Document_And_Entity_Informatio
Document And Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Nov. 14, 2014 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'LIFEWAY FOODS INC | ' |
Entity Central Index Key | '0000814586 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 30-Sep-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--12-31 | ' |
Is Entity a Well-known Seasoned Issuer? | 'No | ' |
Is Entity a Voluntary Filer? | 'No | ' |
Is Entity's Reporting Status Current? | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Shares Outstanding | ' | 16,346,017 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Statements_Of_Fin
Consolidated Statements Of Financial Condition (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Current assets | ' | ' | ' |
Cash and cash equivalents | $2,795,429 | $3,306,608 | $1,240,730 |
Investments | 3,057,214 | 2,516,380 | 2,506,463 |
Certificates of deposits in financial institutions | ' | 15,373 | 115,373 |
Inventories | 7,134,857 | 6,899,008 | 8,382,287 |
Accounts receivable, net of allowance for doubtful accounts and discounts ($1,300,000 and $1,350,000 and $1,050,000) | 11,803,145 | 10,444,839 | 11,313,652 |
Prepaid expenses and other current assets | 54,944 | 128,323 | 88,629 |
Other receivables | 26,720 | 103,272 | 89,100 |
Deferred income taxes | 360,765 | 322,071 | 394,277 |
Refundable income taxes | 842,425 | 1,014,947 | 423,242 |
Total current assets | 26,075,499 | 24,750,821 | 24,553,753 |
Property and equipment, net | 21,874,520 | 20,824,448 | 21,637,492 |
Intangible assets | ' | ' | ' |
Goodwill | 14,068,091 | 14,068,091 | 14,068,091 |
Other intangible assets, net of accumulated amortization of $5,005,117, $4,376,640 and $4,468,359 at September 30, 2014 and 2013 and at December 31, 2013, respectively | 3,238,683 | 3,750,441 | 3,929,360 |
Total intangible assets | 17,306,774 | 17,818,532 | 17,997,451 |
Other Assets | ' | ' | ' |
Long-term accounts receivable net of current portion | 270,599 | 280,000 | 280,000 |
Total assets | 65,527,392 | 63,673,801 | 64,468,696 |
Current liabilities | ' | ' | ' |
Current maturities of notes payable | 877,038 | 875,002 | 878,088 |
Accounts payable | 7,318,512 | 6,723,179 | 5,429,988 |
Accrued expenses | 1,243,876 | 1,284,060 | 1,323,213 |
Accrued income taxes | ' | ' | 1,292,762 |
Total current liabilities | 9,439,426 | 8,882,241 | 8,924,051 |
Notes payable | 8,339,282 | 8,999,012 | 9,214,853 |
Deferred income taxes | 2,065,221 | 2,843,426 | 2,917,213 |
Total liabilities | 19,843,929 | 20,724,679 | 21,056,117 |
Stockholders' equity | ' | ' | ' |
Common stock, no par value; 40,000,000 shares authorized; 17,273,776 shares issued; 16,346,017 shares outstanding at September 30, 2014, September 30, 2013 and December 31, 2013 | 6,509,267 | 6,509,267 | 6,509,267 |
Paid-in-capital | 2,032,516 | 2,032,516 | 2,032,516 |
Treasury stock, at cost | -8,187,682 | -8,187,682 | -8,187,682 |
Retained earnings | 45,367,487 | 42,587,214 | 43,056,422 |
Accumulated other comprehensive income (loss), net of taxes | -38,125 | 7,807 | 2,056 |
Total stockholders' equity | 45,683,463 | 42,949,122 | 43,412,579 |
Total liabilities and stockholders' equity | $65,527,392 | $63,673,801 | $64,468,696 |
Consolidated_Statements_Of_Fin1
Consolidated Statements Of Financial Condition (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Current assets | ' | ' | ' |
Allowance for doubtful accounts and discounts | $1,300,000 | $1,050,000 | $1,350,000 |
Intangible assets | ' | ' | ' |
Accumulated Amortization | $5,005,117 | $4,468,359 | $4,376,640 |
Stockholders' equity | ' | ' | ' |
Common stock, no par value | $0 | $0 | $0 |
Common stock, shares authorized | 40,000,000 | 40,000,000 | 40,000,000 |
Common stock, shares issued | 17,273,776 | ' | 17,273,776 |
Common stock, shares outstanding | 16,346,017 | ' | 16,346,017 |
Consolidated_Statements_Of_Inc
Consolidated Statements Of Income And Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated Statements Of Income And Comprehensive Income | ' | ' | ' | ' |
Sales | $32,704,435 | $26,601,341 | $97,359,630 | $80,030,021 |
Less: discounts and allowances | -2,594,213 | -2,808,811 | -8,552,286 | -8,772,576 |
Net sales | 30,110,222 | 23,792,530 | 88,807,344 | 71,257,445 |
Cost of goods sold | 21,697,954 | 16,513,357 | 64,812,489 | 47,217,179 |
Depreciation expense | 1,010,966 | 410,797 | 2,022,204 | 1,226,629 |
Total cost of goods sold | 22,708,920 | 16,924,154 | 66,834,693 | 48,443,808 |
Gross profit | 7,401,302 | 6,868,376 | 21,972,651 | 22,813,637 |
Selling expenses | 2,804,127 | 2,815,126 | 9,977,636 | 8,291,960 |
General and administrative | 2,627,566 | 1,671,080 | 7,115,393 | 5,567,649 |
Amortization expense | 178,919 | 178,201 | 536,758 | 533,884 |
Total operating expenses | 5,610,612 | 4,664,407 | 17,629,787 | 14,393,493 |
Income from operations | 1,790,690 | 2,203,969 | 4,342,864 | 8,420,144 |
Other income (expense): | ' | ' | ' | ' |
Interest and dividend income | 22,739 | 36,535 | 86,664 | 82,166 |
Rental income | 1,201 | 2,231 | 2,900 | 8,889 |
Interest expense | -62,084 | -59,887 | -194,377 | -133,610 |
Gain on sale of investments, net reclassified from OCI | -22,940 | 161 | 39,190 | 121,441 |
Gain on sale of equipment | 85,077 | ' | 8,592 | ' |
Other Income | ' | 209,175 | 1,674 | 219,404 |
Total other income (expense) | 23,993 | 188,215 | -55,357 | 298,290 |
Income before provision for income taxes | 1,814,683 | 2,392,184 | 4,287,507 | 8,718,434 |
Provision for income taxes | 789,005 | 702,257 | 1,507,234 | 3,258,928 |
Net income | 1,025,678 | 1,689,927 | 2,780,273 | 5,459,506 |
Basic and diluted earnings per common share | $0.06 | $0.10 | $0.17 | $0.33 |
Weighted average number of shares outstanding | 16,346,017 | 16,346,017 | 16,346,017 | 16,346,017 |
COMPREHENSIVE INCOME | ' | ' | ' | ' |
Net income | 1,025,678 | 1,689,927 | 2,780,273 | 5,459,506 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Unrealized gains (losses) on investments (net of tax) | -93,679 | 29,356 | -22,524 | 17,079 |
Less reclassification adjustment for (gains) losses included in net income (net of taxes) | 13,702 | -91 | -23,408 | -68,614 |
Comprehensive income | $945,701 | $1,719,192 | $2,734,341 | $5,407,971 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (USD $) | Common Stock | Paid-In Capital | Treasury Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss), Net of Tax | Total |
Beginning Balance, Amount at Dec. 31, 2012 | $6,509,267 | $2,032,516 | ($8,187,682) | $38,904,777 | $53,591 | $39,312,469 |
Beginning Balance, Shares issued at Dec. 31, 2012 | 17,273,776 | ' | ' | ' | ' | ' |
Beginning Balance, Treasury stock shares at Dec. 31, 2012 | ' | ' | 927,759 | ' | ' | ' |
Beginning Balance, Shares outstanding at Dec. 31, 2012 | 16,346,017 | ' | ' | ' | ' | ' |
Unrealized gains on securities, net of taxes | ' | ' | ' | ' | -51,535 | -51,535 |
Net income | ' | ' | ' | 5,459,506 | ' | 5,459,506 |
Dividends ($.08) per share | ' | ' | ' | -1,307,861 | ' | -1,307,861 |
Ending Balance, Amount at Sep. 30, 2013 | 6,509,267 | 2,032,516 | -8,187,682 | 43,056,422 | 2,056 | 43,412,579 |
Ending Balance, Shares issued at Sep. 30, 2013 | 17,273,776 | ' | ' | ' | ' | 17,273,776 |
Ending Balance, Treasury stock shares at Sep. 30, 2013 | ' | ' | 927,759 | ' | ' | ' |
Ending Balance, Shares outstanding at Sep. 30, 2013 | 16,346,017 | ' | ' | ' | ' | 16,346,017 |
Beginning Balance, Amount at Dec. 31, 2012 | 6,509,267 | 2,032,516 | -8,187,682 | 38,904,777 | 53,591 | 39,312,469 |
Beginning Balance, Shares issued at Dec. 31, 2012 | 17,273,776 | ' | ' | ' | ' | ' |
Beginning Balance, Treasury stock shares at Dec. 31, 2012 | ' | ' | 927,759 | ' | ' | ' |
Beginning Balance, Shares outstanding at Dec. 31, 2012 | 16,346,017 | ' | ' | ' | ' | ' |
Unrealized gains on securities, net of taxes | ' | ' | ' | ' | -45,784 | -45,784 |
Net income | ' | ' | ' | 4,990,298 | ' | 4,990,298 |
Dividends ($.08) per share | ' | ' | ' | -1,307,861 | ' | -1,307,861 |
Ending Balance, Amount at Dec. 31, 2013 | 6,509,267 | 2,032,516 | -8,187,682 | 42,587,214 | 7,807 | 42,949,122 |
Ending Balance, Shares issued at Dec. 31, 2013 | 17,273,776 | ' | ' | ' | ' | ' |
Ending Balance, Treasury stock shares at Dec. 31, 2013 | ' | ' | 927,759 | ' | ' | ' |
Ending Balance, Shares outstanding at Dec. 31, 2013 | 16,346,017 | ' | ' | ' | ' | ' |
Unrealized gains on securities, net of taxes | ' | ' | ' | ' | -45,932 | -45,932 |
Net income | ' | ' | ' | 2,780,273 | ' | 2,780,273 |
Ending Balance, Amount at Sep. 30, 2014 | $6,509,267 | $2,032,516 | ($8,187,682) | $45,367,487 | ($38,125) | $45,683,463 |
Ending Balance, Shares issued at Sep. 30, 2014 | 17,273,776 | ' | ' | ' | ' | 17,273,776 |
Ending Balance, Treasury stock shares at Sep. 30, 2014 | ' | ' | 927,759 | ' | ' | ' |
Ending Balance, Shares outstanding at Sep. 30, 2014 | 16,346,017 | ' | ' | ' | ' | 16,346,017 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) (USD $) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2013 | Dec. 31, 2013 | |
Consolidated Statements Of Changes In Stockholders Equity Parenthetical | ' | ' |
Dividends paid per share | $0.08 | $0.80 |
Consolidated_Statements_Of_Cas
Consolidated Statements Of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | ' | ' |
Net income | $2,780,273 | $5,459,506 |
Adjustments to reconcile net income to net cash flows from operating activities: | ' | ' |
Depreciation and amortization | 2,558,962 | 1,760,513 |
Gain on sale of investments, net | -39,190 | -121,441 |
Deferred income taxes | -783,607 | -231,218 |
Bad Debt expense | 76,049 | 26,819 |
Gain on sale of equipment | -8,592 | -209,175 |
(Increase) decrease in operating assets: | ' | ' |
Accounts receivable | -1,548,110 | -2,612,905 |
Other receivables | 76,552 | -80,275 |
Inventories | -235,849 | -2,443,101 |
Refundable income taxes | 172,522 | -338,414 |
Prepaid expenses and other current assets | 73,379 | 33,509 |
Increase (decrease) in operating liabilities: | ' | ' |
Accounts payable | 595,333 | 1,173,263 |
Accrued expenses | -40,184 | 167,536 |
Income taxes payable | ' | 1,038,451 |
Net cash provided by operating activities | 3,677,538 | 3,623,068 |
Cash flows from investing activities: | ' | ' |
Purchases of investments | -2,319,742 | -2,877,968 |
Proceeds from sale of investments | 1,736,946 | 2,281,792 |
Redemption of certificates of deposit | 15,000 | 334,627 |
Purchases of property and equipment | -3,052,303 | -8,205,669 |
Proceeds from sale of equipment | 89,076 | 537,500 |
Net cash used in investing activities | -3,531,023 | -7,929,718 |
Cash flows from financing activities: | ' | ' |
Dividends paid | ' | -1,307,861 |
Net proceeds from debt issuance | ' | 4,975,000 |
Repayment of notes payable | -657,694 | -405,985 |
Net cash used in financing activities | -657,694 | 3,261,154 |
Net decrease in cash and cash equivalents | -511,179 | -1,045,496 |
Cash and cash equivalents at the beginning of the period | 3,306,608 | 2,286,226 |
Cash and cash equivalents at the end of the period | $2,795,429 | $1,240,730 |
Nature_Of_Business
Nature Of Business | 9 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
Note 1 - Nature Of Business | ' |
Lifeway Foods, Inc. (the “Company” or “Lifeway”) commenced operations in February 1986 and incorporated under the laws of the state of Illinois on May 19, 1986. The Company’s principal business activity is the production of dairy products. Specifically, the Company produces Kefir, a drinkable product which is similar to but distinct from yogurt, in several flavors sold under the name “Lifeway’s Kefir;” a plain farmer’s cheese sold under the name “Lifeway’s Farmer’s Cheese;” a fruit sugar-flavored product similar in consistency to cream cheese sold under the name of “Sweet Kiss;” and a dairy beverage, similar to Kefir, with increased protein and calcium, sold under the name “Basics Plus.” The Company also produces a vegetable-based seasoning under the name “Golden Zesta.” The Company currently distributes its products throughout the Chicago Metropolitan area and various cities on the East Coast through local food stores. In addition, products are sold throughout the United States by distributors. The Company also distributes some of its products in London. |
Summary_Of_Significant_Account
Summary Of Significant Accounting Policies | 9 Months Ended | ||
Sep. 30, 2014 | |||
Notes to Financial Statements | ' | ||
Note 2 - Summary Of Significant Accounting Policies | ' | ||
A summary of the significant accounting policies applied in the preparation of the accompanying consolidated financial statements follows: | |||
Basis of presentation | |||
The accompanying unaudited financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, such information reflects all adjustments (consisting of normal recurring adjustments), which are, in the opinion of Management, necessary for fair presentation of results for the interim periods. The unaudited consolidated financial statements contained in this Quarterly Report should be read in conjunction with the consolidated financial statements contained in our 2013 Annual Report on Form 10-K. | |||
Principles of consolidation | |||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Helios Nutrition, Ltd., Pride of Main Street, L.L.C., Starfruit, L.L.C., Fresh Made, Inc. and Starfruit Franchisor, L.L.C., Lifeway First Juice, Inc. (IL), First Juice, Inc. (DE) and Lifeway Wisconsin, Inc. Lifeway Wisconsin, Inc. was created to facilitate the operation of a production facility in Wisconsin. All significant intercompany accounts and transactions have been eliminated. | |||
Use of estimates | |||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include the allowance for doubtful accounts, the valuation of investment securities, goodwill, intangible assets, and deferred taxes. | |||
Revenue Recognition | |||
Sales of Company produced dairy products are recorded at the time of shipment and the following four criteria have been met: (i) The product has been shipped and the Company has no significant remaining obligations; (ii) Persuasive evidence of an agreement exists; (iii) The price to the buyer is fixed or determinable and (iv) Collection is probable. In addition, shipping costs invoiced to the customers are included in net sales and the related cost in cost of sales. Discounts and allowances are reported as a reduction of gross sales unless the allowance is attributable to an identifiable benefit separable from the purchase of the product, the value of which can be reasonably estimated, which would be charged to the appropriate expense account. | |||
Customer Concentration | |||
Sales are predominately to companies in the retail food industry, located within the United States of America. Two major customers accounted for approximately __ percent and 35 percent of gross sales for the nine months ended September 30, 2014 and 2013, respectively. These customers accounted for approximately __ percent, 30 percent and 22 percent of accounts receivable as of September 30, 2014, September 30, 2013 and December 31, 2013, respectively. | |||
Cash and cash equivalents | |||
All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. | |||
The Company maintains cash deposits at several institutions located in the greater Chicago, Illinois and Philadelphia, Pennsylvania metropolitan areas. | |||
Investments | |||
All investment securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on available-for-sale securities are reported as a separate component of stockholders’ equity. Amortization, accretion, interest and dividends, realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are recorded in other income. All of the Company's securities are subject to a periodic impairment evaluation. This evaluation depends on the specific facts and circumstances. Factors that we consider in determining whether an other-than-temporary decline in value has occurred include: the market value of the security in relation to its cost basis; the financial condition of the investee; and the intent and ability to retain the investment for a sufficient period of time to allow for possible recovery in the market value of the investment. | |||
Accounts receivable | |||
Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral. Balances expected to be paid beyond one year are classified as long-term. | |||
Accounts receivable are recorded at invoice amounts, and reduced to their estimated net realizable value by recognition of an allowance for doubtful accounts and anticipated discounts. The Company’s estimate of the allowances for doubtful accounts and anticipated discounts are based upon historical experience, its evaluation of the current status and contract terms of specific receivables, and unusual circumstances, if any. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company’s credit terms. Accounts considered uncollectible are charged against the allowance. | |||
Inventories | |||
Inventories are stated at the lower of cost or market. Our products are valued using the first in, first out method. The costs of inventories include raw materials, direct labor and indirect production and overhead costs. | |||
Property and equipment | |||
Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. | |||
Property and equipment is being depreciated over the following useful lives: | |||
Category | Years | ||
Buildings and improvements | 31 and 39 | ||
Machinery and equipment | 5 – 12 | ||
Office equipment | 5 – 7 | ||
Vehicles | 5 | ||
Leasehold improvements | Shorter of expected useful life or lease term | ||
Intangible assets acquired in business combinations | |||
The Company accounts for intangible assets at historical cost. Intangible assets acquired in a business combination are recorded under the purchase method of accounting at their estimated fair values at the date of acquisition. Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment at least annually. Brand assets represent the fair value of brands acquired. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below. | |||
The Company reviews intangible assets and their related useful lives at least once per year to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. The Company conducts more frequent impairment assessments if certain conditions exist, including: a change in the competitive landscape, any internal decisions to pursue new or different strategies, a loss of a significant customer, or a significant change in the market place including changes in the prices paid for the Company’s products or changes in the size of the market for the Company’s products. | |||
If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. | |||
Intangible assets are being amortized over the following useful lives: | |||
Category | Years | ||
Recipes | 4 | ||
Lease agreement | 7 | ||
Trade names | 15-Aug | ||
Formula | 10 | ||
Customer relationships | 12-Aug | ||
Income taxes | |||
Deferred income taxes are the result of temporary differences that arise from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. | |||
The principal sources of temporary differences are different depreciation and amortization methods for financial statement and tax purposes, unrealized gains or losses related to investments, capitalization of indirect costs for tax purposes, purchase price adjustments, and the recognition of an allowance for doubtful accounts for financial statement purposes. | |||
The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The only periods subject to examination for the Company’s federal returns are the 2011, 2012 and 2013 tax years. The Company believes that its income tax filing positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded. | |||
Treasury stock | |||
Treasury stock is recorded using the cost method. | |||
Advertising and promotional costs | |||
The Company expenses advertising costs as incurred. For the three and nine months ended September 30, 2014 and 2013 total advertising expenses were $643,127 and $2,462,313, $551,492 and $1,859,798, respectively. | |||
Earnings per common share | |||
Earnings per common share were computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. For the three and nine months ended September 30, 2014 and 2013, the weighted average number of shares outstanding used in the calculation of diluted and basic earnings per share were the same. | |||
Segments | |||
Currently, the Company has one segment with multiple dairy products. All such dairy products are produced using the same process and materials, sold to consumers retail food sellers through direct delivery and distributors in the United States of America. The reportable segment has been determined based on how the Company’s chief operating decision maker manages the business and in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Financial Officer and the board of directors that makes strategic decisions. The Company’s sales in foreign markets are considered not to be material and accordingly the Company has not presented financial information by geography. |
Intangible_Assets
Intangible Assets | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||||||||
Note 3 - Intangible Assets | ' | ||||||||||||||||||||||||
Intangible assets, and the related accumulated amortization, consist of the following: | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 31-Dec-13 | |||||||||||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||||||||||
Recipes | $ | 43,600 | $ | 43,600 | $ | 43,600 | $ | 43,600 | $ | 43,600 | $ | 43,600 | |||||||||||||
Customer lists and other customer related intangibles | 4,504,200 | 2,813,737 | 4,504,200 | 2,361,808 | 4,504,200 | 2,474,790 | |||||||||||||||||||
Customer relationship | 985,000 | 649,348 | 985,000 | 579,264 | 985,000 | 596,785 | |||||||||||||||||||
Trade names | 2,248,000 | 1,140,732 | 2,248,000 | 990,868 | 2,248,000 | 1,028,334 | |||||||||||||||||||
Formula | 438,000 | 357,700 | 438,000 | 313,900 | 438,000 | 324,850 | |||||||||||||||||||
$ | 8,218,800 | $ | 5,005,117 | $ | 8,218,800 | $ | 4,289,440 | $ | 8,218,800 | $ | 4,468,359 | ||||||||||||||
Amortization expense is expected to be approximately the following for the 12 months ending September 30: | |||||||||||||||||||||||||
2015 | $ | 715,677 | |||||||||||||||||||||||
2016 | 708,377 | ||||||||||||||||||||||||
2017 | 671,877 | ||||||||||||||||||||||||
2018 | 658,197 | ||||||||||||||||||||||||
2019 | 293,156 | ||||||||||||||||||||||||
Thereafter | 166,399 | ||||||||||||||||||||||||
$ | 3,213,683 | ||||||||||||||||||||||||
Amortization expense during the three and nine months ended September 30, 2014 and 2013 was $178,919 and $536,758, $178,201 and $533,884, respectively. |
Investments
Investments | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||||||||||
Note 4 - Investments | ' | ||||||||||||||||||||||||
The cost and fair value of investments classified as available for sale are as follows: | |||||||||||||||||||||||||
30-Sep-14 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Equities | $ | 1,023,998 | $ | 82,968 | $ | (53,441 | ) | $ | 1,053,525 | ||||||||||||||||
Mutual Funds | 7,040 | 0 | (633 | ) | 6,407 | ||||||||||||||||||||
Preferred Securities | 416,415 | 24,959 | (4,330 | ) | 437,044 | ||||||||||||||||||||
Corporate Bonds | 1,673,591 | 2,397 | (115,750 | ) | 1,560,238 | ||||||||||||||||||||
Total | $ | 3,121,044 | $ | 110,324 | $ | (174,154 | ) | $ | 3,057,214 | ||||||||||||||||
30-Sep-13 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Equities | $ | 887,418 | $ | 115,298 | $ | (29,256 | ) | $ | 973,460 | ||||||||||||||||
Mutual Funds | 69,849 | 0 | (1,965 | ) | 67,884 | ||||||||||||||||||||
Preferred Securities | 528,306 | 3,684 | (26,363 | ) | 505,627 | ||||||||||||||||||||
Corporate Bonds | 1,017,252 | 1 | (57,761 | ) | 959,492 | ||||||||||||||||||||
Total | $ | 2,502,825 | $ | 118,983 | $ | (115,345 | ) | $ | 2,506,463 | ||||||||||||||||
31-Dec-13 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Equities | $ | 1,006,169 | $ | 98,213 | $ | (32,181 | ) | $ | 1,072,201 | ||||||||||||||||
Mutual Funds | 54,847 | 1,994 | 0 | 56,841 | |||||||||||||||||||||
Preferred Securities | 464,585 | 12,960 | (15,449 | ) | 462,096 | ||||||||||||||||||||
Corporate Bonds | 973,333 | 1,329 | (49,420 | ) | 925,242 | ||||||||||||||||||||
Total | $ | 2,498,934 | $ | 114,496 | $ | (97,050 | ) | $ | 2,516,380 | ||||||||||||||||
Proceeds from the sale of investments were $317,584, $1,736,946 and $332,953, $2,281,792 for the three and nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
Gross gains of $2,988, $83,810 and $161,421 and gross losses of $25,928, $44,620 and $39,980 were realized on these sales during the three months ended September 30, 2014, nine months ended September 30, 2014 and 2013, respectively. | |||||||||||||||||||||||||
The following table shows the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2014 and 2013 and at December 31, 2013: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
30-Sep-14 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Equities | $ | 326,673 | $ | (40,115 | ) | $ | 83,996 | $ | (13,326 | ) | $ | 410,669 | $ | (53,441 | ) | ||||||||||
Mutual Funds | 6,407 | (633 | ) | 0 | 0 | 6,407 | (633 | ) | |||||||||||||||||
Preferred Securities | 175,790 | (4,330 | ) | 0 | 0 | 175,790 | (4,330 | ) | |||||||||||||||||
Corporate Bonds | 910,520 | (65,250 | ) | 522,316 | (50,500 | ) | 1,432,836 | (115,750 | ) | ||||||||||||||||
$ | 1,419,390 | $ | (110,328 | ) | $ | 606,312 | $ | (63,826 | ) | $ | 2,025,702 | $ | (174,154 | ) | |||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
30-Sep-13 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Equities | $ | 292,456 | $ | (28,897 | ) | $ | 21,409 | $ | (359 | ) | $ | 313,865 | $ | (29,256 | ) | ||||||||||
Mutual Funds | 50,080 | (1,965 | ) | 0 | 0 | 50,080 | (1,965 | ) | |||||||||||||||||
Preferred Securities | 276,933 | (26,363 | ) | 0 | 0 | 276,933 | (26,363 | ) | |||||||||||||||||
Corporate Bonds | 868,294 | (54,667 | ) | 80,994 | (3,094 | ) | 949,288 | (57,761 | ) | ||||||||||||||||
$ | 1,487,763 | $ | (111,892 | ) | $ | 102,403 | $ | (3,453 | ) | $ | 1,590,166 | $ | (115,345 | ) | |||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
31-Dec-13 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Equities | $ | 213,222 | $ | (32,181 | ) | $ | 0 | $ | 0 | $ | 213,222 | $ | (32,181 | ) | |||||||||||
Mutual Funds | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Preferred Securities | 224,125 | (15,449 | ) | 0 | 0 | 224,125 | (15,449 | ) | |||||||||||||||||
Corporate Bonds | 615,986 | (42,827 | ) | 96,726 | (6,593 | ) | 712,712 | (49,420 | ) | ||||||||||||||||
$ | 1,053,333 | $ | (90,457 | ) | $ | 96,726 | $ | (6,593 | ) | $ | 1,150,059 | $ | (97,050 | ) | |||||||||||
Equities, Mutual Funds, Preferred Securities, and Corporate Bonds - The Company's investments in equity securities, mutual funds, preferred securities, and corporate bonds consist of investments in common stock, preferred stock and debt securities of companies in various industries. As of September 30, 2014, there were three corporate bond securities that had unrealized losses greater than twelve months. The Company evaluated the near-term prospects of the issuer in relation to the severity and duration of the impairment. Based on that evaluation and the Company's ability and intent to hold these investments for a reasonable period of time sufficient for a forecasted recovery of fair value, the Company did not consider any material investments to be other-than-temporarily impaired at September 30, 2014. |
Inventories
Inventories | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Note 5 - Inventories | ' | ||||||||||||
Inventories consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Finished goods | $ | 3,177,603 | $ | 3,106,557 | $ | 3,027,900 | |||||||
Production supplies | 1,669,984 | 3,469,239 | 2,690,097 | ||||||||||
Raw materials | 2,287,270 | 1,806,491 | 1,181,011 | ||||||||||
Total inventories | $ | 7,134,857 | $ | 8,382,287 | $ | 6,899,008 |
Property_And_Equipment
Property And Equipment | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Note 6 - Property And Equipment | ' | ||||||||||||
Property and equipment consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Land | $ | 1,856,370 | $ | 1,856,370 | $ | 1,856,370 | |||||||
Buildings and improvements | 15,496,906 | 14,921,016 | 14,587,022 | ||||||||||
Machinery and equipment | 20,999,223 | 19,921,064 | 19,633,164 | ||||||||||
Vehicles | 1,244,560 | 1,350,608 | 1,244,560 | ||||||||||
Office equipment | 433,679 | 433,346 | 433,679 | ||||||||||
Construction in process | 973,852 | 33,542 | 177,519 | ||||||||||
41,004,590 | 38,515,946 | 37,932,314 | |||||||||||
Less accumulated depreciation | 19,130,070 | 16,878,454 | 17,107,866 | ||||||||||
Total property and equipment | $ | 21,874,520 | $ | 21,637,492 | $ | 20,824,448 | |||||||
Lifeway completed the purchase of Golden Guernsey’s assets on July 2, 2013. The cost was approximately $7.4 million. | |||||||||||||
Depreciation expense during the three and nine months ended September 30, 2014 and 2013 was $1,010,966 and $2,022,204, $410,797 and $1,226,629 respectively. Included in the depreciation expense for the three months ended September 30, 2014 is an adjustment of approximately $470,000 related to the useful life of the Company’s Starfruit leasehold improvements. |
Accrued_Expenses
Accrued Expenses | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Note 7 - Accrued Expenses | ' | ||||||||||||
Accrued expenses consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Accrued payroll and payroll taxes | $ | 231,612 | $ | 562,491 | $ | 477,312 | |||||||
Accrued property tax | 251,228 | 244,028 | 306,608 | ||||||||||
Other | 761,036 | 516,694 | 500,140 | ||||||||||
$ | 1,243,876 | $ | 1,323,213 | $ | 1,284,060 |
Notes_Payable
Notes Payable | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Notes to Financial Statements | ' | ||||||||||||
Note 8 - Notes Payable | ' | ||||||||||||
Notes payable consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Note payable to Private Bank in monthly installments of $42,222, plus variable interest rate, currently at 2.6677%, with a balloon payment for the remaining balance. Collateralized by substantially all assets of the Company. In May 2013, the Company refinanced this note under similar terms which extended the maturity date to May 31, 2018. | $ | 4,478,889 | $ | 4,985,556 | $ | 4,858,889 | |||||||
Note payable to Private Bank in monthly installments of $27,778, plus variable interest rate, currently at 2.6677% with a balloon payment for the remaining balance, maturing on May 31, 2019, collateralized by substantially all assets of the Company. | 4,666,667 | 5,000,000 | 4,916,667 | ||||||||||
Notes payable to Ford Credit Corp. payable in monthly installments of $1,778 at 5.99%, due July 2015, secured by transportation equipment. | 17,294 | 36,919 | 32,124 | ||||||||||
Note payable to Fletcher Jones of Chicago, Ltd LLC in monthly installments of $1,769 at 6.653%, due May 24, 2017, secured by transportation equipment. | 53,470 | 70,466 | 66,334 | ||||||||||
Total notes payable | 9,216,320 | 10,092,941 | 9,874,014 | ||||||||||
Less current maturities | 877,038 | 878,088 | 875,002 | ||||||||||
Total long-term portion | $ | 8,339,282 | $ | 9,214,853 | $ | 8,999,012 | |||||||
In accordance with the Private Bank agreements referenced above, the Company is subject to minimum fixed charged ratio and tangible net worth thresholds. The Company was in compliance with the debt covenants at September 30, 2014. | |||||||||||||
Maturities of notes payables are as follows: | |||||||||||||
For the 12 months ending September 30, | |||||||||||||
2015 | $ | 877,038 | |||||||||||
2016 | 859,546 | ||||||||||||
2017 | 854,180 | ||||||||||||
2018 | 3,292,233 | ||||||||||||
2019 | 3,333,323 | ||||||||||||
Total | $ | 9,216,320 |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Notes to Financial Statements | ' | ||||
Note 9 - Commitments And Contingencies | ' | ||||
The Company leases three stores for its Starfruit subsidiary. Total expense for these leases was approximately $27,402 and $226,279, $46,441 and $165,849 for the three and nine months ended September 30, 2014 and 2013, respectively. The Company is also responsible for additional rent equal to real estate taxes and other operating expenses. Future annual minimum base rental payments for the leases as of September 30, 2014 are as follows: | |||||
For the 12 months ending September 30, | |||||
2015 | $ | 45,130 | |||
2016 | 46,484 | ||||
2017 | 47,878 | ||||
2018 | 49,314 | ||||
2019 | 12,419 | ||||
Total | $ | 201,225 |
Provision_For_Income_Taxes
Provision For Income Taxes | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
Note 10 - Provision For Income Taxes | ' | ||||||||||||||||
The provision for income taxes consists of the following: | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 1,697,412 | $ | 2,892,620 | |||||||||||||
State and local | 593,429 | 597,526 | |||||||||||||||
Total current | 2,290,841 | 3,490,146 | |||||||||||||||
Deferred | (783,607 | ) | (231,218 | ) | |||||||||||||
Provision for income taxes | $ | 1,507,234 | $ | 3,258,928 | |||||||||||||
A reconciliation of the provision for income taxes and the income tax computed at the statutory rate is as follows: | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Federal income tax expense computed at the statutory rate | $ | 1,457,752 | 34.00% | $ | 2,964,268 | 34.00% | |||||||||||
State and local tax expense, net | 268,827 | 6.30% | 828,251 | 9.50% | |||||||||||||
U.S. domestic manufacturers’ deduction & other permanent differences | (311,715 | ) | -7.30% | (444,711 | ) | -5.10% | |||||||||||
Change in tax estimate | 92,370 | 2.20% | (88,880 | ) | -1.00% | ||||||||||||
Provision for income taxes | $ | 1,507,234 | 35.20% | $ | 3,258,928 | 37.40% | |||||||||||
Amounts for deferred tax assets and liabilities are as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
Non-current deferred tax assets (liabilities) arising from: | |||||||||||||||||
Temporary differences - | |||||||||||||||||
Accumulated depreciation and amortization | |||||||||||||||||
from purchase accounting adjustments | $ | (2,098,017 | ) | $ | (3,002,058 | ) | $ | (2,896,058 | ) | ||||||||
Capital loss carry-forwards | 32,796 | 84,845 | 52,632 | ||||||||||||||
Total non-current net deferred tax liabilities | (2,065,221 | ) | (2,917,213 | ) | (2,843,426 | ) | |||||||||||
Current deferred tax assets arising from: | |||||||||||||||||
Unrealized losses (gain) on investments | 25,704 | (1,583 | ) | (7,589 | ) | ||||||||||||
Inventory | 294,791 | 374,110 | 307,910 | ||||||||||||||
Allowance for doubtful accounts and discounts | 40,270 | 21,750 | 21,750 | ||||||||||||||
Total current deferred tax assets | 360,765 | 394,277 | 322,071 | ||||||||||||||
Net deferred tax liability | $ | (1,704,456 | ) | $ | (2,522,936 | ) | $ | (2,521,355 | ) |
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Notes to Financial Statements | ' | ||||||||
Note 11 - Supplemental Cash Flow Information | ' | ||||||||
Cash paid for interest and income taxes are as follows: | |||||||||
For the Nine Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Interest | $ | 195,275 | $ | 140,068 | |||||
Income taxes | $ | 2,131,658 | $ | 2,862,991 |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Notes to Financial Statements | ' | ||||||||||||||||
Note 12 - Fair Value Measurements | ' | ||||||||||||||||
Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 820, Fair Value Measurements and Disclosures, provides the framework for measuring fair value. That framework provides a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (level 1 measurement) and the lowest priority to unobservable inputs (level 3 measurements). The three levels of the fair value hierarchy under FASB ASC 820 are described as follows: | |||||||||||||||||
Level 1. Inputs to the valuation methodology are unadjusted quoted prices for identical assets or liabilities in active markets that the Company has the ability to access. | |||||||||||||||||
Level 2. Inputs to the valuation methodology include the following: | |||||||||||||||||
● | Quoted prices for similar assets or liabilities in active markets; | ||||||||||||||||
● | Quoted prices for identical or similar assets or liabilities in inactive markets; | ||||||||||||||||
● | Inputs other than quoted prices that are observable for the asset or liability; | ||||||||||||||||
● | Inputs that are derived principally from or corroborated by observable market data by correlation or other means. | ||||||||||||||||
If the asset or liability has a specified (contractual) term, the level 2 input must be observable for substantially the full term of the asset or liability. | |||||||||||||||||
Level 3. Inputs to the valuation methodology are unobservable and significant to the fair value measurement. | |||||||||||||||||
The asset or liability's fair value measurement level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Valuation techniques used need to maximize the use of observable inputs and minimize the use of unobservable inputs. | |||||||||||||||||
Following is a description of the valuation methodologies used for assets measured at fair value. There have been no changes in the methodologies used as of September 30, 2014 and 2013. | |||||||||||||||||
The majority of the Company’s short-term investments are classified within Level 1 or Level 2 of the fair value hierarchy. The Company’s valuation of its Level 1 investments, which include mutual funds, is based on quoted market prices in active markets for identical securities. The Company’s valuation of its Level 2 investments, which include certificates of deposits, is based on other observable inputs, specifically a valuation model which utilized vendor pricing for similar securities. | |||||||||||||||||
The preceding methods described may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, although the Company believes the valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. | |||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Company’s financial assets at fair value as of September 30, 2014 and 2013 and for the year ended December 31, 2013. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: | |||||||||||||||||
Assets and Liabilities at Fair Value as of September 30, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash | $ | 2,795,429 | $ | 0 | $ | 0 | $ | 2,795,429 | |||||||||
Mutual Funds | 6,407 | 0 | 0 | 6,407 | |||||||||||||
Stocks | 1,053,525 | 0 | 0 | 1,053,525 | |||||||||||||
Preferred Securities | 0 | 437,044 | 0 | 437,044 | |||||||||||||
Corporate Bonds | 0 | 1,560,238 | 0 | 1,560,238 | |||||||||||||
Notes Payable | 0 | 9,216,320 | 0 | 9,216,320 | |||||||||||||
Assets and Liabilities at Fair Value as of September 30, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash | $ | 1,240,730 | $ | 0 | $ | 0 | $ | 1,240,730 | |||||||||
Certificate of Deposits | 0 | 115,159 | 0 | 115,159 | |||||||||||||
Mutual Funds | 67,884 | 0 | 0 | 67,884 | |||||||||||||
Stocks | 973,460 | 0 | 0 | 973,460 | |||||||||||||
Preferred Securities | 0 | 505,627 | 0 | 505,627 | |||||||||||||
Corporate Bonds | 0 | 959,492 | 0 | 959,492 | |||||||||||||
Notes Payable | 0 | 10,092,941 | 0 | 10,092,941 | |||||||||||||
Assets and Liabilities at Fair Value as of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash | $ | 3,306,608 | $ | 0 | $ | 0 | $ | 3,306,608 | |||||||||
Certificate of Deposits | 0 | 15,378 | 0 | 15,378 | |||||||||||||
Mutual Funds | 56,841 | 0 | 0 | 56,841 | |||||||||||||
Stocks | 1,072,201 | 0 | 0 | 1,072,201 | |||||||||||||
Preferred Securities | 0 | 462,096 | 0 | 462,096 | |||||||||||||
Corporate Bonds | 0 | 925,242 | 0 | 925,242 | |||||||||||||
Notes Payable | 0 | 9,874,014 | 0 | 9,874,014 | |||||||||||||
The Company’s financial assets and liabilities also include accounts receivable, other receivables and, accounts payable for which carrying value approximates fair value. All such assets are valued using level 2 inputs. |
Litigation
Litigation | 9 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
Note 13 - Litigation | ' |
The Company is named a party to lawsuits in the normal course of business. In the opinion of management, the resolution of these lawsuits will not have a material adverse effect on the Company’s consolidated financial position or results of operations. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2014 | |
Notes to Financial Statements | ' |
Note 14 - Recent Accounting Pronouncements | ' |
In February 2013, the Financial Accounting Standards Board (“FASB”) amended the disclosure requirements regarding the reporting of amounts reclassified out of accumulated other comprehensive income. The amendment does not change the current requirement for reporting net income or other comprehensive income, but requires additional disclosures about items reclassified out of accumulated other comprehensive income, and the income statement line items impacted by the reclassifications. We adopted this standard effective January 1, 2013. Other than the additional disclosure requirements, the adoption of this standard did not have a material impact on our consolidated financial statements. | |
In July 2013, the FASB issued an Accounting Standards Update (“ASU”) related to the presentation of unrecognized tax benefits. The update requires presentation of an unrecognized tax benefit, or a portion of an unrecognized tax benefit, as a reduction to a deferred tax asset for a net operating loss carryforward or a tax credit carryforward in the statement of financial position. The guidance does not apply to the extent that a net operating loss carryforward or tax credit carryforward at the reporting date is not available under the tax law of the applicable jurisdiction to settle any additional income taxes that would result from the disallowance of a tax position. The guidance is effective for fiscal years (and interim periods within those years) beginning after December 15, 2013. This standard did not have a material impact on the consolidated financial statements. | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)” (“ASU 2014-09”), which supersedes the revenue recognition requirements in Topic 605, Revenue Recognition, including most industry-specific requirements. ASU 2014-09 establishes a five-step revenue recognition process in which an entity will recognize revenue when it transfers promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires enhanced disclosures regarding the nature, amount, timing and uncertainty of revenues and cash flows from contracts with customers. ASU 2014-09 will be effective for the Company in the first quarter of 2017. Management is currently evaluating the impact the adoption of ASU 2014-09 will have on the Company’s condensed consolidated financial position, results of operations or cash flows and the method of retrospective application, either full or modified. |
Summary_Of_Significant_Account1
Summary Of Significant Accounting Policies (Policy) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Summary Of Significant Accounting Policies Policy | ' | ||
Basis Of Presentation | ' | ||
The accompanying unaudited financial statements of the Company have been prepared in accordance with the instructions to Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, such information reflects all adjustments (consisting of normal recurring adjustments), which are, in the opinion of Management, necessary for fair presentation of results for the interim periods. The unaudited consolidated financial statements contained in this Quarterly Report should be read in conjunction with the consolidated financial statements contained in our 2013 Annual Report on Form 10-K. | |||
Principles Of Consolidation | ' | ||
The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, Helios Nutrition, Ltd., Pride of Main Street, L.L.C., Starfruit, L.L.C., Fresh Made, Inc. and Starfruit Franchisor, L.L.C., Lifeway First Juice, Inc. (IL), First Juice, Inc. (DE) and Lifeway Wisconsin, Inc. Lifeway Wisconsin, Inc. was created to facilitate the operation of a production facility in Wisconsin. All significant intercompany accounts and transactions have been eliminated. | |||
Use Of Estimates | ' | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Significant estimates made in preparing the consolidated financial statements include the allowance for doubtful accounts, the valuation of investment securities, goodwill, intangible assets, and deferred taxes. | |||
Revenue Recognition | ' | ||
Sales of Company produced dairy products are recorded at the time of shipment and the following four criteria have been met: (i) The product has been shipped and the Company has no significant remaining obligations; (ii) Persuasive evidence of an agreement exists; (iii) The price to the buyer is fixed or determinable and (iv) Collection is probable. In addition, shipping costs invoiced to the customers are included in net sales and the related cost in cost of sales. Discounts and allowances are reported as a reduction of gross sales unless the allowance is attributable to an identifiable benefit separable from the purchase of the product, the value of which can be reasonably estimated, which would be charged to the appropriate expense account. | |||
Customer Concentration | ' | ||
Sales are predominately to companies in the retail food industry, located within the United States of America. Two major customers accounted for approximately __ percent and 35 percent of gross sales for the nine months ended September 30, 2014 and 2013, respectively. These customers accounted for approximately __ percent, 30 percent and 22 percent of accounts receivable as of September 30, 2014, September 30, 2013 and December 31, 2013, respectively. | |||
Cash And Cash Equivalents | ' | ||
All highly liquid investments purchased with an original maturity of three months or less are considered to be cash equivalents. | |||
The Company maintains cash deposits at several institutions located in the greater Chicago, Illinois and Philadelphia, Pennsylvania metropolitan areas. | |||
Investments | ' | ||
All investment securities are classified as available-for-sale and are carried at fair value. Unrealized gains and losses on available-for-sale securities are reported as a separate component of stockholders’ equity. Amortization, accretion, interest and dividends, realized gains and losses, and declines in value judged to be other-than-temporary on available-for-sale securities are recorded in other income. All of the Company's securities are subject to a periodic impairment evaluation. This evaluation depends on the specific facts and circumstances. Factors that we consider in determining whether an other-than-temporary decline in value has occurred include: the market value of the security in relation to its cost basis; the financial condition of the investee; and the intent and ability to retain the investment for a sufficient period of time to allow for possible recovery in the market value of the investment. | |||
Accounts Receivable | ' | ||
Credit terms are extended to customers in the normal course of business. The Company performs ongoing credit evaluations of its customers’ financial condition and generally requires no collateral. Balances expected to be paid beyond one year are classified as long-term. | |||
Accounts receivable are recorded at invoice amounts, and reduced to their estimated net realizable value by recognition of an allowance for doubtful accounts and anticipated discounts. The Company’s estimate of the allowances for doubtful accounts and anticipated discounts are based upon historical experience, its evaluation of the current status and contract terms of specific receivables, and unusual circumstances, if any. Accounts are considered past due if payment is not made on a timely basis in accordance with the Company’s credit terms. Accounts considered uncollectible are charged against the allowance. | |||
Inventories | ' | ||
Inventories are stated at the lower of cost or market. Our products are valued using the first in, first out method. The costs of inventories include raw materials, direct labor and indirect production and overhead costs. | |||
Property And Equipment | ' | ||
Property and equipment are recorded at cost and depreciated using the straight-line method over the estimated useful lives of the related assets. When assets are retired or otherwise disposed of, the cost and related accumulated depreciation are removed from the accounts, and any resulting gain or loss is recognized in income for the period. The cost of maintenance and repairs is charged to expense as incurred; significant renewals and betterments are capitalized. | |||
Property and equipment is being depreciated over the following useful lives: | |||
Category | Years | ||
Buildings and improvements | 31 and 39 | ||
Machinery and equipment | 5 – 12 | ||
Office equipment | 5 – 7 | ||
Vehicles | 5 | ||
Leasehold improvements | Shorter of expected useful life or lease term | ||
Intangible Assets Acquired In Business Combinations | ' | ||
The Company accounts for intangible assets at historical cost. Intangible assets acquired in a business combination are recorded under the purchase method of accounting at their estimated fair values at the date of acquisition. Goodwill represents the excess purchase price over the fair value of the net tangible and other identifiable intangible assets acquired. Goodwill is not amortized, but is reviewed for impairment at least annually. Brand assets represent the fair value of brands acquired. The Company amortizes other intangible assets over their estimated useful lives, as disclosed in the table below. | |||
The Company reviews intangible assets and their related useful lives at least once per year to determine if any adverse conditions exist that would indicate the carrying value of these assets may not be recoverable. The Company conducts more frequent impairment assessments if certain conditions exist, including: a change in the competitive landscape, any internal decisions to pursue new or different strategies, a loss of a significant customer, or a significant change in the market place including changes in the prices paid for the Company’s products or changes in the size of the market for the Company’s products. | |||
If the estimate of an intangible asset’s remaining useful life is changed, the remaining carrying amount of the intangible asset is amortized prospectively over the revised remaining useful life. | |||
Intangible assets are being amortized over the following useful lives: | |||
Category | Years | ||
Recipes | 4 | ||
Lease agreement | 7 | ||
Trade names | 15-Aug | ||
Formula | 10 | ||
Customer relationships | 12-Aug | ||
Income Taxes | ' | ||
Deferred income taxes are the result of temporary differences that arise from income and expense items reported for financial accounting and tax purposes in different periods. Deferred taxes are classified as current or non-current, depending on the classification of the assets and liabilities to which they relate. Deferred taxes arising from temporary differences that are not related to an asset or liability are classified as current or non-current depending on the periods in which the temporary differences are expected to reverse. | |||
The principal sources of temporary differences are different depreciation and amortization methods for financial statement and tax purposes, unrealized gains or losses related to investments, capitalization of indirect costs for tax purposes, purchase price adjustments, and the recognition of an allowance for doubtful accounts for financial statement purposes. | |||
The Company has analyzed filing positions in all of the federal and state jurisdictions where it is required to file income tax returns, as well as all open tax years in these jurisdictions. The only periods subject to examination for the Company’s federal returns are the 2011, 2012 and 2013 tax years. The Company believes that its income tax filing positions and deductions would be sustained on audit and does not anticipate any adjustments that would result in a material change to its financial position. Therefore, no reserves for uncertain income tax positions have been recorded. | |||
Treasury Stock | ' | ||
Treasury stock is recorded using the cost method. | |||
Advertising And Promotional Costs | ' | ||
The Company expenses advertising costs as incurred. For the three and nine months ended September 30, 2014 and 2013 total advertising expenses were $643,127 and $2,462,313, $551,492 and $1,859,798, respectively. | |||
Earnings Per Common Share | ' | ||
Earnings per common share were computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the period. For the three and nine months ended September 30, 2014 and 2013, the weighted average number of shares outstanding used in the calculation of diluted and basic earnings per share were the same. | |||
Segments | ' | ||
Currently, the Company has one segment with multiple dairy products. All such dairy products are produced using the same process and materials, sold to consumers retail food sellers through direct delivery and distributors in the United States of America. The reportable segment has been determined based on how the Company’s chief operating decision maker manages the business and in a manner consistent with the internal reporting provided to the chief operating decision maker. The chief operating decision-maker, who is responsible for allocating resources and assessing performance of the operating segments, has been identified as the Chief Financial Officer and the board of directors that makes strategic decisions. The Company’s sales in foreign markets are considered not to be material and accordingly the Company has not presented financial information by geography. |
Summary_Of_Significant_Account2
Summary Of Significant Accounting Policies (Tables) | 9 Months Ended | ||
Sep. 30, 2014 | |||
Summary Of Significant Accounting Policies Tables | ' | ||
Schedule Of Property And Equipment, Estimated Useful Lives | ' | ||
Property and equipment is being depreciated over the following useful lives: | |||
Category | Years | ||
Buildings and improvements | 31 and 39 | ||
Machinery and equipment | 5 – 12 | ||
Office equipment | 5 – 7 | ||
Vehicles | 5 | ||
Schedule Of Intangible Assets Useful Lives | ' | ||
Intangible assets are being amortized over the following useful lives: | |||
Category | Years | ||
Recipes | 4 | ||
Lease agreement | 7 | ||
Trade names | 15-Aug | ||
Formula | 10 | ||
Customer relationships | 12-Aug |
Intangible_Assets_Tables
Intangible Assets (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Intangible Assets Tables | ' | ||||||||||||||||||||||||
Schedule Of Accumulated Amortization Of Intangible Assets | ' | ||||||||||||||||||||||||
Intangible assets, and the related accumulated amortization, consist of the following: | |||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | 31-Dec-13 | |||||||||||||||||||||||
Cost | Accumulated Amortization | Cost | Accumulated Amortization | Cost | Accumulated Amortization | ||||||||||||||||||||
Recipes | $ | 43,600 | $ | 43,600 | $ | 43,600 | $ | 43,600 | $ | 43,600 | $ | 43,600 | |||||||||||||
Customer lists and other customer related intangibles | 4,504,200 | 2,813,737 | 4,504,200 | 2,361,808 | 4,504,200 | 2,474,790 | |||||||||||||||||||
Customer relationship | 985,000 | 649,348 | 985,000 | 579,264 | 985,000 | 596,785 | |||||||||||||||||||
Trade names | 2,248,000 | 1,140,732 | 2,248,000 | 990,868 | 2,248,000 | 1,028,334 | |||||||||||||||||||
Formula | 438,000 | 357,700 | 438,000 | 313,900 | 438,000 | 324,850 | |||||||||||||||||||
$ | 8,218,800 | $ | 5,005,117 | $ | 8,218,800 | $ | 4,289,440 | $ | 8,218,800 | $ | 4,468,359 | ||||||||||||||
Amortization Expense On Future Intangible Assets | ' | ||||||||||||||||||||||||
Amortization expense is expected to be approximately the following for the 12 months ending September 30: | |||||||||||||||||||||||||
2015 | $ | 715,677 | |||||||||||||||||||||||
2016 | 708,377 | ||||||||||||||||||||||||
2017 | 671,877 | ||||||||||||||||||||||||
2018 | 658,197 | ||||||||||||||||||||||||
2019 | 293,156 | ||||||||||||||||||||||||
Thereafter | 166,399 | ||||||||||||||||||||||||
$ | 3,213,683 |
Investments_Tables
Investments (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||||||
Investments Tables | ' | ||||||||||||||||||||||||
Schedule Of Cost And Fair Value Of Available For Sale Investments | ' | ||||||||||||||||||||||||
The cost and fair value of investments classified as available for sale are as follows: | |||||||||||||||||||||||||
30-Sep-14 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Equities | $ | 1,023,998 | $ | 82,968 | $ | (53,441 | ) | $ | 1,053,525 | ||||||||||||||||
Mutual Funds | 7,040 | 0 | (633 | ) | 6,407 | ||||||||||||||||||||
Preferred Securities | 416,415 | 24,959 | (4,330 | ) | 437,044 | ||||||||||||||||||||
Corporate Bonds | 1,673,591 | 2,397 | (115,750 | ) | 1,560,238 | ||||||||||||||||||||
Total | $ | 3,121,044 | $ | 110,324 | $ | (174,154 | ) | $ | 3,057,214 | ||||||||||||||||
30-Sep-13 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Equities | $ | 887,418 | $ | 115,298 | $ | (29,256 | ) | $ | 973,460 | ||||||||||||||||
Mutual Funds | 69,849 | 0 | (1,965 | ) | 67,884 | ||||||||||||||||||||
Preferred Securities | 528,306 | 3,684 | (26,363 | ) | 505,627 | ||||||||||||||||||||
Corporate Bonds | 1,017,252 | 1 | (57,761 | ) | 959,492 | ||||||||||||||||||||
Total | $ | 2,502,825 | $ | 118,983 | $ | (115,345 | ) | $ | 2,506,463 | ||||||||||||||||
31-Dec-13 | Cost | Unrealized | Unrealized | Fair | |||||||||||||||||||||
Gains | Losses | Value | |||||||||||||||||||||||
Equities | $ | 1,006,169 | $ | 98,213 | $ | (32,181 | ) | $ | 1,072,201 | ||||||||||||||||
Mutual Funds | 54,847 | 1,994 | 0 | 56,841 | |||||||||||||||||||||
Preferred Securities | 464,585 | 12,960 | (15,449 | ) | 462,096 | ||||||||||||||||||||
Corporate Bonds | 973,333 | 1,329 | (49,420 | ) | 925,242 | ||||||||||||||||||||
Total | $ | 2,498,934 | $ | 114,496 | $ | (97,050 | ) | $ | 2,516,380 | ||||||||||||||||
Schedule Of Gross Unrealized Loss On Investments | ' | ||||||||||||||||||||||||
The following table shows the gross unrealized losses and fair value of the Company's investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2014 and 2013 and at December 31, 2013: | |||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
30-Sep-14 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Equities | $ | 326,673 | $ | (40,115 | ) | $ | 83,996 | $ | (13,326 | ) | $ | 410,669 | $ | (53,441 | ) | ||||||||||
Mutual Funds | 6,407 | (633 | ) | 0 | 0 | 6,407 | (633 | ) | |||||||||||||||||
Preferred Securities | 175,790 | (4,330 | ) | 0 | 0 | 175,790 | (4,330 | ) | |||||||||||||||||
Corporate Bonds | 910,520 | (65,250 | ) | 522,316 | (50,500 | ) | 1,432,836 | (115,750 | ) | ||||||||||||||||
$ | 1,419,390 | $ | (110,328 | ) | $ | 606,312 | $ | (63,826 | ) | $ | 2,025,702 | $ | (174,154 | ) | |||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
30-Sep-13 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Equities | $ | 292,456 | $ | (28,897 | ) | $ | 21,409 | $ | (359 | ) | $ | 313,865 | $ | (29,256 | ) | ||||||||||
Mutual Funds | 50,080 | (1,965 | ) | 0 | 0 | 50,080 | (1,965 | ) | |||||||||||||||||
Preferred Securities | 276,933 | (26,363 | ) | 0 | 0 | 276,933 | (26,363 | ) | |||||||||||||||||
Corporate Bonds | 868,294 | (54,667 | ) | 80,994 | (3,094 | ) | 949,288 | (57,761 | ) | ||||||||||||||||
$ | 1,487,763 | $ | (111,892 | ) | $ | 102,403 | $ | (3,453 | ) | $ | 1,590,166 | $ | (115,345 | ) | |||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||
31-Dec-13 | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | |||||||||||||||||||
Equities | $ | 213,222 | $ | (32,181 | ) | $ | 0 | $ | 0 | $ | 213,222 | $ | (32,181 | ) | |||||||||||
Mutual Funds | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||||||||
Preferred Securities | 224,125 | (15,449 | ) | 0 | 0 | 224,125 | (15,449 | ) | |||||||||||||||||
Corporate Bonds | 615,986 | (42,827 | ) | 96,726 | (6,593 | ) | 712,712 | (49,420 | ) | ||||||||||||||||
$ | 1,053,333 | $ | (90,457 | ) | $ | 96,726 | $ | (6,593 | ) | $ | 1,150,059 | $ | (97,050 | ) |
Inventories_Tables
Inventories (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Inventories Tables | ' | ||||||||||||
Schedule Of Inventories | ' | ||||||||||||
Inventories consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Finished goods | $ | 3,177,603 | $ | 3,106,557 | $ | 3,027,900 | |||||||
Production supplies | 1,669,984 | 3,469,239 | 2,690,097 | ||||||||||
Raw materials | 2,287,270 | 1,806,491 | 1,181,011 | ||||||||||
Total inventories | $ | 7,134,857 | $ | 8,382,287 | $ | 6,899,008 |
Property_And_Equipment_Tables
Property And Equipment (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Property And Equipment Tables | ' | ||||||||||||
Schedule Of Property And Equipment | ' | ||||||||||||
Property and equipment consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Land | $ | 1,856,370 | $ | 1,856,370 | $ | 1,856,370 | |||||||
Buildings and improvements | 15,496,906 | 14,921,016 | 14,587,022 | ||||||||||
Machinery and equipment | 20,999,223 | 19,921,064 | 19,633,164 | ||||||||||
Vehicles | 1,244,560 | 1,350,608 | 1,244,560 | ||||||||||
Office equipment | 433,679 | 433,346 | 433,679 | ||||||||||
Construction in process | 973,852 | 33,542 | 177,519 | ||||||||||
41,004,590 | 38,515,946 | 37,932,314 | |||||||||||
Less accumulated depreciation | 19,130,070 | 16,878,454 | 17,107,866 | ||||||||||
Total property and equipment | $ | 21,874,520 | $ | 21,637,492 | $ | 20,824,448 |
Accrued_Expenses_Tables
Accrued Expenses (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Accrued Expenses Tables | ' | ||||||||||||
Schedule Of Accrued Expenses | ' | ||||||||||||
Accrued expenses consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Accrued payroll and payroll taxes | $ | 231,612 | $ | 562,491 | $ | 477,312 | |||||||
Accrued property tax | 251,228 | 244,028 | 306,608 | ||||||||||
Other | 761,036 | 516,694 | 500,140 | ||||||||||
$ | 1,243,876 | $ | 1,323,213 | $ | 1,284,060 |
Notes_Payable_Tables
Notes Payable (Tables) | 9 Months Ended | ||||||||||||
Sep. 30, 2014 | |||||||||||||
Notes Payable Tables | ' | ||||||||||||
Schedule Of Notes Payable | ' | ||||||||||||
Notes payable consist of the following: | |||||||||||||
September 30, | December 31, | ||||||||||||
2014 | 2013 | 2013 | |||||||||||
Note payable to Private Bank in monthly installments of $42,222, plus variable interest rate, currently at 2.6677%, with a balloon payment for the remaining balance. Collateralized by substantially all assets of the Company. In May 2013, the Company refinanced this note under similar terms which extended the maturity date to May 31, 2018. | $ | 4,478,889 | $ | 4,985,556 | $ | 4,858,889 | |||||||
Note payable to Private Bank in monthly installments of $27,778, plus variable interest rate, currently at 2.6677% with a balloon payment for the remaining balance, maturing on May 31, 2019, collateralized by substantially all assets of the Company. | 4,666,667 | 5,000,000 | 4,916,667 | ||||||||||
Notes payable to Ford Credit Corp. payable in monthly installments of $1,778 at 5.99%, due July 2015, secured by transportation equipment. | 17,294 | 36,919 | 32,124 | ||||||||||
Note payable to Fletcher Jones of Chicago, Ltd LLC in monthly installments of $1,769 at 6.653%, due May 24, 2017, secured by transportation equipment. | 53,470 | 70,466 | 66,334 | ||||||||||
Total notes payable | 9,216,320 | 10,092,941 | 9,874,014 | ||||||||||
Less current maturities | 877,038 | 878,088 | 875,002 | ||||||||||
Total long-term portion | $ | 8,339,282 | $ | 9,214,853 | $ | 8,999,012 | |||||||
Maturities Of Notes Payable | ' | ||||||||||||
Maturities of notes payables are as follows: | |||||||||||||
For the 12 months ending September 30, | |||||||||||||
2015 | $ | 877,038 | |||||||||||
2016 | 859,546 | ||||||||||||
2017 | 854,180 | ||||||||||||
2018 | 3,292,233 | ||||||||||||
2019 | 3,333,323 | ||||||||||||
Total | $ | 9,216,320 |
Commitments_And_Contingencies_
Commitments And Contingencies (Tables) | 9 Months Ended | ||||
Sep. 30, 2014 | |||||
Commitments And Contingencies Tables | ' | ||||
Schedule Of Annual Minimum Base Rental Payments | ' | ||||
Future annual minimum base rental payments for the leases as of September 30, 2014 are as follows: | |||||
For the 12 months ending September 30, | |||||
2015 | $ | 45,130 | |||
2016 | 46,484 | ||||
2017 | 47,878 | ||||
2018 | 49,314 | ||||
2019 | 12,419 | ||||
Total | $ | 201,225 |
Provision_For_Income_Taxes_Tab
Provision For Income Taxes (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Provision For Income Taxes Tables | ' | ||||||||||||||||
Summary Of The Provision For Income Taxes | ' | ||||||||||||||||
The provision for income taxes consists of the following: | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Current: | |||||||||||||||||
Federal | $ | 1,697,412 | $ | 2,892,620 | |||||||||||||
State and local | 593,429 | 597,526 | |||||||||||||||
Total current | 2,290,841 | 3,490,146 | |||||||||||||||
Deferred | (783,607 | ) | (231,218 | ) | |||||||||||||
Provision for income taxes | $ | 1,507,234 | $ | 3,258,928 | |||||||||||||
Reconciliation Of The Provision For Income Taxes At Statutory Rate | ' | ||||||||||||||||
A reconciliation of the provision for income taxes and the income tax computed at the statutory rate is as follows: | |||||||||||||||||
For the Nine Months Ended | |||||||||||||||||
September 30, | |||||||||||||||||
2014 | 2013 | ||||||||||||||||
Amount | Percentage | Amount | Percentage | ||||||||||||||
Federal income tax expense computed at the statutory rate | $ | 1,457,752 | 34.00% | $ | 2,964,268 | 34.00% | |||||||||||
State and local tax expense, net | 268,827 | 6.30% | 828,251 | 9.50% | |||||||||||||
U.S. domestic manufacturers’ deduction & other permanent differences | (311,715 | ) | -7.30% | (444,711 | ) | -5.10% | |||||||||||
Change in tax estimate | 92,370 | 2.20% | (88,880 | ) | -1.00% | ||||||||||||
Provision for income taxes | $ | 1,507,234 | 35.20% | $ | 3,258,928 | 37.40% | |||||||||||
Schedule Of Deferred Tax Assets And Liabilities | ' | ||||||||||||||||
Amounts for deferred tax assets and liabilities are as follows: | |||||||||||||||||
September 30, | December 31, | ||||||||||||||||
2014 | 2013 | 2013 | |||||||||||||||
Non-current deferred tax assets (liabilities) arising from: | |||||||||||||||||
Temporary differences - | |||||||||||||||||
Accumulated depreciation and amortization | |||||||||||||||||
from purchase accounting adjustments | $ | (2,098,017 | ) | $ | (3,002,058 | ) | $ | (2,896,058 | ) | ||||||||
Capital loss carry-forwards | 32,796 | 84,845 | 52,632 | ||||||||||||||
Total non-current net deferred tax liabilities | (2,065,221 | ) | (2,917,213 | ) | (2,843,426 | ) | |||||||||||
Current deferred tax assets arising from: | |||||||||||||||||
Unrealized losses (gain) on investments | 25,704 | (1,583 | ) | (7,589 | ) | ||||||||||||
Inventory | 294,791 | 374,110 | 307,910 | ||||||||||||||
Allowance for doubtful accounts and discounts | 40,270 | 21,750 | 21,750 | ||||||||||||||
Total current deferred tax assets | 360,765 | 394,277 | 322,071 | ||||||||||||||
Net deferred tax liability | $ | (1,704,456 | ) | $ | (2,522,936 | ) | $ | (2,521,355 | ) |
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information (Tables) | 9 Months Ended | ||||||||
Sep. 30, 2014 | |||||||||
Supplemental Cash Flow Information Tables | ' | ||||||||
Summary Of Cash Paid For Interest And Income Taxes | ' | ||||||||
Cash paid for interest and income taxes are as follows: | |||||||||
For the Nine Months Ended | |||||||||
September 30, | |||||||||
2014 | 2013 | ||||||||
Interest | $ | 195,275 | $ | 140,068 | |||||
Income taxes | $ | 2,131,658 | $ | 2,862,991 |
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | ||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||
Fair Value Measurements Tables | ' | ||||||||||||||||
Schedule Of Fair Value Assets And Liabilities As Classified | ' | ||||||||||||||||
The following table sets forth by level, within the fair value hierarchy, the Company’s financial assets at fair value as of September 30, 2014 and 2013 and for the year ended December 31, 2013. Assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement: | |||||||||||||||||
Assets and Liabilities at Fair Value as of September 30, 2014 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash | $ | 2,795,429 | $ | 0 | $ | 0 | $ | 2,795,429 | |||||||||
Mutual Funds | 6,407 | 0 | 0 | 6,407 | |||||||||||||
Stocks | 1,053,525 | 0 | 0 | 1,053,525 | |||||||||||||
Preferred Securities | 0 | 437,044 | 0 | 437,044 | |||||||||||||
Corporate Bonds | 0 | 1,560,238 | 0 | 1,560,238 | |||||||||||||
Notes Payable | 0 | 9,216,320 | 0 | 9,216,320 | |||||||||||||
Assets and Liabilities at Fair Value as of September 30, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash | $ | 1,240,730 | $ | 0 | $ | 0 | $ | 1,240,730 | |||||||||
Certificate of Deposits | 0 | 115,159 | 0 | 115,159 | |||||||||||||
Mutual Funds | 67,884 | 0 | 0 | 67,884 | |||||||||||||
Stocks | 973,460 | 0 | 0 | 973,460 | |||||||||||||
Preferred Securities | 0 | 505,627 | 0 | 505,627 | |||||||||||||
Corporate Bonds | 0 | 959,492 | 0 | 959,492 | |||||||||||||
Notes Payable | 0 | 10,092,941 | 0 | 10,092,941 | |||||||||||||
Assets and Liabilities at Fair Value as of December 31, 2013 | |||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||
Cash | $ | 3,306,608 | $ | 0 | $ | 0 | $ | 3,306,608 | |||||||||
Certificate of Deposits | 0 | 15,378 | 0 | 15,378 | |||||||||||||
Mutual Funds | 56,841 | 0 | 0 | 56,841 | |||||||||||||
Stocks | 1,072,201 | 0 | 0 | 1,072,201 | |||||||||||||
Preferred Securities | 0 | 462,096 | 0 | 462,096 | |||||||||||||
Corporate Bonds | 0 | 925,242 | 0 | 925,242 | |||||||||||||
Notes Payable | 0 | 9,874,014 | 0 | 9,874,014 |
Summary_Of_Significant_Account3
Summary Of Significant Accounting Policies (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Buildings And improvements [Member] | Minimum [Member] | ' |
Property and equipment, useful life | '31 years |
Buildings And improvements [Member] | Maximum [Member] | ' |
Property and equipment, useful life | '39 years |
Machinery And Equipment [Member] | Minimum [Member] | ' |
Property and equipment, useful life | '5 years |
Machinery And Equipment [Member] | Maximum [Member] | ' |
Property and equipment, useful life | '12 years |
Office Equipment [Member] | Minimum [Member] | ' |
Property and equipment, useful life | '5 years |
Office Equipment [Member] | Maximum [Member] | ' |
Property and equipment, useful life | '7 years |
Vehicles [Member] | ' |
Property and equipment, useful life | '5 years |
Summary_Of_Significant_Account4
Summary Of Significant Accounting Policies (Details 1) | 9 Months Ended |
Sep. 30, 2014 | |
Recipes [Member] | ' |
Intangible assets, useful lives | '4 years |
Lease Agreements [Member] | ' |
Intangible assets, useful lives | '7 years |
Trade Names [Member] | Minimum [Member] | ' |
Intangible assets, useful lives | '8 years |
Trade Names [Member] | Maximum [Member] | ' |
Intangible assets, useful lives | '15 years |
Formula [Member] | ' |
Intangible assets, useful lives | '10 years |
Customer Relationships [Member] | Minimum [Member] | ' |
Intangible assets, useful lives | '8 years |
Customer Relationships [Member] | Maximum [Member] | ' |
Intangible assets, useful lives | '12 years |
Summary_Of_Significant_Account5
Summary Of Significant Accounting Policies (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Summary Of Significant Accounting Policies Details Narrative | ' | ' | ' | ' | ' |
Percentage of gross sales | ' | ' | ' | 35.00% | ' |
Percentage of accounts receivable | ' | 30.00% | ' | 30.00% | 22.00% |
Total advertising expenses | $643,127 | $2,462,313 | $551,492 | $1,859,798 | ' |
Intangible_Assets_Details
Intangible Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Cost | $8,218,800 | $8,218,800 | $8,218,800 |
Accumulated Amortization | 5,005,117 | 4,468,359 | 4,376,640 |
Recipes [Member] | ' | ' | ' |
Cost | 43,600 | 43,600 | 43,600 |
Accumulated Amortization | 43,600 | 43,600 | 43,600 |
Customer Lists And Other Customer Related Intangibles [Member] | ' | ' | ' |
Cost | 4,504,200 | 4,504,200 | 4,504,200 |
Accumulated Amortization | 2,813,737 | 2,474,790 | 2,361,808 |
Customer Relationships [Member] | ' | ' | ' |
Cost | 985,000 | 985,000 | 985,000 |
Accumulated Amortization | 649,348 | 596,785 | 579,264 |
Trade Names [Member] | ' | ' | ' |
Cost | 2,248,000 | 2,248,000 | 2,248,000 |
Accumulated Amortization | 1,140,732 | 1,028,334 | 990,868 |
Formula [Member] | ' | ' | ' |
Cost | 438,000 | 438,000 | 438,000 |
Accumulated Amortization | $357,700 | $324,850 | $313,900 |
Intangible_Assets_Details_1
Intangible Assets (Details 1) (USD $) | Sep. 30, 2014 |
Intangible Assets Details 1 | ' |
2015 | $715,677 |
2016 | 708,377 |
2017 | 671,877 |
2018 | 658,197 |
2019 | 293,156 |
Thereafter | 166,399 |
Finite-Lived Intangible Assets, Net, Total | $3,213,683 |
Intangible_Assets_Details_Narr
Intangible Assets (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Intangible Assets Details Narrative | ' | ' | ' | ' |
Amortization expense | $178,919 | $178,201 | $536,758 | $533,884 |
Investments_Details
Investments (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Cost | $3,121,044 | $2,498,934 | $2,502,825 |
Unrealized Gains | 110,324 | 114,496 | 118,983 |
Unrealized Losses | -174,154 | -97,050 | -115,345 |
Fair Value | 3,057,214 | 2,516,380 | 2,506,463 |
Equity Securities [Member] | ' | ' | ' |
Cost | 1,023,998 | 1,006,169 | 887,418 |
Unrealized Gains | 82,968 | 98,213 | 115,298 |
Unrealized Losses | -53,441 | -32,181 | -29,256 |
Fair Value | 1,053,525 | 1,072,201 | 973,460 |
Mutual Funds [Member] | ' | ' | ' |
Cost | 7,040 | 54,847 | 69,849 |
Unrealized Gains | 0 | 1,994 | 0 |
Unrealized Losses | -633 | 0 | -1,965 |
Fair Value | 6,407 | 56,841 | 67,884 |
Preferred Securities [Member] | ' | ' | ' |
Cost | 416,415 | 464,585 | 528,306 |
Unrealized Gains | 24,959 | 12,960 | 3,684 |
Unrealized Losses | -4,330 | -15,449 | -26,363 |
Fair Value | 437,044 | 462,096 | 505,627 |
Corporate Bond Securities [Member] | ' | ' | ' |
Cost | 1,673,591 | 973,333 | 1,017,252 |
Unrealized Gains | 2,397 | 1,329 | 1 |
Unrealized Losses | -115,750 | -49,420 | -57,761 |
Fair Value | $1,560,238 | $925,242 | $959,492 |
Investments_Details_1
Investments (Details 1) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Less Than 12 Months, Fair Value | $1,419,390 | $1,053,333 | $1,487,763 |
Less Than 12 Months, Unrealized Losses | -110,328 | -90,457 | -111,892 |
12 Months or Greater, Fair Value | 606,312 | 96,726 | 102,403 |
12 Months or Greater, Unrealized Losses | -63,826 | -6,593 | -3,453 |
Total, Fair Value | 2,025,702 | 1,150,059 | 1,590,166 |
Total, Unrealized Losses | -174,154 | -97,050 | -115,345 |
Equity Securities [Member] | ' | ' | ' |
Less Than 12 Months, Fair Value | 326,673 | 213,222 | 292,456 |
Less Than 12 Months, Unrealized Losses | -40,115 | -32,181 | -28,897 |
12 Months or Greater, Fair Value | 83,996 | 0 | 21,409 |
12 Months or Greater, Unrealized Losses | -13,326 | 0 | -359 |
Total, Fair Value | 410,669 | 213,222 | 313,865 |
Total, Unrealized Losses | -53,441 | -32,181 | -29,256 |
Mutual Funds [Member] | ' | ' | ' |
Less Than 12 Months, Fair Value | 6,407 | 0 | 50,080 |
Less Than 12 Months, Unrealized Losses | -633 | 0 | -1,965 |
12 Months or Greater, Fair Value | 0 | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 | 0 |
Total, Fair Value | 6,407 | 0 | 50,080 |
Total, Unrealized Losses | -633 | 0 | -1,965 |
Preferred Securities [Member] | ' | ' | ' |
Less Than 12 Months, Fair Value | 175,790 | 224,125 | 276,933 |
Less Than 12 Months, Unrealized Losses | -4,330 | -15,449 | -26,363 |
12 Months or Greater, Fair Value | 0 | 0 | 0 |
12 Months or Greater, Unrealized Losses | 0 | 0 | 0 |
Total, Fair Value | 175,790 | 224,125 | 276,933 |
Total, Unrealized Losses | -4,330 | -15,449 | -26,363 |
Corporate Bond Securities [Member] | ' | ' | ' |
Less Than 12 Months, Fair Value | 910,520 | 615,986 | 868,294 |
Less Than 12 Months, Unrealized Losses | -65,250 | -42,827 | -54,667 |
12 Months or Greater, Fair Value | 522,316 | 96,726 | 80,994 |
12 Months or Greater, Unrealized Losses | -50,500 | -6,593 | -3,094 |
Total, Fair Value | 1,432,836 | 712,712 | 949,288 |
Total, Unrealized Losses | ($115,750) | ($49,420) | ($57,761) |
Investments_Details_Narrative
Investments (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Proceeds from sale of investments | $317,584 | $1,736,946 | $332,953 | $2,281,792 |
Gross realized gains | 2,988 | ' | 83,810 | 161,421 |
Gross realized losses | $25,928 | ' | $44,620 | $39,980 |
Corporate Bond Securities [Member] | ' | ' | ' | ' |
Number Of Investment Securities | 3 | ' | 3 | ' |
Inventories_Details
Inventories (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Inventory Disclosure [Abstract] | ' | ' | ' |
Finished goods | $3,177,603 | $3,027,900 | $3,106,557 |
Production supplies | 1,669,984 | 2,690,097 | 3,469,239 |
Raw materials | 2,287,270 | 1,181,011 | 1,806,491 |
Total inventories | $7,134,857 | $6,899,008 | $8,382,287 |
Property_And_Equipment_Details
Property And Equipment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Property and equipment, gross | $41,004,590 | $37,932,314 | $38,515,946 |
Less accumulated depreciation | 19,130,070 | 17,107,866 | 16,878,454 |
Total property and equipment | 21,874,520 | 20,824,448 | 21,637,492 |
Land [Member] | ' | ' | ' |
Property and equipment, gross | 1,856,370 | 1,856,370 | 1,856,370 |
Buildings And improvements [Member] | ' | ' | ' |
Property and equipment, gross | 15,496,906 | 14,587,022 | 14,921,016 |
Machinery And Equipment [Member] | ' | ' | ' |
Property and equipment, gross | 20,999,223 | 19,633,164 | 19,921,064 |
Vehicles [Member] | ' | ' | ' |
Property and equipment, gross | 1,244,560 | 1,244,560 | 1,350,608 |
Office Equipment [Member] | ' | ' | ' |
Property and equipment, gross | 433,679 | 433,679 | 433,346 |
Construction In Progress [Member] | ' | ' | ' |
Property and equipment, gross | $973,852 | $177,519 | $33,542 |
Property_And_Equipment_Details1
Property And Equipment (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Depreciation expense | $1,010,966 | $2,022,204 | $410,797 | $1,226,629 |
Starfruit [Member] | ' | ' | ' | ' |
Depreciation expense | $470,000 | ' | ' | ' |
Accrued_Expenses_Details
Accrued Expenses (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Accrued Expenses Details | ' | ' | ' |
Accrued payroll and payroll taxes | $231,612 | $477,312 | $562,491 |
Accrued property tax | 251,228 | 306,608 | 244,028 |
Other | 761,036 | 500,140 | 516,694 |
Total accrued expenses | $1,243,876 | $1,284,060 | $1,323,213 |
Notes_Payable_Details
Notes Payable (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | |
Total notes payable | $9,216,320 | $9,874,014 | $10,092,941 |
Less current maturities | 877,038 | 875,002 | 878,088 |
Total long-term portion | 8,339,282 | 8,999,012 | 9,214,853 |
Notes Payable To Banks [Member] | ' | ' | ' |
Total notes payable | 4,478,889 | 4,858,889 | 4,985,556 |
Debt instrument, monthly installments | 42,222 | ' | ' |
Variable interest rate | 2.67% | ' | ' |
Maturity date | 31-May-18 | ' | ' |
Note Payable To Private Bank Ii [Member] | ' | ' | ' |
Total notes payable | 4,666,667 | 4,916,667 | 5,000,000 |
Debt instrument, monthly installments | 27,778 | ' | ' |
Variable interest rate | 2.67% | ' | ' |
Maturity date | 31-May-19 | ' | ' |
Notes Payable To Ford Credit Corp [Member] | ' | ' | ' |
Total notes payable | 17,294 | 32,124 | 36,919 |
Debt instrument, monthly installments | 1,778 | ' | ' |
Variable interest rate | 5.99% | ' | ' |
Maturity date | 1-Jul-15 | ' | ' |
Note Payable To Fletcher Jones Of Chicago Ltd Llc [Member] | ' | ' | ' |
Total notes payable | 53,470 | 66,334 | 70,466 |
Debt instrument, monthly installments | $1,769 | ' | ' |
Variable interest rate | 6.65% | ' | ' |
Maturity date | 24-May-17 | ' | ' |
Notes_Payable_Details_1
Notes Payable (Details 1) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Notes Payable Details 1 | ' | ' | ' |
2015 | $877,038 | ' | ' |
2016 | 859,546 | ' | ' |
2017 | 854,180 | ' | ' |
2018 | 3,292,233 | ' | ' |
2019 | 3,333,323 | ' | ' |
Total notes payable | $9,216,320 | $9,874,014 | $10,092,941 |
Commitments_And_Contingencies_1
Commitments And Contingencies (Details) (USD $) | Sep. 30, 2014 |
Commitments And Contingencies Details | ' |
2015 | $45,130 |
2016 | 46,484 |
2017 | 47,878 |
2018 | 49,314 |
2019 | 12,419 |
Total | $201,225 |
Commitments_And_Contingencies_2
Commitments And Contingencies (Details Narrative) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
store | store | |||
Commitments And Contingencies Details Narrative | ' | ' | ' | ' |
Number of stores leased | 3 | ' | 3 | ' |
Total expenses on leases | $27,402 | $226,279 | $46,441 | $165,849 |
Provision_For_Income_Taxes_Det
Provision For Income Taxes (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Provision For Income Taxes Details | ' | ' | ' | ' |
Federal | ' | ' | $1,697,412 | $2,892,620 |
State and local | ' | ' | 593,429 | 597,526 |
Total current | ' | ' | 2,290,841 | 3,490,146 |
Deferred | ' | ' | -783,607 | -231,218 |
Provision for income taxes | $789,005 | $702,257 | $1,507,234 | $3,258,928 |
Provision_For_Income_Taxes_Det1
Provision For Income Taxes (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Income Tax Disclosure [Abstract] | ' | ' | ' | ' |
Federal income tax expense computed at the statutory rate | ' | ' | $1,457,752 | $2,964,268 |
Federal income tax expense computed at the statutory rate, percentage | ' | ' | 34.00% | 34.00% |
State and local tax expense, net | ' | ' | 268,827 | 828,251 |
State and local tax expense, net, percentage | ' | ' | 6.30% | 9.50% |
U.S. domestic manufacturers' deduction & other permanent differences | ' | ' | -311,715 | -444,711 |
U.S. domestic manufacturers' deduction & other permanent differences, percentage | ' | ' | -7.30% | -5.10% |
Change in tax estimate | ' | ' | 92,370 | -88,880 |
Change in tax estimate, percentage | ' | ' | 2.20% | -1.00% |
Provision for income taxes | $789,005 | $702,257 | $1,507,234 | $3,258,928 |
Provision for income taxes, percentage | ' | ' | 35.20% | 37.40% |
Provision_For_Income_Taxes_Det2
Provision For Income Taxes (Details 2) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Non-current deferred tax assets (liabilities) arising from: Temporary differences - | ' | ' | ' |
Accumulated depreciation and amortization from purchase accounting adjustments | ($2,098,017) | ($2,896,058) | ($3,002,058) |
Capital loss carry-forwards | 32,796 | 52,632 | 84,845 |
Total non-current net deferred tax liabilities | -2,065,221 | -2,843,426 | -2,917,213 |
Current deferred tax assets arising from: | ' | ' | ' |
Unrealized losses (gain) on investments | 25,704 | -7,589 | -1,583 |
Inventory | 294,791 | 307,910 | 374,110 |
Allowance for doubtful accounts and discounts | 40,270 | 21,750 | 21,750 |
Total current deferred tax assets | 360,765 | 322,071 | 394,277 |
Net deferred tax liability | ($1,704,456) | ($2,521,355) | ($2,522,936) |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 9 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | |
Supplemental Cash Flow Information Details | ' | ' |
Interest | $195,275 | $140,068 |
Income taxes | $2,131,658 | $2,862,991 |
Fair_Value_Measurements_Detail
Fair Value Measurements (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 |
Cash | $2,795,429 | $3,306,608 | $1,240,730 |
Certificate of Deposits | ' | 15,378 | 115,159 |
Mutual Funds | 6,407 | 56,841 | 67,884 |
Stocks | 1,053,525 | 1,072,201 | 973,460 |
Preferred Securities | 437,044 | 462,096 | 505,627 |
Corporate Bonds | 1,560,238 | 925,242 | 959,492 |
Notes Payable | 9,216,320 | 9,874,014 | 10,092,941 |
Fair Value Inputs Level1 [Member] | ' | ' | ' |
Cash | 2,795,429 | 3,306,608 | 1,240,730 |
Certificate of Deposits | ' | 0 | 0 |
Mutual Funds | 6,407 | 56,841 | 67,884 |
Stocks | 1,053,525 | 1,072,201 | 973,460 |
Preferred Securities | 0 | 0 | 0 |
Corporate Bonds | 0 | 0 | 0 |
Notes Payable | 0 | 0 | 0 |
Fair Value Inputs Level2 [Member] | ' | ' | ' |
Cash | 0 | 0 | 0 |
Certificate of Deposits | ' | 15,378 | 115,159 |
Mutual Funds | 0 | 0 | 0 |
Stocks | 0 | 0 | 0 |
Preferred Securities | 437,044 | 462,096 | 505,627 |
Corporate Bonds | 1,560,238 | 925,242 | 959,492 |
Notes Payable | 9,216,320 | 9,874,014 | 10,092,941 |
Fair Value Inputs Level3 [Member] | ' | ' | ' |
Cash | 0 | 0 | 0 |
Certificate of Deposits | ' | 0 | 0 |
Mutual Funds | 0 | 0 | 0 |
Stocks | 0 | 0 | 0 |
Preferred Securities | 0 | 0 | 0 |
Corporate Bonds | 0 | 0 | 0 |
Notes Payable | $0 | $0 | $0 |