIVALENTS Cash and cash equivalents consisted of the following: As of June 30, As of December 31, 2017 Cash and cash equivalents $ 2,514,519 $ 3,798,811 Short-term investments were liquidated during 2017 to finance the investment in our Nisin production facility. The cost of securities sold is determined based on the specific identification method. Realized gains and losses, and declines in value judged to be other than temporary, are included in investment income. We are required by bank debt covenant to maintain at least $2,000,000 of otherwise unrestricted cash, cash equivalents and short-term investments. |
Inventory
Inventory | 6 Months Ended |
Jun. 30, 2018 | |
Inventory [Abstract] | |
INVENTORY | 4. INVENTORY Inventory consisted of the following: As of June 30, As of December 31, 2017 Raw materials $ 364,919 $ 483,329 Work-in-process 1,311,597 1,349,649 Finished goods 160,378 216,754 Total $ 1,836,894 $ 2,049,732 |
Prepaid Expenses and Other Curr
Prepaid Expenses and Other Current Assets | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 5. PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following: As of June 30, As of December 31, 2017 Prepaid expenses $ 325,209 $ 130,813 Other receivables 127,910 149,590 Security deposits (1) 34,264 34,264 Total $ 487,383 $ 314,667 (1) This amount consists of the current portion of escrow funds held against certain construction performance requirements. |
Property, Plant and Equipment
Property, Plant and Equipment | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
PROPERTY, PLANT AND EQUIPMENT | 6. PROPERTY, PLANT AND EQUIPMENT Property, plant and equipment consisted of the following: Estimated Useful Lives (in years) As of June 30, As of December 31, 2017 Laboratory and manufacturing equipment 3-10 $ 5,652,363 $ 5,511,452 Building and improvements 10-39 17,006,716 16,966,728 Office furniture and equipment 3-10 698,877 698,877 Construction in progress 9,209,130 8,315,436 Land 518,999 518,999 Property, plant and equipment, gross 33,086,085 32,011,492 Accumulated depreciation (6,496,154 ) (5,941,803 ) Property, plant and equipment, net $ 26,589,931 $ 26,069,689 As of June 30, 2018 and December 31, 2017, construction in progress consisted principally of payments for equipment to be used in our Nisin production facility. Approximately $6,730 and $435,448 of property, plant and equipment was disposed of during the six-month period ended June 30, 2018 and the year ended December 31, 2017, respectively. |
Business Acquisition
Business Acquisition | 6 Months Ended |
Jun. 30, 2018 | |
Business Acquisition [Abstract] | |
BUSINESS ACQUISITION | 7. BUSINESS ACQUISITION On January 4, 2016, we acquired certain business assets and processes from DAY 1™ Technology, LLC of Minnesota. The acquired rights and know-how are primarily related to formulating our bovine antibodies into a gel solution for an oral delivery option to newborn calves via a syringe (or tube). This product format offers customers an alternative delivery option to the bolus (the standard delivery format of the bivalent First Defense ® Tri-Shield™ First Defense ® |
Intangible Assets
Intangible Assets | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
INTANGIBLE ASSETS | 8. INTANGIBLE ASSETS The intangible assets described in Note 7 are being amortized to cost of goods sold over their useful lives, which are estimated to be 10 years. Intangible amortization expense was $4,776 during the three-month periods ended June 30, 2018 and 2017 and $9,552 during the six-month periods ended June 30, 2018 and 2017. The net value of these intangibles was $143,280 and $152,832 as of June 30, 2018 and December 31, 2017, respectively. A summary of intangible amortization expense estimated for the periods subsequent to June 30, 2018 is as follows: Period Amount Six-month period ending December 31, 2018 $ 9,552 Year ending December 31, 2019 19,104 Year ending December 31, 2020 19,104 Year ending December 31, 2021 19,104 Year ending December 31, 2022 19,104 After December 31, 2022 57,312 Total $ 143,280 Intangible assets as of June 30, 2018 consisted of the following: Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 184,100 $ (46,025 ) $ 138,075 Customer relationships 1,300 (325 ) 975 Non-compete agreements 5,640 (1,410 ) 4,230 Total $ 191,040 $ (47,760 ) $ 143,280 Intangible assets as of December 31, 2017 consisted of the following: Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 184,100 $ (36,820 ) $ 147,280 Customer relationships 1,300 (260 ) 1,040 Non-compete agreements 5,640 (1,128 ) 4,512 Total $ 191,040 $ (38,208 ) $ 152,832 |
Accounts Payable and Accrued Ex
Accounts Payable and Accrued Expenses | 6 Months Ended |
Jun. 30, 2018 | |
Accounts Payable and Accrued Expenses [Abstract] | |
ACCOUNTS PAYABLE AND ACCRUED EXPENSES | 9. ACCOUNTS PAYABLE AND ACCRUED EXPENSES Accounts payable and accrued expenses consisted of the following: As of June 30, As of December 31, 2017 Accounts payable – capital $ 7,039 $ 641,389 Accounts payable – trade 395,585 580,456 Accrued payroll 185,327 254,743 Accrued professional fees 82,390 64,200 Accrued other 113,440 182,482 Total $ 783,781 $ 1,723,270 |
Bank Debt
Bank Debt | 6 Months Ended |
Jun. 30, 2018 | |
Bank Debt [Abstract] | |
BANK DEBT | 10. BANK DEBT We have in place five credit facilities and a line of credit with TD Bank N.A. that are secured by substantially all of our assets and are subject to certain restrictions and financial covenants. The first note (Loan #1) is not to exceed 80% of the appraised value of our corporate headquarters and production and research facility at 56 Evergreen Drive in Portland. Proceeds of $1,000,000 were received during the third quarter of 2010 with monthly principal and interest payments due for ten years. Based on a fifteen-year amortization schedule, a balloon principal payment of $451,885 will be due during the third quarter of 2020. As of June 30, 2018, $595,704 was outstanding under this first note (Loan #1). Proceeds from a $2,500,000 second mortgage on our corporate headquarters (Loan #2) were received during the third quarter of 2015 with monthly principal and interest payments due for ten years. Based on a twenty-year amortization schedule, a balloon principal payment of approximately $1,550,000 will be due during the third quarter of 2025. As of June 30, 2018, $2,277,307 was outstanding under Loan #2. During the first quarter of 2016, we entered into two additional credit facilities (Loans #3 and #4) aggregating up to approximately $4,500,000. As a result of loan amendments entered into the during the first quarter of 2017, these two credit facilities were increased to up to $6,500,000, subject to certain restrictions set forth in the agreements. The third note (Loan #3) is comprised of a construction loan of up to $3,940,000 and not to exceed 80% of the cost of the equipment to be installed in our commercial-scale Nisin production facility at 33 Caddie Lane in Portland. As amended, interest only will be payable at a variable rate equal to the one-month LIBOR (adjusted at each monthly payment date) plus a margin of 2.25% (which was equal to approximately 4.23% for the one-month period beginning July 1, 2018) through September 2018, at which time the loan converts to a seven-year term loan facility at the same variable interest rate with monthly principal and interest payments due based on a seven-year amortization schedule. As of June 30, 2018, $3,513,501 was outstanding under this third note, and $426,499 was remaining and available to be drawn. The fourth note (Loan #4) is comprised of a construction loan of up to $2,560,000 and not to exceed 80% (75% prior to the 2017 amendments) of the appraised value of our commercial-scale Nisin production facility. As amended, interest only was payable at a variable rate equal to the one-month LIBOR (adjusted at each monthly payment date) plus a margin of 2.25% (which was equal to approximately 4.23% for the one-month period beginning July 1, 2018) through March 2018, at which time the loan converted to a term loan facility at the same variable interest rate with monthly principal and interest payments due for ten years. Based on a twenty-year amortization schedule, a balloon principal payment of approximately $1,625,000 will be due during the first quarter of 2027. As of June 30, 2018, $2,528,000 was outstanding under this fourth note. The fifth note (Loan #5) is a mortgage that is secured by the 4,114 square foot warehouse and storage facility we acquired adjacent to our Nisin production facility. Proceeds of $340,000 were received during the first quarter of 2017. This note bears interest at a variable rate equal to the one-month LIBOR (adjusted at each monthly payment date) plus a margin of 2.25% (which was equal to approximately 4.18% for the one-month period beginning June 16, 2018) with monthly principal and interest payments due for ten years. Based on a twenty-year amortization schedule, a balloon principal payment of approximately $205,000 will be due during the first quarter of 2027. As of June 30, 2018, $325,973 was outstanding under this fifth note. We hedged our interest rate exposures on Loan #1 and Loan #2 with interest rate swap agreements that effectively converted floating interest rates based on the one-month LIBOR plus a margin of 3.25% and 2.25% to the fixed rates of 6.04% and 4.38%, respectively. As of June 30, 2018, the variable rates on these two mortgage notes were approximately 5.30% and 4.34%, respectively. All derivatives are recognized on the balance sheet at their fair value. At the time of the closings and thereafter, the agreements were determined to be highly effective in hedging the variability of the identified cash flows and have been designated as cash flow hedges of the variability in the hedged interest payments. Changes in the fair value of the interest rate swap agreements are recorded in other comprehensive (loss) income, net of taxes. The original notional amounts of the interest rate swap agreements of $1,000,000 and $2,500,000 amortize in accordance with the amortization of the mortgage notes. The notional amount of the interest rate swaps was $2,873,011 as of June 30, 2018. The fair values of the interest rate swaps have been determined using observable market-based inputs or unobservable inputs that are corroborated by market data. Accordingly, the interest rate swaps are classified as level 2 within the fair value hierarchy provided in Codification Topic 820, Fair Value Measurements and Disclosures For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 Payments required by interest rate swaps $ 2,824 $ 10,044 $ 8,109 $ 21,720 Other comprehensive income (loss), net of taxes $ 16,241 $ (8,476 ) $ 60,100 $ 1,594 In connection with the credit facilities entered into during the third quarters of 2010 and 2015, we incurred debt issue costs of $26,489 and $34,125, respectively. In connection with the credit facilities and amendments thereto entered into during the first quarters of 2016 and 2017, we incurred debt issue costs of $46,734 and $66,622, respectively. The 2017 amendments to the 2016 agreements were accounted for as modifications. The amortization of debt issuance costs is being recorded as a component of other expenses and is being amortized over the terms of the respective credit facilities. Debt proceeds received and principal repayments made during the three-month periods ended June 30, 2018 and 2017 are reflected in the following table by year and by loan: For the Three-Month Period Ended June 30, 2018 For the Three-Month Period Ended June 30, 2017 Proceeds from Debt Issuance Debt Principal Repayments Proceeds from Debt Issuance Debt Principal Repayments Loan #1 $ - $ (15,888 ) $ - $ (14,952 ) Loan #2 - (21,279 ) - (20,343 ) Loan #3 - - 500,000 - Loan #4 - (32,000 ) - - Loan #5 - (2,779 ) - (2,982 ) Total $ - $ (71,946 ) $ 500,000 $ (38,277 ) Debt proceeds received and principal repayments made during the six-month periods ended June 30, 2018 and 2017 are reflected in the following table by year and by loan: For the Six-Month Period Ended June 30, 2018 For the Six-Month Period Ended June 30, 2017 Proceeds from Debt Issuance Debt Repayments Proceeds from Debt Issuance Debt Repayments Loan #1 $ - $ (31,776 ) $ - $ (29,904 ) Loan #2 - (42,558 ) - (40,686 ) Loan #3 - - 500,000 - Loan #4 267,141 (32,000 ) - - Loan #5 - (5,415 ) 340,000 (2,982 ) Total $ 267,141 $ (111,749 ) $ 840,000 $ (73,572 ) Principal payments (net of debt issuance costs) due under bank loans outstanding as of June 30, 2018 (excluding our $500,000 line of credit) are reflected in the following table by the year that payments are due: Six-Months Year Year Year Year After 12/31/2022 Total Loan #1 $ 33,100 $ 68,908 $ 493,696 $ - $ - $ - $ 595,704 Loan #2 43,539 89,997 94,005 98,538 103,077 1,848,151 2,277,307 Loan #3 (1) 108,411 445,280 464,496 484,541 505,452 1,505,321 3,513,501 Loan #4 (1) 41,840 86,379 90,106 93,995 98,051 2,117,629 2,528,000 Loan #5 (2) 5,792 11,953 12,462 12,994 13,548 269,224 325,973 Total $ 232,682 $ 702,517 $ 1,154,765 $ 690,068 $ 720,128 $ 5,740,325 $ 9,240,485 Debt Issuance Costs (121,559 ) Total $ 9,118,926 (1) These notes bear interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. Figures in this table are estimated using an interest rate of approximately 4.23%. The actual interest rate and principal payments will be different. (2) This note bears interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. Figures in this table are estimated using an interest rate of approximately 4.18%. The actual interest rate and principal payments will be different. During the third quarter of 2010, we entered into a $500,000 line of credit with TD Bank N.A., which has been renewed approximately annually since then and is available as needed and has been extended through May 31, 2020. There was no outstanding balance under this line of credit as of June 30, 2018 or December 31, 2017. Interest on borrowings against the line of credit is variable at the higher of 4.25% per annum or the one-month LIBOR plus 3.5% per annum. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity [Abstract] | |
STOCKHOLDERS' EQUITY | 11. STOCKHOLDERS’ EQUITY On October 28, 2015, we filed a registration statement on Form S-3 (File No. 333-207635) with the Securities and Exchange Commission (SEC) for the potential issuance of up to $10,000,000 in equity securities (subject to certain limitations). This registration statement became effective on November 10, 2015. Under this form of registration statement, we were limited within a twelve-month period to raising gross proceeds of no more than one-third of the market capitalization of our common stock (as determined by the high price of our common stock within the preceding 60 days leading up to a sale of securities) held by non-affiliates (non-insiders) of the Company. On February 3, 2016, we sold 1,123,810 shares of common stock at a price to the public of $5.25 per share in an underwritten public offering pursuant to our effective shelf registration statement on Form S-3, raising gross proceeds of approximately $5,900,000 and resulting in net proceeds to the Company of approximately $5,313,000 (after deducting underwriting discounts and offering expenses incurred in connection with the equity financing). On October 21, 2016, we closed on a private placement of 659,880 shares of common stock to nineteen institutional and accredited investors at $5.25 per share, raising gross proceeds of approximately $3,464,000 and resulting in net proceeds to the Company of approximately $3,161,000 (after deducting placement agent fees and other expenses incurred in connection with the equity financing). On July 27, 2017, we issued 200,000 shares of our common stock at a price of $5.25 per share to two related investors pursuant to our effective shelf registration statement on Form S-3, raising gross proceeds of $1,050,000 and resulting in net proceeds of approximately $1,034,000 (after deducting expenses incurred in connection with the equity financing). On December 21, 2017, we sold 417,807 shares of common stock at a price to the public of $7.30 per share in an underwritten public offering pursuant to our effective shelf registration statement on Form S-3, raising gross proceeds of approximately $3,050,000 and resulting in net proceeds to the Company of approximately $2,734,000 (after deducting underwriting discounts and offering expenses incurred in connection with the equity financing). At the June 15, 2016 Annual Meeting of Stockholders, we reported that our stockholders voted to approve an amendment to the Company’s Certificate of Incorporation to increase the number of shares of common stock authorized for issuance from 8,000,000 to 10,000,000. After careful consideration, we determined that the method of voting instructions described in our Proxy Statement was not consistent with the way the votes were actually recorded in accordance with stock exchange rules. Therefore, during the second quarter of 2017, we elected to treat the amendment as ineffective, and there was no increase in our authorized common stock. At the June 14, 2018 Annual Meeting of Stockholders, our stockholders voted to approve an amendment to the Company’s Certificate of Incorporation to increase the number of shares of common stock authorized for issuance from 8,000,000 to 11,000,000. In June 2000, our stockholders approved the 2000 Stock Option and Incentive Plan (the “2000 Plan”) pursuant to the provisions of the Internal Revenue Code of 1986, under which employees and certain service providers may be granted options to purchase shares of the Company’s common stock at i) no less than fair market value on the date of grant in the case of incentive stock options and ii) no less than 85% of fair market value on the date of grant in the case of non-qualified stock options. Vesting requirements are determined by the Compensation and Stock Option Committee of the Board of Directors on a case by case basis. Originally, 250,000 shares of common stock were reserved for issuance under the 2000 Plan. The stockholders of the Company approved an increase in this number to 500,000 shares in June 2001. All options granted under the 2000 Plan expire no later than ten years from the date of grant. The 2000 Plan expired in February 2010, after which date no further options could be granted under the 2000 Plan. However, outstanding options under the 2000 Plan may be exercised in accordance with their terms. In June 2010, our stockholders approved the 2010 Stock Option and Incentive Plan (the “2010 Plan”) pursuant to the provisions of the Internal Revenue Code of 1986, under which employees and certain service providers may be granted options to purchase shares of the Company’s common stock at no less than fair market value on the date of grant. At that time, 300,000 shares of common stock were reserved for issuance under the 2010 Plan and subsequently no additional shares have been reserved for the 2010 Plan. Vesting requirements are determined by the Compensation and Stock Option Committee of the Board of Directors on a case by case basis. All options granted under the 2010 Plan expire no later than ten years from the date of grant. The 2010 Plan expires in June 2020, after which date no further options could be granted under the 2010 Plan. However, options outstanding under the 2010 Plan at that time could be exercised in accordance with their terms. In June 2017, our stockholders approved the 2017 Stock Option and Incentive Plan (the “2017 Plan”) pursuant to the provisions of the Internal Revenue Code of 1986, under which employees and certain service providers may be granted options to purchase shares of the Company’s common stock at no less than fair market value on the date of grant. At that time, 300,000 shares of common stock were reserved for issuance under the 2017 Plan. Vesting requirements are determined by the Compensation and Stock Option Committee of the Board of Directors on a case by case basis. All options granted under the 2017 Plan expire no later than ten years from the date of grant. The 2017 Plan expires in March 2027, after which date no further options could be granted under the 2017 Plan. However, options outstanding under the 2017 Plan at that time could be exercised in accordance with their terms. Activity under the stock option plans described above was as follows: 2000 Plan 2010 Plan 2017 Plan Weighted Aggregate Intrinsic Value (1) Outstanding at December 31, 2016 126,500 124,500 - $ 3.89 $ 516,990 Grants - 141,000 - $ 5.92 Terminations (5,000 ) (16,000 ) - $ 5.68 Exercises (4,000 ) (7,000 ) - $ 3.47 Outstanding at December 31, 2017 117,500 242,500 - $ 4.58 $ 1,513,980 Grants - 38,500 106,500 $ 7.35 Terminations - (9,000 ) (5,000 ) $ 6.27 Exercises (10,000 ) (1,000 ) - $ 3.26 Outstanding at June 30, 2018 107,500 271,000 101,500 $ 5.40 $ 680,620 Vested at June 30, 2018 107,500 37,500 - $ 2.60 $ 611,810 Vested and expected to vest at June 30, 2018 107,500 271,000 101,500 $ 5.40 $ 680,620 Reserved for future grants - 1,000 198,500 (1) Intrinsic value is the difference between the fair market value as of the date indicated and as of the date of the option grant. During the six-month period ended June 30, 2018, four employees exercised stock options covering 11,000 shares. Three thousand of these options were exercised for cash, resulting in total proceeds of $10,850, and 8,000 of these options were exercised by the surrender of 3,469 shares of common stock with a fair market value of $25,040 at the time of exercise and $10 in cash. During the year ended December 31, 2017, six employees exercised stock options covering 11,000 shares for cash, resulting in total proceeds of $49,560. The weighted average remaining life of the options outstanding under the 2000 Plan, the 2010 Plan and the 2017 Plan as of June 30, 2018 was approximately five years and eight months. The weighted average remaining life of the options exercisable under these plans as of June 30, 2018 was approximately one year and one month. The exercise prices of the options outstanding as of June 30, 2018 ranged from $1.70 to $8.90 per share. The 145,000 stock options granted during the six-month period ended June 30, 2018 had exercise prices between $6.81 and $7.80 per share. The 141,000 stock options granted during the year ended December 31, 2017 had exercise prices between $5.33 and $8.90 per share. The aggregate intrinsic value of options exercised during 2018 and 2017 approximated $43,260 and $43,470, respectively. The weighted-average grant date fair values of options granted during 2018 and 2017 were $4.20 and $3.51 per share, respectively. As of June 30, 2018, total unrecognized stock-based compensation related to non-vested stock options aggregated $840,056, which will be recognized over a weighted average period of two years and two months. The fair value of each stock option grant has been estimated on the date of grant using the Black-Scholes option pricing model, for the purpose discussed in Note 2(n), with the following weighted-average assumptions for the three-month and six-month periods ended June 30, 2018 and for the year ended December 31, 2017: For the Three-Month Period Ended June 30, For the Six-Month Period Ended June 30, For the Year Ended December 31, 2017 Risk-free interest rate 2.8% 2.5% 1.9% Dividend yield 0% 0% 0% Expected volatility 55% 57% 61% Expected life 6.5 years 6.5 years 6.5 years The risk-free interest rate is based on U.S. Treasury yields for a maturity approximating the expected option term, while the other assumptions are derived from averages of our historical data. Common Stock Rights Plan In September 1995, our Board of Directors adopted a Common Stock Rights Plan (the “Rights Plan”) and declared a dividend of one common share purchase right (a “Right”) for each of the then outstanding shares of the common stock of the Company. Each Right entitles the registered holder to purchase from the Company one share of common stock at an initial purchase price of $70.00 per share, subject to adjustment. The description and terms of the Rights are set forth in a Rights Agreement between the Company and American Stock Transfer & Trust Co., as Rights Agent. The Rights (as amended) become exercisable and transferable apart from the common stock upon the earlier of i) 10 days following a public announcement that a person or group (Acquiring Person) has, without the prior consent of the Continuing Directors (as such term is defined in the Rights Agreement), acquired beneficial ownership of 20% or more of the outstanding common stock or ii) 10 days following commencement of a tender offer or exchange offer the consummation of which would result in ownership by a person or group of 20% or more of the outstanding common stock (the earlier of such dates being called the Distribution Date). Upon the Distribution Date, the holder of each Right not owned by the Acquiring Person would be entitled to purchase common stock at a discount to the initial purchase price of $70.00 per share, effectively equal to one half of the market price of a share of common stock on the date the Acquiring Person becomes an Acquiring Person. If, after the Distribution Date, the Company should consolidate or merge with any other entity and the Company were not the surviving company, or, if the Company were the surviving company, all or part of the Company’s common stock were changed or exchanged into the securities of any other entity, or if more than 50% of the Company’s assets or earning power were sold, each Right would entitle its holder to purchase, at the Rights’ then-current purchase price, a number of shares of the acquiring company’s common stock having a market value at that time equal to twice the Right’s exercise price. At any time after a person or group becomes an Acquiring Person and prior to the acquisition by such person or group of 50% or more of the outstanding common stock, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such person or group which have become void), in whole or in part, at an exchange ratio of one share of common stock per Right (subject to adjustment). At any time prior to 14 days following the date that any person or group becomes an Acquiring Person (subject to extension by the Board of Directors), the Board of Directors of the Company may redeem the then outstanding Rights in whole, but not in part, at a price of $0.005 per Right, subject to adjustment. At various times over the years, our Board of Directors has voted to authorize amendments of the Rights Agreement to extend the Final Expiration Date, which is currently September 19, 2022. Our Board of Directors also has voted to authorize amendments to increase the ownership threshold for determining “Acquiring Person” status to 20%. During the second quarter of 2015, our Board of Directors also voted to authorize an amendment to remove a provision that prevented a new group of directors elected following the emergence of an Acquiring Person (an owner of more than 20% of our stock) from controlling the Rights Plan by maintaining exclusive authority over the Rights Plan with pre-existing directors. We did this because such provisions have come to be viewed with disfavor by Delaware courts. Each time that we made such amendments we entered into amendments to the Rights Agreement with the Rights Agent reflecting such extensions, threshold increases or provision changes. No other changes have been made to the terms of the Rights or the Rights Agreement. |
Revenue
Revenue | 6 Months Ended |
Jun. 30, 2018 | |
Revenue [Abstract] | |
REVENUE | 12. REVENUE We primarily offer the First Defense ® product line to dairy and beef producers. Generally, our products are promoted to veterinarians and dairy and beef producers by our sales team and then sold through distributors. Our primary market is North America, but we are beginning to expand into other geographic territories around the world. The First Defense ® product line prevents scours in newborn calves. The demand for animal protein, that must be produced efficiently while insuring food quality and safety, increases as the human population grows. There were no material changes between the allocation and timing of revenue recognition during the three-month and six-month periods ended June 30, 2018 (under ASC 606) and the three-month and six-month periods ended June 30, 2017 (under ASC 605). We do not have any contract assets such as contracts for which we have satisfied the performance obligations but do not yet have the right to bill for or contract liabilities such as customer advances. All trade receivables on our condensed financial statements are from contracts with customers. We incur no material costs to obtain a contract. As of March 31, 2018, we had a backlog of orders (representing purchase orders received from customers which were not fulfilled or paid) worth approximately $1,245,000 for the First Defense ® product line. Before June 30, 2018 we cleared all of this backlog that was related to orders for our bivalent formats of the First Defense ® product line ( Dual-Force™ ). As of June 30, 2018, we had a backlog of orders for Tri-Shield™ First Defense ® worth approximately $327,000 that we expect to fulfill by December 31, 2018. The following table presents our revenue disaggregated by geographic area: For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 United States $ 2,544,133 $ 1,583,848 $ 5,139,749 $ 4,380,024 Other 470,413 165,757 755,982 913,512 Total $ 3,014,546 $ 1,749,605 $ 5,895,731 $ 5,293,536 The following table presents our revenue disaggregated by major product category: For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 First Defense ® product line $ 2,883,482 $ 1,653,650 $ 5,664,351 $ 4,897,354 Other animal health 131,064 95,955 231,380 299,782 Other - - - 96,400 Total $ 3,014,546 $ 1,749,605 $ 5,895,731 $ 5,293,536 |
Other Expenses, Net
Other Expenses, Net | 6 Months Ended |
Jun. 30, 2018 | |
Other Expenses, Net [Abstract] | |
OTHER EXPENSES, NET | 13. OTHER EXPENSES, NET Other expenses, net, consisted of the following: For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 Interest expense $ 106,268 $ 43,493 $ 202,284 $ 83,395 Interest income (3,209 ) (6,418 ) (7,033 ) (12,375 ) Other losses (gains) 75 (679 ) - (4,382 ) Other expenses, net $ 103,134 $ 36,396 $ 195,251 $ 66,638 |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2018 | |
Income Taxes [Abstract] | |
INCOME TAXES | 14. INCOME TAXES Our income tax expense (benefit) aggregated $501,820 and ($83,314) (amounting to 169% and (28%) of our (loss) before income taxes, respectively) for the three-month periods ended June 30, 2018 and 2017, respectively. Our income tax expense aggregated $452,672 and $220,412 (amounting to 80% and 38% of our (loss) income before income taxes, respectively) for the six-month periods ended June 30, 2018 and 2017, respectively. As of June 30, 2018, we had federal net operating loss carryforwards of approximately $1,700,000 that expire in 2034 through 2037 (if not utilized before then) and state net operating loss carryforwards of approximately $429,000 that expire in 2037 (if not utilized before then). Additionally, we had federal general business tax credit carryforwards of approximately $335,000 that expire in 2027 through 2037 (if not utilized before then) and state tax credit carryforwards of approximately $294,000 that expire in 2023 through 2037 (if not utilized before then). The $965,000 licensing payment that we made during the fourth quarter of 2004 was treated as an intangible asset and is being amortized over 15 years, for tax return purposes only. Approximately $1,112,000 of our investment in a small-scale facility to produce the Drug Substance (our Active Pharmaceutical Ingredient, Nisin) was expensed as incurred for our books from 2013 to 2015. Included in this amount is approximately $820,000 that was capitalized and is being depreciated over statutory periods for tax return purposes only. The Tax Cuts and Jobs Act was signed into law in December 2017. This legislation makes significant change in the U.S. tax law including a reduction in the corporate tax rates, changes to net operating loss carryforwards and carrybacks, and a repeal of the corporate alternative minimum tax. The legislation reduced the U.S. corporate tax rate from the current rate of 34% to 21%. As a result of the enacted law, we were required to revalue deferred tax assets and liabilities at the enacted rate in 2017. The provision for income taxes is determined using the asset and liability approach of accounting for income taxes. Under this approach, deferred taxes represent the estimated future tax effects of temporary differences between book and tax treatment of assets and liabilities and carryforwards to the extent they are realizable. During the second quarter of 2018, we recorded a valuation allowance of $563,252 against these deferred tax assets because we have incurred a net loss for three consecutive quarters and project additional net losses for some period going forward. While we consider future taxable income and feasible tax planning strategies in assessing the need for a valuation allowance, in the event we were to determine that we would be able to realize our deferred tax assets in the future in excess of the net recorded amount, a reduction of the valuation allowance would increase income in the period such determination was made. Likewise, should we determine that we would not be able to realize all or part of our net deferred tax asset in the future, an increase to the valuation allowance would be charged to income in the period such determination was made. Net operating loss carryforwards, credits, and other tax attributes are subject to review and possible adjustment by the Internal Revenue Service. Section 382 of the Internal Revenue Code contains provisions that could place annual limitations on the future utilization of net operating loss carryforwards and credits in the event of a change in ownership of the Company, as defined. The Company files income tax returns in the U.S. federal jurisdiction and several state jurisdictions. With few exceptions, the Company is no longer subject to income tax examinations by tax authorities for years before 2014. We currently have no tax examinations in progress. We also have not paid additional taxes, interest or penalties as a result of tax examinations nor do we have any unrecognized tax benefits for any of the periods in the accompanying financial statements. |
Contingent Liabilities and Comm
Contingent Liabilities and Commitments | 6 Months Ended |
Jun. 30, 2018 | |
Contingent Liabilities and Commitments [Abstract] | |
CONTINGENT LIABILITIES AND COMMITMENTS | 15. CONTINGENT LIABILITIES AND COMMITMENTS Our bylaws, as amended, in effect provide that the Company will indemnify its officers and directors to the maximum extent permitted by Delaware law. In addition, we make similar indemnity undertakings to each director through a separate indemnification agreement with that director. The maximum payment that we may be required to make under such provisions is theoretically unlimited and is impossible to determine. We maintain directors’ and officers’ liability insurance, which may provide reimbursement to the Company for payments made to, or on behalf of, officers and directors pursuant to the indemnification provisions. Our indemnification obligations were grandfathered under the provisions of Codification Topic 460 , Guarantees The development, manufacturing and marketing of animal health care products entails an inherent risk that liability claims will be asserted against us during the normal course of business. We are aware of no such claims against us as of the date of this filing. We feel that we have reasonable levels of liability insurance to support our operations. We enter into agreements with third parties in the ordinary course of business under which we are obligated to indemnify such third parties from and against various risks and losses. The precise terms of such indemnities vary with the nature of the agreement. In many cases, we limit the maximum amount of our indemnification obligations, but in some cases those obligations may be theoretically unlimited. We have not incurred material expenses in discharging any of these indemnification obligations, and based on our analysis of the nature of the risks involved, we believe that the fair value of the liabilities potentially arising under these agreements is minimal. Accordingly, we have recorded no liabilities for such obligations as of June 30, 2018. We are committed to purchasing certain key parts (syringes) and services (formulation, filling and packaging of Drug Product) pertaining to our mastitis product exclusively from two contractors. If we do not achieve regulatory approval by December 17, 2019, we would be liable for a $100,000 termination fee under one of such agreements and be forced to have these services performed by another party. During the second quarter of 2009, we entered into an exclusive and perpetual license (unless terminated for cause) with the Baylor College of Medicine covering the underlying rotavirus vaccine technology used to generate the specific antibodies for our product line extension, Tri-Shield™ First Defense ® Dual-Force™ During the third quarter of 2016, we initiated construction of our Nisin production facility. The estimated total cost of the Nisin facility is approximately $21,000,000. As of June 30, 2018, we had incurred approximately $20,808,000 of capital expenditures related to this project, of which $20,806,000 had been paid as of June 30, 2018. The majority of the remainder of this investment is expected to be paid during the third quarter of 2018. In addition to the commitments related to our Nisin production facility discussed above, we had committed $744,000 to the purchase of inventory, $31,000 to capital expeditures and $134,000 to other obligations as of June 30, 2018. |
Segment Information
Segment Information | 6 Months Ended |
Jun. 30, 2018 | |
Segment Information [Abstract] | |
SEGMENT INFORMATION | 16. SEGMENT INFORMATION We principally operate in the business segment described in Note 1. Pursuant to Codification Topic 280, Segment Reporting Sales of the First Defense ® |
Related Party Transactions
Related Party Transactions | 6 Months Ended |
Jun. 30, 2018 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | 17 . RELATED PARTY TRANSACTIONS Dr. David S. Tomsche (Chair of our Board of Directors) is a controlling owner of Leedstone Inc. (formerly Stearns Veterinary Outlet, Inc.), a domestic distributor of ImmuCell products (the First Defense ® CMT |
Employee Benefits
Employee Benefits | 6 Months Ended |
Jun. 30, 2018 | |
Employee Benefits [Abstract] | |
EMPLOYEE BENEFITS | 18. EMPLOYEE BENEFITS We have a 401(k) savings plan (the Plan) in which all employees completing one month of service with the Company are eligible to participate. Participants may contribute up to the maximum amount allowed by the Internal Revenue Service. We currently match 100% of the first 3% of each employee’s salary that is contributed to the Plan and 50% of the next 2% of each employee’s salary that is contributed to the Plan. Under this matching plan, we paid $29,366 and $24,314 into the plan for the three-month periods ended June 30, 2018 and 2017, respectively, and $54,012 and $43,022 for the six-month periods ended June 30, 2018 and 2017, respectively. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | 19. SUBSEQUENT EVENTS We have evaluated subsequent events through the time of filing on August 13, 2018, the date we have issued this Quarterly Report on Form 10-Q. As of such date, with the exception of the transaction described in the next paragraph, there were no material, reportable subsequent events. During July 2018, we sold certain non-core assets for $700,000 to TCS Biosciences Ltd of Buckingham, United Kingdom. The sale includes the cell line and intellectual property underlying our diagnostic test to detect the presence of Cryptosporidium in drinking water. A payment of $250,000 was received up front, and the remaining $450,000 is due in two payments during the second half of 2019. We retained the rights to all animal health, diagnostic, feed and nutritional applications of this technology. This agreement also includes a purchase order for product worth approximately $125,000 that may be sold to TCS during the first quarter of 2019. |
Summary of Significant Accoun26
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | (a) Basis of Presentation We have prepared the accompanying unaudited condensed financial statements reflecting all adjustments that are, in our opinion, necessary in order to ensure that the financial statements are not misleading. We follow accounting standards set by the Financial Accounting Standards Board (FASB). The FASB sets generally accepted accounting principles (GAAP) that we follow to ensure we consistently report our financial condition, results of operations, earnings per share and cash flows. References to GAAP in these footnotes are to the FASB Accounting Standards Codification |
Cash and Cash Equivalents | (b) Cash and Cash Equivalents We consider all highly liquid investment instruments that mature within three months of their purchase dates to be cash equivalents. Cash equivalents are principally invested in securities backed by the U.S. government. Certain cash balances in excess of Federal Deposit Insurance Corporation (FDIC) limits of $250,000 per financial institution per depositor are maintained in money market accounts at financial institutions that are secured, in part, by the Securities Investor Protection Corporation. Amounts in excess of these FDIC limits per bank that are not invested in securities backed by the U.S. government aggregated $2,262,224 and $3,546,529 as of June 30, 2018 and December 31, 2017, respectively. We account for investments in marketable securities in accordance with Codification Topic 320, Investments – Debt and Equity Securities |
Inventory | (c) Inventory Inventory includes raw materials, work-in-process and finished goods and is recorded at the lower of cost, on the first-in, first-out method, or net realizable value (determined as the estimated selling price in the normal course of business, less reasonably predictable costs of completion, disposal and transportation). Work-in-process and finished goods inventories include materials, labor and manufacturing overhead. At each balance sheet date, we evaluate our ending inventories for excess quantities and obsolescence. Inventories that we consider excess or obsolete are reserved. Once inventory is written down and a new cost basis is established, it is not written back up if demand increases. See Note 4. |
Accounts Receivable | (d) Accounts Receivable Accounts receivable are carried at the original invoice amount less an estimate made for doubtful collection. Management determines the allowance for doubtful accounts on a monthly basis by identifying troubled accounts and by using historical experience applied to an aging of accounts. Accounts receivable are considered to be past due if a portion of the receivable balance is outstanding for more than 30 days. Past due accounts receivable are subject to an interest charge. Accounts receivable are written off when deemed uncollectible. The amount of accounts receivable written off during all periods reported was immaterial. Recoveries of accounts receivable previously written off are recorded as income when received. As of June 30, 2018, we determined that no allowance for doubtful accounts was necessary. |
Property, Plant and Equipment | (e) Property, Plant and Equipment We depreciate property, plant and equipment on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. The facility we have constructed to produce the active pharmaceutical ingredient, Nisin, is being depreciated over 39 years from when a certificate of occupancy was issued during the fourth quarter of 2017. We are evaluating the estimated useful lives of the assets included in construction in progress since they were not placed in service as of June 30, 2018. Significant repairs to fixed assets that benefit more than a current period are capitalized and depreciated over their useful lives. Insignificant repairs are expensed when incurred. See Note 6. |
Intangible Assets and Goodwill | (f) Intangible Assets and Goodwill We amortize intangible assets on the straight-line method by charges to operations in amounts estimated to expense the cost of the assets from the date they are first put into service to the end of the estimated useful lives of the assets. We have recorded intangible assets related to customer relationships, non-compete agreements, and developed technology, each with defined useful lives. We have classified as goodwill the amounts paid in excess of fair value of the net assets (including tax attributes) acquired in purchase transactions. We assess the impairment of intangible assets and goodwill that have indefinite lives at the reporting unit level on an annual basis (as of December 31st) and whenever events or changes in circumstances indicate that the carrying value of the asset may not be recoverable. We would record an impairment charge if such an assessment were to indicate that the fair value of such assets was less than the carrying value. Judgment is required in determining whether an event has occurred that may impair the value of goodwill or identifiable intangible assets. Factors that could indicate that an impairment may exist include significant under-performance relative to plan or long-term projections, significant changes in business strategy and significant negative industry or economic trends. Although we believe intangible assets and goodwill are appropriately stated in the accompanying financial statements, changes in strategy or market conditions could significantly impact these judgments and require an adjustment to the recorded balance. No impairments were recorded during the six-month period ended June 30, 2018 or the year ended December 31, 2017. See Notes 2(h), 7 and 8 for additional disclosures. |
Fair Value Measurements | (g) Fair Value Measurements In determining fair value measurements, we follow the provisions of Codification Topic 820, Fair Value Measurements and Disclosures Level 1 - Pricing inputs are quoted prices available in active markets for identical assets or liabilities as of the measurement date. Level 2 - Pricing inputs are quoted prices for similar assets or liabilities, or inputs that are observable, either directly or indirectly, for substantially the full term through corroboration with observable market data. Level 3 - Pricing inputs are unobservable for the assets or liabilities, that is, inputs that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, an asset’s or liability’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. Our assessment of the significance of a particular input to the fair value measurement in its entirety requires judgment, and considers factors specific to the investment. We hold money market mutual funds in a brokerage account, which are classified as cash equivalents and measured at fair value. The fair value of these investments is based on their closing published net asset value. We assess the levels of the investments at each measurement date, and transfers between levels are recognized on the actual date of the event or change in circumstances that caused the transfer in accordance with our accounting policy regarding the recognition of transfers between levels of the fair value hierarchy. During the six-month period ended June 30, 2018 and the year ended December 31, 2017, there were no transfers between levels. As of June 30, 2018 and December 31, 2017, our Level 1 assets measured at fair value by quoted prices in active markets consisted of bank savings accounts and money market funds. As of June 30, 2018 and December 31, 2017, our interest rate swaps were classified as Level 2 and were measured by observable market data in combination with expected cash flows for each instrument. There were no assets or liabilities measured at fair value on a nonrecurring basis as of June 30, 2018 or December 31, 2017. As of June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and money market accounts $ 2,514,519 $ - $ - $ 2,514,519 Interest rate swaps $ - $ 79,283 $ - $ 79,283 As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash and money market accounts $ 3,798,811 $ - $ - $ 3,798,811 Liabilities: Interest rate swaps $ - $ (996 ) $ - $ (996 ) |
Valuation of Long-Lived Assets | (h) Valuation of Long-Lived Assets We periodically evaluate our long-lived assets, consisting principally of fixed assets and amortizable intangible assets, for potential impairment. In accordance with the applicable accounting guidance for the treatment of long-lived assets, we review the carrying value of our long-lived assets or asset group that is held and used, including intangible assets subject to amortization, for impairment whenever events and circumstances indicate that the carrying value of the assets may not be recoverable. Under the held for use approach, the asset or asset group to be tested for impairment should represent the lowest level for which identifiable cash flows are largely independent of the cash flows of other groups of assets and liabilities. We evaluate our long-lived assets whenever events or circumstances suggest that the carrying amount of an asset or group of assets may not be recoverable. No impairment was recognized during the six-month period ended June 30, 2018 or the year ended December 31, 2017. |
Concentration of Risk | (i) Concentration of Risk Concentration of credit risk with respect to accounts receivable is principally limited to certain customers to whom we make substantial sales. To reduce risk, we routinely assess the financial strength of our customers and, as a consequence, believe that our accounts receivable credit risk exposure is limited. We maintain an allowance for potential credit losses when deemed necessary, but historically we have not experienced significant credit losses related to an individual customer or groups of customers in any particular industry or geographic area. Sales to significant customers that amounted to 10% or more of total product sales are detailed in the following table: For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 Animal Health International, Inc. 44 % 42 % 40 % 41 % MWI Animal Health 20 % 19 % 22 % 24 % ANIMART LLC 11 % * 11 % * Accounts receivable due from significant customers amounted to the percentges of total trade accounts receivable as detailed in the following table: As of June 30, As of December 31, Animal Health International, Inc. 50 % 40 % MWI Animal Health 19 % 29 % ANIMART LLC 11 % * * Amount is less than 10%. We believe that supplies and raw materials for the production of our products are available from more than one vendor or farm. Our policy is to maintain more than one source of supply for the components used in our products. However, there is a risk that we could have difficulty in efficiently acquiring essential supplies. |
Interest Rate Swap Agreements | (j) Interest Rate Swap Agreements All derivatives are recognized on the balance sheet at their fair value. We entered into interest rate swap agreements in 2010 and 2015. On the dates the agreements were entered into, we designated the derivatives as hedges of the variability of cash flows to be paid related to our long-term debt. The agreements have been determined to be highly effective in hedging the variability of identified cash flows, so changes in the fair market value of the interest rate swap agreements are recorded as comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). We formally documented the relationship between the interest rate swap agreements and the related hedged items. We also formally assess, both at the interest rate swap agreements’ inception and on an ongoing basis, whether the agreements are highly effective in offsetting changes in cash flow of hedged items. See Note 10. |
Revenue Recognition | (k) Revenue Recognition We sell products that provide immediate immunity to newborn dairy and beef cattle. For periods ended on and before December 31, 2017, we recognized revenue in accordance with ASC 605 when four criteria were met. These included i) persuasive evidence that an arrangement existed, ii) delivery had occurred, iii) our price was fixed and determinable and iv) collectability was reasonably assured. For periods beginning after December 31, 2017, we recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers |
Expense Recognition | (l) Expense Recognition In 2018, we adopted ASC 340-40, Accounting for Other Assets and Deferred Costs |
Income Taxes | (m) Income Taxes We account for income taxes in accordance with Codification Topic 740, Income Taxes |
Stock-Based Compensation | (n) Stock-Based Compensation We account for stock-based compensation in accordance with Codification Topic 718, Compensation-Stock Compensation |
Net (Loss) Income Per Common Share | (o) Net (Loss) Income Per Common Share Net (loss) income per common share has been computed in accordance with Codification Topic 260-10, Earnings Per Share. For the Three-Month For the Six-Month 2018 2017 2018 2017 Weighted average number of shares outstanding 5,481,417 4,848,390 5,479,679 4,847,976 Effect of dilutive stock options - - - 95,327 Diluted number of shares outstanding 5,481,417 4,848,390 5,479,679 4,943,303 Outstanding stock options not included in the calculation because the effect would be anti-dilutive 480,000 368,000 480,000 120,000 |
Use of Estimates | (p) Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Although we regularly assess these estimates, actual amounts could differ from those estimates. Changes in estimates are recorded during the period in which they become known. Significant estimates include our inventory valuation, valuation of goodwill and long-lived assets, accrued expenses, costs of goods sold, and useful lives of intangible assets. |
New Accounting Pronouncements | (q) New Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, Leases In May 2017, the FASB issued ASU 2017-09, Compensation-Stock Compensation (Topic 718) Scope of Modification Accounting |
Summary of Significant Accoun27
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Summary of Significant Accounting Policies [Abstract] | |
Schedule of financial assets measured at fair value on nonrecurring basis | As of June 30, 2018 Level 1 Level 2 Level 3 Total Assets: Cash and money market accounts $ 2,514,519 $ - $ - $ 2,514,519 Interest rate swaps $ - $ 79,283 $ - $ 79,283 As of December 31, 2017 Level 1 Level 2 Level 3 Total Assets: Cash and money market accounts $ 3,798,811 $ - $ - $ 3,798,811 Liabilities: Interest rate swaps $ - $ (996 ) $ - $ (996 ) |
Schedule of sales to significant customers | For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 Animal Health International, Inc. 44 % 42 % 40 % 41 % MWI Animal Health 20 % 19 % 22 % 24 % ANIMART LLC 11 % * 11 % * * Amount is less than 10%. |
Schedule of accounts receivable due from significant customers | As of June 30, As of December 31, Animal Health International, Inc. 50 % 40 % MWI Animal Health 19 % 29 % ANIMART LLC 11 % * * Amount is less than 10%. |
Schedule of weighted average and diluted number of shares outstanding | For the Three-Month For the Six-Month 2018 2017 2018 2017 Weighted average number of shares outstanding 5,481,417 4,848,390 5,479,679 4,847,976 Effect of dilutive stock options - - - 95,327 Diluted number of shares outstanding 5,481,417 4,848,390 5,479,679 4,943,303 Outstanding stock options not included in the calculation because the effect would be anti-dilutive 480,000 368,000 480,000 120,000 |
Cash and Cash Equivalents (Tabl
Cash and Cash Equivalents (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of cash and cash equivalents | As of June 30, As of December 31, 2017 Cash and cash equivalents $ 2,514,519 $ 3,798,811 |
Inventory (Tables)
Inventory (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Inventory [Abstract] | |
Schedule of inventory | As of June 30, As of December 31, 2017 Raw materials $ 364,919 $ 483,329 Work-in-process 1,311,597 1,349,649 Finished goods 160,378 216,754 Total $ 1,836,894 $ 2,049,732 |
Prepaid Expenses and Other Cu30
Prepaid Expenses and Other Current Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Prepaid Expenses and Other Current Assets [Abstract] | |
Schedule of prepaid expenses and other current assets | As of June 30, As of December 31, 2017 Prepaid expenses $ 325,209 $ 130,813 Other receivables 127,910 149,590 Security deposits (1) 34,264 34,264 Total $ 487,383 $ 314,667 (1) This amount consists of the current portion of escrow funds held against certain construction performance requirements. |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | Estimated Useful Lives (in years) As of June 30, As of December 31, 2017 Laboratory and manufacturing equipment 3-10 $ 5,652,363 $ 5,511,452 Building and improvements 10-39 17,006,716 16,966,728 Office furniture and equipment 3-10 698,877 698,877 Construction in progress 9,209,130 8,315,436 Land 518,999 518,999 Property, plant and equipment, gross 33,086,085 32,011,492 Accumulated depreciation (6,496,154 ) (5,941,803 ) Property, plant and equipment, net $ 26,589,931 $ 26,069,689 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Intangible Assets [Abstract] | |
Schedule of intangible amortization expense | Period Amount Six-month period ending December 31, 2018 $ 9,552 Year ending December 31, 2019 19,104 Year ending December 31, 2020 19,104 Year ending December 31, 2021 19,104 Year ending December 31, 2022 19,104 After December 31, 2022 57,312 Total $ 143,280 |
Schedule of intangible assets | Intangible assets as of June 30, 2018 consisted of the following: Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 184,100 $ (46,025 ) $ 138,075 Customer relationships 1,300 (325 ) 975 Non-compete agreements 5,640 (1,410 ) 4,230 Total $ 191,040 $ (47,760 ) $ 143,280 Intangible assets as of December 31, 2017 consisted of the following: Gross Carrying Value Accumulated Amortization Net Book Value Developed technology $ 184,100 $ (36,820 ) $ 147,280 Customer relationships 1,300 (260 ) 1,040 Non-compete agreements 5,640 (1,128 ) 4,512 Total $ 191,040 $ (38,208 ) $ 152,832 |
Accounts Payable and Accrued 33
Accounts Payable and Accrued Expenses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Accounts Payable and Accrued Expenses [Abstract] | |
Schedule of accounts payable and accrued expenses | As of June 30, As of December 31, 2017 Accounts payable – capital $ 7,039 $ 641,389 Accounts payable – trade 395,585 580,456 Accrued payroll 185,327 254,743 Accrued professional fees 82,390 64,200 Accrued other 113,440 182,482 Total $ 783,781 $ 1,723,270 |
Bank Debt (Tables)
Bank Debt (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Bank Debt [Abstract] | |
Schedule of interest rate swaps classified as level 2 fair value | For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 Payments required by interest rate swaps $ 2,824 $ 10,044 $ 8,109 $ 21,720 Other comprehensive income (loss), net of taxes $ 16,241 $ (8,476 ) $ 60,100 $ 1,594 |
Schedule of debt proceeds received and principal repayments made during the year | For the Three-Month Period Ended June 30, 2018 For the Three-Month Period Ended June 30, 2017 Proceeds from Debt Issuance Debt Principal Repayments Proceeds from Debt Issuance Debt Principal Repayments Loan #1 $ - $ (15,888 ) $ - $ (14,952 ) Loan #2 - (21,279 ) - (20,343 ) Loan #3 - - 500,000 - Loan #4 - (32,000 ) - - Loan #5 - (2,779 ) - (2,982 ) Total $ - $ (71,946 ) $ 500,000 $ (38,277 ) |
Schedule of principal payments due under debt outstanding | Six-Months Year Year Year Year After 12/31/2022 Total Loan #1 $ 33,100 $ 68,908 $ 493,696 $ - $ - $ - $ 595,704 Loan #2 43,539 89,997 94,005 98,538 103,077 1,848,151 2,277,307 Loan #3 (1) 108,411 445,280 464,496 484,541 505,452 1,505,321 3,513,501 Loan #4 (1) 41,840 86,379 90,106 93,995 98,051 2,117,629 2,528,000 Loan #5 (2) 5,792 11,953 12,462 12,994 13,548 269,224 325,973 Total $ 232,682 $ 702,517 $ 1,154,765 $ 690,068 $ 720,128 $ 5,740,325 $ 9,240,485 Debt Issuance Costs (121,559 ) Total $ 9,118,926 (1) These notes bear interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. Figures in this table are estimated using an interest rate of approximately 4.23%. The actual interest rate and principal payments will be different. (2) This note bears interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. Figures in this table are estimated using an interest rate of approximately 4.18%. The actual interest rate and principal payments will be different. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Stockholders' Equity [Abstract] | |
Schedule of activity under the stock option plans | 2000 Plan 2010 Plan 2017 Plan Weighted Aggregate Intrinsic Value (1) Outstanding at December 31, 2016 126,500 124,500 - $ 3.89 $ 516,990 Grants - 141,000 - $ 5.92 Terminations (5,000 ) (16,000 ) - $ 5.68 Exercises (4,000 ) (7,000 ) - $ 3.47 Outstanding at December 31, 2017 117,500 242,500 - $ 4.58 $ 1,513,980 Grants - 38,500 106,500 $ 7.35 Terminations - (9,000 ) (5,000 ) $ 6.27 Exercises (10,000 ) (1,000 ) - $ 3.26 Outstanding at June 30, 2018 107,500 271,000 101,500 $ 5.40 $ 680,620 Vested at June 30, 2018 107,500 37,500 - $ 2.60 $ 611,810 Vested and expected to vest at June 30, 2018 107,500 271,000 101,500 $ 5.40 $ 680,620 Reserved for future grants - 1,000 198,500 (1) Intrinsic value is the difference between the fair market value as of the date indicated and as of the date of the option grant. |
Schedule of fair value stock option grant using black-scholes option valuation model with the weighted-average assumptions | For the Three-Month Period Ended June 30, For the Six-Month Period Ended June 30, For the Year Ended December 31, 2017 Risk-free interest rate 2.8% 2.5% 1.9% Dividend yield 0% 0% 0% Expected volatility 55% 57% 61% Expected life 6.5 years 6.5 years 6.5 years |
Revenue (Tables)
Revenue (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Major Product Category [Member] | |
Disaggregation of Revenue [Line Items] | |
Schedule of revenue disaggregated by geographic area and major product category | For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 First Defense ® product line $ 2,883,482 $ 1,653,650 $ 5,664,351 $ 4,897,354 Other animal health 131,064 95,955 231,380 299,782 Other - - - 96,400 Total $ 3,014,546 $ 1,749,605 $ 5,895,731 $ 5,293,536 |
Geographical [Member] | |
Disaggregation of Revenue [Line Items] | |
Schedule of revenue disaggregated by geographic area and major product category | For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 United States $ 2,544,133 $ 1,583,848 $ 5,139,749 $ 4,380,024 Other 470,413 165,757 755,982 913,512 Total $ 3,014,546 $ 1,749,605 $ 5,895,731 $ 5,293,536 |
Other Expenses, Net (Tables)
Other Expenses, Net (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Other Expenses, Net [Abstract] | |
Schedule of other expenses, net | For the Three-Month Periods Ended June 30, For the Six-Month Periods Ended June 30, 2018 2017 2018 2017 Interest expense $ 106,268 $ 43,493 $ 202,284 $ 83,395 Interest income (3,209 ) (6,418 ) (7,033 ) (12,375 ) Other losses (gains) 75 (679 ) - (4,382 ) Other expenses, net $ 103,134 $ 36,396 $ 195,251 $ 66,638 |
Summary of Significant Accoun38
Summary of Significant Accounting Policies (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Assets: | ||
Cash and money market accounts | $ 2,514,519 | $ 3,798,811 |
Interest rate swaps | 79,283 | |
Liabilities: | ||
Interest rate swaps | (996) | |
Level 1 [Member] | ||
Assets: | ||
Cash and money market accounts | 2,514,519 | 3,798,811 |
Interest rate swaps | ||
Liabilities: | ||
Interest rate swaps | ||
Level 2 [Member] | ||
Assets: | ||
Cash and money market accounts | ||
Interest rate swaps | 79,283 | |
Liabilities: | ||
Interest rate swaps | (996) | |
Level 3 [Member] | ||
Assets: | ||
Cash and money market accounts | ||
Interest rate swaps | ||
Liabilities: | ||
Interest rate swaps |
Summary of Significant Accoun39
Summary of Significant Accounting Policies (Details 1) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |||
Animal Health International, Inc. [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration risk percentage | 44.00% | 42.00% | 40.00% | 41.00% | ||
MWI Animal Health [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration risk percentage | 20.00% | 19.00% | 22.00% | 24.00% | ||
ANIMART LLC [Member] | ||||||
Revenue, Major Customer [Line Items] | ||||||
Concentration risk percentage | 11.00% | [1] | 11.00% | [1] | ||
[1] | Amount is less than 10%. |
Summary of Significant Accoun40
Summary of Significant Accounting Policies (Details 2) | Jun. 30, 2018 | Dec. 31, 2017 | |
Animal Health International, Inc. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Accounts receivable due from significant customers | 50.00% | 40.00% | |
MWI Animal Health [Member] | |||
Revenue, Major Customer [Line Items] | |||
Accounts receivable due from significant customers | 19.00% | 29.00% | |
ANIMART LLC [Member] | |||
Revenue, Major Customer [Line Items] | |||
Accounts receivable due from significant customers | 11.00% | [1] | |
[1] | Amount is less than 10%. |
Summary of Significant Accoun41
Summary of Significant Accounting Policies (Details 3) - shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Summary of Significant Accounting Policies [Abstract] | ||||
Weighted average number of shares outstanding | 5,481,417 | 4,848,390 | 5,479,679 | 4,847,976 |
Effect of dilutive stock options | 95,327 | |||
Diluted number of shares outstanding | 5,481,417 | 4,848,390 | 5,479,679 | 4,943,303 |
Outstanding stock options not included in the calculation because the effect would be anti-dilutive | 480,000 | 368,000 | 480,000 | 120,000 |
Summary of Significant Accoun42
Summary of Significant Accounting Policies (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Summary of Significant Accounting Policies (Textual) | |||||
Federal deposit insurance corporation limits | $ 250,000 | $ 250,000 | |||
U.S. government aggregated amount | 2,262,224 | 2,262,224 | $ 3,546,529 | ||
Advertising expenses | 1,229 | $ 3,280 | 22,995 | $ 32,337 | |
Stock-based compensation | 96,943 | $ 54,350 | $ 167,991 | $ 101,113 | |
Concentration risk percentage, description | Sales to significant customers that amounted to 10% or more of total product sales. | ||||
Property, plant and equipment, description | The facility we have constructed to produce the active pharmaceutical ingredient, Nisin, is being depreciated over 39 years from when a certificate of occupancy was issued during the fourth quarter of 2017. We are evaluating the estimated useful lives of the assets included in construction in progress since they were not placed in service as of June 30, 2018. Significant repairs to fixed assets that benefit more than a current period are capitalized and depreciated over their useful lives. | ||||
Deferred tax assets | $ 563,252 | $ 563,252 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of cash and cash equivalents | ||||
Cash and cash equivalents | $ 2,514,519 | $ 3,798,811 | $ 3,847,632 | $ 5,150,344 |
Cash and Cash Equivalents (De44
Cash and Cash Equivalents (Details Textual) | 6 Months Ended |
Jun. 30, 2018 | |
Cash and Cash Equivalents (Textual) | |
Debt covenant, description | Debt covenant to maintain at least $2,000,000 of otherwise unrestricted cash, cash equivalents and short-term investments. |
Inventory (Details)
Inventory (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Schedule of inventory | ||
Raw materials | $ 364,919 | $ 483,329 |
Work-in-process | 1,311,597 | 1,349,649 |
Finished goods | 160,378 | 216,754 |
Total | $ 1,836,894 | $ 2,049,732 |
Prepaid Expenses and Other Cu46
Prepaid Expenses and Other Current Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 | |
Prepaid Expenses and Other Current Assets [Abstract] | |||
Prepaid expenses | $ 325,209 | $ 130,813 | |
Other receivables | 127,910 | 149,590 | |
Security deposits | [1] | 34,264 | 34,264 |
Total | $ 487,383 | $ 314,667 | |
[1] | This amount consists of the current portion of escrow funds held against certain construction performance requirements. |
Property, Plant and Equipment47
Property, Plant and Equipment (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 33,086,085 | $ 32,011,492 |
Accumulated depreciation | (6,496,154) | (5,941,803) |
Property, plant and equipment, net | 26,589,931 | 26,069,689 |
Laboratory and manufacturing equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 5,652,363 | 5,511,452 |
Laboratory and manufacturing equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 3 years | |
Laboratory and manufacturing equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 10 years | |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 17,006,716 | 16,966,728 |
Building and improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 10 years | |
Building and improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 39 years | |
Office furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 698,877 | 698,877 |
Office furniture and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 3 years | |
Office furniture and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, Estimated Useful Lives | 10 years | |
Construction in progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 9,209,130 | 8,315,436 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, plant and equipment, gross | $ 518,999 | $ 518,999 |
Property, Plant and Equipment48
Property, Plant and Equipment (Details Textual) - USD ($) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment (Textual) | ||
Property, plant and equipment, disposals | $ 6,730 | $ 435,448 |
Business Acquisition (Details)
Business Acquisition (Details) - USD ($) | Jan. 04, 2016 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Sep. 30, 2016 |
Business Acquisition (Textual) | |||||
Total purchase price | $ 532,000 | ||||
Amount paid on acquisition | 368,000 | ||||
Technology transfer payment | $ 97,000 | ||||
Aggregate royalties payment | 67,000 | ||||
Estimated fair values of accounts payable and accrued expenses | $ 10,000 | $ 18,000 | |||
Royalty expense | $ 8,355 | $ 4,892 | |||
Estimated fair values of inventory | 113,000 | ||||
Estimated fair values of machinery and equipment | 132,000 | ||||
Estimated fair values of intangible assets | 191,000 | ||||
Estimated fair values of goodwill | $ 96,000 |
Intangible Assets (Details)
Intangible Assets (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Summary of intangible amortization expense | ||
Six-month period ending December 31, 2018 | $ 9,552 | |
Year ending December 31, 2019 | 19,104 | |
Year ending December 31, 2020 | 19,104 | |
Year ending December 31, 2021 | 19,104 | |
Year ending December 31, 2022 | 19,104 | |
After December 31, 2022 | 57,312 | |
Total | $ 143,280 | $ 152,832 |
Intangible Assets (Details 1)
Intangible Assets (Details 1) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | $ 191,040 | $ 191,040 |
Accumulated Amortization | (47,760) | (38,208) |
Net Book Value | 143,280 | 152,832 |
Developed technology [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 184,100 | 184,100 |
Accumulated Amortization | (46,025) | (36,820) |
Net Book Value | 138,075 | 147,280 |
Customer relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 1,300 | 1,300 |
Accumulated Amortization | (325) | (260) |
Net Book Value | 975 | 1,040 |
Non-compete agreements [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Value | 5,640 | 5,640 |
Accumulated Amortization | (1,410) | (1,128) |
Net Book Value | $ 4,230 | $ 4,512 |
Intangible Assets (Details Text
Intangible Assets (Details Textual) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Intangible Assets (Textual) | |||||
Intangible amortization expense | $ 4,776 | $ 4,776 | $ 9,552 | $ 9,552 | |
Intangible asset amortized, useful lives | 10 years | ||||
Net value | $ 143,280 | $ 143,280 | $ 152,832 |
Accounts Payable and Accrued 53
Accounts Payable and Accrued Expenses (Details) - USD ($) | Jun. 30, 2018 | Dec. 31, 2017 |
Accounts Payable and Accrued Expenses [Abstract] | ||
Accounts payable - capital | $ 7,039 | $ 641,389 |
Accounts payable - trade | 395,585 | 580,456 |
Accrued payroll | 185,327 | 254,743 |
Accrued professional fees | 82,390 | 64,200 |
Accrued other | 113,440 | 182,482 |
Total | $ 783,781 | $ 1,723,270 |
Bank Debt (Details)
Bank Debt (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Bank Debt [Abstract] | ||||
Payments required by interest rate swaps | $ 2,824 | $ 10,044 | $ 8,109 | $ 21,720 |
Other comprehensive income (loss), net of taxes | $ 16,241 | $ (8,476) | $ 60,100 | $ 1,594 |
Bank Debt (Details 1)
Bank Debt (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Debt Instrument [Line Items] | ||||
Proceeds from debt issuance | $ 500,000 | $ 267,141 | $ 840,000 | |
Debt Principal Repayments | (71,946) | (38,277) | (111,749) | (73,572) |
Loan #1 [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from debt issuance | ||||
Debt Principal Repayments | (15,888) | (14,952) | (31,776) | (29,904) |
Loan #2 [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from debt issuance | ||||
Debt Principal Repayments | (21,279) | (20,343) | (42,558) | (40,686) |
Loan #3 [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from debt issuance | 500,000 | 500,000 | ||
Debt Principal Repayments | ||||
Loan #4 [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from debt issuance | 267,141 | |||
Debt Principal Repayments | (32,000) | (32,000) | ||
Loan #5 [Member] | ||||
Debt Instrument [Line Items] | ||||
Proceeds from debt issuance | 340,000 | |||
Debt Principal Repayments | $ (2,779) | $ (2,982) | $ (5,415) | $ (2,982) |
Bank Debt (Details 2)
Bank Debt (Details 2) | Jun. 30, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Six-Months ending 12/31/2018 | $ 232,682 | |
Year ending 12/31/2019 | 702,517 | |
Year ending 12/31/2020 | 1,154,765 | |
Year ending 12/31/2021 | 690,068 | |
Year ending 12/31/2022 | 720,128 | |
After 12/31/2022 | 5,740,325 | |
Subtotal | 9,240,485 | |
Debt Issuance Costs | (121,559) | |
Total | 9,118,926 | |
Loan #1 [Member] | ||
Debt Instrument [Line Items] | ||
Six-Months ending 12/31/2018 | 33,100 | |
Year ending 12/31/2019 | 68,908 | |
Year ending 12/31/2020 | 493,696 | |
Year ending 12/31/2021 | ||
Year ending 12/31/2022 | ||
After 12/31/2022 | ||
Subtotal | 595,704 | |
Loan #2 [Member] | ||
Debt Instrument [Line Items] | ||
Six-Months ending 12/31/2018 | 43,539 | |
Year ending 12/31/2019 | 89,997 | |
Year ending 12/31/2020 | 94,005 | |
Year ending 12/31/2021 | 98,538 | |
Year ending 12/31/2022 | 103,077 | |
After 12/31/2022 | 1,848,151 | |
Subtotal | 2,277,307 | |
Loan #3 [Member] | ||
Debt Instrument [Line Items] | ||
Six-Months ending 12/31/2018 | 108,411 | [1] |
Year ending 12/31/2019 | 445,280 | [1] |
Year ending 12/31/2020 | 464,496 | [1] |
Year ending 12/31/2021 | 484,541 | [1] |
Year ending 12/31/2022 | 505,452 | [1] |
After 12/31/2022 | 1,505,321 | [1] |
Subtotal | 3,513,501 | [1] |
Loan #4 [Member] | ||
Debt Instrument [Line Items] | ||
Six-Months ending 12/31/2018 | 41,840 | [1] |
Year ending 12/31/2019 | 86,379 | [1] |
Year ending 12/31/2020 | 90,106 | [1] |
Year ending 12/31/2021 | 93,995 | [1] |
Year ending 12/31/2022 | 98,051 | [1] |
After 12/31/2022 | 2,117,629 | [1] |
Subtotal | 2,528,000 | [1] |
Loan #5 [Member] | ||
Debt Instrument [Line Items] | ||
Six-Months ending 12/31/2018 | 5,792 | [2] |
Year ending 12/31/2019 | 11,953 | [2] |
Year ending 12/31/2020 | 12,462 | [2] |
Year ending 12/31/2021 | 12,994 | [2] |
Year ending 12/31/2022 | 13,548 | [2] |
After 12/31/2022 | 269,224 | [2] |
Subtotal | $ 325,973 | [2] |
[1] | These notes bear interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. Figures in this table are estimated using an interest rate of approximately 4.23%. The actual interest rate and principal payments will be different. | |
[2] | This note bears interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. Figures in this table are estimated using an interest rate of approximately 4.18%. The actual interest rate and principal payments will be different. |
Bank Debt (Details Textual)
Bank Debt (Details Textual) | 3 Months Ended | 6 Months Ended | ||||
Mar. 31, 2017USD ($)ft²CreditFacilities | Mar. 31, 2016USD ($)CreditFacilities | Sep. 30, 2015USD ($) | Sep. 30, 2010USD ($) | Jun. 30, 2018USD ($)CreditFacilities | Jun. 30, 2017USD ($) | |
Bank Debt (Textual) | ||||||
Number of credit facilities | CreditFacilities | 5 | |||||
Debt issue costs | $ 522 | $ 62,314 | ||||
Credit facilities [Member] | ||||||
Bank Debt (Textual) | ||||||
Number of credit facilities | CreditFacilities | 2 | 2 | ||||
Credit facility aggregate value | $ 6,500,000 | $ 4,500,000 | ||||
Variable interest rate with LIBOR, description | These notes bear interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. | |||||
Variable interest rate | 4.23% | |||||
Debt issue costs | 66,622 | $ 46,734 | $ 34,125 | $ 26,489 | ||
Credit facilities one [Member] | ||||||
Bank Debt (Textual) | ||||||
Variable interest rate with LIBOR, description | This note bears interest at a variable rate equal to the one-month LIBOR plus a margin of 2.25%. | |||||
Variable interest rate | 4.18% | |||||
Interest rate swaps [Member] | ||||||
Bank Debt (Textual) | ||||||
Variable interest rate with LIBOR, description | Interest rate exposures on Loan #1 and Loan #2 with interest rate swap agreements that effectively converted floating interest rates based on the one-month LIBOR plus a margin of 3.25% and 2.25% to the fixed rates of 6.04% and 4.38%, respectively. As of June 30, 2018, the variable rates on these two mortgage notes were approximately 5.30% and 4.34%, respectively. | |||||
Original notional amount | $ 2,873,011 | |||||
Interest rate swaps [Member] | Loan One [Member] | ||||||
Bank Debt (Textual) | ||||||
Variable interest rate | 5.30% | |||||
Original notional amount | $ 1,000,000 | |||||
Interest rate swaps [Member] | Mortgage Loan Two [Member] | ||||||
Bank Debt (Textual) | ||||||
Variable interest rate | 4.34% | |||||
Original notional amount | $ 2,500,000 | |||||
TD Bank N.A [Member] | Loan One [Member] | ||||||
Bank Debt (Textual) | ||||||
Maximum limit on issuance of loan, rate | 80.00% | |||||
Proceeds from issuance of loan | $ 1,000,000 | |||||
Interest payments, term | 10 years | |||||
Loan amortization, term | 15 years | |||||
Balloon principal payment | $ 451,885 | |||||
Balloon principal payment due, description | Due during the third quarter of 2020. | |||||
Outstanding amount of loan | 595,704 | |||||
TD Bank N.A [Member] | Mortgage Loan Two [Member] | ||||||
Bank Debt (Textual) | ||||||
Proceeds from issuance of loan | $ 2,500,000 | |||||
Interest payments, term | 10 years | |||||
Loan amortization, term | 20 years | |||||
Balloon principal payment | $ 1,550,000 | |||||
Balloon principal payment due, description | Due during the third quarter of 2025. | |||||
Outstanding amount of loan | $ 2,277,307 | |||||
TD Bank N.A [Member] | Construction Loan Three [Member] | ||||||
Bank Debt (Textual) | ||||||
Maximum limit on issuance of loan, rate | 80.00% | |||||
Proceeds from issuance of loan | $ 3,940,000 | |||||
Loan amortization, term | 7 years | |||||
Outstanding amount of loan | $ 3,513,501 | |||||
Variable interest rate with LIBOR, description | Variable rate equal to the one-month LIBOR (adjusted at each monthly payment date) plus a margin of 2.25% (which was equal to approximately 4.23% for the one-month period beginning July 1, 2018) through September 2018. | |||||
Loan conversion, term | 7 years | |||||
Loan amount available to withdrawn | $ 426,499 | |||||
TD Bank N.A [Member] | Construction Loan Four [Member] | ||||||
Bank Debt (Textual) | ||||||
Maximum limit on issuance of loan, description | Not to exceed 80% (75% prior to the 2017 amendments). | |||||
Proceeds from issuance of loan | $ 2,560,000 | |||||
Interest payments, term | 10 years | |||||
Loan amortization, term | 20 years | |||||
Balloon principal payment | $ 1,625,000 | |||||
Balloon principal payment due, description | Due during the first quarter of 2027. | |||||
Outstanding amount of loan | $ 2,528,000 | |||||
Variable interest rate with LIBOR, description | Variable rate equal to the one-month LIBOR (adjusted at each monthly payment date) plus a margin of 2.25% (which was equal to approximately 4.23% for the one-month period beginning July 1, 2018) through March 2018. | |||||
TD Bank N.A [Member] | Mortgage Loan Five [Member] | ||||||
Bank Debt (Textual) | ||||||
Proceeds from issuance of loan | $ 340,000 | |||||
Interest payments, term | 10 years | |||||
Loan amortization, term | 20 years | |||||
Balloon principal payment | $ 205,000 | |||||
Balloon principal payment due, description | Due during the first quarter of 2027. | |||||
Outstanding amount of loan | $ 325,973 | |||||
Variable interest rate with LIBOR, description | Variable rate equal to the one-month LIBOR (adjusted at each monthly payment date) plus a margin of 2.25% (which was equal to approximately 4.18% for the one-month period beginning June 16, 2018). | |||||
Warehouse and storage facility | ft² | 4,114 | |||||
TD Bank N.A [Member] | Credit facilities [Member] | ||||||
Bank Debt (Textual) | ||||||
Credit facility aggregate value | $ 500,000 | |||||
Variable interest rate with LIBOR, description | Interest on borrowings against the line of credit is variable at the higher of 4.25% per annum or the one-month LIBOR plus 3.5% per annum. |
Stockholders' Equity (Details)
Stockholders' Equity (Details) - Stock Option [Member] - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Weighted Average Exercise Price, Outstanding, Beginning | $ 4.58 | $ 3.89 | |
Weighted Average Exercise Price, Grants | 7.35 | 5.92 | |
Weighted Average Exercise Price, Terminations | 6.27 | 5.68 | |
Weighted Average Exercise Price, Exercises | 3.26 | 3.47 | |
Weighted Average Exercise Price, Outstanding, Ending | 5.40 | $ 4.58 | |
Weighted Average Exercise Price, Vested | 2.60 | ||
Weighted average exercise price, Vested and expected to vest | $ 5.40 | ||
Aggregate Intrinsic Value, Outstanding, Beginning | [1] | $ 1,513,980 | $ 516,990 |
Aggregate Intrinsic Value, Outstanding, Ending | [1] | 680,260 | $ 1,513,980 |
Aggregate Intrinsic Value, Vested | [1] | 611,810 | |
Aggregate Intrinsic Value, Vested and expected to vest | [1] | $ 680,620 | |
2000 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, Beginning balance | 117,500 | 126,500 | |
Grants | |||
Terminations | (5,000) | ||
Exercises | (10,000) | (4,000) | |
Outstanding, Ending balance | 107,500 | 117,500 | |
Vested | 107,500 | ||
Vested and expected to vest | 107,500 | ||
Reserved for future grants | |||
2010 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, Beginning balance | 242,500 | 124,500 | |
Grants | 38,500 | 141,000 | |
Terminations | (9,000) | (16,000) | |
Exercises | (1,000) | (7,000) | |
Outstanding, Ending balance | 271,000 | 242,500 | |
Vested | 37,500 | ||
Vested and expected to vest | 271,000 | ||
Reserved for future grants | 1,000 | ||
2017 Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||
Outstanding, Beginning balance | |||
Grants | 106,500 | ||
Terminations | (5,000) | ||
Exercises | |||
Outstanding, Ending balance | 101,500 | ||
Vested | |||
Vested and expected to vest | 101,500 | ||
Reserved for future grants | 198,500 | ||
[1] | Intrinsic value is the difference between the fair market value as of the date indicated and as of the date of the option grant. |
Stockholders' Equity (Details 1
Stockholders' Equity (Details 1) | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Jun. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 | |
Stockholders' Equity [Abstract] | |||
Risk-free interest rate | 2.80% | 2.50% | 1.90% |
Dividend yield | 0.00% | 0.00% | 0.00% |
Expected volatility | 55.00% | 57.00% | 61.00% |
Expected life | 6 years 6 months | 6 years 6 months | 6 years 6 months |
Stockholders' Equity (Details T
Stockholders' Equity (Details Textual) | Feb. 03, 2016USD ($)$ / sharesshares | Sep. 30, 1995$ / shares | Dec. 21, 2017USD ($)$ / sharesshares | Jul. 27, 2017USD ($)Investors$ / sharesshares | Jun. 30, 2017shares | Oct. 21, 2016USD ($)$ / sharesshares | Oct. 28, 2015USD ($) | Jun. 30, 2010shares | Jun. 30, 2000shares | Jun. 30, 2018USD ($)Employee$ / sharesshares | Jun. 30, 2017USD ($)$ / sharesshares | Jun. 30, 2015 | Dec. 31, 2017Employee$ / sharesshares | Jun. 14, 2018shares | Dec. 31, 2016$ / shares | Jun. 15, 2016shares | Jun. 30, 2001shares |
Stockholders' Equity (Textual) | |||||||||||||||||
Potential issuance or sale of equity | $ | $ 10,000,000 | ||||||||||||||||
Gross proceeds | $ | $ 5,900,000 | $ 3,050,000 | |||||||||||||||
Net proceeds | $ | $ 5,313,000 | $ 2,734,000 | |||||||||||||||
Common stock shares sold | 1,123,810 | 417,807 | |||||||||||||||
Sale of stock, per share | $ / shares | $ 5.25 | $ 7.30 | |||||||||||||||
Common stock, shares authorized | 11,000,000 | 8,000,000 | |||||||||||||||
Stock option and incentive plan, description | We currently match 100% of the first 3% of each employee's salary that is contributed to the Plan and 50% of the next 2% of each employee's salary that is contributed to the Plan. | ||||||||||||||||
Proceeds from exercise of stock options | $ | $ 10,860 | $ 5,250 | |||||||||||||||
Weighted-average grant date fair values of options granted | $ / shares | $ 3.51 | ||||||||||||||||
Stock Options Granted [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Stock option granted during the period | 145,000 | 141,000 | |||||||||||||||
Private Placement [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Gross proceeds | $ | $ 3,464,000 | ||||||||||||||||
Net proceeds | $ | $ 3,161,000 | ||||||||||||||||
Common stock shares sold | 659,880 | ||||||||||||||||
Closing share price | $ / shares | $ 5.25 | ||||||||||||||||
Minimum [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Common stock, shares authorized | 8,000,000 | 8,000,000 | |||||||||||||||
Maximum [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Common stock, shares authorized | 11,000,000 | 10,000,000 | |||||||||||||||
Investor [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Gross proceeds | $ | $ 1,050,000 | ||||||||||||||||
Net proceeds | $ | $ 1,034,000 | ||||||||||||||||
Number of related investors | Investors | 2 | ||||||||||||||||
Common stock shares issued | 200,000 | ||||||||||||||||
Closing share price | $ / shares | $ 5.25 | ||||||||||||||||
Stock Option [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Number of employee exercised stock options | Employee | 6 | ||||||||||||||||
Aggregate intrinsic value of options exercised | $ | $ 43,260 | $ 43,470 | |||||||||||||||
Weighted-average grant date fair values of options granted | $ / shares | $ 4.20 | $ 3.51 | |||||||||||||||
Total unrecognized stock-based compensation related to non-vested stock options | $ | $ 840,056 | ||||||||||||||||
Share-based payment, description | Stock options covering 11,000 shares. Three thousand of these options were exercised for cash, resulting in total proceeds of $10,850, and 8,000 of these options were exercised by the surrender of 3,469 shares of common stock with a fair market value of $25,040 at the time of exercise and $10 in cash. | Exercised stock options covering 11,000 shares for cash, resulting in total proceeds of $49,560. | |||||||||||||||
Exercise prices of options outstanding | $ / shares | $ 5.40 | $ 4.58 | $ 3.89 | ||||||||||||||
Weighted average remaining life of unrecognized stock-based compensation related to non-vested | 2 years 2 months | ||||||||||||||||
Stock Option [Member] | Minimum [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Sale of stock, per share | $ / shares | $ 6.81 | 5.33 | |||||||||||||||
Exercise prices of options outstanding | $ / shares | 1.70 | ||||||||||||||||
Stock Option [Member] | Maximum [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Sale of stock, per share | $ / shares | 7.80 | $ 8.90 | |||||||||||||||
Exercise prices of options outstanding | $ / shares | $ 8.90 | ||||||||||||||||
Stock Option [Member] | Employee [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Number of stock options exercised | 11,000 | ||||||||||||||||
Number of employee exercised stock options | Employee | 4 | ||||||||||||||||
2000 Plan [Member] | Stock Option [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Common stock reserved for issuance under the plan | |||||||||||||||||
Number of stock options exercised | 10,000 | 4,000 | |||||||||||||||
Stock option granted during the period | |||||||||||||||||
2000 Plan [Member] | Stock Option [Member] | Employee [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Stock option and incentive plan, description | No less than 85% of fair market value on the date of grant in the case of non-qualified stock options. | ||||||||||||||||
Common stock reserved for issuance under the plan | 250,000 | 500,000 | |||||||||||||||
Stock option expiration period | 10 years | 5 years 8 months | |||||||||||||||
Weighted average remaining life of options exercisable | 1 year 1 month | ||||||||||||||||
2010 Plan [Member] | Stock Option [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Common stock reserved for issuance under the plan | 1,000 | ||||||||||||||||
Number of stock options exercised | 1,000 | 7,000 | |||||||||||||||
Stock option granted during the period | 38,500 | 141,000 | |||||||||||||||
2010 Plan [Member] | Stock Option [Member] | Employee [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Common stock reserved for issuance under the plan | 300,000 | ||||||||||||||||
Stock option expiration period | 10 years | ||||||||||||||||
Share-based payment, description | The 2010 Plan expires in June 2020, after which date no further options could be granted under the 2010 Plan. | ||||||||||||||||
Option expiry date | Jun. 30, 2020 | ||||||||||||||||
Common Stock Rights Plan [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Share-based payment, description | At any time after a person or group becomes an Acquiring Person and prior to the acquisition by such person or group of 50% or more of the outstanding common stock, the Board of Directors of the Company may exchange the Rights (other than Rights owned by such person or group which have become void), in whole or in part, at an exchange ratio of one share of common stock per Right (subject to adjustment). | ||||||||||||||||
Common stock purchase price | $ / shares | $ 70 | ||||||||||||||||
Employee stock, plan description | The Rights (as amended) become exercisable and transferable apart from the common stock upon the earlier of i) 10 days following a public announcement that a person or group (Acquiring Person) has, without the prior consent of the Continuing Directors (as such term is defined in the Rights Agreement), acquired beneficial ownership of 20% or more of the outstanding common stock or ii) 10 days following commencement of a tender offer or exchange offer the consummation of which would result in ownership by a person or group of 20% or more of the outstanding common stock (the earlier of such dates being called the Distribution Date). | Our Board of Directors also has voted to authorize amendments to increase the ownership threshold for determining ''Acquiring Person'' status to 20%. During the second quarter of 2015, our Board of Directors also voted to authorize an amendment to remove a provision that prevented a new group of directors elected following the emergence of an Acquiring Person (an owner of more than 20% of our stock) from controlling the Rights Plan by maintaining exclusive authority over the Rights Plan with pre-existing directors. | |||||||||||||||
Sale of common stock, description | The Company should consolidate or merge with any other entity and the Company were not the surviving company, or, if the Company were the surviving company, all or part of the Company's common stock were changed or exchanged into the securities of any other entity, or if more than 50% of the Company's assets or earning power were sold. | ||||||||||||||||
Outstanding rights price per share | $ / shares | $ 0.005 | ||||||||||||||||
2017 Plan [Member] | Stock Option [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Common stock reserved for issuance under the plan | 198,500 | ||||||||||||||||
Number of stock options exercised | |||||||||||||||||
Stock option granted during the period | 106,500 | ||||||||||||||||
2017 Plan [Member] | Stock Option [Member] | Employee [Member] | |||||||||||||||||
Stockholders' Equity (Textual) | |||||||||||||||||
Common stock reserved for issuance under the plan | 300,000 | 300,000 | |||||||||||||||
Stock option expiration period | 10 years | ||||||||||||||||
Option expiry date | Mar. 31, 2027 |
Revenue (Details)
Revenue (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 3,014,546 | $ 1,749,605 | $ 5,895,731 | $ 5,293,536 |
United States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,544,133 | 1,583,848 | 5,139,749 | 4,380,024 |
Other States [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 470,413 | $ 165,757 | $ 755,982 | $ 913,512 |
Revenue (Details 1)
Revenue (Details 1) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Disaggregation of Revenue [Line Items] | ||||
Total | $ 3,014,546 | $ 1,749,605 | $ 5,895,731 | $ 5,293,536 |
First Defense Product Line [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 2,883,482 | 1,653,650 | 5,664,351 | 4,897,354 |
Other Animal Health [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | 131,064 | 95,955 | 231,380 | 299,782 |
Other Product Services [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Total | $ 96,400 |
Revenue (Details Textual)
Revenue (Details Textual) | 3 Months Ended | 6 Months Ended |
Mar. 31, 2018 | Jun. 30, 2018 | |
Revenues (Textual) | ||
Revenue, description | We had a backlog of orders (representing purchase orders received from customers which were not fulfilled or paid) worth approximately $1,245,000. | We had a backlog of orders for Tri-Shield™ First Defense ® |
Other Expenses, Net (Details)
Other Expenses, Net (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Other Expenses, Net [Abstract] | ||||
Interest expense | $ 106,268 | $ 43,493 | $ 202,284 | $ 83,395 |
Interest income | (3,209) | (6,418) | (7,033) | (12,375) |
Other losses (gains) | 75 | (679) | (4,382) | |
Other expenses, net | $ 103,134 | $ 36,396 | $ 195,251 | $ 66,638 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Income Taxes (Textual) | ||||
Income tax expense (benefit) | $ 501,820 | $ (83,314) | $ 452,672 | $ 220,412 |
Net operating loss carryforward | 429,000 | 429,000 | ||
Federal net operating loss carryforwards | 1,700,000 | 1,700,000 | ||
Federal general business tax credit carryforwards | 335,000 | $ 335,000 | ||
Tax credit carryforward, description | Federal net operating loss carryforwards of approximately $1,700,000 that expire in 2034 through 2037 (if not utilized before then) and state net operating loss carryforwards of approximately $429,000 that expire in 2037 (if not utilized before then). Additionally, we had federal general business tax credit carryforwards of approximately $335,000 that expire in 2027 through 2037 (if not utilized before then) and state tax credit carryforwards of approximately $294,000 that expire in 2023 through 2037 (if not utilized before then). | |||
State tax credit carryforwards | 294,000 | $ 294,000 | ||
Intangible asset | $ 965,000 | $ 965,000 | ||
Amortization period | 15 years | |||
(Loss) income before income taxes, rate | 169.00% | (28.00%) | 80.00% | 38.00% |
Capitalized and depreciated over statutory periods | $ 820,000 | $ 820,000 | ||
Deferred tax assets | 563,252 | $ 563,252 | ||
Maximum [Member] | ||||
Income Taxes (Textual) | ||||
U.S. federal corporate tax rate | 34.00% | |||
Minimum [Member] | ||||
Income Taxes (Textual) | ||||
U.S. federal corporate tax rate | 21.00% | |||
Investment Income [Member] | ||||
Income Taxes (Textual) | ||||
Investment in small-scale facility | $ 1,112,000 | $ 1,112,000 |
Contingent Liabilities and Co66
Contingent Liabilities and Commitments (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Sep. 30, 2016 | Jun. 30, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Contingent Liabilities and Commitments (Textual) | |||||
Termination fee | $ 100,000 | ||||
Capital expenditure related to project | 20,808,000 | ||||
Payment of capital expenditure | 20,806,000 | ||||
Purchase of inventory | 744,000 | ||||
Other obligations | 134,000 | ||||
Construction costs | $ 21,000,000 | ||||
Milestone payment | $ 150,000 | ||||
Royalty, percentage | 4.00% | ||||
Growth assumption, percentage | 6.00% | ||||
Royalty payment to Baylor | 5,000 | $ 5,000 | |||
Royalties due for 2017 | 5,000 | ||||
Royalties due for 2018 | 10,000 | ||||
Royalties due for 2019 | 15,000 | ||||
Royalties due for 2020 | 20,000 | ||||
Royalties due for 2021 | 25,000 | ||||
Capital expenditures | $ 31,000 |
Segment Information (Details)
Segment Information (Details) - Sales Revenue, Net [Member] | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Segment Information (Textual) | ||||
Concentration risk percentage | 96.00% | 95.00% | 96.00% | 93.00% |
U.S. dairy and beef industries [Member] | ||||
Segment Information (Textual) | ||||
Concentration risk percentage | 84.00% | 91.00% | 87.00% | 82.00% |
International dairy and beef [Member] | ||||
Segment Information (Textual) | ||||
Concentration risk percentage | 16.00% | 9.00% | 13.00% | 15.00% |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Related Party Transactions (Textual) | |||
Revenues from transactions with related party | $ 337,065 | $ 335,351 | |
Marketing-related payments | 11,358 | $ 2,193 | |
Accounts receivable, related parties | $ 8,304 | $ 14,176 |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Employee Benefits (Textual) | ||||
Employee savings plan, description | All employees completing one month of service with the Company are eligible to participate. | |||
Defined benefit plans general information, description | We currently match 100% of the first 3% of each employee's salary that is contributed to the Plan and 50% of the next 2% of each employee's salary that is contributed to the Plan. | |||
Defined benefit plan benefits paid | $ 29,366 | $ 24,314 | $ 54,012 | $ 43,022 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event [Member] - TCS Biosciences Ltd of Buckingham [Member] | 1 Months Ended |
Jul. 31, 2018USD ($) | |
Subsequent Events (Textual) | |
Non core assets | $ 700,000 |
Subsequent event, description | A payment of $250,000 was received up front, and the remaining $450,000 is due in two payments during the second half of 2019. |
Subsequent event agreement, description | This agreement also includes a purchase order for product worth approximately $125,000 that may be sold to TCS during the first quarter of 2019. |